All Forum Posts by: Chris Bounds

@Wayne Brooks, so the contract execution date has nothing to do with it? As long as they wait to submit their loan application on the 91st day it will be clear?

Question for flippers and the 90 Day rule for FHA financing: Can you enter into contract prior to the 91st day, but wait to execute on the 91st day?

Example where the 91st day is 11/10/2015

A buyer comes along today (10/27/2015) and offers full price using FHA financing. They want a 10 day option for $100. You agree to take a $200 option fee from the buyer and to set the execution date for 11/10/2015.

Will the lender have any issue with this? I'd assume as long as the loan application isn't submitted until 11/10 they would not have an issue.

 Good clarification Rick.  Internally, I understand that. It might be a good idea to make the terminology change now for the purpose of systems design (for 3rd party training later on).

 That's hard to say. I wouldn't say either is better than the other really. @Michael Quarles at YL usually suggests the variable approach. I've been using that strategy. 

@Fitzgerald Hall, I sent out postcards on the first batch of the bigger list.  I think I got 2-3 calls total and they were not deals.  The next batch with zipletters I got a ton more calls and specific feedback stating they called me because my letter was different. That was the decision point for me to scrap postcards, at least for an absentee list in my area.

@Kyle CabralMy list came from list source.  I did not filter for years owned on this last run. Only equity and median price range. Area is fairly large, West to Southwest Houston which is my backyard. It's been a successful run so far.

@Owen Dashner, with only 5 deals so far from this campaign it wouldn't be accurate to give an average profit.  We have 2 flips that have not sold yet. Est. profits for those range from $15-30K.  We've wholesaled the other 3 making anywhere from $2000-20,000.

@Fitzgerald Hall, we tried postcards but the response rate was unbelievably low. It's cheap so every wholesaler in my area that wants to do direct mail uses them. I want to stand out. That change alone increased our response rate.  We may do them here and there to change it up, but it is not a primary mailer choice for us currently.

@Fitzgerald Hall, I took @Sam Craven's advice. Here is an updated breakdown:

1. Target Market: Absentee
2. Campaign Type: White typed letters and zip letters using YellowLetters.com
3. Total Prospects: 5735
4. Total Mailings: 4
5. Frequency: Every 6 weeks
6. Total Leads: 102
7. Total deals: 5
8. Comments: This has been the best campaign yet. Only a slightly higher response rate and still a high cost per deal, but it's been the most profitable campaign yet. I'm still working on several warm leads too. 

I'll be there

@Richard Fields, correct. As long as your debt-to-income (DTI) ratio is good, with W-2 income and an 820 score you shouldn't have any trouble refinancing conventional. You'll likely start getting capped out at 4-5 properties, but it's possible to secure up to 10 conventional loans before you'll need to look into portfolio / commercial financing.