All Forum Posts by: Hunter Byler

We installed the ring security system and added a flood light camera. Then ended up seller those with the house because the buyer wanted them so worked out. If you don’t want to sell theM be sure to exclude them in the contract 

@Ryan Johnson I have worked with Pam Efferson with abundant living. she has sold multiple properties for us. Really knows her stuff. Specifically the Timber grove/ Heights area. . Completes over 10million a year in transactions. And she is willing to work with you on the percentage if you have multiple properties to list 

Chris Prince with Keller Williams also a good realtor that works with investors/builders to sell homes and will work with you on the percentage if you are an investor

@Austin Smither Langley
Good job of that home owner keeping taxes that low! wow. but yes that is an issue with new regulations not allowing a rehab budget more than 50% of value of home. Others that ran into this issue, went out and got a private appraisal of their property which would raise the value of the appraisal thus keeping rehab budget under 50%. 

That could have been something that you could have done for this property. However, of course this would draw out the whole process and does take time... 

@Garrett Ellison, you are correct that for the next year after the flood contractors are very busy and can be tough to come by for people who do not already have a relationship with contractors. However, at this point the demand is not as crazy as it was right after the flood and there should not be any issues with finding guys to get the work done.

@Zachary Walter don't be scared of the flooded properties, but just calculate in your numbers that they will sit on the market a little longer than properties that did not flood and in my experience they sold for about 10% less than a comparable home that did not flood. I have heard people say that we should expect 3 years for these homes to rebound to market price (based on history in Baton Rouge after Katrina). 

That being said, if you calculate this all in your numbers, you can still make money. 

To concur what what Erica said^ Buyers of course want to know if it was a first time flood vs a multiple flood. The first time floods do much better because Harvey  is considered a freak incident (54" of rain). However, some of the properties that we fixed up had been flooded in Harvey and previous tropical storms which was a big deterrent to some buyers.  

Another common misconception is that people think that because it has flooded, they will not be able to get flood insurance. This is not true. You can always get flood insurance, and if they are getting a mortgage it is required if it is in a flood zone. The other thing is, the Houston Chronical had posted an article saying buyers to beware of the "30 day wait period" when getting flood insurance. Meaning, after you get flood insurance, there is a 30 day wait period before the policy is active. This is partially false. When getting a new mortgage, the wait period is waived. There is a wait period for someone who has an existing mortgage and you are wanting to get a new flood policy or change an existing policy. We had buyers who were confused about this. 

They will also likely ask for a remediation report showing that the home was professionally re mediated of mold or properly dried out.  At this point, you would want to ask the current seller if they have one and if not, it would be worth it to have a mold report completed so you can show future buyers that there was no mold when you bought the home. 

It also depends on what your strategy is, whether you would want to buy and hold as a rental or fix and flip. buy and hold can be a great strategy because we have experienced that renters are not as concerned about if it flooded or not and you can get market rents for a fixed up flood home. I have heard that in some areas of Houston where it was a first time flood and not bad, they were still getting full market price. We were fixing up homes in Heights/Timbergrove area which most had flooded multiple times ( Harvey & Alison) or memorial day / tax day floods. 

The key for sure is to do a good job fixing them up and quality design so that people can overlook the flooded past because they fall in love with the house and design. 

Best of luck! PM me if you need any help or want to discuss more. cheers! 

@Alex Bekeza thanks for reply! If a lender did do a cash out for purchase plus repairs refi would it be a high interest rate? I had heard of someone doing this but didn’t know it was possible. I have two differlend loan terms for the two properties

Property #1 - 3points 12% covered 100% purchase and 100% remodel (up to 70% ARV) 6 month term

Property #2 - 2 points 10% covered 90% purchase and 100% remodel. 12 month term 

I am looking for lendors or local banks in Houston, TX that will do portfolio type loans for a cash out refinance or no cash out refi without the 6 month seasoning period. Does any one have any suggestions? 

I have 2 properties that need to be refinanced off of a hardmoney loan. 

Also, is it possible to refinance out of the hardmoney loan as soon as the property is fixed up? For example. I closed on the property May 1, the house is fixed up and listed on the MLS. June 1, Would I be able to refinance to a traditional type mortgage or any other low interest mortgage to pay off hardmoney lender but be able to hold on to the property at a lower rate until it sales?

We just had our appliances stolen from one of our flip homes that we have for sale. We are diligent at keeping the doors locked and only have one lock box with a key to front door only for realtors. We do not have a security system/alarms set up. The last person there was a realtor with a client for a showing. My question: how many of you install WiFi/ security system and or cameras for your flips? Have you ever heard of people who schedule a showIng to purposely leave door unlocked

Matt, I look forward to attending this. 

John Daniello Yeah they wouldn't put up the loan estimate and closing cost break down until I called to ask. They were very quick getting back to and seemed knowledgable though.

@Stephanie Medellin thank you for the advice! I didn't really think about the customer service portion of lender.