All Forum Posts by: Lee Hampton

@Ian Maina  Mentors are like a box of chocolates….. (See movie Forrest Gump, if you are too young to get reference). In any event, I’d engross myself in all things real estate; articles, books, webinars, online forums, area meetups etc... If you encounter a concept that requires clarification, BP is quite helpful. Get a broad understanding of the business before you seek out a professional mentor. Mentors cost $$$$, $30k+ and if you are not positioned, you will only get a broad education with very little depth. A mentor should add depth to your existing broad knowledge base; they should work with you to close your 1st deal. Months ago, someone was referred to me for coaching. The individual had paid $30k+ for a mentorship program and had no deals in hand, no imminent path to securing a deal and only broad knowledge of the business. I’ll end with an analogy/story; I was an engineering tutor in college. I had students who arrived with no knowledge, thus at the end of our tutoring session, we had only covered the basics and they were ill prepared for the exam. Others had read all material, completed all homework and even sought out additional materials. Our sessions were targeted and achieved maximum effectiveness. They were ready for success. Now, I accepted both as clients and charged the same amount. (I was in college, I needed the money). Most mentors are like I was as a college student. Today, I don’t take on clients unless there is a clear understanding of “what success looks like”. You should not sign-up with a mentor unless you clearly establish “what does success look like?” But I suspect, you have a ways to go before you can make use of a pro mentor.

If you plan on developing / building small multi-family in Houston, there are sources of information that you need to become intimately familiar. It is a lot to absorb but it is either absorb or hire the right person. The three documents are;

• City of Houston Multi-family minimum standards
• City of Houston  Code Chapter 42 developments and platting
• City of Houston Code Chapter 33 planning and dev

I get at least 2 calls per month from someone who has a lot in which they want to build multifamily. With two calculations from the ordinances, I can usually rule out what is typically a vision that fails to comply with Houston’s allowable density and parking requirements. The two calculations are;

• Max density is 27 units per acre
• Requirement of 1.5 parking spots per 2bdr unit, range is 1.25 to 2 depending on unit size.

There are many other requirements, but these are the 2 most prevalent gotchas.

Very similar regulations are in place in most cities. I am a small multi-family developer, so I’m speaking from first-hand experience.

I get frequent requests to mentor. It is something I’d love to do but in this business, time is money. But I hate hearing someone tell me they spent $30,000 for a real estate program and yet were not given a realistic path to get started. Needless to say, I’m wary of these programs. The old saying is “those that can’t do, teach”. I’m only applying that saying to Real Estate. While I can’t change that, I can commit to taking on a virtual cohort of 8 mentees. It will not be one on one, but rather me with 8 mentees simultaneously. I’m committing to having one group session / month for six months and will cover A to Z. It will be interactive, not a lecture. My bio is on my website(www.leehampton.com) if you want to peruse. Email me at [email protected] if you are interested.

I'm also looking at Austin.  I'm Houston based but lived in Austin long ago.   The answer to your question really depends on your strategy and budget.   Luxury w/ major budget, you can look anywhere.   Relatively lower-end, Southeast Austin if you want to be near downtown.   

@Sakib J. 
Fort Bend and/or Harris County;  same comments apply.   You have what is referred to as a holdover tenant.  The eviction moratorium applies to holdover tenants as well.  Thus, the lease expiring on 12/31/2020 is irrelevant. The wife is not on lease argument is not likely to fly either, she now has authority over his estate and thus speaks for him.  Did rent or deposit come from an account with her name on it?  If so, you took her money, but now you say she has not rights.   See, It's a rabbit hole that may take longer to navigate and will be more expensive than waiting for moratorium to expire on June 30th.  Your lawyer should know all of this.  

Also, to Matthew's point, 2/3 of all loans are conventional.

There is a CDC eviction moratorium thru June 30th, which the Texas Supreme Court has issued an order of support.    Additionally,  Harris County, which is where Houston is located has heavily leaned in favor of tenants during this pandemic.  I would not be surprised if your court date is delayed once again.    And even if court date is not delayed, all the tenant has to do is present a declaration to halt eviction due to Covid via a standard CDC form.   You should press your lawyer to understand if there is anything they can actually do before June 30th.   I hope you are paying your lawyer a fixed price for his/her services, not an hourly fee.    I'm on the ground in Houston w/ several rentals,  be wary of any advice you get that is not Texas / Harris County specific.    Good luck.

Fellow OOS investor here targeting Al, however a different city.  I'd be interested in the analysis of how you arrived at Montgomery?   What strategy are you pursuing, Buy& Hold, Flip etc..

SFRs and duplexes are simply vehicles to get you to a destination. At this stage, buy whichever type property meets your pre-established cash flow criteria. Don't lock in on multifamily at this stage, you still have some learnings ahead and it is more important to take a first step. Small multifamily demand far exceeds current supply, thus it will be more likely to locate an attractive SFR deal. On the loan, you will receive better terms if your expressed intent is to utilize the property as your primary residence, but you have the right to change your mind, later. Later could mean as little as one day later. Lender will want to see income of last 2 years tax returns, W2 vs 1099 is not as material.