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Real Estate Brokerage & Property Management Blog

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

Wednesday, December 22, 2010

Rural Vacant Land "Endeavor Analysis"


Hi Prospects & Friends,

I wanted to share a quick endeavor analysis I just came across while looking in the listing database for vacant land for sale. Listed below are current stats available:



Location- Texas
Listing Price- $46,400
List Date- 11/9/2010
DOM- 43 days (as of today)
Total Acres- 29
Land Use- Other
Water/Sewer- None
Road Surface- Dirt
Defects- None
Special conditions- None

So as I came across this vacant land tract in my search perimeters, I noticed immediately:

Total acres- 29
Land use- Other
Price- $46,400
+ factor- neighborhood near area of this 29 acres has new construction homes

So the seller is wanting $1,600/acre ($46,400/29) and to me this is an interesting price, I'm stunned. I know because the property is rural vacant land (not much population) this is equated into the price, which is very impressive to me still. So part of my "Endeavor Analysis" is I will look into more advanced stats with this property not given in the listing database. I want to know if the mineral rights are already retained, see a survey to identify any easements/encroachments/total number of acres recorded, if unrestricted or restricted, limit to subdivide, population, nearby shops/malls/churches and etc. I'm looking into diversifying my real estate and rural vacant land is where I want to endeavor next, because once vacant tracts like this come for sale it doesn't matter if their is no water/sewer or utilities or paved roads, the developer building around or near a rural vacant tract will drive up "demand" and this will eventually cause your land to be in demand, because "built out" will occur and then buyers will come your way and make an offer. My endeavor is to look into this vacant rural tract if it doesn't sell too quickly, because I would love to hold it till the developer "builds out" neighborhood close to this tract and then slowly subdivide the 29 acres when I feel like selling off. Who knows a power plant may decide to want to make an offer, and that would be the icing on my endeavor if happens, because now you got a developer wanting some or all of 29 acres as well as the power plant buyer! I've come to the analytical conclusion after carefully researching vacant land, the further you go out the land becomes cheaper, because the "others" (developers, builders, buyers, farmers, & etc) haven't found it yet, so therefore the "demand" for the price hasn't escalated yet. Trick is to get their before they do, and then enjoy your "demand" of price/acre go up. I'm even curious what are the sales prices of the new homes the builder is developing going for near this tract, because I would want to apply an advanced stat and dissect the new home sales price by subtracting out the cost of improvement (home) from the vacant land tract price, and see what is the cost of value of the vacant land as separate from the home. So I will be also analyzing those builder model sheets once I get my hands on them. Ok have to go, have a "Merry Christmas & Happy New Year" and much 2011+ success to you all!


April

My College + Small Business Equation



Hi Prospects & Friends,

Just yesterday I was thinking wow this semester and year went by quick, and I'm going to have to prepare for next semester, as well as prep for my small business too! So I came up with the idea next semester for January 2011 when I take my classes I will package my "Journal Design- F" along with my "Quote Tote Design- 5" the pictures are above in this post. February-May 2011 I'm not sure what next package I will decide on, since I have a variety to choose from! The journal will work great when I'm jotting down my tasks & quick notes while in class, and my tote will work great when I leave class & head to my small business carrying my daily business stuff, like camera, contracts, batteries, measure tape & etc. So I choose the package set this way because the colors coordinate magically! If your like me & juggle college and business or are even a multi-tasker, head over to my z and c store brands, you can access them on right side of my blog under "April's Business Websites" thanks!



April

Wednesday, November 17, 2010

Apartment Locating- "Project"


Hi Prospects & Friends,

I wanted to share my apartment project I'm currently working on right now that's due by 12/31/2010. Recently I had a prospect call me from one of my apartment flyer's she had received. She told me she wanted me to assist her in locating another apartment for her and her son. I immediately requested her to go ahead and give me the specifications on what she was actually wanting and she said:

1. 2Br/2Ba
2. Gated Community
3. W/D Connections
4. Zoned to her son's high school
5. Try not to go over too much from current rent of $760
6. Close to apartment currently living in

After she told me her specifications I told her I would immediately start work on the apartment project (job) and would get this all done in a timely manner. As I started to work on the apartment project everything was going great until I came across number 4 (zoned to her son's high school). I figure I could just cold call the apartment complexes that came available in my search that fit her specifications, by asking them what high school was zoned to their apartments, but in the end I found that very time consuming after 1 hour of calling. Since I knew the high school her son was attending, I decided to cut out the middlemen "apartment complexes" and went directly to the high school. I googled online the number and called the high school direct. I then said:

