Thinking About Buying or Selling A Home In 2016?

Here’s What You Need To Know…

Who could forget the nightmare of the foreclosure crisis? Borrowers didn’t understand the terms of their loans, many were blindsided by last minute changes in fees and rates at the closing table—essentially, home buyers were most upset about the lack of disclosure in the mortgage process.

Since then, the Consumer Financial Protection Bureau has been working on making the loan process more transparent than it had been leading up to this, and as of October 3, 2015, there are two new forms that have replaced the previous (four) more misleading and confusing ones.

Both the Loan Estimate and Closing Disclosure are intended to streamline the loan application process and make it easier for borrowers to understand their contract by clearly spelling out the most relevant details all on one page—including the interest rate of the mortgage loan, the amount of the monthly payments and a listing of all the closing costs. Even if you apply for an adjustable rate mortgage, your documents will explain how the interest rate and future monthly payments could change based on certain factors.

The good news is that the “Know Before You Owe” forms have built in many protections for borrowers. Although making that big step into your new home should be (financially) more clear and sound—Purchasers not paying cash could be waiting up to 45 days for their contract to close, along with other set-backs.

The NAR is recommending you have everything ready seven days prior to closing, so before you start house shopping, here are the things you need to know:

Rather than waiting until the day of the closing to see the final figures, Borrowers now receive the Closing Disclosure three days in advance. To prevent any unwanted closing delays, a good rule of thumb is to have all the paperwork in order a week before your scheduled closing date. When you go into the three-day period, you’ll want to avoid any unnecessary changes. Making changes as the clock winds down can come with a cumbersome set of hurdles.

So this means that you and your settlement providers, including your Lender and Agent are really under the gun to get everything squared away—more so than ever before. Buyers and Sellers have to be cooperative as well, because if last-minute negotiations are made, a new three-day waiting period kicks in.

With zero tolerance for error throughout most of the disclosures, it’s vital everyone is working with a Real Estate Broker and Lender who understands the multiple new systems that have been introduced with these forms.

For those of you thinking about buying or selling a home in 2016, there’s a lot to do, and now is the time to get started!

We invite you to connect with us at Red Team Real Estate. Our Realtors are skilled in handling all types of real estate, and our comprehensive knowledge concerning the latest laws and market trends, along with the ability to network with other Agents and Lenders will truly benefit you. Contact us today and find out how we enhance both the buying and selling experience for each and every Red Team client.

Winning. Clients.

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.

Red Team News: The 7 Guides When Selecting a Property Management Company sneak peek

Are you a current property owner who wants to ensure you’re getting the best return on your investment?

Red Team Real Estate is proud to announce that our very own Michael Mayes is publishing his first book, The 7 Guides When Selecting a Property Management Company. Set to debut in 2016, this book goes far beyond simply selecting a property manager. Inside you will find a wealth of information, tips and secrets that all current and would-be investors should know. Ready for more? Here’s a sneak peek of one of the topics Michael will cover:

Investor’s Technology

What Landlord would want to pay more than necessary for interest or any other day-to-day operating expense? None, of course! So why are so many paying more taxes on their rental income than they have to?

Well, my guess is they just don’t know how Rental Real Estate can provide more tax benefits than almost any other investment. Failing to take advantage of all the tax deductions available could make the difference between losing money and earning a profit on a rental property.

Real Estate Managers have a responsibility to help their Investors achieve their financial goals for their properties—Property Management Companies like ours at Red Team Real Estate, use advanced technologies and industry leading practices to help you and your investments operate at their fullest potential.

Want to learn more about Investor’s Technology? Check out our latest article, New Trends in Property Management: Tax Time is Almost Here… Are You Prepared?

There are only 168 hours in a week and your Property Manager should be working smart and using them wisely! Owning real estate is a business and should be treated as such. Just because someone agrees to collect the renter’s check, does not ensure they are looking out for you best interest…

The 7 Guides When Selecting a Property Management Company, coming soon in 2016!

 

Winning. Clients.

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.

New Trends in Property Management

Which ones are shaping the future of your investment?

