All Forum Posts by: Edgar Cifuentes

Hey Mo, 

I am a licensed Trec professional inspector and also an investor. I also do quite a bit of project management for clients that are doing rebuilds or renovations and can help you build a scope of work as well as estimates. Feel free to reach out to me, I would love to be able to help. 

@Shawn Parson, I did get it filled out. Last weekend I actually had won a book about texas real estate contracts and also was able to get a few pieces from some other investors. I was able to make it work and the title company told me I did a great job, lol. I still want to consult with a lawyer though. Contact me and I will be happy to share what I did.

@Tuan Dang

I would say it depends on the square foot of the house. From my understanding they supply you with cassettes and each one is for 500 sqft. I think that seems like a fair deal, just do your due diligence on the company. Make sure they give you the certificate and have them ensure you that you can proceed to rebuild in writing. Feel free to contact me at anytime Tuan, I can explain in better detail speaking vs typing.

Hello everyone,

I am wanting to start using the trec 1-4 contract instead of the 1 page for wholesaling properties. I know there are some posts before about this topic but if anyone could email me a copy filled out for wholesaling I would greatly appreciate it! 

@Huy Thai, unfortunately I haven't.  I bid one for 55K after they had a 75k offer, so I get what you mean about the wholesalers. It had mold and would need to have been properly remediated. I am signing a contract for one at 65K on monday but it is a good house. 2000+ sqft, detached garage, corner lot, has new pex pipe, new electrical so that saves around 7k as every house that I would get in bear creek I would replace the plumbing and electrical. Its got alot of potential and its pre-harvey arv was in the upper 160's lower 170's. I am mainly focused on cinco ranch though, trying to get some properties out there.

A certification from a air quality and mold testing company is a must. If they had it tested before installing the drywall and have the certificate that is a good sign that they did their research and understand the dangers. I have already ran into a investor who already flipped the property, did not get a mold test until after completion only to find out they indeed have mold. Now they have to pay 6k for the remediation and do a rehab all over again as they will need to rip out all the drywall. There are alot of low standard rehabs going on so I would highly recommend you avoiding that. Use a home inspector that is a member of TPREIA's houston chapter. We meet once a month and have been discussing the proper ways to protect our buyers when they are buying a flooded home that has been flipped. Again, I can't stress enough with these investors and contractors taking shortcuts to get as much profit as they can. For example in bear creek people are buying these houses at 75-90K to flip with arvs pre-harvey in the 150's-160's. A proper rehab alone is going to cost around 40K. I am putting in offers in the 50's and I myself am a contractor.  So just imagine what people are doing to cut costs. Sorry, I am not trying to scare you and investing in flooded homes imo is a great investment as long as you do your due diligence.

If absolutely nothing has been done sine 1940 there are a lot of deficiencies that maybe present.  The standards homes were built in that era are completely different to what is acceptable now. Back in those days asbestos was barely new to the market and was used for many things such as siding, plaster walls, insulation, duct work and even shingles. It would be amazing if they never replaced the roof but also it was common practice to just throw a new roof without removing the old one, this may cause extra stress in the framing and foundation so look at that as well. As for Electrical, aluminum wiring is a red flag not seeing it can't be used but it has greater chances of malfunctioning and causing a fire vs copper(aluminum was used more in the Vietnam era but this is just precaution), make sure all electrical work is grounded (you can tell if the receptacle are 2 prong and not 3), Service and Panel size would also need to be adequate if you plan on adding more rooms and circuits(I recommend at least 150 Amps). As for plumbing, you will most likely have galvanized supply lines and lead DWV (drain,waste and vent). Like anything else they have issues mainly corrosion. I can go on and on but would highly recommend you get an inspection on a house like that. You may have to pay 4-500 for it but that is the best way to determine which route to take. Feel free to contact me for any opinions on the home. Good Luck! 

@Will Barnard, I really appreciate you taking the time to respond and giving me some knowledge. Forgive me as I am a novice to this and I need to hear personal experiences. What you are saying has opened my eyes that I need to understand more of the strategies available to make money off of deals that don't fit the almighty criteria of 70% ARV. I know there are ways, I just haven't learned them yet. I am to stingy to pay a "guru" more than 500$ as I can only trust them as far as I can throw them. Thank you for your input, it has definitely helped.

@Lakeem Anore I appreciate the feedback  and the wise tips. It makes alot of sense and  I will work on staying in control and giving them what they want. I will be following up as I am inspecting their new home, thanks again.

@Will Barnard I am not sure why they haven't gone the MLS route, I could have asked better questions and that should have been one of them. They were looking for direction on where to start in the real estate process, and I tried my best to give them the information on what I would do in their shoes if they didn't have the funds to pay realtor commissions, closing costs, repairs and everything associated with getting the house sold. Here in Houston gurus, new investors, old investors, established investors all talk about the 70% rule and how in order to get a profit the "numbers" is what matters. In that aspect to me it makes complete sense, if the investors in Houston that are making all the money are the ones living by this code I am not the one to reinvent the wheel. I have never had luck and would never need it all I need is the continuing guidance I have been receiving from up in the sky and the hustle I have in my heart to succeed for me and my peers that come from the bottom of the barrel. As far as being a dreamer a wise person told me nothing comes to a sleeper but a dream, so I am not the one to be a dreamer either. I appreciate the feedback sir.

@Tom Cooper, I am new to investing and hear everywhere that to get a good deal would be 70% of the ARV - Repairs - my fee to wholesale, I go to several meetings and the investors I meet don't want 80-85% they want 70% (Not sure if they are just as new to the business as I am). You are correct about the lowball offer which is why I told her to list it on FSBO and Craigslist and didn't proceed to try negotiations. I told her about the market demand and that she could sell it herself. Now Tom if you are willing to buy it at 80-85% ARV - repairs I would be glad to set this up for you, my wholesale fee would be 5K. This is why I posted this I want to be able to help people, not rip them off. I am not a greedy person but at the same time I want to be able to get my piece of the pie. I am looking to gain knowledge and if you are willing to share I would love to meet with you and discuss more. If this property does in fact interest you, I am very positive I could get it to you at above 80%. I appreciate your honest feedback sir, and hope to hear back from you.