All Forum Posts by: Kiesha Curtis

Investment Info:

Single-family residence fix & flip investment in Houston.

Purchase price: $155,000
Cash invested: $99,607
Sale price: $250,000

This was my first flip deal. We basically broke even but learned A LOT! I put together an LLC with 6 of my past clients, who didn't know each other but wanted to invest in flips...that was risky all in itself. I'm so grateful for my relationships with contractors because, if not for that, we would have lost a ton of money. We were able to replace the siding and the roof on the entire house, new A/C unit, rehab the entire interior (fixed foundation, new floors, paint whole house, new kitchen, new baths, install ceiling fans, reglaze windows, termite treatment, etc) for $50k. Home was sold within 3 weeks to an FHA buyer!

What made you interested in investing in this type of deal?

I'm a realtor, and a group of my past clients wanted to do a flip deal but none had the funds to do it alone. I introduced them to one another, put together an LLC, and helped them find the deal. I invested my own funds too.

How did you find this deal and how did you negotiate it?

it was in the MLS

How did you finance this deal?

cash and hard money

How did you add value to the deal?

completely rehabbed

What was the outcome?

We sold it, and broke even.

Lessons learned? Challenges?

Reliable contractors made all the difference. We saved a ton of money because we vetted our contractors.

@Basit Siddiqi

I've reached out to all of my friends and everyone is on board.  The group has meshed well, but everyone wants to make sure they are legally protected from any issues that may result from this endeavor.

@Basit Siddiqi

I've talked to all of the friends and everyone is on board.  Everyone just wants to make sure they will be protected from any legal issues that may result from our endeavors.  That's the biggest concern.

@Andreis Bergeron

Thank you very much!  I really appreciate the feedback.

@David M.

Thanks for the GREAT suggestions.  I'm in TX, where series LLCs are doable, and you're spot on with the benefits of them.  I really like some of the other ideas that you mentioned too and will chat more with the attorney.  And I totally agree regarding the first deal.  It will be our chance to test the waters.  I think we'll learn a lot about each other and the synergy of the group once we get rolling.  When it's all said and done, I'll probably have a great case study to share with the BP group.  LOL

@Basit Siddiqi Thanks for your feedback as well. I will bring this up to the attorney also, in order to get a better understanding of the pros/cons. I think we started with the LLC idea because that's what everyone is most familiar with, which is not a good reason. It sounds like it may not be the best option necessarily.

@David M. Great question!  All are friends/acquaintances of mine but do not all know each other.  We have an attorney involved, and she's been incredibly helpful.  But I wanted to reach out to a few people who are hands-on investors to see if there's anything that we might be missing.

Your advice is VERY helpful. Our attorney suggested a series LLC, but we'd put that conversation to the side. After reading your comments, I think we'll revisit that.

I am creating an investment group with several friends, who do not know each other. Our plan is to purchase and flip homes in our local market. We are creating an LLC, and I wanted to find out if anyone has done this (an LLC with people who aren't familiar with each other) and could recommend some best practices for forming the group and any essential language for our operating agreement. If you have a group like this, how are management roles handled, how are profits handled (do you distribute all the profits after each deal OR are the members required to re-invest a portion), how are new members added, and what if someone wants out? Any guidance would be appreciated.

@Cody Barna  ultimately I'll sell it or refi into a permanent loan.   We're just starting construction so I have a little time to decide. 

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $38,000

purchased a vacant lot, currently building a duplex, will ultimately sell or rent

What made you interested in investing in this type of deal?

Finding a decent flip or buy/hold was extremely competitive, so decided to build one!

How did you find this deal and how did you negotiate it?

Local MLS

How did you finance this deal?

Cash and construction loan