All Forum Posts by: Victor Steffen

@Danny Ong are you looking to build a predominantly cash flowing? or appreciating portfolio? Why are you looking at Austin? Certain areas and investment strategies are better depending on what your objective is 👍

@Sandy Pathak sent you a message. I have a couple depending what you’re looking for.

@Nicholas Dyer not pipe dreaming. It will be tough but you can do it. Find a 4-5 bedroom house. Most likely outside of Austin in Pflugerville or SE Austin. Purchase prices are still under 350k in some pockets. Couple it with a TSAHC grant or down payment assistance and you could have relatively little money into the deal. Lease out all additional bedrooms at 800/ room/ month. Plenty of people still doing it.

@Joe S. All of the above ^^

Hi @Mahmuda L.

RBTR is gaining popularity in Austin especially as rising home values make it impossible to cash flow via a traditional tenant relationship. A few things to note- No more than 6 unrelated occupants per dwelling. HOA-specific regulations may limit this number to as low as 2. Leases need to be 30+ days in length so a month to month tenancy works well. Room rent rates are picking up with the rest of Austin leasing rates (rooms move for ~20% below studio apartment rates in the same area).

It’s a killer model in this market, and in high demand.

I've sold homes subject to a reverse mortgage, both as a buyer's agent and seller's agent. A HUGE percentage when you go to pay down the note will go towards fees and interest. From the buyer's perspective, it's not different than purchasing a home with a conventional mortgage on it. The lender is satisfied at closing and the buyer has fresh debt on the propety.

Cliffnotes Version: Investors get together to discuss wholesaling. Who is successful and why? Who fails and why? Where do ethics fit into the conversation? PRESENTED BY CAREM: Central Austin Real Estate Meetup

While many people talk about wholesaling, few know what exactly the term refers to. Actually, this is a relatively straightforward concept in the real estate industry.

To wholesale real estate means to find a home for sale, put the property under contract with the seller, find a buyer, and assign the contract to the buyer.

The success of a wholesale deal depends on the investor’s ability to buy a home much below market value. Usually the best properties for this strategy comprise of distressed properties (which are not in too poor of a condition), homes of motivated sellers, and other off market properties. MLS listings do not constitute an ideal option for this as it's hard to buy an MLS listed property below market value and because interested buyers can purchase such a property directly from a real estate agent.

Another crucially important set of skills for real estate wholesalers is real estate marketing skills. You have to be able to find a relevant buyer quickly before the contract expires. The good thing is that you can contact both homebuyers and other investors as they both could be interested in an easy and profitable opportunity. However, as a wholesaler, you usually have to provide the property for sale below market value in order to make a lucrative offer.

Something that is commonly heard in the real estate investing world is that the strategy is illegal. While this is not generally the case, there are strict laws and rules which regulate this business. These regulations differ from state to state, so you should check out the local legislation in this regard before you decide to become a real estate wholesaler and make money with this short term strategy.

CAREM (central austin real estate meetup) will facilitate a conversation about wholesaling and the business model supporting it. Pointed questions, great conversation and a chance to network with other real estate investors. All are welcome, amateur -> professional. 

630-700: introductions

700-730: 60 second introduce yourself and your business/ real estate exposure/ reason for attending

730-8: pointed discussion questions

8-830: networking/ continued discussion

All of the above are valid, here's something a little different-

You will buy the unit and start collecting your rents, you may even have the capital to fix major items and get the asset in a great place. This is where amateur operators think their job is done and they sit back and expect rents to roll in. Upkeep of the property- landscaping, debris removal, handling maintenance requests, keeping the property in top condition- this is where amateurs drop the ball. 2-3 years go by and they run the asset into the ground and sell for a loss. Stay on top of your managers and have boots on the ground verify the condition of the asset if you're not local. Keep a keen eye on the books. Wealth in this business is made because you do all of the little things right over and over and over again for a long period of time. 

Buying the place is the easy part.

Cheers

Welcome to Austin! Feel free to reach out when you're in town. Always looking to grow alongside other investors. You can be successful with any asset class- some folks dive deep into buying/ renovating multis. others buy SFR turnkey. Others invest "in the path of progress".. Others land bank. Pick your poison! -Vic

@Jay Hinrichs

Do you own houses that you rent by the room or still implement this model?