New Investor & New to Houston, TX

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New Investor & New to Houston, TX

Rajiv Patel
Houston, TX · Member since 2016 · 14 posts · 4 votes

Hello BP! My name is Rajiv Patel and while I’ve been on BP for a few months doing my HW, this is my first stab at posting on BP. Jumping into real estate as a new investor, my immediate goal is to focus on cash flow with buy & hold properties while I learn by doing with my first investment. In the near term, I would like to acquire a few rentals to build up my semi-passive income while I’m working full time (Financial Analyst)…long term goal is to work on my terms!

Ok let's cut to the chase: With me being new to Houston (moved out from LA), I've been spending some time learning the market area by scouring the MLS, going to a few local real estate meetups, and simply driving around getting a feel for local neighborhoods. I'm definitely a numbers guys and have spent many hours analyzing potential deals and developing the type of numbers I would want from a rental property. My target: Cash-on-Cash Return = 12-15%, Cash Flow = $400/month, Cap Rate = 7-8%. Currently I am looking at 1-4-unit residential properties and open to small 5+ unit commercial properties.

I really need help in two areas:

  • 1) Finding a Real Estate Broker/Agent
  • 2) Financing options – big banks vs community banks, portfolio lending, low money down

I will greatly appreciate any advice to steer me in the right direction.

Last thing: Folks in Houston, is there a “BP Meet up” in the Houston area? I know many cities have them, just haven’t noticed any here in Houston.

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  • Vijaianand Thirunageswaram
    Real Estate Broker/Owner & Property Manager · Sugar Land, TX · Member since 2013 · 660 posts · 459 votes
    9y

    hello @Rajiv Patel. First of all, welcome to Houston and BP as well. It's going totally new to you compare to LA in lots of ways especially weather. How you managing the HOT Humid weather??


    Anyway, I do see you are numbers guy but numbers are numbers and they don't work out all the time. They should be considered as benchmark and need to work around sometimes because not all deals are going to be like what you learned in the book. As per my experience, you numbers are way too high. It's good to dream big but at same time understanding reality and tailoring your dream would help to reach you there sooner and quicker.  If you want chat more or need help getting started, ping me.

    I been trying to get a Meetup up and running but not able to nail down logistics yet. We been meeting on last Friday of every month at Wholefoods at Post Oak and San Felipe. I am not sure how many interested to join this week. Let see when I post it. 

    0Reply
  • Rajiv Patel
    OP
    Houston, TX · Member since 2016 · 14 posts · 4 votes
    9y

    Thank you @Vijaianand Thirunageswaram for your insights. I realize my numbers appear aggressive, but those are really just a guide and I would adjust based on the parameters of a deal. Of course I am in a constant stage of learning and will have to adjust my thinking as I acquire greater market knowledge. In your experience, would it be better to set your numbers at the very minimum that you would accept to get a deal done or set a higher bar? What sort of benchmark numbers are you seeing here in Houston?

    I would certainly be interested if you do set up a BP meetup. I will keep a look out to see if you do set it up. The humidity here is something I've been trying to get used to, though I am not sure if anyone can fully get used to it. At the least housing out here is far more favorable compared to LA!

    0Reply
  • Vijaianand Thirunageswaram
    Real Estate Broker/Owner & Property Manager · Sugar Land, TX · Member since 2013 · 660 posts · 459 votes
    9y

    @Rajiv Patel  It all depends on each individual. I like to set it as short and long term goals and set your number according to that and go for it. That way you can claim victory with short milestones. 

    Don't hesitate to PM if you want to talk more on this topic.

    0Reply
  • Rene Montelongo
    Houston, TX · Member since 2016 · 79 posts · 29 votes
    9y
    Always I interested in a meetup about real estate Vijaianand Thirnageswaram . Didn't think one was happening this month, or hadn't seen your post. Looking forward to it if it happens. Great location if at Wholefoods again.
    0Reply
  • Chris Matson
    Spring, TX · Member since 2016 · 57 posts · 14 votes
    9y
    Rajiv Patel Welcome Houston and BP. I'm always open for coffee to discuss real estate with friends. I'm up in the Spring and Woodlands area. Text me if you would like to meet. Chris
    0Reply
  • Vijaianand Thirunageswaram
    Real Estate Broker/Owner & Property Manager · Sugar Land, TX · Member since 2013 · 660 posts · 459 votes
    9y

    @Rene Montelongo You didn't make it last time. It was only myself and one more person. I am going to put a poll of some sort to find out the interest on place, time and we will have to figure it out.

