Lived in Houston for over 50 yrs. Boom/Bust is the name of the game. Always has been. Now is bust time. The great thing about such foreseeable a boom/bust cycle is that there are opportunities.
City of Houston should require a performance bond to complete buildings that big. Or at least a bond for demolition in the event of bankruptcy and incomplete construction.
Drove through the DfW metroplex this week and saw two major apartment complexes that were under construction that look as if they got about half way to getting them completed and were abandoned a year or two ago.
Real estate is MOST reactive sector to interest rates, and govt to slow inflation has jacked rates.. if construction pauses 2 years it's not sign of depression. Now europe is closing steel mills and chemical plants and THAT is a sign of economy in deep trouble. Capitalism in US works OK, it's not fraud it's normal deal making and renegotion. 3 years ago construction variable rate loan was 6% and can start construction, then it jumped to 10% and some top investor expecting the profit after expenses decides to stall construction to try to renogiate so their profit ain't zero.
The examples given demonstrate exactly why office to residential conversions do not work. The brand-new building shown is $107M for 750,000 sq. ft which equals $143/sq ft. The proposed conversion of the Hilton is $77.5M ($37.5M purchase price and $40M renovation cost) for 192,181 sq ft which equals $403/sq ft. It's nearly 3X the cost to convert and this is why it sounds great but simply is not practical.
@@tyronmcdaniel5372 And, what I left out is the fact that, at the end, you have: 1) A 3X building that is 50 years old and has many design deficiencies. 2) A brand new building that does as intended. Ha!!
Project at Montrose and Harold (planned for over 30 stories and some 400 ft) is bankrupt. I live next door and our highrise just slashed its asking price for rent. Skanska is stalled re: the 30 million dollar investment at Montrose and Westheimer. But someone else bought the 1.8 acres next door for some 20 million and is moving forward with that. My own view is that the luxury highrise exuberance was a little too great.
If I remember correctly the property at 1001 w.loop South was part of the S&L crisis of the late ‘80’s and auctioned by the RTC…if so then taxpayers will have dealt with it once already.
If you understand how large scale landlords and developers really make their money, this wouldn't seem strange. If you think it sounds crooked, you'd be correct. Projects started under low interest rates got clobbered when they went up. Add in decades of overbuilding, particularly in the office sector, and you have an avalanche of foreclosures.
Lived in Houston nearly 50 years. We go through this maybe every 10 or 15 years. Doesn't surprise me at all. However, financial opportunities await down the road. Thanks for the video. Great info.
Wyatt Did a great job. Good looking kid and has a nice voice. He can work for a TV station when he graduate from college. Travis, you did great introducing Wyatt to YouTubing.
I could see those hotels coming down to make room for something better, but they'll probably remain. That office building I don't see going anywhere anytime soon. Those apartments aren't in a very desirable area of Houston but someone will pump and then dump them once they get their money out of them. The high rise will probably sit there and rot until another developer takes over the project..
@@jimarcher5255 yep. Theres also many states where after so many years the mechanic lien goes away anyways. So someone can stuff you as long as they don’t sell their house after 2-5 years it just goes away.
The darling of private syndication deals buying multi family properties past five years at inflated prices paid too much for them. Now they can’t refinance their loans because the property usually has lost market value. Feel bad about the retired people who used their Retirement Savings Accounts and IRAs to invest in these multi family syndicates. Lost retirement savings.
Good looking son. The bubble in Real Estate is popping. Am in the real estate space and work for big investors and property managers and they are telling me things are looking ugly.
Hopefully that Hilton hotel turning into apartments will revilatize that area somehow. That area is a little bit ghetto at night. We do need more housing.
I've been in the Dallas Texas area for under two years. Everywhere there are abandoned stores. There are many apartment complexes being built in the surrounding areas, but when I pass them I don't see workers at many of them. I think that it was a mistake for me to move to Texas. Once I save enough money, I might buy a small used box truck and convert it into a rolling house.
North Houston apartments is around the corner from my house. That area is a little rough, not suprised if the owners not worried about possibly losing it.
Continuing to keep your family and neighbors in prayer, Travis! All this time I've been going bonkers with you and I didn't know until Beryl that we're practically neighbors. (New Orleans). God Bless, bro! Stay hydrated and keep up the great work!
