By Tom Branch, on September 14th, 2011 
4 Bedrooms | 3.1 Baths | 3 Living | 2 Dining | 2-Car Garage | 2936 SF/Tax
Dallas TX Home For Sale – Updated single-level Preston Hollow home on large lot. Over $500k in updates. Bright kitchen has granite counters, stainless appliances, built-in refrigerator, and wet bar. Master suite has garden tub, dual vanities, separate shower, and dual closets. Gallery formals open to large family room with fireplace. A massive spa room has in-ground spa, sitting area, and separate HVAC. The lush backyard has an open patio that is perfect for entertaining.
Click here for Current Pricing, Details, Photos, and Virtual Tour.
See all Homes For Sale in Royal Park Estates, Dallas TX.
Source: NTREIS
By Tom Branch, on August 13th, 2011 
With real estate leasing going strong in many parts of the nation, you may be considering getting into Real Estate Investing. In this blog, I’ll describe some of the basic terminology.
All examples will be based upon a $100,000 purchase price, $1,000 a month rent, $300 a month operating expenses, and a $450 a month mortgage.
Gross Rent Multiplier
GRM is used to describe a ratio between the cost of a property and the anticipated rental rate. It calculated by dividing the purchase price of the property by the monthly rent. In our example, we would use $100,000 / 1,000 to arrive at a GRM of 10. The higher the number is the better.
Net Operating Income
Net Operating Income is the total cost of the property excluding any mortgage. It’s calculated by adding up all the operating expenses including taxes, insurance, management fees, leasing fees, maintenance, and HOA dues. The total monthly costs are $300 and the monthly rent is $1,000. We would use $1,000 – $300 to arrive at a Net Operating Income of $700. Use $700 * 12 to arrive at an Annual Net Operating Income of $8,400
Capitalization Rate
The Capitalization rate is a ratio between the Net Operating Income and either the original or current market value of a property. We would use $8,400 / $100,000 to arrive at an annual Capitalization Rate of 8.4 percent.
Cash Flow
Cash Flow is the movement of cash in and out of the property. Positive cash flow is usually the goal. It is calculated by subtracting the Net Operating Income and any existing debt from the Gross Income. We would use $1000 – ($300 + $450) to arrive at a monthly Cash Flow of $250.
Occupancy Rate
Occupancy Rate is the ratio between the amount of time a property is rented and the amount of time is vacant. If there is no actual data, I usually use 90 percent as a starting point for analyzing a property.
Knowing the basic terminology and how to calculate them is essential to evaluating any real estate investment purchase.
Looking to purchase investment properties in the North Dallas area? Contact us! We have the experience and knowledge to find good investment properties, lease them to suitable tenants, and provide on-going property management if needed.
By Tom Branch, on August 9th, 2011 
I’ve been watching the rental market in the greater Dallas area for a number of years. It’s finally a landlord’s market again.
Since 2008 we have seen a steady increase in capitalization and occupancy rates. We’re to the point today that any decent rental property is leased in less than a week.
There’s nothing magic about the increase. It’s simple economics. As the availability of easy money dried-up in 2008, those would-be buyers went back to leasing homes. This allowed the glut of inventory we once had to slowly decrease. This stabilized occupancy rates and prevented the downward spiral of capitalization rates we saw during the market boom.
Come forward to 2010 and there are a couple of other factors that are driving the need for rental and lease homes in DFW. As homes went into foreclosure or were short-sold, those homeowners had no choice but to look for rental homes. While the Texas economy is stable, many of the people who could still qualify for a mortgage decided to sit it out and continue to rent. These two factors have basically drained the rental market in the area.
Currently I have almost 50 people looking for rentals and there are so few available. As soon as they come on the market, there are lots of showings and multiple lease applications.
I listed a large home in Frisco on a Friday. I had four applications on Monday. These were solid applicants with high credit scores, little debt, and substantial incomes.
We recently purchased a property for a local investor and leased it for him in less than a week. The Gross Rent Multiplier exceeded 10 with a Capitalization Rate of about 6.5 percent. This is prior to taxes and does not factor in appreciation over time.
It’s a great time to purchase investment property! Prices are low and the need for rental homes continues to climb.
Are you looking to purchase investment properties? Contact us! We have the experience and knowledge to find good investment properties, lease them to suitable tenants, and provide on-going property management if needed.
By Tom Branch, on June 4th, 2011 
I was out working in one of my new home developments today.
As I chatted with the sales staff about how things were going, a common theme became apparent. Potential buyers are sitting on the fence waiting on home prices and interest rates to drop further!
This has been fueled by the reports of nationwide home price drops by many of the national media outlets. The old adage,”location, location, location” comes to mind. All real estate is local!
I did an interview locally last week when this news was released discussing the local numbers. Dallas Fort Worth is actually bucking the national trend with average sales prices up 3.2 percent in North Texas and 5.4 percent in Collin County. Prices are not going down here.
I looked deeper into the numbers and found that new listings are down 17 percent while sales volume is down only 14 percent. What these numbers indicate is that the market is absorbing inventory at a rate greater than new inventory is coming on the market. The supply of available homes is getting smaller. This helps keep prices stable or rising.
To be fair, values may continue to drop in other places depending on a number of factors. Contact a local real estate professional to find out what’s going on in your area.
Mortgage interest rates are at 50 year lows. They may fluctuate slightly but I don’t see them trending much lower. The only reason they remain so low today is because the government is buying most of the mortgage paper and holding the rates low. Eventually the government is going to want to push this back into the private sector but the private sector is not going to get back into mortgage backed securities until rates climb.
What does all this mean for Dallas Fort Worth home buyers? Now may be one of the best times to purchase a home. Prices are stable in most areas and we’re seeing an upward trend over the past year. Mortgage interest rates are at 50-year lows.
It’s time for home buyers in DFW to get off the fence.
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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 24th, 2011 
3 Bedrooms | 1 Baths | 1644 SF/Appraiser
Dallas TX Home For Sale – 1940s charm with modern updates. Nice single level home has been completely updated including refinished oak floors, marble flooring in wet areas, granite countertops, stainless appliances, attic insulation, Tuff shed, steel entry doors, roof, hot water heater, fresh exterior paint, slate patios, and updated landscaping. Owner has approved plans for extended master suite and 3-car garage. Easy access to Love Field, Dallas Tollway, and downtown.
Dallas Texas Home For Sale for Current Pricing, Details, Photos, and Virtual Tour.
Photo: Copyright ©2011 – Imaged2Sell | Source: NTREIS
By Tom Branch, on January 26th, 2011  Copyright - Imaged2Sell 3 Bedrooms | 2.1 Baths | 3-Car Garage | 3072 SF/Tax
Dallas TX Luxury Home For Sale – Beautiful Med-style home on corner lot with mature trees and spectacular 2-story entry. Island kitchen with granite, built-in fridge, Mirazzi tile, walk-in pantry and wine rack. Great room overlooks tropical oasis with covered veranda, sparkling pool and outdoor FP. Master suite down has glass block shower and sep. jetted tub. Third living up perfect for game room. 3 floored attics, 3-car garage with cabs, counters and workbench. Many extras!
Current status, pricing, photos, and a virtual tour for this Dallas Texas, Luxury Home For Sale.
Source: NTREIS
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