All Forum Posts by: Danny Day

Can an experienced wholesaler break down a sample deal they have completed with a REALTOR? I'd love to see one here, I think we could all learn from it.

I'm trying to work with more wholesalers, but both sides are confused as to how the deal will break down.

Also, how do you assign contracts for bank owned properties? Or do you need to dual close?

Thanks in advance

Danny

I'd like to see Rich on there! I've enjoyed a lot of his posts - very inspirational.

Bryan would also be a great addition, as I've learned a lot from him.

Yes, they made a verbal offer but never came through with a written contract. Unfortunate, but it happens.

J - Good post. You're right, trying to get out as fast as possible!

Xavier, when I pulled my comps 2 weeks ago, my broker was telling me I was crazy for listing it so low at $137,000.

My price is based on price per sq. foot on the comparables as well.

Open house this Sunday. We'll see what kind of traffic we get. I've got a sign rider that says "OPEN HOUSE SUNDAY" on the listing.

Lots of interested people stopping by. The mail lady, the neighborhood constable, and a few others.

Danny

Your numbers are off a little bit:

Purchase Price: $79,702
Rehab cost: $31,913.94
Cost of money: $1,449
Holding cost: $730
Estimated selling cost: $7,000

Total Expenses: $120,796

ARV: $137,000
Less Total Expenses: $120,796

Estimated Gross Profit: $16,204

Bought the book today, I'll probably read through half tonight. Good stuff!

My first rehab went very well. I had some experience in construction project management / rehab & development - but the best thing I did on this rehab was post my Q & A's on Bigger Pockets. I started a thread to log the details of my first rehab, hopefully to help other people out. We closed March 2011, and finished the rehab May 2011. I under estimated the rehab expense, went over budget by about $5,000, and went over on the time frame. I believe my biggest mistake was using a GC (who over charged - thought I would be paying for great service). My project sat idle for 2 weeks, and the GC forgot to order windows. From this, I learned that #1 I will never use a GC again, and #2 Have a list of your lead time items (granite, windows, refinish floors, resurface tubs, etc). We bought the house at $65,000, spent $30,000 on rehab, and have the house on the market for $137,000. We've had 7 showings in 7 days, and 1 offer.

I would recommend interviewing a few different realtors, find out their commission on the deal, what they will do to market your home (they should all have a marketing plan), online presence (very crucial today), and if they offer any type of bonus (in higher price point neighborhoods I'll buy my clients an AHS home warranty).

Danny

I'm in! Keep us informed Josh.

Thanks!

I'm very pleased with the outcome. I knew there would be a large learning curve on this first one. I would said the biggest mistake I made on this deal was using a GC. I over paid my GC and did more managing on my end than I needed too. I won't be using a GC anymore.

Good news - We've had 2 showings today, and one is writing an offer this weekend! We'll have something in writing by Monday. 3 days on the market and they're already submitting offers.... My only question is:

Did I list it too low?

Have a great weekend guys!

Danny