All Forum Posts by: Hayden Harrington

 We are hosting a multifamily meetup in DFW on November 29th if you'd like to come out. Free food for everyone too!

Stick to the suburbs in my opinion. Have lived in Houston for 20 years and own large multifamily deals here. Inside the beltway is likely going to be more challenging than something outside. It'll be harder to find, but worth the effort if you can. Houston has a decent amount of crime and delinquency, so picking your location is key. 

Congrats on taking the plunge! I hope the deal goes well and good luck on your investing journey! 

Welcome to the community! Houston is great! I am actually moving there from Dallas at the end of the year too. The suburbs are great and the builders down there are putting in some pretty amazing neighborhoods for the price that have some incredible amenities. It's a great place to invest too. I have 772 units down there (The Henry branded apartments) and looking to add more. 4th largest metro in the country and very affordable with average rents at only $1,297! In the good parts of town, there is a lot of runway for rent growth and it's very compelling for families to move down there with quality schools, lots of jobs, and affordable homes. 

It will take some time to develop relationships to the point where someone is willing to be a co-GP or KP on your deals, especially if this is your first one. Your track record and experience are going to be very important when talking with potential partners. Most first-timers on larger deals don't lead because there are a lot of moving parts, so bringing a deal to a lead sponsor may be something to consider. Putting yourself out there and going to networking events is going to be one of the best ways to develop those key relationships. Good luck with your new journey! 

 Find a good SEC attorney! They will be your best resource for how to properly structure a syndication and how to follow SEC guidelines for raising capital.

Congrats!! 

I believe you can find value in almost any market, but I am currently building a portfolio in Houston at the moment. Bought 588 units down there last year and looking to add more this year. Would love to buy in Dallas (where I'm based), but it's incredibly competitive. Im originally from Houston too, so know the market very well. We can also get a more attractive basis than Dallas and we don't have to be as aggressive on assumptions. 

Our growth strategy is to focus our efforts in certain areas so we can build our portfolio to a size where we can bring on asset managers. It's much harder to keep track of everything when they are spread out in different states without the proper infrastructure for asset management.  

A good COC return is relative to the standards of the equity purchasing it. If you are the only one funding the deal and feel good about 6% cash flow, then why go by someone else's rules? You cant make money in real estate from the sidelines.

If you are working with investors and they are used to a return that is higher than 6%, then that is a different story. As you scale in MF, it gets more important to make sure your business plan is sound and you have all your ducks in a row. Bigger deals require bigger dollars and mistakes get more and more costly (especially when using OPM).  

Stafford / Missouri City is a fantastic area. I'd stick to the suburbs of Houston and you should be able to find some great opportunities. Pearland, Missouri City, Richmond, Katy, Jersey Village, Cypress, Tomball, The Woodlands (from here originally), Humble, etc are all great areas. I am based in Dallas and bought two MF deals in Houston last year because the pricing and competition up here in Dallas is so intense. Whatever you end up pulling the trigger on, just make sure to drive it and really understand what you're getting into. 

There are great schools down there in the suburbs and it is very affordable for new families. There is also a lot of great healthcare as well, so I'd try and focus on areas that check those two boxes so you can have a strong tenant base. Markets like Baytown, Pasadena, LaPorte, etc are very dependent on oil & gas so they tend to be a little more volatile. 

Good luck!