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Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

Gaining Legal Access to Landlocked Tracts

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There are few things more frustrating than discovering there is no access recorded to property that you own or want to own. Landlocked property is property which is locked, i.e. it is surrounded by property and is only accessible via the property surrounding it. Landlocked properties can be found everywhere. It’s important to gain legal access for both convenience and legal purposes.

Landlocked properties can be due to a variety of reasons. But when this happens, you’re left wondering: How can I gain access?

Contrary to popular belief there is no automatic right of access. Fortunately, there are a number of methods to consider in obtaining legal access to landlocked property. Pat Porter, owner and broker at RecLand Realty, shares how he obtained legal access from the neighboring landowner to a 40-acre tract he purchased about a year ago.

Click HERE to learn more!

Original Blog: https://www.landthink.com/gaining-legal-access-to-landlocked-tracts/

5 Signs of a Home Improvement Scam

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A new study shows that one in ten owners have been scammed by contractors. Here are some reasons why you should use your list of reputable contractors to help your clients.

As home improvement demand remains strong for kitchen and bath remodels, as well as for outdoor renovations, reports of contractor scams are rising. These schemes could cost homeowners thousands of dollars.

About one in 10 Americans have been a victim of a contractor scam, losing an average of $2,426, according to a new study of about 1,000 Americans from JW Surety Bonds. The study revealed the following contractor scams as being the most common:

The survey found that baby boomers were the most likely to be scammed by contractors (15%). This is followed by millennials (13%)

Red Flags to Watch

The study identified five indicators that could alert consumers to a scam:

  1. The contractor did not complete the work or did a poor quality job and did not meet agreed standards (63%).
  2. The contractor often arrived late or missed an appointment without a valid excuse (40%).
  3. They added additional charges or fees which were not discussed in advance (26%).
  4. They refused to respond to questions or were evasive when asked about progress updates (25%).
  5. They did not provide a written contract or provided a vague contract that was lacking in specifics about the job or cost (13%).

Maddie Weirman, a spokesperson for JW Surety Bonds, a nationwide provider, offers some of the following tips to avoid contractor scams:

  • Make sure the contractor has insurance and is licensed. Hiring contractors who are licensed, bonded and insured can provide homeowners with extra security. Surety bonds protect them against contractor scams.
  • Get everything in writing, and review the contract carefully. “Make sure that this contract includes the contractor’s name and information and when the project is projected to start and end,” Weirman says.
  • Never pay for the entire amount upfront. A deposit is common but Weirman advises homeowners to wait until the project has been completed to their satisfaction before paying the full agreed-upon amount.

Original Blog: https://www.nar.realtor/magazine/real-estate-news/sales-marketing/5-signs-of-a-home-improvement-scam?utm_term=23EF8E9A-359A-444F-9FB8-E57C0EFE2ABA&utm_campaign=3BFA9068-DFBC-477B-BC94-C168B9A999F1&nwsltr=navnar&utm_content=E07DCD88-9487-4560-A98C-D61CA4615020

How to Buy Your First Rental Property: A Step-by-Step Guide for First-Time Investor

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Welcome to the exciting world real estate investing!

When done correctly, it can be a rewarding and challenging journey that promises a financial future. If you’re wondering what makes rental properties a good investment, I’ll tell you that there are many reasons.

Rental properties are tangible assets that you can touch, see, and feel.

They are a reliable source of income that is relatively immune to the wild swings in the stock market. Not to mention that they are a great hedge against inflation.

You can also leverage your investment by buying more properties. Rental properties can be a golden goose that lays a steady stream other golden eggs, if you manage your portfolio and take calculated risk.

In the sections below, we’ll get down to the nitty gritty of buying your very first rental property. We’ll guide you through the process of buying your first rental property, from understanding the basics to setting up your investment goals.

Understanding Real Estate Investment

Real estate investing, and specifically renting out property, is a thrilling adventure.

Renting out a property involves purchasing a home, usually with borrowed money, and renting it to tenants. Rent is paid by tenants to cover mortgage, taxes and maintenance costs. Any remaining rent becomes your income. Renting out your property has many benefits.

It provides a steady flow of cash. This predictable income is usually higher than dividend yields on stock investments.

Second, rental properties appreciate with time. You’ll benefit from capital growth as the value of your property increases. Let’s not forget about the tax benefits such as deducting depreciation and interest costs.

Click here to read more.

Set Your Investment Goals

Setting clear investment goals before purchasing property is important. Are you looking to rent a property for a short time in order to generate quick cash? Are you aiming for long-term growth or wealth accumulation? These goals will have a significant impact on your investment strategy.

Understanding the potential returns of cash flow and appreciation are critical.

