Texas-INvesting-flipping?

General Real Estate Investing
1

A buddy an I are flying out to texas…Looking into Dallas/Austin. Were meeting up with an REA to get feedback on market. I’m a beginner myself and so is he. I met someone who just bought 10 condo’s and renting them out. He’s motivated but I myself is still investigating on investing. Any advice about Texas is appreciated.

2

The guy that bought the 10 condos…how is it working for him?

3

The Austin-American Statesman just had an article about the authors of the book “Flip” on their Home section in Sunday’s paper. I didn’t realize the guys lived here. I’ve noticed a LOT more media attention is being given to RE investing in this area now. I just hope the place doesn’t turn crazy (a’la California).

4

The guy that bought the ten condos apparently to busy for us…mmmmm greedy? He’s a millionaire alright. Bought all condos cash and turned it over PM company. He’s holding on for a while. Renting them…i’m thinking doing the same.

5

You might contact DeeinAustin while your there in Austin. She is a moderator on this site as well as realtor in the area. She would probably be a very good resource for you.

6

…and she especially enjoys the out-of-state flippers!

LOL!

http://www.reiclub.com/forums/index.php/topic,25717.0.html

Keith

7

Out of state flipping is crazy. Austin and Dallas are in a seller’s market, so flipping is a full-time job to find deals. My team can’t accept new flippers unless they’re full-time investors with experience, but I try to answer questions.

What’s HOT

  • Pure Speculation. Buying at or above market value and holding as a second home.
  • Renting properties at a loss with 20% down. Rents have gone up a little since the 2002 crash, but I wouldn’t expect cashflow
  • Buying in Houston, San Antonio, Killeen, or other areas if cashflow is important.
  • Flipping properties at a loss. Investors try to be too cheap, too expensive, and just don’t price right for the quality they need. They work with agents who aren’t used to rehabbing.

What’s NOT

  • Waiting for the right home to come along so you can make profit.
  • Avoiding competing with other buyers.
  • Working with agents or partners who know what they’re doing so you don’t lose your shirt.

I’m a ray of sunshine, so this not meant to be negative. :biggrin

8

Good post Dee!

Killeen will be smoking hot if/when they draw down or end the troop deployments into the Middle East – Fort Hood is HUGE in the ‘Army scheme of things’!

Keith

9

I agree with Keith on that one. The owner of my net branch just opened an office down in that area so they could be up and running by the time the troops come home. Right now that area is mostly being served by local banks.

10

I hope there’s not too much overbuilding of the area. I know of three large multifamily developments going on there and they seem like great deals with really good cashflow. Where else can you buy a fourplex for zero down, $252k, 3% seller paid closing costs, and it’s cashflowing a few hundred per month at least?

Agents are all over it, selling them to anyone who even thinks about buying a multifamily. I wonder if some newbies are really ready to be investors, but I guess now is a better time than any.

11

opps

12

Dee,

Have some links for these developments? I may have a buyer or 2 to pass on.

Texas is the big rage for investor here in So. Ca.

Thanks,
Martin

13

Seeing has how the majority of non-owner occupied properties here have CA addresses for tax purposes, I believe it.