Part 1: Technology for Owners

Technology is changing the Property Management industry for both Landlords and Renters alike.The question is…which trends are shaping the future of property management right now, and most importantly, how can you use them to make the most of your investment? Here are Red Team Real Estate’s top two trends and the “must haves” for Investors or their Property Managers.

Management Software

Every REAL Property Management has to invest in Management Software to assist them in their account management. There’s so much paperwork and documentation involved in this business—it only makes sense to have technology working for you. Here are some of the most helpful and valuable tools for managing your property:

  • Accepting Payments via ACH
    Every month property owners and management companies spend a great deal of time and energy collecting rent from their tenants. All the while, costs for accepting, processing and depositing checks continue to escalate. Using a service like ACH saves you time, money and all the headaches typically involved in rent collection.
  • Reporting
    When you invest in technology and the management systems, it enables you to have clear and concise reporting. This includes monthly owner statements, cash flow reports and other information that owners need to review to confirm that their “Rental Business” is working.
  • End of Year Reporting
    Realtors that “do property management” have a hard time with end of year reports as well as with 1099s. When a Property Management Company invests in technology the 1099 process is automated and accurate. No hand completed 1099s for your owners or vendors!

Investing in technology for your Rental Business just makes good sense! Here are just a few other benefits you’re sure to appreciate:

  1. Web-based solutions available 24/7/365
  2. Risk management tools to help reduce losses
  3. Ability to edit payment information and schedule
  4. Robust reporting

Harness the Power of the Internet & Social Media

One of the latest and most effective tools for marketing to potential tenants and assisting property managers with showcasing their properties is online and through social media outlets. Sorry, folks…the world wide web isn’t going away, so if you’re not already proficient in rental property marketing, it’s time to hop on board!

  • Mobile Leasing Tools
    According to an article in Apartment Management Magazine, 87% of electronic device sales will be tablets and smartphones…which means property owners (or their managers) will need to accommodate this new generation of prospects and applicants with mobile online leasing tools. If you’re not already targeting mobile users you’re missing out on a huge slice of the renter demographic.
  • Application Process
    Most companies, regardless of industry, have embraced the Internet. It is amazing how many owners and “part-time” property managers are still using paper applications. What a mess! Investing in software systems allows you to do the whole application process online. With mobile online leasing tools, you’ll even have the ability to have a prospective tenant complete an application on an iPad or smartphone before they’ve left the property. Talk about efficiency!
  • Ratings and Reviews
    An online rating can carry a lot of weight with many potential tenants, and bad reviews tend to get much more attention than the good ones. Property management companies need to develop a program to get satisfied renters to post positive reviews and give good ratings. It may seem frivolous, but we’ve found that these types of programs are a worthy investment that can provide a good return.

Purchasing and learning how to use all this new technology may seem overwhelming to an Investor. Red Team Real Estate has a proven track record of giving their clients the leverage needed to stay on top of the most current trends. If you’re not already using a Property Management service, or your current company isn’t keeping up, we invite you to give us a call and speak with one of our experienced agents today.
  Winning. Clients.
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.

Red Team News

Ever found yourself having the will, but not the means? Right now DFW’s Real Estate market is paying out big for those who already own properties, but for those wanting to get in—well, it seems like you have to pay in big if you want to play. But hey, you know the saying…Where there’s a will, there’s a way—and this is definitely true of the current market. If you’re determined, if you’re ready, but you think that buying in isn’t a realistic option, you might be pretty surprised to hear that money isn’t everything! There are other factors that can change the odds in your favor, and it really comes down to how well positioned you are coming into an offer. If you’re hoping to get into our booming market, check out our latest article, A Well Positioned Offer: A Real Estate Investor’s Ace In The Hole

Winning Clients,

If you’re ready to start making money in this hot market, it really comes down to how well positioned you are coming into an offer. Red Team Real Estate has a proven track record of giving their clients the leverage needed to make the deal and make the money. If you’re considering a new purchase, we invite you to give us a call and speak with one of our experienced agents today.

