All Forum Posts by: Jason Mak

@Jimmy Wilson I think this is because the price point is much lower in Texas so many Californians see TX real estate as a "good deal".  

@Derek W. yes that is what I hear.  

Little to none appreciation in Texas investments (unless it is a value-add/forced appreciation deal.  But as @Account Closed says, nice entry point with good cash flow.

In the end, this looks like a cash flow vs appreciation comparison

@Joshua Dorkin props to you and bigger pockets for your role in putting this book together as well

Just read this on a 1 hour plane ride.  It is such a worthwhile read and automatically went on amazon.com to purchase @J Scott other books. Honestly, such a ridiculously good REI education for next to nothing. Thanks JSCOTT

Not sure if the REIC is the right place to go for that type of money. Many experienced REI wouldn't throw down $5m unless you had a previous relationship with them or track record making money in those sized deals. They probably prefer a more active control of their investment or are probably doing deals on their own. Your asking for people to cough up a few million bucks so you would probably need to rely on your own network.

Agree with @Robert Sepulveda , 1% interest plus 10% equity is not very attractive from an investors point of view.

Starting this thread after reading through the "Austin is Hot" thread.  After reading that thread, the Austin atmosphere looks similar to California.  I'm a California investor and certainly a dearth of deals out there due to high prices and influx of investor competition.  So my question is if this is any different from Texas?  I'm referring to the metro cities: Dallas, Austin, Houston 

Texas and California share many similarities from an investor profile:

- Growing populations and good demographics

- Nice metropolitan cities with strong industries

My general observation is that the cost of entry (i.e. price per square feet) is much lower in Texas, so it would make sense if you have less capital to go there, but does it make sense from an ROI point of view?

I've seen both sides of the argument.  I have friends exchanging buildings in CA and buying apartments for nicer cap rates in Houston but then also friends who have comment that TX doesn't have the appreciation that CA does. 

Anyone have experience in both states and care to comment?  I'm referring mainly towards the larger Metro areas (i.e. Austin and SF or Dallas and LA)

 Hi Ben - Do you mind if I ask why?  Seems like you would benefit from having your license with all the real estate deals that you do (submitting offers, closing deals, etc).  Also, as a syndicator, can you use your license to represent your deal to save on closing costs etc?

I'm curious if this is true.  I have never heard this before.  In my market, money talks!

In any case, I got my license to have flexibility in seeing houses on my own time and writing offers on my own. It's convenient to have all the MLS, forms, lockbox access at your fingertips without needing to call an agent each time.

I only do a few deals, but those few deals paid  for all the licensing fees.  

I do it the same way as you describe and I own a pretty large apartment building.  I don't even bother with credit check or US Cosigner for international students.  Other than a good deposit, I also ask for proof of funds (bank account, loans, grants, etc)  Most of the foreign students are financially capable of paying the rent - never had an issue with that.

One thing I do find is that their expectation for cleanliness may differ to that of yours so you need to be very clear and have as much things in writing as possible.  (i.e., no hanging your dirty laundry in public spaces)  

Also, make sure you talk to them about how they will get any security deposit refund back. Do they want you to mail them a US check to their overseas address?  Cash?  etc etc.

@Colin Green it shouldn't matter where in the world you are investing from.   Once you buy the note, all communications should be performed by a third party servicing company such as FCI Exchange.  I don't think you can simply call the borrower and talk to them about their note when you are the noteholder.  There is a legal procedure to communicate and serve the borrower and that is what the servicing company does for you.