Register Real Estate Advisors

Don’t do it!  There are many reasons why I recommend seller financing over rent to own in Texas.

If a buyer does not have adequate funds for a down payment and has poor enough credit or income to keep a lender from offering them a loan, I don’t think they should be purchasing a home.  If they do have the income or the down payment, regardless of credit, then seller financing is a great option for them.  I don’t believe a landlord should offer to sell to someone that has poor credit, limited down payment, and unsteady employment.  That sounds like trouble to me – so I would never recommend this to one of my landlords or sellers.

If a tenant needs more time to get adequate financing, then I feel they should  purcahse a home at a later date – that is my opinion.  What if they are never able to get their credit in better shape and now the seller/landlord has agreed to sell their house to this renter?

It doesn’t help that ForSaleByOwner.com is now offering a lease to own advanced search option.  Other states that have different real estate laws, may be more suitable for rent to own tenants than Texas.

All rent to own contracts should be written up by attorneys or atleast reviewed by a real estate attorney.  The contract has to have a lease component and a sale component.  They are legal in all the United States, but I do not recommend doing it.

What if the seller is entering foreclosure?  Would you the tenant buyer know it?  If they got foreclosed on, you’d lose all your equity and get booted out of the house.  There has also been fraud associated with rent to own transcations.

Now for more down side to buyers – what if prices go down and you are locked into purchasing the home for more than it’s worth.  What if interest rates go way up?  If you don’t buy the home, then you lose all your money that was supposed to be going to the down payment.  Some contracts say that if buyers are late on a payment, that payment cannot count towards the down payment.

Realtors don’t have promulgated forms for rent to own options, so you have to pay an attorney to write it up.  Do you know everything you need to put in that contract to protect you and your property?  Neither do I.  That’s why I encourage rent to own buyers to instead use the option of Seller Financing.   Seller Financing can be completed on Realtor promulgated forms and all title company attorneys can write these up easily.  I believe seller financing is a better option for both sellers and buyers/renters.  It’s not just about the forms.  The forms are there because seller financing is more simplistic.  The buyer takes possession right away.  They don’t have to wait to own the property.

If you want to rent to own a home, I recommend you set up seller financing if you are in the state of Texas.  Call me if you want more details.  I can explain better over the phone – 281.288.3500.  Let me know if you want the buyer or seller’s point of view!

There are mortgage programs that are aimed specifically for foreign nationals moving to the United States.  If you are a foreign national moving to the United States to live in the Houston area, contact RREA’s in house lender to get qualified for a loan specialized to your needs.  Properties that are eligible for foreign national loans are both single family homes and condominiums.  These loans do require at least 25% down payment.  Call RREA today at 281.288.3500 to talk with our in house lender about qualifying and to our Realtors who can help you purchase a home.  Realtors work differently in Texas than in other parts of the world, so talk with a Realtor before you purchase a new or resale home in the states.

At RREA, we are a brokerage in the cloud. Are you looking for a Brokerage? Do you want a broker you can call anytime? RREA might be the perfect fit for you. Although we are located in Spring, Texas, we are looking for agents to service all areas of the Houston and surrounding markets. Currently, the only reason our agents need to come into the office is to pick up signs, make a video in our studio, or attend a class of their choosing that’s in the office. Our agents are never required to step foot in our brokerage. We offer everything an agent needs in the cloud. You can fax, scan, or mail your documents to your broker. We offer a broker that can be contacted every day of the week via fax, email, text, phone, and Facebook. If you are looking for a brokerage that offers all the documents you could need for your business in the cloud, call us today to join. We are an independent brokerage, so there are no franchise fees. We offer you everything you need in the comfort of your own home office. Call our broker today to join us – 281.288.3500. We offer everything you need – online – and we have a variety of plans to choose from. We want to help you grow your business and work whatever area of the market you live in!

There are both townhomes and condominiums in and around the Houston area.  You will need to know the difference if you are interested in purchasing either homes.  A townhouse is considered a single family residence and the paper work for the Realtor and Lender is the same as a free standing home purchase.  If you are purchasing a condominium, there is additional and different paperwork for the Realtor and Lender to prepare and strict guidelines for financing.

How do you know the difference between a townhouse and a condominium?  One way is to look at the legal description- in most cases, a townhome has a lot/block legal description and a condo will show “unit __” of “Building ___” or on tax records it will show style as being a condo.  If it is still unclear after looking at the tax records, the next step would be to have a title company pull the title information on the property to see how it was legally recorded.

If you are purchasing a condominium, you need to understand that they are considered high risk properties.  The condition and value depend on the neighbors as much as the owners, so owner occupancy is very important.  If too many owners are using the condo as an investment property or second home, then it could limit the type of loan you can get on your condo.  If you are getting a conventional loan on your condominium you have to put down atleast 20% so there will be no mortgage insurance required.  If you do a conventional loan with less than 20% down, then you will be required to get mortgage insurance and the owner occupancy rate must be atleast 75%.  So if the majority of the condos are used as rental units or second homes and you don’t have 20% to put down, you will not be able to get a conventional loan.   For an FHA or VA Loan, the government rules state that the condo association must be on the approved list for either FHA or VA before you can do a loan through them.  The approved lists are available online.  If the property is not on the approved list, then you do have the option to submit to FHA or VA for approval, but this is a long process.  For the property to get approved for an FHA or VA Loan they will require that it has an owner occupancy of atleast 50%, there cannot be any lawsuits going on with the property, past dues cannot be more than 15%, and any other requirements they want to add.

