Almost 500 houses ----> Multifamily

Almost 500 houses ----> Multifamily

Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes

Howdy BP,

I am a real estate investor in Houston Texas and started full-time investing in 2013.  I started a wholesaling and flipping company that has closed nearly 500 deals.  I sold that company in September '18 and started buying small multifamily.  

A couple of friends of mine recommended I start regularly posting here on BP.  So I thought I would start this thread and see where it goes.  Ask Me Anything, hopefully it is real estate related.  

-JB

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Fayetteville, AR · Member since 2018 · 95 posts · 62 votes
7y
Originally posted by @Jason Bible:
Originally posted by @John Elias:

For someone looking to get started soon, if you had to redo it all again would you still start by wholesaling and flipping? I actually kind of want to follow the path you did. Flip at first then transition into rentals once i get some capital

I just closed this one with a partner.  He gets 9% interest and 30% equity.  Ill cash flow 900/month and have no money in the deal

 Jason, on this deal, do you repay the full loan or 70%, as the lender maintains 30% equity in the deal. Do you have more details on how this is structured? 

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  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    7y

    Thanks for your willingness to share! Did you ever hold SFRs as long term rentals?

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Nick Giulioni:

    Thanks for your willingness to share! Did you ever hold SFRs as long term rentals?

    Yes, typical hold time was around 2 years.  We did not keep that many.  

    -JB

  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    7y
    Originally posted by @Jason Bible:
    Originally posted by @Nick Giulioni:

    Thanks for your willingness to share! Did you ever hold SFRs as long term rentals?

    Yes, typical hold time was around 2 years.  We did not keep that many.  

    -JB

     Did you 1031 or eat the capital gains?

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Nick Giulioni:
    Originally posted by @Jason Bible:
    Originally posted by @Nick Giulioni:

    Thanks for your willingness to share! Did you ever hold SFRs as long term rentals?

    Yes, typical hold time was around 2 years.  We did not keep that many.  

    -JB

     Did you 1031 or eat the capital gains?

    I wish 1031's worked as well as the do in a seminar.  The challenge is selling your rentals, and getting max value, while identifying the next property.  

  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    7y
    Originally posted by @Jason Bible:
    Originally posted by @Nick Giulioni:
    Originally posted by @Jason Bible:
    Originally posted by @Nick Giulioni:

    Thanks for your willingness to share! Did you ever hold SFRs as long term rentals?

    Yes, typical hold time was around 2 years.  We did not keep that many.  

    -JB

     Did you 1031 or eat the capital gains?

    I wish 1031's worked as well as the do in a seminar.  The challenge is selling your rentals, and getting max value, while identifying the next property.  

     Honestly that doesn’t surprise me. I’m guessing I will have to slowly offload my properties in order to get my capital back out.

    Do you have any regrets moving the multi?

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Nick Giulioni:
    Originally posted by @Jason Bible:
    Originally posted by @Nick Giulioni:
    Originally posted by @Jason Bible:
    Originally posted by @Nick Giulioni:

    Thanks for your willingness to share! Did you ever hold SFRs as long term rentals?

    Yes, typical hold time was around 2 years.  We did not keep that many.  

    -JB

     Did you 1031 or eat the capital gains?

    I wish 1031's worked as well as the do in a seminar.  The challenge is selling your rentals, and getting max value, while identifying the next property.  

     Honestly that doesn’t surprise me. I’m guessing I will have to slowly offload my properties in order to get my capital back out.

    Do you have any regrets moving the multi?

    I can buy MF fast enough.  In the last six months I am under contract or have close 6 duplexes, 13, 27, 120 unit.  I am also closing 3 and 4 unit for airbnb.

  • Rental Property Investor · Englewood, CO · Member since 2017 · 4 posts · 2 votes
    7y

    @Jason Bible

    What is your primary means of finding a deal on a multi family property? And for someone just beginning, any advice on finding that first property?

