West DFW REI Group

The "Watering Hole" for North Texas Real Estate Investors!

 

 

West DFW REI Group


The Basics Of An Investor Wholesaling Agreement in Dallas Fort Worth

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Wholesaling

A wholesale agreement for properties in Dallas-Fort Worth will be important to you as an investor, so make sure you grasp and understand everything about it. Learn more about the process and what to expect in our most recent post!

When two real estate investors/ wholesalers come together to find a distressed property at a low price, a real estate wholesaler agreement or a wholesale real estate contract will be required. The wholesaler enters into a contract with the seller to purchase the property, and then transfers or assigns ownership of the contract to the buyer. In essence, the wholesaler acts as a go-between between the seller and the new buyer, bringing together two people who might not otherwise have come into contact.

Contract Basics

There are many types of investor contracts available in today's investing world.  Some people use a real estate attorney to draft and evaluate for you to ensure that all terms and clauses are legally sound and make sense for all parties involved in the transaction. Many investors use their State-created contracts.  In Texas, we use the TREC 1 to 4 family contract.  Even though numerous templates are available online, you should always have your attorney review your final draft. The contract will normally include the specifics of the property as well as the terms and conditions of payment. Everyone's roles will be clearly defined to ensure that there are no misunderstandings. The TREC contracts are uploaded ... Read More…


Self Directed IRA’s For Real Estate – What Are the Rules in Dallas-Fort Worth?

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 self direct ira
A self-directed IRA can be a great investment vehicle, even for real estate! Before you buy your next Dallas-Fort Worth investment property, read this article first!

Most of the questions surround buying investment properties in Dallas-Fort Worth, Texas. Which we, of course, know a lot about. The biggest question about buying an investment property or rental property is how will you pay for it and can you use your IRA to buy local investment properties?

Self-Directed IRAs for Real Estate – Can You Use Them to Buy Dallas-Fort Worth Rental Properties?

First off, IRA refers to an individual retirement account. Individual retirement accounts (IRAs) are tax-advantaged retirement savings accounts that people can utilize to save and invest for the future.

IRAs traditionally hold investments like stocks, mutual funds, bonds, etc., mainly because that’s the mainstream way most people save for retirement.

However, after reading this article, you will see that real estate can be a fantastic way to increase your wealth. So, how can you use your IRA to increase your retirement account funds while still taking advantage of the IRA's tax advantages and the advantages of the Dallas-Fort Worth real estate?

Although self-directed IRA real estate is becoming more popular, you should take some precautions to guarantee that the law is followed to the letter when using your IRA to invest in local Texas real estate.

Some simple Self-Directed IRA (SDIRA) rules for real estate to follow ar ... Read More…


Components of a Good Business Card

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A business card is not a memoir or biography of you. No one cares how great you are, how long you’ve been in business, your great service, and empty promises, no one believes anyway.

For any of your advertising to be successful, it must answer one very important question in the mind of the reader…

WIIFM?

What is in it for me?

In other words, who cares?

If it doesn’t answer this question, your cards are almost worthless. You have a nanosecond to capture the prospect's attention, and if you fail the cards will hit the trash as soon as you leave.

Fancy graphics, your photo, and any words that don’t contribute to answering WIIFM is a waste of space.

There is only one purpose of a card, sign, letter, ad, or most any other media. It’s not to sell anything… It’s to get the phone to ring.

Here are some common mistakes I see at every Quick Start School when I critique cards:

Don’t answer WIIFM: Leaving no reason to call. Many cards are worded so poorly you can’t tell what business they’re in, much less have a reason to call.

Too hard to read: Caused by a poor card design, with the wrong font, poor color choices, or small print. All fatal flaws.

No Headline: Which is a unique selling proposition, USP, answering WIIFM. An example is … “I BUY HOUSES.” This header is the grabber that stops the eyeball. Your name is not a headline. No one cares.

Using Company Name: It wo ... Read More…


What's Stopping You From Getting Started?

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What’s stopping you from getting started may be the question you’ve asked yourself for quite a while now. Because this is a simple topic to address, I'm going to keep this post brief today. It cannot be easy to put into practice at times, but the remedy is straightforward.

