By Tom Branch, on January 25th, 2012 
Wow! It’s hard to believe but it’s raining in North Texas. With Stage Four Water Restrictions looming, this is a welcome sight.
Last year’s drought left our lakes and reservoirs dangerously low. People living on Cedar Creek Lake and many of the local lakes could not get their boats in the water. A positive side was that it was a good time to do any repairs or maintenance on their retaining walls.
While low lakes may seem like an inconvenience, there’s a much larger implication for those of us living here. Those lakes and reservoirs are also the source of our drinking water. When the levels are low, cities begin the various stages of water restrictions in an effort to insure we have water to drink.
The droughts also have an impact on our homes. The vast majority of our foundations are slab foundations. These foundations are sensitive to changes in the water content in our expansive soils. Last year we saw a dramatic rise in homes with foundation issues due to the drought. This cost north Texas homeowners millions of dollars.
Let it rain!
Photo Copyright 2012 Imaged2Sell
By Tom Branch, on November 16th, 2011 
HomeSteps, a Freddie Mac real estate sales unit, kicked off a sales promotion this week to unload some of its inventory of foreclosed homes.
Its Winter Sales Promotion for owner-occupant buyers includes:
- Paying up to 3 percent of the final sales price toward the buyer’s closing costs for initial offers received between Nov. 15 and Jan. 31, 2012. Escrow must be closed on or before March 15, 2012, to qualify.
- Two-year Home Protect limited home warranty, which covers such things as the heating, air conditioning, electrical, plumbing, and other major systems and appliances. Home Protect also will offer a discount of up to 30 percent on the purchase of appliances. (For eligibility requirements, visit www.HomeSteps.com/smartbuy.)
Looking to purchase a foreclosure in the greater Dallas area? Contact us to work with a team of certified distressed property experts.
Source: Freddie Mac | Photo: Licensed from iStockPhoto
By Tom Branch, on October 18th, 2011 
“Can I apply for a Texas Homestead exemption?” This was the question asked of me by a recent past client after she received her 2011 property tax bill. She had purchased the home in May of 2011 so she was not eligible for the exception in 2011. The law requires that you own and occupy the home on January 1 of the tax year.
Many people think the primary benefit of the homestead exemption is a reduction in property taxes. While the savings is nice, the most important thing is that homestead laws prevent any creditor (except for the mortgage holder, a taxing authority, or the holder of a note created for a home improvement loan) from forcing the sale of the homestead to satisfy nonpayment of a debt.
On September 1, 2011 the state law was updated and applicants for a homestead exemption are required to provide a copy of their Texas Drivers License and a copy of a vehicle registration with the application. Note that the addresses on the two documents must match the property address on the application.
Links to local appraisal districts in the greater Dallas area:
Collin County | Dallas County | Denton County | Rockwall County
Applications for the 2012 exemption have to be received by the approriate appraisal district no earlier than January 1, 2012 and no later than April 30, 2012.
Photo: Licensed from iStockPhoto
By Tom Branch, on October 3rd, 2011  Last night I met with some people at a vacant home in Plano. They had responded to a Craigslist advertisement for a rental home. They had met with the “owner” at the property and put down a deposit to hold it. They were supposed to meet with the owner at a later date to sign the lease. The problem is the home is not for lease and the “owner” is a scammer.
We did a story with CW33 last year (Online Rental Scam Targets Real Estate Listings) on a similar type of scam being run on consumers. Since most people are wary enough not to wire money, so it appears the scammers have grown bolder and have found a new way to perpetrate the fraud. They actually meet their victims in person.
The scammer gains access to the property by obtaining the combination lockbox code for the property, creates an online advertisement, and goes about collecting applications and rental deposits. Once they “approve” the tenant, they set up a meeting to collect the deposit. In this case, the scammer gave the victim access to the property so they could begin moving in their things early. They knew something was wrong when another victim arrived at the home to meet with the “owner” and turn over a rental deposit.
If the deal sounds too good to be true, it usually is. When in doubt, contact a local real estate professional. Not only will you have professional representation, but the fee is usually paid by the landlord.
See all Plano Rental and Lease Home Listings.
By Susan L. Johnson, on September 22nd, 2011 
Hi. My name is Gracie and I am 6 years young. My Mom wanted me to write this since she felt it would be best described from a “GREYT” prospective.
My Mom adopted me in February of 2009. She told me she always loved the regal stance and peaceful demeanor of the greyhounds she had met. Unfortunately Mom had to say goodbye to two previous hounds (Basenji’s) at the same time due to age and illness. It broke her heart and she was so very sad. They were rescues too.
