All Forum Posts by: Dell Schlabach

We have purchased quite a few Fannie Mae properties, as Alex mentioned they are not much different the any other bank owned. It's is also not true that they don't negotiate. We rarely pay list for a Fannie Mae property, unless it's a new on market or back on market and  a good deal at the list price.

It's very rare to get more then 5-10% discount, as Fannie will typically drop the price 5-10k about every 30 days until the house sells. 

I may be a bit late to the thread, but you have a number of option that would be perfectly legal, one would be to partner with someone who has the cash, potentially cheaper then a hard no way loan and a lot faster and easier to get. 

If you want to call me in tomorrow after 10:30 I'll  a walk you through a couple options that might work for you. 

We wholesale multiple houses every month and double close in most. It's all perfectly legal. What gets you in trouble is not having the money to close when you sign a contract. 

I suspect  10 minute conversation I can help you find what you need to make the deal happen perfectly legally. I commend you for jumping in, there is nothing like screwing up to learn the ropes. It's been said if we never push ourselves past our limits we never know where the limits are. 

If you still need help sorting it out tomorrow, welcome to call, number is in the profile. I have nothing to sell you, and not looking to partner. 

I admire your your willingness to jump in try and figure it out. 

I second Jens recommendation, definitely Bin Shellac, it is the best of the best, for sealing in blocking smells.  All the professional remediation guys I have talked to in our area use it. If is much better for sealing orders then any of the other oil base primers such as Kilz. 

We have rehabbed quite a few cat peee houses where you could barely breathe when you went in, we will typically replace baseboards in problem areas and cut the drywall up about three inches or so, and then seal the areas with a couple coats of shellac. 

Use your judgement on subfloor, if it is severe enough that it has soaked through it, needs  to be removed in order to get rid of the smell. 

The best thing to do is find a local portfolio lender or two, tell them what you want to do and ask them what your options are.

Around here there are a couple that will fund 80% of the purchase price and then give you the money for renovation up to 70% or 80% of after repair appraisal.

We have one, where if you buy with cash, you give them a basic scope of the renovations planned, they do an after repair appraisal and will lend up to 80% of that appraisal.

Small local portfolio lenders have some options for solid borrowers.

Good luck

What are you using currently?

When I first started I tracked everything  on an excell spreadsheet, fed all receipts in every day so I wouldn't  get over whelmed.

Today I have an admin person that feeds everything into quickbooks once a week and gives me a report by project.

We have at any point about 10-12  (under contract to buy with earnest money paid that needs tracked, to under contract to sell, either wholesale or retail) projects, typically three or four in active rehab phase so there are a lot of receipts to track.

We use QuickBooks, to track everything today, all receipts and invoices are notes at the time of purchase which project it is for, then at the end of every week all the receipts and invoices are entered into quickbooks, by "class" each house gets named by its address as a class, thus it is easy to track everything to the respective house, and very easy to get a report weekly for total expenses for each house, as well as to see how much money you made on each house when it closes. Critical to enter beginning hud, all expenses, and ending HUD to get solid numbers. If this is done weekly it is easy to see at any point houw much money you have invested, spend on any particular project with the click of a few buttons.

Hope that helps.

 Same here, we never install washers and dryers. 

If you are not in a position to close all four. As soon as you get one accepted, you could inmediatly withdraw the other three offers.

Heres what we use, thanks to JScott. 

For more details buy the Book on Flipping Houses,  for a few bucks. 

Good luck on your venture.  

http://www.123flip.com/education/rehab-order-of-op...

My price would be about 3600 for Furnace and AC and about 1,500 for the duct work. 

If you get some quotes I suspect they will range from 5,000-8,000

If you are just trying to help him. Why not just give him the contact information for "Bank of the West" if they can fund him and your guys can't. 

Is what you are really looking for, a bank that will fund the deal that will pay you a broker fee? Because I suspect the Texas guys will probably refer local portfolio banks, that's who I would refer to locally, but they won't lend out of state and they won't pay broker fees.