All Forum Posts by: Seth Hobbs

Come join us for an after hours investment meetup for experienced investors looking to grow their network and business. The first meetup was a huge success and great relationships were established. This will be a completely free event occurring on the 4th Monday of every month.  Your Network is your Net Worth! Looking forward to seeing familiar faces and new ones!

No specific Agenda guys, just another opportunity to get around like minded people - Newbies are welcome. The only other North Houston meetup is very educational driven and is long with networking opportunities at the beginning and end, so this is meant for more of a relationship driven meetup to grow your network.

Come join us for the inaugural after hours investment meetup for experienced investors looking to grow their network and business. This will be a completely free monthly event occuring on the 4th Monday of every month. Your Network is your Net Worth!

Investment Info:

Single-family residence fix & flip investment in Houston.

Purchase price: $115,000
Cash invested: $3,000
Sale price: $155,000

This flip was bought from a wholesaler. All I needed to do was clean out all the junk in the home, put new carpet in upstairs and repaint a couple walls. This one sold 5000 cash over asking price in 1 day. These are rare to find!

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

I was able to do this with a little bit of money and I knew that it would fly off the market.

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

I got the deal from a local wholesaler and was able to negotiate it down just a bit.

How did you finance this deal?

Hard Money, and then paid for the repairs out of pocket since they were only 3K.

How did you add value to the deal?

I cleaned up all of the garbage and junk throughout the home, painted a few walls, and put new carpet in. With that and the photographs we take as well as the location, I knew it would hit!

What was the outcome?

I had bought and sold this home in 1 month. The fastest flip I've done to date.

Lessons learned? Challenges?

This was honestly not very challenging.

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

I am the agent.

Investment Info:

Single-family residence fix & flip investment in Spring.

Purchase price: $100,000
Cash invested: $45,000
Sale price: $181,000

This flip was purchased from a direct mail campaign and took a few months to close due to some title heirship issues. But we got it closed and took under 3 weeks to renovate including a new roof, AC, and landscaping. We completely remodeled everything on the inside to bring it up to today's standards. There was some good profit made on this one!

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

It is one of our target areas for fix and flips. We have been mailing to this area for several months.

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

The owner called us and needed a way out. We new exactly where we needed to be numbers wise and came to an agreement.

How did you finance this deal?

Private money

How did you add value to the deal?

We completely renovated the inside, and I mean everything. We also put a new roof on as well as a new AC system

What was the outcome?

The home was under contract in 8 days for a little under list price and we are moving on to the next one!

Lessons learned? Challenges?

Contractors are always the hardest part of the process! Getting the right crew is so crucial. We are in the process of building our own team so we don't have to rely and poor general contracting.

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

I am the agent on the deal. So yes!

Great Question!

Among many other day to day goals, my main objective is to acquire a 50-100 unit multi that has value add potential and reposition within 18 months. That will get us enough to be able to seamlessly jump in syndication!

Hi Eddie!

I attend the North Houston Real Estate Investment meetup in the Woodlands.  It is absolutely great.  They meet the 2nd Monday of every month around 7.  You should definitely come by if you haven't already.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Danville.

Purchase price: $110,000
Cash invested: $110,000

This 8 unit was bought using the BRRRR method. We paid cash for it, renovated, got mostly new tenants in and refinanced. It is worth 225,000 after renovations and value add. We only put 30,000 in it on top of the purchase price.

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

The price per door and we were looking to grow units exponentially, so the deal made sense.

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

It was on the MLS for awhile

How did you finance this deal?

Cash

How did you add value to the deal?

renovated 6 out of the 8 units and raised rents

What was the outcome?

The building is worth significantly more than what we purchased and rehabbed it for. It is a great addition to our portfolio.

Lessons learned? Challenges?

Very challenging dealing with the seller. He was emotionally attached to the property so it didn't go like a normal transaction with the ability to renegotiate due to due diligence. But the deal still made sense for us at the time.

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

Yes my agent in Illinois. I would highly recommend her. I have worked several deals with her and she is young and hustles! Her name is Hayley Shore. Contact me if you would like her contact!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Danville.

Purchase price: $152,000
Cash invested: $50,000

This was a 3 unit that we turned into a 4 unit that is in one of the nicest parts of town and draws really nice rents. Rehab was roughly 40,000 which we then refinanced out and the property is currently worth 215,000

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

It was in a great part of town and was originally going to be a house hack, but decided to add another unit and go for the cash flow. It doesn't have the best cash flow but it is a good asset that really strengthens our portfolio because of its value.

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

A real estate agent brought it to me off market.

How did you finance this deal?

Conventional commercial financing

How did you add value to the deal?

We turned the 3 unit into a 4 adding more cash flow and value.

What was the outcome?

Its a very stable asset with long term tenants in it because of its seclusion and location.

Lessons learned? Challenges?

Get contracts with contractors! We spent way too much on the renovation, it being one of our first investments dealing with outside contractors. They took forever to do the job and way over budget.

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

We bought it with a realtor and we currently have a great property management company in place.

Investment Info:

Single-family residence fix & flip investment in The Woodlands.

Purchase price: $100,000
Cash invested: $50,000
Sale price: $209,000

This flip in the heart of The Woodlands only lasted 2 days on the market before it had multiple offers! With just over a 50,000 dollar profit, we spent $0 of our own money making it an absolute home run of a deal!

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

The zero money out of pocket and the initial cost of the home.

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

Through direct mail marketing.

How did you finance this deal?

Private money - purchase price + rehab

How did you add value to the deal?

We took down a wall and raised a ceiling making a more open concept. We also enclosed the master bath, added a an additional sink and completely redid the shower. It was a full rehab deal.

What was the outcome?

It was a 2 month turn around for a very nice profit

Lessons learned? Challenges?

Always know you will probably go over budget - so have a little more juice in the deal than you think.

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

I am an agent so I listed it saving me the 3%