Beaudry Properties - Blog

Lights in the Heights

2011-12-05T11:37:00.000-08:00

Deck the halls with boughs of holly and let the fun begin! It's that fabulous time of year when Woodland Heights hosts Lights in the Heights. I was driving around the neighborhood this weekend and saw so many people putting up their Christmas lights. This is going to be a great year primarily because the organization has made some changes to improve the event.

This year's Lights in the Heights will be held on Saturday, December 10 beginning at 6:00 p.m. and end at 10:00 p.m. No vendors will be permitted on the Norhill esplanade and security will be tighter. And since they haven't been widely publicizing the event, there may be fewer people attending. These changes promise to make it a cozier event.

So for those of you who do not know what this event is, here's the scoop. Woodland Heights is comprised mostly of Victorian and Craftsman Style homes. Beginning about 25 years ago, the residents began heavily decorating their homes for Christmas. They would then block off a couple of streets one evening to allow the people within the community to celebrate with one another. Each year it grew from just one or two streets to several. Recognition is offered for houses with the best decorations.

During the event itself, many homes throughout the community will be hosting musicians who will be playing Christmas music from the front porch. The style of music will be anything from 4-string quartets to jazz to a cappella. This year, rock music will not be permitted as the community wishes to keep the noise level down.

Please note, that there will be several private parties throughout the community; so be careful not to crash any of them.

Should you find you are unable to attend Lights in the Heights, take a leisurely drive through the community any night in December and enjoy the beautiful decorations; many are worth seeing in daylight as well.

Corporate Housing - Houston

2011-04-15T22:56:00.001-07:00

Corporate housing is basically a furnished apartment. Initially, they were leased by corporations for their employees who were temporarily residing in Houston. Now, anyone can lease furnished apartments for a variety of reasons.

The process of acquiring a corporate rental can be rather complicated and boring. So, I'm not going to put you to sleep with a bunch of details. However, there are some basics you need to know.

Houston does not have an inventory of furnished rental apartments just waiting for someone to lease. These days, you pick your property and a third party converts it into a furnished unit.
Your options include two different types of properties: Apartment communities and privately owned properties. Sometimes private owners will have their property set up specifically as a furnished apartment or home. These are rare but they do exist.
Most properties require 1 year leases. There are some apartment communities that will accept shorter term leases. Most condo and hi-rise buildings do not allow short term leases. This really limits your choices.
A furnished unit may or may not include utilities and maid service. When negotiating for a furnished unit, it helps if you know what you need. Expect to pay about $2000 above the base price of an unfurnished apartment or home. This number can be lowered by placing utilities in your own name, hiring a maid or even reducing the number of televisions in the unit.
Once you find your property, you'll need to allow up to 5 business days for it to be converted to a furnished apartment.

Finding a furnished apartment can be a lot of work and very frustrating. Use a Realtor who is experienced in leasing. They can make this process easy for you and prevent you from wasting a lot of time.

The Accidental Landlord

2010-10-21T09:47:00.000-07:00

I'm sure many of you have seen the reports that home sales have dropped in Houston. True, it's not as bad here as it is in other parts of the United States.

Even so, many home owners are either not in a position to lose money on the sale of their home or just don't want to. Still they need to move on to their new home. So, what do they do?

They lease their house instead of selling.

Many of the homeowners that take this path never planned to be here, they sort of "accidentally" got here. And the thought of being a landlord keeps them awake at night as they toss and turn envisioning their home being torn up by complete strangers.

Yes, there are risks to being a landlord. However, if done correctly, the benefits can outweigh those risks.

I've discovered there are 4 things that give a person pause when considering becoming a landlord.

Will my tenant pay their rent on time?
Will they fulfill the lease agreement?
Is my tenant going to tear up my property?
Is the tenant going to call me every day complaining about something that needs fixing?

There are things that can be done to ensure that landlords sleep at night while renting out their property.

A very good start is to hire a real estate agent to list your property for lease. Just by doing this one thing, you can eliminate people you might not want renting your property. I have discovered that people who are not comfortable having their backgrounds checked usually don't approach Realtors to assist them in their property search. Beaudry Properties checks an applicant's Credit, Criminal, Check Writing and Criminal History. We also conduct Employment and Rental Verification either in writing or through phone interviews.

We are also able to provide all the forms necessary to lease your property beginning with the application and ending with the lease agreement and all required addenda. Not only do we provide the forms we also do the paperwork for you - of course your final approval/signature is still required but you are not left to determine the process on your own.