Cash flow is the monthly income that you will receive from your rental property once all expenses have been paid. Appreciation is the increase in value of the property over time. Both can be important to a successful strategy for real estate investing. So, consider how they fit with your financial goals.

Get Your finances in order

Renting out a property requires a substantial financial commitment. Budgeting is important, as you need to consider all possible costs, such as:

  • Down Payment
  • You can also find out more about Mortgages
  • Property Taxes
  • Insurance
  • Maintenance
  • Unexpected Repairs
  • And Many More!
  • A good credit score is also essential for securing favorable terms on a loan. Good credit is also vital for securing favorable loan terms. The higher your credit score, the lower your interest rates will typically be. Start working on your credit score now if you need to improve it.

Another important aspect is the down payment. Most lenders require 20-25% for investment properties. However, this can vary. Save early to reduce the initial investment hurdle. Federal Housing Authority loans with low down payments are also available.

Decide on your ideal rental property

There are many types of rental property, including:

  • Single-Family
  • Multi-Family
  • Commercial Property
  • There are many more…

Multi-family and commercial properties may yield higher returns, but require more experience and capital.

When evaluating a rental property, you should consider the location (proximity of schools, amenities, etc. ), condition (does it need renovations? The location (proximity to schools, amenities, etc. ), the condition (does this property need renovations? Rentable income and condition are also important factors. Do your research to ensure that the investment will help you achieve your financial goals.

Local Real Estate Market Understanding

Knowledge of the local market is essential for successful real estate investment. Research the local market to learn about average rents, occupancy rate, future development plans, and local economy.

The key market indicators are the average rents and property prices, the local economy, and the employment rates. These indicators can help you choose a market that has solid rental potential.

Assembling Your Real Estate Team

You don’t need to do it alone! Putting together a team of professionals you can trust will make your journey to invest in rental properties easier. Real estate agents are able to help you find properties. Attorneys can ensure that the legal requirements are met, and accountants can handle the financial aspects.

If you don’t wish to manage your rental property on a daily basis, a property manager and a contractor who can provide reliable maintenance are essential. Real estate investing is a sport that requires a team effort! You can also use tools such as a Property Management Software in order to manage your property, screen tenants, collect rent and perform other important tasks.

Find and analyze potential rental properties

It’s like being a detective when you’re looking for potential properties. You’ll be scouring property websites online, contacting real estate agents and even taking part in auctions. Don’t hesitate to try them all!

Once you have a few properties in mind, it’s time to get down to the numbers. You’ll be calculating things like potential cash flow, ROI (return on investment) and capitalization rate. These calculations will help you determine if buying a property is the right move for your financial goals.

Get Financing for Your Rental Property

There are many types of real estate loans available, including:

  • Conventional mortgages
  • Federal Housing Administration (FHA) loans
  • … and other options, such as bridge loans or hard-money loans.
  • Consult a financial advisor or a mortgage broker to determine the best option for your situation.

The process for applying for a home loan includes getting pre-approved, filling out a loan application and undergoing an appraisal of the property. Finally, you close the loan. This process can last several weeks. Patience is the key!

Make an offer and close the deal

Once you’ve found an attractive rental property, the time has come to make an offer. Negotiate price and terms with seller, usually with the help of real estate agent.

The closing process is a final step to buying your rental property. The closing process includes finalizing your mortgage, paying the closing costs, and signing paperwork. Once you’re done, your keys are yours.

Manage your rental property

You’ve got several tasks to complete when it comes time to manage a rental property. Think about collecting rent, resolving tenant issues, and keeping track of property repairs. You can do it yourself, or you can hire a property manager to take over.

What ever you choose, one thing is certain: You must keep your tenants satisfied. Happy tenants tend to stay, which means you spend less time worrying about an unoccupied property and get a steady stream of rental income.

Remember that investing in rental properties isn’t only about bricks and concrete; it’s about people. Keep things friendly with your tenant. They are a key part of your investment story.

Bottom Line

For any real estate questions or information please contact us today!

Original Blog: https://realtytimes.com/headlines/item/1047396-how-to-buy-your-first-rental-property-a-step-by-step-guide-for-first-time-investor?rtmpage=null

Just Listed! Ranch Land in Carbon, Texas

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This country house has 4 bedrooms, 3 baths, a 2-car attached garage, and ample storage in the kitchen, utility, and storage rooms. The master bedroom of the fourth bedroom features a private bathroom as well as a walkout to a 19×11 screened porch. The 69.5 acres of land are fenced and cross-fenced. There is plenty of space for horses, cattle, and hay production. A workshop, a barn with working pen and a loafing shed are also included. Also included are two HVAC systems, hot water heaters and a purification unit. Two wells, one of which is suitable for irrigation, and two septic tanks are included. You will find deer, turkeys, hogs and even doves on the property.

