All Forum Posts by: Norris Frazier

Thank you all for this wisdom! 

Finding another mentor is not so easy. I've been actively searching for another. So truly thank you all!

Crazy thing, I actually have one. Gentleman owns over 200 properties, but he believes in sharing very very limited words. i.e.. 1st property I went into option period with he said, "Get Out" & then walked away. So now I showed him this project, he said "Terrible numbers but you can fix them, so keep working". When I asked for more details he literally told me he is busy and trials and tribulation teach better.

Crazy thing is my Hard Money lender came from BP. His 1st offer was better but my seller threw a monkey wrench in when they called for a close date of Dec. 31st non-negotiable at the last minute back in came my HML. Numbers made more sense with a conventional loan not HML.

Following all this advice, I reached out to another HML who quoted me a better deal. Armed with that I went to my original HML and expressed my hesitancy and displeasure. He committed to providing a better deal.

Deal details, 

Home was selling for $138k Value $140K. 1200sq ft home on 7200 sq ft lot. Due to the foundational, roof and plumbing issues: I got it down and agreed on $116K - ARV $160K. In Houston, Texas - in an area that is slowly going through a gentrification process and the roof is under warranty period still.

Originally, I was to convert home to a duplex which would bring ARV to 285K-350K and CF to $600 monthly, but current assets do not support achieving this at this time so I have a Structural Engineer providing plans to repair foundation but also create a way to add extension in a years time for the duplex. Foundation plans in hand & extension plans are in the works.

I figure while I build up assets, via W2+, I will fix the SFH and lease it out for 1 year at a projected CF of $60 (low) - $120 (high) a month. Fears are once I open up this 65 year old home my rehab budget will be even worst then projected.

Bought it @ 15% discount but the foundation, plumbing, and Roof need help: after repair ARV is 15K profit. Plan to Buy-N-Hold, & let it appreciate.

But as a new investor even with Great Credit Hard $ Interest 13.49% and Origination Points at 4%... Needless to say cost of money is HORRIBLE! Looking forward to Refi. 

I am finding it is a dirty and grimy world in this business. Brandon and David you guys need to talk more about the F'd up side of Real Estate. These dirty people and dirty deals, permitting issues and dirty contractors. More bad then good it seems. Never thought I would have to turn on the "Street Me" in legitimate business. 

Its a resi on the south side of Houston. The idea is to convert to a duplex but the ARV does not seem to currently fit after considering $ on $, CR, GRM, and NIAF

Your assistance requested. Contacting you today for a quote.

Thank you Eliott, that would be wonderful. Are they located in Houston?

Moving Forward Now...

Hey guys, I am looking for a counter offer. Anyone know a good company in Houston that provides structural design plans w/ contractors, I am all ears: ready, able and willing. 

 Networking... Great post. How did this turn out for you?

Your expertise has not gone unnoticed. Thank you Nichole & Nick for this... Nichole I wish you left your contact info: