Wilson Investment Properties

6 Replies

Hi,

   I recently came across some good investment deals advertised by Wilson Investment Properties (a Silicon Valley firm specializing in properties in Dallas-Fort Worth area). Before I invest I would like to find out whether it is a reliable and trustworthy firm. Do you have any experience with this firm or know of someone who has invested with them in the past?

Thanks,

V

Mr. Wilson has been around a long time and is a fixture at the San Jose REIA meetings etc.

can't vouch for the investments themselves.. My self personally I would never buy rentals in Texas

property taxs are way too high and soil conditions can really fubar you..

your paying high CA income tax  and then buy a rental that has some of the highest property tax in the country... that's my thoughts

I bought a couple properties from Tom back in late 2011. Nice enough guy, but after that I built my own team in DFW (then Atlanta Metro) so I could cut out the middleman. Collected a few more properties for myself and sold many as TK to folks in the Bay Area, or retail to owner occupants.

I advise you to confirm the tax numbers you are being shown. Are they the numbers from the previous year when the owner lived there and was getting $1000+ knocked off via the homestead exemption, over 65 exemption, etc? Was the property assessed for $40k less than you'll be paying? If so, your mileage will vary to the tune of a couple thousand $ more in property taxes. That won't help your cash flow. 

http://www.dallascad.org/TaxRateCalculator.aspx

https://taxonline.tarrantcounty.com/taxweb/taxcalc...

Jay is correct about Texas. You will not cash flow consistently, especially buying TK. The property taxes are too high, and turnover costs combined with CapEx will be higher than you expect (hail and wind damage to roofs, blown down fences, AC overworked and dying prematurely, the aforementioned clay soils, etc).

On those two TK properties I bought, my net cash flow between October 2011 and August 2016 (when I sold them) was about $6000. Though they did appreciate about $70k each since I bought at the bottom of the cycle. So if you buy in a great neighborhood with solid schools and no empty land within spitting distance you may get decent equity buildup over time via appreciation and principle paid down. But you're more likely to feed those properties than cash flow.

Happy hunting!

I would not consider WIP. It's a sales organization that resells deals put together by promoters who lack reputation, credentials or both to do it on their own. No highly reputable deal sponsor needs a middleman sales organization to attract investors. By acting as a middleman WIP burdens all their deals with additional fees and makes all deals even less competitive. To summarize: Un-competitively high sponsor compensation, low volume, high minimums, very little skin in the game. Having no skin in the game incentivizes WIP and deal promoters to push all the risk to the investors. Most of their deals are real estate equity deals but both WIP and deal promoters have not been through a full real estate cycle experience. Or if they were, it was as individual investors, not as a company with fiduciary responsibility for the investor's money. Tom appears at sales events to pitch a new deal otherwise he is a dormant semi-retired individual. There are literally hundreds of deals available to investors with better fundamentals, proven track record and performance.

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