A typical security deposit is the equivalent of one month's rent. That is usually enough to handle small repairs in the event such are required. Should your tenant have a pet, you can also collect a pet deposit.

As part of the lease agreement, the landlord can require tenants to pay upfront for repairs that are not deemed the responsibility of the landlord as outlined in the Texas Property Code.

Through our partnerships we are able to provide property management services. And our sister company, Inner Loop Landlords is just an added tool we use to market our client's lease properties.

If you think you might be an "Accidental Landlord" and you find the entire process daunting, you are not alone. Contact us and we'll help you through the process.

Midtown Madness

2010-08-12T16:41:00.000-07:00

Midtown is one of Houston's newest inner loop neighborhoods. Well, that's not exactly correct. Truth be told, the area has many historic landmarks. However it has only been within the last five years that it actually defined itself as one of Houston's managed districts. A lot of the area in Midtown was just just empty lots and dilapidated buildings until investors and developers arrived with some vision.

Now, Midtown has defined boundaries and it falls within a Tax Increment Reinvestment Zone a.k.a. TIRZ. What exactly is a TIRZ? Good question. According to the Midtown Management District, a TIRZ "is a special district created by the City to help finance the cost of redeveloping an area that would not otherwise attract significant private investment in development in the foreseeable future." These taxes are not levied taxes, either. A portion of the ad valorem taxes are invested back into the district.

A great feature of this neighborhood is the strength and enthusiasm radiating from the community itself. People within this community are involved. Local residents can enjoy events such as Art in the Park where local artists display and sell their art in one of Midtown's beautiful parks. Or Plant and Pedal, a project that fosters improvements through planting flowers and trees.

The list of restaurants in the area is quite impressive: Brennan's, Cyclone Anaya's, Reef, Farrago's, Ibiza and Crave Sushi are just a few. And if one wants a little late night fun, there's Howl at the Moon, Pub Fiction and 13 Celcius.

In sum, Midtown offers one a completely stocked and established residential community close to downtown. For more information about Midtown and everything it offers, visit their website.

MAY 2010 Housing Market Newsletter

2010-05-12T10:56:00.000-07:00

Just leased a 4 bedroom right off Washington for $2475/month!!! That is a steal!

May's Housing Newsletter just came out!
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

Please click here to view the MAY-2010 Newsletter Housing Trends eNewsletter:

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

It also includes press releases with charts and videos, key market indicators and real estate sales and price statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report.

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.

Investor Tip #1 - Begin the process with the right agent.

2010-05-08T13:10:00.001-07:00

Envision that you found what you thought was the right investment property to purchase. You clean it up, you put it on the market but nothing happens. No one is leasing the property. So, you hire an agent to lease the property for you and discover you have to come down on the lease price significantly more than you thought. What happened?

Perhaps hiring an agent with strong leasing experience when you initially purchased the property would have helped.

We have had several investors approach us for our help after they purchased an investment property because the agent who sold it to them didn't "do leasing". Oftentimes the investor discovers that the agent who sold them the property wasn't exactly accurate regarding the market lease rate for that specific property. The anticipated cash flow didn't happen. Understanding the lease market is an important first step if you want to maximize your investment from the start.

I began my Real Estate career in leasing having written up at least 300+ lease contracts to date. In these transactions I represented the Landlord, the Tenant or both. I understand the market and what drives tenants towards specific properties. I know what can be detrimental to getting a property leased and what makes it a coveted prize.

Buying an investment property at a good price is only a great deal if you can get it leased at a rate that makes it worthwhile. Partnering with someone who can see it all the way through to the end really can save you a lot of headache and stress.

Houston's New Kid on the Block - Highland Tower

2010-04-16T07:05:00.000-07:00

A much awaited Highland Tower is starting to move in its first tenants this month. The newest high-rise condo in Houston is located just inside the loop, opposite the Galleria and within walking distance to Highland Village Shopping Center. They have one, two and three bedrooms available for sale starting in the $300s.

Of course there are penthouses available, and there have been several buyers who have requested walls be taken down to create their own floor plans with the help of prestigious Ziegler-Cooper Architects, who had a hand in helping the developers at Pelican Builders with the design of the tower. They did a fantastic job!

