All Forum Posts by: Ryan Harthan

I do investments in San Antonio and have a branch in Houston.  I'll speak to San Antonio as it's not a vastly different market than Houston.  It really depends on what you're being pitched as a rate of return and the grade of apartments.  In San Antonio I see A grade houses selling at about an 8% real cap rate and multi family around a 10% real rate.  If you want to get into your 70's builds in not the best areas can go towards 14% for singles and 18% for multi.  The low quality rentals can really fluctuate a bunch from 25%-50% for singles (you're buying in the 20-30k range) and 25% for multi.

Call for rent signs, look for houses with over grown lawns, ones that appear to be in distress.  I always talk to neighbors whenever I look at a house and ask if they'd be interested in selling their property for cash, it's worked two or three times surprisingly.  Bring stickers with you and place them on the door, don't smash them on there to the point where someone's going to call you upset.  Look on google maps for houses with green pools.

I've been a part of facilitating probably somewhere around 100 HM loans with almost a dozen different companies and have never experienced that.  I'd look for someone else, there's plenty out there.

They shouldn't be asking for upfront money from you until they approve a deal or approve you as a borrower depending on if they're an asset based or a credit based lender.  Once those two things happen they may ask for you to pay for an appraisal and inspections of the property and the completion of a rehab form.  There's plenty of companies out there and getting set up with them before you contract a property is key.  You can wind up losing a lot of time and money and angering some potentially good contacts if you're not familiar with the process.

Depends on what it's worth.  $3-4/sqft for flooring and paint from Sherwin Williams.  I try to keep cabinets if at all possible and refinish them.  I go granite in the kitchen and bathrooms, usually runs about 10k for everything.  Slab foundations run about 5k from a company with good prices at $185/pier in San Antonio.  4k for a roof if it needs it, 6k for HVAC inside and outside units with reducting.  

I personally like those deals better as a buy fix sell.... Texas is a place where you can buy houses in the 30-40k range and rent close to $900 which I like better as rentals.  You are capturing a good amount of equity and holding them for two years does make sense to minimize tax consequences.  

It took me about a year and a half before it clicked for me.  I have two separate sites for buying and selling.  I like to keep the separated that way seller's don't get the impression I'm immediately reselling their property for a higher amount.  I of course disclose this when I contract it but I want them to provide their contact information first.  On the sales side I don't provide addresses to any of my properties but do give basic stats.  If they submit their contact info I can reach out to them, meet with them, qualify them (I won't even put someone on my list that has less than 100k), then I'll show them three to five houses.  If they don't buy one they're out.

In Texas that information is recorded with the county clerk.  I like 65+ tax exemptions as well.

When I first started offering you have to get 20 or 30 no's before you get a yes.  Several years later I usually won't leave my office unless I'm pretty sure I'm going to buy something.

In San Antonio most of the larger multi family (300+) units have about 65% 1/1's.