All Forum Posts by: Danny Day

Yes as others have said, markets are local. With that being said, you can capitalize on good markets and avoid bad markets. If your goal is to rehab and sell houses then you will be confined to your local market. Many RE investors I work with as clients are not looking for a quick buck. They are building wealth by letting other people pay for it.

I've got clients who own homes in 15 states, all they care about are the numbers. If you're interested in my local market, I work a very specific set of zip codes.

Here is a list I use for my self personally as well as my clients...

You will notice in some zips people on average are making $50k, $60k on a purchase. I think the $95k one is a little inflated by a large home sale or something like that.

Good luck

Jon that is a good idea. We have not offered it yet, but have dabbled by crunching the numbers on some of our SFR deals. I'm all for it, I just need to learn more about it.

In Houston we see an average net profit of $12k-$15k on houses with an ARV of $100,000 or less.

You see a big difference in net profit as ARV goes up due to fix cost not impacting your bottom line as much. My goal for 2012 is to rehab houses in the ARV range of $150-200k, which we are projecting an average net profit of $20-25k.

I'm under the impression that this should not be a fixed amount as every deal is the same. Wholesalers won't make anything unless the price is right for the end buyer. Marking up a deal $5k-$15k because that is your minimum profit could blow the deal before it even begins. I would go on a percentage IMO

We're doing rural development near the central Texas area. You can buy for $4,000 - $8,000 per acre (10+) and sell for $15,000 - $25,000 per acre (under 3) after being "developed".

I wouldn't go as far as saying we are developing, more than staging land. We clear brush, trees, and make a path way for people to get access on to the property. We don't drop septic or run electric because the home owner may not want the house in a specific location.

Right now we're negotiating a 20 acre plot in which we will section 2 acres for each home, around a pond in the center.. which will probably be our biggest project yet.

I'm looking into squeeze pages w/ auto responders for picking up retail clients on the agent side of my RE business.

I've got one running now on Facebook where you press 'Like' and then fill out a form. I'm running FB ads daily to that page.

My CTR right now is 0.009% with 3 clicks out of 3,503 people so far. Its been running 1 day and my budget is $5.00 per day. I am doing a CPM of $.017

Any ideas on how to improve my clicks / conversions? I hear its all about the image.. This is what mine looks like right now.

Any suggestions?

My target audience is as follows:

- Live in Houston
- Between ages 23-43
- Female
- Who are single, engaged, or married

I've had better luck with females clicking my ad.

Your suggestions would be appreciated!

I agree with Rich. Not enough capital to do as much as I want. REO title companies dragging their feet / delayed closings. Tire kickers wasting my time. HUD 30 day investor window.

My last 3 clients this month came from my blog and Bigger Pockets. Social media is here to stay. Those who are not on it are analog in a digital world. Good post Josh.

Danny

Jon write your listin agreement for 1 week or how ever long. Tell your agent your plan. Let them know you're going to re-list it with them if need be. I really don't think an extra 7 days on market will matter. Seems like more of a hassle.

Get it on the market, market the open house for the beginning of the year and start 2012 off with 2 SOLD signs.

Good luck

Danny

Has anyone been able to succesfully negotiate a different tile company which was requested by the REO owner?

I'm tired of these banks using their own title companies dragging out deals.

I'm working on one now. It was going to close this Friday. I ordered the survey (in writing) 2 weeks ago.

I called today and they can't even find the file. I highly doubt there has been a survey completed, and we'll probably have to wait a week or two.

There should be some kind of work around on this.

REO title companies are always bad experiences.

Do you think its because they are paid on salary?