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Dallas Investment Property Club

pronstar

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Hey everyone,
Lots of folks are asking, so wanted to give an update on this.

Shintoo and I have been doing a lot of research on this, and we've enlisted the assistance of a DFW-based advisor to help us navigate things.

Full transparency:
This advisor is a 30-year close friend of mine, he's a Senior VP of Compliance at CitiBank, and spent most of his career in banking for construction lending.
He also worked as an executive at Home Depot Corporate, and if you've seen the Pro Desk at any Home Depot, that was his doing on a national level.

We've been on conference calls every week, and have been doing a lot of homework in the meantime...

At any rate, we've been looking at the market, opportunities within the market, and how things like tax lien sales and foreclosure sales work in Texas.
And I've been networking with associated fields like local RE investor title companies, realtors/brokers and the like.
We've been compiling data, and have been ID'ing potential opportunities.

Based on this research, we've looked at multiple homes, attended a Super Tuesday auction to see how those homes fared, and have discussed what we would do with them and what we think they can resell for.
And we'll be tracking those homes through the system until they're resold, to see if our estimates are accurate.

While none of this is rocket science, we want to put the effort in upfront, to help provide the greatest chance of success down the road.

At some point we will also enlist the RDP brain trust, as there's a trove of experience here that we want to lean on as well.
Net-net, we're working hard behind the scenes on this, more to come so stay tuned
 

Waterjunky

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Although I think many are just window shopping here, I think there are a decent handful that are serious on this.

Thanks for the update.
 

OldSchoolBoats

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Any updates on this??

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rrrr

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There's a house two streets away from me that been on the market for five months. Built in 1978, it has had no major upgrades and it's on the corner of a six lane street. They are asking $385K, about $169/SF, and it's just too expensive for what it is. Now they're trying to lease it. If they want to sell it it's gonna need to be around $345K.

Their agent isn't doing a good job for them. It should never have gone on the market at that price. Now it's been picked over by all the real buyers and it's not going to move unless there's a significant drop in the price.

In this market if a property hasn't sold in 90 days it is overpriced or undesirable for some reason.

A house two doors from me sold for $172/SF, but it was a total rehab and modernization. Houses selling for less than $400K are still hot in Plano. We are thinking about moving out of our house, doing a bust it out remodel, selling, and finding a small town to live in. It's paid off and we can get close to $400K for it. Our house out at the lake is a nice 3 bedroom but it's too rural for us.
 
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pronstar

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Reviving an old thread.
I got side tracked with losing my job...starting a new career...buying a fixer for the wife and I to live in.

My banker partner put me in touch with an investor who just bought over 60 bank-owned properties from him for $55k all-in.

Until I can get to that point...the investor is looking to unload a few of these quick, initial convo says he will be happy to cover his $55k nut on one house that’s up the street from me.

This property went to auction a few months ago, was bid-up to $140k, but title issues killed the deal.

The bank has cleared all title issues.

My plan is to buy this house, put a bit of money into it, and flip it quick. I’ll redeploy the contractor currently reno’ing my house to do the work on this one.

Depending on the final purchase price, might be looking for partner(s) to help with renovation costs.

TL:DR
Looking to buy house for sub-$60k.
House was bid up to $140k recently at auction.
Might be interested in partner(s) for help with Reno costs.

Thoughts from the peanut gallery?



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lbhsbz

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You’re 3 months late...I woulda split it with you...but can’t now. I’m eating top ramen for the foreseeable future.
 

rrrr

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Pronstar, today's Dallas Morning News has an article that says prices are 4.3% higher from a year ago. Sales have slowed down, but I think a refreshed house will easily sell in 60 days.
 

Waterjunky

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I think many of us will be in the same boat as me on this one. I do not have the cash at the moment to jump into the deep end of the pool. There was a discussion on here at one point about $5-10k "buy in" and that is manageable. What exactly are you looking at for partners and contributions? What size of nut are we talking here?
 

pronstar

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I think many of us will be in the same boat as me on this one. I do not have the cash at the moment to jump into the deep end of the pool. There was a discussion on here at one point about $5-10k "buy in" and that is manageable. What exactly are you looking at for partners and contributions? What size of nut are we talking here?
I need to evaluate the inside in the next few days.

Im thinking $20k-ish is the total amount needed for the rehab, but will know fire sure very soon.


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pronstar

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Looks like the Dallas Property Club just bought its first house.

PM’d a few folks, haven’t gotten any replies.

Shouldn’t have paid cash for my truck recently LOL
But I bought this one low enough that I think can swing the rehab, methinks.

I’ve already got a few more lined up, so some syndicated investing (with multiple investors) are possible moving forward if y’all have any interest


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ChumpChange

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Looks like the Dallas Property Club just bought its first house.

PM’d a few folks, haven’t gotten any replies.

Shouldn’t have paid cash for my truck recently LOL
But I bought this one low enough that I think can swing the rehab, methinks.

I’ve already got a few more lined up, so some syndicated investing (with multiple investors) are possible moving forward if y’all have any interest


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Congrats and good luck.
 

RiverDave

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I'd be into this Pronstar! Let me recover a little bit.. I just bought out my biz partner and that process pretty much flattened all my accounts.

RD
 

MohavValley

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pronstar

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A little update:
I’m no longer employed in the advertising or auto industries.
It was a good 25-year run...but I’m tired of working for other people. I should have done this decades ago.

