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SOLD – 20607 Liatris Ln San Antonio, TX 78259

Address: 20607 Liatris Ln San Antonio, TX 78259

Description: Don`t miss the opportunity to own this charming, 3 bedroom 2 bath home, 1533 sqft. in a desirable location off of Bulverde Rd. There is a study in the front of the home that could be used as a formal dining room. NEW roof just installed and a fresh coat of exterior paint. Washer & Dryer and Water softener will covey. Beautiful covered patio for outdoor entertaining. Plantation shutters in the living room and study. Walking distance to Bulverde Creek Elementary.

Price: Only $190,000

Exit Strategy: Rent  this San Antonio investment property for $1,500 per month

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Homes in Southern California See Near All-Time Price Highs

Southern California home sales dropped 5% in May 2017, yet home prices have still hit a record high in that areas.

According to recent real estate research in California, approximately 8.5% fewer homes were sold in Los Angeles County since March 2017, but home prices are still at a near-record high average of $485,000. This is almost as high as the all-time high of $500,000 in 2007.

Southern California is hardly the only part of the state where real estate prices are testing the ability of workers, families and real estate investors to afford homes. Prices in May 2017 in California hit a record high in Orange County, California, and San Diego County, California.

Also, Forbes reports that the San Francisco, California area is seeing soaring median home prices. Around San Jose, Sunnyvale, and Santa Clara, the median home price topped $1 million in the first quarter of 2017. It was just $535,000 a year ago.

Why the Rise in Home Prices in California? 

The biggest reason this is happening is not enough homes are being built in much of California’s major metro areas to meet booming demand. This is because it is harder to get building permits in much of California.

On the other hand, Texas has a very liberal policy on building new homes. Both states feature cities with high job growth; San Francisco and Oakland added 356,000 new jobs in 2016, and in Dallas, there wee 413,000 new jobs added in the same period. But in San Francisco, only 20,400 new homes were built, and there were 120,000 new ones built in Dallas.

This difference in building permit policy has had various effects. Homeowners in Calfornia are enjoying huge increased in property values, which is great for them to pull out cash and invest in real estate. But for people who want to buy, it is extremely difficult to buy in current circumstances. Many home buyers and real estate investors are priced out of the market.

In areas such as San Antonio, Texas, prices only have doubled in the last 20 years or so, but many more people can afford to buy a home for themselves or for real estate investments.

As home prices in California have soared, we have seen increasing demand for under market value real estate investments in San Antonio. Investors want to see high-ROI investment opportunities in Texas. Many affordable homes are available in San Antonio for under $60,000 wholesale. With $20,000 in rehab, the home can be rented for $800 per month. That is the type of positive cash flow that many California real estate investors want to see.

 

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SOLD – 2943 Pitluk Ave, San Antonio, TX 78211

Address: 2943 Pitluk Ave, San Antonio, TX 78211

Description: Affordable homes are at an all time high demand, excellent location south of downtown, needs to be converted into a 3 bedroom 2 bath, 2 beds, 1 bath, 1014 sqft., estimated repairs: 50K, clean/lawn maintenance/interior paint/exterior paint, plumbing/electrical up to code, flooring, sheetrock/texture, roof, foundation, 1 room addition. Max After Repair Value: 149K,

Price: $59,000 cash

Exit Strategy: we recommend buy/remodel/rent then resale in 5 years

Comps: Rental Comps 2943 Pitluk Sold Comps 2943 Pitlik Ave

Contact us for more information

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Strong Demand for Affordable Rental Properties Should Attract New San Antonio Investors

As the economic recovery gathers steam, many real estate investors in Texas are finding that there is even stronger demand today for affordable rental properties than a few years ago.

The San Antonio economy is doing well with low unemployment rates, rising wages and a growing population.  But there are signs that the prices of new and existing homes in San Antonio are taxing the budgets of middle-class families. Many of them have good incomes, but may not be able to afford rising home prices and down payments.

Last month, the National Association of Realtors stated that the sales of existing homes in San Antonio dropped 2.3% in April 2017. Prices have continued to surge, and sometimes multiple offers are coming in on some affordable homes.

The increase in prices in the last few years of existing homes has somewhat exceeded the rise in wages. So, how is this good news for investors?

Well, investors interested in buy and hold properties and high ROI investment properties in Texas should strongly focus on rehabbing under market value properties and renting them out.

There are plenty of San Antonio families who have enough cash to pay for a rental deposit and $1000 per month in rent, but lack the down payment or income to qualify for a mortgage. In our owner finance market, we are seeing many people who have the income to afford the mortgage payment, but simply lack the cash for the down payment.

