All Forum Posts by: James Evertson

I'll stop by

Anybody here attending mhi next week in Vegas?

My thoughts are one should pay less attention to cap rates and more to value per unit and calcs such as mirr and free cash flow. After running your numbers and concluding a solid value per unit, then back into your cap rate to verify it's reasonable with market expectations. You really need to know your market values for the asset classes you're looking at.

Whoop!

My gut tells me Houston contractors gonna be pretty busy for awhile...

Welcome!

You certainly want to account for the expense level you will run the property at in your valuation but do not overlook deferred maintenance you'll be spending since you aren't a slumlord. If you offer solely based on the value you'll run it at you're probably overpaying. If you happen to know any mf appraisers in the area you need to be talking to them about general market cap rates, value and expense comps.

Of the 4 metros mentioned only Houston is largely reliant on energy and it's mostly refining. Growth might slow in Houston but not in the other metros. Favorable business conditions and a reasonable cost of living are largely driving growth. It's the tertiary markets: midland/Odessa, eagle ford, etc that will be impacted in a meaningful way by oil prices.

Howdy Ag, Class of '05, work in multi family lending, and with similar ideas/goals to you. Used to live in north SA, now in north DFW. PM me sometime if you want to chat. James

I work for a dus lender. PM me if you're still needing info. I live in Frisco area as well.