Investors Harvest Your Crop In Texas

Investors, now is the time to pick up properties and hold on to them. This is the perfect time for value investors. As some of the previous blogs mentioned this is the time to pick up properties. Although the general population is in panic mode and most of the country is seeing property values decline, most of Texas is holding steady and in a lot of areas there is still appreciation. What most investors and even people looking to find a good deal need to know is that the population here in the DFW metroplex is supposed to nearly double in the next 15 to 20 years. What does that mean for you… We are going to need a lot more housing than we have now. Some of the fastest growing counties in the country are right here in DFW’s backyard.

The prices in a lot of places have put home ownership out of reach for a lot of people. Texas including DFW is one of the few places where you can find a good job and afford a starter home. For investors this means this is one of the few areas in the country where you can get cash flow and still get decent appreciation on your property.

Because of all the mortgage companies tightening guidelines, owner financing and lease options are coming back. This is more of a reason for investors to pick up properties. I constantly get weekly calls on the few ads I have for owner financing. I have moved 3 of my personal properties this year using this type of financing. I’m currently looking to purchase more properties with my partners and sell them this way. I actively seek out these buyers and there is a surplus. I don’t have the time or resources to act on every good deal I come across but i can pass them on to other investors.

I will offer for any investor looking to purchase properties at discounts, even new builds using my services I will get your place rented or sold via owner financing for you. I will help you buy properties at a discount, cash flow and if you would like I can put you in contact with a management company to manage your investments. If you are interested in rehabs I have the contractors ready for you to do the work. You let me know and I’ll find it for you.

JOIN THE INVESTOR LIST

Visit www.TheHouseHub.com

Eric Love
VIP Realty
Your DFW Investment Source

P.S. Make sure to subscribe to this blog to see what else is on my mind...

Large Cashflow in Dallas

I have a cash flow deal available for an investor. The renter is a company that offers live in services for elderly people. They have a care taker that lives with 4 or 5 patients with guaranteed rent of $1700 to $1800 for 2 to 4 years. Payments are made from Medicare and medicade. They are in need of a house. I found 3 to 4 houses in the area they are looking, ranging from $129,000 to $149,000. Do the math... After 5% down a $123,500 loan at 7.5% you are looking at $800 to $1000 per month cash flow. All I Need Is the Investor.

Here is the breakdown of the Numbers
$130,000 Purchase price
$6,500 Down payment
$123,500 Loan Amount
$863 per month at 7.5%

$1800 per month for 3 to 5 years

$957 Cash Flow per month without taxes and insurance.

Based on putting 5% down that is 100% return on your money in a year after subtracting taxes.

If you put more money down that's more cash on cash return...



I will offer for any investor looking to purchase properties at discounts, even new builds using my services I will get your place rented or sold via owner financing for you. I will help you buy properties at a discount, cash flow and if you would like I can put you in contact with a management company to manage your investments.

If you are interested in rehabs I have the contractors ready for you to do the work. You let me know and i'll find it for you.

JOIN THE INVESTOR LIST

Visit www.TheHouseHub.com

Eric Love
VIP Realty
Your DFW Investment Source

P.S. Make sure to subscribe to this blog to see what else is on my mind...

Oak Cliff Part 1

Ok, I have a confession to make. I have an infatuation with oak cliff. The architecture , the style and the lifestyle of this area make this area a hot area. It is an upcoming area that draws the yuppie and alternate lifestyle crowd.

If anybody pays attention to real estate trends or investing trends or just has plain common sense this is a good thing. It's a great thing...

Many people have said this area is coming back but a lot of people don't know about it. I always said this area was going to come back as much as 5 years ago when i discovered it for myself.

I'm not a dallas native but I have learned most of the surrounding areas from driving around the past 10 years. One thing I can say about this area is that it's close to downtown which should be a big indicator of a turn around.

Most people know that the new suburbia is near downtown. It's a national trend that's been happening everywhere. It's alive and strong in the dallas and fort worth metroplexes. It's even happening in the smaller suburbs that surround the major cities. Look at downtown plano, grapevine, plano, frisco, flower mound, denton, mckinney and many more...

Those downtowns are actually having good growth with renewed interests towards mixed used projects to make these areas more lively.

Oak cliff currently has a lot of investment being poured into the area. There are several commercial projects underway, some that have been complete and many that have been planned.

But what you need to realize... Is that there is lots of room for the individual investor to make money in this area.

This area use to be the nicer part of dallas way back then...

It may have been over 50 years ago but it was one of the nicer parts. Over time they've taken mansions and turned them into 4 plexes, 8 plexes and duplexes and investors are coming back turning them into nice single family homes or super nice duplexes and 4 plexes. This area is on the rise. Take notice and look around.

You can't miss it!!!

Let's take a look at some of the developments in this area:

www.KesslerWodds.com - This is a very unique development that adds to the uniquenous of Oak Cliff. It places the ultra modern design in the middle of the classic style of oak cliff. These home range from $700,000 to over $2 Million.
www.LakeCliffTower.com - This is great development at the corner of zang and colorado. This used to be a hotel that was constructed back in the 1930's and has been abandon for years. It was recently converted into condominiums that sell in the $200k to $300k range.