That last building in your video I’ve seen it as I drive south on 45 near Rankin, I thought it was being remodeled until I got a closer view of it. Just a sheer magnitude of that project demolition blows my mind. I have a friend of mine that was working on a hotel to a apartments conversion and they owe him $30,000 and refuse to pay him for work that has already been completed. The sad thing is that there are already tenants living in the floors that he completed the work on already. I think the money just dried up or had poor project & money management from above.
Wow, I had no idea it was that bad also in Texas which has seen huge growth the last several years with hundreds of thousands of people moving there from Cali, New York, Illinois, Michigan, etc. An excellent report! Why would any bank lend them money?
@@carefulconsumer8682 we had an oversupply of commercial 5 years ago and we kept building more. So we ended up with the same excess capacity after seeing more work from home, effectively wiping out values of older class A and all class B. We are seeing a huge flight to quality. I have no idea why anyone thought we needed this much capacity. Add to this the fact that the population center has shifted outside of the Inner Loop with a big shift to westward development and the burdensome commute times from the far western suburbs into the central biz district. Terrible planning by a lot of people. And a lot of the older commercial downtown would be difficult to convert. The Exxon Mobil building (tallest building west of the Mississippi in 1963) already is empty and has single pane windows. This will be a difficult CRE space for a while. I don't see how this won't have big knock on effects.
I remember about 2006/7 there was a massive multi use concrete multi story building going up near the mall. then 1 day all the workers were gone, a few weeks later all the construction equipment was gone then all the materials on site were gone and it sat as this monolithic looking eyesore of cement and rebar. it sat like that for many years before it was finally torn down and a new structure went up about 2017
Risky investment if there is no income from the project. Over supply speculation with weak demand equals investment failure. Diminished demand for office space due to COVID and work at home, vacated commercial demand.
🎉🎉🎉 I would love to get me some mixed use commercial properties when TSHF. Thank you Brother Travis. It’s also great to see your son here. Blessings,Carlos ✝️🙏❤️😊🇺🇸 Btw your son has an awesome voice to help you out here.
As a father, and grandfather, it looks like Wyatt was raised with guidance and morals. And has used that to make good decisions. Enjoyed your video. Always great to see a father and son sharing time, and great information, thanks
It's because you have a lot of power hungry people money hungry people running these apts. greed is a spirit needs to be prayed out. Managers start charging outrages things going on. This is a spiritual battle manifesting in the Natural. We wrestle not against flesh and blood, but against principalities in the air. People need to pray at all times, pray for everything.
Great to see Wyatt! He did an awesome job. Travis slow down a little and include him more in the video next time. Nice to see the father son duo! Well done y’all! Bonkers!
Failure of commercial lenders to forecast dropping demand due to remote work. Texas's lack of regulation only works till it doesn't. The S&L Debacle of Texas in the 80's wiped billions from balance sheets. Conversely, I bought 19 condos during that crash. 🙂
Wearing that blazer in the texas heat and humidity is absolutely BONKERS!!!!
I was thinking the exact same thing, Im in New England with a Heat Wave....Id be sweating buckets.
It was 6 am
Unlike most of country Texas is having a very mild summer.
@wifiunove1650 6am? Oh goodie. Only 85F. 😂
@@wifiunove1650still 95% humidity
Wyatt is doing an excellent job reading. Bravo, Wyatt!
Especially while walking! 😮
Way to roll together and support each other. Kudos dad.
Absolutely bonkers! Love seeing the father/son duo! ❤
Lived in Houston for over 50 yrs. Boom/Bust is the name of the game. Always has been. Now is bust time. The great thing about such foreseeable a boom/bust cycle is that there are opportunities.
Man where exactly is this bust in Houston please tell me
@@luisvilla799Uh, that’s what they documented in this video
@@wyganter I didn’t watch the entire video but I was born and raised in Houston I don’t see and bust yet
@wyganter no he didnt 😅
That was before work from home.😮
I live in Houston, I knew things weren't great, but this was a bit of a surprise, thanks.
