All Forum Posts by: Shahriar Khan

@Alexandre Marques dos Santos see attached MF forecast for Houston. Based on job losses for O&G , its in Recession Category aka rent growth is inflation or minus for MF cat which should be implied into rent growth for SFR as well. For MF - Class A took a major beating, Class C has higher delinquency and Class B are holding up in general. Looking at broader market, agree with @Elias Camhi as rent growth are minimal for 2K+/month properties as they are buy to live kind (e.g. Woodland, Katy, Pearland, Heights, Garden Oaks etc) . Rent growth are there for inner city + gentrifying areas for house built before 1980 . For those its not organic YOY increase rather its because of major rehab that one has to do to recover buying price + rehab. 

@Jessica Wygal no mod yet . Waiting on potential tenant to lead the way. It has office + living apt + metal storage building. I assumed 6-8 months to lease and we are in month 0.6 :) 

It came via our inhouse channel. We spoke with her 3/4 months ago and she wanted to sell it herself and called back around thanksgiving asking to close by xmas. Wasnt possible for bank loan given it will be empty so i had to close it . I didnt know what to do with the property besides getting the current tenants out ( very very minimal rent) so loosely underwrote it. Returns looked good + learning so i went for it . Found a local broker to list it and lets see. 

@Cole Bigbee love your advantage and that's a tough one to compete with. We purchased our first one (13K SQFT) late last year and now on market to be rented. Economics looks great on paper and lets see how it plays out. 

My biggest learning is that not all banks will view warehouse without tenant as a loanable asset as ours was a value add by removing current tenant and putting a new one in at market rate. 

Now working on a second project for new build metal building (very small one - 3K SQFT ) as warehouse/office . Just wanted to go through one for learning before scaling. 

@Bill B. agree with you 100% for ones who calls from fake numbers. To me, one should at least have the balls to use a number that i can call back. From all the texts that i get , i typically call them to see if they have anything to sell/assign and most of them say "i actually buy for myself" and my response , unless you show me POF under your name and 2K down without any contingency, no go for me. Rest are new folks trying to make it .. I cant say i didnt make any money ;)

@Bill B. @Terrell Garren just my curiosity..  i thought spamming = unsolicited marketing  to "sell a service" = may not be legal and 

RE texts that i get = they are trying to buy something from me as owner to owner = not selling a service = legal !!!

@Devon Rollison there isn't any legal process and/or attorney support needed  based on your personal location as you will be an intermediary only during the sale . You concern doesn't apply in Texas (it may apply in some states where you must have a license to broker a deal). I know at quite a bit of wholesellers in your shoes . Most of them had to close shop cause they were overpaying for contract + under estimating for rehab = contract not being sold. 

@Jordan Goulet your result will depend on the following (ranked top to bottom) and pay close attention to @Jonathan Greene 's feedback 

1. You Market ( more the competition , more the volume needed) 

2. Your list ( this is a deal maker,  you cant win by thinking the same and doing the same as tons of others are doing)  

3. You overall marketing strategy (style/frequency/online/offline) 

4. A little of luck (but marketing budget may run out faster vs getting lucky ) 

Keep us posted and best wishes

@Devon Rollison congrats on getting those leads. Houston is a very active market and we are seeing a bit of slow down given all the expensive jobs in O&G market being shed. At least on the wholesale side, i am seeing softening on the price. Probably it will last till the PPP loan kicks in . 

Back to your leads, given you are virtual and assuming you will be making some assumptions on repair, once you have an agreement with a seller do the following 

1. 1. Google "TREC contract one to four houses" and use that form to put the contract in place
2. 2. Send the contract to title company and start the title process. (American Title Company of Houston is a good place to start) 
3. 3. Once you have title open and its clean (make sure its clean first before you market to sell) 
4. 4. Find a buyer here at BP or FB . Buyers will give you feedback on prices right away . 
5. 5. Once/when you have a buyer , put an ' assignment contract " between you and buyer ( DM me and i will give you one to use) 
6. 6. You don't need any attorney (title company attorney will review docs for you) and/or any realtor in the process unless they bring you a buyer . 
7. 7. My requirement for Realtors are that they must do at least 10 Rehabs in past 36 months as an owner and they must own at least 5 rental. If they don't then sorry :)  Everyone is an "investor friendly" till it's their own money 

Best wishes and keep us posted. 

@Cody L. agreed ...LOL

@Jared Schaefer great progress. Below is simplistic Opex categories that i use to allocate all costs items that are appropriate for a given property. 

At the end, you need to calculate what you be a a potential sale price (7-8 cap may me or less) after XX years. And then you need to look at the buying price + capex vs Selling price and determine if the project profit is worth doing to begin with .. 

I DMed you my short valuation model. Its work for up to 50-60 units. 

On that note, make sure to make an offer based on your calculations and don't let the asking price scare you.  Keep us posted.