This means there is a serious opportunity for the rental property buy and hold investor. Also, with San Antonio properties increasing substantially in value, the buy and hold rental property investor will have a serious chance to increase their equity.

Here is a really nice buy and hold rental property deal I am featuring:

Address: 106 and 110 Dewitt, San Antonio Texas, 78210

Description: Location Location, just south of downtown, short distance to the river walk and the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization): properties are going to double in value in the next 5 years. Both homes need to be converted into 3 beds 1 bath: estimated repairs for both projects: 80K-40K each, purchase price for both investments: 80K, Max After Repair Value: 119K each or 230K for both, Package deal.

Price: $80,000 cash

Exit Strategy: I recommend buy/remodel/rent then resale in 5 years

The under market value San Antonio investor can buy both for $80k and rehab each one for $40k each. You should be able to rent each property for more than $1000 each. And the increase in equity due to their location will make this a very high ROI investment opportunity.

 

 

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San Antonio Investors Buying Up Properties At Rapid Pace

Out of state real estate investors recently bought up several multifamily complexes that are worth more than $150 million. This was one small part of a large surge in real estate investing in San Antonio.

Sherman Residential was the company that bought the 385 unit Pecos Flats apartment complex on the west side in early May.  Sherman decided to come back to the San Antonio market after it left during the down turn in 2007.

Sherman noted that it always like San Antonio for high ROI investment opportunities, but it believes San Antonio is an even better investment today. It stated that San Antonio now has a more diverse employment base and strong population and job growth.

Investment brokers in San Antonio agree; some say that its strong population and employment growth in a range of industries are attracting many more real estate investors.

Many real estate investors are choosing large markets with strong employment growth and relatively low cost of living because they are thought to be more steady and less subject to a boom/bust cycle.

Brokers say that San Antonio is viewed in many quarters as recession proof, and with plenty of economic diversity, this area is a good bet in both bull and bear real estate markets.

San Antonio’s real estate market has experienced strong growth for the last five years, but there are signs that it may be cooling a bit. This can be a good opportunity for under market value real estate investors to pick up deals.

In April 2017, 2427 homes were sold in the San Antonio metro area. This was a decline of 2.2% from a year ago. That was only the third month since early 2011 that sales went down. As of May 2017, 8592 homes were sold in the city, with 8408 sold at this time last year.

The median home price went up by 8.4% in 2017 to $215,000.

Overall, the San Antonio market is a great bet for under market value investors seeking high ROI investment opportunities in 2017. A strong but not explosive real estate market will lead to plenty of good opportunities for investors who know where to look,

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Building Real Estate Wealth – Watch Out for This Expensive TAX TRAP!

If you plan on using financing to help your IRA to acquire real estate you have walked smack dab into one ugly tax trap under the name of “Debt Financed Income”. Financing or as the tax law refers to it as “leverage” refers to obtaining a Mortgage, seller carry-back note, a private or hard money loan.

Normally income earned by an IRA is not subject to taxes, however, if real estate is purchased with borrowed funds, the income will be considered “Debt Financed Income” and the profits generated will be subject to “Unrelated Business Income Tax (UBIT).

Huh?

The simplest explanation is, that the IRA is using non-IRA money to make tax deferred profits. Since the purpose of the IRA is to invest personal pre-tax contributions the use of non-IRA funds falls outside this design and results in a percentage of profits being taxed at trust tax rates in the calendar year when the profits are realized.

Here is an example, if your IRA purchased a property for $100,000, and financed $60,000 of the purchase price, the debt/basis percentage would be 60%, and so the IRA would have to include 60% of the profits as taxable income.

Lets say your profit on the sale of this single family house was $50,000 x 60% (debt basis) then $30,000 is considered “Debt Financed Income” and is subject to  “Unrelated Business Income Tax” which is assessed at trust tax rates – in this case up to 39.6% which amounts to a kick in the gut tax hit totaling $10,238.00

Oh by the way, if you think you can dodge the bullet because you are going to rent the house, think again. The net profits from your rent roll are also subject UBIT each and every year– Yikes!

Wouldn’t is be great if “Unrelated Business Income Tax” could simply disappear?

This is where choosing the right type of plan makes all the difference in the world.

A One-Participant 401k plan is NOT subject to UBIT as long as the financing is non-recourse to you personally. Congress actually created a special tax code exemption for Qualified Pension Plans (401k’s) that removes them from the profit sucking UBIT vacuum an IRA cannot escape.

Choose a One-Participant 401k plan and you can gorge yourself on all the financing you want to and invest in high ROI real estate properties for wealth building. Under market value real estate investments are a great way to build wealth, and the solo 401k is the way to do it.

