Houston Investment Property Guide

If you are looking to buy a house or some other kind of Houston investment property, it is quite possible that you would be looking out for financing for the same too. After all, hardly anyone ever makes a full down payment on a house or a villa as it makes much more economic sense to take a loan or a mortgage. Some of the more traditional means of financing real estate include taking a loan from a bank or a financial institution. But times are changing and there are many people who are looking out for creative ways to finance their Houston investment property. 

Creative financing for investment property includes some of the best known forms of financing like government supported home loans and programs. These have been initiated by the government with the intent of helping to revive the home loan market which had seen a huge slump in the wake of the economic crisis that has enveloped the globe. The terms in this kind of financing are quite encouraging and easy so that you may not have to really go bust in the wake of the loan. 

Another form of creative financing for your Houston investment property is rent-to-own financing where you can own a home while you are renting out the prospective property. One has to be quite clear on these options in terms of legalities as well as the extra amount that you would have to pay over and above the rent in order to have a claim on owning the property in due course of time. 

The third kind of creative financing that can be considered is hard money lending where people get access to funds to purchase the Houston investment property through a hard money lender. The hard money lender could get funds from private lenders or financial institutions. The advantage is that the borrower can get access to funds that he/she cannot garner in an individual capacity. 

Another form of creative financing is fixer upper properties, which involves properties that have certain defects or flaws. These properties are available at prices much lower than the going market rate due to these defects. The wise Houston property investor can pick up these properties cheap, get them renovated and then sell them off at a profit.

Purchasing Houston investment property, or property in general with current prices being so low is a good decision.  Most investors are sinking their money into long term investments, knowing that the bubble has more or less popped on short term gains like flipping a house or condo.  Out of town, and even out of country, buyers are becoming more savvy, knowing better deals are to be had outside of their comfort zones.  For these individuals a wise choice would be to have a property management company watch after your Houston investment property.  For small fees a management company takes care of all the headaches while allowing you to build on your investment.

West by Northwest Property Management

West by Northwest is a management company working out of a RE/MAX location, and has offices in Houston, Cypress, and Katy.  In addition to managing your property, they can also help you find one.  Most property managers offer the service of finding Houston investment properties, and some even offer discounts when they can provide you both services, so please make a note of this while you’re interviewing realtors and property managers, as it could save you money in the long run.

Starting with the monthly fee, this company comes in low at $75 per month, per unit.  Now after calling to check this with the West by Northwest office, they said there were certain cases for this, and suggested speaking with the owner, Greg Comer at 281-770-5510 for the exact specifications.  After speaking with Mr. Comer he has assured me that it is a flat rate of $75 per month, per property which is the lowest I’ve found in my search of Houston property managers.  The one downside is that for multiple properties the rate is still $75 per unit, however I’m sure a savvy Houston investment property owner could negotiate a mutually beneficial deal once a certain number of properties is reached, lowering the per property management fee.  (Mr. Comer also mentioned the monthly fee included a drive by the property once a month to check the outer quality of the property.)

Once your Houston investment property is found, finding the proper tenant can be a chore.  West by Northwest can find just the tenant for a leasing fee equal to 75% of the first months rent.  There are also a number of background checks done on potential tenants including criminal, credit history check and verifications of employment, rent, and income.  Some problems arise due to Murphy’s law, and a reserve is set aside as a security deposit held in a trust account where it remains for repairs.  This amount is something the owner and West by Northwest can work out.  In th event the tenant or owner has an emergency they can call the office.  Outside of normal business hours (keep in mind the office is open Saturday and Sunday from 10 to 4) a third party service answers phone calls and contacts the proper West by Northwest staff.

West by Northwest seems like a wise choice for managing your Houston investment property, but as always take your homework to the next level to find out about one time fees, set up costs, etc.  None were mentioned at the time of my screening the company, but a wise investor checks everything out to make sure the apples are indeed being compared to other apples.  For more information please contact Greg Comer at:

West By Northwest Property Management
17315 FM 529
Houston, TX 77095
Direct: (281) 550-9433
Fax: (281) 596-4370

Initially named because of being the home base of Imperial Sugar, Sugar Land is now the fastest growing of Texas’ 45 largest cities. In an exclusive feature CNN/Money pointed out that more than 2,300 restaurants are within a 30-mile radius of Sugar Land, as well as 80 theatrical troupes and 50 public libraries.  Fast growing tends to mean new construction, so a flipping Houston investment property opportunity might be available here.

Sugar Land offers eight outdoor parks. As the city continues to grow and expand from its current base of almost 70,000 residents, there is sure to be an increase in outdoor activity space, a trademark of most Space City suburbs.  Whether a vacation property, or renting to the staff that caters to vacationers, plan your Houston investment property strategy wisely.

Coming to the educational front, the Sugar Land School District has received high ratings from the Texas Education Agency, and last year was named one of the 100 best school districts in America in which to obtain a fine arts education.  Another good school district means an investment property opportunity is present.