All Forum Posts by: Cody L.

@Tyron McDaniel:   Yeah, still "inside the (610) loop", but a bit more east.  Mostly SE inner loop but a few NE.   Though I have some that are directly east of Montrose.  5th ward, midtown, etc.

@Colin L.:  That's the plan.  But I'm here in San Diego (like you) so some projects are easier to do remote than others.

@Omer Husain:  Not really.  It wasn't anything that anyone else couldn't do.  I bought a few years ago before Montrose got insane.  There were several buyers.  I'd love to have bought more but you can only get so much financing and that was always the limiting factor.  I did a lot of non standard deals (wraps, seller financing, assumptions) to get more than my balance sheet would otherwise allow.

Now I'm buying just to the east where prices are 1/4 but rents are 2/3 (making the rent:purchase ratio much better).  That's where there will be upside as even the current rents would support a double in unit price where as Montrose is pretty stretched on what you can pay per door with current rents -- and all the new class A will cap what the class C garden apartments can get

I'm sure in a few years, the properties to the east will go up but buying that stuff now isn't too impressive.  It's the only smart move out there (IMO)

But **** -- I could be totally wrong about all of it.  Who knows... :P

5% is a lot better than 6.75%.  And given you're an out of country investor, 5% isn't bad.

cash on cash of 4.5% is pretty low though.  Esp with financing.   Not trying to be rude but you could throw a dart at a wall and hit a house that would give you better returns than that (in Houston at least).   

Looks like a place I bought in the midtown area of Houston (not sure what to do with it either...  But it has gobs of history)

@Fred Heller:  I own a few hundred units in Montrose.  I used to own more but I've sold into the craziness, and used the profits to buy far more units iwth better cash flow just to the east.  

Almost everything I own is inner loop.  Mostly the SE inner loop but I have some NE stuff as well.

So about 1/3 Montrose, 1/3 midtown (and near midtown), 1/3 SE inner loop

Require a good amount of option fee.  Forget EM.  Whoever will put up the most EM to show they're legit and plan to close, go with that one.

Other than price, option fee is always my #1 consideration when selling.  And honestly, I'll take a high option fee contract even if the pricing is a bit less.

I use that same theory when buying.   I'll tell the seller "I know I'm not the highest, but I'm going to close for sure.  I'm willing to go $5k hard day 1".    May sellers will take a lower price for a higher chance to close.

@Fred Heller:  Same.  I'm having a hard time finding deals lately (multifamily).  I was buying a new builiding every few months.  Now everyone is a buyer -- no one is a seller.   The only sellers on loopnet are fantasy seekers that are listing stuff at their "I don't want to sell, but I would at THIS price" pricing.

That's why the only stuff on there is LoopRot*
(*tm for 'LoopRot' coming soon :)

@Patrick Britton:  I don't disagree.  I'm actually an agent myself (use it mostly to help with my own deals and don't really want to list a property unless it's mine or someone I know).  I just find that most agents provide little value beyond simply listing the property on HAR.   So when I get 100 letters asking to be the one to list them on HAR, they get tossed.

If someone sends me a letter saying "I have a buyer that's looking for a property like you had listed.  Would you consider selling it?", that catches my attention.

But like I said, this is just how I react personally.  I'm sure those letter blasts do good -- and get listings (the main goal of most agents), or else no one would do them.

For what it's worth, I'm a SoCal investor (San Diego) who buys in Houston, TX. I'd love to buy in San Diego but the pricing is insane and people think that a proforma 4 CAP is awesome.

So don't worry about buying outside your state.  I go to Houston maybe 1 or 2 times a year and have 1000+ units.   Get a good management company and you're golden.