All Forum Posts by: Joseph Ali

Would anyone recommend finding a unit with or without tenants? For his needs, my gut tells me turnkey would be more appropriate than value-add. 

@Cody L. would you mind showing me some of your multi-families in Montrose? I'd like to get a feel for what the extent of remodeling would be needed to be competitive. Forgive me if that is inappropriate. My rationing is if we do a rehab, we can share the benefits of removing eye sores.

@Cody L. I've confirmed with him that he would prefer to leverage the deal with financing. FWIW, I have no interest in personally syndicating this deal, as we are friends and wouldn't want to particularly mix long term investments in the relationship. Depending on the numbers and deal, I think going in with some other investors may be a good way to limit any short term losses.

From what I've noticed in the Houston market, rent is not scaling with the prices of property and larger luxury apartments are offering great amenities and new construction at market prices. 

He is only interested in the Houston market at the moment, inside the loop. I'm finding there is absolutely next to nothing to find through HAR or loopnet. Perhaps, I would need to listsource or start cold calling. 

From our conversations, it doesn't look like he really wants to learn all the ins and outs of real estate, but likes the investment vessel more than some others at the moment. I would be sourcing the lead and setting up a property management deal so he can keep doing what he's doing now instead of picking up a second job.

A friend of mine is sitting on a lump of ~$1M+ and is interested in investing in Houston real estate. He's not looking to put much work, sweat or effort into the deal, so this is where I come in. Although he lacks experience, he is looking for Multifamily only and is wanting cash flow from the deal. 

How can I capitalize on this opportunity in this market? I am basically looking at this as a birddog deal. What would a deal structure look like when the market is bearing small cap rates, but high appreciation? I am currently working on a separate partnership for my own personal investments, and I would hate to lose out on an opportunity for experience and some extra capital for my own investments. My concerns are finding a win-win for all parties involved with tight margins.

@Account Closed Great stuff! Can't wait to see more

Generally, inside the loop doesn't provide much meat for flipping. The rental market has steadily been increasing, although not keeping up with the price of purchases. I recently read in the market analysis report that there was 4.4 month surplus, which is the highest it's been since Oct '12. That would normally be red flags (I'm new. Someone correct me if I'm wrong) as a buyer. I'm not sold on the bearish news though, as parts of Katy are still increasing # of homes sold despite O&G prices. Friendswood and Pearland and still growing. My zip has seen an increase of 31.3% over last year's average price for homes sold.

The markets in EADO (East Downtown) seem to still be chugging along. Mostly commercial and condos though. Not a plethora of SFR in the area.

Music to my ears! Are the meetings always on a Thursday? Trying to cross town from Westchase after work may get interesting.

@Cody L. I believe a lot of it is from foreign investors looking for appreciation. Cody, I've been lurking your posts for a little while now. 3rd ward seems to be the only place inside the loop that can be purchased under $150k atm, so I've been scouring for deals through HAR. I'd love your insight into that area. I know you've put your money where your mouth is.

@Syed Rizvi 290 and Beltway can be hit or miss. There's a few areas out there that I was almost interested in, but it just didn't meet my criterias, e.g. in my price range, cash on investment, etc.

@Account Closed I would definitely be interested in learning from your spreadsheet as well- if you are offering. I was already searching the BP podcasts for Subject-To episodes, and this criteria fits my needs perfectly.