It is definitely easier and less risky to purcahse a townhome, but many condominiums are popular around the city and qualify for both VA and FHA Loans.  Check with a Realtor at Register Real Estate Advisors to learn more about the townhomes and condos in the area where you want to relocate to.  Our agents can help you move into any home you choose!  Call us today to get started.

COLLEGE STATION (Real Estate Center) – There are seven reasons
business owners do not want to hire right now, according to Real Estate Center
Chief Economist Dr. Mark Dotzour writing in today’s REC
blog.

• Complete
  uncertainty regarding the future cost of health care for business owners
• Two
  thousand pages of bank regulation that has yet to be enacted
• Regulation
  of health care and health insurance
• Regulation
  of off-shore oil drilling
• Regulation
  of oil-shale deposits
• Complete
  uncertainty about future income tax rates
• Complete
  uncertainty about future capital gains tax rates

“When business owners are unsure about their future, what do they do?
Nothing,” writes Dotzour. “They just try to survive until the storm
is over.

“They also hoard cash, like almost $2 trillion at this point. Our
economy is not going to recover until businessmen and women regain confidence
in the future opportunities in our country.”

A bill that further tightens state and local governments’ ability to invoke eminent domain was signed into law June 1. Here are some of the ways it better protects property owners:

• It requires government entities to make reasonable purchase offers to landowners for their property.
• It allows property owners to buy back their land at the original price 10 years later if it hasn’t been used by then.
• It adds criteria that agencies must meet before declaring eminent domain over private property.

The Texas Association of REALTORS® spearheaded this reform in its longstanding efforts to protect private-property rights.

On Thursday, October 21st I attended my first Realtor H-Town Day at the Omni Hotel in Houston where the Realtor community gathered to learn about the direction of our city. We heard from many fabulous guest speakers about the past, present, and future of Houston. H-Town Day gives Realtors a sense of the basic history in our community, the type of growth Houston is expecting in the near future and how that will impact real estate, and we examine the various areas of Houston and what it entails. Currently, we have 92 Consulates, 22 Foreign Banks, and over one fifth of our residents are foreign born. We have over 3,000 international companies, and over $167 Billion in trade. Our diverse city has over 86,300 engineers and over 31,000 employed in the chemical field. Presently, Bush Intercontinental Airport is the 8th biggest airport for passengers (48.5 MM in 2009.) It is the 11th biggest international hub for air cargo. It currently has 11 international carriers and 10 domestic carriers. Our city of Houston covers 600 square miles and it is a wonderful place to live.

Our first speaker was Olga Rodriguez, the Vice President of Economic Analysis for the Port of Houston. The Port of Houston is the largest shallow ship channel with 9 foot average depth and 52 miles from Houston to the Gulf of Mexico. It could be considered Houston’s largest asset, requiring constant maintenance by the Corp of Engineers. The Port of Houston offers service between Houston and over 1,000 other world ports. We have the largest petrochemical complex in the world. The port has 220 million tons of cargo passing through. The Port of Houston has 150,000 barges, 7,700 ship calls per year, and it’s the 7th largest U.S. container port. It offers 785,000 jobs related to ship channel activity. It generates $3.7 Billion in state and local taxes and $118 Billion in economic impact. The net operating income is up 42% and net income up 172%. Exports now exceed imports and sixty five percent of all major project cargo comes through Houston. The Port of Houston is an expert at moving cargo as large as a two story home. Since 1914 the port has been a powerful engine propelling growth in Houston and the port continues to improve. Six hundred twenty five million dollars in capital improvement is planned for 2010 and 2011. In 2009 there was $200MM in capital improvement projects under way. The port currently handles 70% of all the containers in the U.S. Gulf.

How does all this affect the housing market in Houston? They are projecting a population growth from 2030 to 2040 in the Houston area due to the port growth. Currently, 75% of cargo moves by truck, but expanded trade will come when rising fuel costs push more cargo to rail. They are currently exploring opportunities for freight rail corridors. As the port grows, Houston will grow. We have the room to grow in our area with land available in and around the city limits. The port is always looking for new opportunities to propel our city forward. Current exploration is being done for a freight rail district, adding another port in Galveston on Pelican Island, and pursuing cruise line opportunities. Another growth indicator for the Houston Port, and ultimately the city, is the completion of the Panama Canal expansion in 2014. Trade with Asia continues to increase and has been the fastest growing cargo for the last 10 years.

