All Forum Posts by: Bill Crider

I am also a buy and hold investor, and also in central Texas. I agree with much of what you say, but totally disagree about schools. Buying in good school districts is essential. Rents are higher in good districts compared to bad. The quality of tenants, speed of re-rental, length of tenant stay and tenant care of the home are all higher in good school districts. Many of my tenants move in when their kids are small and stay till they graduate high school. That is primarily because of the excellent school districts and the good relationships I establish with them. 

Austin is a terrible place. New York, Chicago, Miami and Houston are much nicer. You should move one of those places. :-)

Hi, Tyler. I have been investing in Single Family Homes in Georgetown TX for 25 years. My family has lived here since the 1840's. There are several good MeetUps. Poem Turner hosts the Georgetown Real Estate Investor's MeetUp the second Thursday of each month. Costin Iorgulescu and I host two MeetUps in North Austin; the Private Lenders and Borrowers Networking MeetUp on the first Thursday of the month, and the W2 Real Estate Investors MeetUp on the third Thursday of the month. 

There are many good professionals in the area, but I hesitate to recommend any specifically. I am somewhat promiscuous. I have relationships with many professionals! The balance of price and experience that works for me might not work for you. That is why you need to attend some of the local meetings, network with many people, and get to know them for yourself. Find the person and personalities that work for you. 

Dianne;

It sounds like he was trying to see if you were a qualified investor. From these posts, it does not appear that you are. Although you may have funds, you need to educate yourself more before investing in such an endeavor. For example, most investors would know that IRR is Internal Rate of Return. If you don't understand an investment, you should not invest in it.

I live in Georgetown and drive past this development almost daily. It is very upscale and thus far seems successful. The brownstones are selling well. The Sheraton and most of the commercial buildings are built and occupied (except one restaurant space), the apartments appear to be all leased up. They are breaking ground now on the lofts. 

One observation I would make is that being at the highest end of the rental price range in Georgetown, they might be the most impacted when there is an eventual downturn in the market. 

The Novak brothers are well known in this area and have a good reputation. I have also been solicited to invest with them, but have not. I think they are probably a good company, but my focus is on single family homes which I personally own and manage, and also on lending money. So their type of investment is not what I am looking for. I have no affiliation with them. I make no recommendation one way or another regarding them.

My take away from this thread is that it is easy to get the wrong impression about a business, a development, or an investment simply by relying on internet information. No one on this thread so far has had first hand information as I have. Long-distance investing is hazardous, in my opinion. A person must do much more research, and not just rely on the internet. 

My recommendation to you is to invest in things closer to your home that you can personally inspect and research locally.

Regards,

Bill Crider

there is a georgetown Meetup currently run by Poem Turner. Costin and I started one in Round Rock and just moved it to north Austin where we have more room, more time , and can meet on a weeknight. It is now called Austin W2 RE Meetup. We meet at Quest IRA the third Thursday evening of each month.

Many people disagree with me, but I feel very strongly that if you are not going to be a full time agent, if you are primarily going to be an investor, you should not get a real estate license. I believe many sellers will be turned off by the fact that you have a license and will not listen to you as sympathetically. Also, many agents will view you adversely. You will also be limited in what you can say and how you can approach a person who is already represented by an agent. Many agents are good representatives and helpful in a sale or purchase. Others have ulterior or competing motives and simply get in the way of an investor. If you are an agent, you cannot approach a represented seller directly. If you are not an agent, you can do whatever you want. I always start with the agent. But there have been times when I knew the agent was deliberately mis-communicating my offers for their own purposes. In those cases I had to approach the seller directly to ensure clear communication. I could not do that if I were an agent. There are numerous other reasons, but that is the main one.

You should definitely learn more about financing - there are many ways to finance a purchase. The best or easiest varies from deal to deal. The type of deal ( hold or flip), your financial situation and goals, the timeframe, price range, and many other factors bear on the decision.

Bill Crider

Don’t listen to them! It’s a trap! Austin is a terrible place, full of cactus, rattlesnakes and drunken rednecks. All investors here are doomed! Move somewhere else! 😀

Seriously, if I were your age I would not look for the current hotspot. Austin has already appreciated. I would look for areas that are depressed where I could buy cheap, but are likely to appreciate well over the next 20 years. For example, Waco Texas is like to expand with the space industry. Omaha Nebraska is growing as a tech hosting hub. Look for places the tech giants are expanding or at least listing as candidates for expansion. Don’t look at what’s already happened. Try to anticipate trends. Real estate is a long-term investment. 

Markets go up and markets go down. Lessons to learn to make money in any market:

1. Invest, don’t speculate. Never buy based on appreciation or tax schemes alone. 

2. Only take on good deals, not marginal ones. Keep your time and resources available for when the good ones come along. 

3. Don’t over-leverage. 

4. Don’t be greedy.

5. Don’t fall in love with any particular property or deal. 

Always pull your own report. I have had tenants fake credit reports, pay stubs, W2s, and rent receipts. Check to phone numbers they give you as landlord and employer - ensure they are not just a buddy that agreed to answer the phone for them.  Drive by the address they list as their current address. I have had tenants list non-existent addresses and vacant, condemned houses as their current address.

Most people are honest and good. But you need to protect yourself from those who are not. An extra month's vacancy is much cheaper than a problem tenant.