Real Estate Blog 
Putting Your Focus on the Cap Rate is Not the Answer
Thursday, January 26th, 2012 at 5:54pm. 117 Views, 0 Comments.
Cap rate, cap rate, cap rate. There is so much focus on cap rates that investors are missing solid opportunities for no other reason than that they aren't familiar with Austin. Let's just put it in plain and simple language. If you are looking for a high cap rate, you are NOT going to be satisfied with the location of the property or the tenant base. Write that down on a sticky note and put it somewhere so that you have to keep reading it.
A mediocre market is a stagnant market with low appreciation. Demand drives appreciation. Stagnant markets have no demand. There is no real reason for the rents to increase except to meet the cost of operation or to adjust…
Minimizing Investment Risks when Evaluating a Potential Property
Thursday, January 19th, 2012 at 4:07pm. 151 Views, 2 Comments.
Last week we discussed handling your own apprehensions in risk management by seeking the help of a knowledgeable real estate investment professional, and essentially serving an apprenticeship. It's an invaluable model to both learn a new "trade," and to have a wise counselor at the same time. No investment pro worth his salt will tell you he can make risk go away, but he will show you viable techniques to minimize risk.
I like to tell new investors that all investment is a process. If you work the process, you're immediately hedging your risks. This starts with doing your own math. Check out the numbers you're being given. When people start claiming really high rates of return, which…
Risk Management Step One: Control the Fear
Thursday, January 5th, 2012 at 9:53am. 203 Views, 0 Comments.
"Real estate investing is risky." Don't you love it when someone says something that obvious? Of course, what is considerably less obvious is how you manage that, both in terms of the practical business and financial considerations, and your own psychological tolerance for the process. Truthfully? The best way to get "used" to the risk is with help.
Apprenticeship used to be a standard model for learning a new trade. You want to learn to be a silversmith? You go find a silversmith. You want to learn how to invest in real estate and not get eaten alive on your first deal? You go find yourself a seasoned realtor who specializes in investment properties. Not all agents are the same, and…
The Austin Duplex Market: Key Market Indicators For 2011 vs 2010
Thursday, December 29th, 2011 at 12:28pm. 208 Views, 0 Comments.
Let’s take a look at a great key indicator of how real, actual market data shows that the duplex market in particular had clearly turned the corner by the end of 2010.
“Probability of Selling” (POS). The probability of selling is arrived at by comparing how many duplexes were actually listed, sold and closed versus how many in total were originally listed for sale (whether they were sold, withdrawn, or expired.)
|
OVERVIEW |
3rd Quarter - 2010 |
3rd Quarter - 2011 |
% Change Over Prior Year |
|
SOLD Units |
46 |
76 |
65.22% |
|
WD & Exp |
58 … |
Eviction: The Topic No One Likes
Friday, December 9th, 2011 at 10:43am. 440 Views, 0 Comments.
This is not a fun subject. How's that for a great way to start a blog post? Well, it's not. Nobody, even a ticked-off landlord, really wants to put someone out on the street, but sometimes you will have to deal with an eviction. This is a big topic, with more ins and outs than I can cover in one post, but here are the basics.
Eviction in Texas
There are four steps to evict a tenant that are required in Texas:
- Delivering a Notice to Vacate
- Filing an Original Petition to start a lawsuit against the tenant. (If necessary.)
- A court hearing.
- Filing a Write of Possession to order the Constable to remove the Tenant.
Naturally, there are…
Is a Property Manager a Good Addition to Your Team?
Friday, November 18th, 2011 at 8:38am. 260 Views, 4 Comments.
Good property management is an absolute necessity of real estate investing though, on a day-to-day basis it can be time consuming and just downright maddening. Not everyone has either the skills or the temperament to do the job. If you're not a "people person" with strong communication skills, this is not something you're going to like to do. Not liking what you're doing generally leads to procrastination. Putting off needed management tasks is not the way to get and keep good tenants.
However, it's a huge mistake to think that if you hire a property manager you're not going to be involved with the property -- and a bigger mistake to actually not be involved. Yes, in theory, with someone…
Long-Term Investment Climate in Texas
Thursday, November 10th, 2011 at 2:21pm. 349 Views, 3 Comments.
Last week we spent some time talking about the favorable investment and business climate in Texas with an eye toward having conversations with potential partners and financiers. The goal of most of us who are in investment real estate is the next "big" deal -- no matter how you might define "big" in the context of your personal plans. One of the things I find myself hashing around with business associates is short-term versus long-term opportunity.
After several decades of "boom," the "bust" that has plagued the American economy since late 2008 has many people leery -- especially people in real estate -- and especially anyone with a mortgage. It's tremendously important in…
Talking Texas: Long-Range Economic Growth Ahead
Friday, November 4th, 2011 at 5:31pm. 291 Views, 0 Comments.
Just recently I was asked to explain to some potential clients why Texas has one of the best business and investment climates in the nation. It wasn't an issue of finding something to talk about, but figuring out when to stop talking. This is the kind of information real estate investors need to have at their fingertips to negotiate conversations with financiers and potential partners.
First, and I especially like this statistic, Texans are entrepreneurs. The Kauffman Index of Entrepreneurial Activities is a measure of entrepreneurs per 100,000 adults in a certain area. Nationally, the number is 340. In Texas, it's 400. We have a large and growing economy, and we are actively seizing the…
Snapshot Austin: A Realistic Look at the Future Real Estate Investors Can Expect
Thursday, October 27th, 2011 at 2:41pm. 181 Views, 1 Comments.
Every day it hits us. One depressing news story about the world economic climate after another. In Austin? We don't have a reason to be depressed. Trust me!
I've said it before -- and I'm sure you will hear me say it again -- Texas is among the few places that has fared well above the pack in this ongoing economic recession. And Austin itself has done even better.
Developers know that timing is just as important as location. Right now Austin's city officials are frantically working to guide local growth over the next 30 years. Their plan is to push for development near key transportation hubs and, at the same time, to find real, viable solutions to Austin's existing traffic…
Putting Your Focus on the Cap Rate is Not the Answer
Cap rate, cap rate, cap rate. There is so much focus on cap rates that i... Add Comment Read MoreMinimizing Investment Risks when Evaluating a Potential Property
Last week we discussed handling your own apprehensions in risk managemen... 2Comments Read MoreRisk Management Step One: Control the Fear
"Real estate investing is risky." Don't you love it when someo... Add Comment Read MoreWe would love to share with you, what people are saying about us!
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