All Forum Posts by: Marcos Torres

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000
Cash invested: $40,000
Sale price: $165,000

Purchased after it was out of probate for $75k with a $60k loan. Then proceeded to rehab for $40k. It was an old build with balloon framing, knob & tube electrical, lots of problems. Changed the ceiling in a bedroom that was flat and pooling water, electrical, pex plumbing, roof, central A/C added, new drywall in about 70% of the home and restructured the living space to give an open concept dining/living area as well as create a 3rd bedroom. Rented for 8 months then sold for $165k cash.

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

I went into analysis paralysis after trying to make sure I wouldn't fail. This deal kinda fell into my lap and I knew it was a great deal that I couldn't pass up.

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

My family was going through probate over an estate so I offered to pay for an appraisal and buy it for that price.

How did you finance this deal?

I used a traditional loan and put 20% down.

How did you add value to the deal?

I completely remodeled the home. New roof, A/C, water heater, flooring, drywall, electrical, water lines, the works.

What was the outcome?

The outcome is a great looking home that I was able to sell for a profit.

Lessons learned? Challenges?

Lesson learned - Use a general contractor to complete the entire rehab. I completed this one myself using sub-contractors on occasion as needed. It made the rehab more expensive and a much bigger headache to manage them.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used my real estate agent to sell. Kim Roberts of Keller Williams in Houston.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000
Cash invested: $40,000
Sale price: $165,000

Purchased this home after it was out of probate for $75k with a $60k loan. Then proceeded to rehab it for around $40k. It was an old build with balloon framing, knob & tube electrical, and lots of problems. Changed the ceiling in a bedroom that was flat and pooling water, new electrical, new pex plumbing, new roof, new central A/C added, new drywall in about 70% of the home and restructured the living space to give an open concept dining/living area as well as create a 3rd bedroom. Rented it for 8 months and then sold for $165k cash offer.

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

I went into analysis paralysis after trying to make sure I wouldn't fail. This deal kinda fell into my lap and I knew it was a great deal that I couldn't pass up.

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

My family was going through probate over an estate so I offered to pay for an appraisal and buy it for that price.

How did you finance this deal?

I used a traditional loan and put 20% down.

How did you add value to the deal?

I completely remodeled the home. New roof, A/C, water heater, flooring, drywall, electrical, water lines, the works.

What was the outcome?

The outcome is a great looking home that I was able to sell for a profit.

Lessons learned? Challenges?

Lesson learned - Use a general contractor to complete the entire rehab. I completed this one myself using sub-contractors on occasion as needed. It made the rehab more expensive and a much bigger headache to manage them.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used my real estate agent to sell. Kim Roberts of Keller Williams in Houston.

Just encountered the same issue on my first property. Loan fell through due to no permanent heat source. It's a crawl space foundation though and I have run electric on my own on this type. I'm thinking about putting in this baseboard heater to get the loan approved....or get a hard money loan which would probably cost more in the end. 

@Brent Fabian I hope the project is progressing along well for you. Any new challenges or things going extremely well for you?

Hey Taylor. So I'm a newbie, but I've put offers in for houses that have been flooded by the hurricane. Houses which have never been flooded before that event are highly unlikely to flood again and I have been noticing more activity on these properties. My offers have not been accepted due to being out bid. So there's activity on these houses already. Good luck.

Just roof and landscaping? Nice! Congrats on the successful flip.

Hey Shaun. I'm no pro by any means, however the questions I've been asking are:

-Whether they offer credit based loans, asset based loans or both.

-How much are their origination fees.

-Timeline for repayment. Also how much of that time is for construction (I do flips)

-Interest rates and if variable, what are those rates and how I can get them lower.

-Total payout. Of course this varies but if you already have a deal they may do the math on your contract for you.

These are my questions. I'd like to hear what you or anyone else asks. I'm still learning.

@Nick Rutkowski Thanks. You're right, we were definitely fortunate. I've gone back and reviewed what happened over the years and how the market changed. I'm already doing this again in the new home I've purchased. The groundwork has been set for that. Next, I do it in 1/20th of the time on a flip.

Investment Info:

Single-family residence other investment.

Purchase price: $115,000
Cash invested: $7,000
Sale price: $185,000

This was my first home actually. Lived in it for 5 years and realized that it had appreciated more than I expected. So I decided to rehab it a bit and see what I could really get for it. It turned out great and this is what got me started in real estate.

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

I saw that there was equity due to appreciation

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

We purchased this home with the use of a real estate agent.

How did you finance this deal?

FHA loan through Wells Fargo in 2013.

How did you add value to the deal?

Fresh paint, new cabinet, new countertops with sink and faucet, new backsplash. Replaced the carpet and painted all the cabinets gray for a better look. Fixed some roofing and broken siding. Installed new toilets. Mostly small things.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Doug Fuller and Kim Roberts from Keller Williams. They gave me some insight and listed the property.

Hey BP members. I've been a BP member for a few months now but I've just been soaking up tons of information and learning as much as possible.

I have finally decided to post after listening to the BP Podcast interview with Sterling White. It's time for me to start networking.

I plan on doing fix and flips in the Northwest Houston area and maybe Katy, since that's where I actually live. I got the bug from rehabbing my first home which is currently under contract. I'm making money on the sale and decided it was great. A good friend of mine is a contractor so we're partnering and looking for deals now.

So here we go!