All Forum Posts by: Rob Pasche

I don't see north Texas as a bubble. People aren't buying up properties as a speculative investment. There are just not enough places to live for all the people moving out here. The demand is growing and the supply can't keep up. Any nationwide downturn will still affect north Texas, but it's effects will be muted somewhat. I wish prices would drop, but I don't see it happening any time soon. 

+1 for TM5

The numbers to me say sell. Your parents with the proceeds could buy two houses made to rent and get more money per month than if they tried to rent their current home. So if they really want to become landlords, that's a better path. I've worked a lot in College Station the last 4 years and real estate their has been on the rise. I think they are coming out way ahead with a traditional sell and should feel very happy about that!

Few things I observed/learned:

1. About 20% of the auctions were run by auction.com. You can buy their list before hand with a subscription. Seemed like most people preferred their properties (I think bc they were easier to follow for novice investors.)
2. You have to keep your eyes peeled for trustees that walk up quietly and start an auction off to the side.
3. You have to show proof of cash as soon as the trustee is finished with their properties. (Cashiers checks in your name)
4. Bring your list sorted alphabetically by last name of the borrower. Then have the legal land description, then the address. Some trustees won't say the layman address so it's important to have all the info.
5. Not very many properties actually made it to auction. A lot were pulled last minute.
6. Wear sunscreen, bring water and snacks.
7. Great for networking. There is a lot of down time.

I don't think employment matters if you are catering to students. As far as A&M students are concerned, they are turned off by Bryan addresses. I would stick to College Station if you can get a good price.

Hey BP,

I will be attending the Collin County auction tomorrow at the court house. Is there anyone here going?

I'm not looking to purchase anything tomorrow, just want to watch. Is there anything specific that I should be looking for? I've pulled all the addresses that will be up for auction and put them in a spreadsheet. I then looked at comps for all the properties that I liked and figured out what I think is a good price to buy them at. I'm hoping this can give me some insight on whether or not this is a feasible option for flips.

I've learned from other threads to avoid HOA foreclosures since you would immediately owe the mortgage in full. I also know that not every mortgage foreclosure is a 1st mortgage. So before I'd ever consider bidding, I would need a competent title rep to research.

Paying cash is not a problem. I believe texas requires immediate payment.

Rob

What amount would be available with a business line it credit? What's a typical interest rate?

I'm a co-owner of three 4/4's in College Station. Bought our first one in 2011. One tip I have is to change your lease agreement's renewal decision date to much sooner than normal. It is not unusual to list a house available to pre-lease for August move in date, in January...especially 4br. There was a huge influx of 4br units built the last 2 years which created a huge supply. We had to cut rent to get tenants last year but will be leased at full price on all 3 come august.

Welcome Justin and congrats on your first rental! The College Station market has been heating up the last couple years. It's been very exciting watching it grow as an investor, but also as a former A&M student. If you have any questions or need references from that area, let me know. I also am frequently in that area, so if you're in a pinch and need boots on the ground, I might could help as well.

Are you looking to invest solely in College Station? Also, what led you to the area?

Rob

It was a cash only deal. Plus, I'm partnered with this guy on 3 other properties. We move much faster as a team then separate. The rub is me having to get a loan to cover my half of the cash offer. Not sure how that would effect cash out refi because I've never done one before.