Decided to start video blogging my listings. This one here is gorgeous! Sits on nearly a .25 AC and has ample of parking in the front. Enjoy the open concept kitchen and all the amenities in the backyard. Perfect backyard for entertaining. If you or anyone you know is looking for a home in Mesquite have them contact me!
Bina Beechum | Realtor
Citiwide Alliance Realty
Sunday, August 13, 2017
Tuesday, November 5, 2013
Real Estate Investments for Keeps
Today I'm going to touch the tip of the iceberg and discuss a broad overview of investing in real estate. This blog will be followed by a series of other related topics to expand on the investment strategies behind renting single family residences.
There are two ways that I try to make money off of real estate: Holding and Flipping. Today I want to discuss holding. There are many types of properties you can invest in. Office, industrial, land, ground leases, retail, residential... It really just depends on what your risk tolerance is and how much money you have to play with.
For introductory purposes, lets discuss residential properties: Houses, town homes, condos, duplexes. My strategy is simple: Buy cheap, rent high. Of course these types of deals are hard to come by but that doesn't mean they don't exist. I once owned a property that I paid less than $35K for and made $950 a month off of it. Find me a stock that gives you that rate of return and I'll buy the whole lot!
I stay away from condos just because of HOA dues and CAM charges. I just don't care for never ending increases on dues. This doesn't mean that there aren't some great condos out there. Renting condos in the uptown/downtown area are great investments. You make your money's worth in rent and the dues are just minuscule thereafter. I'm super picky so duplexes also get overlooked by me because I like owning the whole shebang. I don't like to know if the neighbor's house burns down... well so does mine. Again, that doesn't mean they aren't great investments. You can find duplexes in the $30-50K range in areas of East Dallas and rent them out for the same amount of money you can lease a house ($950-$1100).
Things to look for when considering investment properties is property value and condition. Money comes very cheap these days with interest rates being at an all time low. This being said, some properties might be worth the premium if you are financing your investments. Just make sure they will appraise and sell for the same or more down the road. If you are paying cash, you definitely want to make sure you are getting the best deal possible. Take a look at what a property is worth on the appraisal website and what the property might have been bought for initially. This helps determine value along with comparable properties that have sold in the area in the past 6 months. If you have a Realtor helping you they can pull this up in the MLS.
When buying an investment property, inspections are not required but I strongly suggest them. You want to make sure you know all the properties deficiencies so you can determine the cost to remedy them. Just like a home you would consider living in, buying a property with foundation, plumbing, or electrical issues might not be worth it. These can get very costly and completely throw off your anticipated returns. Since the purpose of these properties is to hold them and rent them out you need to make sure they are fit for living in. Once it is rented, it is still your home. You are responsible for the repairs and upkeep of the property.
It isn't a wise decision to buy and hold property in your personal name. Form a business entity and invest under that. I prefer a Series LLC. I'm not a financial expert so please don't just go off of my word. Talk to an attorney, financial planner, and your CPA on the best strategies to invest. This is a very detailed conversation and a blog for another day as well.
Well hopefully this spikes some curiosity and gets you thinking about investing in real estate. Next time I'll talk about the actual rental process and how you can get your property leased. There is just so much to discuss about investing that it's hard to do it all in one post and keep someone's interest. It's more like writing a book!
Cheers!
For introductory purposes, lets discuss residential properties: Houses, town homes, condos, duplexes. My strategy is simple: Buy cheap, rent high. Of course these types of deals are hard to come by but that doesn't mean they don't exist. I once owned a property that I paid less than $35K for and made $950 a month off of it. Find me a stock that gives you that rate of return and I'll buy the whole lot!
I stay away from condos just because of HOA dues and CAM charges. I just don't care for never ending increases on dues. This doesn't mean that there aren't some great condos out there. Renting condos in the uptown/downtown area are great investments. You make your money's worth in rent and the dues are just minuscule thereafter. I'm super picky so duplexes also get overlooked by me because I like owning the whole shebang. I don't like to know if the neighbor's house burns down... well so does mine. Again, that doesn't mean they aren't great investments. You can find duplexes in the $30-50K range in areas of East Dallas and rent them out for the same amount of money you can lease a house ($950-$1100).
Things to look for when considering investment properties is property value and condition. Money comes very cheap these days with interest rates being at an all time low. This being said, some properties might be worth the premium if you are financing your investments. Just make sure they will appraise and sell for the same or more down the road. If you are paying cash, you definitely want to make sure you are getting the best deal possible. Take a look at what a property is worth on the appraisal website and what the property might have been bought for initially. This helps determine value along with comparable properties that have sold in the area in the past 6 months. If you have a Realtor helping you they can pull this up in the MLS.
