All Forum Posts by: Blake Byrd

Thank you all for the help! I submitted a counter-offer yesterday, hopefully the deal goes through. 

@Wayne Brooks. If I am the seller, & I am using Fannie Mae to purchase the property, after I renovate & put the property back on the market, what are my restrictions on selling? If any. I am not getting the loan as owner occupant, lender is well aware of my intentions. In other words, if the end buyer is using FHA I can accept an offer, but have to wait 90 days to sign the contract?

I am going to submit an offer on my first personal flip property, I have done several with my current employer, but this one is my own money. 

I have a few questions regarding the re-sale of the property & better understanding deed restrictions. I will be using a Fannie Mae loan and putting 15-25% down, depending on what terms I agree upon with the lender. I am paying the renovation costs myself. The property is being sold as is & with the last deed transfer on 1/28/15.

After I renovate the property what are the restrictions on reselling? Do I have to wait 90 days? Are there restrictions on financing for the person that comes along to buy? 

I assume that because I am paying for the renovations myself, there is no restriction to how much I spend on the renovation? Will I have to prove what I spent to the buyers lender?

Finally, my lender is telling me that I cannot use a Fannie Mae loan under my LLC is that correct? He said I can deed it over after the purchase, but would loose my title policy rights by doing so. The lender is also telling me there is no pre-payment penalty with them... Are there other pre-payment penalties i am not seeing?

Any advice would be of great help! 

Thanks for all the responses. Lots of good info. 

I have been learning a lot and absorbing as much about REI as I can and I've recently started to put the dream in motion. I have met with a wholesaler and have requested real estate agents that my fiancé and I worked with on buying our house to keep an eye out for us, and I'm seeing deals on a regular basis now. I want to buy and hold and flip houses and smaller multi-family starting out. I have several questions I am looking for guidance on:

1) My fiancé and I won't be hitched until May of next year. She has most of the liquidity strength and we will be primarily using her assets until we are married to do deals (if we came across the right one before we are hitched). How do we need to structure our business? Is an LLC the way to go? Any recommendations on good attorneys in Dallas to help with organization structure? Do I need an attorney for that? Different business entities for the rental properties and the flips? Recommendations on real estate tax professionals in Dallas?

2) We haven't created a formal business plan, it's mostly in my head. I would like a formal plan that I can present to investors in the future. Any recommendations on how to kick this off? Books to read? Sample Plans?

3) I work for a high end custom home builder and I have only been working here for 10 weeks. Through a strange series of events, without my boss being aware, I have got connected with his primary loan provider and have lunch scheduled with him next week. How do I explain to my boss what I'm doing? Should I negotiate working for him on a contract basis to free up more time for my personal investing? I'm very conflicted on this topic and need advice.

4) What questions should I ask the banker at our lunch?

5) The wholesaler I've been working with (New Western Acquisitions) claims he has never seen a deal come through that meets the 70% rule, should I avoid working with them in that case? How do I determine deals that are over 200k can come down closer to 80%? Nothing I have found reaches that 70% rule either? How do I determine if the deal can break that rule?

6) My future father in law is a highly successful entrepreneur and loaned my fiancé the money to buy our house which she now owns free and clear, but her dad is requiring us to pay the interest back to him, but no principal which he is gifting us. Her father and I have discussed investing together as he already does quite a bit of multi-family investing, but we have never formally talked about numbers. With his background as an entrepreneur (and now a clinical professor on the topic) he believes a formal business plan is important (one of the reasons why I want a formal business plan). How do I approach him initially about investing with us? I think he would frown upon us taking a HELOC against the house, which I want to use for repair costs, is this a bad idea? How would I bring these topics up to him (he lives in a different state)?

7) Most my fiancé's and I assets are tied up in other investments i.e. 401ks, fidelity accounts, diversified investment accounts, etc. Is it a good idea to take money from these for real estate investing? We have cash, just not near as much.

I apologize for being so long winded, but this is all happening a lot faster than I anticipated and need some help!! I'm sure I'll have more questions too. 

Thanks. 

Thanks for the warm welcomes everyone.

@Chad Althaus I'm familiar with Pemberton, we're doing a remodel on that street. As far as investing opportunities, it appears there is quite a bit of opportunity as the DFW population is supposed to rise significantly over the next 5 years.

@Jim Lin I'll let you know when I have questions!

Thanks.

@Jon Klaus I drove by the Hicks estate yesterday. As far as I know he hasn't sold, haven't heard anything about it either. That would make for some serious development!

@Jon Klaus. Our overall project duration is 2 years, we will hopefully be wrapping this project up by end of March 2015. Penalties are present, but they're not too bad for this scale of a Proejct. Also, we can negotiate due to owner finish selections going over schedule and weather delays.

@Joe Fairless Always good to hear from a fellow Red Raider! I want to purchase my first multi-family in the next 6 months, so I'd love to hear more about what you do. Are your properties into the DFW metroplex?

My largest project right now is 16,700 sf ground up custom home in the Preston Hollow neighborhood. It has clean lines and is very modern, we currently are in the MEP rough-in stage and installing exterior veneer. The construction cost on the home are currently at $8.1 million, but with the prospect of a very extensive landscaping package upgrade, that number may rise another million. To this point the largest challenge is labor. The custom housing market is very "hot" right now, thus creating more work for everyone including subs, which ultimately results in companies being spread thin causing labor shortages. Unfortunately, this also has a tendency to affect overall project durations!

My name is Blake Byrd, I currently live in Dallas, TX. I graduated from Texas Tech in 2011 with a Bachelors in Business Administration and went to work for a mid-major commercial contractor out of school. I now work for a high-end custom home builder in Highland Park, University Park and Preston Hollow. I am a project manager on projects ranging from $200k remodels to $8 million ground up homes. My fiancé and I recently bought a home with cash in Dallas and renovated it, we plan to rent it out after we move out in 3-5 years.

My goals are to start a custom home building company utilizing flipping, remodeling and ground up construction strategies. Also, investing in multi-family to generate passive income. I am looking for guidance in investing and in entrepreneurship through forums, books, articles, and people. I have been surfing the site looking at articles and forums for several months, and thought it was time to get involved.