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.
By Tom Branch, on June 18th, 2011 
I received an email from a past client asking me why the soil is pulling away from his foundation. The short answer is, “The soil is drying out and shrinking. You need to water.”
For those of you interested in a more detailed explanation, read on.
North Texas is known for its clay soil. Clay soil expands and contracts substantially based upon the moisture in the soil. If the soil dries out, it contracts. If it gets wet, it expands. While this seems simple enough, that shrinkage and expansion can have a dramatic impact on a slab foundation.
A slab foundation sits directly on the soil. Since clay soil expands and contracts, the slab is actually “floating” on the soil. Keeping the moisture level in the soil around the foundation stable is critical to the long-term stability of the foundation. While the in-ground sprinkler system often provides enough water, many times soaker hoses are installed to help regulate the moisture level.
The bottom line is if the soil is pulling away from the slab the moisture content is dropping and steps should be taken to add water. Doing so early can save thousands in foundation repairs later.
If you think you may have an issue, contact a DFW professional engineer or a foundation company.
By Tom Branch, on June 4th, 2011 
I was out working in one of my new home developments today.
As I chatted with the sales staff about how things were going, a common theme became apparent. Potential buyers are sitting on the fence waiting on home prices and interest rates to drop further!
This has been fueled by the reports of nationwide home price drops by many of the national media outlets. The old adage,”location, location, location” comes to mind. All real estate is local!
I did an interview locally last week when this news was released discussing the local numbers. Dallas Fort Worth is actually bucking the national trend with average sales prices up 3.2 percent in North Texas and 5.4 percent in Collin County. Prices are not going down here.
I looked deeper into the numbers and found that new listings are down 17 percent while sales volume is down only 14 percent. What these numbers indicate is that the market is absorbing inventory at a rate greater than new inventory is coming on the market. The supply of available homes is getting smaller. This helps keep prices stable or rising.
To be fair, values may continue to drop in other places depending on a number of factors. Contact a local real estate professional to find out what’s going on in your area.
Mortgage interest rates are at 50 year lows. They may fluctuate slightly but I don’t see them trending much lower. The only reason they remain so low today is because the government is buying most of the mortgage paper and holding the rates low. Eventually the government is going to want to push this back into the private sector but the private sector is not going to get back into mortgage backed securities until rates climb.
What does all this mean for Dallas Fort Worth home buyers? Now may be one of the best times to purchase a home. Prices are stable in most areas and we’re seeing an upward trend over the past year. Mortgage interest rates are at 50-year lows.
It’s time for home buyers in DFW to get off the fence.
Search the North Texas MLS
By Tom Branch, on May 11th, 2011 
I don’t know what it is about lake-front properties in Texas. Perhaps it’s because it can be hot and dry in the summer or maybe we simply like the idea of seeing water and the trees that usually call the area around our lakes home.
Water-front homes run from $30k for a small one bedroom cabin on a remote lake to several million dollars for a mansion on a large body of water close to one of the major cities. There is truly something for everyone.
See all water-front homes in the Dallas – Fort Worth Metroplex.
See all lake homes in North Texas.
Looking for that perfect lake home? Contact us!
By Tom Branch, on February 15th, 2011 Are you looking to lease or rent a house, townhouse, or condominium in the Dallas Fort Worth area? Check out www.ntxleasing.com.
As tenant representatives, we can assist you in your search, show you properties, and negotiate the terms of the lease. The best part is our fee is paid by the property owner!
By Tom Branch, on January 1st, 2011 The Branch Team has relaunched HUDHomesDFW.com!
If you’re searching for HUD Foreclosures or HUD Homes, this website is for you. It contains information about HUD properties and links to all the available HUD homes in Collin, Dallas, Denton, Rockwall, and Tarrant counties.
Unlike many foreclosure sites, we will not ask you to pay us to look at foreclosure listings, nor will we require you to give us your contact information. Feel free to use the “HUD Search” links on the site and you can have immediate access to all active HUD Foreclosure listings in the greater Dallas – Ft. Worth Metroplex.
The Branch Team with RE/MAX Dallas Suburbs is a HUD Approved Broker and is authorized to place bids on HUD properties.
By Tom Branch, on December 26th, 2010 I recently took part in an NBC 5 News story by Grant Stinchfield. The story titled, “Super Bowl Rentals Could Become Brothels, Group Says” focuses on the possibility that leased homes could be used for illegal activity.
 Licensed from iStockPhoto With the Superbowl coming to town in 2011 and the hint of big money, some homeowners close to the stadium (and those not so close) are considering leasing their homes for the event. Grant raises a great point that anyone considering leasing their homes needs to exercise caution.
While this is true in any lease situation, these short-term leases represent a huge risk to the owner. If you are looking into a short-term lease consider the following:
Take a Lease Application. Most of us would never lease our home without one so why do it now?
Run a Background Check. Part of the lease application should be an authorization to do a background check including criminal and credit.
Put the Lease in Writing. While Texas Law recognizes a verbal lease for less than one year, it’s critical to get the details in writing. Contact a local real estate professional or an attorney to have the document drafted. You have to plan for holding-over or damage to the property. If you don’t, you may find yourself having to go through the eviction process and find damage that exceeds any profit made on the lease.
Remember the Golden Rule of Business. If it sounds to good to be true, it usually is.
The Superbowl will have a huge economic impact on the DFW Metroplex. If you decide to lease your home to cash-in on that impact, take steps to protect yourself and your property.
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