Jordan is a Real Estate Investor, Host of the Austin Real Estate Investing Podcast, and the owner of the Moorhead Team. He has been an entrepreneur since he was a kid and got into real estate investing before he got a realtor’s license. He focuses on growing his business, investing in real estate, and helping others get started in real estate. In total, Jordan and the Moorhead Team have acquired 29 units along with syndications. In today’s episode, Jordan will go into the details about single families, multi-families, turn-key, and his real estate background.
Jordan Nicholas Moorhead Real Estate Background:
- Full-time realtor and investor
- 5 years of real estate investing experience
- Portfolio consist of 25 units and 3 syndications
- Based in Austin, TX
- Say hi to him at: www.themoorheadteam.kw.com
- Best Ever Book: The Lifestyle Investor
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Best Ever Tweet:
“It’s very hard to find houses for people to buy. It’s very easy to find people who want to buy houses.” – Jordan Nicholas Moorhead
TRANSCRIPTION
Ash Patel: Hello, Best Ever listeners. Welcome to The Best Real Estate Investing Advice Ever Show. I’m Ash Patel and I’m here with today’s guest, Jordan Moorhead. Jordan is joining us from Austin, Texas. He’s a full-time realtor with five years of real estate investing experience. His portfolio consists of 25 units and three syndications. Jordan, how are you?
Jordan Moorhead: Doing great, Ash. How are you?
Ash Patel: Doing very well. Thank you. Before we get started, can you tell us a little bit more about your background and what you’re focused on now?
Jordan Moorhead: My background – I got started in real estate investing actually before I got a realtor’s license. That’s part of the reason why I got a realtor’s license. I owned a fitness business that I started when I was 23; I had some trainers, and I had an admin working with me. We were really helping a lot of people; we had up to 62 clients at one point in time. And I just got bored doing that. Also at the same time, while I was doing that, I said I need to start house hacking. So I bought a duplex. And it just really started from there. I got my real estate license about a year and a half after the duplex. We’ve always just really been into real estate, and it took me until 2016 to get started.
Ash Patel: In Austin, Texas, you guys are absolutely on fire. What is it like being a realtor and an investor in Austin?
Jordan Moorhead: It’s hard for both, absolutely. Probably harder for the investment side. I still invest for cash flow, I’m not financially free yet. It’s very hard to find that in Austin. I’ve found it by taking on really big rehab jobs. The same thing with clients, I’ve found properties that work for the clients that I have, because I work with mostly investors or places that need some sort of rehab done to them. So there’s just not any sort of turnkey rental thing happening here at all.
Ash Patel: So 25 units – what does that consist of? How many single-families or multi-families?
Jordan Moorhead: It’s funny, I should have updated that before we started here. We’re actually up to 29 now.
Ash Patel: Congrats.
Jordan Moorhead: Thank you so much. I started with the duplex, bought a sixplex next, then bought another two sixplexes after that, sold that duplex, bought another two-unit here in Austin. My first single families were actually only about three months ago. So I had 20 units when I started buying single families with a partner in Louisville, Kentucky. Now we have nine single families in Louisville, and I have 20 units between Louisville and Austin.
Break: [00:03:24] – [00:05:25]
Ash Patel: Did you get your real estate license at the same time that you started house hacking? Or did one come before the other?
Jordan Moorhead: House hacking came first.
Ash Patel: Okay. So you had the real estate bug, and then decided to get your real estate license. What’s it like being a realtor in Austin? It’s probably like fishing in a stocked pond; throw your bait and catch a fish.
Jordan Moorhead: Catch a buyer. The hard part is finding the buyer a house to buy. Right now we have point four months of inventory, which means that everything sold at the current rate that it’s selling, everything would be gone in less than two weeks. The average days on market is 33 days, and that’s from listing to close. That means they’re only on the market for about three days. It’s very hard to find houses for people to buy. It’s very, very easy to find people who want to buy houses.
Ash Patel: And what are you doing to find people that want to list their property?
Jordan Moorhead: I’m calling people. I put aside time every day and just call people. Whether they’re rentals or properties that aren’t on the market at all. Maybe somebody doesn’t know they can sell. I just take the chance and call.
Ash Patel: What kind of investing are you looking for in Austin?
Jordan Moorhead: I’m not doing a ton of investing in Austin, because like I said, I’m investing for cash flow. I’m house hacking in Austin and I’m remodeling properties and taking that money and investing in Louisville where I’m from. I’m from Louisville, Kentucky.
Ash Patel: So give me an idea of what cap rates are for multifamily in probably the hottest market in the country.
Jordan Moorhead: They’re somewhere between three and five for all the different classes. So A, B, and C are just right stacked on top of each other.
Ash Patel: So buyers are buying for appreciation more than cash flow.
Jordan Moorhead: Absolutely. I know people who are syndicating apartment complexes here and they say “Hey, we just know it’s going to go up,” and I think they’re probably right.
Ash Patel: So what’s your rate of return? Zero, except for the IRR when you sell. What syndications have you done?
Jordan Moorhead: I’m actually, with you guys – I have one in Dallas, the Vista 121 property.
