All Forum Posts by: Jason Bible

Howdy BP,

I am a real estate investor in Houston Texas and started full-time investing in 2013.  I started a wholesaling and flipping company that has closed nearly 500 deals.  I sold that company in September '18 and started buying small multifamily.  

A couple of friends of mine recommended I start regularly posting here on BP.  So I thought I would start this thread and see where it goes.  Ask Me Anything, hopefully it is real estate related.  

-JB

There are two challenges with SF

1. Exp ratio - virtually no one calculates ratio anywhere close to 50%

2. SF does cash flow, but CF is not profit.  Dont believe me?  check your schedule e.

Where you really make money is appreciation.  

Deprecation 

Ben here's the hard part of this business "who's 70%?"  If I am using cash, my own crew, and I constantly shop for discounted materials at HD my 70% is way higher than a new investor because I am more cost efficient.  

What level of rehab?  If I am building above market product ill never be close to 70%.  For example I put vinyl plank throughout my rentals, even if the floors are great.  I also replace everything at half life.  Water heater older than 5yr, I replace it.  15yrs on HVAC, replaced.  

Glad you liked the article.  My former company, RightPath Real estate's blog is the home of all my old content.  There's some great stuff in there.  New website, blog and podcast should be up and running in a few weeks.  Otherwise just head to my facebook page.  We post live videos daily.  

Make ready.  This property is down to the sticks so cap ex and MR shouldnt be too expensive

Those deals on the board are just our partnership deals.  Rob and I have about 12 or so that are duplexes and singles.  I built a company that flipped almost 500 houses over 6 years.  I sold that company to my business partner in September.  We want to buy about 100MM in assets over the next 5 years all buy and hold SF, AirBnB, and multifamily.  I dont think we need to build a huge investor focused team to do so.  However, we are building a team under Keller Williams to help us buy more, possible access to pocket listings, and represent investors and retail buyers and sellers.  

I've never had much luck working with a core group of wholesellers.  The Houston market is extremely efficient for wholesaling deals.  So a lot of the deals I see are priced, and sell, so high that it doest make much sense for my style of investing to spend a whole lot of time or money investing in a wholeseller. 

who I use, nationwide https://insureinvestors.com/Index.html

FNMA, cash outs 6months. Mention my name and he will know what you need. He does a gazillion loans a month with investors in our group.

Small multis in Houston are hit and miss. I am seeing GRM on appraisals at 90~100. Subject too appraisals coming in at 85-110k/door. I just picked one up in Baytown for 65, with a trailer. Rehab for 65K, appraisal came in at 160k gross rents, with the trailer at 2450.

Picked up a few more on the southwest side of town on a lark and rents are already up 27% since October.  

They are out there. Most of the deals we are doing right now were pulled right from MLS.