All Forum Posts by: Will Stafford

I’d say very uncommon. You’re also going to pay a large premium for being month to month compared to similar units on standard leases. 

Rehab costs are out of control right now. For flooded sqftage, budget $45/ft minimum for basic rent ready finishes, more like $60/ft for flip grade. Nonflooded sqftage budget about $5/ft above normal.  I got a bid last week from a supposedly investor friendly contractor for over $100/ft. It’s nuts. 

Icon is great on the lending side for RE, but their banking products are terrible. We use Frost as our main banking account, and keep a dummy account open at Icon to keep their loan officers happy. 

@Jason Hirko

Looking at the location, I'm guessing this property has flooded multiple times in the past few years? I think you're going to have a hard time finding anyone to finance it, even hard money won't touch multiple flood properties, usually. Be very careful with your plan if you find the money, I think you're going to have a hard time selling this one. Even if it were a first time flood, our numbers are way off. 

Hi @Rachel Lang, and welcome! A couple of tips on buying flooded homes: 1) assume that the ARV post-flood will be at least 10% lower than pre-flood. 2) Only buy houses that flooded for the first time in Harvey. If a house has flooded more than once, only buy it for (less than) lot value in a good neighborhood for new construction. 3) Be VERY conservative with rehab estimates. There is no chance you rehab the flooded level of a home for less than $40/sqft right now. Even second floors will be higher than normal because of labor demand.

Bottom line, flood or no flood, all that matters is if the numbers work. A deal is a deal! Good luck. 

Door knocking, leave door hangers. Repeat as often as possible until a house is sold or construction starts. 

Another vote for Patten, investors are their bread and butter. 

@Brian Adams Congrats on a great deal! And congrats on remaining professional in the face of some small minded meanness. That is a hard discipline to master. Look forward to hearing about the next one!

@Daniel J. then it wasn’t a good deal and you should be glad to be able to walk away during the diligence period. Seriously, if you have a good deal and drop it in an experienced syndicators lap and they get a nice percentage of a good deal without lifting a finger to find it, who is going to say no to that?