All Forum Posts by: Brian Pownall

Want to hear the latest on multifamily debt and ask questions to owner of a loan brokerage? Join us tomorrow night on Zoom and network afterwards! Markets have been moving quickly and it is more important than ever to understand your potential debt terms. Click here to sign up 👉👉 https://us06web.zoom.us/meeting/register/tZMtdu-tpz0sE9A5cYEVbJhVehHBL9y76JnO

God outbid by several million on a larger multifamily property recently. Generally agree, tougher to make the long term white hot bullish thesis here.

Lot of good resources to estimate potential costs. Talk to a local PM/GC in regards to your business plan and estimated costs (ie new cabinets, new flooring, etc). Also some free resources like Heritage Construction. 

On sales price, you should estimate what future NOI will be and use your best estimate of submarket cap rate plus some expansion on that number to be conservative across a hold period.

@Account Closed some of my thoughts below 👇

- Population: like to see population over 200,000 or over 1000,000 within ~20 miles. Should support enough tenants and deal flow.

- Population growth: look for over 1% a year, easy to use Census data to compare to other MSAs

- Median household income: 3x average rents, growing trend over time. Generally try to look at areas over $40k.

- Jobs: diversified jobs (not just military for example) and growing job growth over last 3-5 years

- Crime: lower crime rate than average city, or a downward trend

- landlord and business friendly: avoiding onerous rent control laws

- Positive supply/demand trends: positive absorption of apartments, review pending permits vs. existing supply, average single family home price vs. average multi rents

- Quality school districts - Niche.com or GreatSchools

@Hayden Harrington nailed it. You cannot go wrong in either city as both have strong macroeconomic headwinds and are setup for long term success. However, everyone more or less reads the same research and as you pointed out Dallas is priced higher than Houston and is crazy competitive. 

We love Houston for the population, job growth, world's largest medical center, energy (not just oil/gas but also renewables, midstream, etc), tech (see HP new building in Spring/Woodlands), and the business friendly environment.  The surrounding suburbs can be a great place to invest for working professionals who want more space or families looking to rent. Be careful or at least aware if you are buying in a flood zone as this can be a major risk.

@Ben Murphy that is very exciting, sure wish I had jumped in at an early age. What sort of real estate are you looking to get involved with? Plenty of great people in the space with an mindset of abundance that you should connect with.

Hate to break it to you, but generally not going to see those sort of cap rates in this economy. See a graph below of national trend. I recommend visiting Marcus and Millichap, NorthMarq, or CBRE sites and downloading their 2022 outlook. Should give you a good national overview.

Excellent overview for us here in Houston, thank you

Check out the below picture on today's Amazon delivery to kick off my 2022 reading list. I have shared what I ordered as well as what I have on my Audible and Kindle below. Excited to start reading these! What are you guys reading, anything I should add to the stack?

Disrupt Equity runs a meetup once a month at Pitch 25. Blue Oak runs a meetup typically down at Wildcat. Both good events for MF investors.