By Tom Branch, on May 31st, 2011 
I did an interview with Bonnie Petrie on KRLD Radio last week. It was an interesting conversation. She wanted to talk about the shift away from flipping homes to buying homes to use as income producing investments. We’ve been talking about this shift for the past several years yet the emphasis has remained on flipping houses.
Why the shift? The primary reason is the lack of “easy” money that once fueled the flipping engine. Investors were able to purchase properties, rehab them, and then get them back on the market. Buyers were able to take advantage of the “easy” money, securing a mortgage and becoming homeowners.
The lending market softened with mortgage meltdown. Underwriting guidelines tightened on both borrowers and the properties. This left fewer buyers able to purchase and lenders began asking lots of questions about why a property that sold for $100k two months ago is now worth $150k.
The conditions that have made flipping properties much harder are what make investing in income-producing properties the thing to do now.
Investors can purchase properties at a discount, rehab them, and then lease them to produce a steady stream of income. I find investors with cash have a much easier time of it but money is available. Investors need to be prepared to put 20 to 30 percent down and carry the costs of rehabbing the property.
Investors need to carefully select properties. Not only is initial price important, but the cost of rehabbing the property has a huge impact on the long-term capitalization rate. This is where working with a seasoned real estate professional and having a solid pool of trusted contractors is critical.
Property management has lots of pitfalls, so investors need to outsource the management of their properties or become very familiar with state and local laws.
Looking to invest in real estate in the Dallas area? Contact us!
Lease and Rental Homes in the DFW Metroplex
By Tom Branch, on May 30th, 2011 
I was out showing homes yesterday afternoon.
As we walked the outside of the home, I noted a trail of larger ants on the white stone wall. They were blazing a trail from the ground into the house where the stone transitions to siding.
Bad news! While I’m not a specialist, I’m almost certain these are carpenter ants.
Homeowners need to watch their foundations and the exterior walls of their homes. Trees and shrubs should not be allowed to touch the home as these give insects an easy and hard-to-detect path into the home.
According to Texas A&M:
Carpenter ants are social insects that make their colonies primarily in wood. They hollow out wood to build their nests, making their galleries and chambers velvety-smooth as if a carpenter had sanded the surfaces. Their tunneling in wood and foraging for food and water lead to their “pest” status in and around homes.
The presence of carpenter ants can mean that a building has problems that need attention, such as moisture, rotting wood or other conditions conducive to ant infestation. In Texas, there are at least 14 species of carpenter ants that destroy wood. Homeowners can minimize damage to their houses by learning how to identify the ants, knowing where to look for them, and understanding ways to prevent and control them.
Homeowners can treat carpenter ants themselves with residential insecticides purchased locally. Larger infestations may require professional treatment.
Pest Control Companies Serving the Dallas Suburbs
By Tom Branch, on May 20th, 2011 
I was out showing homes the other day to some out of state buyers. As they looked at homes, they would spot some hairline cracks in the sheetrock of some of the homes. They were concerned about potential foundation issues. Welcome to Texas!
North Texas is notorious for expansive clay soil. Why is this important? The foundations of our homes are built on top of this soil and this causes the foundations to move with changes in the water content of the soil. When the foundation moves, hairline cracks can appear in the sheetrock.
The key to minimizing the movement is to keep the soil around the foundation at a consistent moisture content. What does that mean? Water the lawn or add soaker hoses around the foundation. Dried up soil contracts and allows the foundation to move.
Foundation movement is not the only reason that cracks appear in the sheetrock. In new construction, the studs may not have been completely dry when the home was built. As the wood dries, it shrinks and can cause minor cracking.
If you’re purchasing a home and you have concerns, hire an engineer to inspect the foundation of the home. The cost ranges from $250 and up depending upon the size and type of foundation.
