All Forum Posts by: Shahriar Khan

I was there = i was investing ....mostly on main street (east and west) and moving north on pinemont now along with other areas in Houston. I try to avoid and HOT areas :) 

@Tushar P.  this is what i see based Price/new Construction and Land sale . I left Indy heights Q1 2017 given that area has gotten crowded . 

Yes.. if school isnt a problem and i would work in Dowtown/Energy corridor .. i would love to stay in zone 1/2/3.. Not yet in 4 unless you want to raise cattle :) 

@Vijaianand Thirunageswaram we are well awake and very eager to buy (and buying of course) assuming a near future economic correction.. ...MF is in hyper growth (step prior to correction) .. SFR seller are not being able to accept sidewise price due to higher rate. US economy is handing on the edge a bit ...

I say CASH is about to be KING again. We need to play is wisely. 

PS: Houston should be well position since oil price is already low and out local economy has been adjusted to that already 

@Carlos Batrez 

Below are my observations being in those locations as an investor 

1) Independence Height - Its now a place for buy to rehab and/or buy to build and/or buy to live and then exit. Being in flood zone/way do not matter since (East to main) all properties are being built on pier and beam. There isnt much left to what small section anymore. Things are pushing north of Pinemont now. On that note, i saw a property (full rehab) on a double lot (8k SQFT) being circulated for 125K (i think) 

2) 5th Ward - Still space there especially going east on 10. DO NOT go north of railroad track for at least next 5 years unless you are ok pit bulls, and drug on the street. Stay close to 10 as you go east. Most of the high ends are close to 610/10 intersection (especially on south side) . Agree with @Kevin Wood 

Best of luck. 

Hi Everyone , 

Just wanted to share some data that i found interesting .. These reports are available from RCA Capital Analytics website . 

Context (Looking to buy/syndicate MF properties with retail mgmt in place and at the same time dont want to take on a risk for 5% or 6% CAP rate ...so pulling data to identify pockets.. which may or may not happen) : 

1) Pulled Census data base where we could segment Cities by Population/Growth Rate/Unemployment Rate from 2013-2017. Now adding Poverty/Education etc on top . This is to identify cities potentially we can target for MF (secondary market) based on data. @Omar Khan

2) Overlay Top down Market data on top to figure out pricing/valuation (we follow major publications aka RCA Insights ) 

Whats on the chart:

1) Cap rate for MF (Class A/B aka Lifestyle) is lowest ...indication of competition

2) Pricing trend by year and then within major cities .. indication of possible downturn or isolation of submarket 

3) (dont have it here) MF price index doubled in past 10 Yrs.... indication is that market pulled all operators including both good and bad 

@Ivan barrett 

Hypothesis:

1) There will be opportunities within MF to get a higher cap rate where Operator will need to exit due to operational/Debt performance... most probable case to compete with other existing good operators /indicators 

2) Properties that will pass a stress test valuation with scenario where a downturn will happen aka vacancy will do up  and rent growth isnt possible for a duration of 2-4 yrs.

It takes a bit opposite position to Recent post from 

https://www.biggerpockets.com/forums/432/topics/687483-unprecedented-structural-shift-the-thriving-multifamily-market

And supports 

https://www.biggerpockets.com/forums/432/topics/683154-bullish-on-multifamily

@Frank Bonzai .. when i call .. i just say i am XYZ from ABC. We buy MF properties and we were wondering if you aka seller would be open to entertain an offer ... 

Yes -->  lets get into financials /when can we walk the property 

No --> when would be and/or would it be ok if we follow up in a XXX months 

May be -- lets get into financials /when can we walk the property

Simple and it works for us :)  

@Roger Verastegui .. last time I purchased a property for 30K range  .. (1 week ago) it had 3 sides of the house missing :) where you can see moonlight every night 

For Harris County/Brazoria/Fort Bend counties ...properties in that price should have first 2 and probably the 3rd one 

1) Way out of the city 

2) Will need MAJOR rehab .... easily same or more compare to purchase price. 

3) War zone 

Happy Monday 

@Kyle Longacre its a loaded questions 

1) Class is currently traded very close to Class B CAP Rate and 8% CAP Rate on a stable Class C (beyond war zone and without Major rehab) is very rare of within most of large Counties/Cities.

2) He has very less time so nee needs to connect with large syndicates (e.g. @neal bawa or @vinod chopra others here) to jump into next deal . 

3) You guys should connect with https://www.spiadvisory.com/ as they do large 1031 placement and will vet the deal for you. 

Happy hunting . 

@Patrick Meade .. First off sorry to hear your situation .. Below are my 2 cents being on both side

Situation: Both Buyer and Seller agreed with Terms during the point of signing the contract . Buyer was incentivized by a cost (less than market minus transaction cost)  and Seller was incentivized by a cash sale thus both party  signed the contract . 

What happens what one party falls behind:  If buyer cant come through the agreement then they will loose Earnest Money and if seller cant come through then there is a fee/cost of marketing . Most of the large ones do not charge and some may (beyond any special provision in place)

In your case: My understanding is that , you have a provision in place which gave you an exit and/or you didnt intend to bypass the original buyer due to a high price so you signed a new agreement after initial contract ended.

Next step: You can go after is couple of ways in parallel and/or in series 1) RE Attorney  2) Social media 3) Civil lawsuit and/or a mix of all 3 

1) RE Attorney ...happy to share local folks that i work with . You send certified demand letter with some time to response and then civil lawsuit to both husband and wife (less then a month and may cost around 300-500). You should be our of within 60 days ish 

2) Social Media - Post the contract (only date) and call them out here along with everyone in their company food chain. Use both BP and Facebooks. Probably they are part of large facebook groups as well (e.g. 713Real Group On Facebook) 

3) Civil Lawsuit - See #1 above 

Reputation matters and so does a clean business practice on both side. Keep us posted. 

@Omar Khan ... Congratulations.  Nice work pulling this together. I met Neal Bawa in Houston last month and really like his systematic approach to a deal ...