Texas real estate

We are constantly asked questions about our wholesale properties, as well as Houston investment property in general. Here are some resources we use to help us as investors, as well as some answers to the most common questions we get.

Q: Where do you get your property values from?

A: We use multiple online sources to determine the current market value of properties, as well as driving the area and checking to make sure we have apples-to-apples comparisons. Here are the best sites to use:

1) HAR.com is the most valuable resource when it comes to Houston real estate. You can search recent sales info to get reasonably accurate comps, as well as see what other properties are listed for sale in that area to see what else is available. It is always good to know what your competition is when it comes to flipping houses, or holding them as rentals.
2) Zillow.com gives a more accurate value in larger urban areas than smaller towns. The values for Houston are usually within 3-5% of a houses value, but can be off by 20% or more in a smaller town like Magnolia.
3) The local county auditor sites:
Harris County: hcad.org
Fort Bend County: fbcad.org
Montgomery County: mcad-tx.org
Galveston County: galvestoncad.org

Q: Where can I get financing for Houston area investment real estate?

A: What you plan to do with the property will determine which option is best for you. If you have the cash to buy a discounted property without financing it, that is always the easiest way to go. If you are buying a property as a rental that is in “move-in” condition or already has tenants in place, acquiring conventional financing from your local bank or credit union is an option if you have good credit and a 10-20% down payment. Local credit unions are more investor friendly right now than big banks, and you will likely get a better interest rate as well. If you are…

Rehabbing to resell or rent out: Hard money is the easiest way to go. You will pay a 12-18% interest rate as well as a couple of points, but if you have a good deal on your hands, hard money lenders care more about the deal than about your credit score. Just be aware that a lot of banks will require the title to be in your name(seasoned) for at least3-6 months(sometimes as much as 12 months) before they will make a loan to an end buyer to acquire your property, or let you refinance the renovated property to a conventional non-owner occupied property loan. If you do hold it as a rental and refinance the property, you will likely need a good credit score, and possibly down payment money if the appraisal on the property comes back too low.

Rehabbing to live in yourself: An FHA 203K loan will likely be your best option. It gives you up to a year to complete renovations, and then you will be able to transition into a conventional 15 or 30 year mortgage with little difficulty. You will be required to have good credit and a down payment, but you will get the best interest rate available. http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Q: What is wholesale property/wholesaler?

A: A wholesale property is a property sold at a deep discount to its fair market value by a wholesaler. A wholesaler is someone who works with motivated sellers, puts their property under contract, and then sells the rights to their contract to the investor/buyer.

Q: What is the wholesale process?

A: A motivated seller such as a tired landlord calls a wholesaler and offers to sell him/her a house worth $100,000 for $60,000 that needs $5,000 in repairs. The wholesaler inspects the property and verifies the value, then puts the property under contract. The wholesaler then offers the property for sale to their buyers list at $63,000. The buyer meets with the wholesaler, buys the rights to the original purchase contract for $3,000, and has the original contract assigned to them. The buyer then closes on the property, repairs it, and then resells it on the retail market for $100,000, or rents it out generating passive income every month.

This is a win-win-win situation. The seller wins because they were able to sell their property quickly and without having to pay a realtor commission. The wholesaler wins because they were able to make a couple grand by helping put a deal together that otherwise wouldn’t have happened. The buyer wins because they now have a property that they paid $68,000($60k purchase price, $5k repairs, $3k assignment fee) that is worth $100,000.

By: Matthew N Miller

A lot of home sellers resent paying real estate agent commissions and question whether or not they might be better off selling their own home ‘for sale by owner’ FSBO.

Well, there is no clear-cut answer. It really depends on the seller and how successful he or she is likely to be at selling real estate. It is true that agent commissions can run into thousands, or even tens of thousands, of dollars depending on the value of the property. And, sometimes the sale comes together very quickly with minimum effort on the part of the real estate agent. However, that is not always the case with many property sales become a long drawn-out process.

FSBO home sellers experience mixed results because they either lack the time, people skills, marketing skills, negotiating skills and even the inclination to sell their own home. For others, selling their home comes as an exciting challenge they cannot resist.

Obviously, the big advantage of selling your own property; is that you avoid the agent commission. Make no mistake – if you dream of making a larger down payment on your next home, or want to retire, or simply want to hang onto the equity you have worked so hard for… then you could save thousands by paying yourself NOT an agent.

On the other hand, hiring a real estate agent and paying thousands in commissions, could be money well spent. A case in point would be when a real estate agent gets you a better sale price for your home.

