Everyone is a genius in a rental bull market

The rental market in Houston Texas is hot. Rents have been rising steadily for the last 4-5 years with average time on market dropping to under 30 days. Landlords are in the driver's seat and the high demand for their properties allows them to ask for longer term leases, higher credit tenants and rent escalations built into the deal. What's most important is that this rush of demand is fueled by real economic and job growth, not some artificial inflation. Under the current conditions you could … [Read more...]

Who is advising you about your real estate investments?

When you invest in real estate long term, what's really at stake is your retirement. In the end, the path you take will either lead you to the retirement you want or it won't. All the metrics us investment guys like to talk about so much - your returns on investment, equity positions or positive cashflows won't matter at all if they don't get you over the finish line. It's a pretty brutal and unforgiving situation, if you think about it. Intentions, efforts and the such are completely irrelevant … [Read more...]

The driving force behind Houston’s strong rental market

It's no secret that the rental market in Houston has been outstanding, boosted by ever increasing demand by prospective tenants. Since 2005, I've seen rents increase almost 20% as properties get re-leased for higher and higher amounts each turnover. For example, a North Katy home that would fetch $1100-1150/mo six or seven years ago, consistently rents for $1350-1400 these days. Great, so what's behind this strong demand for rental properties that's driving up rental rates in Houston? And most … [Read more...]

How to retire in 7 years with real estate investing

Real estate investors' goals vary in nature: Sometimes it's about growing their portfolio's value or income from it to a certain amount. In other cases though, it's all about time. How can they achieve what they want (retirement, financial freedom, quit the job to stay home with the kids) in X number of years? How many assets do they need to purchase and what level of invested capital will be required? And most importantly, how do all the pieces fit together in a coherent strategy? Our … [Read more...]

How to create a six figure income with real estate investing

Have you ever thought about what your life would look like if you could create a six figure annual income from your long term real estate investments? Today's post is about how the investments we plan and execute today could get you there at some point in the near future. The math of creating a six figure income from your real estate investments is quite simple. Essentially, there are two, very different routes to get there: The Blueprint Method we advocate involves fewer properties and much … [Read more...]

What the Houston real estate market recovery means for real estate investors

The Houston Association of Realtors recently released the Houston real estate market statistics for February. In a nutshell, sales were up almost 16% year over year and February was the ninth consecutive month of increasing home sales. But you don't have to read a bunch of data to know that the real estate market is very different this year compared to previous years since the 2008 recession. Phenomena that had been all but forgotten since 2005 or so are coming back. Multiple buyers competing … [Read more...]

Why investing in condominiums does not work in the Houston market

In most real estate markets across the US, condominiums are the poster child investment property of choice. The reasons are obvious: They are small, easy to rent, usually well located and priced lower than their single family counterparts. So when our out of town clients come to Houston to view investment properties, the question never fails to arise: What about condos? What follows are three strong reasons why investing in condos in the Houston market does not make sense. Higher operating … [Read more...]

The answer to THE most frequently asked question by real estate investors

Today I want to start by making a statement that's as powerful as it is obvious. The critical foundation for any long term investment strategy is incoming rent. Without it, all projections fall apart, all returns vanish. Earth shattering, I know. But obvious as it is, is it any surprise that THE most frequently asked question I get from all real estate investors without exception is: How do I know that the property will rent quickly and stay rented? This question deserves an answer that's better … [Read more...]

7 Powerful Tips on investment property management

The number one reason investors shun long term investing strategies is the perceived hassle of "landlording". The concern is that this type of investment brings with it tenant calls at three o'clock in the morning, relentless maintenance, collecting trouble and the like. Since real estate investing success has as much to do with its return on investment as the overall investor experience, this is a valid concern that shouldn't go unaddressed. So, I put together a list of 7 powerful tips to … [Read more...]

Weaving real estate investing magic: Crafting a Blueprint

Last week, I wrote a "meat and potatoes" post where  three  Houston investment properties in premium locations were dissected and analyzed thoroughly. (Read that post if you haven't already. I'll wait). Their locations were stellar: excellent schools, amenities and access. The numbers were solid: Positive cashflow, cash on cash returns between 8-10% and cap rates north of 7%. But anyone who reads this blog knows where I ultimately stand on this. It's not about the properties. Real estate … [Read more...]

How to be successful

Success is simple. There are a handful of time tested principles that when followed consistently over long periods of time will inevitably cause you to succeed at anything. The funny thing is I'm not about to tell you anything you don't already know. So then, why do successful people make up such a small percentage of our society? Because while these principles are painfully simple, they aren't by any means easy. Photo Credit: Alosh Bennett via Compfight Success Principle #1: Figure out … [Read more...]