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All Forum Posts by: Dane Entze

Dane Entze has started 3 posts and replied 4 times.

Post: Pay off construction loan with proceeds of selling?

Dane EntzePosted
  • Real Estate Agent
  • Payson, UT
  • Posts 4
  • Votes 2

A bit of background... I am a full time Engineer and part time Realtor (1 year experience, 5 transactions), my wife is a freelance architect and holds a degree in construction management. All we want right now is to set ourselves up so I can leave my day job and work full time running our own real estate business. We live in Utah County Utah which is a hot market, at least for selling given the low inventory and huge buyer pool. The challenge is that with so little inventory there is a lot of competition to buy flips if any even come up and few other opportunities.

Our Plan... as mentioned in many places sometimes we have to create out own opportunities. That being said we want to jump in by buying lots and building small single family homes i.e. 1500 sq ft or less simple spec homes. Since I also have a background in carpentry the plan would be to start by building the first one myself. This will allow greater potential for profits and less waiting for contractors since they are hard to come across given to amount of construction going on currently in our market.

The challenge... of course if it was easy everyone would be doing it. So we need to figure out financing. We have roughly $40k - 60k of equity we are freeing up via a HELOC and possibly some 16k of "if-come" in the fall but we are not going to factor that in at this point. Though we have some cash available we need to find some financing fund the construction and lot costs.

My questions... First, is it possible to pay off a construction loan by selling the home immediately after completion before getting a mortgage? Second, If I could convince a Deed transfer for a lot, what would a seller generally want to see in the contract to feel comfortable to do it? And if i did get a deed transfer how would a prospective lender view it? Lastly, What may be some pitfalls I should consider if we go the route of building a small spec home?

Post: How to properly be a Realtor/Investor

Dane EntzePosted
  • Real Estate Agent
  • Payson, UT
  • Posts 4
  • Votes 2

I'm a new Realtor in Utah. I have always had an interest in real estate investing, in fact, my broker suggested it. I'm interested in Flipping and buying Single family homes for renting.

This year my goal is to Flip at least one property and purchase one property to rent. Being new I have yet to learn all the ins and outs of the business both as a Realtor and Investor.

I have lots of questions but I feel this one is most important for now and will hopefully help others as well...

As a Realtor Investor what do I need to watch out for so as to not get myself into trouble? Both Legally and with the Board?

I am a huge advocate of doing things right but I don't want to get myself into a trap because of my ignorance. I plan to discuss this with my broker as well but I would love feedback from the community as well.

Post: Speed, Order, or Research

Dane EntzePosted
  • Real Estate Agent
  • Payson, UT
  • Posts 4
  • Votes 2
Thank you for the help. I know my questions are a bit vague but I'm trying to just get some ideas. I haven't considered sight unseen, exit clauses would be key I imagine. Fortunately, I am a Realtor albeit a new one but the resources are still there I just need to learn to leverage it. I am considering a HELOC in conjunction with Hard Money. In regards to hard money is there a way to get "pre-approved"? Since hard money is asset based it makes sense that a deal must be on the table first.

Post: Speed, Order, or Research

Dane EntzePosted
  • Real Estate Agent
  • Payson, UT
  • Posts 4
  • Votes 2

My first deal was one of those perfect alignments of stars. We offered on a short sale. Long story short we "wiggled" our way in to get the offer accepted in less than 2 weeks. With the work we completed on the house we made over $100,000 when we sold just 2 years later. The catch was we were able to live in the property and take advantage of the USDA Loan.

We now live in Utah and want to begin investing. Our challenge is we have to get creative financially in order to purchase another property outside of the home we live in. 

The first question how do I find good deals and have time to offer on them? They always seem to go faster than we have time to even consider an offer.

The next question... When considering buying an investment how do we find hardmoney or private lenders since we are new to creative financing?

Should we have financing secured before putting in an offer on a property? If so, how do we find a lender if properties go so fast that we don't have time to get all the details?

Is it too risky to put a cash offer on a property even before the cash is secured?

Hopefully this isn't too much to ask. Any feedback is hugely appreciated.