Archive for April, 2010

how are your returns?

April 23, 2010

Why Many Investors Keep Fooling Themselves
by Jason Zweig
Tuesday, January 19, 2010 of the wall street journal penned a great article about How high most investors returns are. You can check it out at http://finance.yahoo.com/retirement/article/108608/why-many-investors-keep-fooling-themselves?mod=retire-planning

To summarize the article says that most investors cant earn over 5% or so on thier investments. The Stock market has returned 9.8% since 1926 according to Ibbotson Associates. Can you out earn that figure? After fees, taxes, and inflation the return drops down to just 4%. 4% SUCKS! Just in case you were wondering.

So how do you out earn the US stock market? I use real estate that produces cashflow today to spend or invest and normally will not get out of bed to even look at returns under 20% on a cash on cash basis. I hope you read the article and if you have questions about how to make your retirement better give me a call at 512-782-8982

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property tax values decreasing in Austin?

April 19, 2010

Can it be true? Will we see a drop in what property owners owe the Tax man in Austin TX? According to the Austin American Statesman we should see a 5.3% drop in tax values in our lovely city. What does that mean to revenues for the City, County and School districts? Big trouble! Thats what!
http://www.statesman.com/business/travis-property-values-face-first-drop-since-2003-545370.html is the link to the full story in the paper. We will have to wait and see what this does to the tax rate and how that will effect the interested parties and their perspective budgets!

the death of easy owner financing

April 19, 2010

Well the government has finally gone and done it. They have killed easy owner finanicing in our Great State. Gee thanks I will be sure to send my representatives a thank you letter for the SAFE ACT and its implementation. If you have ever wanted to exit a house that was an investment property you must now be a mortgage broker in order to sell it if it was an investment property. I guess now those buyers who need owner financing from investors will now have to pay a little bit more for the headache the investor has to go through in order to owner finance a house to an buyer who wants to live there. Did the wise washington politicians think that the SAFE ACT would protect buyers who need finaning? PLEEEEAAAASEEEE!!!!! The only thing it did was make it harder for those who need the private financing to get it. They were not smart enough outlaw private financing. oh sorry they cant do that but they sure can make it harder for investors to finance a transaction to buyers. Exactly who did they think would pay for things when they become harder to do? The investors who want to use owner financing as an exit stratege? NO WAY it is the buyers the ones the SAFE ACT are supposed to protect. Now if I need to hire a mortgage broker to take the application, service the note and approve buyers exactly who do they think will pay for those services? ME NOT a chance the buyers will. If they are strapped for cash how exactly will that help them? It will not it will be a detriment to the buying process. Now how does the SAFE ACT help sell more houses? Making things harder to do in no way shape or fashion helps sell more houses. So who exactly benefits from the so called safe act? THE BANKS the ones who did not do a good job restricting credit, underwritting loans, servicing those loans, or moving excess inventory in the form of REPO’s. Check out this analysis in my box.net account entitled Apr10-seller-financing for an analysis of the so called SAFE ACT and what you should be doing if you want to owner financing a house. Good luck and God Bless!


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