Construction started in 2008 right before the market declined, and the tower has been able to survive with 35% of the building's 93 units already being sold before tenants could move in! I truly believe this high-rise will succeed in comparison to similar projects such as the Mosaic and the Royalton. Both towers have succumbed to leasing after sales decreased, which drove property values down. Due to the state of the economy, there won't be construction of another condo tower project in town at least for the next couple of years - meaning, the Highland Tower can claim to be Houston's newest condo for a long time. I'd definitely recommend this new project to anyone looking to buy a city condo!

The six wards of Houston

2010-04-02T13:41:00.001-07:00

I grew up in Kingwood and remember that the only time I ever heard mention any of the wards of Houston was during news casts. I never really understood them. But now that I live in the loop and practice real estate, I hear about them all the time.

My clients and friends are always asking me about our wards, so I've decided to do my research and write a little piece on them.

When the Allen brothers left New York to come to our neck of the woods in 1836, they purchased 6,600+ acres of land along the Bayou and called it Houston. Once the city was incorporated in 1837, they divided the city into political districts. These districts, referred to as "wards", were strictly based on geographical boundaries and never took into consideration the number of people within the boundaries. Their purpose was to create an electoral district for administrative and representative purposes.

Initially, there were only four wards. In 1866 the fifth ward was added and 10 years later, thereabout, the 6th ward was added. A map of these wards can be found here.

I had assumed that since the Allen brothers came directly from New York, that the idea of the ward system was born from the 5 Burroughs of New York. My research, however, has taught me that the Burroughs of New York were developed long after the Allen brothers left New York. It turns out that the ward system was used in other U.S. cities, such as Chicago, and not an original idea even to the Allen brothers.

The city redefined it's districts and no longer used the ward system in 1906; and in 1928 the wards were completely removed from maps. However, the neighborhoods still remain and the residents continue to proudly refer to their homes by the wards in which they reside.

I am a very nostalgic person and love the preservation of History. That may be why the Heights has such a special place in my heart. So, I would love to see the six wards of Houston forever remembered in recognition of our humble beginnings.

West Ave - Oooo La La

2010-03-24T08:31:00.000-07:00

Gables West Ave is the ambitious mixed use residential development at the corner of Kirby and Westheimer. The project takes up one city block and is a combination of residential living quarters and retail shopping.

Mixed use developments are a result of the desire to be able to live within walking distance of shopping, dining and playing. This recent phenomenon in Houston is born from the rising cost of fuel and a desire to leave behind smaller carbon footprints. In a city such as Houston where the absence of zoning laws make it difficult to provide an effective mass transportation system this is especially true.

A recent visit to this pedestrian friendly development left us almost totally speechless. Words that immediately come to mind are, chic, hip, elegant and stunning. The first thing that strikes you the most is that the property has high ceilings almost everywhere. Then you notice the details, the elegant stone work and the Art Deco.

Each apartment unit comes with nothing short of 10' ceilings and if you should reside on the top floor, your ceilings are as high as 12' or 14'. Add ceiling to floor windows to the mix for an elegant home you'll never want to leave.

Interiors include Brazilian hard wood floors, two-toned granite in gourmet kitchens, painted accent walls, stainless steel appliances and digital programmable thermostats. Our favorite interior feature is the I-Pod docking station that feeds your desired tunes through a built-in speaker system. They really get their clientele!

The entire residential part of this community is apartment living. We assumed that some aspect of the project would include condominiums since Gables recently converted their sister property on Kipling into upscale condos and sold them off. No such plans seem to be in the making for a similar fate at this property.

They have started leasing their residential units and have exciting plans for the retail aspect of their project. Tootsies, a high fashion women's retail store is slated to move in shortly. Robert Del Grande is planning on opening a restaurant along similar veins as his restaurant Cafe Annie as are the owners of Eddie V's planning to open something special. Oh, and let's not forget the 10,000 sq. ft. Roman day spa.

Pedestrian friendly communities seem to be the next attraction for various locations in Houston.

Other mixed use developments are on their way to Houston, too. Houston icon, Ed Wulfe, since 2005, has been developing the area at San Felipe and Post Oak. And GID Group out of Boston is in the planning process of Regent Sq uare located at the corner of Allen Parkway and Dunlavy.

Woodland Heights

2010-03-19T07:54:00.000-07:00

If you're looking for a charming historic area of Houston in which to live, Woodland Heights is the place to be. Platted in 1907, this area is one of the closest residential communities to downtown Houston.

