All Forum Posts by: Matt Moreland

Hey, @Michael! Hope you are enjoying living here in Lubbock so far and that you've had a good time at Tech even with everything going on. Let's connect and chat more!

Focusing on specifically multifamily syndications here in Texas from an anecdotal perspective, the volume of investors looking in tertiary markets such as Lubbock has absolutely exploded in the last 18-24 months. Prior to that a large percentage of MF in the market was owned by local HNW individuals or groups of investors, but as more discover Texas and land on Lubbock, they are seeing deals that remind them of Dallas, Austin, HTX 10-15 years ago. Pretty cool to see it play out firsthand and in the trenches, and be able to come on here and hear what everyone else has to say.

@Mason Moreland

Thanks, Mason!

I would be more than happy to help anyone looking into investing in buy and holds here in Lubbock. We've had great personal success with some of the new developments here in town with significantly lower maintenance/repair costs and still throwing off cash flow similar to the old student properties many are focusing on nearby campus (nothing wrong with those, just a different strategy).

Would absolutely add Lubbock to your list of cities to drill into deeper as the potential here is high. Whereas all the primary and secondary markets are highly saturated with investors at this time, Lubbock is still like the secret that people are just now hearing about.

We have already seen property values here shoot up just in the last 3-4 years with tens of millions in outside capital coming in, and with more development coming to the High Plains of Texas it is a prime time to buy into the path of growth while there is still tons of upside to be enjoyed.

@Samuel Bergen @Mason Moreland

There are several meetups here in Lubbock, actually!

@Austin Hughes actually runs one of the best ones here in town and would definitely be the go-to on if and where they are meeting these days!

Building on what @Tyler Bains and @Mason Moreland said, the issue here in Lubbock has not been as bad as what was previously predicted by people outside of the real estate industry here in town. While I think a lot of college towns were hit quite hard by this and more specifically investors focusing only on renting to students, I think it is important regardless of strategy to consider hedging risk when investing in one specific area. A lot of students in this area stayed in their rentals and continued going to class, as many were still in person. From what I've heard speaking to students at the business college, a lot of them who had online classes still prefer to stay in town and quarantine with their friends/roommates rather than travel back to wherever home may be and do classes from there.

In our specific case, we have had good luck acquiring rentals that appeal to more than just college students, so we have been fortunate enough to have a large number of renters from all different industries but especially healthcare with the strong healthcare community located here. The short term rental game is another option that has been going strong still as well, just with added rules and regulations regarding cleaning policies. As a sidenote, I am curious to see how short term rentals change moving forward (specifically post-covid) as more cities begin levying new taxes on STR owners in an attempt to increase local hotel revenues.

@Paul Shannon

Speaking on what I know about, Lubbock is 9/10 times the go-to for out of state investors looking to invest in West Texas and put their money to work.

The cost of housing out in Lubbock is still low compared to most of the state of Texas, and the economy is booming. Our local economy is driven off of three main components: higher education (Texas Tech that is rapidly growing, Lubbock Christian University, and Wayland Baptist), healthcare (Covenant Hospital & University Medical Center), as well as agriculture (60% of TX cotton grown in Lubbock county, and more than 90% of Texas wine grapes grown in the High Plains AVA). Within each of those categories there is far more to delve into such as the numerous law and medical schools, PT school, nursing schools, and branches off of each institution and businesses that cater to each industry, but you get the idea.

We typically see very stable and predictable appreciation annually, with consistent rent growth in areas not dominated solely by student rentals (which can be slightly more volatile with everything going on). There are certainly great cash flowing investment deals still to be found in Lubbock, as well as the rest of west Texas for those willing to seek them out!

@Sarah Klein

Hey, Sarah!

Great question.

We certainly see these play out here in Lubbock, and more often in the smaller communities surrounding the city as well.

Although not as likely to see the same appreciation as a property in a market like Dallas or Austin, the ability to scale in these tertiary markets is drawing in investors from all over and is making these deals harder to come by each month as more outside investors flock to the market. Curious to see how long until these deals become just as hard to find here.

@Edgar Ehrsam

I would absolutely take the college with full-ride option. The highest and best value derived from college isn’t necessarily the degree(s) you earn, but the way your brain is re-wired to problem solve differently as well as the relationships you form while there.

You never know, your best friend in college might be your future JV partner who has many of the skills you lack, and you likely wouldn't have met him or her if you weren't in school together.

As a side note, I don’t think the two things are mutually exclusive. I was going to university full-time while working 36 hours per week and investing in real estate. What sounds idyllic and easy isn’t always so, and working hard to tackle other dreams while you are still in college will seriously catapult you years ahead in life when you graduate.

Take advantage of the opportunity to go get an education and make the most of it. Learn about something you truly care about and that interest you. For me, it was finance with a concentration in real estate since I knew it would apply directly to what I wanted to do with my life.

@Bo Mitchell

Welcome to BiggerPockets, Bo! Good to see other Lubbock area folks on here. I’m loving the New Home area, with how fast Lubbock is growing and with how many people are building out in New Home I agree that it’s just a matter of time until it’s all connected.

Best of luck to you in your endeavors in Lubbock with your business partners, don’t hesitate to reach out if y’all ever have any questions or want to connect sometime.

All the best,

Matt

Hi, @Dalton Eschberger! Welcome to BiggerPockets and Wreck 'em!! There's a fairly large group of Lubbock folks involved on the site, so glad to see one more.

I mostly invest here in Lubbock but also have some investments down in Midland as well. Always happy to meet other folks in the Lubbock area wanting to get into investing, let's grab coffee sometime.