All Forum Posts by: Jarrod Weaver

Go Daddy also has a simple all-in-one website builder as well. Not difficult to do, but takes a little time.

My advice never changes. 1) Buy distressed properties to provide instant equity. 2) Follow the BRRR method. 3) Maintain strong reserves. 4) Don't allow yourself to get over-leveraged.

Not very exciting. No program to follow. It's a very conservative plan which allows me to sleep at night and maintain a stable marriage for 24 years. #DramaFreeInvesting

I have tried (unsuccessfully) working with the delinquent tax list for some time. The data file is enormous. The amount of dirt you have to dig through to find the gold is a challenge. Has anyone found a good way to sift the data to make it more usable?

Check your deed restrictions. Is subdivision even an option? In most neighborhoods it is not.

The point @Joey Sullivan made about Lockhart not being closer to I-35 can also be considered an advantage. It's difference separates it from the I-35 corridor market dynamics allowing it to stand on its own instead of being a commuter community.

I don't live or invest in Lockhart but appreciate that it has a stand alone economy that isn't dependent on the economic health of Austin or San Antonio.

No surprise there. Prices are up, days on market is up and sales are flattening out. Instead of looking at the market as a whole, adjust to a lower price point and the numbers are still fabulous.

The Jan 2017 issue of Tierra Grande (published by the real estate folks at Texas A&M) has an interesting article exploring the relationship between Texan's income and housing prices from 1975 - 2015. Overall during this period income has outpaced increased housing prices. More recently though, since 2012, (Who really cares about 1975 anyway?) that metric has inverted with housing inflation escalating significantly more than incomes.

This isn't a monumental or alarming shift - just the natural ebb and flow of the market. Be flexible, have your toolbox full and most importantly, know how to expertly use the tools in your box.

Was able to get a 1,500+ sq/ft 3/2 under contract yesterday that has tremendous upside potential. It's less than 4 miles from Georgetown and is in the preferred school zones. I normally wholesale properties like this, but I think this one will be a hold.

Title fees are like anything else being sold these days. One firm may quote a low price but has a long list of BS fees that add up quickly. As mentioned previously, the insurance rate is state controlled but the remainder is not. Don't choose a title company based on price alone. This piece of your team can make or break your business. Gladly pay for professional service - the ROI is infinite.

@Jeff B. unless the investor is well capitalized (most are not) I stand by my statement that the new construction purchased at, or near, retail is a fatal mistake. Here in the Great State of Texas the tax rate in new neighborhoods will bring you to your knees at just over 3%, including the MUD tax. Add the HOA fees and there is no profitability. When calculating cash flow at 0.75% (or less) it leaves the buyer in peril if he/she doesn't have significant reserves. This calculation never includes management or cap-ex which takes it even lower.

Another issue we have is a lack of appreciation. On my personal SFR I calculate a theoretical appreciation of 16% after owning it 15 years. The increase has only really happened in the last 3-4 years when this neighborhood was completely built out. At ~1% annually there isn't much to count on here. The increases are based on rising construction costs, scarcity is only a minor factor.

You are also talking about MF properties which are few and far between here, if looking for new construction. The geniuses at the local cities here talk all day long about affordable housing while adopting regulation that prevents MF construction unless it's a 100+ unit apartment or 50+ unit condo/townhouse. The councils are completely opposed to 2/3/4-plexes or small apartments like you mentioned.

Keep in mind that I was referring to a retail SFR's as an initial purchase. With expenses as high as they are here and nearly no appreciation (negative for many years in new neighborhoods) any unexpected negative event or vacancy can cause a default. Which there is no reason for if one knows where to look and what to buy for instant equity and strong cash flow.