Archive for the ‘investors’ Category

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.

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Austins Affordable Housing needs

November 30, 2010

I recently read an interesting article in Realty Line Newspaper (www.realtylineonline.com)   The article was analyzing austins affordable housing needs.   It was written by David Tandy of Gracy Title.   The article was highlights one of Austins Austins affordable housing not-for-profit organizations “Foundation Communities (http://www.foundcom.org/)” and their efforts to assist those who need affordable housing.   

Please check out the article attached to this post as a pdf and go to foundations communities website and support a not-forprofit organizaiton by giving back to those less fortunate this christmas season!   Follow the link: austin affordable housing

Owner Financing in Texas

July 5, 2010

From the Texas Association of Realtors:

“Many of us have been very concerned about the implementation of federal legislation known as the SAFE Act that would severely limit an individual’s ability to seller finance their property in Texas.

We are working on numerous regulatory and legislative solutions to this affront to private-property owners, and have some good news to report. At our urging, the chief regulator over the SAFE Act in Texas, the commissioner of the Texas Department of Savings and Mortgage Lending, has taken significant steps to allow Texas property owners to continue to seller finance up to five transactions in a 12-month period.

More specifically, the commissioner has delayed the implementation of the SAFE Act requirement for licensure in seller-financed transactions in Texas until August 31. This will give us time to implement regulatory and legislative changes during the coming months. For now it is important for you to know that the long-standing law of allowing a Texas seller to finance up to five transactions in a consecutive 12-month period is still in effect and the Texas Association of REALTORS® will continue to work at the federal and state level to see that this is a permanent solution.

Finally, this action would not have happened if not for the thousands of Texas REALTORS® who participated in our grassroots efforts to correct this abuse to private-property owners in Texas.”

 

Thank God in Texas we are still free to sell our homes anyway we choose ((at least 5 per year))

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

What is a multi leg real estate exchange?

March 2, 2010

What is a mulit-leg real estate exchange? It is a series of exchanges that allow you to take your real estate from where you are to where you want to go. How do you make something like that happen? With lots of flexibility and patience. You need to be able to move into assets that may not exactly fit your needs at this current time. They may not be the best fit for your long term financial plan. They may not even be in this country! They are simply a way to go from where you are to where you want to be. You need to be able to answer the question, “What else can it look like?” Have you heard the story about 1 red paper clip? http://oneredpaperclip.com/ That is a multi-leg exchange taken to the extreme because the exchange started with 1 red paper clip. What he needed was a taker? Are you a taker? What is a taker? It is someone who will take what someone else has and maybe exchange what they have. Do you have a hard to move property? Be a taker and it will soon go away. Do you want to know more? Call me at 512-689-6742 and we can discuss your real estate problem.

Are you growing your business?

February 9, 2010

One of the things I want to do this year is grow my business. So I began looking for opportunities to invest and to put together another group investment or syndication. I found a small apartment complex in one of the communities close to my home base and decided to go and look at it b/c it was a screaming great deal! I had to drive a little while to get to it but not too far. This neighboring community is very different from my home base but If I invest again in this area I will have a little experience in the area and may be able to get better results then I did when I first went into the area. This particular property is a foreclosure that appears was just over leveraged and once the debt service became too much for the previous owners they gave it back to the bank. The bank has hired a out of town broker who co-brokered the deal with a local guy. The local broker is a good guy and understands this market very well. He met me at the property and showed me around. Luckily for the bank and for me if I buy it the property has a guy looking over it and keeping the copper from growing legs. “growing legs” means things just get up and walk off i.e. get stolen borrowed or otherwise disappear. There are very few worse things that can happen then your HVAC’s, copper pipes, and wires growing legs. To replace those things cost an arm and a leg. I wanted to talk a bunch of pictures of the property but after I got there my battery died in the blackberry! Luckily the broker also has a blackberry and had his car charger so he let me charge my phone! After walking thru the place I decided that it as in ok shape and needs some work but nothing I think I cant handle so I made an offer to buy it all cash with no contingencies!

I did not offer the asking price b/c the agent and I talked a little about what I think about the property and about where the market it for this type of property. I think that the bank will need to take a bath on it and if I am able to help them I will try to do my part. This property would not be a good deal for me but a great deal if I am able to fix the problems. If I am not then it could turn into just a good deal. If all I can do is just buy a good deal then I should stay at home b/c good deals are a dime a dozen. What makes this business great is finding the great deal! The hardest thing in the world is to NOT BUY A GOOD DEAL. Good deals come along all the time but a great deal! Those are rare and when you have the potential to bring one of those down you have to be ready! If you have used all of your gun powder (investment capital) on good deals then when a great deal comes along you can not kill it and bring it home to feed your family b/c you have been taking all of these good deals.

If I get a good response from the bank I am going to talk to the current lone resident manager who is looking after the place to make sure nothing grows legs. I need to know what he knows and what happened to the past ownership.

If I end up buying it I will create an entire case study of it and post it on my case study page. Otherwise I will just write about my experience and see what happens.

This property is what I call a dirty ugly, ultra low-income property! I don’t call things a slum b/c in my opinion you can own low-income property and run it like a decent place to live or you can become a slum landlord! The property becomes a slum b/c of ownership 1st and foremost. If ownership cares then management cares and if management cares then resident’s care if everyone cares the place can be for lower income people but still be a great community and a great investment.

What is a dirty ugly?

February 7, 2010

it is a property that is dirty and ugly.   Need an example see below.

Why would someone own this????

Are you thinking long term about appreciation?

January 9, 2010

check out the blog post by the bawldguy!   http://www.bawldguy.com/how-to-quadruple-your-money-with-no-appreciation/

He is laying out the conservative analysis of a 5 year, no appreciation, property performance.   In other words what would our situation look like if you bought a property that did not appreciate but all the returns you received were modest (small) cashflow and debt reduction.   He then stretched it out a little further and discussed what your situation would look like if you paid off this property in a short 16 years.   Go take a read of his analysis it is good.   Call me at 512-689-6742 if you want to discuss how to make this situation your worse case scenario in a real estate  investment.

Borrowing Off Your House Is Now a Thing of the Past – CNBC

January 5, 2010

Borrowing Off Your House Is Now a Thing of the Past – CNBC.

here we go tighter and tigher financing options. What will you do as a real estate investor? What are your options to get any reasonable financing? Ask someone who has refinanced 3 buildings in the middle of this financial meltdown for thier own portfolio. Dont know who that is? Its me. Call me at 512-689-6742 to see what I had to do to get a good loan on some of my property and how you can too.


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