The homes in Woodland Heights are generally bungalows or arts and crafts style homes. One can still find several of the Craftsman homes that were so popular last century. Many of them have been renovated to include modern features while keeping with the original feel and layout of the home when it was originally built.

This community is bound as follows: 11th street to the North, I-45 to the East, Studewood to the West and I-10 to the South.

Single family homes and lots in this area start well above $200k.

Woodland Heights also has a lot of personality. Every year, one Saturday in the month of December, the community hosts an event called Lights in the Heights. Residents during this time of year totally redefine "bling". And each year, it becomes more interesting. For just one evening, large sections of the community are corded off so that pedestrians can walk up and down the streets to enjoy the creatively decorated homes while sipping Wassel and listening to various performers play Christmas music.

Some even say the community has a quirky side to it. We would have to agree. Always in good taste, residents of this community find fun and creative ways to express themselves.

If you would like to learn more about this community, you may do so here: Woodland Heights Civic Association

Changes in FHA

2010-03-04T08:32:00.000-08:00

If you are a first time home buyer and you are looking to buy a house but don't have a lot of cash to put down, FHA financing is still a good and viable option.

The attractive aspects of FHA financing are two-fold: flexibility regarding credit and the low downpayment requirement.

There are some changes occuring in FHA financing, an effort on their part to improve the health and strength of the program.

If your credit score is less than 580, you will now be required to put a 10% downpayment on the house. Before the new ruling, you were required to put only 3.5% down. Regardless, 580 is still an achievable credit score.

Another change is that the seller can only contribute 3% towards closing costs, whereas before, the FHA allowed up to 6%.

And then, finally, the agency has increased the required Mortgage Insurance Premium from 1.75% to 2.25%; the result of this change will be an increase in monthly payments.

In sum, these changes will require the buyer to have more cash on hand for closing costs and perhaps a lower priced home in order to cover the increase in monthly payments resulting from the change in Mortgage Insurance. None of these changes are severe enough to create any huge change in demand for FHA financing.

Understanding Foreclosures

2009-09-21T12:19:00.000-07:00

You’ve probably stayed up late at night and heard the infomercials about all the money you can make purchasing foreclosures. I’m here to tell you, it’s not as easy as you think and that most of it is going to be based on a combination of flexibility and your willingness to take risks.

To begin with, for the most part, there is no equity in these properties. Today’s foreclosures are a product of several years of inflated home values and high financing. Banks are discovering they are saddled with loans on houses that are worth less than the notes and they need to get as much money back as possible. That means banks are aiming for market value.

If you want to get the best deal, you have to go to the bank auction. In doing so, you assume the most risk as you are purchasing the property “as-is” and it is up to you to clear the title of additional liens and issues. In addition, they require a greater cash commitment. Your willingness to take the risk, buys you the best deal.

If the bank can’t get the property sold at auction, it becomes an REO listing (Real Estate Owned). In other words, it’s the bank’s problem and they need to get rid of it. Assuming the note is greater than the value of the property, the bank wants to recover as much loss as they can for the property and they want to move it as fast as possible.

Banks are not interested in helping a company build wealth by listing their properties exclusively in a private website. They want the best offer they can get and that happens by listing the property where the most people can access the information freely. Listing the property with a realtor and placing it in an MLS is the best way that can be done. And lucky for you, Houston’s MLS is always available to the public.

Property Condition

Oftentimes, but not always, property owners are very angry that they are being foreclosed on so they retaliate by taking everything that isn’t nailed down. That includes all appliances and A/C units. I’ve seen properties where the owner removed the hardware from the kitchen cabinets and all the water faucets/fixtures. It is quite rare for a property to be in “move-in” condition, though they do exist. The worst the condition of the property, the lower the asking price.

Banks are getting smart and they are offering relocation assistance to homeowners in an effort to prevent them from stripping out the property.

You should have money put aside to cover the cost of repairs and appliances just in case.

Expectations.

Keeping everything in mind that I’ve explained up to this point, what can you expect as a return from an REO? That depends on your needs. Is this going to be your homestead or an investment property? How much of it are you financing?

The greater the number of requirements you have, the more difficult it is to get a good deal. If you have kids, you are probably trying to find a house in a great neighborhood with good schools. You are probably far less flexible regarding the geographical area and the move-in condition of the property.

If it’s an investment property that you are purchasing to lease out, then you don’t care where it’s located as long as you can be assured it will lease out at a reasonable rate.

