All Forum Posts by: Jibran Najmi

Justin-

In Texas, a broker is required to oversee all property management activities.  If you're interested in reading about it I would recommend Googling the Texas Real Estate Licensing Act (TRELA).

The act indicates property management as managing, leasing or showing another's property for a fee.  TREC requires a broker to oversee these activities so that in the event that something happens, they have the ability to hold an individual accountable.

Bottom line is that if your out of state property manager/property management company has a employee who is a Broker in Texas, then you would be able to use them for properties in Texas.

The above is just the way I understand the system after having taken the property management classes at TAR, but I would confirm with TREC by emailing them

.  They are pretty prompt in responding, and I've used it to get questions answered without having to sit down with an attorney etc.

I hope this helps, if you have other questions, let me know and I can put you in touch with someone who can help

@Jimmy Peters

Is this off Crooked Lane? I walked the property yesterday and it needs a lot of work.

Hello BP!

I am interested in finding out what everyone is looking for these days in their criteria.  I'm interested in comparing to my own criteria and seeing where I land among other investors.  Obviously markets vary, however some metrics are transferable.

My criterion:

Single family

$50K - 225K Purchase

$100K - $250K ARV

1000 - 2000 sqft.  (Prefer 1350 - 1800)

Built after 1980

I account for the following:

Property Management: 10% of rents

CapEx: 10% of rents

Repairs/Maintenance: 5% of Rents

Vacancy: 5% of Rents

Target Monthly Cashflow: $200/month

Target monthly rents: >0.9%

Debt Service Coverage: >=1.50

I look forward to your feedback!

Hi @Mark Bommarito, speed to lead? Haha, I'm kidding.  

I would agree with you that a team is key, especially for those with little to no experience.  Finding & funding the deal is simply the first step, and in my experience I've found that many investors starting out do not have a plan moving forward after acquisition.

Understanding state specific property management issues is key, and if that area of knowledge is lacking, having a someone with that as a strength becomes more important.  It sounds really obvious, however it's overlooked often.

I have several clients from out of state - California in particular.  I focus on finding deals for investors specific to their objectives.

For those unfamiliar with TX, it is a special place that funds a majority of its budget through property taxes. In Tarrant county a good GUESStimate is about ~2.2% of the ARV, however there are numerous exemptions.

PRO tip: If you are considering a property in Texas and the Seller/other agent is unclear about what the UNEXEMPT taxes are:

1) Google "Pay COUNTY NAME taxes online" 

2) enter the property

3) get the taxes paid and unexempt taxes from directly from the CAD

I personally like small multi-family with 2-4 units, purchase prices ranging from 100K - 300K, with value add opportunities.

@Deba Douglas

Congrats on the successful project!  How are you finding your deals?

@Mark Bommarito

I think Michael's response is on point.  It depends on what your goals are, your risk tolerance and what you ultimately are comfortable with.  Invest in what you understand, stay away from what you dont.  I personally believe Arlington/Mansfield & Tarrant County are going to be some of the top markets due to UTA, the Cowboys/Rangers, Google and a host of other factors.

@Juan Rosado it is possible that the taxes you are seeing are only for one side of the duplex.  Double check that the lot description includes both sides of the duplex so that you can get an accurate number for taxes.  I agree with @Ryan Blake that 2-2.4% is a good estimate depending on the area.  If you need help calculating it send me a direct message and I'll look at it closer.

@Marshall Fairley

While I agree with @Ryan Blake that Myers, Networth & New Western get the MOST houses, I would recommend researching other investors experiences with these companies prior to pulling the trigger.  These companies do have deals, but I think its important to research, understand and know their motivations and roles in these transactions.

@Ray Lai

Thanks for detailing the various options/choices.  It does help to know if I tried everything.  Could you elaborate on Address Service Requested?

@Christopher Hauser

The next meet up will prob be in the 3rd week of October.  Just clarifying - we'd love to see you there, but we're in Arlington, TEXAS not Virginia.  Just FYI.