David Weekly Homes built town homes at the corner of bishop and Colorado.

Bishop Arts plaza - Mixed used develop at the corner of Bishop and Colorado across from methodist hostpital

Check out the bishop arts district website which is different from the bishop arts plaza
www.BishopArtsDistrict

These are just a sampling of some of the projects underway or on the rise.

JOIN THE INVESTOR LIST

Visit www.TheHouseHub.com

Eric Love
VIP Realty
Your DFW Investment Source

P.S. Make sure to subscribe to this blog to see what else is on my mind...

Pre-Construction is a Great way to Make Great Money

If you have the credit score and the assets to build a $500,000 house or more you can be put in a position to make a lot of money without doing anything.

You can become an armchair investor. What do I mean by this?

Think about this... You contract with a national or regional known builder to build in an up and coming neighborhood or established neighborhood
- You start work on a 3000 to 4000 sqft house.
- You have 6 months to market this property without a payment
- The Realtor that found you the deal (my team). Markets the property for you.
- Lets say it takes 8 months to find a buyer. So you start making payments on month 7 because after you close your loan on the back end you have to wait 30 days. Now you've only made 1 payment.
- But you can get draw money out during the construction process. Now you really don't have to worry about the payment
- The numbers...
- Purchase pre construction is $330,000 after closing costs and realtor fees
- Appraisal and List price $485,000
- Sale Price $470,000
- Realtor Commissions 4 to 5% of sale price. 1% to listing agent and 4% to buyers agent to bring in buyers. 5% - $23, 500
- Actual Sale Price $446,500


What is your profit...... $106,5000 in less than a year!!!!


What did you do?

Did you market the property?

Did you build the house?

Did you show the house?

Did you have to worry about cutting the grass or upkeep of the house?

This is a great way to make over $100,000 in 1 year just for having the ability to get a loan.

Where can you do that?

In some cases there will be no out of pocket costs for you and in some cases you will have to put money down.

I work with small and large builders across the metroplex to find these oppurtunities. Texas is one of the fastest growing markets in the United states.

Our team will be marketing your property the second you sign the loan documents. Marketing is the key to moving these houses

You can join my investor list at www.TheHouseHub.com

Our team is serious about making our investors money. We like repeat Customers!!!

Eric Love
Investor/Agent
VIP Realty
AMQ Real Estate - My investment company

North Dallas property with equity

Here is the first of many deals to be posted.

I cannot reveal the address because i am not the listing agent on this property. It was brought to me by a referral.

Let's just say I know the seller will take $20,000 less than the current list price.

It's running at about 80% of fair market value. This would be a good rental property. It's a strong rental market and in a very good location to get rented quickly.

I'll find an owner financed buyer or renter if you decide to buy this property. Let's talk strategy.
I also have the ability to get you in 100% financing even if you don't have a perfect credit score.

Visit www.TheHouseHub.com to get more information

Description of house:
HUGE BACKYARD! This home has original hard wood floors, and recently replaced laminate floors in the kitchen and bathroom. Ceiling fans in all 3 bedrooms. The lovely bay window in the living room adds a special touch. AC replaced in 2006, Heat in 2004. There is a nicely landscaped backyard with an above ground pool, spacious storage building and children's playhouse. The garage has an attached workshop with electric and air conditioning.

It does need a little updating but overall it's rentable in it's current condtion.

You could pick this house up for $95,000. It could possibly rent for $1100/month.

visitwww.TheHouseHub.com and sign up on the investor list. I'll send more pictures and information on the property.

Eric Love
Investor/ RE Agent

Understanding the current mortgage crisis

I was going to write a post on this with the latest news that hit about American Home Mortgage filing for bankruptcy. Instead I recieved a newsletter today from a Loan Officer by the name of Scott Drescher. His website is www.drescherteam.com


The newsletter is from a 3rd party provider but its only fair to mention Scott because it came from his Newsletter.

So here is the review below. I think it helps people understand why the company had to file for bankruptcy and why some of the other lenders are tightening their belts on loans.

Anyone watching or reading the financial news over the last few days and weeks has seen a lot of angst and consternation over the state of the mortgage industry. In fact, one of the larger lenders in the US, American Home Mortgage, was forced to shut down operations last week. But why? What is happening, and most importantly, what does all this mean to you? Let's unpack the definitions and details, so that you really understand the truth behind the headlines.

Over the past several years, many loans were made to homeowners with somewhat non-traditional or "non-conforming" situations, be it a poor credit history, inability to document income, or any number of factors that do not fit within the traditional "box" for home loans. These loans are often called "Sub-Prime", or "Alt-A", meaning that they were somewhat riskier in nature than A credit, prime, or traditional loans. Another type of "non-conforming" home loan is one where the credit and income might be perfectly fine, but the loan amount is higher than $417K, which is the current maximum loan for single family loans that can be originated using pools of money from mortgage giants Fannie Mae (FNMA) and Freddie Mac (FHLMC). If the loan amount is higher, it can certainly be done - - it's called a "jumbo loan" - - but the end money comes from private institutions, not from the large government sponsored entities of Fannie and Freddie.