Then of course there is resale value. Unfortunately, I don’t have a crystal ball, so I’m not able to determine what the resale value of a property will be 5 years from now.

Price strategies

When you find an incredible deal on HAR for a property that is in foreclosure, you have to act very quickly; and you have to be ready to make the best offer you can. And oftentimes, that means offering more than the asking price.

You’re probably thinking that defeats the purpose of getting a deal. Remember, the bank is trying to get the best price in the shortest amount of time. So the listing agent might be setting up a bidding war in order to make that happen. You will still most likely be able get the property at below market value, but probably only about 15 – 20% below.

Reality

Here’s the reality of the situation. If as a realtor, a bank were to approach me to list a foreclosure where the bank only had to recover $100k but the market value of the property was actually $150k - $200k, would I list it? Or would I buy it myself and then turn around and list it at market value? Would I not be on the phone calling my investor clients and letting them know about the property? And how would that property have made it past the auction block?

I’m skeptical of people who claim that they have access to information about properties that meet the scenario I just described. Because as I said, the banks want these properties off their books fast.

Summary

I don’t want you to be discouraged as I’m sure you are seeking a foreclosed property because you want a good deal. We are in interesting times and property values are about as low as they are going to be for a while. A foreclosure just seems like the best way to get that rock bottom price. I’m here to tell you that there are good deals to be had whether the house is in foreclosure or not. Limit your “must haves” and you increase your chance of getting a good deal on your purchase.

One Park Place - Downtown Houston's newest luxury addition

2009-04-08T11:26:00.000-07:00

Houston icon, Marvy Finger, hits it out of the park with the introduction of his latest property, One Park Place. This beautiful downtown high rise over looking Discovery Green offers leasing at it's very finest. Located near Houston's nicer hotels and downtown shops, residents can easily walk to the Toyota Center for basketball, hockey and concerts, Minute Maid park for baseball and the George R. Brown Convention Center for various events. And if one is familiar with Houston's tunnel system, access is nearby.

If you ask Marvy what he thinks the number one reason is that people move it would be due to noise. He not only believes this he also proudly incorporates this belief into his design. The units in this building are noise-proof. From the wrapping of the pipes to the raising of the wood floors in each unit. Even the patio doors quietly slide open and closed so as not to be heard from your neighbor's patio.

Spacious living areas donned with the latest and greatest features leave no doubt in anyone's mind that the quality of lifestyle this rental property offers is as good as it gets. Interior features include wood floors, granite countertops, front load washer/dryer and the vent hoods over the stove carry the heat and smell out of the building. Pocket doors? Yes!

Nothing was left out when designing this building. It offers it's residents a gorgeous swimming pool with fountain, a business center and conference room, a media room and a morning room where residents can get their coffee. Then of course, there is the valet parking, complimentary to residents and their guests.

Though the building continues to be under construction, it has reached enough completion to allow residents to begin moving in. If you want to experiencing true luxury high rise living without committing to a mortgage, One Park Place is THE PLACE to consider.

Is this a good time to buy a house?

2009-03-25T19:56:00.001-07:00

I get asked that question a lot.

My answer is always the same. What is your objective?

Obviously, the question is being asked as a result of recent economic events. Every day we hear more and more about foreclosures across America. We see stories on T.V. about home values plummeting across the nation.

Texas, so far, has been spared the degree of loss that our fellow Americans are facing. Home values in Houston never really inflated to the same degree that they inflated in states like California, so that means they don't have as far to fall.

Trying to find the bottom in a state like California is like the difference between paying $1 million or $500K for a house. Whereas in Houston, it could be the difference between paying $400K or $375K for a house. The risk of losing out on a really good deal because one decided not to wait for the market to hit bottom just isn't that high.

If you're an investor trying to decide if you want to buy an investment property, this is an excellent time to buy. Lease rates in Houston are excellent. A lot of first time home buyers are afraid to commit to a mortgage, don't have the required down payment or don't have the credit score needed to qualify. This means they have no choice but to lease until their situation changed.

If you qualify and have the money to put a down payment on a house, then yes, this is a good time to buy. Could you get a better deal if you waited a few months? Possibly. But it comes back to the question. What is your goal? If you are ready to be a home owner, be a home owner and just enjoy your home. I have heard it said that if you want to recoup your closing costs when you go to sell, you need to hang on to your house for at least 5 years. It all depends on how quickly your house builds equity.