"Hi, I'm April with A. Colette Harris Properties, LLC and I'm trying to get some information"

The receptionist then said how can I help you? I told her I have a client that wants her son to continue to attend their high school, and that could she give me a list of zoned apartments? She told me she doesn't handle that information, and that would be the "Registers Office". I was then transferred to the registers office, and told them the samething, and they were very nice and actually sent me a list of all the zoned areas to their high school, it came out to about 50. This list made my "apartment project" go more efficiently, because I went to the school "direct" for their zoned list of apartment complexes, instead of going to the apartment complex and asking them what high school was their complex zoned too? So as of now I'm ahead of my 12/31/10 deadline, and should have this apartment project complete before then, thanks to my ability to rethink how to handle number 4. Once I'm finish and my client moves in, then the apartment complex will pay me for locating her to them. Ok I will soon share another endeavor I face/approach in my small business.

Thanks,

April
PS- I've attached a picture of 1 0f my aprons & 1 of my posters I sell over at the z-store. You can see more of them as well as those by accessing the z-store on right side of my blog.

Tuesday, October 12, 2010

Facing Foreclosure Now What?














Hi Prospects & Friends,


My second book was just published today, and is ready for you all to prosper from it. My book is called "Facing Foreclosure Now What" and is available in e-book as well as hard copy see the links over to right side of my blog. The book explains what to do when you've missed 1+ mortgage payments, and includes 1 case study, and a foreclosure workout checklist. Hope the book offers you all some foundation to follow, and I will continue to deliver you all my knowledge futuristically, thanks much!
*****************
April
Real Estate Broker

Thursday, September 16, 2010

Friendly Real Estate Note


Hi Prospects & Friends,

I just wanted you all to know I finished up the SFR (Short Sale & Foreclosure) class and I've added the SFR designation to my portfolio of real estate skills. The class taught me alot about short sales, reo's and foreclosures and I would like to continue to offer my gained knowledge from this course to any of you who may know someone in need of:

1. Short Sale assistance
2. Foreclosure assistance
3. REO assistance

Please forward them to my websites http://www.har.com/acoletteharrisprpts and http://www.har.com/aharris thanks much!

April
Real Estate broker


P.S. I've attached a picture of some of my posters I sell over at my z store, and if you like them you may see more of them over at the z store. You can access them over at the z store from the right side of my blog at bottom.


Wednesday, July 21, 2010

3 Story Office REO Rare Sale


Hi Prospects & Friends,

I wanted to share a rare moment I came across, recently about this office. First I remember this office when I was a little girl I was about 12 years old. I would always ask my parents why was this house sitting close to Krogers, and my parents told me this was no house and it was a unique office building. I then as a little girl started thinking wow I love it and want to explore it, well I never got the chance and time passed by. As I got older I would occasionally drive by it since my parents lived close to it when I would visit them. I always thought someday I would tour this office and own it myself one day, but I knew it was well worth over $1,000,000 since it sold for that back in 2002 and I would not be able to take on that kind of debt so I moved on and started investing in condos. My parents moved and I haven't been by this office in years. Well recently I was doing a search on Costar and came across this property being sold as a REO sale REO means (real estate owned) foreclosure by the bank. The property sold for less than about $500,000 and sold May 2010 of this year, I was stunned to see this. I had no idea this property would ever be a possible foreclosure, but my only conclusion was 'The Great Recession" caused it and the new buyer is quite lucky because of the office sitting in a main location with demanding real estate growth. This office has always been unique to me and listed below are some characteristics of this unique office:

7,232 square feet
3 Stories
Free- Standing Office Building
A+ Location
Year built- 1984

It's rare to see something like this and all I can say is I remember this property when I was about 12 years old. I'm not sure what the buyer plans on doing with this office, but every once in awhile I still think about running my company A. Colette Harris Properties, LLC out of it and making the 1st floor the reception area and my office, renting the 2nd floor and using the 3rd floor for files and etc for my company. As I look back maybe someday again I will cross paths with this unique office building.


