All Forum Posts by: Austin Hughes

Yeah I agree with the guys above talking about getting a promissory note IF you're going to let your family member keep it as you renovate. BUT - what happens if they decide not to sell after you remodel it? I've seen this happen numerous times. Especially since they're family, that could create a hole in your cash that can't be replaced for a long time. . . I would HIGHLY recommend just buying it from them. Then they're out of the picture and you can make mistakes on your own dime/time and not affect the family dynamic.

0 Votes

Originally posted by @Sungu Funhiro:

@Austin Hughes

Minnix has been managing mine. You probably know they are in Lubbock as well.

Looking for others and compare rates and quality.

Yes I know them... I just see too many run down properties around town that they're managing.

0 Votes

If that was your primary residence for at least 2 years, you can sell it and pay zero capital gains tax, AND get all the money out (without having to 1031 exchange it into another property.)

0 Votes

It's different market to market. For instance, in Texas, it's popular to put texture on the wall. But in some other states, it's not something they do. Here locally in my market there's a "parade of homes" that people get to tour a bunch of new construction. We refresh our scope of work template every year once we go see all the new trends at the parade of homes.

0 Votes

Here's what we do:
1. Conversation about how we do business/operate
2. Call 3 references
3. See their quality of work in pictures/in person
4. Get copy of insurance (if applicable)
5. Get license # (if licensed)
6. Have them submit scope of work
7. Have them submit timeline
8. Have W-9 Filled out before job starts
9. Sign contract/ go over all terms (again)

2 Votes

The current problem with doing that aggressive plan in New York is that closings are taking a LONG time right now. Multiple months. I know some players in the market if you want to meet people who can help make things happen.

1 Vote

Upstate New York, New York

Originally posted by @Matt Moreland:

Hey @Austin Hughes! Hope you're doing well man.

A lot of the portfolios that get listed in Lubbock are listed way over market price and not marketed effectively which is counterintuitive if the point is to get it sold and/or 1031 into something else. You are going to get some hits from listing it on the MLS, sure, but most of the serious buyers on a decent sized portfolio are going to be direct contacts of investment agents or other investors you know yourself, as most buyers perusing the MLS at any given moment are not looking to buy 10 - 20 single family houses in one go.

Buyer retention is huge. You gotta keep eyes on the listing and get them through the numbers before anyone will be submitting offers. Most packages in our market are listed with little to no property information and few if any photos and financials. Putting together a high quality offering memorandum just like you would for a multifamily property and outlining the package as a singular investment, along with historical financials that back up your pricing goes a long way in terms of retention of serious buyers and moving them into the stage where they are interested in submitting serious offers. It sets your listing apart from every other package of properties that is pushed out too quickly with the assumption that it will sell with little to no supporting information.

So overall, pricing it to sell as a package (not as individual properties added together and priced at a premium), delivering it directly to investors in addition to listing services, and providing high quality information on the property are some of the biggest levers you can pull to attract serious offers and not see it sit for months with no activity. Shoot me a text/call if you wanna visit some more about it, would be great to chat and catch up on what you've been up to!

That's probably very true. Let's talk!

1 Vote

Originally posted by @Mason Moreland:

I'd check around with some of the realtors in Lubbock that have investors lists looking for portfolios.

Look into the KW MVP team there, they specialize in investment RE and have great buyer lists. Full disclosure, Matt is my brother.

@Matt Moreland and @Brittany Warner and Lisa Victor

He's a good guy. I would've bet you were family based on the name haha.

1 Vote

Anyone experienced selling off a portfolio of rentals? Wondering how you marketed, who you sought out, how you worked with realtors, etc.

Thanks in Advance! I'm in the Lubbock, TX Market.

0 Votes

I don't know your area, but $121K in costs on a $130K ARV seems like a surefire way to not make any money.

0 Votes

All Forum Posts by: Austin Hughes

Austin Hughes has started 68 posts and replied 440 times.

Post: Paying for rehab cost. How to get money back at closing?

Post: Property Manager in Midland/Odessa

Post: Forced Appreciation Lost Depreciation.... BRRRR

Post: What’s in style?? Vanities/Tiles

Post: How to Qualify a GC? Checklist or anything?

Post: Aggressive Rentals Possible?

Post: Best Way to Sell Rental Portfolio

Post: Best Way to Sell Rental Portfolio

Post: Best Way to Sell Rental Portfolio

Post: [Calc Review] Help me analyze this deal