All Forum Posts by: Aref B.
Aref B. has started 2 posts and replied 8 times.
Post: Lakehouse flip after Hurricane Harvey

- Developer
- Austin, TX
- Posts 10
- Votes 5
If the entire neighbourhood is rebuilding don't worry about it. Unless it's an area that has a history of flooding you shouldn't worry. If you're the first to rebuild you will definitely see a hit on resale. If you're rebuilding along with others I'd take a swing.
Make sure you check on any new requirements for rebuilding after a flood. Some areas that flood often have new rules in there that may require you to build higher.
Originally posted by @Jordan Rahman:
Hey @Aref B., I'm looking at a similar deal and would appreciate your input.
It's a SFR in Sand Springs, OK. It was affected by the big flood here recently (May/June in OK,AR). House has been gutted, had remediation, and the owner has contacted me about purchasing it. The majority of the neighborhood was affected, and this would be 1 of the 1st renovations for that neighborhood. FEMA map is effective 8/2009 and shows property has 0.2% chance of annual flood.
Purchase price: $50,000
Estimated Renovations: $45,000
ARV(before flood): $153,000
I AM nervous to rebuild. The house was very well constructed and taken care of with many recent updates (electrical is in working order, comm system from shed to house, the lot from street to backyard is about 300 feet, newer huge HVAC unit). All systems are operational except circuits/plates below 27".
I'm nervous because the flood JUST happened and the damage is visible throughout the neighborhood. I think after renovations, the house could be worth MORE than $153k, but just not sure how it will be viewed by prospective buyers.
Post: Lakehouse flip after Hurricane Harvey

- Developer
- Austin, TX
- Posts 10
- Votes 5
Post: Lakehouse flip after Hurricane Harvey

- Developer
- Austin, TX
- Posts 10
- Votes 5
Investment Info:
Single-family residence fix & flip investment in Kingwood.
Purchase price: $130,000
Cash invested: $102,000
Sale price: $379,000
Complete gut/remediation/renovation of lakefront/golf course property in Kingwood, TX. Purchased after Hurricane Harvey and rehabbed and flipped. Took a big risk as it was the first house renovated in that neighborhood and everyone was scared to rebuild.
What made you interested in investing in this type of deal?
the lot was amazing and the view was sublime
How did you find this deal and how did you negotiate it?
referral from a deal that didn't workout
How did you finance this deal?
Paid Cash
How did you add value to the deal?
compelete remodel, replaced electrical, added in PEX plumbing, full remodel inside, knocked out walls, changed up the showers and made an amazing kitchen with top of the line appliances I got at 50% off.
What was the outcome?
I made money
Lessons learned? Challenges?
I learned how to remediate a house myself and how to get a mold certificate

Post: Buying house with option for seller buy back by February 2019

- Developer
- Austin, TX
- Posts 10
- Votes 5
I am looking to purchase an investment property with a good tenant currently in place. Purchase price is $56,000 with $110,000 ARV. The owner is selling the house to get funds to make an investment in a business. He is under the impression the business will generate enough cash within 3 months or less to purchase back the house. Here are the terms we have agreed to I am just trying to figure out how to structure this in writing if I can do this right and protect myself as well as the interests of the seller. I would appreciate any suggestions on how to do this.
Here is the deal I have worked out with the seller.
I will pay $56,000 plus all closing costs. The lease with the tenant ends February 1st 2020. The seller will have up until February 1st 2020 to purchase back the house under these terms and conditions.
Seller must pay me $56,000 + All Closing costs + Any repairs made on the house up to the date of re-purchase + $20,000 Profit and can at that point buy back the house. He can do it anytime before February 1st 2020. After February 1st 2020 the seller would lose all rights to purchase back the house under those terms and conditions.
I was thinking to just put some similar language in the addendum portion of the contract. Would this suffice or should I hire an attorney to draw up some paperwork? I feel this is a win-win deal for me and the seller. If he doesn't buy the house back I keep a great rental if he does I make $20,000 in profit which i'm fine with.
Looking forward to the responses
Post: Probate leads? How to find them?

- Developer
- Austin, TX
- Posts 10
- Votes 5
Post: Texas - Tenants Guest won't leave

- Developer
- Austin, TX
- Posts 10
- Votes 5
Post: What was your worst home renovation fail!?!

- Developer
- Austin, TX
- Posts 10
- Votes 5
Originally posted by @Stephen Herbert:
I am currently 1 month past due and $20k over budget on my first flip - it's been a trying and stressful period, but at this point, me and my partners are just eager to get out of the deal. Managing a flip with a crew from 2,500 miles away (SF to Cincinnati) is not for the feint of heart. It takes constant follow up, diligence and overall intestinal fortitude, let alone a lot of faith in a stranger with your Home Depot account.
The numbers are still in flux, as we're not done yet, but what was a $80k purchase with a $65k rehab has quickly swelled to a $85k rehab. What advice do the others in the forum have for out-of-state investors when it comes to managing the daily renovation processes? That's been the hardest part for me.
We will still make money, so it's not a complete fail (and perhaps a misdirected post) but I'm curious what others have done in this situation. The Home Depot costs are piling up, and the completion date is being pushed out. What are your thoughts?
Stephen do you have any details on how the rehab went so much over budget? Was it materials or labor? I am like you doing rehabs from remote locations. My advise is to have someone you pay locally that can check in on rehabs for you and send pictures. I also would not do one on a property sight unseen. Something else is also to build a team, don't use all the subs that a contractor recommend have your own you test out so you have more control in case something goes wrong and you need to boot someone. I personally am about 400 miles away but I make the drive a couple times a month right now until I can get a team going. I would recommend installing a nest camera or two around the house for two reasons. For one to keep an eye on the labor make sure they are actually working on the job and not showing up an hour or two a day and leaving for other jobs. Also to make sure your materials are not walking away. If youre remote chances are you could have a dishonest contractor that is pocketing materials. My rule for rehabs have always been that I get quoted labor only costs and then I buy materials as needed in stages depending on the job. This way I can track my costs, keep contractors from stealing materials, and finally get points on my credit card for free vacations.
Aref Barhamand
Post: New & Discouraged - Austin, Texas

- Developer
- Austin, TX
- Posts 10
- Votes 5
Robert,
Don't be discouraged. Find someone who you can help out initially that is knowledgeable. They will help mentor you and lead you the right way. Make contacts at the investor underground meeting. And lastly belive in yourself. If Austin doesn't work for you there are areas within driving distance that you can do deals in. Try Georgetown and round rock and San Marcos. All grata areas for buy and hold a and flips.