There are a lot of variables to consider: like your own ability and enthusiasm verses the experience of a professional agent. There are pros and cons for each method of selling. A lot will depend on you or the skill of the agent representing you.

Most agents would argue; if you needed a heart operation would you perform it yourself, or have an experienced heart surgeon do it for you? Maybe they are right?

Maybe you do need a professional agent who is experienced in the business for selling homes? But, the counter argument is that, an increasing number of people are successfully selling their own homes (FSBO), WITHOUT the services of an experienced agent. What’s more, they are saving themselves thousands of dollars in commissions.

Real estate agents will also argue; selling a home in today’s market is not like it was a decade ago. The market is more competitive, the buyers are much more astute, and the laws are more complex. Add to this the property sales statistics proving that the average agent has a better chance of selling a home in a shorter time span (and frequently for more money) than the average FSBO seller. But, what is average?

Not every seller is the same and nor is every real estate agent. There is no shortage of incompetent agents and there plenty of “super capable” ones too. The trick is differentiating the good from the bad!

With that said, perhaps the biggest obstacle a seller faces is the “emotional attachment” the vendor has to the property being sold. The home might be where the kids grew up, or where the family pet is buried. The home might have been designed, decorated, or landscaped to the vendor’s personal tastes. That is why many sellers are blind to the flaws that an agent can easily spot. And, that is also why an agent may have a different view of what the home is really worth in today’s competitive market.

An experienced real estate agent can provide a seller with a Comparative Market Analysis (CMA), so the seller knows what the home is actually worth, instead of what the vendor feels it is worth. An agent can provide an independent and objective view which can be the difference in making a sale.

So, think carefully before deciding what home selling method suits you best. You may be able to do a far better job yourself and save yourself thousands of dollars in real estate agent commissions.

If you do not genuinely believe you can do a better job, then you might be best to consider listing with a local agent. Choose carefully, interview more than one real estate agent and ask for testimonials from satisfied customers.

And above all, make sure he or she earns the agent commissions you are paying.

By: Noel Peebles

Cascade Caverns is the only cavern in Texas that has a 100 foot underground waterfall, and it is in our own back yard! Located in the hill country, in a little town named Boerne, take exit #543 off of Interstate Highway 10 to Cascade Caverns Road, just minutes from San Antonio.

This cavern is an amazing place to visit. The cavern is about 140 feet deep and a half mile long. On the amazing hour long tour visitors will see amazing rooms, rock formations, and glistening water dropping from the ceiling of the cave. The cave even has a rain forest!

The caverns are open daily and the temperature in the cavern is a cool 68 degrees year round! The cavern is a part of a 105 acre park full of wildlife and beautiful sites. The park is equipped with bar-b-que pits and tables. Bring the family and make a day out of it.

You can reach the cavern by calling them a 830-755-8080 for more information.

Long Horn Cavern State Park

Located in Burnet Texas, this cavern is an awesome site and a beautiful place to visit. Long Horn cavern is one of the few caverns that were formed by rivers. There are tours available daily for the cavern. The tour takes visitors into the caves to see all the wonders that the river carved out. There are various rocks and other strange formations to see.

There are also special tours available and are by reservations only, and are recommended for the serious spelunkers only. There are requirements for this tour. You can contact them at 512-756-4680 for more information and hours and rates.

The Caverns of Sonora

This cavern is a little further away from Austin, but is definitely worth the drive. The caverns are located in Sonora, which is located on Interstate 10, about half way between San Antonio and Big Bend National Park.

There are tours available as well as specialized tours for the more adventurous cave goers.

They also have underground classroom tours, where visitors get to see first hand how to dig for fossils and other interesting topics.

Visitors can also pan for gems such as fossils, emeralds, and the best part is that each panning bag is guaranteed to have some type of specimens inside, you can’t lose!

For more information on the caverns and for rates and availability on the tours, give them a call at 325-387-3105.

Texas is filled with some of the most spectacular caves and caverns. As summer approaches and the temperatures begin to soar, we want to find some sort of vacation spot that is cool and fun. The caves and caverns of Texas could be the next vacation you and your family take. There is always something to discover and see. There have been approximately 130 caves discovered in this area, and possibly many more that have not been discovered.

