All Forum Posts by: Matthew J.

Mike, I understand what you are saying. I think everyone knows those ratios and numbers.

What everyone does not know is where the market is headed and/or which market will perform better than the other. When I say market I mean city and warehouse/office/industrial/multifamily

It seems like multifamily and residential will always be there as it is needed all the time. But since I am looking to retire overseas and do not want to deal with maintenance issues, I was looking at commercial warehouses first. Now that I am thinking, can the triple net deal be done with multifamily and residential? 

Also, why would triple net yield less return? Isn't the maintenance cost should be a part of the revenue stream anyway? Either rent is lower and tenant pays for maintenance or rent is higher and owner pays for maintenance? Doesn't this yield the same net cash flow?

Kris

What type of properties are common with triple net lease?

Anderson that is bad news for my warehouse dreams :) 

The reason I was thinking of warehouse is because it has less maintenance issues to deal with.

Any other thoughts?

I am reading topics in this forum and everyone agrees that there was too much of an price appreciation in Austin market in the last 10 years or so. Do you think it is too late to get in?

I was particularly interested in buying a commercial warehouse and rent it out. I live in Houston but I have no hopes for Houston due to low oil price expectation. Austin on the other hand has nothing to do with energy and all technology.

Thoughts?

Get a redfin account for free. It shows you the exact comparable sold prices 

I found this if anyone is interested

http://www.colliers.com/en-us/texas/houstonoccupieradvisorsteam/marketnews/hi12017

I would like to know which parts of Houston is projected to grow fastest? Are there any research or reports out there that talks about this?What happens if oil prices keep going down or stay where it is, what are the projections?

As many of you already know that retail in general is not doing well not only in Houston but in general. I am also shy from purchasing residential multifamily units for maintenance and keeping up problem.

I am inclined more towards any property that is not retail and not residential. I will be buying and renting it out. I have never done this before and did a little research and found out that commercial mortgage interest rates are higher and more restrictive and it requires more pay down than residential mortgages. Had I known this before I would not buy my house all in cash and instead invested in a commercial property but it is too late now.

Thanks in advance

Am I the only one that thinks something is not right with Houston RE market?

The big money and big salaries are in Oil and Gas which does not hire anymore. In fact they seem to layoff alittle

There is job growth but most of them is in Healthcare where most jobs pay less than $50K

Instead of all these negative factors, Houston population is still going up but I am not seeing the purchasing power in new comers. 10 years ago new comers were to be employed in oil and gas with higher than average salaries. Nowadays new immigrants in Houston are mostly from South America with no skills and income at all. Mostly from Venezuela, Mexico and Cuba.

So I am not sure how this growth in Real Estate is sustainable? One caveat is that there is too much money flowing from China. A real estate agent told me last year that one third of all transactions in Sugarland is cash money from China.

I once met someone from Venezuela who was a Spanish teacher in HISD and she arrived from Venezuela 2 years ago. I asked her why she choose Houston over Miami for obvious reasons. She said Miami is way expensive and the new destination for Venezualeans is Houston. She also added in her school only in the last 2 weeks 13 Venezuelan kids registered. (probably on a tourist visa or illegal)

Is this growth sustainable with no good jobs and with all these poor people and low salaries? I don't think so...

Well the following link says otherwise

http://i.hizliresim.com/Qa2DRy.jpg

Isn't this unbelievable?

http://www.houston.org/pdf/research/quickview/Economy_at_a_Glance.pdf

http://i.hizliresim.com/Qa2DRy.jpg