Oakland, CA, June 27, 2019
Investor buying of homes in the U.S. is at record highs, and Dallas is one of the hottest markets in the country, the chief executive of HomeVestors of America Inc. told the Dallas Business Journal at a conference in Austin on Wednesday.
“Dallas is one of the most competitive markets in the country,” said David Hicks,
president and CEO of the Dallas-based company known for it’s “We buy ugly houses” ad campaign. “It’s an unusual market right now. There are more investors right now that are looking for properties and buying properties, and the values in Dallas are going up and up.”
Nationwide, business is booming as well, Hicks said during a panel discussion called “New Landlords and Cutting-Edge Investors” at the National Association of Real Estate Editors conference.
“Last month was the best month ever in our history,” Hicks said, “and it looks like we’re going to beat last month this month.”
Colin Wiel, co-founder of three-year-old property management company Mynd Property Management, said today it’s difficult for individuals to invest in rental properties, but his company’s technology is trying to change that.
Mynd provides property management technology for “small residential,” including single-family rentals and apartment buildings up to 49 units in size. Small residential constitutes 87 percent of all the rental units in America, Wiel said during the panel discussion.
“There’s this whole invisible industry of small residential that needs to be transformed with technology and made more professional and mature,” Wiel said. “When that happens, it will make it easier for everybody to invest in rental properties.”
CoreLogic economist Ralph McLaughlin said the tax breaks involved in Opportunity Zones will be a game-changer for the home investment market.
“It’s going to direct a lot of money that’s never been in real estate into real estate,” he said. “That’s going to lead to an increase in small investors who haven’t really worked in real estate before.”
Back to Dallas-Fort Worth, demand for housing is far outstripping supply, Hicks said.
“It’s a real tight supply right now,” Hicks said. “There are a lot of investors looking for properties and a lot of people moving into Dallas. There’s just a lot of demand right now.”