By: Ki Gray

Despite the crisis in the mortgage market and the tightening of credit standards for home loans, the Austin Real Estate Market remains steady and strong. It is true that home prices in the Austin area overall are down from 2007, but the following factors show a positive trend:

The average sold price has rebounded by 7.9% to $252, 417 compared to January of 2006. New listings for January of this year are up 82% to 10,088 active listings compared to 7793 listings the same time last year. Neighborhoods such as Cedar Park and Round Rock have experienced strong positive trends in sale prices. Homes in Northwest and Southwest Austin are going to contract within days of being listed and many are receiving multiple offers. Austin’s unemployment rate is currently 3.3 %, below the statewide rate of 3.9 % and the national rate of 4.4%. Statewide, Texas has a positive job growth rate of 2%. This factor is a great help to the housing market. According to USA Today, Austin’s homes are about 5% undervalued, causing a large amount of investor interest.

In simple terms, the outlook for the Austin Real Estate Market for 2008 is steady. This means there will not be large jumps in home appreciation, but at the same time, there will be steady positive price growth in popular neighborhoods-unlike many other large real estate markets nationwide. The growing amount of inventory will swing the market from seller’s to buyer’s favor in 2008, and there will be many excellent values to be had. During the house value boom, from 2002 to 2006, home values in Austin overall did not have the radical upward swings that markets in L.A. or Miami had. Because of this, there is not a corresponding huge downward swing in home value in the Austin Real Estate Market.

Austin Real Estate Lakeway

By: Seth Callen

Ok, you’ve decided to buy a home. Did you know that it is possible for you to get a huge rebate at closing on the next home you purchase. How, just ask your agent for 1/2 their commission.

Now, you may be asking “why would an agent give me 1/2 their commission”? It’s easy to understand if you just follow the next few steps.

Step 1 – Understand that 90% of all the real estate activity is accomplished by only 10% of the agent work force. That leaves 90% of the agents out there “going hungry”. Your job is to find a hungry agent.

Step 2 – You’ve decided to buy a home and would like an unadvertised rebate. Let your fingers do the walking. Just call any broker and say that you would like to do business with an agent at their company who will rebate 1/2 their commission. State that you want an agent who has at least 3 years experience and is preferrably a “desk fee” type agent. Ok, new term “desk fee”. That is an agent who gets to keep all the commission with no split to the broker. At my office, I pay $350 a month and get to keep all commissions generated with no split to the broker. Because I keep all the commission, I don’t have to get broker agreement regarding sales office commissions. Call 5 or more offices and have each broker do the research for you. They should be able to find you a few candidates.

Step 3 – You need to prove to the agent that you are a willing and able buyer. Go to a lender and ask to get “fully qualified” to buy a home in your price range. This will take you one step beyond the normal pre-qualification step. Now, get the “full qualification” letter, so you can present it to the agent you choose. With this letter in hand and your ability to buy, you will appear like “GOLD” to the agent.

Step 4 – Ask the agent to send you listings that meet your needs, you agree to pre-drive before viewing (state that this is your trade off to get 1/2 the commission). After seeing a home of interest, call the agent to view.

Step 5 – When you find a home that meets your needs, you will have have to make known on the Purchase and Sales Agreement, how the rebate is to be received. I have done rebates with the following terminology when closing costs were involved:

Example: Selling agent agrees to take $5,000 less due from seller at closing than is mentioned on the listing agreement. Seller agrees to pay $5,000 towards buyers closing costs and pre-paids (make sure that your agent writes it up in accordance with his state laws).

As you can see this is a win-win for all those involved. You, the buyer, get a nice rebate in the form of closing costs. The seller nets the same money by paying you $5,000 and $5,000 less to commission. Your agent gets a nice commission and the listing agent gets the property sold netting his commission.

Hint: Always make sure that your lender allows rebates, gifts, etc. before doing business with them. Some are so restrictive that they don’t allow rebates even though they may be allowed in your state.

Step 6 – Keep in mind that rebates aren’t allowed in all states. Currently, the states of AK, ID, IA, KS, KY, LA, MS, NJ, OK, OR, Tn and WV don’t allow rebates or are restrictive in agent incentives. If you reside in one of these states, ask an agent or call the real estate law division.

With Steps 1 to 6, you should now have sufficient knowledge to get a nice rebate on the next home you purchase.

By: Tom Jacobson

The Internet has become a hot bed for apartment searches. Especially in the Texas market, there are three or four cities that are especially attractive. Houston, Dallas, Fort Worth, and San Antonio are cities that are conducive to apartment construction and all of these cities contain large populations. In fact the Houston and Dallas/Fort Worth metropolitan areas are some of the largest in the United States. Texas is known for economic growth and a high quality of life at more economical prices than other cities in the U.S.