Laughing at the Champions School of Real Estate sign on the forclosed building. Priceless
🤣 nailed it
lol
City of Houston should require a performance bond to complete buildings that big. Or at least a bond for demolition in the event of bankruptcy and incomplete construction.
That is crazy. What a waste. When you owe the bank $1 million. You got a problem. When you owe the bank $100 million. The bank has a problem.
Absolutely bonkers! Loving the father son video!
Drove through the DfW metroplex this week and saw two major apartment complexes that were under construction that look as if they got about half way to getting them completed and were abandoned a year or two ago.
Look at what happened to Texas real estate in the 80s and 90s. History repeats itself.
801 Travis reported as a busted appraisal today. 4 million underwater. Non-performing matured loan since November.
i have 20% down
My office is right next to the Hilton. That "Mixed use" building you mentioned is for low income.
Right, it’s not mixed use
It's messed up for the housing and commercial property in all areas. Oh, Wyatt did a good job reading the article.
if this sort of thing continues all over this country, then it is a sign of extreme distress and means one thing. great depression 2.0
Real estate is MOST reactive sector to interest rates, and govt to slow inflation has jacked rates.. if construction pauses 2 years it's not sign of depression. Now europe is closing steel mills and chemical plants and THAT is a sign of economy in deep trouble. Capitalism in US works OK, it's not fraud it's normal deal making and renegotion. 3 years ago construction variable rate loan was 6% and can start construction, then it jumped to 10% and some top investor expecting the profit after expenses decides to stall construction to try to renogiate so their profit ain't zero.
Wyatt reads as well as I do at 60, and way better then I could walking and on camera. Well done young man!
The examples given demonstrate exactly why office to residential conversions do not work. The brand-new building shown is $107M for 750,000 sq. ft which equals $143/sq ft. The proposed conversion of the Hilton is $77.5M ($37.5M purchase price and $40M renovation cost) for 192,181 sq ft which equals $403/sq ft. It's nearly 3X the cost to convert and this is why it sounds great but simply is not practical.
Facts
@@tyronmcdaniel5372 And, what I left out is the fact that, at the end, you have: 1) A 3X building that is 50 years old and has many design deficiencies. 2) A brand new building that does as intended. Ha!!
Great job with the article Wyatt!
Bonkers! Father son tag team up on this one. Awesome👌
Project at Montrose and Harold (planned for over 30 stories and some 400 ft) is bankrupt. I live next door and our highrise just slashed its asking price for rent. Skanska is stalled re: the 30 million dollar investment at Montrose and Westheimer. But someone else bought the 1.8 acres next door for some 20 million and is moving forward with that. My own view is that the luxury highrise exuberance was a little too great.
Wyatt did a great job! You two make a great team 🙂
What is interesting is that this is THE MUSEUM DISTRICT!!! THat is prime real estate in Houston!
Yup
If I remember correctly the property at 1001 w.loop South was part of the S&L crisis of the late ‘80’s and auctioned by the RTC…if so then taxpayers will have dealt with it once already.
That building has been there forever
If you understand how large scale landlords and developers really make their money, this wouldn't seem strange. If you think it sounds crooked, you'd be correct. Projects started under low interest rates got clobbered when they went up. Add in decades of overbuilding, particularly in the office sector, and you have an avalanche of foreclosures.
Excellent job, Wyatt ❤
Lived in Houston nearly 50 years. We go through this maybe every 10 or 15 years. Doesn't surprise me at all. However, financial opportunities await down the road. Thanks for the video. Great info.
Love it that you're including your son. He did great. Teach him the school of hard knocks and he'll come out ahead in this crazy world.
Informative video. I've been watching the former Compac building on I 45 being bulldozed on my way into work every day.
Wyatt Did a great job. Good looking kid and has a nice voice. He can work for a TV station when he graduate from college. Travis, you did great introducing Wyatt to YouTubing.
Wyatt nailed it 🎉
I could see those hotels coming down to make room for something better, but they'll probably remain. That office building I don't see going anywhere anytime soon. Those apartments aren't in a very desirable area of Houston but someone will pump and then dump them once they get their money out of them. The high rise will probably sit there and rot until another developer takes over the project..