Getting a good deal on a house should be only a part of your objective. Loving the house you've decided to spend the next several years is probably a better objective. An experienced Realtor can help make sure you don't pay more than the market value of your house and he or she may even succeed in getting you a good deal on it.

Short Sales

2009-02-24T10:32:00.001-08:00

As more and more homeowners are being faced with the daunting prospect of facing foreclosure on their homes, "short sales" appears to be the new trend. If you are a homeowner anticipating foreclosure on your home you might want to consider a short sale of your property.

What is a short sale? In a nutshell, it is when the bank permits you to sell the house short of what is owed on the principal of the note. The balance of the note is usually forgiven and a 1099 is issued to the homeowner for the difference. You would need to consult with your bank to find out exactly what their policy is. Consulting an attorney would also be a good idea.

Why a short sale? By doing a short sale, you prevent foreclosure and can potentially save your credit. When doing a short sale, the bank covers the liens (i.e. outstanding HOA fees and taxes) and realtor fees. If the buyer is requesting closing costs to be covered it is also possible that the bank will be willing to cover them.

The most important thing to know about a short sale is that the process is an arduous one. If you are going to do a short sale, the best time to begin the process is before you begin defaulting on your house payments. Once you begin defaulting, the amount of time you have to find a buyer begins to diminish.

Most real estate agents today have some experience with short sales. The key is finding one who is willing to do them. There is a lot of work involved in seeing the sale to completion.

What is required? Each bank is different. For the most part, in order to have a short sale accepted by your bank you will most likely need a hardship letter that explains why you can't make your house payments. Some required items are financial statements from your bank, pay stubs and an actual offer. Again, you would need to contact your bank to know exactly what you need. In addition to this, you will need to provide the bank with authorization for your realtor to speak to them about your account.

How long does the process take? This is where your patience and your buyer's patience will be tested. Each bank is different. It can take anywhere from 2 weeks to 6 months before you will know if your buyer's OFFER is going to be accepted. Bank processes generally allow a foreclosure to be stalled while a short sale is being considered but there is no set criteria for this. Some banks may not stop the clock fast enough. This is why you want to begin the short sale process before you stop making payments.

The key point to know is that once the foreclosure occurs, it is too late for a short sale to take place.

What a difference a day can make.

2008-09-17T09:46:00.001-07:00

I've been in sales for a very long time now. I remember my first sales job was a very grueling one. During the first few months, I really worked very hard trying to get things going. It seemed like I was never going to get anywhere but I wouldn't give up. And then, one day something gave and orders started coming in. I'll never forget my sales manager looking at me and saying, "See what a difference a day can make"?

Houston was beginning to shift into a buyer's market. Some areas, mostly outside of the loop, were feeling it the most. The innerloop was getting it but not as much. And homes over $500K seemed to be doing the best.

It looks like Hurricane Ike is going to change all that. It will take a few days for Realtors to be able to assess their inventory and determine which homes are still in tact and which ones aren't. And as we wait for power to come on some Realtors are out of commission.

More significantly, some of Houston's available inventory has been damaged and will have to be taken off the market. That definitely lowers the supply of housing. I've received a few calls from displaced home owners needing housing in Houston.

If you are a buyer, don't wait too long to get started, you don't want to find yourself in a bidding war over property.

Houston after Hurricane Ike

2008-09-15T10:55:00.001-07:00

Well, it finally happened. Houston's luck ran out and we got hit by a hurricane. Luckily, I suffered no damage to my home and I have power.

As Houston begins to dust itself off and continue moving on, neighbors to the southeast are not so lucky. Many of them have lost their homes and are displaced. This is going to change Houston's housing market and I predict housing demand will increase. I suspect the area the most stressed will be the inner loop area close to downtown or close to freeways. Displaced homeowners still need to commute and will want to be close to freeways.

Add this to the existing demand from people transferring into Houston and I believe we are very well heading towards a seller's market. I remember hearing reports after Hurricane Katrina devastated New Orleans that bidding wars took place for houses in Baton Rouge. It is quite possible that Houston can see similar activity. However, due to the massive size of Houston, I believe we will see this type of activity in pockets of Houston.

It never ceases to amaze me how things can change in Real Estate in just a matter of 24 hours.

Houston - An Investor's Paradise

2008-09-05T11:16:00.000-07:00

Houston is in a very unique position right now. Perhaps this is the case throughout the U.S. but since I practice Real Estate here in Houston, I can speak only for Houston.

We're running low on rental property.

