All Forum Posts by: Jodi Gauthier

I'm very interested in getting into mobile home parks and have some connections with investors with lots of experience in this field. I've got a proven track record with sfr investing and a quick learner with capital to invest. Shoot me a message if you are interested in connecting. 

@Marcel Galega I'm an investor located in Katy.  I also own a real estate brokerage and can connect you with an agent that could assist. Feel free to reach out if you have any specific questions and I'd be happy to help.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $182,000
Cash invested: $74,100
Sale price: $335,500

We acquired this property off MLS. I loved how it turned out and we made a nice profit but it took longer than expected due to several hiccups along the road (contractor mistakes, not being on top of the project management as much as we should have been, unethical inspectors, etc.). We definitely learned some valuable lessons along the way and plan to implement some changes on our next flip.
Purchase Price 182k
Rehab 65k
Holding Costs $3,800
Closing Cost 13k
Sales Price 335K
Profit $71,200
(Being a Realtor I earned roughly $5,500 on the commission when purchasing and saved 3% on selling commission which is why cc is so low)

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

This was in the neighborhood we work and live. I love to do flips in our neighborhood and saw tons of potential in this neglected property.

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

Found the property listed on mls at a ridiculously low price and jumped on it. Negotiated 7k down during option period.

How did you finance this deal?

Local Bank financed. Used our own funds for down payment.

How did you add value to the deal?

Separated the raised living area, did some foundation needed foundation work and full cosmetic remodel.

What was the outcome?

We put the home on the market the first of July and had multiple offers within the first week at 356k list price. The deal fell apart because of inspections. The inspector damaged the home and we had to remove from market and battle with them to make repairs. Finally they obliged, we relisted and sold after having to reduce once.

Lessons learned? Challenges?

I learned to vet inspectors, educate myself in mold remediation protocols and TDI reports, pay closer attention to budget, day rates are not the way to go, don't hire friends, etc. The list goes on with lessons learned on every property we do. Thankfully the list hasn't been duplicated. I may be learning the hard way, but I'm learning. Every step of the way.

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

ThisIsLivin Properties for the acquisition and disposition of this property.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $182,000
Cash invested: $74,100
Sale price: $335,500

We acquired this property off MLS. I loved how it turned out and we made a nice profit but it took longer than expected due to several hiccups along the road (contractor mistakes, not being on top of the project management as much as we should have been, unethical inspectors, etc.). We definitely learned some valuable lessons along the way and plan to implement some changes on our next flip.
Purchase Price 182k
Rehab 65k
Holding Costs $3,800
Closing Cost 13k
Sales Price 335K
Profit $71,200
(Being a Realtor I earned roughly $5,500 on the commission when purchasing and saved 3% on selling commission which is why cc is so low)

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

This was in the neighborhood we work and live. I love to do flips in our neighborhood and saw tons of potential in this neglected property.

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

Found the property listed on mls at a ridiculously low price and jumped on it. Negotiated 7k down during option period.

How did you finance this deal?

Local Bank financed. Used our own funds for down payment.

How did you add value to the deal?

Separated the raised living area, did some foundation needed foundation work and full cosmetic remodel.

What was the outcome?

We put the home on the market the first of July and had multiple offers within the first week at 356k list price. The deal fell apart because of inspections. The inspector damaged the home and we had to remove from market and battle with them to make repairs. Finally they obliged, we relisted and sold after having to reduce once.

Lessons learned? Challenges?

I learned to vet inspectors, educate myself in mold remediation protocols and TDI reports, pay closer attention to budget, day rates are not the way to go, don't hire friends, etc. The list goes on with lessons learned on every property we do. Thankfully the list hasn't been duplicated. I may be learning the hard way, but I'm learning. Every step of the way.

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

ThisIsLivin Properties for the acquisition and disposition of this property.

Welcome and congrats on taking the plunge. I flip in Katy and West Houston Markets as well as own a real estate brokerage. Feel free to reach out if I can be of assistance in any way. 

This very well may be a stupid question, but I'm putting it out there.....When purchasing a home from a seller through owner financing is there a minimum interest rate we as investors are required to offer to comply with regulations such as Dodd Frank, etc. ?

I buy in Katy 77450, 77493,77494,77449 I’m selling all my properties under 200k flood or not in less than 15 dom. I’m experiencing 400k and above sit longer and find them harder to unload than I’ve experienced in the past five years 

What has been done since the last time it was listed on MLS?

@Giovanni Luna I'm an experienced agent/investor in Houston/Katy and if you can get 4% on a hml and will introduce me to your lender I will hold your hand and walk you through every step of the process. All kidding aside, sounds like a scam. Run the other way. Start attending some of the area meetups, align yourself with experienced, trusted professionals that may be willing to JV or partner with you until you are more confident and have a little more knowledge and experience under your belt.

@Kevin Pruitt Thanks! I funded the deal and rehab costs through a commercial loan with a local bank. Put down 25% of purchase price and rehab costs were rolled in. 1% origination and 5.75% interest only for a year. We had multiple offers within the first two days as the market was hot during July. We were in contract at 356k but the buyer had 5 different inspections one being an unscrupulous mold company that said there was mold in a sunroom (which in all actuality was like testing a basement or garage as this was not an air conditioned space) The company used invasive air sampling and also poked over 350 holes throughout the residence with their moisture detector. Long story short, we had to take the home off the market to get a TDI mold remediation expert to refute the inaccurate report and wait for this company to make repairs to the damage they caused to the property.

By the time we got all of that ironed out the market had significantly slowed down and showings were few and far between. I went back to the bank and restructured the loan to be amortized over thirty years and was intending to hold for a rental for a couple of years. 

Thankfully another buyer came along and I don’t have to use that exit strategy. We are set to close in an hour and I couldn’t be happier to get this one off my books. 

As for acquiring the home it was actually listed on mls for 189k, I offered 185k the first day in the market and negotiated another 3k off during option period. As you may know Houston experienced significant flooding a year ago and this Home took on less than an inch of water in the back bedroom because of debris clogging up the French drains, no other homes flooded in this neighborhood or ever have for that matter. The two conclusions I can come to is the agent was using other discounted flood properties as comps and shouldn’t have done so or she was just inexperienced. I’ve actually picked up three mls properties this year that were steals and agents were not familiar with the particular neighborhoods and priced them significantly below market value.