Most of your are familiar with ROI (Return on Investment), but much less are familiar with IRR and CAP, two very common acronyms in the commercial investment world. CAP – Capitalization Rate  This is the net income of a property divided by the price you’re paying for the property.  For example, if a retail strip, 4-plex, or whatever are producing $100,000 net income (after all expenses are paid out) and you’re buying the property for $1M then the CAP is 10%.  Certain types of property tend to trade at lower CAPs because they are in higher demand (or are less risky).  If yo ..read more

Back in 2017 I had a much more dire market forecast because I saw foreclosure starts on the rise and lending practices loosening (which typically leads to more foreclosures).  Not to mention the fact that we were 9 years into the typical 7 year real estate cycle, and the higher interest rates (which were supposed to go up in 2017) would certainly soften the market.   Well the rates didn’t go up as drastically as economists predicted and the overall demand to live in DFW has caused even more development and further increase in home values across the metroplex.  So what’s go ..read more

Hey guys! I don’t post all my deals on here, but every once in awhile I’ll post a deal that has a very short fuse or huge ROI, in this case, this deal has both!  We have to close on this lot by 10/12/17 and the ROI is going to be approaching 70%!  Also keep in mind that this is a rather passive opportunity.  It won’t suck your time. Here are the details: Off-market lot – 0.55 acre in Bluffview – $750k Comparable sales in the last 9 months are $2.35M to $3M Plan is to build around 4800 sqft for $910k (see numbers and finish out example below) and sell for $2.4M.  The b ..read more

Hey guys! I just got a call from a guy offering a 4-plex in Garland that’s was just remodeled.  It’s off market and there may be some wiggle room in the price, but likely not much.  I ran the comps and the building next door recently sold for $378k and it was not updated.  Here are the numbers I ran for this 4-plex.  See below… If you have any interest, please let me know quick because this will not last.  Thanks ..read more

The quick answer to this question is yes for about 95% of the flippers out there.  The other 5% are what we call institutional flippers and they have 20+ people working for them finding inventory, remodeling, and selling the homes for them.  Institutional flippers, even with their systematized approach, only net about $25k or so per flip. I was just reading an article in the Dallas Morning News last week that said 6.7% of all first quarter sales in DFW were flips (see article here). That’s up 18% from this time last year, and inventory was very tight last year. Flipping has become so ..read more

Hey everyone!  I’d like to take a moment to explain what’s happening in the real estate market today as well as forecast what we can expect for the rest of this year and 2018.  We are presently in the midst of of shift from a sellers market to a buyers market.  I first noticed the shift in August 2015 in the higher price points, which is typically how it happens.   When comparing sales prices from 2015 to 2016, there was no upward movement in values for most areas of Dallas.  2017 is looking like it’s going be slightly down from our 2016 values despite having a large n ..read more

Hey guys!  This day and age properties move on and off the market so quickly there is little time to get contractors over to the subject property.   Even if you could get them over there in time, most contractors don’t like to take the time to put together a well thought out bid for a property you only have a chance of getting. You need to get the property under contract first, but you need a rough rehab estimate right?  Okay, here’s how I do it. $37/sqft – This is my average cost for doing a traditional flip that I plan on selling in the $400k to $600k range. $45/sqft –&n ..read more

Hey guys! So I’m going to bring video into the mix, finally!  In this video I’m giving you the rundown on what’s going in the Henderson Avenue area.  Very hot area right now and a great time to be buying and developing.   Here are the numbers for the deal I’m talking about in this video (see below).  5 townhomes @ $550k each = $2.75M in total sales.  Land is $685k, with another $30k that will be spent on removing deed restrictions and paying for upfront closing cost.  Build cost is $115/sqft, which includes everything and will be built by Grenadier Homes. Let me ..read more

Hey guys!  I know rentals aren’t as glamorous as flips, but man do the numbers make sense.   I’ve got four awesome opportunities for you.  Let me know if you’d like to pick one of these up… Garland Rental – Completely remodeled, 3 bed, 2 bath, 0.18 Acre Lot, 2173 sqft, no garage, $1750/month rent.  Yeah no garage sounds bad, but I factored that into the rent.  I have it renting for the price of an 1800 sqft home in this area.  This is a flip that someone overspent on for the neighborhood and is now going to take a bath. Irving (Medical District) Rental – 3 bed, 2 ..read more

Hey y’all!  I hope you’re ready to flip some houses!  I’ve got 4 traditional flips and one new build for you.  I’ve walked all these properties and the numbers are solid.  12% to 14% ROI for is pretty standard for Dallas right now for a 4 month in and out project.  8 month projects are bringing around 24% on average.   You choose which makes more sense for you. The Disney Streets Flip – 2808 sqft, 3 bed, 2.5 bath, 2 car garage, 0.37 acre lot The North Dallas Cul-de-sac Flip – 2658 sqft, 4 bed, 3 bath, 2 car garage, 0.175 acre lot The North Dallas Modern Flip – 1 ..read more