All Forum Posts by: Mark Sewell

@Turner Wright I would say we are pretty steady.  Not crushing it but not really down either.  I've not been with Jet long enough to really have a feel for it really. 

One theory is that those investors that had their own acquisition mechanisms in place before 2020 are still managing.  Maybe off a bit but there is some deal flow.  At least flippers are still going.

Those relying on MLS for low end buy & hold properties to get in a BRRRR deal here or there, now those people are just not finding them. They are out there but they are getting full retail for stuff that needs works, and they are selling in hours, not days. No way to make money in those.

Saw you earlier on the North Houston REI FB presentation and A.G. nailed it... the story is all about increasing population and strong demand with limited supply. Predictable results. That $140k 3/2 in Spring that would cash flow all day is now $170k or more. I think his advice to look to secondary cities in TX is probably sound strategy... overlay that TX Houston Index info with some jobs data or some other form of income data and I think you would have the makings of a pretty good plan.

Is that really a sign of health, though?  The fact that we have almost no supply, particularly in the lower price points, that's the story here.  It's not that demand is amazing.  Demand is stable, it just never went anywhere. Then you lock people down for a month or two, right before the summer months when the market is always red hot anyway...  

No we stop building houses for 3-4 years (2008 to 2012) and when we do start building houses again, we cannot build them for less than $225k and most of them are being built at or above the median.  There IS no affordable housing being built, not here in Houston anyway, and there are only so many qualified buyers for the ones that are getting built.  

Less houses getting built, very few of them below the median, and a relatively small chunk of the population can qualify for those mortgages.  The median home price simply HAS to climb steeply... right?  How can it not?

Expect to be shelling out over $200K for those crappy 3/2 patio homes that used to cash flow so nicely.

@Adriel Hsu I think that's not a bad way to go at those numbers.  Would love to see how that goes.

Propelio is one.  Propstream is another.  I like both RealAcquisitions and/or Real Estate IQ.  All good stuff.  You'll need to go buy a subscription but they do run promotions from time to time.

For a free tool that REDFIN feature you found is not bad.  You correctly noted that it was the last list price, but you know you are close, anyway.

You won't have any trouble finding a buyer IF you have a deal.  That's your focus.

I know that there are two online resources, local to Houston, that offer some good online estimating tools:

Brant Phillips had one at point, but I don't see a link to it now... but I do know that Fast Track Remodeling has one on their site.  

Hopefully his HM lender would be smarter than that.  They want to see that there is going to be a viable exit strategy in place.

Wow, what a great question.  

A good deal is just a tad bit better than your next best alternative... which brings us to knowing the market, as others have stated.

In the process of learning what deals are out there (learning your market), I think you have to just get a feel for what is possible, what are the returns that you see other investors getting and over time you'll start to get a feel for what a reasonable 'hurdle rate' will be for your capital.

It is easy to see how important it is to network and get with other people that are doing what it is that you want to start doing.

You can do a non-QM 30-year loan that doesn't require documenting your income.  Sure, you will need a decent down-payment and your rate will be 6% or so, and but you will still cash flow just fine.

If you do decide to buy your first house using your VA, then buy something that is cost-effective - don't go for all the house you can afford. Keep it moderate, and then later on when you move again, you'll have a great little house that will rent well and cash flow for you.

Hey you if you don't have a mortgage broker, give this guy a call... Clint Yates at Integrity Mortgage.  I'll send you his number but you'll find him online.  Good guy, also a US Navy veteran.