I've attached a copy of my journals I like to use to scribble stuff in when I meet clients or etc. They are for sale over at my C-Store for $12.99 and come in plain or custom with a variety of colors to choose from. You can get them by clicking on right side of this blog under April's business websites, then C-Store.
April

Tuesday, June 1, 2010

Precious 1 Story Foreclosure


Hi Prospects & Friends,

I went by to see this foreclosure on May 16, 2010 and it's already in pending status as of May 20, 2010. I had my note pad with me as I took notes, and saw this house had alot of extras for the price, like wood floors throughout the home, patio with ceiling fans, 3 car detached garage, in gated subdivision, built in study and desk behind master bedroom, guess room, all for $170,000. This home came up in my foreclosure criteria search, so I decided to go and see it. Listed below are my stats from this precious 1 story foreclosure:

Listing Price- $170,000
Location- A+ (facing main drag from gates into subdivision, close to schools, churches,parks, etc.)
Gross Sq.ft.- 2,619
Level- 1 story
Bedrooms- 3
Bathrooms- 3 full and 1 half bath
Garage- 3 detached
Builder- Dr. Horton
Year Built- 2003
Price/Sq.ft (last 6mth comparables to subject)- $77.36
Rental Rate (last 6 mths)- $0.64/sq.ft.

So this home has a market price of really $203,000, and it's listed for $170,000 which means $33,000 is already in instant equity, and it also has a going rental rate of $1,676/mth. I noticed this home needed no major/cosmetic repairs, so my conclusion is foreclosures making their way into the market like this one are rare, and that's why it didn't stay on the market too long. I've been site seeing foreclosures since the recession started and I'm noticing in the beginning I was seeing foreclosures in need of major/cosmetic repairs, now I'm noticing foreclosures coming into the market with no need of major/cosmetic repairs. So my conclusion is these types of foreclosures are possibly from homeowners who may have negotiated something with their lender to leave the property in livable and good condition, and in return the lender will probably give some kind of allowance or incentive for doing such. I call this property a precious 1 story foreclosure, because it's hidden in the market with the rest of the foreclosures, and finding them are jewels once they become noticed.


P.S. I've attached a pic of my note pads I use when I take notes on stuff like this. I sell the note pads over at my Z Store, located on right side of my blog.


April

Tuesday, March 9, 2010

Developing Wealth From "Revitalization Subdivisions"


Hi Prospects & Friends,

I wanted to discuss a subdivision I came across that has the term revitalization occurring in it. First revitalization means old becoming new as well as impacting a new beginning/development for the future. Revitalization subdivisions don't occur everywhere, and when you find them they can add the development of real estate wealth to your portfolio. Listed below are 2 homes in the same subdivision, but 1 is old and 1 is new, as to where the supply and demand has caused this subdivision to do advanced revitalization's. Stats are explained below:


House 1 (grayish house) is pending for $375,000 and is expected to close March 18, 2010
House 2 (brown house) sold for $1,150,000 October 26, 2009
So let me explain the stats below:
House 1 (grayish house)- Gross Sq.ft. 1,142
Year Built- 1943
Lot Size- 6,000

House 2 (brown house)- Gross Sq.ft. 4,100
Year Built 2009 sq.ft.
Lot Size- 6,000 sq.ft.

Lot sale- 5,000 sq.ft. sold November 4, 2009 for $355,000 ($71/sq.ft.)

So to better understand the revitalization going on in this particular subdivision, I can conclude any home with a lot size of at least 5,000 sq.ft. will allow one to develop a brand new home equating to at least $1,150,000. So this means if you have an older home, its the lot the house is sitting on that will gain you the most wealth in this subdivision, because of the revitalization occurring. The demand for the lots in this subdivision for new homes will continue to cause the supply for the older homes to continue to be in demand which will continue to cause significant returns for the owners with the older homes. I was curious and ran this subdivision in the tax records and found 742 owners, I noticed a bigger lot on the tax roll had lot value at $792,884 and the improvement value was only at $4,379 totaling $797,363 for tax year 2009. The owner is actually still homesteading the home per the tax records and was built in 1943. So out of the 742 owners in this subdivision only 264 of these owners have older homes, all the others have newer homes. So yes all the owners sitting on older homes are quite wealthy right now because of the revitalization occurring in this subdivision. I can conclude from the revitalization stats that if I see a home hit the market like House 1 grab it, because I don't think many are realizing the house is listed for $375,000, but the lots are going for $71/sq.ft. So the average person would say why would I pay $375,000 for a home that is built in 1943 and has only 1,142 sq.ft. of space, when they could get a bigger home for same price? Well the trick is reverse all that thinking and realize the lot for this house alone is worth $426,000 without the home on it, and will continue to go up in lot price because of the demand for it for newer homes (revitalization). There are not many subdivisions doing revitalization so finding them is a wealthy jewel, because all you have to do is wait for someone to put an older home on the market that has been fixed up that is less than what the lot values are going for and reap the benefits once you sell. Many of these owners with the older homes in this subdivision don't realize the revitalization occurring, because House 1 has been totally fixed up and is pending for $355,000, this house has a lot currently worth $426,000 since a 6,000 sq.ft. lot recently sold for $71/sq.ft. back in November 2009. I'm watching this subdivision as of now, because of the advanced revitalization occurring rapidly.

