Beginning Houston, Texas Investor

16 Replies | Houston, Texas

Hello! I am new to BP and to RE investing. I am 29 years old with a business degree and current full time career in Hospitality/Food Service. I am a partner in a startup coffee shop, and I advise another restaurant franchise remotely.

Managing two concepts has taught me the skill of planning, executing, and staying disciplined with my time. I am hoping these skills will be valuable in building my relationships locally with other real estate enthusiasts and managing my RE portfolio.

I am currently in the process of building my RE knowledge, relationships, and deciding on a strategy to focus on (BRRR, Buy & Hold, Flip). Almost all of my free time is being spent reading, listening or watching something related to RE investing. I am open to any recommendations for someone in my position that is new and juggling multiple opportunities. In addition, I am certain I am going to need to form some relationships with:

1) A local investor friendly agent who wants to build a long term mutually beneficial relationship. I understand you have to move fast in this market, so having someone experienced is important

2) Local, small banks that can assist me with financing

3) Local contractors with a good reputation to do work if/when needed

4) Other local investors or RE professionals who are interested in forming relationships and occasionally meeting up to pick each other’s brains

Please feel free to reply or connect if you're interested in building a relationship in one of those categories (or just introducing yourself) or if you can make a recommendation! I am reading/hearing that Houston is extremely aggressive, so as a beginning investor, I am thinking of focusing on some of the suburbs of Houston (Sugar Land, Richmond, Rosenberg, Katy, Cypress, Etc.). I'd like to hear what everyone else thinks about where to start. I live in the Fort Bend area, currently. 

Hi Brian. Those suburbs are equally as competitive. But you can do it! Just don't overpay for properties in order to "win". Develop your parameters and stick to them. In other words, maybe you are looking for a SFH rental and want to cash flow $300/month and achieve 10% COCR. If so, analyze deals, and don't pull the trigger if it falls short of your parameters. But when it *does* meet your parameters be ready to take action.

Hey @Tony Castronovo , thanks for the advice. I see you posting frequently on this board, and you are a big help, especially for us newer investors. 

I am in a similar boat re: finding a good deal here in NW Harris County. My wife and I are very fortunate to have a combined income that allows us to be aggressive with funding. However, seems like deals are very dry, especially with property taxes eating up most cash flow. Almost every neighborhood in the NW suburbs hasn’t been growing 10% in value over the past 3 years. Great for internal rate of return, terrible for taxes! 

Brian, there's a RE meet-up that focuses on Southwest Houston and Fort Bend County the first Tuesday of every month. Send me a message and I'll send you a link with the information.

Originally posted by @Collin Garbarino :

Brian, there's a RE meet-up that focuses on Southwest Houston and Fort Bend County the first Tuesday of every month. Send me a message and I'll send you a link with the information.

 Do you know of any similar meet-ups for Katy, Cypress, Spring, Tomball? General NW Harris Co? 

Maybe we need to start one!

Originally posted by @Collin Garbarino :

@Warren Brown I'm sure that some exist, but I've only been working the SW side. Houston is such a big market!

 No joke. I moved here after finishing school in 2015, and I was stunned by the massiveness of the city. Living out in the burbs means we spend quite some time in the car. Thank goodness for podcasts!

Originally posted by @Collin Garbarino :

Brian, there's a RE meet-up that focuses on Southwest Houston and Fort Bend County the first Tuesday of every month. Send me a message and I'll send you a link with the information.

Just sent you a message, Collin! Let me know if you receive it. BP keeps crashing on me... 

Thanks for the tips, @Tony Castronovo ! Would love to connect if you’re ever at a meetup @Collin Garbarino mentioned (or if we start our own). Interested in talking to investors who have been in the market to build relationships and hear stories. 

Keep hustling and leaving no stone unturned, @Warren Brown . I’m new to RE investing, but the common theme I keep reading is there are deals out there to be found. You just have to be patient and follow the advice given - if it doesn’t meet your criteria walk away and keep looking. 

If anyone is interested in having or starting a SW Houston meet up , I am a partner in a coffee shop startup in SW Houston. I would love to host other BP members over great coffee! I’m looking forward to meeting anyone who’s active in our market. I have a feeling we can help each other long term. 

Originally posted by @Tony Castronovo :

Glad to help @Warren Brown. Taxes are a killer. Established neighborhoods with homes built in the 70’s & 80’s will have lower taxes.

@Tristan S. do you know if there’s a group that still meets at Starbucks on Saturdays?

If there is a group, I would love to meet and buy y’all some coffee. Even if y'all haven't met in a while, it could be a good excuse to put off some chores around the house on a Saturday morning 😉

@Brian Alfaro Even though I am in NW Houston, I would love to come down and try some of your delicious coffee. 

a buddy of mine kept bugging me to find him a rental property (SFH) in Houston. Found one on the MLS. $74k. He put in about $12k. He rents it for $1,000. Not a home run but he makes a few bucks and he got over his initial fear of starting. I suspect he can refi soon and pull all his $ out and have something making about $200/month.

Point is there are still deals to be had. This was just some random MLS home I pointed him to so he'd get off my back 😀

Sugar Land, Richmond, Rosenberg, Katy and Cypress are very competitive as @Tony Castronovo said. So, @Brian Alfaro become an expert in the area you are searching. That way when you find a deal you can quickly pull the trigger. 

I know Katy; especially Old Town Katy, that when a deal presents its self I am quick to act. 

I suggest considering other asset types other than SFH. There is the commercial side of RE. Industrial, Retail, Mobile Home Parks, Storage, Land, Apartments, Office, Notes, and etc. Within each asset type there are different areas of focus. Or maybe consider ancillary or complementary services to RE such as Private Lending, Mtg Broker, Media\Marketing, Capital Raising, Appraisals, and etc.

Just a thought.  Keep working at it and network with people.

Originally posted by @Michael Dang :

I suggest considering other asset types other than SFH. There is the commercial side of RE. Industrial, Retail, Mobile Home Parks, Storage, Land, Apartments, Office, Notes, and etc. Within each asset type there are different areas of focus. Or maybe consider ancillary or complementary services to RE such as Private Lending, Mtg Broker, Media\Marketing, Capital Raising, Appraisals, and etc.

Just a thought.  Keep working at it and network with people.

 A colleague of mine has recommended similar assets as well. Are you versed in commercial development? Correct me if I am wrong, but doesn’t commercial require a lot more capital up front?