All Forum Posts by: Hayden Harrington

That is great to know! Every time I visit, it seems like there are more people and more building going on up there! I also like the proximity to CA, but you don't have to deal with state income tax.

Texas is definitely a great place to be, but you are absolutely right. It is extremely competitive here and boots on the ground is pretty much a requirement. If there is anything I can do to help, or if you need any TX insights, feel free to reach out! 

Hi Ryan - interesting feedback! I've heard sellers are very concerned about the ability to acquire financing right now too and that is a huge selling point if you can assure the buyer that you can & will be able to close. We are in best and final on a deal that will require a bridge loan and we have been in constant contact with our lender to make sure we will be able to get the financing we need. We have also been putting financing contingencies in our LOI's, because if the economy takes a sharp turn and lending dries up or rates become volatile, we need to be protected. We had an accepted LOI in early March, but rates were jumping around on a daily basis and we had to put that one on pause (they ended up doing a refi because they got an incredible deal).

Bobby, those are great markets! How do you like Reno? I have family up there and I think that's an interesting market. We are solely focused on TX markets at the moment, but that is one I'd like to expand into eventually. Out of those markets, which one has performed the best for you guys throughout the recession so far? 

Hi Todd, appreciate the insights! Would you mind explaining your thoughts on the 3+ years of no rent growth? Is that market/submarket dependent or is that something you are doing across all markets & all deals?  

@Bobby Larsen Great insights! Which markets are you focused in? I haven’t seen 20% yet, but we’ve seen 13-15% so far here in TX. I also agree that management is critical during this time! If they were in trouble before this crisis, they have really had the wound opened up now.

@Kim Meredith Hampton Congrats on the new deal! Are you seeing instability with occupancy, or is it mainly bad debt and concessions that are causing the collections to be all over?

I am curious to know how your underwriting has been since the pandemic hit this year? With lenders requiring an additional 6-12 months of P&I reserves, rent growth is a big question mark and understanding your tenant base has become even more crucial than ever, there are some significant headwinds that must be navigated at the moment. For us, we are paying close attention to delinquency reports and we are having brokers pull them for us at different points of the month so we can get a better understanding if tenants: can pay, are paying late, or are not able to pay at all.

What are you paying close attention to when underwriting/evaluating an investment opportunity? 

@Cody Z. Whoops, I read the original message wrong! I was thinking interest rates, not money down. We are seeing 25-35% down and sub 3% rates.

@AJ Shepard brokers pretty much control the market, so continuing to cultivate relationships with them and constantly following up on a regular basis.

What unit count are you looking at? Fannie Mae loans for larger deals are sub 3% in a lot of cases right now and you don't have to live at the property. I would talk directly with a lender that can help you understand the best fit for your situation & goals.