All Forum Posts by: Hunter Vigneault

You'll have to pick an area of Houston - you can't realistically just cover the whole market and do well. When I moved there a few years back (I've since relocated to Nashville), I picked inner loop multifamily under 20 units. Even then, there is a lot of variation within each sub-market. Pick an asset type you like and an area that is close to where you live or otherwise fits your preferred price guidelines/demographic/market profiles.

As said above, your best bet to learn an area quickly is to network with as many people as possible (admittedly more difficult these days) because you can lean on their experience as you develop your own.

I don't know about 50%, but I do expect there will be a very high uptick in non-payments - it is just different in that the many of those borrowers will have gotten permission to skip their payments, so it's not technically a default.

I think where OP was referencing a discussion of loan packagers, it is an ongoing discussion how hard mortgage servicers will be hit. From an article found here:

"When borrowers stop paying their mortgage, servicers are contractually obligated to advance principal and interest payments to mortgage-backed securities investors. Servicers maintain liquid reserves to cover these advances for loans backed by Fannie Mae, Freddie Mac, or Ginnie Mae MBS, which make up the majority of the mortgage market.

But servicers cannot survive if they have to make payments on behalf of borrowers for a prolonged period, depending on how long the COVID-19 crisis lasts. Unlike banks that have access to federal liquidity facilities, nonbank mortgage servicers rely on financing from commercial banks and private firms."

There is a real chance that the number of non-bank lenders/servicers decreases, which I suppose could theoretically reduce competition for new loans and drive up pricing. At this point, I don't know anyone can speculate exactly how much or how quickly that affects rates.

I posted this on another forum, but thought I would add my 2c here:

In my opinion, one of the benefits of real estate being fairly illiquid is that you can't keep refreshing your browser to see wild swings in valuation.

On a deal by deal basis, yes - there are already effects on market pricing going forward. When there is a shudder in the market, more people would like to sit on their cash and see what happens. Fewer buyers means less competitive bidding. It is too early for most sellers to want to accept these lower offers, but the longer these market conditions hold, the more accepting they will be. Of course, I have already begun speaking with owners that are less well capitalized and are willing to consider significant discounts from where they were just a few weeks ago.

While I think most owners that have adequate reserves and do not have a short fuse on their existing debt will be ok over the long term, it is difficult for me to say for sure that an adequate refi ability will exist in the next 3-6 months or so. I hope the lending market remains strong and that concern is unfounded, but someone in that sphere would likely be better able to speak to what they are seeing and expecting. Certainly the government seems more willing to step in with relief than they were in years past, but as of this writing I do not know specifically what that will look like. I expect we should soon - maybe even later today.

I am an Associate Broker working commercial real estate in Nashville, and I am currently working with investor clients that are positioning themselves to be ready to purchase. Hospitality and retail are likely to see significant opportunity across the country for investors that are experienced and well-positioned financially, and my market in particular has a lot of exposure to that industry.

I think the posts above are correct and that the broader market will take months to show the true effects of the recent events. In my opinion, one of the benefits of real estate being fairly illiquid is that you can't keep refreshing your browser to see wild swings in valuation.

On a deal by deal basis, yes - there are already effects on market pricing going forward. When there is a shudder in the market, more people would like to sit on their cash and see what happens. Fewer buyers means less competitive bidding. It is too early for most sellers to want to accept these lower offers, but the longer these market conditions hold, the more accepting they will be. Of course, I have already begun speaking with owners that are less well capitalized and are willing to consider significant discounts from where they were just a few weeks ago.

While I think most owners that have adequate reserves and do not have a short fuse on their existing debt will be ok over the long term, it is difficult for me to say for sure that an adequate refi ability will exist in the next 3-6 months or so. I hope the lending market remains strong and that concern is unfounded, but someone in that sphere would likely be better able to speak to what they are seeing and expecting. Certainly the government seems more willing to step in with relief than they were in years past, but as of this writing I do not know specifically what that will look like.

I am an Associate Broker working commercial real estate in Nashville, and I am currently working with investor clients that are positioning themselves to be ready to purchase. Hospitality and retail are likely to see significant opportunity across the country for investors that are experienced and well-positioned financially, and Nashville in particular has a lot of exposure to that industry.

Hey Alexandre,

My first purchase was a 2012/2013 house-hack of a duplex in Connecticut, which I purchased with a 203k loan because it needed a lot of work. It is a great option because it can make a purchase possible on a property that other potential buyers just walk past, but it is a lot of paperwork and headache. From contract to close, that property took something like 6 months from offer to close. Luckily I had a patient seller...

If you are able to find a property that need less than $35k in repairs, the streamlined 203(k) is a good option and will have more lenders willing to work with you. When I did my full 203(k) the only willing and knowledgeable  lender I could find at the time was Wells Fargo. I haven't checked with their Houston offices, but you may want to start there and see.

You can PM me if you have any other questions about the process. It was a while ago, but I'm happy to answer anything I can remember!

Hey Trevor,

I'm an agent that focuses on multifamily properties inside the loop - I'd be happy to speak with you about your objectives and areas of interest.

Best,

Hunter

Hi Ashton,

As Fred said, EaDo has already come up in price significantly as builders have bought up large parcels for the freestanding or townhouse-style developments that have become so ubiquitous in Houston.

I think there is still a lot of opportunity in Eastwood, particularly if you are looking for a duplex that you would like to house hack. As you noted, there are a lot of neighborhoods that have started seeing redevelopment (if you've done much driving around there you've probably seen all the variance request notices). There are a few areas inside the loop that command a slightly lower price point, but in my opinion any major redevelopment there is likely to be farther off.

Hi Chris,

I'm an agent with Norhill Realty in Houston - I'd be happy to connect and discuss your goals for that type of investment property in this area.

Best,

Hunter

Hello, BiggerPockets.

I'm new to the Houston area and am hoping to connect with others that are focused on small apartment investing (less than 30 or so units). I moved very recently from Connecticut, where I had invested in duplex and single family properties and am looking to leverage the economies of scale that generally come with the larger asset class.

Looking forward to working with all of you!

Hunter