All Forum Posts by: Shahriar Khan

@Tony Castronovo For Multifamily -- Seller are trying to sell projecting rent growth and no future recession/correction where buyers are expecting a recession and price correction. We are seeing less property walks and tighten offer. Yes, interest rate is helping but gap exits .New syndicators are still being very (i mean very ) aggressive but passive investors arent funding those deals given the crazy assumptions. It will be buyers market soon when those recourse loans become due 

@Vijaianand Thirunageswaram Rental/Flips : Market took a nose dive . Its where new investors are backing out and we are slightly getting into buyer market 

Land Deals ::: Its keep on going ... :) 

In simple words, Houston .. get your CASH ready .. we are going to have a end of summer sale coming up. 

PS: California/New York/Florida already turned negative ... 

@Sam G.  i would 100% agree with @Cameron Tope says.... to win .. everyone must bring something to the table... you need to think about what is that you bring on the table to win ... Houston is a very sophisticated market with a lot of funds on the side line ready to be spent  which gets activated within an hour. 

Based on what i see/have seen/did/do ... If i am new player .. i would do the following:

1) Save up cash that i can spent within minutes 

2) Become master analyzer of a given area so that I can analyze the deal within minutes  and know the buy/sell characteristic of every single block on that neighborhood 

3) Network heavily with wholesellers (only individuals... AVOID larger teams..i have nothing against them as they have great buyers on their list which will not benefit you)  .. Wholesellers are still the best deal flowers in the market and someone always will send that THAT ONE you need. Faster you can pull the trigger .. more the chances to win cause everyone knows when its a good deal.  

All of the above will increase the probability of success .. and it works :) 

@Derek Morrison spend time ...on census.gov data and you will start seeing trends ...its fun :) 

Happy hunting 

I use http://daram.com/ exclusively unless i need to go outside Harris/Brazoria/Fort Bend.  They have everything in house (if needed) and competitively priced. Usual turn around is 7ish days plus weather delay. 

@Emily Hobbs 

1) Review deed restriction to see if they would allow it 

2) If no issue , assuming parking requirements are met, typically you can build a second floor leaving first floor as garage . 

3) If you have a very large property (20K SQFT +) or larger then possibly you can get away with duplex. Either way, Harris county allows 900 SQFT max for secondary dwelling structure 

4) Get an architect to layout the plan and construction drawing and have then apply for permitting as well (around 1.5-2.5 $/SQFT for everything)

5) Once you have construction drawings , start getting bids .

Good luck. 

@Yaping Zhang yes..a quick call will help. also you can fax in the form .. 

@Yaping Zhang you can go to county website and you can down load protest form from there. If you have purchased from MLS/some kind of platform then contest is easy which will be showing you closing statement and if not then need to pull comps and file a protest . They would typically go down a bit during first round and you need more then you need to contest in front of a board. 

Also, if you dont want to do all theses then you can fire tax appraisal folks who would split 50/50 of all savings. 

@Edward Emerson try finding someone who can work with you on your MLS access.

Redfin and Zillow will be almost garbage in Texas Comps since Texas is NOT a disclosure state and their ARV calculation has a huge margin of error. For disclosure states , they work great , within +/-3% accuracy .

@Chris Murdien

If seller has given you financials and you are fine with it and 100% Non refundable EM could be one way to go. This was seller knows you are serious. 

If she hasnt then SCREW it .... gone those days where you put hard EM day one unless you know for sure 1) its a value add and 2) you own something next door and you WANT IT. 

Having said that, you should be ok with putting EM down with exit consideration during due diligence. Its a very normal practice 

Back to valuation ..below is something we are using for our valuations (5 yrs and 10 yrs life cycle) ..PM you if you needed anything else and happy to go over with you.  

Good luck and keep us posted... 

** We ask for T24/T36** 

Income: 

1) Rent growth - flat for next 3 yrs and inflation for next 3 yrs 

2) Any other misc income increase by 2% aka inflation 

Operating expense (Big ticket items - Lets assumes its a C property)

1) Tax - 85% of purchase price and then 3% - Texas is a non disclosure state 

2) Insurance (General Liability and/or flood) (example: Flood insurance in Alvin area is ~20K for 40 Unit complex on top of general liability) 

3) Make ready (assume 10 units per year based on 90 unit )~10% vacancy 

4) Run and Maintain - based on how much capex you will be spending 

5) Management fee (6% for your size) may be a bit lower but for now keep it a bit higher 

6) Utilities 

7) Professional service (attorney/CPA/Lawn/etc etc) 

8) Marketing fee 

Capex:

1) Whatever you think is needed (Check roof, water/sewer line/heating aka boiler/HVAC system/Foundation)

@Kevin Wood @Charley C. ..i am looking to build couple of small ones. Would be great if we could connect . I need to figure out the civil aka water containment part of the as i am sizing the scope.