Houston Recovery Fund – November Update
In the six short weeks since Jarrod and I returned from our first trip to Houston, we are excited to share how much we have accomplished on behalf of the Fund. Key highlights below.
Acquisition Running on All Cylinders. 6 Houses Closed and Another 10 in Escrow!
As of November 5, we have analyzed more than 300 potential leads, made offers on over 100 flooded houses, secured purchase agreements for 16 houses, and have already closed escrow on 6 houses. The six houses the Fund already owns are:
- 10530 Jaycreek, Houston
- 5905 Ariel St, Houston
- 5507 Dawnridge Dr, Houston
- 6035 McKnight St, Houston
- 12916 Kingsbridge Lane, Houston
- 702 Olde Oaks, Dickinson
Jarrod Whips Construction Into Shape
Amidst the turmoil that is the Houston construction market, with local labor charging outrageous prices or just plain not showing up, Jarrod made scores of phone calls and was able to corral a seasoned team foreman with whom Fund principals have worked previously and 18 skilled and experienced laborers. All but four of these guys were from out of area, so Jarrod then organized all their transportation to Houston. To economize, most of the crew stays in the houses we are working on. We are also replacing a few guys each week as networking provides more labor at increasingly competitive pricing. This labor supply allows Fund management to control costs in a way that is unique in Houston and offers the Fund a massive competitive advantage against our competition
Fund Raising Going Well
Thanks to all of you, we have raised about Three Million Dollars to date. This will fund all of the deals we have in escrow. Happily, we continue to find more heavily discounted houses every week. Jarrod and I are talking to several people and institutions who are considering major additional investments that would more than double our available capital. In meantime, if you know someone looking for a promising investment, please introduce us!
Crews Drywall Entire House in Single Day
Flush with labor from Jarrod’s hard work described above, we put the team to work. Soon after we closed escrow on 5507 Dawnridge in Houston, our foreman had the entire crew cut and hang all of the drywall for a house measuring 2458 square feet in a single day. In traditional home construction, this job would take several days if not a week or more. At the end of this 18-hour day, the team was treated to chicken wings and beer for a job well done.
Stay Tuned – we have nearly finished rehabilitation of our first house (702 Olde Oaks), and we are considering putting it on the market for sale instead of renting it. Watch for the Fund’s next newsletter update to see what happens!