Most non-conforming loan product rates popped significantly higher in the last week.

The end mortgage investor for Subprime or Alt-A loans will charge a premium for investing in a pool of these loans, because he knows that traditionally, they might have a higher rate of default and delinquent payments within that risky pool. But lately, default and foreclosure have been on the rise - - partly due to the fact that with credit tightening and a soft real estate market, many troubled homeowners are unable to refinance or sell in order to get out of trouble. So now, these end institutions are demanding a much higher "risk premium" for taking on these pools of loans, as they see the rates of default are climbing higher.

But since these institutions are purchasing these pools of loans sometimes months after the borrower has actually closed at a given rate, this increase to the risk premium means that instead of paying $101K for a $100K loan that will bear interest, they may only be willing to pay $95K for that $100K mortgage to account for the risk. Multiply that times thousands upon thousands of loans...and you have millions upon millions of dollars in loss for the company trying to sell the pool at a much lower price than it was expecting. This "liquidity crisis" is exactly what happened to American Home Mortgage - - there was no mismanagement, but they simply got caught holding too many "hot potato" loans, forced to sell them at massive losses, and eventually they had to make the decision to close the doors and stop the bleeding.

Further, even when a lender is able to take some losses, it may be subject to a "margin call". This means that as their losses and risk premiums increase, the value of their loan portfolio decreases. As the value decreases, the credit lines that are secured by those portfolios call for more cash investment to bring the loan to value on it back in line, like having the value of a house go down and the lender asking for a new down payment to get it back to the original LTV. The mortgage company must inject more capital as the value of the asset against which it is secured has diminished. This is exactly like margin calls in the stock market. If you have a loan against a stock that is losing value, you will get a "margin call" and need to pay down the loan, as the underlying stock is losing too much value to be considered adequate collateral any longer. For the big lenders, as their portfolio is losing value due to increased risk premiums and losses, the margin calls start coming in, and they are required to pay down their balances. In turn, this means that they have less availability to fund their new loans, which then exacerbates the problem.

In response to seeing this situation play out in the demise of American Home Mortgage, lenders of other non-conforming loan products increased their interest rates dramatically almost overnight to be better prepared - - and likely over-prepared - - for increased risk premiums down the road. Even though loans above $417K are not presently suffering from increased delinquencies like the Subprime and Alt-A loans are, these rates popped higher as well, because they are being purchased by smaller private entities that can't afford to take on any margin of risk.

What happens next, and what should you do now?

The present situation will likely settle out over the coming year, and the rates on products that have moved so significantly higher now should trend lower down the road as delinquency rates stabilize.

-----------------------------------------

For investors, this means good news for picking up properties, the only bad thing is getting qualified for financing. They've really tightened their belt for investors. They are going back to the pre-2000 days when investors had to put money down.

I have a client right now that is being required to put 15% down on a duplex with a 708 mid fico and 1 mortgage late from 10 months ago. The mortgage late is incorrect and the company refuses to take it off his credit. 8 months ago this loan would've be done no problem...

We all seem to have a short term memory. When I started investing 7 years ago right out of college. There weren't as many options for investors and the same for homeowners. Since the stockmarket crash in 2000 a lot of these institutional investors and foreign investors needed a place to put their money. Real estate is where they put it.

There was an over abundance of money to be used and low interest rates that created this massive spike in real estate prices over the years.

But like anything what goes up must eventually come down. The dust on this crisis will start to clear over the next year. It's not that it's getting harder to buy real estate... it's just returning to normality!!!

visit www.TheHouseHub.com and get your inside information on properties

Eric Love
VIP Realty

DFW Real Estate Investing

Hello to everyone...

I just wanted to introduce myself. I'm Eric Love with VIP Realty. I've been investing for the last 7 years and I currently still invest in the DFW Metroplex. I am expanding my real estate agent business to network with investors and builders to help others invest.

I have a team that will help investors from all over including those from the DFW metroplex to help maximize their investment goals.

I have access to pre construction deals, rehabs, flips, rentals and commercial properties at discounts. I'm actively helping out both residential and commercial clients to find good property to invest in. I'll work with select investors that want to build a portfolio and that want to work with someone that's going to help put all the pieces together.

I don't just find the properties for you I help you come up with an investment strategy for the property. Anybody can find a discounted property but is that person going to work with you to execute a strategy whether it's long term or short term.

I don't just stop at finding properties and developing an exit strategy. I do research about a lot of the cities in the area. I relay this information to everybody on my list. I know what areas are good for investing and what areas you need to stay away from. Some areas use different strategies for investing, not every type of investor uses the same type of investment strategy nor is every investor comfortable with using every type of strategy.


Visit my website at http://www.TheHouseHub.com/ for more info.