Wednesday, January 27, 2010

Apartment Complex- Investment Analysis (10 Units)


Hi Prospects & Friends,

I discovered this property a few days ago as it came up in my search for investment perimeters for an apartment complex I'm looking to buy through a O/F Direct Concept. As of today it's only been on the market for 14 days, so this weekend I will drive by to see the true picture and attributes. Listed below are the investment stats for this property.

Listing Price- $590,000
Total Units- 10
Gross Sq.ft.- 6,240
Price/Sq.ft Last 6mths- $127
Location- Prime and A+
Taxes- $8,908/yr.
Insurance Proposed- $450/mth
Rental Rate Last 6mths- $1.16/sq.ft.
Layout- 10 units each (1Br/1Ba)
Average Unit Sq.ft.- 624
Economic Life- 40 years
Year Built- 1964

Current Landlord is renting 9 units @ $500/mth, & the other 1 unit is @ $425/mth. So the total rent is $4,925 as per the contract rents. After analyzing all this see my investment analysis below:

Current Rent Contracts - $4,925
Taxes- $742
Insurance- $450

($4,925-$742-$450=$3,733/7.34x1000)= $508,583

Market Rents- $7,238
Taxes- $742
Insurance- $450

($7,238-$742-$450=$6,046/7.34x1000)=$823,705
($7,238-$742-$450=$6,046/8.05x1000)=$751,056

So after analyzing the quick investment stats, and because the current seller/landlord said the property needs minor updates and that the rents are below market I would not pay more than $508,583 for this property. My investment stat range of $751,056-$823,705 says this is what this property is worth and would sell for based on similar stat properties in last 6 months. The median upward adjustment is $792,480. Conclusion is stated below:

1. My Buyer/Investment Hat- Says don't pay more than $508,583 for this 10 unit apartment complex

2. My Real Estate Broker Hat- Says I have a jewel because the recession has caused the current seller/landlord to list apartment complex for $94.55/sq.ft which is below what the true properties are really selling for which is $127/sq.ft. So I know based on my investment stat range I'm looking at least a resale between $751,056-$823,705 & factor in the median upward adjustment of $792,480 as the investment stat backup closure. Plus market rents are going for $1.16/sq.ft!

3. My Property Manager Hat- Says leave contract rents as is and when each tenant decides not to renew then rent @ market! "Caveat" don't ever run off a tenant by raising their rent to market when it's time to renew, because the whole idea of my don't pay more than $508,583 was based on contract rents and not market rents, so the investment numbers would fit into the current perimeters! Only raise contract rents to market when the tenants decide not to renew, and remember you have nothing too loose because you factored all the investment stats in the very beginning before the purchase. So once you do start to raise contract rents to market the additional income will be extra, and it will benefit you greatly with reserves for the apartment complex and even yourself!

4. My Seller/Interior Design Hat- Says since the economic life is 40 years and the property is already 46 years old I can conclude the plumbing and electrical are outdated as well as the quality construction of the apartment complex is too. So I know I would have to bring this stuff eventually up to date if required necessary. So not offering the seller $590,000 and offering below $508,583 would justify me to use the saved amount of $81,417 on all this if need too!

5. My Bookkeeper Hat- Says leverage the depreciation factor for the maxium of 33 years allowed as much as can. In my case I would fix up and then rent for about 5-10 years, then re-sale around the 7th or 10th year.


My point is I really like this 10 unit apartment complex, but if the seller can't accept less than $508,583 for this building then I will move on to the next real estate endeavor I find until someone agrees to what I want. So far I've bought 7 properties using my investment stats, so I know their are people out their who will honor what I want. The catch is I'm very ambitious/analytical and used that to my own advantage to gain the reasoning's to convince others to say yes to my real estate endeavors!




April

Monday, January 18, 2010

Home Shopping Totes


Hi Prospects & Friends,


I added to my Z Store some Home Shopping Bags I love using when I:




1. Make Groceries
2. Run Arrands
3. Head to Home Depot or Lowes when I'm with my contractor shopping for rental supplies for my rental properties.
4. Etc.


My shopping bags come in different designs and are available over at my Z Store on the right side of this blog. So enjoy & shop!


April