All Forum Posts by: Danny Day

The only upfront fees I pay for my hard money lender is an appraisal fee of $500. I also pay 2 points in origination, but that happens at closing.

Quitclaim Deed

I've decided I'm done looking on the MLS and submitting offers at or around 50-60% of the list price.

I'm going to start marketing to pre-foreclosure / distressed home owners. Can someone give me the break down on how the deal flows once you have it under contract?

I assume that you use your own contract stating that if the title search shows existing liens you can opt to back out / re-negotiate?

The way I see it..

1. Make offer
2. Offer accepted / executed contract
3. Option period / Earnest Money period
4. Open title
5. Verify its a clean title, if not re-negotiate for liens / removal of liens
6. Appraisal (after you know the liens are removed)
7. Closing

My reasoning for the appraisal after the title search is that the appraisal will cost me out of pocket $500. The title search I can get done for around $150. If they are not willing to come down on the price with existing liens, I want the option to walk away with less out of pocket.

Also, do you do inspections with a licensed inspector? I can get that done for around $300 and he always points things out that the next inspector will find.

Last but not least, do you do all the legwork for payoff request, short sale approval, loss mitigation for the home owner? The reason why I am concerned about this, is that I am a licensed real estate agent in the state of Texas. I am going to write a page that discloses that I am a licensed real estate agent in Texas, and I do not represent them or their interest in the transaction.

Sorry for the long post, but I just want to cross my T's and dot the I's before I get one under contract.

Thanks in advance

Danny

I'm going to look at 6 REO's tomorrow, and 1 which is under contract with a wholesaler. I'll probably write 3-4 offers. I've seen a sharp decline in decent REO's in my area the past month or so. Maybe the bank is waiting to list in "buying season"?

Good thread. I've noticed some people think its easier than it really is. You have got to be a self motivator, a go-getter, and be able to work from home. Many people can't do this.

Like Jeffrey said above, many of your friends will most likely still be in that party life style out of college. While having a good time is great, you'll need to save every bit for the long haul as a full time RE investor.

Welcome to BiggerPockets Andrew. What part of Houston do you work in / invest in?

Make a good friend who is a licensed realtor with MLS access. Most likely they won't be giving you their username / password. I will tell you that HAR (Houston Association of Realtors) monitors the login for the MLS system. If your IP address shows up logged in multiple times throughout the city of Houston, you'll be getting a $500 fine for each time, and risk losing MLS access.

Goto your states real estate commission website, and find a new agent in your area. Give them a call, tell them you're a local RE investor / wholesaler. Take them to lunch and explain. Goto their office and use the MLS. They will be hungary to make a deal happen.

Good luck

Danny

I charge $25 fee per person in the house over 18. This covers my expense for criminal / credit / rental history.

I do pay $25 for the service, and charge $25. I do not take anything extra off the top, although I've had agents who charge $100 for app fees for couples..

Congrats Mark, looking forward to hearing updates.

Joel-

As I said in my first post, my ARV is most likely off. Under 70% would be in the $156,000 area.