Why you should Consider Leases. Everyone has to live somewhere. That means people must either own their home or rent—or live with their parents. Do you know what segment of the Houston real estate market had the greatest increase last year? Single-family leases. They were up more than 16 percent compared to 2010. (Okay, country home sales were up 18 percent so leases technically had the second largest increase, but that wouldn’t serve the purpose of this story.) According to HAR’s January 2012 figures, … [Read more...]
FHA 203K loan is perfect for foreclosures
The FHA 203k loan was written in 1978 with the revision of the National Housing Act (NHA). In the first 30 years of the program only 1,700 FHA 203(k) loans were written in the US. The loan was rewritten to become a direct process endorsement making the lender responsible for all steps in the process. FHA 203(k) grew rapidly between 1996 and 1997 but started declining because of the abundance of new housing with easy financing available. The FHA 203 (k) loan had all but disappeared when HUD in 2005 introduced … [Read more...]
Things to consider when buying Investment property
1. LOCATION. The location will determine the tenants who will occupy your property. More desirable properties will appreciate faster than those with undesirable locations. The average time the property is on the market vacant will be less. 2. PROPERTY CONDITION. If the property has major structural problems such as a cracked foundation, major rook leak, and sheet rock damage everywhere let us find you a property in better condition. These homes are money pits and will continually need expensive repairs … [Read more...]
Buying Rental Property
Houston continues to provide a great return on investment for investors who own rental property. Only 53% of Houstonians own their home. New homes sales are expected to reach over 20,000 homes in 2012. That number is far below sales in 2006 when builders built 49,543 homes. The current median price of a home is down 25.8% from 2006. According to the Kinder Institute at Rice University, Houston gained an astounding 1,200,000 people between 2000 and 2010, according to census figures, averaging 123,000 people each … [Read more...]
If the home is a steal it may not be a deal
Now that you have made the decision to invest in Real Estate, you want to be sure that your investment property will not bankrupt you. Your goal is not to beautify Houston by remodeling run down homes, but to make a return on your investment. That inner loop property you think is a steal may actually be a money pit. Bill Edge, your inner loop realtor would like to share a few tips with you on how to avoid buying the wrong home. I have spent years working with investors who buy properties to flip or lease in … [Read more...]
Houston Commercial Real Estate forecast for 2011
Patrick O’Connor a recognized expert in Real Estate Appraisal and commercial property advisor sees a U shaped recovery for Real Estate. He sees no meaningful recovery for the next year or two as we remain at the bottom of the U. FINANCE The FDIC is encouraging banks to work with borrowers. The FDIC can not afford to close all the insolvent banks. Banks will work with borrowers who are attempting to solve their problems. REO sales will come from Financial Conduits and mortgage backed securities lenders … [Read more...]
IRA for Real Estate
If the option of using tax-deferred funds to purchase property sounds appealing, you’ll need to locate an independent IRA custodian that allows real estate investments and work with that company to set up an IRA account. Most banks and brokerage companies—the most common IRA account options—limit your choices to certificates of deposit, stocks, mutual funds, annuities, and similar financial instruments. But Section 408 of the Internal Revenue Code permits individuals to purchase land, commercial property, … [Read more...]
How to buy a Bank/Mortgage Foreclosure
Here is what happens after you have picked out a property which happens to be a Bank or Mortgage Company foreclosure. Negotiation Your offer for the property listing needs to be realistic. If the property went on the market yesterday. Then the seller is not going to be too negotiable. If the property has been on the market for six months with no contract offers. Then the seller is going to be very negotiable. Home Warranty Banks and mortgage companies will not pay for a home warranty. Don’t write it in the … [Read more...]
FHA Houston Property Inspection List
It is important for both homeowners and buyers to know what a FHA/HUD property appraiser will look for. The FHA states that it "has shifted from its historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property conditions that rise above the level of cosmetic defects, minor defects or normal wear and tear." The FHA inspection covers Safety, Security, and Soundness issues with the home. The age of the home has nothing to do with whether the home will pass or … [Read more...]
Why invest in Houston Real Estate
Because Houston has the fastest growing economy in the United States Houston offers a great opportunity for the investor in the Real Estate market. Houston did not have the rapid appreciation and then the crash of markets in states such as Florida, and California. But prices have fallen up to 50% in some subdivisions. This has been caused by a combination of a panic reaction on the part of the public, and a desire of REO owners to sell their properties quickly. I used to tell my clients that they could not … [Read more...]