What Not To Ask On a Job Interview

Hi Prospects & Friends,

I wanted to share a horrible employer interview experience I went though as an employer a few days ago, and recommend from my own experience not to try these tactics on a "Job Interview" with any employer who is younger than you. First I think this actually falls under age discrimination, but because it's not really focused on the "Employer" much and more on the "Employee", I honestly think that's why it's not really a big issue just yet to create a world wide category for it. So this is how my interview went as an employer. I recently had a female applicant come to my firm to want to possibly work for me. I was dressed professional on the interview, and was ready to let her in my office. The applicant who I will not reveal for protection purposes came in my office and immediately glanced around at everything and them "Zoomed" in on me. I requested her to sit down in a seat I provided her, and before I could even start the interview she ask me:

• How old are you?
• How are you able to afford a place like this for rent"? 
• Where are you getting the money to pay this rent?
• How much is this rent here and can you even afford this place?
• Who is A. Colette Harris Properties, LLC & Who is April C. Harris are they the same person?
• Who Are You?
• Are you even licensed?

To stop this interview from continuing to get out of hand, I immediately stepped in and said, "Ms." these questions have nothing to do with the interview, and that the interview is about the job she was applying for. I then explained to her I was the company and the owner, and that my company just didn't have my full name spelled in it, I then informed her I've been in my same office since 2011, and that how I pay my bills has nothing to do with her. This whole interview was bizarre, and I honestly didn't know how to engage with it anymore.  So I cut it short, and said what was required for the job, and told her to go and think on it. I realized the applicant was possibly asking me these questions because she was a "Baby Boomer" since she revealed she was retiring in a few months, and wanted to do real estate as a supplement. I did inform her that if she was uncomfortable with me being a younger boss & etc, then she had every right to go and apply at another firm. So my point is if you happen to have an employer who is much younger than you, that is advertising for a job you need, understand they didn't get where they're at from blowing off their money, or having a lack of education. It is very inappropriate to ask an "Employer" their age, if they are younger than you and if you're just uncomfortable with it, and won't indeed accept it, then don't proceed with the interview just to ask even more inappropriate questions. The whole bizarre thing about this interview was she didn't even know I was the company and the owner interviewing her, because she right away decided to attack me with inappropriate questions, and didn't let me reveal too her who I was. 

Never underestimate who is interviewing you & that it may just be the "Owner of the Company"

When I look at Reese Witherspoon & Jack Dorsey they are indeed my age, and I wonder if they ever get "Age Discrimination" with applicants who are older than them. Well either way I wasn't upset and learned alot from this interview. Maybe in the future the colleges will create a class in human resources, that explains how to approach a younger boss on a interview if you ever indeed have to face it someday.

Revitalization Metrics Applied To "Vacant Land Analysis"

Hi Prospects & Friends,

When we tend to look at "Revitalization" we only focus it on the metrics of homes, but one can apply "Revitalization" to vacant land also. Recently I bought 2 lots that were heavenly wooded, and now they have been pulled into the neighborhoods "Revitalization" metrics which have caused these lots too sky rocket in their values from what I paid for them, because of the developers building around it. If you carefully look at the picture you will see the wooded land, but you will also see across the street the land has been cleared for new development, on both sides of the wooded land homes are being built. Their are other owners in the wooded land also since these are individual parcels too that will reap these benefits also. So you don't get lost with my explaining in this post here are some clarifications:

• Individual Parcels- Are lots platted on the plat map as identifiers of the owners
• Plat Map- A map your local county assessor has identifying the neighborhoods boundaries and owners. You can trigger this online for free on their site since they attach it to your property
• Developers- Are companies who clear land to have it ready to be prepared for building of new construction
• Vacant Land- Is land that doesn't have a structure on it, but it does include trees
• Revitalization- Is where someone like a builder or developer come in to clear some vacant land, in an already older established neighborhood to make it more better quality and new again. They either tear down the older homes that are for sale, or clear land that is still available to push the older homes to skyrocket in value so these owners will sell. This method can become very tricky if the neighborhood doesn't already justify a good location or good rated schools. So because developers and builders already know this metric, they from the start tend to pick neighborhoods that will deliver these results instantly. 
• Builders- They build the structure on the land whether its a home or commercial property
• Built Out- No more land available to use for building, and if this occurs, and you just happen to have some wooded land in this neighborhood be prepared for developers and builders to offer you money for your wooded land since it's the only thing left that they have been "pushed to build on". If this does indeed occur, you don't have too sell your wooded land to these developers or builders. You can like me continue to watch it grow, and keep it for retirement and put a house on it yourself eventually to live in or just to rent out. 

