New Investor in Dallas

[Mark Giles]

To all Readers and Members of Bigger Pockets,

I hope this post finds you well. I am here to introduce myself to the BP community. My name is Mark Giles and I currently live in the Victory Park area of Dallas, Texas. I am currently an Asset Manager for a private equity firm that manages distressed asset portfolios on behalf of investors such as Goldman Sachs and TPG Captial. That is the extent of my "real estate" experience (ultimately none). Nonetheless, I am looking to build relationships with trusted real estate agents, contractors, and other investors. I will be exclusively flipping properties in all cash, from the purchase price to the rehab. Long term goals are to add rental properties to my portfolio that produce steady cash flow, while still maintaining the fix and flip aspect of my business. This being said, I am very interested in hearing back from all. 

Thanks,

Mark Giles

[Michael Lee]

Hello and welcome to BP!  Fix and Flipping is a good way to go.  It can be either a short term (Selling) or a long term (Rentals) Teuton on your money.  You should also do small aprtment complexes that earn enough money for you to hire a management company.  Usually 18 units will be enough afford a property management company.  The rent you collect will pay for a property management company. 

By the way, I am 60 years old and I am medically recovering and have not decided what to do.  My background is mostly construction but I have some real estate experience.  I held a real estate broker license for about 30 years.  It is no surprise that your typical customers are not in real estate.  Another thing I like about apartment complexes are the little work it takes of your time without outside time and you can keep working where you do and having something else going with a property management company taking care of your property with your guidance.

They (the apartments) are easier to add value to than houses.  They both have their pros and cons.  You will have more units under one roof and less competition.  Being a cash buyer will help you get more properties that are for sale.  That cash should help you get loans for higher values.  There is noting wrong with debt on real estate as long as it cash flows positively and you can keep a decent reserve that pays for capital expenses.

It is good to have a clause in your sales contract that allows you the time (usually 10 days) to do a detailed inspection and allows you to back out of the deal without a penalty that will hurt you too bad. Depending on your personal wealth it might be that you form some type of corporation or a LLC that will protect you personally with legal problems. You might have to get an Attoney and/or (a tax accountant) to advise you once you make up your mind what to do.

Stay as close to downtown as you can afford.  Whatever you decide to do, pick out the average in that neighberhood.  The better the neighberhood, the better your property will be when it comes time to sell. Learn how to be more focused on the things that are income productive.  Learn how you can spend your time offering on your prospective properties.  You live in a great city that can make you a living.  Do not try to do everything yourself.  Have a good local and experienced Team lined up to help you.

I was born and raised in Dallas and know it quite well.  Good luck to you!