While her heart healed she began to consider fulfilling her dream of having a greyhound. She searched greyhound rescue groups for hours every night…and decided to look seriously at Greyhound Adoption League of Texas. She read lots and lots of athlete ads and looked at the pictures to consider a happy match on paper and in the soul of a greyhound.
My Mom first picked me to go visit at my Foster Mommy’s house, Lisa B. She even cut out my pictures and taped them up to look at every day until we met. She wanted to be sure she could make me happy and we would be a good match.
It was love at first sight. She took me home, let me keep my name of Gracie and stayed in touch with the Foster Mommy so she would know everything was good. Foster Mommy even came and had a visit! I showed her all my new toys, my couch, my doggie beds, etc. I have even been to a Rehab/Nursing Home to visit the patients there. They loved me and after about two hours, I had to go home and take a nap. I love people so much and never meet a stranger. I love my Mom and she loves me too.
We are special together! I hope you liked my story. “ROO!”
By Tom Branch, on August 13th, 2011 
With real estate leasing going strong in many parts of the nation, you may be considering getting into Real Estate Investing. In this blog, I’ll describe some of the basic terminology.
All examples will be based upon a $100,000 purchase price, $1,000 a month rent, $300 a month operating expenses, and a $450 a month mortgage.
Gross Rent Multiplier
GRM is used to describe a ratio between the cost of a property and the anticipated rental rate. It calculated by dividing the purchase price of the property by the monthly rent. In our example, we would use $100,000 / 1,000 to arrive at a GRM of 10. The higher the number is the better.
Net Operating Income
Net Operating Income is the total cost of the property excluding any mortgage. It’s calculated by adding up all the operating expenses including taxes, insurance, management fees, leasing fees, maintenance, and HOA dues. The total monthly costs are $300 and the monthly rent is $1,000. We would use $1,000 – $300 to arrive at a Net Operating Income of $700. Use $700 * 12 to arrive at an Annual Net Operating Income of $8,400
Capitalization Rate
The Capitalization rate is a ratio between the Net Operating Income and either the original or current market value of a property. We would use $8,400 / $100,000 to arrive at an annual Capitalization Rate of 8.4 percent.
Cash Flow
Cash Flow is the movement of cash in and out of the property. Positive cash flow is usually the goal. It is calculated by subtracting the Net Operating Income and any existing debt from the Gross Income. We would use $1000 – ($300 + $450) to arrive at a monthly Cash Flow of $250.
Occupancy Rate
Occupancy Rate is the ratio between the amount of time a property is rented and the amount of time is vacant. If there is no actual data, I usually use 90 percent as a starting point for analyzing a property.
Knowing the basic terminology and how to calculate them is essential to evaluating any real estate investment purchase.
Looking to purchase investment properties in the North Dallas area? Contact us! We have the experience and knowledge to find good investment properties, lease them to suitable tenants, and provide on-going property management if needed.
By Tom Branch, on August 9th, 2011 
I’ve been watching the rental market in the greater Dallas area for a number of years. It’s finally a landlord’s market again.
Since 2008 we have seen a steady increase in capitalization and occupancy rates. We’re to the point today that any decent rental property is leased in less than a week.
There’s nothing magic about the increase. It’s simple economics. As the availability of easy money dried-up in 2008, those would-be buyers went back to leasing homes. This allowed the glut of inventory we once had to slowly decrease. This stabilized occupancy rates and prevented the downward spiral of capitalization rates we saw during the market boom.
Come forward to 2010 and there are a couple of other factors that are driving the need for rental and lease homes in DFW. As homes went into foreclosure or were short-sold, those homeowners had no choice but to look for rental homes. While the Texas economy is stable, many of the people who could still qualify for a mortgage decided to sit it out and continue to rent. These two factors have basically drained the rental market in the area.
Currently I have almost 50 people looking for rentals and there are so few available. As soon as they come on the market, there are lots of showings and multiple lease applications.
I listed a large home in Frisco on a Friday. I had four applications on Monday. These were solid applicants with high credit scores, little debt, and substantial incomes.
We recently purchased a property for a local investor and leased it for him in less than a week. The Gross Rent Multiplier exceeded 10 with a Capitalization Rate of about 6.5 percent. This is prior to taxes and does not factor in appreciation over time.
It’s a great time to purchase investment property! Prices are low and the need for rental homes continues to climb.
Are you looking to purchase investment properties? Contact us! We have the experience and knowledge to find good investment properties, lease them to suitable tenants, and provide on-going property management if needed.
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