When buying an investment property, inspections are not required but I strongly suggest them. You want to make sure you know all the properties deficiencies so you can determine the cost to remedy them. Just like a home you would consider living in, buying a property with foundation, plumbing, or electrical issues might not be worth it. These can get very costly and completely throw off your anticipated returns. Since the purpose of these properties is to hold them and rent them out you need to make sure they are fit for living in. Once it is rented, it is still your home. You are responsible for the repairs and upkeep of the property.
It isn't a wise decision to buy and hold property in your personal name. Form a business entity and invest under that. I prefer a Series LLC. I'm not a financial expert so please don't just go off of my word. Talk to an attorney, financial planner, and your CPA on the best strategies to invest. This is a very detailed conversation and a blog for another day as well.
Well hopefully this spikes some curiosity and gets you thinking about investing in real estate. Next time I'll talk about the actual rental process and how you can get your property leased. There is just so much to discuss about investing that it's hard to do it all in one post and keep someone's interest. It's more like writing a book!
Cheers!
Bina S Beechum
Monday, July 8, 2013
Getting Prepared to Sell
Are you thinking about selling your home? Well there are actually some steps you need to take before you put your home on the market. You can lose some serious buyers and serious money if you put a sign out in your yard before your home is ready.
Cheers!
- If you are thinking about selling your home you have to think about where you are going to live next. Have a general idea of the locations you want to move to and when you think you will be ready to make that step. This will help you in deciding when you should list your home for sale.
- Talk to a lender. See if you qualify for the type of home you are looking to buy and how much you have left to payoff on your current residence. This will paint you a clearer picture on what you should be looking at and if you should even be looking to move. You might not want to move if you can't break even or cash flow on your property.
- Interview a few agents to get an idea of what your home might sell for and find out what net amount you will walk away with. I like to provide a high end and low end estimate so you can see the best and worst case scenarios. It isn't always wise to list your home with the agent that gives you the highest price. Ask for some back up information. Look at their trends, ratios, etc. before choosing.
- It's time to put the gloves on and get to cleaning. You need to remember that you are trying to sell your house, not your lifestyle. Unclutter your home by putting away pictures, personal touches, toys, and so forth. You want the prospective buyers to be able to see how they will live in your home. If you have accent paints or rooms painted for your children, you might want to consider going neutral. Sure it is a small expense upfront but can make you so much more in the end. Do a gut check on your carpet and determine if you need it cleaned or replaced. Fixing your home so that it is aesthetically pleasing is key. The other repairs can be negotiated and done after a home inspection has been completed.
- As much as you might want to be home every time you have a showing, DON'T. Prospects like to talk about the home and discuss what they see. Being home makes it harder for them to focus on how they really feel about the home and puts too much of attention on you.
Cheers!
Bina S Beechum
Saturday, June 8, 2013
How it All Began Part 2
Time for an update on my first listing as a Realtor. You might recall I took on my former residence as my first listing. I figured this would be the best way for me to learn about the seller's market and marketing tactics that work. I'm happy to say it was off the market in less than 50 days. Not the number I was going for, but still glad it was under 60.
I had many emotional ups and downs during the time it was on the market and I learned a great deal of knowledge. First off, the neighborhood my home is in is very unique. As are all neighborhoods, so having an expert be able to inform you about the trends of the area is very important. After my initial study, I decided to price my home $5,000 more than I thought it was valued at. Reasoning behind this was the amazing seller's market we are experiencing. I thought, what the heck, why not try for it.
I didn't get the amount of calls I was expecting the first week it hit market so I decided to pull back to my original estimate. Now, this neighborhood is full of multiple price points. There have been some foreclosures, total renovations, partial renovations, and homes that still look like they were from the early 80s with no upgrades at all. Price points range from $130s - $310s. Yes, there could be a $130k home next to a $300k home and from the outside you would not be able to tell the difference.
I strongly felt my home fell in the middle. It is a 3,000 square foot, three bedroom home with three living areas and no pool. After numerous feedback calls I learned what I already knew AGAIN. People expected a 4 bedroom house or the possibility of a fourth bedroom when they see that kind of square footage. In this case, no living area could be converted to a bedroom. No way possible. If it could have been then I would have wrote that in the description. This was a 3 bedroom home and I was getting so irritated with all the agents bringing 4 bedroom buyers to see it. However, all agents told me that the home showed beautifully.
The second issue I faced was the number of homes in the neighborhood that had pools. I can't argue that pools add value to a home. How much value depends on the pool. I felt that my home was comparable to a 3 bedroom home with a pool that was not very upgraded. These homes were priced in the $220s and some below. If you have a smart agent they will advise their clients what to offer on a home based on comps in the area. If they did a market study of my neighborhood they would probably agree that my home was not going to sell for more than the upper $220s.