In recent years, out of town investors were lured to our fair city and encouraged to pay astronomical prices for property only to discover that the lease revenue they were promised didn't deliver. What was the problem?

The problem was that it was a seller's market. The demand for property was high and the number of qualified buyers was high. Everyone qualified to buy, so if a lessee felt the asking lease price of a property was too high, they negotiated the price down. The landlords had no choice but to comply.

The tables are turned now. Fewer people are being qualified for loans and there is some uncertainty regarding how the economic woes this nation is facing will affect Houston. So, that means we have a greater number of people needing to lease property. And since these lessees no longer have that buying power, they no longer have negotiating leverage. Additionally, there isn't enough rental property to meet the demand. This is especially the case in the inner loop area.

There is another goody in it for the today's investor. Since we have fewer qualified buyers chasing a high volume of available property, it's a buyer's market. So, not only can an investor get a piece of property at a really good price right now, one can lease it and expect top dollar for it.

There are still very nice affordable neighborhoods inside Houston's inner loop that are worth exploring. An effective strategy would be to purchase a few homes, invest for minor upgrades, lease for a few years and then sell when the economy picks up.

Short Sale or Foreclosed properties - which to buy?

2008-08-13T16:13:00.001-07:00

Many homeowners in Houston are facing foreclosure. So, in a last ditch effort to save their credit they are opting to "short sale" their property. This scenario offers a really nice inventory of unbelievable deals to the average consumer.

What is a Short Sale? A short sale occurs as follows. Let's assume you have a house note with a balance of about $300,000 and you can no longer make the payments. The market value of your property has dropped and you can't sell it for more than $200,000. So you ask your bank if they will allow you to sell your property "short" of what you owe. That's the short and skinny of it but there is more to it. If you are in a situation where you think you might need to do a short sale, contact an attorney and an agent.

Why would a bank agree to a short sale? A couple of reasons. If the property goes into foreclosure, the bank will have to pay out more in legal fees and lost opportunity than if they allowed the borrowers the opportunity to short sale the property. Another concern is that the borrower t might file for bankruptcy. Apparently that can completely stall the bank's ability to seize the property and it could take a lot longer before the bank could recoup any money.

What's the difference between buying a property that is foreclosed on and one that is being offered as a short sale?

For the sake of this article, the foreclosures we are referring to are Bank Owned REO properties. This type property usually has a clear title. That means that the bank has already paid off the taxes and other liens against the property in order to facilitate a smooth sale.

When dealing with a property that is selling as a short sale, more than likely the seller has defaulted on property taxes and HOA fees as well as mortgage payments. Those liens are cleared at the closing table when the sale is closed.

The devil isn't in the liens, the devil is in the process. Banks have been foreclosing on properties since the beginning of time. It's an easy breezy process. What's new today is the volume of foreclosures. It's expensive and they can save money by agreeing to do short sales. The problem here is that banks just don't have a lot of experience in the process of a short sale. They are blindsided by the problem and don't know what they're doing. The result is a very very long process with many delays and lost documents once an offer is put on the table.

I recently spoke to a bank loss and mitigation agent that handles short sales for the Texas region and she is managing 170 files at one time. She told me that she's got a light load compared to most in her company. Others carry as many as 250. She indicated that she had files that had offers as far back as September '07 that she had not yet closed on.

This isn't true with every bank but short sales are becoming a nightmare for many agents. And what's worse is after all the hard work is done in submitting a sale and then persistently closing the deal, the lender may decide to cut back a hefty portion of the Realtor's commission.

If you are in a hurry and want a smoother process, you may want to consider buying a home that is already foreclosed on and pass on the one that is available as a short sale.

Rice Military - What is it

2008-08-13T16:11:00.000-07:00

I get that question a lot.

Rice Military is a neighborhood in Houston that is just east of Memorial. It has become a popular area due to the new town homes and patio homes that are popping up throughout.

I am unsure of the actual technical boundaries but would define it as the area between Shepherd and Westcott, and Memorial and I-10. The area just South of Washington is established; as you venture North of Washington you'll find gentrification and the area is not as established but the new homes are beautiful.

According to the Greater Houston Preservation Alliance this area was the site of a military facility called Camp Logan in the early 1900's. The land itself was donated by J.S. and W.M. Rice whose estate also contributed to Rice University. There are no real historical "markers" remaining in the area to give one a clue regarding the presence of the camp. Nor does the area have any type of "military" feel to it.