Once the developments start to occur then any wooded land surrounding these new developments will go up in their value too. So to understand how to start with trying to benefit from wooded land as an investment ask these questions to yourself:

• Is the location near major roads or highways that are easy to get to like gas stations, stores, churches, schools, recreation, and employment?
• Is it near good rated schools or very good schools?
• Are the homes in their older than 70+ years old that will indeed need to be torn down and rebuilt eventually because of their age?

These are just some few questions I shared with you I apply, but every person is different and may have a better way in applying other metrics that work better for them. 

So in conclusion I'm planning to build on this land in the future once all the homes around it have been built to new from old and the neighborhood will have been "Built Out" again. I only decided to venture into wooded land recently, because with the way the market has been going, I wanted an investment that didn't really require much of my attention but still yield me good returns without putting in much effort, since I engage in other real estate activities. What I mean by needing little of my attention means this wooded land:

• Is wooded and I don't have to worry about cutting the grass which makes an expense. I only pay annual taxes, and their not much since I bought this land in my "investment parameter budget metrics"
• I don't have to check on it on-going because of it being rented. The only time I check on it is to see if more new development has occurred around it, then I run my numbers and use my i=v/r equations coupled with the gross rent multiplier. I go out to see the wooded land about once a month, and sometimes I may go about every 3 months just depends on what activity I find online that has triggered me to need to view it asap. Activity means in this case, if apparently an agent has listed a "wooded" lot for sale in my neighborhood, or the agent has listed a cleared lot saying "being prepared for newly built home", or the agent saying this "older home is ready for tear down to be newly built into a new home" All this can be worded different, but key is staying on it like as if it was a "rental investment", because if your careful and apply smart metrics you can indeed make a good future retirement out of just buying "wooded land" and later selling or rebuilding on it and renting it with its new home or just moving in it to live after its price has skyrocketed because of the "Revitalization". 

Remember key is to just be paying the annual taxes and nothing else on your wooded land. So if your wooded land happens to have more than annual taxes to retain it as an investment, then it would be wise to pass on it, I know I would since that is one of the alerts I have on my "Investment Parameter Budget" analysis. Your list can be whatever makes your budgeting for the land work, but their are some key metrics that one should apply when necessary to understand and this post touches up on some of them to get you started with your analyzations. I also apply no flood zone metric on my lots, which affects your value dramatically if indeed it has to be sold & its in a flood zone. So don't engage in buying wooded land if you fully don't understand how too, because owning wooded land you can't sell is even worse if you couple it will expenses you could of avoided by just carefully doing your research on it or just hiring an expert in this area of real estate. 

Merry Christmas & Happy New Year Everyone!

Real Estate Investing Equations

Hi Prospects & Friends,

Whether you are renting out your own place to the public or thinking about buying a rental property, you should take into consideration the investment risks of the property against the income you're receiving. One risk I use is the equation I=V/R, what this equation tells me is the cap rate, the income, and the value of the property, once I have the NOI or even the total annual income of the property after expenses which is NOI (net operating income) I can conclude if I want to buy or not. So to quickly sum all this up, the higher the cap rate the higher the risk of the property meaning what you're up against when trying to collect rent or sale it. The lower the cap rate the better chances the income will be produced on-going for the property which will generate a good value. Here is an example of this equation:

Location= A+

NOI= $15,000

Value= $125,000

So my cap rate is 12%, for me even though this property looks enticing because of the price & location I would pass on it, because later on that high cap rate will affect you too keep it stable with income, because of that high cap rate of 12%. Most non risky investors will pass on this property too, because of the high cap rate, and now you got a rental you can't sell coupled with a high cap rate. Here is another scenario:

Location C-

NOI= $15,000

Rate 6%

So in this case my value is $250,000, so I would pass on this property too, because yes the cap rate looks very good since its very low, but I would pass on the income because it doesn't make since to take home $1,250 per month as net pay on a property that is going to cost me $250,000 to buy it.

