All Forum Posts by: Tom Cooper

@Jess Hossfeld,  First thank you for your service and congrats on getting started with investing.   I agree largely with those who say experience will benefit you more than school.  Most of those degrees (including an M.B.A., which I have) largely prepare you for a job in large corporate America.  Yes, a working knowledge of accounting would be helpful (M.S. is way overkill), basic knowledge of finance (you can pick up here or from books), pretty much all the others up there you need a basic working knowledge.  Your marketing to either find motivated sellers or sell a house is very different and a very small subset of what a M.S. in Marketing would teach you.

Of all the ones listed, if you really want to pursue a Master's to aid in your Real Estate Investing, I would look hard at  Entrepreneurship.  If I had it to do over (wasn't around when I got mine way back when), that is the path I would take.  It should give you the working knowledge of all the subjects you will need but also work on building and executing a business plan, thinking like an entrepreneur.  Porter's Five Forces Model would be something that should be taught and you would do well to look into on your own.  Gives a great analysis of competition in an industry and how to develop a business strategy.

Best wishes on your journey!

Right Path Real Estate - 1st and 3rd Thursdays.  Good content - great group of vendors.  The other three already mentioned above are some of the best in Houston.  That should get you started and hope to meet you at one.

Talk to @Jerry Ta, who runs Property Care in Houston.

@Nathan Cron, Your assertion that New Western does not put ARV on marketing materials is patently false. At least in Houston. I have been receiving the Houston inventory properties for over a year, averaging 3-5 per day, and they all have a CMA on them, which is interchangeable with ARV. While I have yet to find a deal that works for me with New Western, I continue to look.

@Ethan G., my take would be the opposite.  Although I wont be able to make this one, I would be much more likely to attend future meetups at the proposed location than Katy Mills. I think there are a number of West Houston /Katy investors that would be more likely to make it to Fry Rd versus Katy Mills.  Just my opinion.

@Vicki Chu, Nobody can predict future appreciation.  The past does not necessarily predict the future.  You need to narrow down what is your top priority (cash flow, level/type of tenants, potential for appreciation, etc.)

@Alex J.. what do you mean settling is no big deal in Houston?  Probably 90% plus of all houses in Houston have had or will have foundation/settling issues at some point.  Our clay soils - not much one can do to avoid it.  Maybe it is not as big as earthquakes in Cali, but it is a definite issue (and can be a very costly one) to deal with.

@Account Closed,  Don't listen to the naysayers.  Stay the course, be patient, and let those potential sellers see your message repeatedly.  Most of the other DM folks quit after one or two mailings and many others don't answer the phone or return calls.  I had a friend recently tell me he called on 13 different direct mail letters he received on one of his rental properties and only 3 called him back and I think one of those three was not for about three days.  So while there may be lot doing direct mail in competitive markets, very few are doing it consistently or well.

@Jonathan Mariscal, Very competitive!  Thousands of investors and wanna-be investors in the Houston market.  

@Joseph Ali , I disagree with your inside the loop analysis. The high ARV's inside the loop make it easier to find a deal with meat on the bone. But finding a real deal in any area of Houston can be a challenge, given the number of players.

@Account Closed, Congratulations on having a plan, committing to it for 6 months and being willing to post results.  I look forward to hearing your results.  Also, what type neighborhoods, size of homes, etc. did you select to pull your list from?

@Ben Volkman, Typically when someone advertises cash only, they are trying to avoid the typical "out clause" in the contract related to financing, as well as the up to 60 days it can take for financing approval. You can go to Hard money lenders (HML) - there are a bunch in Houston who will typically loan up to 75% of ARV, including money for rehab. Their protection is the equity, so they will have an appraisal done to make sure it is a deal which is a secondary benefit. This is temporary, not permanent financing, which you will want to refinance into long term after the rehab is done. You can do the same thing with a private money lender (PML) and refinance out later assuming the documents are handled correctly. This could be a friend, relative, or total stranger.

My bigger concern than the financing is that you know and understand the ARV and rehab costs really well to make sure this is a deal. While there are some reputable wholesalers that can offer a deal (most of them have regular buyers and these deals never get emailed out), it has been my experience that most of the "wholesale deals" that get blasted out to sometimes thousands of investors are not really deals!!!! BEWARE! If this house went out to possibly thousands of investors, many hungry and willing to overpay for a deal, and it is still available to you, that should tell you something. Do not get in a hurry and rush into this. Take your time, learn and then find a real deal. As my friend Jason Bible says, "the only mistake in real estate investing is overpaying for a property". That is one you cannot recover from, other than holding it long enough for appreciation to bail you out!