  • Member since 2018 · 13 posts · 6 votes
    7y

    How did you fund those first few properties when you were first starting out? Then, how did you fund the next few when you were starting to ramp up?

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Nathanael Shook:

    @Jason Bible

    What is your primary means of finding a deal on a multi family property? And for someone just beginning, any advice on finding that first property?

    I have pulled great deals from MLS, but I get a ton of referrals and pocket listings.

    Beginner looking for what kind of deal?

  • Real Estate Agent · Renton, WA · Member since 2017 · 204 posts · 151 votes
    7y

    Was your wholesaling deal all in Texas?

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Quito Keutla:

    Was your wholesaling deal all in Texas?

     yes, 95% in Houston

  • Member since 2019 · 27 posts · 7 votes
    7y

    For someone looking to get started soon, if you had to redo it all again would you still start by wholesaling and flipping? I actually kind of want to follow the path you did. Flip at first then transition into rentals once i get some capital

  • Rental Property Investor · Englewood, CO · Member since 2017 · 4 posts · 2 votes
    7y

    @Jason Bible

    Beginner looking for multi family. I’ve targeted saint Louis as I have family there and my home state of Colorado is too expensive

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @John Elias:

    For someone looking to get started soon, if you had to redo it all again would you still start by wholesaling and flipping? I actually kind of want to follow the path you did. Flip at first then transition into rentals once i get some capital

    I would have gone right into rentals.  Find partners and build wealth.  Id be worth tens of millions more if I just went right after rentals.  Just partner for the capital.  

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Nathanael Shook:

    @Jason Bible

    Beginner looking for multi family. I’ve targeted saint Louis as I have family there and my home state of Colorado is too expensive

    Expensive is a relative term. I'd first look for a landlord friendly state, I am not an expert in CO but I believe it is, and then buy. If it cash flows with a DSCR of at least 1.4, go get it.

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @John Elias:

    For someone looking to get started soon, if you had to redo it all again would you still start by wholesaling and flipping? I actually kind of want to follow the path you did. Flip at first then transition into rentals once i get some capital

    I just closed this one with a partner.  He gets 9% interest and 30% equity.  Ill cash flow 900/month and have no money in the deal

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Quito Keutla:

    Was your wholesaling deal all in Texas?

     yes

  • Investor · Charleston, WV · Member since 2009 · 23 posts · 2 votes
    7y

    @Jason Bible

    How long did it take to sell your previous flipping business? For cash or on owner financing?

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Andrew McDavid:

    @Jason Bible

    How long did it take to sell your previous flipping business? For cash or on owner financing?

    about 6 months.  Mix of both 

  • Member since 2018 · 10 posts · 2 votes
    7y

    I grew up in north Houston (Spring), and have considered investing around there since I know it. H-town's definitely not a small place, do you focus in a certain area? 

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @Joe Osborne:

    I grew up in north Houston (Spring), and have considered investing around there since I know it. H-town's definitely not a small place, do you focus in a certain area? 

    Absolutely, this market is way too big to not focus on a submarket.  Its one of the biggest reasons people fail in this city.

  • Member since 2017 · 4 posts · 1 vote
    7y

    @Jason Bible do u have any example contracts and how to fill them out properly

  • Rental Property Investor · Houston, TX · Member since 2015 · 75 posts · 66 votes
    7y
    Originally posted by @John Bridgewater:

    @Jason Bible do u have any example contracts and how to fill them out properly

     We use the state forms: https://www.trec.texas.gov/forms-and-contracts

  • Rental Property Investor · ME · Member since 2018 · 179 posts · 59 votes
    7y

    q. Cool is your last name actually Bible?

    Neat reminder every day read wisest most verified accurate book in the world from antiquity 

  • Rental Property Investor · Atlanta, GA · Member since 2014 · 14 posts · 7 votes
    7y

    @Jason Bible Thanks for taking some time out for this AMA. Since your move to multi family properties, what's have been your biggest challenges?

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