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.

Client Spotlight: Foundation Resolutions LLC

As landlords and investors it’s inevitable that we’ll run into some major repairs along the way. But what we may not plan on is losing time and money on vacancies because of unscrupulous contractors and repairmen.

Red Team has been in the business long enough to recognize quality workmanship when we see it. If you have any foundation and/or water problems, Foundation Resolutions, LLC is the team for you. Integrity in this industry is hard to come by – Foundation Resolutions is a great option!

Founder of Red Team Property Management and Educational Entrepreneur, Michael Mayes is impassioned about raising the bar of greatness by cultivating your understanding in all areas of property and real estate. 

For more information on avoiding unexpected rental disasters, read our latest post, Qualifying the Tenant Versus Speed to Rental: Crucial Information for Rental Property Investors


For more information on our client spotlight, contact: 

Edwin Sumlin

Foundation Resolutions 

(817) 645-0000

Red Team News: Red Team is Growing!

Meet Our Newest Member – Stella Louck-Beech


Red Team Real Estate and Property Management is happy to welcome Stella Louck-Beech to

our team!


Stella is a true cowgirl with a love for real estate. She has enjoyed the last fifteen years working in sales and property management and is excited about bringing her knowledge and expertise to our company.

State and local involvement is very important to Stella. She actively works with her fellow Texans and officials to help define the future of real estate in our great State.

Join us in giving Stella a great BIG ‘ol Texas welcome! 

2501 Forest Park Blvd Suite 1F
Fort Worth, TX 76110
TEL (817) 921-3545

EMAIL info@redteamdfw.com 

Qualifying the Tenant Versus Speed to Rental

Crucial Information for Rental Property Investors 

There are plenty of Guru’s out there that want to sell you their secrets, claiming they can fill your vacancies in less than thirty days. And while they may have some valuable tips, not all of these experts will talk to you about how to discern a good tenant from a bad one, a responsible tenant from an irresponsible one, and a non-paying tenant from a paying one.

“A set of voodoo candles used in a “good luck” ritual sets off a massive fire, killing one woman and left 47 families homeless. Fire officials say the early evening blaze could have easily been contained had the occupants of the apartment called 911 instead of trying to put it out by themselves”. This story is not made up for entertainment, but an actual story of what a real estate investor went through.

Although things may get tight when you have vacancies, things could get even worse if you choose the wrong tenant – getting your property rented to a properly qualified tenant should be your main priority. If you do not have the time or resources to properly screen potential tenants, locate a reputable property manager – this is what they do for a living! The stress and headache that often accompany the landlord job can be reduced.  One effective solution is the screening process.

  • Whether by phone or email, your first contact with the tenant begins the screening process. Asking the right questions can help you decide how you should proceed. 
  • Advise potential tenants of your up-front rent and security deposit requirements, and any other important facts regarding the rental that may change their interest in your property.
  • Draft a list of specific questions to ask. 

Always have a detailed application. I recommend collecting a screening fee and running a background report to weed out prospects that might be ineligible based on your criteria. Review and verify the application thoroughly and look for inconsistencies and red flags.

It is very important that you have a quality residential lease. Make sure your lease covers all seen and unforeseen scenarios. Read the entire lease agreement with the tenants at signing to ensure they understand all contingencies.

Getting your property rented is important but here are the variables you might be missing. If you’re looking to make the most of your investment, avoid costly mistakes and enjoy more freedom, we invite you to connect with the team at Red Team Property Management. We work for our owners focused on creating value. This means getting the best rent as the market continues to change. Also, this means fostering the right tenant fit so that you have as little vacancy time as possible. 

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.

Client Spotlight: Joseph Reeves

Red Team’s April Spotlight features: Joseph and Ginny Reeves.  Property Investors with a BIG vision!  Here’s their story!

Ginny and I wanted to start getting into investment property but had no idea where to start or how to manage it. Red Team became a perfect fit because they offer an honest, no hassle, full service solution for managing your properties. 

We heard horror stories about trying to manage a rental property. Having a management company takes away all the stress: they do all the background checks on potential tenants and have all the contacts necessary for any repairs. 

The staff at Red Team is extremely professional. They are quick to answer any questions or address any problems we have. 

There is no hassle. Red Team handles everything and we just sit back and relax.

We would love to help you too!  Contact us today.
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.

3 Simple Rules for a Profitable Purchase

Avoiding the “Money Pit” when Buying Rental Properties

In the 1986 hit movie, The Money Pit, Tom Hanks and Shelley Long buy a country estate outside the city at a bargain price. It soon becomes apparent why…as the doors fall off their hinges, staircases come tumbling down and a bathtub falls through the floor. While the film is full of humor, I know many investors who can relate all-too-well with the comedic couple, but it’s no laughing matter.  
Save yourself the horrors of a money pit by following these 3 Simple Rules before investing in rental properties
Put Your Business Goggles On
After all, these homes aren’t for you so don’t judge them based on your personal preferences. Any property you buy has to make sense from a business perspective. Look for sensible, reasonably priced homes that would be appealing to your “dream” tenant.
Know Your Numbers

An error in analysis, whether it’s paying too much for a home or not budgeting for the ongoing costs of the property has caused many investors to see their asset become a liability. Know what you can afford and educate yourself on the costs associated with this type of investment. Just covering your loan isn’t going to cut it. It is not uncommon for a property to be vacant for several days before it is leased. Meanwhile the investor has to pay the mortgage, the taxes, the insurance, the cost of advertising and homeowner or condo association dues.
Always Over Budget

There is more to consider than your loan, property taxes and insurance. Make sure to budget for routine maintenance and other unforeseen expenses. After you’ve done your research, plan to add a little more money and time you think it will take. If you can still make money after these considerations, you probably have a great investment at hand.
Before I close, I’d like to share the GOLDEN RULE of real estate investing – education. Educate yourself before you put your family’s financial security on the line. Read books, sign up for information centered newsletters and look for local resources, where you’ll find speakers who cover everything from buying foreclosures to screening tenants. 
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.