Here's the million-dollar question: 

"What can I do to overcome my apprehension and procrastination and get started"?

--Get rid of your excuses and your mile-long to-do list.

This week, I've heard more excuses from people who can't seem to get started in real estate investing than I have in a long time. They must wait until the stars are "perfectly aligned" before they can begin. You know, reasons like these:

  • I don't know where to start
  • I haven't chosen a logo yet.
  • I have to make a decision on whether or not to form a limited liability company (LLC).
  • I need to decide whether to use a yellow or green postcard.
  • I don't have a suitable image to utilize in my marketing materials.
  • I'm undecided on whether to use white or colored envelopes for my mailings.
  • I'm not sure where my buy-and-hold approach should be focused.
  • I'll get started as soon as I figure out if I'll just use my name or have a corporation named after myself.
  • I have another course I must complete, and then I will be ready
  • I don't have all my I's dotted and T's crossed
  • I don't know this, and I don't remember that.

And the list goes on forever! I'm pretty sure there are at least a dozen more of these reas ... Read More…


Should I list my home? Or sell to an investor?

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What types homes can be traditionally listed? (Yes, we can list your home also!)
The home must be in good condition and met general safety items on inspection report with no major repairs needed, but some cosmetic issues are ok. If major issues or repairs are noted on inspection, buyer usually requests repairs for seller to do before closing. Most lenders will NOT lend on home with major repairs needed. This is why many investors buy these homes.

What needs to be done before listing? 
At minimum the home needs a good cleaning inside and out, yard landscaped and clutter removed. Some staging is advised for best marketing for photos. Any painting or carpet cleaning needed should  be done prior to photos. Homeowners need to start packing clutter and personal items away before marketing photos done. All repairs finished before photos and showings. This step can take 1 week to many months!

How long before you get your money? Traditional sales usually take minimum of 45 days. It depends how fast you can get the home ready, decluttered and staged (see above). Then, add time for photos and listing prepared (usually few days). Once listing is active, showings can take few days to weeks before you get an offer. Once you have an offer, generally a contract takes additional 30-60 days before closing and getting your money.

What else? You will have to keep home clean and presentable during showings. You will need to leave the home during showings, taking kids, removing pets or securi ... Read More…

Real Estate Investing in Dallas: Why and Where to Invest

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Real Estate Investing in Dallas: Why and Where to Invest

Thinking of dipping your toes in Dallas's real estate market? If so, then that'll probably be among the best decisions you'll make this year. 

As the fourth largest metro in the country and an economic hub for the Dallas-Fort Worth Metropolitan, Dallas has been experiencing unprecedented growth in recent years, a trend projected to continue even in the coming years. 

It is among the country's fastest-growing cities, and a significant business hub for small, medium, and large enterprises. But just before you dive in, here's what you should know about investing in real estate in Dallas. 

6 Reasons Dallas is a Good Place to Invest in Real Estate

As a real estate investor, you want to invest in a market that will lead to both improved cash flow and high returns on your investment. The good news is that Dallas fits this bill. Here's why.

1. Steady Population Growth

Nothing fuels a real estate market's development like population growth. As one of the largest in-land metropolitan areas in the country, Dallas attracts a diverse population with each wake. As of writing, the city is home to over 1.3 million people, and closer to 6.3 million people if you consider the entire DFW metroplex.  The city of Dallas reportedly attracts approximately 150,000 new residents annually.

It is among the country's most densely populated and also fastest-growing cities. This makes Dallas o ... Read More…


Getting Started in Real Estate Investing

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Diversity of Real Estate Investing

real estate investing

7 Feb 2021
Real Estate Investment | Longhorn Investments

If you own your home, your home equity may be your biggest asset. However, few people consider home equity an investment asset because it does not produce income. Rather, its value comes as collateral on a home equity loan, home equity line of credit, or mortgage and it can only be monetized by selling the home. To generate income from real estate, you need to be involved in real estate investing.

The housing bubble of 2008 disabused investors of the notion that real estate will always appreciate in value. On the contrary, real estate is subject to the same market forces as any other asset. However, real estate has a few attributes that make it uniquely suited to any investment portfolio – land is in limited supply, location determines value, real estate lasts forever, and the property has multiple uses besides investment. Because of the uniqueness of real estate as an asset, real estate investing can be attractive as a side gig or as a full-time job. Here are some considerations for getting started in real estate investing.