Our second speaker was Dr. Richard Wainerdi, the CEO and COO of the Texas Medical Center. He spoke about Monroe D. Anderson and the foundation that began what we know to be the world’s leading cancer center, M.D. Anderson. It is the largest and best cancer center in the world. Also part of the Texas Medical Center is Texas Children’s Hospital (largest pediatric hospital in the world where no child is turned away) and Balyor Medical Center. Today Texas Medical Center is a complex with 49 centers with 105,000 people working there. It is a city of health. When measured in square footage it is currently the 12th largest down town in the U.S. There are 22 buildings under construction and it will become the 8th largest downtown in the U.S. after completion. Houston’s healthcare is a booming business with about 95,000 employees. Healthcare added 19,700 jobs during the 2009 depression. The medical center is located on 14,000 acre and uses as much power as downtown Houston as a whole. It is located in the South Main Area along with Rice University, Reliant Stadium, 3rd Ward, Texas Southern, and University of Houston, where there are museums, Herman Park, and nice affordable housing.
Shifting gears, Dr. Wainerdi spoke about the future of healthcare now that we are facing Obamacare. In the future, less money will be coming to the providers, $100 Billion will be charged to providers, and medical practice will change. We don’t know exactly what will and won’t be covered. There are not enough doctors to go around under this new plan.

The positive news is that the new healthcare bill does increase the support for research and education and preventative medicine. Dr. Wainerdi stated that one third of the people come to the Medical Center due to self inflicting illnesses and we can get rid of this cost (examples are violence, cancers from smoking, liver damage due to drinking, not wearing seat belts, etc.) In order to prevent these self inflicting illnesses, we need more positive behavior in our society like arts, sports, space exploration, and military endurance. He made no doubt that over the next five years we will be finding a new way for our health care system.

We heard from Courtney Tardy, Director of Historic Neighborhood Resources at Greater Houston Preservation Alliance on City Preservation. She touched on the Historic Preservation Ordinance that has been a huge issue in Houston over the past few months.

During lunch Congressman Al Green spoke briefly to the Realtor Community.

After lunch we learned about city development with Beth Wolff, GHP Board Member and member of the City of Houston’s Planning Commission.

You cannot study Houston without learning about the Energy Corridor. Andy Hendricks, President of Schlumberger Drilling and Measurements spoke about the Energy Corridor. The energy corridor runs from Interstate 10 and West Houston to Downtown to Katy. Over thirty percent of U.S. jobs are in oil and gas extraction. Over thirteen percent of the U.S. jobs are in oil field services and wind energy.

Dan Bellow, the Immediate Past Chairman of the GHP and Chairman of Opportunity Houston also spoke to us. Houston is definitely not a one economy city. We have electronics, technology, engineering, software development, healthcare, oil and gas, chemicals, and much more.
We got a county update from Harris County’s Judge Ed Emmett. Houston is the third largest city in the U.S. with many constituents. He discussed that there are city finances to attend to, the jail which is the largest mental health center in Houston, Houston City Hospital System, Joint Processing System, and much more.

Overall, the day was filled with a wealth of information from speakers with diverse backgrounds that help Realtors understand where we are today, where Houston is coming from, and where Houston is going in the future. Bottom line is this – Houston is a great place to live, work, retire, and grow up. Houston offers something for everyone. There’s no depression here!

NEW YORK (CNNMoney.com) – March pending home sales increased from February numbers and from March 2008, indicating that buyers think now is a good time to buy a house.

The Pending Home Sales Index from the National Association of Realtors (NAR) showed a 3.2 percent gain to 84.6 from February, when it was 82. The index stands 1.6 percent higher than a year ago.

The index is understood to be a forward indicator of home sales trends as it measures contracts signed, not completed sales. The uptick may indicate that home prices have fallen low enough for buyers to get off the fence.

“If inventory goes down — it’s at just under ten months now — to below eight months, that would mean we’re on the way to a sustainable recovery,” said Lawrence Yun, NAR’s chief economist.

Anecdotal evidence indicates that trend may be happening. Realtors and other industry insiders are seeing rising open house attendance and multiple bids on some particularly desirable properties.

Today, buyers are more likely to bid because they perceive the market as at or near its bottom. An April Gallup Poll reported that 71 percent of Americans thought it was a good time to buy a house.

The South saw the largest gain of any region, with pending home sales jumping 8.5 percent from February to March. Pending sales were 7.7 percent higher in March compared with the same month a year ago.

I have a facebook page that I am keeping updated.  If you would like to link into me just add me as a friend on your facebook page.  I don’t add other Realtors, except the ones I know.  But I accept most people that link to me.  Just more places you can find me online!

Right now, many people are renting instead of buying because of the recent credit crunch. Since interest rates are so low, some people are even choosing to buy a new house and rent their old one until the market gets better for selling. If you would like help listing your home as a rental or if you are looking for a rental property, I can help you find what you need. If you need help finding a place to rent I charge half a month’s rent for my commission. If you see a For Sale by Owner Home, you can still use your own Realtor to show you the property. It can be very uncomfortable touring someone’s home with the owner standing over you. Not to mention it isn’t safe knocking on someone’s door and entering a stranger’s home alone. I can show you the property and gather information on comparable houses in the area to make sure you offer what the property is worth, not what the homeowner wants it to be worth. I am the Spring area specialist. Out of 415 Realtors in the area, I am the only one with an exclusive market snapshot offered for the 77373 area. As your real estate professional, I can help you with all of your Real Estate needs.