All Forum Posts by: Brian Schroeder

Will there be any events between Feb 8th and 18th?

Hi Bala -

When you are determining whether to buy in Porter, I would consider the competition. If you're buying a new construction home, you will experience appreciation, and renting the property should be much easier. If you're buying existing product, the competition will be tougher and the value of your home (as detailed below) will likely suffer as the Porter market continues to be flooded with new SFH supply. Location is huge as well. Consider whether you're in a flood zone, and if you're in an area where there is appreciation. Reach out with any questions. Hope this helps!

SUPPLY
New Construction: 66 homes (all in the pocket on the West as shown in the image below)

Existing: 51 homes (primarily in towards the city)

DEMAND

General: From a macro standpoint, Porter's new construction pipeline had huge deliveries in the last 180-days, during which time more than 2 SFHs sold in the area per day. Today, less than one SFH is selling per day. This could be attributed to a lack of new supply coming online, or by Supply-Demand approaching an equilibrium.

New construction valuations are rising AGGRESSIVELY. In the past 30-days, 30 New Construction SFHs in Porter sold for an avg PPSF of $170/SF, higher than the 151 new SFHs sold in the past 180-days at $163/SF (4% appreciation in just 160 days).

Existing Supply is Suffering: 88 resale SFHs sold in the last 180-days in Porter, averaging $143/SF, HIGHER than the 8 sold in the last 30-days for ($120/SF).

 Is that all of eXp that lets you get 100% commission or just your brokerage?

 Excellent explanation of the Houston market!

Hey Gabriel,

I'm an agent in Houston. I've been wholesaling since 2022 and building duplexes since 2023 in Houston. I'm open to meeting new investors and providing any insights that might be helpful to you. Feel free to reach out!

Looking forward to it!

Hi Lucy!

Congratulations, you are in the right place. BiggerPockets is a great network that I have been a part of going on 3-years now. I have utilized its resources primarily to expand my horizons as a Realtor, and to get in touch with high-net worth individuals who are looking to invest in my new construction projects in Houston.

It sounds as though you are looking to flip or rent out a property. A few introductory questions you should ask yourself are:

1. Do I want to fix-and-flip or do I want to rent it out? -- And why.

2. What areas of town am I interested in?

3. Do those areas have favorable trends (i.e., is there appreciation)

4. How much house can I afford?

5. Am I going to self-manage the process?

6. Who is going to do my design?

7. Do I know tradesmen for each portion of the process?

When it comes to fix-and-flipping. The best way to go is off-market or direct to seller. You have equity, but you will need to get engaged with a hard money lender (who I can put you in touch with) so you can show on paper (I can close in ___ number of days and all cash). The hard money loan will be higher interest rate, and short-term. You will want to purchase the home at a discounted price with the formula below:

After repair value (ARV) * 70% - repairs - closing costs. The 70% equates to your required return and in most cases you shouldn't buy properties with less than 20-30% margin.

Please feel free to reach out and I can help you navigate the process.

Angel,

As a proud Houstonian, I am excited for you in your journey of moving to Texas. I am licensed in Texas; Washington, DC; and Maryland.

Regarding stepping into real estate, I highly recommend you identify what property type, risk threshold, and return criteria you are seeking.

I for example, build for-sale duplexes in the Houston TX market, always utilizing a GP-LP relationship, my all-in cost for these duplexes is around $35k and I make approximately 20% return, with limited risk (besides having to guarantee the loans!) My investors generally contribute the remaining equity needed (approximately $150-180k), and we utilize construction loans to fund the gap. Generally, speaking my investors require anywhere from 22-30% ROI.

Now if your risk tolerance is lower than mine, you are likely better off looking at rental properties. It sounds as though you have done some rehabs in the past, so I would highly recommend buying something with some hair, renovating it, and renting it out. Rates today are higher than they will be in 1-2 years. Getting in on today's prices will almost guarantee you appreciation when rates fall. BRRR strategy is tough to accomplish today since rents are typically not supported by current interest rates, but I do have some friends who are successfully utilizing this strategy.

Perhaps you could utilize wholesalers or investor-friendly Realtors like myself to bring you the right deal.

Reach out if you have any questions!

Miguel

Houston is becoming a bit saturated, but it all depends whether you are looking for something that is turnkey or if you are willing to put in some money to fix-or build new construction. I personally build for sale new construction duplexes in Houston, and they typically run me around $120psf; all-in around $250k. In certain neighborhoods, these can rent for anywhere from $2,500 to $3,500 per month (an excellent return). While I don't typically BTR for liquidity purposes, many of my buyers do just that. 

FYI - I am currently licensed in: Texas, Washington, DC; and Maryland. 

Reach out if you have any further questions about real estate in any of those markets. My team is made up of lenders, contractors (tradesmen), wholesalers, and lawyers.

Hi Mike

I am a licensed Realtor in Houston, TX; Washington, DC; and Maryland.

I have worked with King James lending in the past. Rates range anywhere from 11-13%, for a short-term loan. Obviously, these loans are best utilized for fix-and-flips or BRRR strategies.

Regarding your second question, Joint-venturing is a great option, depending on who your partner is, and the vision you both have for the project. I build new construction duplexes in Houston -- all of which are financed under a GP-LP structure. Typically I contribute around $35k towards soft costs (due diligence) and my LP investors (primarily high networth individuals) contribute the funds needed to build the project from an equity standpoint (approximately $150k because we utilize construction bridge financing).

I have found that on my 4-6 month construction deals, investors target around 22-30% ROI.

For longer term investments where you were to collect a management fee (i.e., rentals), you would likely benefit from raising the majority of the capital, and contributing very little so that your liquidity is not tied up into any one deal. All asset types are generally attractive for investors, I have numerous friends in the multifamily, RV parks, office, retail, and other investment spaces. The key from my perspective, is identifying an attractively priced deal, having the feasible and well-thought out strategy, incorporating talented and reliable trades, and presenting the information to investors through a comprehensive presentation.

You are already in the right place. Bigger pocket, Facebook, Twitter, Instagram. Social media is the mecha for reach; along with social media, industry events are another place I have found my partners in the past.

Reach out with any questions.