All Forum Posts by: Adam Chudy

@Tom Cooper his comments were casual and your replies all read as accusatory and confrontational. No one is going out and buying houses off him saying it's looking up and he readily says all he was referencing were Sharon's posts and isn't an expert on the space. 

We're all friends here. Let's get along and hope Houston is going to have a good 2017.

@Michael Ran I would love to hear / see the details of that deal. If you or he doesn't want to share on BP, feel free to shoot me an email or direct message. 

@Kevin Wood you google crack spreads and you can find it in lots of places. You'll probably have to do some reading / learning though to get context for what your looking at. 

@Kevin Wood @Sean Xin I agree with your general comments on Houston but the downstream statements are a bit oversimplified. The refiners benefit based on the crack spread which is the margin between price of a barrel of oil and price they can sell the refined products that come out of that barrel (gasoline, diesel, jet fuel, etc...). 

Refiners often benefit from a drop in crude prices because there's frequently a lag between a drop in crude price and the drop in the price of outputs. Meaning the price at the gas pump doesn't move as quick as the price per barrel. However this relationship doesn't always hold and if a downturn lasts very long, the 2 will equal out and the benefit disappears. The gasoline demand is also a key component. 

If you go check out the refiners in 2016 they aren't doing particularly well as crack spreads have tightened significantly. 

I've ended up taking a bit of a different path. Most of my available funds for real estate went into an e-commerce business. This probably isn't the forum to discuss it in any detail, but it really took off, requiring more cash put into the business, and we're doing about $30k/month revenue. Once the cash flow in that business turns from red to green and we start taking distributions, those funds may flow back into real estate. 

As someone who just likes to follow Houston real estate, it seems like prices are coming way down on the very high end of the market but not moving much on the low end (within 610). As to the mult-family market, what would change? It still just largely doesn't exist in the 2-4 unit range. I'm not qualified to speak to apartment building market.

Hey Michael, 

I'm in Houston. I'd be interested in hearing more. Shoot me a DM and I'll send you my email address.

Adam

What price range and area are your listings? Are they on the sites you mentioned? 

I'm in Houston and this is an area that interests me.

Houston is about the same. 

What's your price range?

Super open to fraud as well. Make the money on the fees, pick somebody with an understanding they sell the house and then send you your cut.