Real Estate Brokerage & Property Management Blog

Here you will find the latest real estate endeavor stuff I engage in on a daily basis.

Monday, April 27, 2009

Foreclosure Trip Tip

Hi Prospects & Friends,

I went by to see this foreclosure last Saturday. The house is nice in size being it is 4,654 sq.ft. & listed for $209,900. The only thing I don't like about it, is the color & design style, other than that the house is perfect, because all the #'s work. I'm on a destiny to find myself a foreclosure to fix up & live in for myself that has an elegant style & rich in taste, as well as priced right & #'s work in my equation like this house. What I mean by #'s is calculating the taxes, maintenance fees, & insurance to estimate what my p&i mortgage payment/sales price should be. See example below based on this foreclosure:

Yearly Taxes- $7,810
Annual Maintenance- $400
Proposed Yearly Insurance- $3,300
Monthly Totals- $959.16 (Taxes, maintenance fees, insurance)
Monthly rents in this subdivision are going for .52/sq.ft. So this house is @ $2420.08
Mortgage p&i payment for this foreclosure only should be no more than $1,460.92/mth., based on my analysis.
CMA Value- $73.92/sq.ft (this foreclosure's value is really worth $344,000, based on CMA in last 6 months for this subdivision)

A interest rate will make or break your situation, so let's compare 6% & 8% interest rates on my example & investment analysis equation.
Listing Price $209,900
Interest Rate 6%
Down Payment 20%
Allowed Maximum p&i $1,460.92, expenses $959.16
.52/sq.ft. say value should be at $244,000 ($1460.92/6.00x1000)
So in this case with 6% interest your p&i is $1,007.52 which is less than the $1,460.92 I said was your maximum amount you shouldn't go over with p&i mortgage payment, add this to $959.16 & your safe @ $1,966.68, which is less than $2,420.08. #'s work @ 6% interest & in this case prospect can settle at list price of $209,900 or lower if want.
List Price $209,900
Interest Rate 8%
Down Payment 20%
Allowed maximum p&i $1,460.92, expenses $959.16
.52/sq.ft. say value should be at $199,000 ($1460.92/7.34x1000)
So in this case with 8% interest your p&i is $1,232.53 which is less than $1,460.92 I said was your maximum amount you shouldn't go over with p&i payment, add this to $959.16 & your safe at $2,191,69, which is less than $2,420.08, but CAUTION your .52/sq.ft. says you shouldn't be paying more than $199,000 for this house!
So conclusion is the 6% & 8% interest rates both have total monthly payments falling below threshold of $2,420.08, but both have different value analysis based on the .52/sq.ft. investment equation. 6% is safe because it says current list price is ok for this buyer & should be @ $244,000, but 8% says for this buyer list price isn't ok & should be @ $199,000. You don't want to over pay for any property, not even a foreclosure based on your interest rate. So play smart & raise your financial smarts!

I will offer a book about my investment analysis equation I use. So check regularly under April's business websites in the online store to see if it's for sale or not. Will offer another helpful article soon.

Wednesday, April 22, 2009

Screening Tenants

Hi Prospects & Friends,

I wanted to make a quick note about screening tenants, if any of you have rental properties you rent for yourself or manage for someone else. I know the screening process can be quite devastating if you don't have the proper techniques or knowledge to find a good tenant. I learned my screening skills from my telemarketing skills I learned back when I was younger working as telemarketer for different companies. I took the technique I learned from those companies and carefully crafted it into my own tenant screening I use today. One of the techniques I learned that worked well with me, are when I run an ad I won't show the prospect or future tenant the property until they've answered some questions I've asked them over the phone. To get to this point, you have to wait for the prospect to call you. Once they call you let them ask you a question about the property first, then answer with a telemarketing question similar with theirs as a response. Example:

Prospect- I saw your ad in the paper & website. Where is it located?

April C. Harris- It's on northside. [So what side of town are you located on, & how long how you lived their?]

This is a good example of some of my techniques for telemarketing prospects or future tenants because I waited for the prospect to say their question first, then I answered question with my question I wanted to know also mixed in with theirs, without distracting or confusing them. My point is I don't want to waste time, if a person isn't qualified based on my criteria for selecting them as a tenant. The telephone techniques work well for me prequalifying a prospect for rental, because I know by time I've shown the property to them they are already what I want in a good tenant, & this crafting technique is promising if you leverage the right questions at the right time with prospect/tenant. I currently manage & own 7 properties, & I've used my techniques to find long term tenants my whole duration of my managing and screening for my rental properties. My techniques are basic questions when you call on my ads for rentals, but I do craft additional questions based on analyzing the conservation I have with you when asking me questions about the rentals available for lease. My tenant screening process also still includes running credit, job history, & rental history, but once again the telephone technique is a must which I do first, because it doesn't make sense to show a prospect or future tenant a property of mine if they were never prequalified from the beginning. I will provide a short book soon about my techniques with examples to better understand. Check with my online store listed under April's websites in this blog regularly to see if screening tenants is available for sale yet. Thanks, I will provide another article soon.

Wednesday, April 15, 2009

Tax Protesting

Hi, Friends & Prospects,

I wanted to take a quick moment to explain how worthy it is to protest your property taxes whether it's your residential or commercial property. I know like me many of you don't have time to go down to your county appraisal district office and do your filing. Well here in Texas you can do it online and wait for results, and only time you have to appear in person would be when your market value figure is rejected you submitted. So first find out if your county appraisal district office will allow you to file your tax protest online. Quick tip is find an educated real estate broker or agent in your area and ask them to give you a CMA (Competitive Market Analysis) which is a summary of homes sold in your subdivision or area in last 6 months. You then can use the CMA value for your tax protest value and have substantial data to back up your tax protesting. Many real estate brokers and agents offer you a CMA for free, and in return all they request is you keep them part of your network. I know with me I offer CMA's for free here in Texas to my clients, and only ask in return for them to keep me part of their real estate business network. I'm part of a real estate broker and agent network and will be happy to refer you to someone in your county or area who will be able to assist you with the CMA and tax protesting, if can't find anyone. So in conclusion, find a good real estate broker or agent and leverage and reciprocate my equation, and both of you will have a solid trustworthy everlasting business relationship. I will soon write a small book about this article, with tips more in detail. Check with my online store regularly to see if I've posted it for sale. The store is listed under April's Websites in this blog. Thanks again and will come back with another helpful article soon.

Monday, April 13, 2009

My First Blog

Hello Everyone,

I've decided to keep you all informed with me and my services by adding a blog to my websites for you all. I will posts regular stuff I feel will be productive to you all. Hope I make many friends and prospects with offering my information.