All Forum Posts by: Austin Hughes

@Manuel Perez Tech Terrace Real Estate is the first that came to mind as a good fit. That is only if you're going to rehab the properties to be in the top 5% of options for renters. If so, they consistently get a premium for their rentals.

Otherwise, HouseChaser seems to have lots of rentals in that area, and they have great integrity. I know the owners of both companies. PM me for more info.

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Hey Manuel, I know of a few good ones based on the property type and location.

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Originally posted by @Juhi Jain:

Hi,

This is my first post. Looking to invest in Lubbock, TX. My understanding is that there is enough housing for the students and there is more of a demand for duplexes and Single Family rentals.

My questions are:

1) Is it better to buy a SF home or a Duplex? I believe the Cash flow is better on a duplex than on a SF home. There seems to be a decent supply of duplexes on the market. Is there an oversupply or just that the supply is there to meet the growing demand.

2) Between the two school district which is a better bet - Frenship or Cooper?

3) Between Foxridge and Bushland communities which is a better bet in terms of ease of renting and better cash flow.

These deductions are solely based on my research online. I may be completely wrong in my deductions. I would greatly appreciate some inputs.

Thanks,

Juhi

Our city had the greatest rental depreciation in the entire united states in 2017. :)

People from out of area speculating on Texas Tech & providing WAY too much student housing caused this & trickled down to all rentals. Demand should be filled within the next 4-5 years, I'd say. If you're on top of your properties, it isn't such a big deal, but the mom and pop landlords who just put signs out front and hoped for phone calls found it near impossible to rent their properties.

I'm still buying aggressively, so don't be discouraged. I would say, from my experience, there are more good SFR rental deals than there are duplex rental deals.

Frenship and Cooper are both desirable, but I do believe Cooper has taken the front position. Either way, you won't go wrong with family demand in these districts.

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Hey @Manuel Perez I've got lots of properties here, and although I only manage my own and not for others, I'm happy to give you my opinion on a management company if you are seriously considering going with them.

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To update everyone on the thread: I chose to take a hybrid approach, and gave them 1 week free, and said if they have to extend past that, they'll pay $400 to cover some of my closing costs. They happily agreed. They took 10 days to close, and they initiated the amendment to pay the extra $400.

It seems when it's written into the contract, it is less emotional. I'm going to start putting this term in all of my contracts, while still being fair when it comes to "acts of God" haha.

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Originally posted by @Jim Walters:

Definitely not being a jerk to ask. This type of communication happens all the time in real estate deals. You have a legitimate concern. Your not threatening the deal. Your just asking for fairness.
I have a friend I helped mentor buying properties. It’s a case were the student became the teacher. She always asks for some type of compensation if a deal is delayed by the other party. And she almost always gets it without fail.
Everyone is saying don’t blow a deal over $400. When you ask the other party to pay this, they may agree using the same principle of not blowing up a deal over $400.
If you do enough deals, and you always let these small things go, they add up. If you do 10 deals that are like this and you don’t say anything out fear of being a jerk, you are now down $4000.
One rule I use is were I put myself in the other persons situation and decide if I would accept the request. Being cheap, I would definitely push back, but I would not jeopardize the deal over $400 either.
People say $400 is not a lot of money in this deal. I call BS. Very successful people in real estate are shrewd. And none of them would be afraid to ask for the other party to pick up an expense THEY caused.

I love your thoughts on this. I always put myself in their shoes too, and I guess it wouldn't bother me, because I was the one who chose to go on vacation without getting my paperwork done! Lol

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Originally posted by @Nancy P.:

We were on the other end of this just a week ago. My husband completely spaced out selling investments and moving money in time for the closing (super busy at W-2 job). And I never asked because he's never forgotten before. Had to close 8 days later. Seller immediately said "Taxes, HOA dues are yours from May 3rd". (original closing date). Never occurred to us to argue as it really was our stupid error. Certainly can't see how that would have given us the right to walk away from the deal.

I guess you guys see it from the logical standpoint. :)

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Originally posted by @Brandon L.:

@Austin Hughes what is "not having their ducks in a row" specifically?

They decided to go on an extended vacation and forgot to get their power of attorney taken care of. So now I'm waiting on them to finish their mojitos and come back to town to close. -___- haha

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Originally posted by @Jay Hinrichs:

Originally posted by @Russell Brazil:

Originally posted by @Chris T.:

This is where I feel real estate agents add value in a real estate transaction.

You were not happy about the delay, and expressed that to your agent. Your agent did not go back to the buyer due to the risk/reward. Perhaps he could have communicated to you in a different way.

I would drop bringing up the $400 extra holding costs now. But if they give you issues on the final walk through, that would be your card not to give in anything.

This happened to me as a seller. Our negotiation was mostly one sided in the buyer's favor. We threatened to walk away, and well the buyer called our bluff. We had little interest on the MLS, hence we don't have much leverage.

This continued all the way to the final walk through, when the buyer asked for a $100 credit for bricks under the porch. (not part of the inspection report as well) Naturally, we were pissed but both agents split the cost to push this through.

If I were to deal with the buyer directly, this transaction would have been lost.

Chris brings up a great point here. I think the actual true reason agents exist is to add liquidity to the market. As he points out if he had to deal with that buyer directly, the deal dies. Agents insert themselves in between to make things happen because for whatever reason 2 reasonable individuals become completely unreasonable when trying to buy/sell a property from one another.

if this was a major issue it should be addressed in the original counter offer offer stage. IE I agree to this close date but if the buyer can't close because of no fault of seller.. penalty will be 50 a day... all the auction companies do this.

I should add this in to all my contracts so it's not me being mean, it's the agreement we both made.

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Originally posted by @Account Closed:

@Austin Hughes I'd consider asking for additional non-refundable EMD only if it was their fault and not the lender's. Keep in mind, asking for additional $400 can be substantial for a buyer. I'd rather ask them politely to deposit additional non refundable EMD to have reassurance that they will indeed be closing.

This is a good proposition to add to the mix. I'm thinking, "Additional earnest money just to show good faith, and I'll extend 8 days. If you can't close in 8 days and want to extend, additional price on top."

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All Forum Posts by: Austin Hughes

Austin Hughes has started 68 posts and replied 440 times.

Post: In need of a Property Manager - Lubbock, TX

Post: In need of a Property Manager - Lubbock, TX

Post: Investing in Lubbock, TX

Post: In need of a Property Manager - Lubbock, TX

Post: Am I a Jerk for Asking Buyers to do this?

Post: Am I a Jerk for Asking Buyers to do this?

Post: Am I a Jerk for Asking Buyers to do this?

Post: Am I a Jerk for Asking Buyers to do this?

Post: Am I a Jerk for Asking Buyers to do this?

Post: Am I a Jerk for Asking Buyers to do this?