Another equation I like to use if I don't have the numbers for the I=V/R is I will use the GRM equation. This means gross rent multiplier, and to use this you have to have all the expenses coupled with the most recent comparable rent sale leased in the area of the property. Example would be:

Most recent comparable rent was: $1,050

Total Expenses: $650

Interest Rates are going for 6%-9% for your typical investment property

List prices generating median: $115,000

Sold Prices Median: $95,000

What this equation is telling me if I apply The GRM with the I=V/R this property is generating a cap rate between 4% & 5% and this is a really good investment to have long-term. So it looks like this:

GRM generated the numbers for the I=V/R so $4,800/$95,000= 5% cap rate. So understand how to use these 2 equations when using metrics to analyze rental properties, and you will be a "smart wise investor" for years to come. 

Merry Christy & Happy New Year To Everyone!

 

Hi Prospects & Friends,

I wanted to quickly share this quick vacant land tip for those of you out their looking to buy land.  Realize before you make the purchase you know if the land is restricted or unrestricted, as well as what expenses you will incur if just going to hold the land. Restricted land would be your deed restrictions restrict you from putting any kind of commercial building on your property other than a residential house. Unrestricted land would be you have no deed restrictions, and you can build a home on the land as well as a office/warehouse or you could turn the home into an office, and work out of it with your business. So understand this from the very beginning, and when it's time to look for your vacant land the process will go smoothly, and you will be on your way to owning your dream land.

👀 P.S. you're welcome to shop at my online real estate store at https://tinyurl.com/5ehejb3e you will find some cool stuff I created and will enjoy using.

Apartment Rental Housing Assistance Tip

 

Hi Prospects & Friends,

I wanted to quickly share some advice for those of you out their receiving apartment rental assistance. Recently I've had a surge in clients receiving apartment housing rental assistance, and needing apartment locating services, and what I'd like to disclose is you're given some options with the areas you're approved for and you have to pick within those limited areas, as well as you're given a rent max amount you can't go over. The housing assistance program you're approved for you're receiving the apartment rent assistance from has to go by the guidelines of only allowing you to move to apartments that will accept your rental assistance. So understand this from the very beginning, and when it's time to look for your apartment the process will go smoothly, and you will be in the apartment you like.

👀 P.S. you're welcome to order my popular dream home tote bag if want too @ https://tinyurl.com/548hmcup and I also have different colors available @ https://tinyurl.com/5436ebcu thanks and have a great day!

Friendly Real Estate Reminder

 Hi Prospects & Friends,

Just wanted to make a friendly reminder of the real estate services I offer. If you know anyone needing assistance with real estate or you need any of my services let me know, and I will gladly assist you. I've attached a picture in this post saying what real estate assistance I can provide. I want you all to have a "Happy Forth of July"

👀 P.S. you're also welcome to order one of my popular real estate shopping totes I sell @ https://tinyurl.com/49dz7dad you can use it for carrying home or work tasks. I have other color options for sale too. Check out my online real estate store at https://tinyurl.com/w67kdfk

April

Moving Out of Your Apartment

 

Hi Prospects & Friends,

I wanted to touch up on understanding how important it is in leaving your apartment in a clean condition, if not going renew. When you do your move-in walk-thru with the property manager/landlord they show you the property in its move-in clean condition, and then ask you to fill out the "Inventory & Condition" form. You're responsible for making any notes on this form about the apartment units current condition you will be leasing, and getting it back to them immediately signed and dated. If you decide to not renew, it would be a wise move to go ahead and restore you're apartment unit back in it's condition it was in when you moved in it which was clean. Doing this will prevent you from being held liable from any damages that the property manager/landlord may notice that weren't listed when you filled out the form when moved-in. Understand this real estate tip, and it will continue to help you along the many journey's you may have when deciding to rent an apartment. So remember your check list when moving out as:

• Remember to understand what you wrote on the "Inventory & Condition" form when moved-in will be used against you when move out by the property manager/landlord, so fill out wisely, since they will be comparing their move out notes against your move in notes.
• Make sure to clean apartment & restore back to it's original form.
• Return the keys, and head to your next apartment if that's what you've chosen to rent again.

👀 P.S. you're also welcome to order some of my popular smart renter tote bags if want too @ https://tinyurl.com/m6bpyn62 I have 3 colors in red, blue, & green. 

Real Estate Tip

Hi Prospects & Friends,

The real estate tip I posted in this blog is very valuable, and everyone can benefit from it globally. So if your in process of looking buying residential or commercial, apply this real estate tip I offer, as well as pass it around when need be to your family & friends. I have this tip also posted in my company website, if want to view it their. 

👀 P.S. you're also welcome to order some of my popular real estate note sheets to have on hand to write notes if want too @ https://tinyurl.com/3b3cee58 for future use.