These abandoned buildings resemble the empty RE in China. Whoa! 😱 Good job reading, Wyatt. 👍🏻
Great job, Wyatt!
Really impressed you could do a cold read, out loud, and walk briskly att same time.
Love Wyatt!;! Great video, thanks Travis.
Crushed it Wyatt, thanks brother!
They are in The Big Club and you're not. That's why they get away it.
I’m a large multifamily owner in Houston and am happy to have stumbled on this video.
Great job, Wyatt!! Good on you Dad, for your role in Wyatt's life!!👍👍
What is incredible is the pricing on new apartments! To pay around 1500.00 per month for efficiency?!!?
Great job Wyatt!
Great job, Wyatt!!!
Sad. These abandoned high rises are going to become massive bird houses. 😢
Travis. Thanks for boots on the ground. Thanks Wyatt for co- hosting.
Those mechanic liens won’t get paid. They’ll get wiped out after the foreclosure.
Man, that's horrible. Such a nightmare for many.
@@iheartcryptoverse2857 unfortunately the first lien is the only one that prevails during a foreclosure.
As a contractor I can tell you the worth of a M&M lien is zero, zip, nada. The banks foreclose and wipe out your right to any money owed to you.
@@jimarcher5255 yep. Theres also many states where after so many years the mechanic lien goes away anyways. So someone can stuff you as long as they don’t sell their house after 2-5 years it just goes away.
Good job, Wyatt.
When I was renting every time they change ownership rent went up.
That sounds about right
The darling of private syndication deals buying multi family properties past five years at inflated prices paid too much for them. Now they can’t refinance their loans because the property usually has lost market value. Feel bad about the retired people who used their Retirement Savings Accounts and IRAs to invest in these multi family syndicates. Lost retirement savings.
Getting your boy some reps is ingenious. He'll be a natural when he starts his own channel.
Great job, Wyatt. Can’t believe the state of the industry.
Great episode! It rubbed off on the kid....he is a natural!
Holy smokes, why it's killing it this morning. Very well done yet again on story number 3.
Houston dodged a bullet. Co-living, especially that size, would be a disaster.
Good looking son. The bubble in Real Estate is popping. Am in the real estate space and work for big investors and property managers and they are telling me things are looking ugly.
Wandering around Houston is Bonkers. Keep up the good work.
Hopefully that Hilton hotel turning into apartments will revilatize that area somehow. That area is a little bit ghetto at night. We do need more housing.
I've been in the Dallas Texas area for under two years. Everywhere there are abandoned stores. There are many apartment complexes being built in the surrounding areas, but when I pass them I don't see workers at many of them. I think that it was a mistake for me to move to Texas. Once I save enough money, I might buy a small used box truck and convert it into a rolling house.
Thank you for this informative (and accurate) video! Makes me think that many multifamily and commercial REITs are still over-priced.
bingo
Great job, Wyatt!! I love to see you include him, great duo!!!
Everything broke in 2008 & no criminal bankers went to jail…when there is no deterrent it’s not difficult to know what the end result will be🤷♂️
North Houston apartments is around the corner from my house. That area is a little rough, not suprised if the owners not worried about possibly losing it.
“Foolish and reckless optimism” , that’s how 2005 2006 2007 felt to me.
Called corporate greed and biting off more than they could chew….! Margin calls. Banks want their $
The apartment building in Arizona is crazy
& they don’t look affordable ones at that
I don’t believe it being redeveloped it would be catalytic for that area… it’s a ton of apartments in that area
As people move back home apartments will sit empty they can't lower rent because the loans are to much
Continuing to keep your family and neighbors in prayer, Travis! All this time I've been going bonkers with you and I didn't know until Beryl that we're practically neighbors. (New Orleans). God Bless, bro! Stay hydrated and keep up the great work!
power outage for 10 days should help the situation
😂 but 😣
That last building in your video I’ve seen it as I drive south on 45 near Rankin, I thought it was being remodeled until I got a closer view of it.
Just a sheer magnitude of that project demolition blows my mind.
I have a friend of mine that was working on a hotel to a apartments conversion and they owe him $30,000 and refuse to pay him for work that has already been completed.
The sad thing is that there are already tenants living in the floors that he completed the work on already.