Diversity of Real Estate Investing
Reality television programs popularized the idea of house flipping. While house-flipping is a form of real estate investing, it is not the only way to invest in real estate. Rather, real estate investments come in many different forms. Choosing the right one for you depends on your assets, the time and effort you can devote to ... Read More…


TREC 1 to 4 FAMILY CONTRACT UPDATES: OPTION MONEY

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 Magnolia Title
Starting February 1, 2021, Texas Real Estate Agents have the option, but not the requirement, to use the new TREC 20-15 1-4 Family Residential Contract (Resale), which contains new provisions for the Title Insurance Agent to receipt and disburse the Option Fee.  This contract form becomes mandatory for use by all Texas Real Estate Agents after April 1, 2021.

Changes from the prior 20-14 form contained in the new 20-15 contract form include –

      Deleting paragraph 23 dealing with the Option Fee and combining Option Fee provisions into paragraph 5 with the Earnest Money Provisions.

      Both the Option Fee and the Earnest Money are to be delivered to the Title Insurance Agent, referred to as escrow agent in the Contract form.

      The Option Fee and Earnest Money can be delivered in a single check, rather than in separate checks as required previously.

      The new Contract form now provides for a separate receipt of the Option Fee and the Earnest Money, with the receipt of the Option Fee being subtly changed from being signed by the Seller’s Broker to requiring the signature of the escrow agent. Make sure you receive both.

    Under paragraph 5.A(3), “The amount(s) escrow agent receives under this paragraph shall be applied first to the Option Fee then to earnest money, and then to the additional earnest money.”

For ... Read More…


Must-Know Tax Tips For Real Estate Investors in North Texas

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Must-Know Tax Tips For Real Estate Investors in North Texas

Here are a few must-know tax tips for real estate investors in Dallas, Fort Worth. Taxation on income is a given, by making the right moves, you can lessen the impact to your bottom line. Using tax laws to your advantage can maximize the returns that you will realize on your investments. 

Planning

Prior proper planning prevents xxxx poor performance, most especially when it comes to organizing your real estate investment business. As a real estate investor, you will want to seek out a real estate investment experienced Certified Public Accountant (CPA), through recommendations from other investors in the West DFW REI Group if possible. You will want to select a CPA with experience in this sector of the market that can offer guidance and recommendations which places you in a position of optimizing your tax deductions for your real estate holdings in Dallas Fort Worth. You should plan to work closely with your CPA, to create a plan that is specific to meeting the needs of your circumstances and business model.

Write-Offs

Every decision you make with your real estate investing business should consider what you can write-off, especially when your goal is to take full advantage of any tax tips for real estate investors in Dallas, Fort Worth. Depreciation, the amount of value the property losses due to wear and tear over time, can be deducted as well. There is a specific formula used for residentia ... Read More…


Evaluating A Real Estate Investment Deal

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 Evaluating A Real Estate Investment Deal

We talk with many people looking to buy real estate investment properties in Dallas Fort Worth and the surrounding areas. Some of them know what they're doing when evaluating a real estate investment deal, and some are still in the learning process.

But, since our entire business is finding great deals at deep discounts... and often passing those deals onto real estate investors like you... I thought it would be a great idea to share with you some resources to evaluate a real estate investment deal.  This works in any market... Dallas Fort Worth and surrounding areas, Texas, and any other states across the country.

When you boil it down... evaluating a real estate deal is a pretty simple process.  If you're looking to buy real estate as an investment, wholesale properties, hold them for rent... whatever, one of the most important parts is "buying it right" (i.e., not overpaying).

So let's dive in.

What Goes Into Evaluating A Real Estate Investment Deal - (for single-family houses)

There are just a few main elements when you're evaluating a deal.

  • Cost of repairs needed to get it back up to good condition. The after-repair value (ARV) of the property (what it's worth and can sell for today once it's fixed up). If you're going to buy and hold for a rental... you need to know what you can rent it out for and what your "debt service" (mortgage payment) will be.  Knowing t ... Read More…