A Well Positioned Offer

A Real Estate Investor’s Ace In The Hole

I recently talked about the continued population growth in the Dallas/Fort Worth area (click here to read the full article). Well, guess what…we’re still on fire, and with an expectation of continued growth, DFW is a rental property owner’s dream come true. Nowadays I’ve been hearing that most potential purchasers are finding it close to impossible to pick up properties at a reasonable price—between such high competition and record low inventory, sellers definitely seem to have the upper hand…so, is there any hope for investors to pick up a property and still make a profit?

I have great news for all of our wonderful Red Team clients, the answer is YES! And we’re not holding anything back…we’re showing you all four Aces!

Aside from your offer price, there are several other factors that can make or break your next purchase. Even if you don’t come in with the highest dollar offer, there are a few other things that can land you the deal. Here are 4 ways that will give you, the purchaser an upper-hand, ensuring your offer makes a real impact:

  1. Option period: A shorter option period tells the seller that you are serious about the purchase and are ready to move quickly and efficiently throughout the process. Sellers can be hesitant about longer option periods in this market because if your offer falls through, they’ll be stuck waiting much longer to move on to the next.
  2. Financing:Having your Pre-Approval in advance, from a lender who understands this business makes a huge difference–it shows a seller that you are organized and you will follow through with what you say.
  3. Option Dollars:As a serious buyer, offering option dollars could also be a way for a seller to see your offer as more appealing, even if you aren’t one of the highest offerers. Sellers tend to see you as more serious if your Option Money is on the higher end, as you must believe, as well as the seller, that you are more likely to close the deal.
  4. Cash:The old saying that Cash is King has not gone away. A cash offer sometimes will make the difference on a deal even when it is significantly lower than the asking price. Cash deals usually mean a quicker close and that the seller will have the money sooner. Note: Even if you are a buyer that is financing, the amount of cash you put down (% of purchase) can impress a seller on how serious and how strong of a buyer you are.

If you’re ready to start making money in this hot market, it really comes down to how well positioned you are coming into an offer. Red Team Real Estate has a proven track record of giving their clients the leverage needed to make the deal and make the money. If you’re considering a new purchase, we invite you to give us a call and speak with one of our experienced agents today.

Winning Clients.

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 North Texas Rental Market is on FIRE!

and it’s not going out anytime soon…

The DFW area recently took the #4 spot in Realtor.com’s top 20 hottest housing markets in the country and the numbers are showing it! Home prices have shot up by more than 40 percent during the last five years, and just two months ago, we saw prices jump by 14 percent – one of the largest year-over-year gains ever for our area.

May’s strong home sales and price spike is going to put a lot of pressure on DFW’s housing market, which is already stretched to its limits, with more buyers than sellers. While the area’s average is somewhere around the 1.4 months, some suburban markets, including The Colony, Richardson, Bedford, Hurst, Carrollton and Farmers Branch, have under a one month supply of houses listed for sale.

Homes are being built as quickly as possible, but as a younger crowd flocks to our city for its economic growth, most are not in the price range where inventory is needed mostthe entry-level market. In addition to the low inventory, tight lending standards and rising home prices have created a tough market for former homeowners, who lost property during the housing crash.

So what does this mean for residential property investors? A strong demand for more moderately priced homes has set the North Texas rental market on FIRE!

As of May 2015, the average apartment rent within 10 miles of Dallas, TX was $1512, with one-bedroom apartments going for an average of $1241 a month, and two-bedroom apartments averaging $1725.

If you already own properties in the area, seeing numbers like this is a rental investor’s dream come true! But with the hoards of new residents piling in, weeding through potential renters can be overwhelming at best. If you’re looking for more freedom and better returns, Red Team Property Management works hard to ensure you’re getting the best rent as our market continues to change, as well as fostering the right tenant fit – protecting your investment. Contact us today and start seeing results!

Best Rents + Great Tenant Fits = VALUE!

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.

Ask the Expert: How can I best utilize my rental income for better, long term investing?

Answer: 

This month I told you about the 3 Simple Rules for a Profitable Purchase. {Click Here to View}. To supplement these simple steps, for a long and profitable investment, you should plan on setting aside a portion of your gross rental income for a “rainy day”. 

Every situation is different, seek advice on what number might be best for you. This includes regular maintenance, repairs and the downtime of vacancies. 



Have a question?  Let us help!  Click here to submit your question.

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.