So I’m a full-time real-estate investor.
This is my life now.
Housing flips plus buy/hold.

The housing market is still very strong here.
And I’ve managed to put a nice group on investors, partners and residential trades/GC’s.

(I have two other gigs also, one is a startup, one with a VC...possible topics for another thread if at all, but mums the world for now)

The club is alive and kicking.
There may be opportunities for investing in the near future, shoot me a PM if you’re interested.


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ChumpChange

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A little update:
I’m no longer employed in the advertising or auto industries.
It was a good 25-year run...but I’m tired of working for other people. I should have done this decades ago.

So I’m a full-time real-estate investor.
This is my life now.
Housing flips plus buy/hold.

The housing market is still very strong here.
And I’ve managed to put a nice group on investors, partners and residential trades/GC’s.

(I have two other gigs also, one is a startup, one with a VC...possible topics for another thread if at all, but mums the world for now)

The club is alive and kicking.
There may be opportunities for investing in the near future, shoot me a PM if you’re interested.


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Congrats. Let me know when you're ready to pitch HGTV for Flip or Flop Dallas. I know people...

..it all depends on what your wife looks like though and if she has long hair. TV viewers hate women with short hair. :D
 
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Waterjunky

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Interesting, over the weekend I was wondering what ever happened with this.
 

pronstar

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Interesting, over the weekend I was wondering what ever happened with this.


It got to the point where the opportunity cost of staying in auto advertising was too great.

I’m loving it and am surprisingly busier than I was when I had a 9-5...waaay more satisfaction knowing I’m building something that’s our own, and not building something owned by someone else.


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t&y

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It got to the point where the opportunity cost of staying in auto advertising was too great.

I’m loving it and am surprisingly busier than I was when I had a 9-5...waaay more satisfaction knowing I’m building something that’s our own, and not building something owned by someone else.


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That is awesome. I tried flipping one house with a group of friends out here that had been doing it for a bit with success... Of course the only house I invested with them in we lost on. I'd love to have another go at it but now my financial position has changed. One of these years I'll give it another shot.
 

pronstar

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Congrats. Let me know when you're ready to pitch HGTV for Flip or Flop Dallas. I know people...

..it all depends on what your wife looks like though and if she has long hair. TV viewers hate women with short hair. :D
We’re ready for reality TV now, my contractor’s crew is a fucking riot

To update this thread a bit:
First flip was a home run.
Bought for $60k
Put $40k into it
Sold to neighbor for $190k, never even hit the MLS

I’m really shooting for singles and doubles. $25k target profits per flip.

Second flip had a few setbacks, I’m getting REALLY good at firing deadbeats but good labor is hard to come by, given all the construction going on.

We go live in an hour...
Bought: $185k
Put $40k into it
Listing at $280

This house was a complete disaster. Plumbing not tied to sewer, it just drained under the house. Floor plan was terrible, walls everywhere. Tons of deferred maintenance. It was a total gut job, replumb, repipe, but unusually (for Texas) is pier and beam, so it was pretty easy to move things around.

She shows pretty nice now


I’ll post the links to Zillow etc when they go live, probably by 4p.

Next one is already in the pipeline.

In the meantime, I’m gonna stay hobbled in bed with this fucking flu...




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RichL

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Looks good. Curious what you used on the floor. Was it LVT?
 

RiverDave

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I think we want in on this.. how do we go about it?
 

Waterjunky

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Sounds like an interesting go. We should talk a little more about this process. Good to hear it working for you though.
 

hawgty55

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Hopefully this is only for texas chaperter inmates! Been talking with my brother in-law about doing the same been looking on the other side if the metroplex from yall.
 

pronstar

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Looks good. Curious what you used on the floor. Was it LVT?
Yeah solid-core vinyl.

I love this stuff, seems TX buyers do too...I’ve seen some very expensive homes with it instead of wood


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pronstar

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I think we want in on this.. how do we go about it?
Sounds like an interesting go. We should talk a little more about this process. Good to hear it working for you though.
I’ve got one CA investor lined up, the process isn’t hard. It can be replicated for others. There are SEC issues with things being across state lines.

I setup a series LLC, so each property can be it’s own encapsulated entity, with minimal setup costs. By ensuring all parties involved are active participants in managing the LLC, we stay legal.

My mentor is helping me with scaling the business. He’s been doing this since 2006 and has been an incredible coach.

Some purchases will be held as rentals, others as flips for cash flow.

In a nutshell, the way it’s setup with my current investor:
If the market changes and values drop so a flip isn’t profitable, it’ll be retained as a rental until conditions improve.

He buys the property, I fund the renovation, and profits are split at an agreed upon percentage.

We will be retaining more properties as rentals, but as of now I need cash flow since I haven’t received a steady paycheck in 9 months.

Thanks to the series LLC, we can adjust the business case for each property independently.

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pronstar

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...and we’re live




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DB / HAV

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What is the buy in, how many investors, when is the payout. How are you charging for your time? Sounds interesting. Thanks!
 

pronstar

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What is the buy in, how many investors, when is the payout. How are you charging for your time? Sounds interesting. Thanks!
Every deal is its own independent entity, and can be structured any way we want.



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pronstar

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This was the house when I bought it:
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