    0Reply
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Rajiv Patel Welcome to bigger pockets! In your search for good local banks in Houston, have a conversation with Icon Bank - they do good on projects in and around Houston

    0Reply
  • Rene Montelongo
    Houston, TX · Member since 2016 · 79 posts · 29 votes
    9y
    Hey Vijaianand Thirnageswaram , upset I missed it. I had an appt. run late. Still looking forward to another meetup! I'm usually in the area. Looking forward to your post.
    0Reply
  • Rene Montelongo
    Houston, TX · Member since 2016 · 79 posts · 29 votes
    9y
    Rajiv Patel , when Vijaianand Thirnageswaram posts his meetup, definitely come. Friendly atmosphere and we'd be happy to answer your questions. Welcome again!
    0Reply
  • Rajiv Patel
    OP
    Houston, TX · Member since 2016 · 14 posts · 4 votes
    9y

    @Chris Matson I will have to take you up on that! I am currently located in the Texas Med Center area. Do you attend any local meetups? If so, are there any you'd recommend?

    @Jason Hirko Thank you for the bank recommendation. I will add Icon Bank to my list to check out. 

    @Rene Montelongo Thank you! The forums here on BP have been amazing! As far as meetups here in Houston, I been to a few and just went to one yesterday evening. I found this meetup to be the most helpful. @Gordon S sets up the meetings once a month. The next one will likely be at the end of August. 

    1Reply
  • Rene Montelongo
    Houston, TX · Member since 2016 · 79 posts · 29 votes
    9y
    Hey Rajiv Patel , I missed that one. Good thing it's monthly, will be at next one. It looks like it's in DT, perfect. One thing I can say is, the more networking you go to, the more you want to attend. All full of great info and great people. Same with BP.
    0Reply
  • Jordan Decuir
    Rental Property Investor · Katy, TX · Member since 2013 · 417 posts · 171 votes
    9y
    Rajiv Patel Welcome to Houston and BP! If you will be out bear Katy, we have an informal meetup coming up. If you're interested I can give you more info. Best of luck to you!
    0Reply
  • Account Closed
    Investor · Houston, TX · Member since 2017 · 45 posts · 31 votes
    9y

    Hello @Rajiv Patel and welcome!  Good to have another number cruncher on here (I do economics) :)

    0Reply
  • Bradley Chiakas
    Rental Property Investor · Houston, TX · Member since 2017 · 31 posts · 6 votes
    9y
    Originally posted by @Rajiv Patel:

    Hello BP! My name is Rajiv Patel and while I’ve been on BP for a few months doing my HW, this is my first stab at posting on BP. Jumping into real estate as a new investor, my immediate goal is to focus on cash flow with buy & hold properties while I learn by doing with my first investment. In the near term, I would like to acquire a few rentals to build up my semi-passive income while I’m working full time (Financial Analyst)…long term goal is to work on my terms!

    Ok let's cut to the chase: With me being new to Houston (moved out from LA), I've been spending some time learning the market area by scouring the MLS, going to a few local real estate meetups, and simply driving around getting a feel for local neighborhoods. I'm definitely a numbers guys and have spent many hours analyzing potential deals and developing the type of numbers I would want from a rental property. My target: Cash-on-Cash Return = 12-15%, Cash Flow = $400/month, Cap Rate = 7-8%. Currently I am looking at 1-4-unit residential properties and open to small 5+ unit commercial properties.

    I really need help in two areas:

    • 1) Finding a Real Estate Broker/Agent
    • 2) Financing options – big banks vs community banks, portfolio lending, low money down

    I will greatly appreciate any advice to steer me in the right direction.

    Last thing: Folks in Houston, is there a “BP Meet up” in the Houston area? I know many cities have them, just haven’t noticed any here in Houston.

    Hi Rajiv!

    I started investing in Real Estate in Houston in 2013.  I have had a unbelievable experiences with my realtor Scott Weaver. His company ULR has outstanding customer service. I have bought two properties in Midtown and am looking to purchase a third in Montrose/Midtown.  It's a great time to buy because of the oil downturn making it a soft market!  

    I also have a mortgage lender who has 30 years of experience. My favorite part about him is that he always responded immediately to calls/emails.  Let me know if I can help further in any way!

    Bradley

    0Reply
  • Rajiv Patel
    OP
    Houston, TX · Member since 2016 · 14 posts · 4 votes
    9y

    @Jordan Decuir Looks like there is a Katy/West Houston meetup on Aug 3rd @6:30pm. This is pretty far from where I'm currently located, but I will do my best to make it after work. Thanks for the heads up on that meeting. Looks like @Account Closed Thank you for the referrals! I will look into both and be sure to reach out to you with any questions I may have. 

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