Ash Patel: Joe Fairless and Ashcroft.
Jordan Moorhead: Yup, with Joe Fairless. I’ve never organized one myself. I’ve invested in three. I’m in the Vista 121 property in Dallas. I’m in one in Tampa Bay, I think it’s Clearwater. And then I’m in one with Todd Dexheimer in Memphis, Tennessee.
Ash Patel: So somebody that does the house-hacking, you’re a realtor, you see deals all the time. What makes you want to invest passively?
Jordan Moorhead: It’s so easy. It’s just great. You get that check every month in the mail. You don’t have to deal with anything. The hardest thing right now too is finding a deal. My thought process is I don’t have to go out and find them, I just get the notifications from Ashcroft Capital that there’s a new deal coming up, and here’s all the information about it, and here are the expected returns. All you have to do is invest with us and you get the return. I know they pay out, because I’ve done them before. I started small, I started with the minimum investment with you guys, and just continued to invest after that because it’s so easy. There’s no headache.
Ash Patel: Yeah, it’s just that mailbox money. So Jordan, if somebody from out of state wants to invest in Austin, how do they find deals amongst the properties that are available? I know it’s hard to find deals. But what’s the best way to go about it? I’m an out-of-state investor wanting to pump money into this booming town.
Jordan Moorhead: I would say, and what I tell everybody, is look for the areas where it’s going to be growing in the next few years. Look outside of Austin. Where’s the path of progress? Absolutely don’t look in Austin. Don’t look at Round Rock, which is right north of Austin, and it’s been hot for a long time.
Ash Patel: Where is that path of progress?
Jordan Moorhead: Really, it’s almost a reverse C around Austin. You’re going South towards San Antonio. It’s growing like crazy. It’s absolutely growing North. And then on the East side, it’s growing like crazy. There’s nothing but land on the East side and they’re starting to develop it. So smaller towns like Manor and Elgin are really growing quickly.
Ash Patel: Would you look to invest in any of those yourself and do house hacks?
Jordan Moorhead: Yeah, we’re looking for one for my girlfriend right now. The house we’re in, it’s a duplex in East Austin. She wants to buy either a single-family or a duplex, and we’re looking in that reverse C around Austin. So Austin is kind of a rectangular-looking town if you look at the freeways. I always think reverse C around Austin. And that’s where the growth is.
Ash Patel: Got it. What are your challenges right now as being a realtor?
Jordan Moorhead: Finding properties for people to buy. If you’re going up against everybody else that’s putting a 50k to $100,000 over list and they’re waiving the appraisal – it’s hard to make that work for an investor where they’re buying based on numbers. They’re typically not going to throw, at least the people I work with aren’t going to put an extra $100,000 into a deal. It doesn’t end up working very well if you do that. So it’s a big challenge to find them. As I said, I’m steering people a little bit outside of Austin where you can still get some positive cash flow and you’ll absolutely get the appreciation, too.
Ash Patel: Jordan, what’s your Best Ever real estate investing advice?
Jordan Moorhead: Get started and buy for the long term. My best advice that I give to newer investors is to find something where you can add value. I don’t understand turnkey; I don’t see why you want to buy something you can’t fix it up at all, you can’t raise the rents at all. That doesn’t make any sense to me.
Ash Patel: I agree. Jordan, are you ready for the lightning round?
Jordan Moorhead: Absolutely. Let’s do it.
Ash Patel: Great. First, a quick word from our partners.
Break: [00:11:16] – [00:11:53]
Ash Patel: Jordan, what’s the Best Ever book you’ve recently read?
Jordan Moorhead: Lifestyle Investor. I’m actually almost done with it right now. I really like it.
Ash Patel: What did you get out of that book? What was your big takeaway?
Jordan Moorhead: Just to invest to make sure that you’re not working too much and you’re considering your lifestyle when you’re investing. So if you’re investing… Let’s take passive investing, for instance – I think that’s a great way to invest for your lifestyle. It provides you whatever lifestyle you want. You don’t have to sit around and manage your properties all day. So really thinking about the end goal when you’re investing; all passive income is not truly passive.
Ash Patel: Spoken like a true southerner from Austin. This stereotype fits. You’re right. So Jordan, what’s the Best Ever way you like to give back?
Jordan Moorhead: I like to give to charities. There’s a charity that I’ve been giving to, it’s called One Life Fully Lived. A guy named Tim Rhode put it together. It’s just helping people get out of the rut they’re in and develop a life that they can never dream of.
Ash Patel: Got it. Jordan, how can the Best Ever listeners reach out to you?
Jordan Moorhead: Find me on Facebook or BiggerPockets. Really any social media. It’s just Jordan Moorhead.
Ash Patel: Got it. Jordan, thank you for being on the show today. You live in what Elon Musk called the greatest boomtown of our generation. There should be a lot of excitement ahead of you. Thank you for sharing your story with us.
Jordan Moorhead: Absolutely. Thank you, and anybody that’s looking to get started, I think house hacking is the best way to go. But no matter what, find something you can add value to.
Ash Patel: Yeah. Jordan, have a Best Ever day.
Jordan Moorhead: Thanks, Ash.
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