All Forum Posts by: Aaron Gordy

@Greg H.and rent for a billion per sq ft.. haha!

I think it goes back to the most basic maxim: location, location location and not necessarily the unit types. I know of one apartment building off Manchaca 78704 that has all one bedrooms and has downtown views. There isn't a single 2 bedroom in that place. Its consistently full. The landlord, for the most part, can dictate pricing. Since the property in consideration is in a blue collar/middle class secondary market then its really about the tenant mix. If the property is in Killeen, Beaumont Port Arthur, Odessa and similar markets then I would think twice about it and probably pass if its all one bedrooms.

 Its probably mismanaged for a reason. Economies of scale applies to smaller buildings. That is, one can't hire a professional onsite property manager to take care of it. Generally speaking, the "manager" that lives in the building is not a professional opening up all kinda liability issues and will not know how to maximize nor maintain a solid noi. I would reach out to a local property mgt company and ask them their thoughts on the property. They will gladly volunteer information in the hopes of securing that business. My two cents. 

@Account Closed Yes, Manhattan is very expensive. I read that Manhattan prices decreased by 3% anyways. 

I will check out the address. That project sounds fun! Yes, lets stay in touch! I totally agree that real estate is not a zero sum game. 

@Robert Grunnah lets hope for lower corporate tax. If that is the case then I am in the flipping business like a madman again. The taxes kill it for me. 

I have learned that same lesson too. The real wealth is build over time with patient money and living smart. My heroes in real estate tend to be folks from another era like Harry Helmsley and Trammell Crow. They set the bar, imo

Cinnamon Path! You sold those properties. I would have only sold those gems if they were on fire. Haha.  Investing in nightclubs is a surefire way to destruction, I think. Unless it happens to be studio 54.

If you ever come across a property/deal with too many hairs on it for your liking then please by all means let me know. Its the problem properties that make the real estate game very interesting! Situations that I have stepped into that make life interesting are meth-ed hoarders, crack heads, gangs, porn production, prostitution ring, rats, raccoons, bad remodeling, half finished construction jobs, fire (but not brimstone), flood, heirs that were in prison...good grief..just a whole bunch of trouble. 

If in NYC, what areas do you like? I had been checking out Greenspoint for a bit. Astoria was looking pretty good too. Curious...

@Robert Grunnah Wow you are in NY. That is awesome. I am happy for you! For those of you that don't know Robert built up a successful business in Austin and was The Man for many years. I bought several of his duplexes over the years on the behalf of clients. Good experiences overall! I thought that you were still here.  

More than anyone, I am quite surprised that you sold properties here. I figured that you were buying and would keep on buying and holding till you owned the city, haha!  Very surprised that you aren't actively holding properties in this city.

Yes, I have also sold properties in this city that I regret selling. I go back and look at a flip and think OMG, I could have sold it for several hundred thousand later, if I just held onto it. Dang. I actually had bought a house in 78704 for 100k I that flipped a year later for $160k. That house is now about 10 years later worth around $400k. Crud!

If the tech center or any other industry has a downturn in the economy that causes prices to depreciate a bit, I am buying as much as I can however I can. I will be looking for the trophy properties then instead of value add opportunities currently. Lets hope...hahaha!  

Best of luck in your new ventures!  

Aaron 

@will 

@Will Yang, @David Foster. The most important thing to consider is the tax implications. If it is indeed true that you have rented it for 3 years and lived in it for the previous two years then you are in that narrow gap of tax free capital gains. You can always do a tax deferred exchange like a 1031 but you won't be able to access that gain without paying taxes. I would sell the property and go on a vacation as a reward..haha. Then I would put that money back to work into other investment properties with 20% down to 25% down and buy two properties that has better cash flow without that crazy high hoa. My two cents. 

I run a property management company and have never been solicited from investors for buying properties.  The properties that we manage are nice condos and houses though with the exception of one section 8 condo. We do come across situations where an owner is firing another property management company or the owner got in over their head. In those situations, we will try to fix the problems ourselves and sell the property.  We will then clean it up a bit and put it on the mls. There are always properties on the mls that with a little sweat equity could become winners.  

Sometimes we will reach out to owners of the properties that we manage to see if they would be interested in buying.  The appetite for risk is varied from investor to investor, of course. 

Becoming friends with a property manager is a good move though. Do keep in mind that they have a vested interest in giving the sweet situations to the owners of the properties that they already manage. 

 Btw, poor upkeep doesn't necessarily mean a bad property.  Poor upkeep could be just a super tight landlord who knows that they have a property in a high demand area and they do not have to do anything to rent out. For example, in Austin Texas, the areas by the University of Texas is littered with old 1940's era houses that are not in pristine shape. There are 50,0000+ students that go to school there and housing demand is intense in the area. So, a landlord will only have to do the bare minimum to rent it. 

Have you thought about bandit signs? How about estate attorneys? How about Divorce Attorneys? Sometimes I see a bad house just by driving around 

@Austin Richey

In addition to the above great suggestions, there are a few good credit simulators out there where you can play what if scenarios.  Just google it. Capital one has one. Wells Fargo has one too. 

@Brandon Halley

You should reach out to a mortgage broker that specializes in investment property. I would tell him/her your scenario and he/she will find a bank that will work that angle. Where is the property at? I know many mortgage brokers in Austin area. They are always trying to solicit me for business.  The mortgage broker is the way to go, though. Best of luck.  

In the basic principles of being a real estate agent there is a fiduciary duty. If the seller was a client then you had a fiduciary duty to the seller. You can't just switch it up because its financially advantageous. if the seller was not a client of your brother the realtor then that is a gray area. Did you get the iabs (information about brokerage services) as required by trec signed? I sure as heck would have. We are supposed to look out for our client's best interest....just saying

I don't know if what you did is right or wrong as I am not an ethics judge. I do know that there are tons of ways to make money in real estate with win win situations not win-lose or lose-win. I am not interested in any of the latter situations.