All Forum Posts by: Adriel Hsu

@Wale Lawal I just wholesaled one in Katy by the HEB on S Mason Rd and Highland Knolls Dr. I sold it to my buyer for $180k, It was basically rent ready, seller already had upgraded almost everything, $10-12k rehab and ARV $240k

There were tons of interest on that one but it wouldnt have met your criteria. Those markets are just too hot.  Unless you have a very good and pre-existing relationship with a wholesaler and have done multiple deals with them and are a VIP buyer.  Otherwise in those areas, going to facebook and blasting it will get them a higher buyer.

That leads you to do your own marketing.  Stop asking for wholesalers and brokers, and start directly marketing those targeted areas with your own funds.  That's honestly your most likely option to get a deal that meets those criteria

I'm 27 years old, got started 3.5 years ago at the start of 2016 when I just turned 24.  

- It was difficult to land that first deal. Took 6 months of persistence.  Lots of lessons learned, but the first deal is the most important as that eliminates a lot of mental hurdles of being able to actual go through the steps and do a deal.

- Instagram, facebook, linkedin in that order.  Always be posting and showing what you do.  I've made so many connections on social media, partnered on deals with people I never met in real life, only via instagram or facebook, and bought and sold deals on purely social media as well.  

- Younger people are moving to where job growth is and large cities.  Phoenix, Austin, Charlotte/Raleigh, Utah, etc.

- I wholesale and flip and buy and hold multifamily, but I'm also invested in hotels and currently invested in a food hall being built in downtown Nashville

@Thomas Garza

The market determines the price and right now rehabbers and buy and hold investors are paying more.

Everyone has different rehab costs, your $30k rehab will cost $20k to someone else.

You have $12k in hard money lending fees, they have a private lender or their own funds.

In Houston right now, re-fi appraisals are coming in higher than comps, so buy and hold investors can pay more.

I wholesale in Houston and people are paying more in neighborhoods they want. I think a neighborhood is the hood, someone else sees it as a cash cow and pays more.

It’s supply and demand.

Your best off doing your own marketing if you aren’t able to get on the VIP list for wholesalers.

@Graham Northrup congrats! My first deal was also a BRRR and I don't even know if it could be called a base hit. What's important is the experience and overcoming the mental blocks of thinking it's tough or scary to do a deal. Hopefully this propels you forward!

@Sippy Hira as others have said, job and population growth are key.

Check out quarterly reports from Yardi Matrix for some market insight in terms of where the rent and population growth trends are

I walked a probate lead and the house was in excellent condition, but they hadn't finished cleaning out their parents stuff yet.  I walked into the dining room and immediately saw an original Leroy Neimann serigraph  of "The Catch" of Dwight Clark. Only 250 were made.  Probably worth around $6-7k.  

I know nothing of art, but my parents had a Leroy Neimann painting in our living room growing up so I recognize his work.

The vast majority of my leads come from Facebook.  Not just Facebook Marketplace, but join your local areas facebook groups.  I am in 10 groups (3-4 generic groups "Items For Sale in southeast Texas" or "Homes for rent in Southeast Texas" "Homes for sale/rent in Southeast Texas" etc etc).  You'll be surprised at how many groups there are, each with 10,000-150,000 members.  

A solid C class apartment in Houston is going for ~6.5 CAP at the moment.

@Begona Miron  As others have said, those numbers are real tight on that Spring Branch rental.  There is a bit of appreciation play in that neighborhood though, depends on your goals.

How I would view that deal is:

Rent: $2,000

Vacancy: $200

Mortage (Taxes & Insurance): $1,700

Repairs: $200

Property Mgmt: $200

CAPEX/Reserves: $100

That would leave you -$400 a month.

I prefer off-market to anything listed.  Deals do pop up once in awhile but they are pending same day.  I've never bought a single property on the market.  It's all through my own marketing direct with sellers or through a wholesaler.

If you don't have the time or money to do your own marketing, join the 3-4 major real estate investor houston facebook groups. Plenty of wholesalers there with deals. I wholesale in Houston, no current deals at the moment however. But message me and I can keep you in the loop when any pop up

@Saud Alduweesh If you are out of country, you might be better off investing that $200,000 in several multifamily syndications in the Houston area. 

It will be completely passive for you and your returns would be decent still. 8% preferred with 14-18% IRR after sale or refinance.

Even if you bought a single family with property manager, you still have to manage the manager.