All Forum Posts by: Danny Day

@Elisha Keller think of this..

You save up 3.5% down for FHA financing on your first multi family deal, but you represent yourself as a realtor.. you get 3% back in commission!

Of course you would have to split that with your broker, but if you didn't go with a big name broker.. you might find a place to do a $X dollars per transaction, instead of a 70/30, 60/40, or 50/50 split (ugh).

Look at all the cost needed to get a license.. it might be $1,500 total

If you know you're buying a mutli-family deal over $50,000 then you'll break even.. might even making some money (assuming it cost $1,500 to get your license - thats how much mine was).

Ok, thanks for the clarification Blair. This actually really helps. I thought you meant that of your 105 responses, you get 4% who leave voice mails.

This is a great thread. Thanks for the info.

Hey Jesse, I just want to confirm with you (I believe from your signature you're a LO). Any FHA notes orignated now have PMI for the life of the loan, even once you're past 22% equity - correct?

http://www.housingwire.com/articles/fha-raises-mortgage-insurance-life-loan

Blair, I'm trying to get an understand of your numbers and how many post cards (and cost) it takes to secure one deal.

From what I can understand, you have a response rate of 10.5% to your postcards. From there, 4.47% of the people who listen to your 2 minute voicemail leave a message - or is that 4.47% of the people you mail leave a message?

Then it takes 1 in 25 people who leave a message to close a deal.

1,000 mailers

105 response

4 voicemails

0.168 deals

So to close one deal, it takes you 10,000 postcards?

Hey Leonardo

From what I've read on here, most get the best results with 6 weeks in between. One thing Brandon Turner said that I really liked, was you have to find what works organically. meaning what works best for you, in your market.

Dive in and see what works.. keep us posted.

Danny

Hey Daniel,

You put down 20% where you live which means you're not paying PMI on your loan. If you put 3.5% down on an FHA note you will be paying PMI and it will not be going toward anything useful to you. Also, this can never be removed from FHA notes. I would not recommend refinance into an FHA loan for this reason.

Although many might advise against this, you could always take a home equity loan or line of credit on that equity you have in your house. You wouldn't pay to refinance and you would not be incurring PMI from an FHA note.

Hope this helps

Danny

Are you having a higher response rate with yellow letters or postcards?

Also what percentage of deals are you closing after they call in?

Steven, whats your strategy here? Buying land and waiting for appreciation (speculation), rental properties, rehabs? We've done some work in a very small part of town.. less than 1,000 people live in this area and have made nice returns on land deals.

Everything you will need to know to get you through a deal is on this website

Investing in a REIT might bring good returns, but I do not think it will bring you financial freedom. I would look into buying a rental property that cashflows.. and one day will be an asset that pays a nice dividend every month. There is lots of information on BP regarding buying rental properties. It should be pretty hands off for you if you get a property manager as well.

Once you do one.. just rinse and repeat. One day you might have more mailbox money then your salary.. and that is the day you can retire.