All Forum Posts by: Steve Olson

Does anyone have a really great photographer they like?  Specifically one that does great worth with overhead drone shots?  Need footage taken for a project in North West Houston...

Hi Brandon, I'm from Utah too. I've purchased 3 properties in Indy so far this year. I actually lived out there for a year and got to know it really well. If you'd like to chat sometime just let me know. I may be able to help. Steve

Thanks @Anil Tahiliani.  Done.  

@Greg Scott makes some awesome points.  I have a lot of experience in both of these.  While it may be an oversimplification, next time you play monopoly, notice that the winner didn't have a bunch of green houses out on the board.  They had the red hotels/apartments.  

I don't know many people that accumulate a large amount of single families and don't eventually want to simplify into fewer properties but more doors.  

But singles offer some great liquidity options and higher returns in the short term in most cases.  They are an excellent spring board into multi fam, which is probably the better longer term deal. But like Greg said, both strategies are fine.  There is a time and place for both, and if you do them right, they'll both be very good to you!

FYI, the project is comprised of 6 phases, with construction on phase one starting in February of 2018.  

Northwest Houston is one of the fastest-growing areas not only in Houston, but in the country. Exxon Mobil kickstarted the surge in population by announcing its three million SF campus, which began delivery in 2015. This attracted businesses, new development, and more people. Investment here has continued as the Grand 99 Parkway provides quick access to the Woodlands and West Houston, and new retail and apartment development have made this more of a live/work/play area. Long-term, Northwest Houston is poised to benefit from many of the factors that led to the strong growth earlier this cycle: People want to be in north Houston for the schools, jobs, affordability, and quality of life, and that isn't likely to change anytime soon. In the near term, a slowdown in construction should allow fundamentals to tighten, vacancies to lower and the trough of the market due to recent oil pricing deflation should be in 2018 with the rebound and surge of pricing and even lower vacancy on the horizon. There have been little to no townhome style multifamily developments and stacked flat apartments have been built in abundance. This poises our FIG townhome style fourplexes as a lucrative investor option.  Contact me for maps, proforma, etc.  

Hi @Victoria Wagner, good question!  @Peter K. makes some good recommendations.  One other thing I would try: If I'm understanding this right, you're self employed so you can't get conventional financing (which is the best in my opinion by far if you have the option).  What I've done, and what a lot of my fellow investors do, is to make sure to setup an S-Corporation for your self employment.  It's going to save you a good chunk in taxes from your self employment, but it's also going to create the paper trail that conventional lenders love to see.  I'm closing on a duplex next week and it's been very easy because my CPA runs all my "payroll" to myself for my S Corp so I have all the W2s I need to qualify for conventional financing.  It sounds like you're able to accumulate the capital for the down payments, etc but what you need is to just make sure the income from your business shows up in the right way to give lenders what they need. 

Granted, you can go portfolio, hard money, etc, but that's short term money (portfolio money isn't necessarily short term, but it usually carries a higher interest rate).  So you're going to need to get out of that money at some point and unless you have the cash to pay the loan off, your only other options are conventional financing or partnership. Happy to chat about it anytime.  Good luck to you!   

What up @Wade Chilcoat!  Great to hear from you! 

@David Song, the rent to value ratio.  That's crazy high.  Sure, that may be the price on the leases, etc, but in a time of cap rate compression I can't figure out why anyone would give away a cap rate like that.  Sure it's possible they're in a desperate situation, but if that property is legit and doesn't have problems...the seller is leaving a lot of money on the table.  I'll admit I don't have all the facts here though.  Just looking at it from a high level.  Good luck @David Song

Hi David Song : Those numbers are insane. You have to ask yourself if those were really the numbers, why would somebody be insane enough to kill that golden goose?! Granted it's possible, but more than likely we don't have the full story here.