First REIA Meeting in DFW

[Jeremy Peters]

Last night, I attended my first REIA meeting in Richardson. Overall it was pretty good. I'm planning on buying properties to hold and rent long term. Unfortunately, I didn't meet anyone whose primary strategy is buy and hold rentals. Flipping seemed to be the most common strategy. There were quite a few wholesalers in attendance. I was surprised how many investors are banking on rapid price appreciation though. DFW has marginally appreciated over the last 15 years, but somehow the environment has changed.

Personally, I think the very high property tax rates (~2.7%) will make long term appreciation materially greater than inflation difficult to achieve.

The best new tidbits of information I received last night are:

1. 1.  Develop a relationship with the following types of lawyers as an alternative source of leads: real estate, divorce, bankruptcy, probate, and tax.
2. 2.  Houses in DFW will probably need foundation work about every 10-15 years even if they have a "lifetime warranty" in some areas.
3. 3.  Real estate agents can provide a list of expired/cancelled listings of properties.
4. 4.  Use local builders for referrals for companies who will distribute and pick up bandit signs.  (I know Josh and Brandon are not fans of bandit signs.)
5. 5.  When buying rental property, a key decision is investing in cash flow generating property or price appreciation.

I hope someone finds this info helpful.