Lastly, I think the biggest hurdle I had to face was the surrounding area. The neighborhood is very well kept but it does have a number of apartments surrounding it and not everyone is impressed by that. Especially when they are older apartments from the 1970s.
I decided that I could probably make some good money just leasing the house again and try to sell it later. This way I wouldn't have to continue paying two mortgages. After the first 30 days the listing was active I decided to list it for lease as well. In the first day it was on the renters market I receive 4 interested lease parties I was like WOAH! I probably didn't list it high enough. I had also dropped the price of the home that weekend as well so I ended up having 5 showings in one day with a few scheduled for the next. This type of interest got me thinking maybe the price is finally right and I need to hold off on leasing it. I took the lease listing off the market temporarily and kept pursuing the sale.
I was really hopeful that one of the parties that came to the home was going to put an offer on it. I was wrong. I let the entire week go by and then decided to put the home back on the market for lease but for $100 more in rent. After doing so, I had two very strong applications submitted from potential renters within 24 hours. I ended up going with the renter that was interested in purchasing the home shortly after her lease commencement. This way I got the best of both worlds, extra cash flow for the next few months and the sale of my home at a price I accepted.
I guess everything always works out in the end but during the process it can definitely be difficult to see. Next time I'll go about telling you all the ways I learned to market a home and put it in my YouTube video as well.
Ciao!
I had many emotional ups and downs during the time it was on the market and I learned a great deal of knowledge. First off, the neighborhood my home is in is very unique. As are all neighborhoods, so having an expert be able to inform you about the trends of the area is very important. After my initial study, I decided to price my home $5,000 more than I thought it was valued at. Reasoning behind this was the amazing seller's market we are experiencing. I thought, what the heck, why not try for it.
I didn't get the amount of calls I was expecting the first week it hit market so I decided to pull back to my original estimate. Now, this neighborhood is full of multiple price points. There have been some foreclosures, total renovations, partial renovations, and homes that still look like they were from the early 80s with no upgrades at all. Price points range from $130s - $310s. Yes, there could be a $130k home next to a $300k home and from the outside you would not be able to tell the difference.
I strongly felt my home fell in the middle. It is a 3,000 square foot, three bedroom home with three living areas and no pool. After numerous feedback calls I learned what I already knew AGAIN. People expected a 4 bedroom house or the possibility of a fourth bedroom when they see that kind of square footage. In this case, no living area could be converted to a bedroom. No way possible. If it could have been then I would have wrote that in the description. This was a 3 bedroom home and I was getting so irritated with all the agents bringing 4 bedroom buyers to see it. However, all agents told me that the home showed beautifully.
The second issue I faced was the number of homes in the neighborhood that had pools. I can't argue that pools add value to a home. How much value depends on the pool. I felt that my home was comparable to a 3 bedroom home with a pool that was not very upgraded. These homes were priced in the $220s and some below. If you have a smart agent they will advise their clients what to offer on a home based on comps in the area. If they did a market study of my neighborhood they would probably agree that my home was not going to sell for more than the upper $220s.
Lastly, I think the biggest hurdle I had to face was the surrounding area. The neighborhood is very well kept but it does have a number of apartments surrounding it and not everyone is impressed by that. Especially when they are older apartments from the 1970s.
I decided that I could probably make some good money just leasing the house again and try to sell it later. This way I wouldn't have to continue paying two mortgages. After the first 30 days the listing was active I decided to list it for lease as well. In the first day it was on the renters market I receive 4 interested lease parties I was like WOAH! I probably didn't list it high enough. I had also dropped the price of the home that weekend as well so I ended up having 5 showings in one day with a few scheduled for the next. This type of interest got me thinking maybe the price is finally right and I need to hold off on leasing it. I took the lease listing off the market temporarily and kept pursuing the sale.
I was really hopeful that one of the parties that came to the home was going to put an offer on it. I was wrong. I let the entire week go by and then decided to put the home back on the market for lease but for $100 more in rent. After doing so, I had two very strong applications submitted from potential renters within 24 hours. I ended up going with the renter that was interested in purchasing the home shortly after her lease commencement. This way I got the best of both worlds, extra cash flow for the next few months and the sale of my home at a price I accepted.
I guess everything always works out in the end but during the process it can definitely be difficult to see. Next time I'll go about telling you all the ways I learned to market a home and put it in my YouTube video as well.
Ciao!