New Listing! 210 Hwy 1027 in Carbon, Texas

Why Fall Is the Best Time for Planting

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Plating in the fall can have some major benefits for your garden. Fall is the perfect time to start a garden and plant.  In fact, marketing ploys aside, fall is the best time for planting and starting a garden!

Here are some reasons fall is the ideal time to plant perennials, shrubs and trees in your garden.

The weather is perfect for planting

Fall is cooler, which makes it easier on both the plants and gardeners. The weather is not too hot or too cold, and neither is the ground semi-frozen nor too dry. Plants won’t suffer stress because they won’t be exposed to extremes of weather. They can therefore recover quicker after planting.

Plants don’t have to be planted immediately after purchase

Planting later is better because the soil won’t be too hot or dry. It’s better to plant trees after they lose their leaves, so they can concentrate on growing roots and not spend energy growing leaves. The biggest benefit of planting in the fall is that it helps the plant to grow stronger roots, so they can have the energy and beauty for spring. It is much quicker to transition from fall to spring than to wait a whole year to see your hard work.

Reduced Maintenance Effort

This will reduce your maintenance efforts. The milder temperatures will allow you to avoid worrying about new plants, and whether they’ll survive.

Watering the plants in pots before transporting them to their new home is a good tip to help you plant in the fall. Soak up the water so they are better prepared to plant. Before planting, water the hole in which they will be placed.

You can see where to plant the best

You can see areas in your garden where you need to plant more. This is the perfect time to start planning your garden for next year and begin planting. When the plants have foliage and flowers, you’ll be able to see how they look and how much room they require. This will allow you to add color in areas that you feel need it.

Bargains in Gardening Supplies

In spring, gardening supplies can be expensive. However, they are usually cheaper in the fall. Some shops close for the winter in the fall. In the fall, you can buy non-perishables, seeds and bulbs. Gardening tools, fertilizers, pebbles and other items may be available at a discount. Also, keep an eye out for pots on sale!

Original Blog: https://realtytimes.com/consumeradvice/homeownersadvice/item/1032472-why-fall-is-the-best-time-for-planting?rtmpage=

Should you wait it out if you can’t find a house you like in your price range?

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Buying a house is a huge step in life. When looking for a house within a specific price range, it can be challenging to find the perfect fit right away. However, whether or not you should wait it out depends on your individual circumstances and priorities. Here are a few factors to consider when making this decision:

Urgency: Determine how urgently you need to move into a new house. If you have a pressing need to relocate due to work, family, or other reasons, waiting indefinitely may not be feasible. As with any decision, time is always a factor. Whether buying a house or selling, urgency will limit your options. If you have the luxury of time you can be patient and wait for something that best suits your needs.

Budget: Assess your budget and financial situation. Consider if you can comfortably afford to wait for an extended period without compromising your financial stability or if you’re facing time constraints, such as rising interest rates or changing housing market conditions. The fact is there is never a perfect time to buy a house. Never a perfect time to get married…have a kid, etc. Again, like many decisions in life it comes down to the numbers. It doesn’t matter the price, the interest rate or the cost of insurance. What matters is when you throw all of that into the pot, does your budget allow it.

Market conditions: Research the current real estate market in your area. If the market is competitive with limited inventory and high demand, waiting for your ideal house may take longer. On the other hand, if it’s a buyer’s market with more options available, you may have more flexibility to wait for a better fit. This is a byproduct of the first two factors we discussed. Same thing, there is never a perfect time to enter the market. If you know your price range and truly have a goal to buy a house, be disciplined but be aggressive!

Flexibility: Consider if you have the flexibility to adjust your expectations or broaden your search criteria. Sometimes, expanding your search to different neighborhoods or considering alternative property types (e.g., condos, townhouses) can provide more options within your price range.

Compromises: Determine how important it is to find a house that meets all your desired criteria. If certain features or amenities can be added or renovated later, you might consider compromising on some aspects to find a suitable home within your budget.

Time frame: Assess how long you have been searching and how much time and effort you are willing to invest in finding the right house. It’s essential to find a balance between waiting for the right opportunity and avoiding an excessively prolonged search that could lead to frustration and fatigue. Make sure you don’t fall into the trap of paralysis of analysis. Does your perfect house really exist? There is always something you can find wrong with a house.

Ultimately, the decision to wait it out or explore other options depends on your personal circumstances and priorities. Consider consulting with a real estate agent who can provide guidance based on your specific situation and local market conditions. Good luck!

Preferred Properties of Texas is here to help you find the right property to fit your needs. Gives us a call today!

Original Blog: https://realtytimes.com/headlines/item/1047288-should-you-wait-it-out-if-you-can-t-find-a-house-you-like-in-your-price-range?rtmpage=null

Preferred Properties of Texas

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