More specifically areas outside of Houston are achieving a high amount of searches on the major search engines including Google, Yahoo, and Bing. There are a few areas that are receiving hundreds of searches a day, and are hence, it can be stated these areas are extremely popular and are a final destination sough by many. We have outlined what areas these are, and offer a few ideas of why they may be so popular today.

The Woodlands

The Woodlands, Tx is located about 25 miles north of Houston. Situated just north of the intersection of the Hardy Toll Road and Interstate 45, The Woodlands has strict building codes which all larger stores and retail centers must conform to. The Woodlands has over 460 world class shops, department stores, and numerous boutiques. Entertainment includes Waterway Taxis, and the Cynthia Woods Mitchell Pavillion. Other attractions including a heavily wooded environment that make these city an escape from a big city atmosphere

There are hundreds of search conducted each day for Woodlands apartments. The two most popular terms include Woodlands apartments and Woodlands Texas apartments.

Cypress, TX

Cypress, not to be confused with Cypress, CA is located northwest of Downtown Houston along Highway 290. Far enough out from Houston, it is heavily residential and boasts award winning schools and the suburban life so many are searching for today.

Cypress is home to green belts, including bike trails, hiking, canoeing, and a myriad of golf courses. Combined with affordable apartment housing, this makes this area a strong attraction. Some of the more popular search terms include Cypress apartments and Cypress Texas apartments.

Both of these areas just outside of Houston are very popular places today.

By: Andrew Reichek

The numerous methods of generating cash with real estate consist of not just the numerous types of house, but land, apartments, industrial and commercial buildings. You will find various methods you will make your earnings.

Pay-down on the mortgage. Equity builds with each payment made. In the event you get the lowest rate of interest you are able to, much more of every payment will go in the direction of the principal.

Get immediate equity by purchasing very low. Purchase at less than market price and you get immediate equity which will be transformed into revenue during promotion.

Selling higher. In the event you clear it up good, allow it to be simple to purchase. Have patience, wait for the right buyer and earn a higher selling price, there is nothing like virtue of patience especially in real estate.

Finance the sale. Selling a property is much easier when you are able to arrange for the financing as then they buyer will not have to run from pillar to post looking for lenders. You can also give a discount or small cash down to attract more buyers. You may also develop curiosity through the mortgage.

Altering the use. Discover a greater use for the property, convert it to something more so that the subsequent owner is not just buying a house or an apartment but a house with an office space. This could imply changing condos to apartments etc. Maybe converting a house into workplace room will get the greatest return.

Enhance and repair. Repairing something that needs it’s apparent, but you’ll need to approach it creatively and cautiously. Focus only on those that increase the worth of the property like the number of bedrooms or bathroom, may be an additional patio or balcony.

Promote it in components. Occasionally in real estate, the components are really worth greater than the entire. For instance, splitting off an additional great deal to promote for $30,000 will hardly ever lower the worth of a house, so you will make much more cash eventually.

Take a look at the resources of revenue and consider the way you can use a couple of them in your subsequent real estate investment. You will get wonderfully inventive generating cash with real estate.

Generating money in real estate is a matter of imagination and hard work, the right strategy of advertising combined with a good dose of communication and you could be sitting on a pot of gold.

By: Ashlee Pannell

Sedona is located in the idyllic red-rock mountains of Northern Arizona; once the home to Walt Disney and the backdrop for countless westerns it has now become one the nations premier tourist and retirement locations.

The Sedona real estate market is starting to increase in value. The numbers show that 2009 is the year we turned the corner in greater Sedona real estate, including the Village of Oak Creek, Oak Creek Canyon and the Red Rock Loop Rd Area.

The statistics from the Sedona Board of Realtors tell the tale: residential sales in 2009 where 40% ahead of 2008, vacant lot sales were 60% ahead of 2008, and the inventory of residential units for sale dropped from 600 January 1, 2009 to 480+/- on January 1, 2010.

The decrease in the amount of homes for sale is very significant to the health of Sedona real estate. 38% of sales in 2009 involved a foreclosure related sale. There have had plenty of foreclosures, but they have been absorbed well throughout the year, most sitting on the market for less than eight weeks. 2010 has seen less foreclosures than 2009 and they are staying on the market for less time.

Real estate loans in the united states are at historic lows, making payments for investors and homebuyers alike very attractive.

Interestingly the sales of the upper end, million dollar plus homes, are still sluggish and are the one segment of the market that has yet to rebound.

Whether you are looking for investment properties, a cabin up Oak Creek Canyon, a second home in Sedona, or that dream retirement property the time might be right!

