All Forum Posts by: Jarrod Weaver

Being optimistic about a market is awesome, but realize the change happens almost overnight and is often tied to a catastrophic event. (i.e. 9/11) No one saw it coming. Just like in the stock market, real estate investors need to have diversity in their portfolios, must not be over-leveraged and/or not in long positions betting on appreciation.

If you have significant equity in your properties and they provide a sustainable level of cash-flow then an economic downturn won't be devastating. Most investors look for a good market like Texas and buy $200K properties with little money down. With debt service included a property like this might only net $200/month. No problem as long as there are no hiccups along the way. Missing a single month or rent will make the annual NOI negative and 2-3 months can lead to bankruptcy.

It happens all the time. This is gambling not investing.

Rockdale is a depressed blue-collar town that hasn't been able to rebound since the main employer (Alcoa) closed its plant there. It may work okay for a rental but I'd never think of doing a flip there. I don't have physical evidence of the actual numbers but my educated guess is that it has a net loss of residents and jobs.

It's not that far from Austin; go have a look.

On Friday Jeff Ward did the math on ATX immigration and it was just over 190/day. Amazing.

Actually, Frost Bank does a great job when your portfolio grows and you're required to transfer to commercial lending.

Lone Star Carpets - Curtis Riley - does a great job on all my flooring issues. Tile, carpet and vinyl plank. PM me if you'd like his contact info.

@Jason Clendenen I'm interested to know your pro-forma cap rate vs actual. If you are willing to share that with the group it would be an awesome teaching tool for everyone who reads this.

I wish you the best of luck with these and hope you have great success in this difficult section of the market.

Google up Paul Nehrbass at The Federal Savings Bank. I know they can write their own warranties, so this may be something that will work for your situation.

@Jason Carter's estimate is pretty solid. You can save serious finish out expense by building with a 100% hardiplank exterior, using vinyl plank flooring, and stock hardwood cabinets. With a bit of design work you can make these products look awesome, not just a way to cut corners.

REIA meetings are a nice place to meet like minded people and discuss current market topics, but it is far more important to be seeking deals. The core of being a real estate investor is turning deals. If you have deals the networking with real players will follow. #DealsFirst

Interesting thread. I'm not sure what the code is for replacing water heaters, but a friend who is an insurance agent told me that an improperly/illegally installed unit can result in any damage claim not being covered. The bureaucracy and regulation investors face is endless and expensive.