All Forum Posts by: Adriel Hsu

@Vijaianand Thirunageswaram I sent you a direct message on here.  It would be quicker to reach me on email, so please respond back with that.

Thanks

I've been flipping lots in Acres Homes and Settegast the past 6 months to developers and they are HOT. I've flipped 20 lots between those 2 areas in 2020 alone and inventory rarely lasts more than 30 days once I list on MLS.

@Vijaianand Thirunageswaram and @Mark Sewell message me if you are interested in lots in these areas so I can keep you in mind to have first look before they go MLS.  

@Robert Youngquist Let us know how it goes!  Like @Aaron Rowzee said, we are local investors in Beaumont and can try to answer any questions if you need us to!

@Chevy Goff when you say "After lots of research", was all that research on BiggerPockets? I will say this from my own experience. When I first started, I thought I wanted to get into BRRRR. Why? Because that method is promoted more than any other type of investing on BiggerPockets.

It's a great, repeatable method, don't get me wrong, but you have to look at what your goals were.  Doing BRRRRs and having no money into the deals is great, but your leverage will be high to keep you risk free with no money in and therefore your cash flow will be lower.

After doing my very first deal at 24 as a BRRRR, I realized it was way too slow for my goals. After properly budgeting for CAPEX and Vacancy (which many people don't) I realized an extra $150 a month was not worth the time.

Seeing you are in Austin, your price point isn't the cheapest and your property taxes are higher than most other Texas counties.  It'll be very hard to find a low enough price point to be little money out of pocket and achieve cash flow that pencils. That being said, I do believe Austin is the best long-term (25 years+) hold in the US.

It's a sure and steady way if you buy right, but it will shorten your retirement from 65 to 45-50 depending on how fast you go.  I wanted something quicker personally.  I realized all the wealthy people make big money in an active business and dump into rental properties for safety.

I had a local mentor already doing flips and doing them in  high volume. I went all-in on flipping and wholesaling and made some good money.  I always knew large multi-family was the end goal, but didn't get into it until 2018.  

Now, I'm closing on an apartment deal next month and going to walk one today where we are best and final and if these go through, I might be ready to quit the day job by the end of this year at 28. 

All that was to say, check what your goals are and what strategy gets you where you want to go.  Find a local mentor and do what they are doing successfully.  BP is great but a local mentor is irreplaceable due to their connections and local knowledge.  I couldnt find a local BRRRR mentor, but I found a flipping/wholesaling mentor."

Best of luck.

Stop trying to win them over and find new friends with the same motivation and mindset as you or where you want to be.  You become the average of the 5 people you spend the most time around.  Change up your circle. Doesn't mean completely cut off your friends and family, but limit them.  

Now at 28, my circle is all like-minded, successful investors.  I rarely interact socially with anyone thats not in real estate or some type of entrepeneurial hustle.  I still love my old high school friends, but I don't even talk to 99% of them anymore, but if I was to go home, I know we were like brothers and things will just pick up as they were when we hang out.

On top of what others have pointed out, what type of asset class is this and what location?  If they are giving 6% preferred on a class A asset in an urban core with population and job growth, that's a great deal.  If it's a C-class value add in a neighborhood with poor schools and higher crim,e I'd pass.  Don't get caught up with promises of high returns, analyze the deal and location and sponsor yourself first.  A lower return on a safe and growing area with a sponsor with an excellent track record may be better than a deal in a C- area with a newer sponsor.

After a week at the corporate job, she'll realize that's not what she wants to do the next 40 years and she'll be motivated.

It's a good market, however I think Dallas and Austin are more lucrative than Houston in terms of rent growth, job growth, and population growth. Since I am near Houston though, I will still continue invest in my "backyard" though

For something that small, anything under 5% with a 25 yr AM and a 5 year balloon will be solid.  1% origniation fee.  

You need to remember a CAP rate is the return without any leverage. So a 5% CAP would be a 5% return if you purchased it outright with cash. Now factor in debt service, your returns easily jump up to 8-12%. Also, you are looking in a market that doesn't cash flow well (for the most part). I know plenty of people doing well with apartments in Orlando, Phoenix, Texas etc. Hitting well over 15% IRR on 2-3 year holds