Read the article here.

Thanks to Matthew Dillingham for the heads up on this!

For those with cash-in-hand, investment real estate is about to be big business.  Down markets are where real estate fortunes are truly made.  If you are ready to step into the world of long to mid-term rental property, contact me for a list of what I believe are areas and properties to watch.

I have been banking exclusively with local banks in the Houston area for years.  Prosperity Bank, Community National Bank, and Tradition Bank have all given me excellent service and great loan terms.  The Bank of Texas, a regional player, is a long-time client of mine in the REO world.

Rates have traditionally been higher at local banks, with more equity typically being required.  As this becomes the norm in our post-FNMA-crash world, more people are looking to these institutions as an option.  As a listing real estate broker, I love it when a buyer comes armed with a pre-approval letter from a local bank.  They are typically strong buyers, but even more enticing to me is not having to deal with an out-of-town underwriter who is also out-of-touch with the local market.  Closings typically happen on-time, and fund quickly.  One local bank that I will start referring clients to, Patriot Bank, even had the loan officer bring closing documents and wiring instructions to the closing table resulting in an instantaneous funding!  I love it!

Most local banks, when doing mortgage loans in today’s market, will want you to move most or all of your accounts to their branch.  I find it helpful to build these relationships in this manner, because they are quite responsive when a ‘regular’ customer needs assistance.  Many officers at local banks will call you before letting your account goes into overdraft status (avoiding lots of fees and headaches!), do ‘signature’ loans on short notice, and perform many other helpful services that the big guys can’t offer.

So check out one of your many local banks soon, and start building the relationship.  You may not get the gimmicky freebies that the national chains offer, but if an extra $20 a year or so buys you peace of mind and a solid banking relationship, who cares?!?

We already knew that Houston was a great place to live and work, and now Kiplinger agrees! Reasons for the Bayou City’s top ranking include our rapid job growth, low cost of living, and fine arts outlets.

On a (possibly) related note: the market perked up this weekend! We negotiated several contracts and received a ton of calls on Saturday and Sunday. Now is THE time to list! Catch the ‘summer rush’!

http://american.com/archive/2008/march-april-magazine-contents/lone-star-rising

“Over the past decade, Houston, Phoenix, and Dallas each have matched the employment growth of New York, Boston, San Francisco, and the Silicon Valley area combined. One of the most powerful weapons of opportunity cities in this contest is the growing divergence in costs between them and “superstar” cities. The latter clearly provide somewhat higher wages to professional, financial, and engineering workers. Yet for most people, the vast differences in the cost of living and real estate prices allows professionals working in Phoenix, Charlotte, or Houston to enjoy a considerably higher standard of living.

Over time, these cost differences, as well as the associated continuing shift in employment opportunities, has begun to alter one of the most critical indicators of future economic growth: the flow of educated labor. Indeed, since the late 1990s there has been a rising outflow of workers with postsecondary education from increasingly expensive cities like Boston, New York, and San Francisco and a parallel shift toward more family-friendly, modestly priced metropolitan areas. “

We feel these organic-type sites will provide a good place for neighbors to chat about issues, promote events, and at the same time solidify us as authorities on these communities.

January 2008 has started off strong for most agents I know (myself included). The recent rate cut by the Fed has allowed clients to get in the upper 4%’s on 15 year notes, and low 5%’s on 30-year notes! I personally will be re-fi’ing a higher rate 2nd lien that I have, and should save several hundred dollars a month!

Although the market is strong, the foreclosure wave brought about by subprime lending continues to roll. The difference for Houston is that people here are taking advantage of this chance to get good deals & purchase investment property! Our market never “bubbled” like so many states (CA!), so the prices are stable and in many cases increasing!

If you want to take advantage of this market, and help pad your retirement, talk to one of our investment real estate experts about purchasing some single-family or multi-family income property.

Aside from the usual hoilday slowdown, the Houston housing market continues to click along. The out-of-state investor business should continue to pick up, but Realtors need to be wary of these folks. I don’t know how many California “investors” have called to ask me to send them investment-grade listings. When I send them a Buyer’s Rep Agreement first, I never hear back! Basically these guys are looking for every Realtor in town to show them a listing, and then they’ll hire an agent who will kick them back almost all of the commission. NEVER WORK WITHOUT A BUYER’S REP. EVER. NEVER EVER.

Anyway, coming back from that tangent…….

I continue to be optimistic about the future of our market. While prices in inner-loop and inner-beltway properties continue to climb, we are nowhere near a ‘bubble’. I know it has been said over and over again, but Houston is one of the most affordable cities in America. People are moving here from all over the country, because they can live in the best parts of the city for the price of a Los Angeles or Boston middle-class suburb.

This website needs no introduction. Just watch & smile. And take the tedst.

www.tedtruitt.com