One of the aspects of Austin living that I am most proud of is the community's focus on green living.  The Mueller project is the perfect example.  Originally conceived of in 1984 as an attempt to increase the sustainability of urban living, it has taken almost thirty years for the dream to come to fruition.  Now green living is red hot and the East Side of 35 is a target for smart investors.  A mixed living development that boasts 1 tree for every 4 parking spots, encourages walking - not driving, built to increase water and energy efficiency and revels in the preservation of green spaces - only a stones throw from downtown?  What's not to love? 

A rising tide lifts all boats and the influx of technology, business and residents in the Mueller area has…

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At his annual economic forecast event held on Thursday February 23 at the Austin Convention Center, Angelos Angelou pointed to a number of really positive indicators for Austin in the coming months. In fact, he used the phrase "fantastic news," which is just exactly what real estate investors want to hear. For instance:

●      Job growth at the rate of 19,000 new positions this year and at least 20,000 in 2013. Why does that look so good? We only picked up 13,000 last year. In fact, we've gained back all the jobs that were lost during the recession and Angelou thinks the local unemployment rate, which is roughly 6 percent right now is headed below 5 percent. Granted, these are not likely to be high-paying jobs, but employment puts purchasing power in…

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Let's talk about taxes. Okay. Let's talk about one tax. The new 3.8% tax on some investment income that will take effect on January 1, 2013. First, let's cut straight to the myth. This tax WILL NOT apply to all real estate transactions. In fact, it's not just a real estate tax, it's a capital gains tax on some investment income.

Who will pay the tax?

- Individuals with an adjusted gross income of more than $200,000.

- Couples who file a joint return with an adjusted gross income of more than $250,000.

What will be taxed? SOME, but NOT all:

- interest

- dividend

- rents (less expenses)

- capital gains (less capital losses.)

And where the heck did this tax originate? That part is interesting, and it's the aspect of the new tax…

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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

31

-46.55%

Probability of Selling

44.23%

71.03%

60.59%

…

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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 rules attached to each part of the process. (And the best case scenario is that your serve the…

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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 else overseeing the place all you really have to do is:

●     …

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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 opportunity to leverage that into an even more diversified…

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Homework time, friends. On January 1, 2013 a new 3.8 percent tax will take effect on some investment income including real estate transactions. It's going to be important for you to clearly understand this tax, which is -- shock of shocks - complicated, which is why advise you to have a pow-wow with you own tax advisor.

I don't know about you, but I'm the kind of person who does better with real life examples. The National Association of REALTORS has put together a terrific brochure that outlines some scenarios in which the new tax will come into play. The link to the material is at the bottom of this post, but there are a few general things you'll want to keep in mind as you read.

First, where did this thing come from? It was passed by Congress in…

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On Wednesday, July 20, Shonda Novak wrote a piece for the Austin American-Statesman some of you might have seen, "Central Texas Existing Home Sales up 9 Percent in June; Median Price Still at $205,000." I think I've made it clear I'm a big proponent of education for real estate investors, which includes scanning the relevant news. (Seriously, if you haven't looked into a news reader for your smartphone, take the time to do it.)

While the headline on this piece pretty much says it all, there are some things from the text that are worth pointing out. We are bucking the national trend here in Central Texas and Austin specifically. Now, that's not to say the market is completely out of danger, but Austin is a big draw city -- for retirees, as we pointed…

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If there's one thing that's music to a landlord's ears it's the news that the market is trending toward rent increases. According to a Marcus and Millichap survey quoted in the Austin Business Journal, rents on 1-4 unit properties are inching up this quarter by 4.2% with another 5% predicted for next quarter. Add this on top of the overall 2010 gain of 5% calculated by the Texas Apartment Association and this is a very, very good time to be real estate investors.

Essentially three factors are contributing to this upward trend, starting with improved unemployment figures and, in general, a better economic outlook, yesterday's plunge on the stock market notwithstanding. It's very tempting and very easy to watch a day like that and to listen to…

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