I think the money just dried up or had poor project & money management from above.
Wow, I had no idea it was that bad also in Texas which has seen huge growth the last several years with hundreds of thousands of people moving there from Cali, New York, Illinois, Michigan, etc. An excellent report! Why would any bank lend them money?
@@carefulconsumer8682 we had an oversupply of commercial 5 years ago and we kept building more. So we ended up with the same excess capacity after seeing more work from home, effectively wiping out values of older class A and all class B. We are seeing a huge flight to quality. I have no idea why anyone thought we needed this much capacity. Add to this the fact that the population center has shifted outside of the Inner Loop with a big shift to westward development and the burdensome commute times from the far western suburbs into the central biz district. Terrible planning by a lot of people. And a lot of the older commercial downtown would be difficult to convert. The Exxon Mobil building (tallest building west of the Mississippi in 1963) already is empty and has single pane windows. This will be a difficult CRE space for a while. I don't see how this won't have big knock on effects.
Love how you said financial vs finalizing, intuitively that is actually what they are doing because they ran out of money
It feels like 2006 2007
Totally Bonkers Guys 😊
I remember about 2006/7 there was a massive multi use concrete multi story building going up near the mall. then 1 day all the workers were gone, a few weeks later all the construction equipment was gone then all the materials on site were gone and it sat as this monolithic looking eyesore of cement and rebar. it sat like that for many years before it was finally torn down and a new structure went up about 2017
Was this in Arizona by chance?
@@kimcamping4848 that would be correct
Good job mindset jr.
Well done, Wyatt! 👍
Risky investment if there is no income from the project. Over supply speculation with weak demand equals investment failure. Diminished demand for office space due to COVID and work at home, vacated commercial demand.
Hey Wyatt!😊 Good work!
🎉🎉🎉 I would love to get me some mixed use commercial properties when TSHF. Thank you Brother Travis. It’s also great to see your son here.
Blessings,Carlos ✝️🙏❤️😊🇺🇸
Btw your son has an awesome voice to help you out here.
Great Job Wyatt
Travis what about 700 Louisiana and Greenway Plaza.
Way to go Wyatt! 👍
As a father, and grandfather, it looks like Wyatt was raised with guidance and morals. And has used that to make good decisions. Enjoyed your video. Always great to see a father and son sharing time, and great information, thanks
He is doing something.....keep going..talk and reading grade is excellent.
Excellent job Wyatt! What a great name!
Way to go Wyatt on story number 2!!!
Good job. That was BoNkErS.
Nice first start to being a RUclipsr Wyatt.
It's because you have a lot of power hungry people money hungry people running these apts. greed is a spirit needs to be prayed out. Managers start charging outrages things going on. This is a spiritual battle manifesting in the Natural. We wrestle not against flesh and blood, but against principalities in the air. People need to pray at all times, pray for everything.
cool to see you brining in your son on the show. Hope he can be a costar in the future! Family business real estate channel!
❤Wyatt, 👍 🎉great job !
Wyatt is a natural.
Those properties will have to be torn down, no one will buy them
Glad to see you spend time with your son (I do the same thing). He did great!
Great to see Wyatt! He did an awesome job. Travis slow down a little and include him more in the video next time. Nice to see the father son duo! Well done y’all! Bonkers!
Failure of commercial lenders to forecast dropping demand due to remote work. Texas's lack of regulation only works till it doesn't. The S&L Debacle of Texas in the 80's wiped billions from balance sheets. Conversely, I bought 19 condos during that crash. 🙂
What regulation SPECIFICALLY would prevent what exact problem??
You're just blowing zhit (& you didn't buy those 19 condos either...pfft!)
Oh man that new building crushed? Thats even crazier.
Props to Wyatt! More practice!
I'm not surprised on the co-living space--thats not a proven model outside of LA. Preston, great job!
Your son Wyatt did a great job and he's so handsome!😊
Multi family rent income in Texas is +1000 so foreclosures are lack of planning and greed by owner
Yeah.....the solution to high rents is to stop building. More costly planning and regulations will drop prices.
Lol
Great job
New subscriber. This is absolutely shocking. Thank you.
Welcome and this is nothing new! It is also getting worse!