All Forum Posts by: Danny Day

Kevin-

What are the repairs needed, and what do they cost? You need to factor this in when presenting this info to an investor.

Here is a good rule of thumb investors go by:

70% of ARV with repairs

So your comps came back at $110,000

$49,000 purchase price
$5,000 estimated repairs
$54,000 all in
$54,000 / $110,000 = 49.09%

$49,000 purchase price
$25,000 estimated repairs
$74,000 all in
$74,000 / $110,000 = 67.27% (not bad)

Danny

I am assuming you're talking about holding property and renting it out?

Some investors calculate 5-10% of their annual rent to be repairs. This all varies based on each property. One could be a maintence nightmare, and one could have no issues and good tenants for 5 years...

If the property is older, has a bad roof, appliances are going out, etc, then your numbers will adjust.

Welcome to BiggerPockets

Danny

Phil welcome to BiggerPockets.

Different states have different requirements on being licensed / unlicensed to manage property. I believe in PA you must be licensed - I would check with someone who is in that market though.

This website is a great resource, use the search tool at the top and someone might have already answered your question..

Danny

Raymond-

Get the title search. I just spent 3 months marketing a sellers home who was in short sale. We got it under contract, and opened title. Title company called me 1 day later saying there were 2 liens on the house totalling $51,000 - both the seller did not know about. She was tricked into signing paper work her husband had, and never knew they were on the house.

Now just think if we closed the deal without a title search...

Danny

HUD does a conference call for Q & A every Friday. I just got the email from PEMCO.

+1 (213) 493-0600 access code 283-030-696, tomorrow at 10am (MT).

Let me know how the call goes, I've never been on one.

Danny

Your local MLS should have sold rental comps as well.

I always look forward to HUD homes.. It is a real simple process. The first time I will admit caused headaches, but for the most part if you understand the process it is an easy task. They respond to offers usually within 48 hours as well on hudhomestore.com.

I like it.

Danny

In my opinion an 800 number on a bandit sign would decrease response rate. Just my opinion.

Might want to test it out , try 2 different numbers - one local, and a 800 number and see what converts best.

Danny

Welcome to BiggerPockets Willie

They have a whole forum dedicated to wholesaling. I would start there and absorb as much as possible.

Danny

Can anyone chime in on how they agree to manage a property / get a property under contract to manange from the owner?

If someone could post a sample contract that would be much appreiciated

:cool: