Archive for January, 2011

Texas apartment data

January 31, 2011

Occupancy 93.3%!!!

November was 93.1%

I am full in austin meaning 100% occupancy.   Now I need to get full and paying but being full is a good start.  Check out the write up from ALNsystems.com about the Austin, San Antonio, Dallas, Houston, and Fort Worth markets.   I attached them as a PDF to this post.aln apartment data 1-11-11

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Calpers finally gets it..

January 29, 2011

The wall street journal has an article about CALPERS changing thier real estate strategy.   From real estate private equity to CASHFLOW.

http://online.wsj.com/article/SB10001424052748704013604576104470130722678.html

Do you have some cashflow in your portfolio?   There certainly is a place for some flips, rehabs, etc but cashflow is where you make money long term in real estate.   Do you need to discuss your real estate goals with a professional real estate investor?   Call me…(512) 782-8982 or email me.

1 in 12 live in TEXAS!

January 28, 2011

One of 12 Americans lives in Texas (and other 2010 census findings)

By San Antonio Express-News

Read more: http://www.beaumontenterprise.com/default/article/One-of-12-Americans-lives-in-Texas-and-other-965303.php#ixzz1CGh7udiH

I really like the part about the cheap air conditioning!   Especially in summer!   I dont like the part about the budget deficit that Texas faces.
Overall, the article provides some evidence that supports my reasoning for real estate investment in Texas.   Do you have a real estate quesiton?   Need a real estate consultant?   Need real estate expert testimony?   Are you ready to make some investments in Texas real estate?   Call me 512-782-8982 or send me an email.

Business Digest: Treasury’s $600 billion bond program still needed, Fed says; New-home sales in 2010 drop to lowest level in 47 years

January 27, 2011

Business Digest: Treasury’s $600 billion bond program still needed, Fed says; New-home sales in 2010 drop to lowest level in 47 years.

Here is what the article says about housing: ”

HOUSING

New-home sales in 2010 drop to their lowest level in 47 years

Buyers purchased the fewest number of new homes last year on records going back 47 years.

Sales for all of 2010 totaled 321,000, a drop of 14.4 percent from the 375,000 homes sold in 2009, the Commerce Department said Wednesday. It was the fifth consecutive year that sales have declined after hitting record highs for the five previous years when the housing market was booming.

The year ended on a stronger note. Buyers purchased new homes at a seasonally adjusted annual rate of 329,000 units in December, a 17.5 percent increase from November’s pace. Still, economists say it could be years before sales rise to a healthy rate of 600,000 units a year.”

The new housing sales are the big number to pay attention to because they are a trailing indicator of economic activity.   The logic goes like this:   New Job, New Car, New House!.   No new houses means that something is broken and has continued to stay broken for the last 5 years.   What does this mean for real estate in your area?   It depends on the local economic activity of your area.   In Austin we are experiencing slow job growth (2% in 2010) and lower unemployment 7.3 (or something like that for 2010).   If new houses are not being built for those new jobs then we should be seeing rents increase or give-a-ways drop off, or a combination of the two.    Have we been seeing those things happen?

YES!!!!   YEAH for the rental real estate game!

I hit a telephone pole that’s why I can’t pay my rent

January 17, 2011

“I hit a telephone pole that’s why I can’t pay my rent. ”   Yep thats the latest excuse that I heard as to why the tenants could not pay thier rent.   They even attached the picture below…..

My advice to them was to follow Ron’s rules and things that make you a better landlord and investor: Rule# 235,876   Slow down and pay your rent in the mail!   

You never hear of the mail man hitting a telephone pole that’s why the rent did not get there on time.

Traded a Mercedes Benz for some cash and a computer

January 15, 2011

Today was the beginning of a wonderful trading adventure.   I traded a mercedes benz for some cash and a computer

Now I need to trade the compter for something of value to me.   Have you done anything creative this year.    The proceeds of the sale fo the car are going to charity and if I can get something of value for the computer it will go to charity as well.   Got anything for trade?   I am a taker with a computer and I can add some real estate.   I have two separate houses for trade one with about 75K in equity and another with about 55K in equity.   See my other posts about rosenberry and coldsprings for sale.   Do I have any takers?

7910 Rosenberry for sale $175,000 or trade or something creative!

January 12, 2011

What can a real estate trade look like.    I purposed a trade for a 4-plex on a street where I own several other properties.

The house shown above is for sale or trade.    What is a real estate trade?   Most people can only think in terms of cash from a lender to a seller for real estate transactions but in fact Trading something of value for real estate happens all the time just not as frequent as a cash sale does.   There are lots of things that would stop a trade from happening.   Like realtors who want some cash and can only think of one way to get it.   From the seller’s proceeds!     Most banks want to turn over there money and write new mortgages so they like to get paid off when sellers sale property especially if thrcan loan that money out at higher rages of interest.   Most sellers like to get loans out of thier names when they sell a property and dont want the hassel of keeping up with a property or potentially taking it back from a buyers who did not pay the mortgage or having to catch up on the mortgage when a seller fell behind.    These are just a few of the things that need to be addressed when you trade a property but nevertheless trades still happen.   Why?

Sometimes there are things more important then cash!   Like what you say?   Getting out of ownership of a property.   Out of ownership of a property is just that no longer wanting to own a property.   There are not property problems just ownership problems.   There are times when not owning a property is better then owning it.   Divorse, death, cash short falls, balloon payments comming due, increases in interest rates and payments, etc etc etc.

A trade is not for everyone there are some people with no equity who need to just get a cash sell and be done.   And there is always a cash price that every property will sell for.   The sellers may not always like that cash price but there is a price nevertheless.   When I first purposed my trade the sellers did not like the idea!    In fact they rejected the ideal all together.   However after they took time to analyze the market and the property in particular they realized that maybe just maybe a trade may be in thier best interest in the long run today.   

If the mortgage market continues to deny access to real estate investors with more than 10 properties then there will always be a market for trades.   If we see a double dip in property prices and another increase in the supply of available properties there will be a market for trading properties.  

Does a trade require an appraisal?  NO, only two people need to agree on the properties value; the seller and the buyer.   Does the property need to have outside consultants evaluate or approve of the condition, marketability, or use of the property.  NO only the seller and the buyer.   In some ways trading a property can be easier than a cash sell and faster.   

Lastly, lots of people are familiar with the 1031 exchange rules.   A trade is an exchange and may qualify for a 1031 exchange depending upon the particulars of the trade.   the 1031 exchange rules are modeled off of concept of the trade.

The 4-plex shown above is similar to one that I would like to trade the house for.

21903 Cold Springs for sale or trade

January 10, 2011

This is a property with 2 houses on one lot.   The small house needs work.   Click on the following link to see the listing details and some pictures.

I will trade it or use it as the down payment on a larger property.   It is listed for sale for $125K.    I will owner finance it and will buy it back after a trade.   I will deliver it free and clear of any liens or can leave the financing that is currently on it in place.     Do you have an income property that you would like to trade or a development project that needs new life.   Call me lets talk about what the different options are for your project and my project.   There are houses in the area that sell for over $400K and this parcel already has the utilities in place if you desired to replace the houses and build a large house on top of the hill.

Customer Full – Residential to see the data that is in the MLS concerning the house.

CAll me at 512-782-8982

Offer on a foreclosure in Austin

January 9, 2011

This week I made an offer on a foreclosed property this week.  It was listed for 69K but I only wanted to offer 45 to 50K.  Why such a low offer on an already reduced priced house?    The house originally had a loan on it for over 133K and I only wanted to offer 45 to 50K b/c of the foundation issues that will require a foundation repair and will forever impair the salability of the house.   In addition the plumbing will most likely require some repair if not today sometime in the near future b/c of the foundation work that is needed.    Can this house be financed today?    AS is?   NO WAY that is why it is not work the 69K that the bank is asking.   This house will require cash and cash always requires a discount to the list price or asking price or the true value of the house.   AS they say CASH is KING! or as I like to say Ron’s rule # 3458921 to making your self a better real estate investor:   ”

“Remember the golden rule:  HE who has the GOLD (in this case CASH) makes the rules.”

Here is a like to some info on the house from my website and the MLS:   Customer Full – Residential

There were a few other offers on the house so we will see what happens with this offer.

If you would like to know more about how, why, when, where, and how to make great real estate investmtents please email me and lets discuss your overall plan and how real estate fits into it and what types of things would work best for your investment style. 512-782-8982 in my office number.

FIRE!!!

January 9, 2011

over the holidays I had to deal with a fire in one of the apartments that I own.   I am relieved that the resident was not killed and thankful that the damage was not to the entire building!   Fires can wreck a real estate investment luckily this one is insured so the damage will not be as large as it could have been, but nevertheless it is a big distraction when you want to start the new year on a positive note.  Check out some of the pictures of the fire

after the fire

inside the unit


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