All Forum Posts by: Hattie Dizmond

banks are in the money business, not the property ownership business. Banks do not like to turn performing assets into non-performing ones. Why is this bank going to theoretically call this note due?

Welcome! I know you saw my post about the areas I'm targeting and my niche. If I see anything that you may be interested in, I'll be happy to shoot you a note. Also, the Richardson REIA is meeting Thursday night, 7/17, at 6:30. If you don't have the details, shoot me a note. I'll be happy to forward you the details.

Originally posted by @JoJo Diego:

@Geode Pratt I'm interested in North Dallas (Addison, Plano, Friscos McKinney, Allen, Little Elm, The Colony, and certain parts of Carrollton). I'm weary of certain Dallas areas but I'm sure once I learn more about them I'll feel more comfortable.

@Hattie Dizmond Ohhhh gotcha, thanks :)

I would encourage you to include Richardson in that list as well.  Each of those cities you mentioned and Richardson, all have areas that are higher end than others.  If I were you, I would spend some time looking at school rankings, crime statistics, and other things that will tell you where the best neighborhoods are within each of those cities/towns.  Also, Zillow and other services like that can show you what the average home values, avg rental values, median income levels, etc. are in each of those areas.  Once you've kinda figured out what your targets are and defined what you're comfortable with, drive the neighborhoods.  There isn't anything more valuable than actually seeing the neighborhoods for yourself.  And, I strongly encourage you to think about these areas in terms of neighborhoods, not the entire municipality, simply because things can change dramatically just by crossing over a single street!  (If you don't think so, check out the Swiss Avenue and Munger areas of Dallas.)

You're in my areas of focus staying up in the northern areas of Dallas, so if I can be of any help, please let me know.

Hattie

Originally posted by @Erik Drentlaw:

@Hattie Dizmond  I love the optimism! I am seeing tons of job and population growth and a really tough time to buy but do you really see appreciation in these markets?

I know Richardson pretty well but I think there a lot better school districts better than Richardson ISD. I am looking for a rental maybe near Greenville in Richardson and maybe near 635 and Coit. I am also very interested in Carrolton / Farmer Branch and maybe Garland but I have heard a few bad things about that area.

I definitely see room for appreciation.  Richardson ISD is ranked in the top 25 nationwide.  But, that's as a whole.  Even within Richardson there are some schools better than others.  With that said, even the schools on the lower end, by Richardson standards, beat almost all of the Dallas schools.  The areas feeding into Berkner are on the lower end of the socioeconomic scale.  Mostly blue collar & starter homes with houses available well under the $200k mark.  It's not the top flight elementary schools, but it's a ton better than what those same folks can afford in Dallas.  Plus, the neighborhoods are safe with relatively low crime stats. 

As for Garland, I would - personally - only consider the section of Garland that feeds to Richardson ISD.

DFW is cranking on job growth, particularly north of 635.  There are a ton of people who can't afford to live in Frisco and a large portion of Plano.  They certainly can't afford Prosper and that area.  Anything can happen, but, considering job growth, the continuing decline of the larger school districts (Dallas, Ft Worth, Irving, Mesquite, Arlington, Duncanville, etc.), the lack of inventory for buyers, and mortgage qualifications being tight, I don't see a major pull back in rental rates.  Richardson has the added benefit of having the UTD campus, which is a school that continues to grow. 

There just are too many reasons to like this area right now.  It may be harder to find deals, because of the tight market, but that doesn't mean a good deal isn't a good deal and won't continue to cash-flow.

JoJo...No "market" is correct.  I was just using some short hand to say what question I was responding to.  You're all good!

Originally posted by @Don Schultz:

Originally posted by @Paul Timmins:

Tyson

Welcome.

See list below Top Emerging Markets.