April

Apartment Real Estate Tip

Hi Prospects & Friends,

The apartment real estate tip I posted in this blog is very valuable, and everyone can benefit from it globally. So if your in process of looking for an apartment, apply this apartment real estate tip I offer, as well as pass it around when need be to your family & friends. I have this tip also posted in my company website, if want to view it their. 

👀 P.S. you're also welcome to order some of my popular real estate note sheets to have on hand to write notes if want too @ https://tinyurl.com/3b3cee58 for future use.

Thanks

April

Second Chance Apartments

                                                                                                     

Hi Prospects & Friends,

Knowing what second chance apartments are, and where to find them will be what I discuss about in this post. First second chance apartments are apartment complexes that offer you a second chance to lease one of their apartments, by hearing your negative case. Every apartment complex is different and has different rules towards acceptance, but key is finding an apartment locator that has the experience in finding them for you. A negative case is something that may have caused your credit to be affected in a bad way or your background in a bad way, and it shows up in the public records, or on your credit report. Hardships occur, and finding the right way to explain them to the apartment complex will get you a better chance at renting again if the apartment complex is a second chance apartment complex. Once the second chance apartment complex gives you the opportunity to rent again, use them as your reference once you've stayed their long enough to build positive rental history, and then by then you will be able to go back to renting a apartment from anyone. So if you fall in the category of being affected in a negative way with your credit or background, it would be smart to lease from a second chance apartment complex. An example would be you're applying to different apartment complexes you like, but their all saying no. This example right here would possibly mean something is on your credit report or background in a negative way, and you need to find an apartment locator to help you seek out possibly second chance apartment complexes. The apartment complexes will notify you of why your application was rejected if you don't know why, but key is not to let it get to this point, and know beforehand what is going on with your credit or background so you don't waste money on application fees, and your credit being ran, because each time you fill out an application at a apartment complex your credit is ran, and it stays on your credit report as a hard inquiry for 2 years, which does also reduce your credit score preventing you from anymore possible opportunities of getting new credit. So follow my checklist and you should be ok with moving forward with your apartment. 

1. 1. Know what's on your credit and background before you contact anyone, by viewing your credit reports from TransUnion, Experian or Equifax. Alot of the banks offer free credit snaps and credit score if you have bank accounts with them, this isn't a full blown credit report, but it does allow you to get an idea on what's on their. For example Wells Fargo offers me a snap shot of my credit score, where Capital One, American Express & Discover offer me summaries of my credit report, along with free alerts and credit score. I use them all and its free, so your preference is up to you, but you need to know what's going on beforehand is my point from however you get the information.
2. 2. Hire an apartment locator who can locate you second chance apartments
3. 3. Make sure the apartment locator also has ability to locate second chance apartments who maybe offering specials for move-ins too.
4. 4. Once you find a second chance apartment you like give your case to the apartment locator, and allow them to discuss your situation with the complex and analyze their rules against your case, and wait patiently. if they say no key is finding a apartment locator that will find you a second chance apartment complex that will say yes, and this will be determined by the apartment locators experience, apartment database, and knowing what to ask the apartment complexes in first place about these kind of cases.

Happy Memorial Day everyone, and if you just happen to be a Texas resident needing apartment locating services, contact me, I will assist you. Everyone else I hope these posts will still benefit you in many different ways.

Thanks

 April

Real Estate Posts Update

Hi everyone! 

I'm back and here to deliver again posts about real estate, and my experiences as a small business. Last few years I was working on my bachelor's degree, and juggling my small business and took a leave of absence. Through the years I grew as a small business, as well as a real estate broker with more knowledge and experience. I appreciate all of you who were engaged with my prior posts, and hope you come back to join me for many more new ones. My next upcoming post will talk about "Second Chance Apartments" and what they are, and how to find them. So stay tuned. 

April

New Hampshire Relocation

Hi Prospects & Global Fans!

