All Forum Posts by: Danny Day

Rich good post. Very informative as usual. I have to ask you though, how do you feel about the Mexico laws stating Americans can't own property? Do you feel there is a risk at losing your investment, overnight, due to the political climate in Mexico? Or some kind of bribe / extorsion with poltiical officals to let you keep your property.

Breaking the law vs not breaking the law to make a dollar. Don't let it bother you, not only is this un-ethical it is illegal. Claiming you're an owner occupant with the intent on flipping sounds like mis-representation/fraud to me. I also thought HUD makes you sign an affidavit that you are buying solely for an owner occupant home.

I think intent is the key word here. I've had a client of mine buy a HUD home as an owner occuapnt, all cash. He rehabbed it while living there, and then called me and asked what he could sell it for fixed up. He has decided to move to a better area now. His intent was to live in the home, which he has.

I told him to speak to a RE attorney about this, and the RE attorney said there its a gray area and that nothing in HUDs contract says any time frame.

Zeus Mortgage out of Houston, Tx. I'm not sure if the lend outside of town. It is by far the best terms I've had with a hard money lender.

The loan officer told me they have 3 tiers of lending terms. The terms get better as the more capital you have / less risk to the lender.

I think in order to qualify for the terms I've used, he mentioned you need $300k in assets and some liquidity. I'm not sure what else the requirements were. I'm sure it has something to do with credit report, etc. They also ask you how many rehabs you've done.

My previous lender was 4 points, 14% 6 mo. note 70% ltv, $500 appraisal fee. Got rid of them fast.

2 points, 9% 6 month note 70% ltv, $500 appraisal fee

Had a friend call today and said her son got into an owner finance situation with a 2/2 condo here in town. Long story short he needs to get out from underneath it. He can't afford the taxes that are coming up this month and is willing to deed the property over to me.

She told me she has a tenant in the property now, which is paying the note for her as well as the monthly HOA fees, nothing more.

I can't decide what the best play is on this one. The numbers really are not working for me. I've never even looked at a condo before.

I asked her for details on the note, and she told me it was a 15 yr note for $30,000 with a rate of 11% (I believe).

His monthly note is $309 and the monthly HOA is $140. Annual taxes are $680.

The comparable condos are selling around $38,000. This one would need a light rehab - carpet and sheetrock repair, and some paint.

I've ran the numbers and it isn't looking like there is any money to be made on this deal what so ever, from a landlord point of view.

The $140 monthly HOA fee seems very high to me. Why would someone pay $140 per month in HOA on a $38k condo. That makes no sense to me.

Pretty much he wants to deed the property to me, and I pay the taxes and assume his note. He would like to get some money out of the deal if possible.

Rental comps are $650-750 a month. Why his mother has it rented for $440 per month is beyond me. She is losing money and has called me for help.

Could someone please chime in

Thanks

Danny

I gave away 26 leads today, totaling about $3.6million in volume. I'm getting in 25% back on what they close. I need a buyers agent on my team. Of course I keep the top leads to cherry pick for my self.

I am a better lead generator than I am a buyers agent I have found.

Looking for a Dallas area real estate agent. I've got buyers in the Dallas area and am looking to refer them to someone in the area.

We will discuss referral fees. This will give you an extra few deals per month.

Let me know if you're intersted. Pefer someone who has delt with REO / Foreclosure / HUD homes before.

Email me
Thanks!

I'm a big fan of Gary Keller's books / models / systems (although I'm not a KW agent). I know he is a big advocate of hiring on help when you need it. I am reaching out to RE agents who have started a team for their services, or hired on a buyers agent.

The reason I ask is that I have more leads that I can handle / manage. I probably have enough leads for 2-3 buyers agents right now.

How does the pay split typically work between me and them? Also, since I am not a broker, how does this work out?

Ideally I would like to only work with lead generation and listing appointments, and higher commercial deals. I'm thinking a buyers agent might be a good investment to my RE business.

Thoughts?

Yes Gloria

My first month I got 1 buyer contract, 1 listing contract, and 1 closed sale. All 3 came from people who knew I was in the process of getting my license. Of course beforehand I could not help them until I did. Once I did they were ready willing and able. The closing closed in 7 days due to a cash sale, so it worked out nice. Network with investors / cash buyers for a quick paycheck. All they care about is numbers. If numbers make sense they pull the trigger.

Retail sellers are too emotionally attached. I like working retail buyers.

I spent a huge amount of time on FSBO, Expireds, etc with not 1 lead, not 1 call back. It didn't work for me. Cold calling didn't work for me.

I found what does work for me, and I do it well. I have generated a total of 41 leads since I started back at work on 1/1/2012. Out of those 41, 2 have already written contracts and 4 are showing.

Plan a strategy and stick too it. What works for me might not work for you and vice versa. Find out what works for you and do it.

Danny

Yes Gloria

My first month I got 1 buyer contract, 1 listing contract, and 1 closed sale. All 3 came from people who knew I was in the process of getting my license. Of course beforehand I could not help them until I did. Once I did they were ready willing and able. The closing closed in 7 days due to a cash sale, so it worked out nice. Network with investors / cash buyers for a quick paycheck. All they care about is numbers. If numbers make sense they pull the trigger.

Retail sellers are too emotionally attached. I like working retail buyers.

I spent a huge amount of time on FSBO, Expireds, etc with not 1 lead, not 1 call back. It didn't work for me. Cold calling didn't work for me.

I found what does work for me, and I do it well. I have generated a total of 41 leads since I started back at work on 1/1/2011. Out of those 41, 2 have already written contracts and 4 are showing.

Plan a strategy and stick too it. What works for me might not work for you and vice versa. Find out what works for you and do it.

Danny