All Forum Posts by: Austin Hughes

My first house was an absolute nightmare haha. It's the only property I own in a rough neighborhood still to this day. But it got the ball rolling & built up momentum for me. Do a deal bub! :)

Structural Engineer is good way to know exact scope of work. You can give that exact scope to foundation companies & get quotes. Figure out how much money it'll take. If it is still too much for you to come up with out of pocket, then make the house hack a 2-step financing process.   First step, use hard money to buy & renovate. Second step, refi (and house hack.)

This is a great question to be asking. And you DO have to feel you're truly helping them in order for you to be sold out on your own company's value.

Part of my "script" is educating them on their other options.. list with realtor, renovate it themselves, rent out, etc.  In that conversation, I'm opening up saying "Look, I am not your only option. I'm not even sure I'm your best option. Have you considered ___(other options)______?"   Listening to them here & understanding WHY they aren't going for one of the other areas will help you too see exactly how you can help them. They know there are other options. They called you for a reason. Only about 2-3% of the time do they reply with "Wow I didn't think about those other options." They've already thought them through & there's a reason they don't want to do them.      So I believe in being transparent, educating on their options, so that you know if they STILL want to sell to you after that convo, you are truly benefitting them.

I agree with @Taylor L.
You have to base everything off of comps. Find properties nearby with the same bed/bath & generally same sqft & amenities.  See what they rent for & see if there's a difference between nicer & less nice ones. See how much value you could add by making it one of the nice ones & run analysis based on that. 

Lubbock, TX is a great market. I've got 95 units. I'm actually selling some at around a 1.1%-1.2% Rent to cost.
Economy here is solid. Real estate didn't go down in value in the 2008 crash.

A friend of mine is buying a business in Florida & wanting me to look at putting together a group to buy the real estate & leaseback. (He's never been interested in owning real estate, and in the dozen companies he owns, he just leases the buildings.)

I'd love to hear from anyone in the commercial space and let me know what kind of numbers are "normal" and what you look for. I've bought  around 100+ single family & small multifamily properties, so I'm not a noob in that, but in commercial... I'm very green. So help me with your input. I'm trying to figure out if this would be a worthy pursuit. 

So in short, the property is mid-south Florida. Has a good amount of land, some large facilities on it. They're wanting to sell for $8MM. My friend is buying the business separately. I think a mortgage would be around $45K/month if someone financed the whole thing. and he is ready to do a NNN lease for $75K/month where there'd be no other expenses incurred by the property owner. So $30K/mo or $360K/yr cash flow after paying the mortgage on an investment like this... To me it seems pretty good, but I'm not sure what commercial experts would say... Would something like this be worth your time?

Will do @Austin Neal!

I own a small RV Park in West Odessa, TX. I'm looking for a PM who can manage that and any other investments I buy there. 

I have a large portfolio in Lubbock, and am looking at buying some companies in Midland/Odessa right now. So I'll probably expand Thunder Sun Homes down there too in the coming year. Looking for good connections. PM's, realtors, or investors.

Whatever you do, the MOST important part is to make sure the numbers you are basing your decisions off of are accurate. Most importantly ARV. Lots of strategies will work if your ARV is accurate, and lots of strategies will lose money if it's inaccurate.
Happy to help if you need it.

Hey BP'ers!  I've realized a lot of people follow me on here, and I haven't posted in forever!! I tell people that the less you see on social media, the more someone is probably doing in real life. That's been the case this January. Facebook and BP haven't seen much from Thunder Sun Homes, and I apologize!

We got off to a great start this year. My company re-organized, and I am now able to devote just a little bit more time to acquisitions. I went from maybe 1-2 hours per week up to around 10 hours per week right now.    (FYI, I've been the lone ranger in acquisitions in January. No other help.)

We started January doing 6 real estate acquisitions, (some for flips, some for rentals) with a total of 13 units! It's a great way to start off the year.      My one piece of advice: figure out what the most important role is in your business and protect it at all costs.     Ours happens to be "getting in front of motivated sellers" ... so with the changes in the business, we are protecting that vital role more now, and will continue to make sure that keeping that role thriving is the #1 priority.    Figure out what your #1 priority is in your business (it might be calling 50 people/day. It might be sending 1000 letters/week. It might be going to the auction every month..) and make sure nothing else gets in the way of you/team members doing that one priority.

HAVE A GREAT 2020!