20% Equity Capture in Austin Texas

2 Replies

Let's Start a discussion.

I've heard mixed thoughts and feelings from those Investing here in Austin TX. I deal with Flippers and Builders and Buy/Hold Landlords.

My firm has been putting out Off-Market Investment property with 20% equity, Minus the cost of repairs.

So, I've been dealing first hand with Investors in the area who scoff at the idea of 20% being anything close to a deal, while others are more than delighted, and see value in the equity capture here in the high speed and appreciating Austin Market.

I'd like to hear some thoughts from everyone...

Hi, I just want to express interest in this topic since i'm in Austin as well and just starting. I'd like to hear from others what their thoughts are on the market here from the buy/hold perspective.

@Joseph Baldini I suspect you'll find plenty of takers, even at 80% of ARV. Many investors lack marketing skills so they are forced get deals from others who do have the skills, like yourself. This in turn forces the end investor to work for much smaller margins due to their lack of lead flow. Personally, I don't know how the risk is worth it for someone purchasing at 80% and planning to flip, but I know they're selling at that. An 80% deal is great for buy/hold investors but way too risky for my wheelhouse if I were planning to rehab, even if I were swinging the hammer myself. And while the market is hot now, the winds of change are coming and the economy can only be manipulated for so long before true economic forces come into play. And when it does, it will like the game of musical chairs...those who were betting on a rising market to make money will be the ones left without a chair.

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