Client Spotlight: Captain Stu

This month’s client spotlight is a favorite. Meet Captain Stu!

“Being new to the rental business this past year, I knew I wanted to work with a company that could help me understand the process, as well as take care of all of the day to day operations. As a pilot, I am not available to answer or return phone calls promptly due to unpredictable work hours, so being referred to Red Team was the relationship that I needed to manage a property and find a reliable tenant.

With their expert knowledge and personalized service, not only did they help me understand my options with various property types, but also how to make a determination on what property was likely to generate the best return for my money.

They make it easy, and are a local Texas company that understands the DFW metroplex and it’s numerous markets well. Their staff s friendly, helpful, and have exceeded my expectations with my first property. They even handled the renovation floor to ceiling with quality vendors and developed a positive relationship with my first tenant.

Red Team made the process so stress free, that one year later, I am excited they are helping me find another property under their management.

Red Team is a Real Estate and Property Management relationship that I would recommend.”

Best regards,

Captain Stu

Educating for REAL Greatness,

Red Team Real Estate and Property Management
Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.

The 2015 top 3 insider tips for buying property in the DFW real estate market.

In Baseball, you cannot win the game in the first inning. If you get too far behind though, you can make the hole so deep that it is difficult to win the game. It is the same for purchasing real estate rentals. You need to “play” smart on the front end. If you find yourself getting behind, no need to worry! You can make that up over time. However, if you buy poorly on the front end, you will be chasing to get back to square one and may never make it.

It’s about Return on Investment (ROI).
There is no reason to buy a property for a long term rental if you are not aware of and focused on the ROI. As a rule of thumb for purchasing a Single Family Rental (SFR), we remind our clients that Red Team is looking for homes that are going to generate a fair ROI. For an SFR, we would typically look for a home that the purchase price plus repairs is going to generate approximately 1% per month in rental income. This is not exact, but if a property is not going to generate the income that we are looking for, we move on to the next opportunity. Note: This does not apply to turning an existing property into a rental, only to the purchase of a new property as a rental.

Remove Emotion.
Another thing to remember is to take emotion out of it. A rental property purchase is an investment. It is a business that is expected to generate revenue and ultimately a profit. If you purchase a rental and never make any money on it, then why did you buy it? Often we find people wanting to purchase a property because they like a certain neighborhood or because the price is great. Well, there may be reasons to make that purchase, however a good rental purchase is going to be one that generates an ROI that the owner is happy with receiving. A rental is not a good rental purchase because the owner can see themselves living in that house.

Always have the end in mind.
We tell our clients, knowing the long term plan is important on rentals. How long you are going to hold the property and what are you using the rental investment vehicle to accomplish? If you make a plan and know where you are headed, it is much easier to get there.

Educating for REAL Greatness,

Red Team Real Estate and Property Management
Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.

URGENT: 2015 Real Estate Investments

Information All Investors Need to Know NOW 
Lawrence Yun, chief economist with the National Association of Realtors commented on our rise from the great recession, “More jobs means more demand for office space, more demand for warehouse space, and more demand for rental housing.” he said. “States with the biggest employment increases are seeing the best commercial real estate activity. Some states are doing much better than others…Texas is consistently in the top five.”

This is fantastic news for anyone in the rental property business, and we’re all looking for ways to take advantage of this economic primetime, including new property purchases. But the question remains – do we jump now, or do we wait to see if it’s going to get better? Although most analysts are expecting a steady increase in both the economy and housing market, there is something more to consider.
In 2008, the Federal Reserve introduced the Quantitative Easing program which was meant to boost the economy. It’s thanks to this program that mortgage rates have been at a historic low, however the QE is now set to taper off by October of this year. Along with our economic growth and a dwindling unemployment rate, you can be sure that we’ll begin to see interest rate numbers rise by this fall, if not sooner.
DFW is such a hot market right now, and there’s no sign of that changing anytime soon. It is expected that Texas is going to see a 3.5% growth in its economy this year. Realtor.com even predicted that with our local area’s increasing inventory, high employment growth and relative affordability makes it the No. 1 market for forecasted household growth over the next five years.
Whether you’re thinking about jumping into the rental real estate pool for the first time or you’re a seasoned investor, we invite you to connect with our team. We’re passionate about what we do, and we love sharing our experienced advice with you, the investor. 
Educating for REAL Greatness,
Red Team Property Management

Red Team Real Estate was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional knowledgeable service with maximum value.