Sedona Real Estate is a website where you can search all the properties for sale in the greater Sedona area, including Oak Creek Canyon, Village of Oak Creek, Page Springs, Cottonwood and the historic mining town of Jerome

If you are considering purchasing a home in Sedona you can contact a local realtor at stephcea@yahoo.net.

By: Nick Mead

Austin’s KUT radio station is a public radio station that lives up to its mission “to be the most trusted radio source for news and music in Central Texas.” Owned and operated by the University of Texas at Austin, KUT focuses on broadcasting mostly locally-produced music programming and news, as well as some NPR, PRI, and BBC broadcasts.

From the call-letters alone, you can tell the station has a long history. Three-letter call numbers started falling out of use in the 20′s, when four-letter call numbers were introduced to help accommodate the growing number of radio stations. Originally, radio call signs were used by telegraph stations so that the telegraph operators could identify themselves without having to spell out their full name or location. Regulations passed by the federal government in the early teens ensured that these three-letter call signs were assigned formally, to prevent overlap. International agreements were made to allot initial letters to various nations. The United States was given the letters N, W, and KDA to KZZ (KAA-KCZ were initially given to Germany and were not assigned to the US until 1929).

KUT was given its call letters in 1925, under the control of the Physics Department at the University of Texas. Under the management and direction of Professor Simpson L. Brown, programs went on the air between 8 to 10 pm three nights a week, with programming ranging from University Symphony concerts, to discussions and lectures by faculty. But by 1927, the station expenses exceeded the available funding, and it was dismantled not to reappear for another 30 years.

In 1958, the station was given an air license through the University of Texas, this time through the School of Journalism. And it has been operating ever since, celebrating its 45th anniversary in 2003. In 2002, KUT News was established and has since become a recognized leader in new reporting for Central Texas, winning 12 Edward R. Murrow awards for journalistic excellence.

Each week, nearly 500,000 people tune in to KUT broadcasts or visit their online productions. And like other public radio stations, it is taking the lead on HD radio, with the inclusion of two HD radio channels. HD radio is considered by some to be them most significant advance in radio broadcasting since the introduction of FM stereo. This technology enables broadcasters to deliver additional channels within a single frequency. KUT 90.5-2 provides public radio programming from NPR, Public Radio International, American Public Media, and the BBC news. HD channel 80.5-3 is KUT’s all-jazz frequency. In addition to providing additional content not available on traditional frequencies, HD Radio provides CD-quality sound.

Some of the popular local music shows include Larry Monroe (with Blue Monday, Phil Music, and other programs), Eklektikos with John Aielli, Music with Jay Trachtenberg, Folkways, Left of the Dial with Jeff McCord, and Texas Music Matters, with David Brown, covering the developments within the Texas music industry. KUT features several locally-produced news shows, including Latino USA with Maria Hinojosa and In Black America with John Hanson.

KUT depends upon listener funding, and so like other radio stations of its ilk, holds on-air pledge drive to fill the coffers with listener contributions. These contributions account for 80% of the station’s overall budget. So if you tune in and like what you hear, do think about contributing to keep this Austin tradition on the airwaves for another 50 years.

By: Ki Gray

Now that you have decided on the home to purchase, you should ensure you have a good understanding of what conveys with the sale of the property. Unless the contract specifically states an item conveys, one should take care to ensure the contract includes any item that is to convey with the sale. Often times, people negotiate items such as mirrors, pot racks, furniture, and appliances. If any of these items are not already mentioned in your contract, they should be made part of the contract by way of a non realty addendum. Always consult your attorney or REALTOR® for advice on ensuring these items are properly note on your contract.

Including descriptions such as size and color are a good idea within your contract to avoid potential confusion or issues. If it is a refrigerator, wine chiller, or any item that has a serial number or model number, this should also be written in the contract to ensure the same item conveys at closing. One would be surprised at the changes that can happen in items such as these, and sometimes they simply get taken in error.

In Texas, it is typical for items such as window treatments to convey, however, be careful that exclusions are not written whereby these items are excluded, leaving you without curtains or curtains rods! There may even be an exclusion of existing fixtures such as ceiling fans, surround sound speakers, pot racks, even dishwashers. Don’t forget to ask what item will go in place of the item and ask for a copy of the description of the item that will be replacing the existing item, and ensure it is also made part of your contract.

Bottom line… read your contract carefully; know what you are getting, and ask questions. Your REALTOR® is there to help you, but as a buyer, you should also do your due diligence and take prudent care in reading your sales contract prior to signing.

By: Liz Voss