I just wanted to share a quick story about my first relocation client, and what I gained from the experience. Recently I was advertising my rental property and a prospect contacted me on the rental listing. I did my normal prospect phone screening, and as the conversation developed the prospects informed me they were moving from New Hampshire, because the husband got relocated to Texas for a job, and needed a place asap, and saw my rental property online which was 5 minutes from his job (remember key to real estate is Location/Location/Location), and they wanted to see it. So I showed them the property, and they both liked it, and wanted to immediately move in the place. I told them great, and would get them the TAR lease asap. So as I was typing the lease in ZipForms I discovered wow this is my first out of state prospect that will sign a lease with me, that will now be my tenant, and they will need to know everything about Texas! All in all the tenant screening I had to do to qualify them was the same except I had to contact "New Hampshire" contacts, and as I was actually doing all that I was gaining "Relocation Experience", and just realized it after the light bulb went off in my head. My new tenants from "New Hampshire" did inform me after their lease is up they may want to purchase a home, and will look forward for me to assist them, and I told them thank you for the continued futuristic business relationship. So fans the moral is, you never know what may come your way when you run into a business endeaver, because what ever the outcome is, if you do it right the first time, the continued success will continue there after. As for me I was able to gain:

1. Relocation Experience
2. New Tenants
3. Futuristic Home Buyers

ok will give another story soon, bye,

April

Apartment Lead "Jewel"

Hi Prospects & Friends,

About a few months ago I started typing up apartment addresses into my Microsoft Works database, so I would be able to mail to these prospects with my personalized postcards I created in Microsoft Publisher. I had some leads call me from my postcards I had created I sent by mail, and ended up getting a "Solid Lead". The "Solid Lead" was someone who had turned in her apartment notice and was looking for another apartment. I assisted her and found her a cheaper apartment, and she is moving in 8/1/2011. The apartment complex is paying me 100% commission and I will get $759.00 for referring her to them. So I was thinking after analyzing all this I sent out 90 apartment postcards and got some leads, and this 1 ended up being a "Solid Lead" which then turned into a forever "Client" for the future for me. I told my apartment lead now a client, congratulations on your new apartment, and if you ever decide to move again please contact me. I also told her she will definitely receive contact from me yearly, because she is now a "Client" of mine, and that I really appreciate her for hiring me to locate her another place. I call this lead a "Apartment Lead-"Jewel", because I sent out 90 apartment postcards by mail, and did get some calls, but this one was a "Solid Lead" because she had turned in her "Apartment Notice", and had to find another apartment quite "Quickly". After seeing the results from my first batch of apartment postcards I sent out, I'm now sending out 100/mth, it's only costing me $29/mth in stamps, and fits into my monthly marketing budget. So as I look back at all this all the typing addresses late at night I did (I now have 2,700 apartment addresses I've typed), and running to office depot to get avery labels on sale has paid off. As I'm sending out the 100/mth apartment postcards, I'm now coming up with another idea to add to it. I will market 100 postcards I will create in Microsoft Publisher to an elite subdivision I found that's doing quite well in this "Great Recession", if I get a lead out of doing this subdivision like I did with the apartment marketing, I will be "stunned", because the 100 homes I will market start at $500,000+ and generating a prospect in this category will at least earn me $15,000+ in a commission check. My goal for my small business is to have a great database of forever "Clients", and I know to get this I have to market, market, market, and keep doing it "forever". Ok have to go, and remember hard work will always and forever pay off in "The End".

April

Home Converted To Commercial Office “Non Conforming” Analysis

Hi Prospects & Friends,

 

I wanted to share a real estate endeavor that I'm in the process of doing in the future, and it all started off with me and a "Leasing Agent", so I will discuss my idea. Ok a few days ago I was analyzing office buildings for lease, because I was thinking about locating my office to a high "Traffic" location surrounded by prime buildings. So I decided to search my area with lease rates less than $14/sq.ft./year, and I came across 2 properties that ended up fitting my criteria. I contacted the leasing agent who was advertising the office space, and mentioned to her I was a licensed real estate broker who would be representing myself in the lease contract, if I decided to sign the lease. So she met me on Wednesday (5/4/2011) and showed me the suite I really liked. I new I liked the location because the office building was facing a high "Traffic" street, and sits right across the street from Home Depot, as well is 5 minutes from a subdivision where the homes start at $1M+. So I told her I "Love It", and could I sign a 3 year lease, she said yes, but asked me don't you want to think about this some more? I told her no not really, but she insisted on showing me another building with office suites right across the street that were more "Luxury & Exquisite", so I told her fine, and met her at the other building. When we entered the building it looked "ghostly" because there was no one walking around, and I told her so where is everyone? She mentioned to me the building was bought out of "Foreclosure" and the owner is knocking out walls and creating individual "Executive Suites", and leasing them out to "Small Business Owners" who are just starting off, and don't have employees yet, and who are growing like yourself. So I told her "How Interesting", and how does all this work, she said each tenant will get an "Executive Suite" which is a 1 room office, and then share the conference room, the kitchen, the receptionist area, and the waiting area to sit their clients. So I looked around the office, and decided all the executive stuff wasn't for me, and told her thanks for showing me this building, because you just gave me an even "better idea" to pursue an office. I told her I wasn't interested in the other building either I loved, and thanks for all the help.