Dallas Foundation Repair and Inspection
By Tom Branch, on May 19th, 2011 
When I retired from the Air Force, I relocated to the Dallas area. As I began my search for a place to live, I was amazed at the number of golf courses in the area. I eventually settled on the north Dallas suburbs in Collin County. Collin County includes the cities of Plano, Richardson, Allen, Fairview, Lucas, McKinney, and Frisco.
While I don’t golf, the idea of living on the course is appealing for a number of reasons. Living in the suburbs usually means subdivisions with homes on smaller lots. I really don’t want to have to look into my neighbor’s window every time I look out mine. I also noted that those homes seem to sell quicker and at a higher price.
I recently sold a new home on the Westridge Golf Course in McKinney. My client was able to purchase the home for about $205k! The builder is closing out the subdivision and the lot premiums are being reduced so they can finish out.
Prices for homes on golf course lots range from $175k to several million dollars. The good news is there is something for almost everyone.
See all Collin County Golf Course Homes.
Looking for a golf course home in the Dallas suburbs? Contact us!
By Tom Branch, on May 11th, 2011 
I don’t know what it is about lake-front properties in Texas. Perhaps it’s because it can be hot and dry in the summer or maybe we simply like the idea of seeing water and the trees that usually call the area around our lakes home.
Water-front homes run from $30k for a small one bedroom cabin on a remote lake to several million dollars for a mansion on a large body of water close to one of the major cities. There is truly something for everyone.
See all water-front homes in the Dallas – Fort Worth Metroplex.
See all lake homes in North Texas.
Looking for that perfect lake home? Contact us!
By Tom Branch, on March 17th, 2011  Click for Larger Version RE/MAX Dallas Suburbs is once again in the top 25 real estate brokerages in North Texas based on closed transactions in 2010.
Our office moved from 20th place in 2009 (1,038 transactions closed) to 14th place in 2010 (1,241 transactions closed). We noted that 68% of the brokerages on the list had a decrease in the number of transactions closed between 2009 and 2010.
We compiled the data by brand in the chart above. We’re pleased that RE/MAX® brokerages have the highest production per agent at 13.3 transactions per agent than any other brand in the Top 25. RE/MAX Dallas Suburbs agents closed 15.51 transactions per agent–the second highest in the Top 25 (another RE/MAX® brokerage was number 1).
Source: Dallas Business Journal – March 4, 2011
By Gina Branch, on February 21st, 2011 Don’t we all have horses and oil wells? With the Super Bowl recently held in Dallas, I was unfortunately reminded about the rest of the nation’s stereotypical view of Texans – a bunch of ignorant, uneducated, backwoods heathens who ride horses and pump black gold from their back forty. We all wear boots and cowboy hats. We kill our own food and shoot anybody who trespasses on our farms and ranches.
While you may find a few Texans who fit that mold, I bet pickins would be slim. Texas is home to three of the 10 largest cities in the nation and has become a true melting pot of cultures from around the world. Many companies move their corporate headquarters to Texas for the temperate climate, central location, and affordable housing prices – not to mention the friendly natives. The Texas economy continues to outperform the rest of the country, so we must be doing something more than barrel racing and roping calves here.
I pulled into a retail center parking lot in west Plano on a recent Saturday afternoon and here’s what I saw – a row of Ferraris, Lamborghinis, Porsches, and even a Ford GT. I didn’t find one horse hitched to a wooden post outside the trendy new restaurant. Rather, ponies of a different kind were anxiously waiting under the hoods to be set free along the Dallas North Tollway.
My point is the Dallas Metroplex has a lot to offer – culture, international cuisine, the Symphony, leading corporations, top entertainment, and major league sports. Even a New York City writer covering the Super Bowl commented on the “surprising quality” of dining choices in Dallas. That writer probably doesn’t know that Dallas has more restaurants per capita than New York City.
All said Texas does have a history rich in cowboy culture. It’s part of who we are, but is certainly not all we have to offer. And if you ever want to visit a snapshot of that stereotypical Texas heritage, Fort Worth is just down the road a piece. We Texans are a proud bunch, so whatever your opinion of the south, don’t mess with Texas!
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