Paul

Top Large City Emerging Markets
1) Houston, TX 6) Los Angeles, CA
2) Washington DC 7) Phoenix, AZ
3) Dallas TX 8) Atlanta, GA
4) Philadelphia, PA 9) Chicago, IL
5) NYC, NY 10) Riverside, CA

Top Small City Emerging Markets
1) Logan, UT 6) Lebanon, PA
2) Bismark, ND 7) Fargo, ND
3) Morgantown, WV 8) Iowa City, IA
4) College Station, TX 9) Longview, TX
5) Ithica, NY 10) State College, PA

 What is the source for this list?  Its a year old now.....any update?

Welcome Tyson!  College Station, TX is still a stupidly hot rental market.  1,400 sqft rentals that are nothing special are going for almost $2k/month.  With the continued growth of the TAMU research endowments, I expect it to remain super profitable, as grad students with families continue to need off campus housing.  One of my partners lives in College Station and is an active member of the Association of Former Students.  We plan to focus most of our buy and hold acquisitions in College Station.

Also, exceptionally hot is the Richardson ISD, which includes Richardson & parts of North Dallas and Garland, along with the Grapevine/Colleyville ISD.  Richardson is ranked as one of the top 25 ISD's in the entire country, and Grapevine Colleyville is in the top 100.  The city of Richardson is the home for the Texas "Telecom Corridor" and boasts impressive job growth in a number of sectors with State Farm currently building an uber headquarters there.  Both school districts provide at or near private school quality education with public school costs.  Rental prices are increasing, because the DFW Metroplex is experiencing at or near record lows in inventory for sale.  Add that to the fact the Dallas area simply doesn't have the number of available private schools you find in other major areas, people are climbing over each other to get into these areas. 

Specifically, in Richardson, the neighborhoods that feed into the 3 highest rated elementary schools seldom have rentals that reach the open market.  Most of them are renting in the $2k+ range and are rented via word of mouth, before ads even get placed.  There are large areas of Richardson with houses in the price range you are looking to purchase.  Less inventory for that price range in Grapevine/Colleyville, but that is a reasonable range for the DFW area in general.  It will get you into a safe, blue collar neighborhood.  Some of the other suburbs in the area are comprised in large part of homes in that range.

I'm focusing my wholesaling efforts in the Richardson & Grapevine/Colleyville areas and would love to work with you, if you are interested in partnering up to find properties.  I am working with an experienced realtor who is very investor friendly and lives in Richardson, so he gets it!

Again, welcome and let me know if there is anything I can do for you.

Hattie

I want to attend the Richardson meeting, but the timing isn't easy for me, as I work in Downtown Ft Worth. However, Richardson is a hot area with skyrocketing rents and houses flying off the market, at or above asking. It's crazy. I am focused on wholesaling right now, so I would be happy to add you to my buyer's list. What specifically are you looking for in a property?

JoJo....the market? It's still strong for the seller right now and doesn't show many signs of changing in the near future. We have record low inventories right now. The good news in that is, if you're looking to flip or resale, properties are flying off the market, particularly in specific areas. Also, the inventories are so low, it's driving rents way up in those areas.

Cory...I missed the FHA part the first time. FHA has owner occupancy requirements, as pointed out by Wayne. You didn't indicate whether you had a property targeted yet, so I'll assume you don't. You also didn't indicate whether you were targeting properties that needed work or they will be rather turn-key in nature. There are a lot of considerations. However, if you are looking to get into a property with low down requirements and have reasonably good credit, I would suggest you shop local lenders. (Small local banks and credit unions) These guys have their own in-house underwriters and - generally - much less stringent requirements. You may even, with a personal guarantee, be able to actually finance the property in the name of your business. This will allow you to begin building the credit for the LLC, which should be your long-term goal...having the LLC finance the properties. Again, this is all much easier to do with a smaller, local lender.

Also, HUD Home Path might be an option, if you are open to doing some work on a property. I believe Home Path only has a 90-day hold requirement, before the property can be transferred.

Wayne is exactly right about the fraud on the FHA loan for non-owner occupied properties.