***I know that after the tour the leasing agent gave me with the "Executive Suites" it was meant for me to see this building because it gave me and idea to add to my other idea I had already had in mine about 3 years ago****

Ok I really want a "Multi-Story Office" building, because I've always wanted to lease out office space, but these buildings are very costly and because I want a prime location, these buildings can start at $1M+, so since I don't have that kind of money, I've always just put this idea to the side till the leasing agent gave me an idea. I've come across to situations that have caught my attention:

1. Homeowners buying homes in unrestricted areas, and deciding to build their businesses on the same lot.

2. Builders coming in areas where the subdivisions are not deed restricted and building near these homes subdivisions that are deed restricted, and causing a "Build Out" to occur, and "Revitalization" to develop at the same time, this is very challenging and complex to understand, but this is very "Rewarding" if you spot this trend and act on it correct. I will explain how this occurs now so see in detail below:

I came across this home that was built as a home but converted to a commercial office it has:

Gross Sqft- 7,952

Lot Size- 36,758

Stories- 3

Parking Spaces- 33

Office Suites- 11

Breakrooms- 2

Bathrooms- 5

Conference Room- 1

This subdivision where this home is located was an "Unrestricted" subdivision, but because the builder "Built Out" his subdivision, and caused the buyers to want more from him and this subdivision sits down the street, and has older homes, the "Revitalization" has developed and the demand for the lots where this home is located are high, as well as the subdivision. This has caused some of the owners in this subdivision to sell their homes, because of the builder building the $1M+ homes on 1 acre lots down the street, the market value of the lots sitting in this subdivision has gone up, due to buyers wanting newer homes, and willing to pay a premium to tare down these older homes, to get these lots "Revitalization". Therefore this has allowed the builder to proceed with slowly turning this "Unrestricted" subdivision into a "Deed Restricted" subdivision. Here is where it gets tricky with this home, and so far each new owner has left it in it's "Non-Conforming" use. The original owner bought this home in an unrestricted subdivision, and decided 2 decades ago to convert it from a home and change it to a commercial office, nothing was violated on the owners part because, there were no deed restrictions at the time. Now that the builder has slowly built newer homes on some of these lots, and changed to a "Deed Restricted" subdivision, all the older homes that are not being used as "Residential" are categorized as "Non-Conforming" use, which means this home and any other home located in this subdivision that were converted to a commercial office has to stay that way because it isn't conforming with the new deed restricted usage, which is residential only. So if the owner decides to sell this building, and the new owner converts it back to a home or tears it down and builds a new home the deed restrictions come in play and this home will never be able to be a commercial office ever again, as well as no one will be able to build a commercial office on this lot, the new home will strictly be labeled as residential with conforming use. So all older homes in this subdivision that have been converted to strictly commercial are "Grandfathered" till someone changes the usage back to residential, which then will destroy the ability to convert back to a commercial office permanently. So here is where my idea comes into play:

I plan to monitor this subdivision, and any others I locate like this, and if I find a home that has been converted to strictly commercial usage like this one, then I will:

1. Keep it in it's "Non Conforming" use which would be commercial office.

2. Reap the benefits of the builders creating a "Build Out" and causing "Revitalization" to develop at the same time (you have to know the area is in demand from the beginning to be able to spot this very quickly).

3. Take the leasing agent's idea of "Executive Suites" and apply it. If I had this building I would rent the 11 rooms that were turned into office suites and rent them to businesses, and let them share the conference room, bathrooms, and breakrooms.

4. Since the lots are in demand in this subdivision, and I know these lots are on 1 acre, and the builder is splitting the lots into .5 acres I would wait till the price climbed high enough to where I could earn enough money to get the "Multi-Story Office" I really want.

5. Then finally after I'm ready to sell, bring the tenants with me to the new "Multi-Story Office", from the sale of this "Grandfathered Non-Conforming Home Converted To Commercial Office", that was a hidden "Jewel".

So after I look back at the trip with the leasing agent I had on Wednesday 5/4/2011, it's good I didn't sign that 3 year lease, because for some reason I sense my "Destiny" wants me to go this more challenging route I just explained in this article. Ok have to go, will write something else soon, bye!

April

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

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

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.

April

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.

April

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.

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