Bina S Beechum
Wednesday, May 15, 2013
Sellers Market: Tips for Multiple Offer Situations
Are you currently in a situation where everyone seems to want to buy the home you have your heart set on? Don't panic. This seller's market is causing a frenzy of multiple offer situations. Here are some tips to consider when put in a multiple offer situation.
1. Know your market. Ask your agent to show you what other homes in the area are selling for and how quickly they have sold. This will put things into perspective for you when making an offer.
2. Know your own wants and needs. It will be easier to face a multiple offer situation if you know what you want prior to submitting an offer. What is more important to you? Home price? Closing costs? Speed of closing?
3. Start Low. Don't start your search at your upper limit. This is a seller's market. If you find a home you love and there are many others that want it too, be the smart buyer and offer slightly more to secure your contract and still make appraisal. Leave enough wiggle room so that you are not throwing your budget. This seems to be harder for some than others.
4. Show Ability to Close. Submit offers with some credibility to make your offer more appealing. Sellers do not only care about the price, they want to know you can close. Attach proof of funds, approval letter, evidence of good credit, etc.
5. Know your Timing. It can get very costly if you need to be out of your current residence because your lease is expiring or you are being relocated and you have nothing finalized on a new home. Have a Plan B in case Plan A falls through.
You MUST realize this is not a buyer's market anymore. You do not have the negotiating power you did a year ago. How many homes will you let slip through your fingers before you make a realistic offer on a home? Be prepared to make full price offers! Get pre-approved before starting your home search. Learn about the neighborhood and the trends before the search so you are informed and prepared to make realistic offers.
Thursday, May 2, 2013
Real Estate with Bina's YouTube Debut!!!
Hey Everyone,
Check out my first YouTube video on some helpful tax tips to current home owners in Texas.
Check out my first YouTube video on some helpful tax tips to current home owners in Texas.
Full Blog on Homestead Exemptions to follow!
Texas Homestead Exemptions
So here is a breakdown of what homestead exemptions are and what benefits they provide to homeowners in Texas.
A homestead is considered a separate structure, condominium or a manufactured home located on owned or leased land, as long as the individual living in the home owns it. It can include up to 20 acres if the land is owned by the homeowner and used for a purpose related to the residential use of the homestead.
You can apply for an exemption on your principal residence. Homestead exemptions remove part of your home's value from taxation, so they lower your taxes!
Example: Your home is appraised at $100,000 and you qualify for a $15,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $85,000. Taxing units have the option to offer a separate exemption of up to 20 percent of the total value.
To qualify, a home must meet the definition of a residence homestead: The home's owner must be an individual, not a business entity or trust, etc. and use the home as his or her principal residence on January 1 of the tax year.
There are several types of exemptions you may receive:
School taxes: All residence homestead owners may receive a $15,000 homestead exemption from their home's value for school taxes.
County taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead owner may receive a $3,000 exemption for this tax. If the county grants an optional exemption for homeowners age 65 or older or disabled, the owners will receive only the local-option exemption.
Age 65 or older and disabled exemptions: Individuals 65 and older and/or disabled residence homestead owners may qualify for a $10,000 homestead exemption for school taxes, in addition to the $15,000 exemption for all homeowners. If the owner qualifies for both the $10,000 exemption for 65 and older homeowners and the $10,000 exemption for disabled homeowners, the owner must choose one or the other for school taxes. The owner cannot receive both exemptions.
Optional percentage exemptions: Any taxing unit-including a city, county, school, or special district-may offer an exemption of up to 20 percent of a home's value. But, no matter what the percentage is, the amount of an optional exemption cannot be less than $5,000. Each taxing unit decides if it will offer the exemption and at what percentage. This percentage exemption is added to any other home exemption for which an owner qualifies. The taxing unit must decide before July 1 of the tax year to offer this exemption.
Optional 65 or older or disabled exemptions: Any taxing unit may offer an additional exemption amount of at least $3,000 for taxpayers age 65 or older and/or disabled.
You may file for any homestead exemption up to one year after the delinquency date. The delinquency date is normally February 1st. If you are 65 or older or disabled, you qualify for the exemption on the date you become 65 or become disabled. To receive the exemption for that year, 65 or older or disabled homeowners must apply for the exemption no later than one year from the date you qualify or one year after the delinquency date, whichever is later. If you miss the deadline you may apply for the following year.
This is a ton of information on home exemptions. If you realize that you haven't filed for your exemption yet go to your county appraisal office and GET ON IT! You will have to fill out an application and bring your driver's license and vehicle registration receipt to prove that the home is your principle residence. A link to the exemption forms for the Dallas County Appraisal District is below:
If you are trying to file for a past exemption in Dallas county you can go to their main office at
Dallas Central Appraisal District
2949 N. Stemmons Frwy
Dallas, TX 75247
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