All Forum Posts by: Drew Dim

So I have a spec house under contract, in order for the buyer to qualify for the construction loan, he says the lender requires that he own the land. How can I draft it to where I'll sell the land but guarantee that he won't back out in regards to the build??? Can I add a contingency clause that I get the land back and he gets any $ back should for what ever reason he wants to back out? I don't feel as if he'll back out but want to legally cover all of my bases. Any advice would be greatly appreciated!

@Dee Cee 

It means you want a way to track your advertising so at a later date you can analyze how effective each form of advertising is.

Example: you pay $2k each for internet, yellow letters, and billboard signs.  Have a unique phone # for each of the three that way after a period of time you can see if one worked better than another.   If it's all the same phone number, it makes it quiet difficult to see where the caller found you.   

Helps you spend smarter

@Kevin Boyd

You can find realtors/brokers who will list on MLS for a flat fee ($200).

I've done what you are talking about and have a pre set house to be built (many have sold before I even break ground).  I use a normal contract and they put $10,000+ earnest and once it's complete they move forward on their traditional loan as if it was any other house.

PM me if you have any other questions

I have several spec builds that are going up and the 1st and 2nd have buyers.  I was curious as to what contract or type of contract others use.   I was planning on using the new construction contract on the TREC site as I live in Houston and those contracts I believe are drafted specifically for Texas.

Same question for rental properties. (There are several items I would like to add that are not in the basic TREC rental agreement) late fees/lock outs etc.  

Is it worth the cost of having a contract lawyer draft something?

@Wesley Yuan   Have you had any luck finding places to invest.  I'm currently working on 3 spec builds and I'm looking at purchasing a few near by properties to most likely rent for a year or two before havering them demolished and build on the lots.  If you're still looking perhaps we can chat and see if we're a good fit for each other.

Drew

Are there a lot of cash buyers in Austin.  In the Houston area there are "starter type homes" that are going for asking price which to me is indicative of the market having more to grow.

For our new builds all of the kitchen appliances are included but we've stopped offering washer and dryer.  

We have a 10-year structural and 1-year craftsmanship.

Not sure that you were asking about new builds vs fix&flips but there ya have it

I'm interested in attending as well, let me know where and I should be able to make it.

I can't see Realtors going anywhere either, but educated buyers and sellers can definitely put a dent.   I hate losing 6% on certain deals and refuse to pay that high of a fee.  I flat fee to list, use stuff like craigslist etc., and on some offers I use the fact that I don't have an agent to get a lower sale price (they'll lose it either way).

To date I have flipped raw land and purchased/demo'ed and starting on one of 3 spec homes on my lot.  After each build I stand the realistically make $100-$125k per. (Based on exact comps 30ft from my lot & values are growing)

While starting the 1st build I found a condo that I'm very interested in as a buy and hold rental (great location and decent price).

I want to find a backer (which I might have) secure funding and make a cash offer which would cost around $55-$60k to own ought right and include closing etc. and pay it back upon the close of the 1st build.

 This condo would be at the 1.95% rule cash flowing app. $350-$400 per month (IF there's no monthly payment!).  That results in just under an 8% return annually (unless unexpected expenses arise-which they tend too).

My business partner suggests I wait, hold onto the cash from the sale to try and by another tear down in the area to build 3 more houses (which do pay handsomely WHEN they sale!).   I'm ready to try my hand at being a landlord.

Open to suggestions:  is it smarted to wait and try and grow the spec home aspect as they are proving to be very profitable and our market is on fire.

Thanks

Drew