  DAVID COLE
ph:  928-350-8368
fax:  928-318-6695
website:  www.freedomfirst401k.com
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Building Wealth In Real Estate Investing with a Solo 401k

One of the major purposes of investing in real estate in San Antonio and other places is to build wealth slowly over time. One of the most important ways to do so is to invest in high ROI real estate investments that are protected from US taxes.

Many real estate investors automatically decide to invest in real estate with a self directed IRA, which is a perfectly good way to invest. But there are other options that are worth considering; in fact, a solo 401k can often be superior to an IRA for investing in real estate. But most people are not aware that a solo 401k can be created by a private individual to invest in almost anything, including real estate.

Here are some things to know about the solo 401k:

  • It is a one participant 401k plan, and is just like a traditional 401k plan but it just covers one ‘worker’ – you.
  • Unlike an IRA, you can contribute up to $60,000 each year
  • A solo 401k plan has an employee and profit sharing option but a traditional IRA has a low annual contribution limit. For those over 50, you can make a maximum contribution of $24,000 in a 401k and that can be pre tax or after tax.
  • A solo 401k may be contributed to in either Roth or pre tax format, but a self directed IRA may only be made in pre-tax.
  • Tax free loans: A solo 401k allows you to borrow $50,000 or 50% of the account value. You can use the loan for whatever you want. A self directed IRA cannot be used to borrow funds without it being a prohibited transaction.
  • You can open your 401k at many banks yourself. But with a self directed IRA, you have to use a custodian to hold the funds.
  • You do not need to make an LLC with a 401k. The plan itself may invest in real estate investments without an LLC. A 401k plan by definition is a trust, and the trustee may take title to real estate property without an LLC being formed (another expense).
  • Much better protection from creditors: A solo 401k is a fortress against lawsuits and creditors. It offers far better protections than an IRA. The 2005 Bankruptcy Act will normally protect all 401k assets in a bankruptyc. Most states also have more creditor protection in a solo 401k than a self directed IRA – outside of Chapter 7, 11, or 13 bankruptcy.

Once you have established a solo 401k, you only need to decide which under market value real estate investments that you are going to invest in.

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Seize Control of Your Own Wealth Management Now!

We’re living in a very exciting time and savvy investors are wasting no time in putting their retirement plans to work to capture juicy real estate investment returns. People everywhere realize that the real estate opportunities available right now will most likely never be repeated again during their lifetime.

Is your retirement nest egg still sitting there at the mercy of the stock market? A market which can drop like a lead balloon at the mere mention of a negative rumor. Perhaps it is time to rethink your retirement plan investing options?

Most people hold their retirement savings in traditional and widely-known vehicles such as; company-sponsored 401k plans, online IRA brokerage accounts and the like. But these are the same vehicles that have people up in arms due to the gut wrenching losses they have experienced.

You see, most “traditional” retirement plans only offer limited selections that are based in the equities markets. Problem is, these investments are driven by and subject to whatever impacts Wall Street and lately that has been just about everything.

Maybe you were among the millions of people who were pummeled in 2016 by two major corrections that resulted in $3 Trillion dollars evaporating overnight. How many people saw their retirement dreams go up in smoke in less than 24 hours? If you are sick and tired of the roller coaster ride on Wall Street then perhaps it’s time you explored so called, non-traditional investing.

Wall Street lives by two iron clad rules. Get CONTROL of your money and keep CONTROL of your money – anything else is unacceptable to them. They have absolutely no interest in helping educate you that they are NOT the only game in town.

A Self-Directed Retirement Plan = Freedom of Choice!

Self-directed retirement plans can help you break free of the investment restrictions your current custodian places on you. By utilizing a self-directed plan, a whole world of alternative investments opens up.

It’s not difficult to transfer your money over to a self-directed custodian. Your custodian of choice will walk you through the process of transferring assets into your self-directed plan and will also provide you with guidance on what you can and cannot invest in with your new retirement account.

Just what types of real estate investments open up to you with a self-directed retirement plan?

Here is a just a partial list of idea starters-

  • Raw land
  • Residential homes
  • Commercial property
  • Apartments
  • Duplexes
  • Condos/townhomes
  • Mobile homes
  • Real estate notes
  • Real estate purchase options
  • Self-storage units
  • Tax liens certificates
  • Tax deeds

All of these investments and more are available when you have a self-directed retirement plan! Take control of your own wealth management!

I have no doubt your curiosity has been piqued by this brief article – stay tuned as the next series of articles will pull back the curtains revealing even more about the secret that Wall Street hopes you’ll never discover.

