Dallas/Fort Worth REI. What happened?

[Jason Coyle]

So, what happened to REI in D/FW? It seems like this market is gaining speed in the wrong direction. There's just not many deals out there, if any, even with minimal margins for investors?

Don't get me wrong, there's tons of wholesalers that will send you more packets on potential deals than anyone wants to read,  but most appear to have intentionally fictitious numbers. So where are all the actual deals at?

Are the assignment fees sucking the profit out of everything, are the sellers standing their ground for higher offers, what do you think?

I know the recent tax increases for our area was quite a gut punch for buy and hold strategies and obviously impact REI in general, but things have seemed to be in a steady decline for the past year. And now, here we are.

I'm just a contractor but do a ton of pre acquisition analysis for investors. Lately, I haven't seen anything come through at all that has anything left for the investor, even with minimal rehabs. I have had to advise a hard pass on almost everything that has come through in the recent months. Any local REI folks out there having the same experiences?

Would love some feedback, thanks in advance!

[Adam Wright]

I started noticing something last month so I did a little digging. DFW is one of two metro areas that has almost all the IBuyer companies working the market. With this in mind, I did a quick check in the MLS on how many properties OpenDoor has sold over the last year. They sold around 700 properties between six months and 12 months ago. The last six months they have sold over 1300. My very unscientific conclusion is that these IBuyer companies are moving on the market share for DFW REI.

I spoke to my wife about it and she pointed out how easy it is to sell to these companies when you are needing to unload a property.   The ease of the process might be leading many sellers to go to them versus investors.  

I know that I have not seen much lately for my clients.  It seems to be the slowest it has been in awhile.  

It will come back around.