All Forum Posts by: Vijaianand Thirunageswaram

Hello BP REI's

Hope all doing good. I do not see lots of action these days in the forum. It's been quite. Whether you believe it or not, deals are still happening even with high interest rates. Whether you want to be part of it or not is the questions. As I always say, you should be in market whether it's going up or down as value investor. Real Estate is considered inflation edge all the time. 

Anyway, let me share some thought about the topic which I been experiencing in the last few months lately. As the inflow of OFF Market deals starting to increase in the last few months, that's good news for investors. But watch out, many wholesalers are trying to sell the properties with the 8-9 month CMA which shows really big spread. That's not the going to work with the current market as the prices have dropped atleast 10-20% in many areas.

Let say you buy it and rehab the property and going for refi, appraisal going to be pretty different with the lastest comps and not the 8-9 month comps. That's going to really reduce your LTV and end up putting down more from your pockets. So word of caution to really do your due diligence by taking the real last 3-6 month comps from your agent not use the Wholesaler comps to make the deal happen. This is especially true to the recent shift in the market due to the interest rates and continue to change and will continue this year.

Happy to hear others thoughts.. 

Vijai

Howdy Houston REI's,

It's been really too long since I posted or communicated with the group. I also do not see any intriguing posts and it looks like dead zone with our local forum. I know the high rates and high prices of the properties really make the numbers to work for any strategy these days putting hard brake on investment activity. I heard that before rates gone up, institutional investment was almost 50% of the sales in Texas. It has recently dropped to 20% after continuous fed rate increase. It's good for our small local investors and hope it's get better and more supply in the market.

Last few months, I have been busy with lots of Property management activities where owners moving out and renting out the old homes. That activity has increased a lot in Houston. Also I was able to close few wholesale deals for my investors which was really and rare. One deal almost $600k worth with 950k ARV and investor bought it and plan to do house hack and flip it later. Another one is in house transaction which one of my investor unloaded it off market and sold to my other investor and we did rehab and refinanced and end up really good equity on it. Deals do come like these but too much competition makes prices to raise and screw up the numbers. I advised most of my investors to wait out and raid this tide and get ready for the low ones if we end up going to recession.

What do you all up to these days? 
BTW, I am planning to bring back Holiday Party which we did in 2019 at Karbach. So do let me know what do you all think about it?

Happy Friday!!!

Vijai

I am not sure how come BP moderator left this post hanging for this while since they are very particular about removing post talking about meetups in the general forum. 

Anyway, I am trying to bring back Holiday BP Investors meetup this year after COVID at Karbach. Let me know who all interested.

Hello Houston REInvestors,
Hope you all are doing well. It's been a while since I am sending one of these meet up emails since COVID started 3 years ago. We are finally back to normalcy and doing things the normal way!!
As you all can follow the market, it's actually really a roller coaster ride with so many things going on to make rocky economics for now and at least for a year. Mortgage rates continue to rise until it stabilizes and comes down if the inflation can be curtailed. Property inventory is supposed to go up after COVID vanishes and we hope to see that this summer and help to slow down high demand. We hope to slow down by next year as per many economists taking things going all around the globe.
Having said all the above, it's the right time to meet up and talk about it so you can set your goals accordingly for your future. Also we are bringing an inspector from the 1st Rate inspection to help you with some tips and tricks on how to check things in the house on High level before making offers.

20 SEATS ONLY. RSVP QUICKLY ONLY IF YOU PLAN TO ATTEND FOR SURE. https://www.eventbrite.com/e/investors-meet-up-tips-tricks-to-inspect-home-with-an-inspector-tickets-328927449857

@James Daniel howdy? We are not allowed to self promote but if u still looking for property mgmt. Check out my company profile and references. Many BP investors are my clients and manage their properties.

@Fernando Jara As per forum rules you are not suppose to publish events details and they will be removed. Please check the events section if you have access. I plan to restart monthly networking event for investors in Sugar land area soon.

@Karthik Arun We do get properties which makes sense and @Cristian Vences has lots of good points about buying Turnkey in C market and doing BRRRR. You need to first figure your goal and plan and execute. Many people do not like to buy older properties and think buying new properties will save CapEX for initial period and that way they can make money. Yes, I agree to certain extent. I do have few new properties in my property mgmt portfolio which few investors bought last year and we manage. They did buy around $130-140/sqft and lower interest rate and it's now making some cashflow. Your $325k property, you said going to have $0 cashflow but you also misssed insurance on the calculation. As long you are building equity and not breaking your pocket, it's still not make sense compare to not doing anything.

Wow $375k for 2k rental. Are you kidding me? How the numbers going to work for you? How many sqft and how much you expect to appreciate?  

Many investors around US are just looking at ways to park their money in Houston market without realizing that market is already on top end. Houston and suburb don't appreciate like San Jose and suburb. It has gone up last year or so because of the over all market in a bizzare way but do not expect to appreciate like that forever. It might go up for few years because of low new inventory but real appreciate is going to be slow and depends on other factors. 

Try to make sure you are atleast break even and do not put money from pocket. 

@Daniel Kennedy This question is very important one if you dealing with multiple properties as investor and you get hit with reconnection all the time when tenant moves out. As an investor of 10 SFH myself and property manager for 50 SFH homes, think about me. I had to go through every time for my house or my investors houses gets emptied. I did try to use the concierge services to help with this situation for my clients but they are not efficient and they don't find good plans for the clients. We also tried to get permission letter from landlords so we can try to help them out doing the connection ourselves but landlords don't like to pay the bills when it's vacant and we end up losing out when we try to help them. So we are doing the same old way of having them reconnect the utilities immediately tenant moves out and follow up with the new tenant to take new connection as they move in.

We use Volt energy which is now Ampra energy which has no contract plans but rates obviously going to be higher but no other choice. TRy them out. 

Not just RE Agent, an RE Agent who is an experienced investor and one who walks the talk :-)