  DAVID COLE
ph:  928-350-8368
fax:  928-318-6695
website:  www.freedomfirst401k.com

FREE IRA book: http://freedomfirst401k.com/self-directed-ira-guide/

Reserve your personal consultation: http://meetme.so/davidcole

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How an Owner Financed Deal Works In San Antonio

Most of our investors’ real estate investment portfolios in San Antonio are in owner financed properties. Rather than rent the properties out, they do an owner financed note to a qualified buyer.

Many real estate investors are not familiar with how an owner financed deal works, so we thought we would lay out the process:

First, we find an under market value investment property in San Antonio in a revitalizing and growing area near downtown. A good example is this dual property in an area that is seeing major reinvestment by the city:

Address: 106 and 110 Dewitt, San Antonio Texas, 78210

Description: Location Location, just south of downtown, short distance to the river walk and the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization): properties are going to double in value in the next 5 years. Both homes need to be converted into 3 beds 1 bath: estimated repairs for both projects: 80K-40K each, purchase price for both investments: 80K, Max After Repair Value: 119K each or 230K for both, Package deal.

Price: $80,000 cash

After we do a $3k-10k clean up and repair of the property, we find a good, qualified buyer with steady work, income and at least $5000 down payment. We execute a promissary note with the buyer of the San Antonio property. We typically charge 9% or 10% interest, a 30 year repayment schedule (fully amoratizing), no prepayment penalty, and consequences for default.

The buyer then sends us his monthly mortgage payments either by check or electronic deposit (I have a special Chase account set up for this purpose). We earn a very good ROI in the range of 10-15% per year, and the property is maintained by the end buyer.

We tend to hold notes for the long term, and do not usually sell them.

Seller financed deals sometimes are for the short term while the buyer gets their credit cleaned up and refinances. In San Antonio, few of our blue collar end buyers end up refinancing. We get long term cash flow with no repair headaches. I also can save thousands in rehab costs because we generally only do a light clean up of the property. The same property if rented would need far more in repairs.

Why don’t more investors consider owner financing their properties? We think many investors simply are not familiar with the process. Many new investors think investment properties must always be rented. Not so.

Another reason we think is that real estate investors may want to pull  cash out of their investment properties to do more deals later. You can’t do that with an owner financed property. But you can sell the note on the property if you choose to do so and get cash for more deals.

Last, we think that people don’t realize that you can buy properties with a mortgage and then do an owner financed deal to the end buyer. This is known as a wrap around mortgage, and can be a really great way to make good cash flow, conserve cash for more deals, and eliminate investor worry about repairing properties.

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Major Redevelopment of Downtown San Antonio Raising Investment Property Values

If you are looking for high ROI real estate investment opportunities, you would be wise to consider buying rental properties in and around downtown San Antonio soon.

Major redevelopment projects are occurring in downtown San Antonio worth hundreds of millions of dollars, including new hotels, a new Frost skyscraper, a revamping of the Lone Star Brewery, and an overhaul of Alamo Plaza.

The south side of San Antonio also is going to have major redevelopment in the works in the coming years, with a facility there to rival the Pearl on the north side.

Some of the other parts of San Antonio that are seeing revitalization are the Alamodome, San Pedro Creek and the Hemisfair area. All of this is going to be adding substantially to real estate values in the San Antonio area.

All of this growth and redevelopment is leading me to pick up more properties around town. This two for one deal is one I just got last week:

Address: 106 and 110 Dewitt, San Antonio Texas, 78210

Description: Location Location, just south of downtown, short distance to the river walk and the new San Pedro creek river walk extension project (multi-billion dollar inner city revitalization): properties are going to double in value in the next 5 years. Both homes need to be converted into 3 beds 1 bath: estimated repairs for both projects: 80K-40K each, purchase price for both investments: 80K, Max After Repair Value: 119K each or 230K for both, Package deal.

Price: $80,000 cash

Exit Strategy: I recommend buy/remodel/rent then resale in 5 years

Comps: 110 & 106 Dewitt rental comps 110 & 106 Dewitt sold comps

These San Antonio investment properties are only $40,000 each. I recommend putting $40,000 into each one and then renting them out for a few years. I expect these properties will nearly double in value by the time most of the slated renovations downtown are completed. I have bought and sold hundreds of under market value homes in this area, and I am usually very close on what houses will be worth after my rehabs and after 3-5 years.

I have not seen San Antonio put this much money into the downtown and surrounding areas in a long time. I expect the development is going to make San Antonio investment opportunities even more profitable.