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KJCE 1370AM>Audio on Demand>>Real Estate Investor Power Hour Podcast 07/24/14

Real Estate Investor Power Hour Podcast 07/24/14

Jul 26, 2014|

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-- it's time for the real estate investor power hour with Danny Weber. If you needed deal turns your revenue producer Danny has completed over. Real estate transactions in the years he is a licensed real estate and mortgage brokered. Loan originators and insurance -- in Texas to join the conversation by calling the inning down 51239. -- thirteen seventy. Now here's Danny. Hey good afternoon everybody welcome to real estate investor power hour I am gaining wherever we are here with Jack Grady. Everybody good to be back here again. And solid and we have this very special guest tonight we've got county commissioner -- would RD district street. A salute her how he's. We're going to be building some questions tonight keeping -- get a question or 5123 and a thirteen 751239013. Seventy. And now we gonna have a bit of a recap of the class that we had this past weekend. I was gonna say that was a great class I was so excited to be easier and you know he's put on that put on and good class a lot of information on the feedback I got from the folks there was it was worst way more than what they paid they were gonna definitely -- get their money back and had the first few deals they did. It really was good information Danny Lee we enjoyed that -- They're the feedback that I got is is almost slow down some because it's whenever. You're doing a presentation for investors you just wanna cover so much in a class and there's so much covered everything that I talked about I mean we we've targeted another week class and not not got got to the end of it. Oh absolutely absolutely and -- you have investors on different you know. Parts of the scale some that are beginning some intermediate eccentric and so you know you it's hard to regulate the speed. Because you don't know you know some of them you're talking about assumption they never heard that whereas right now but it was it was definitely I mean that the handouts are also must have got a mine have been looking Adam. A lot. How is a food could result. Covered three's great mandatory it is great. You know he's we stuffed everybody in the class they're like no more food -- -- and had an alcohol EI -- every -- we had an open bar. And then dessert did you see how huge debt brownie was what Matt. I did that was crazy brownies cheesecake in peach was peach spread putting yet -- -- -- riveting I didn't I just chocolate man I'm -- chocolate diet too much too much so we wanna. We wanted to do you know take a portion of the show and and I invited the commission on the show because I should live in his district in and -- -- voted -- -- part of support in any way shape I can. And he's got some things that he wants to talk about Vietnam. And now on the political side which which we definitely him and they were gonna get some questions from. Folks in radio land about his dish again and commission -- for your district is is everybody knows. But any precinct three is the western. Half of Travis County. Precinct three. Is 42% land mass of Travis County. My precinct starts that I thirty and dealing creek area goes all the way around. Like -- in all the way out to per analysis it's also on the north side of the lake. You get over the 1431 over there your neck of the woods means how Jonestown and -- -- Vista soil large area. And as may affect tell people so I have to get a motel room to get across operation I know during traffic times and he didn't expect to guarantee a mean course that's her. Our best to think that that's the case just about every go to -- in Austin today. Are you and how I mean there's a small section entitled it's Travis County -- that day -- say your precinct as well I don't know that's that's precinct one okay now honey increasing gas today you're over I'm only sad about 35 yet. And and that's you know that's a dynamic -- him over there as -- course. I don't move of a spot in Travis -- near Austin that's not dynamic today. Yeah it's it is definitely going crazy the Cedar Park land -- all that man that is. That is on fire his own -- that is a great place if you are lucky enough to buy a house you know not too long you know six months or so he did you just watched the value -- Whereas -- that's one of the things I want to talk about tonight well well we've got you know a guy in the know here to tell us about things is is as investors different than in Travis. He's. You know even even you know burn hander anywhere in that direction Orlando. What what should we be looking at in the Travis County area and -- -- -- -- -- -- -- -- but I want to keep in -- is -- you're -- is -- our -- -- is a -- investors so we're always. But the land is what we're after we're glad he -- and you have 40% -- is that we want everybody on the show once owned 39% 40% have a -- -- at some point. So on what what's what's hot on the on the agenda right now. Well from the hottest thing on the Travis County commissioners court agenda is. Appraisals. Counteroffer is a district I mean all of your appraisals I mean it is that it is the thing that's gotten people. Probably the most -- and that's a nice way to put it yeah I mean trust. And done and I don't -- getting any better as a means you know you all are in the business. Yeah when people come to us and talk about that they really. Cannot believe what their taxes are. And most of that is you know predicated on your appraisal Bryant no that's not say that your commissioners court can't set. You know as low tax rate as you can so that means and -- -- -- -- as much you know that's right because right now I don't see us get -- decreased. Now I see that is that is that something that she is not happening any time sooner and I would not take into the bank him in a matter of fact that probably is not going to happen. You know we've just as you all know we've got such a hot market. And when people or coming to the commissioners court talking about you know had about what can you do how can you help us. Well other than trying to set the tax rate is Lowe's we came in I mean there's not a lot that I can do about appraisals for a real estate I mean that's market control absolutely. And I'm not not something that's in your your purview unite you don't control the market is not -- might want to that. Now when when we say we're not -- lower taxes to have anything to do is the rail. Coming in are the proposed drill I mean I don't see our taxes decreasing it that Dan if that thing is. Well -- -- is probably. The worst thing that that we could imagine doing today -- If we're gonna spend money on. Mobility I mean which you know we certainly need to be. Because traffic is probably other than. Your taxes and just the affordability factor. Traffic is probably the number one issue. And it certainly is. A player with regards to real -- -- yeah I mean you know you several border would what do you. What what would you talk about as it relates to real estate. You know we all know that the other schools. Our view a huge factor as -- where people wanna go -- Jobs. The -- you have to really look at what kind of infrastructure do you have to accommodate. The growth that this that this town has and that is sent in that we all have really got to think think the. I don't see a rail all -- comes from you know Leander gone down to wherever it's going to go I mean I see there's the train go by right now and there's two or three people on it. It's it's not like because then that the scans and money that we would stand on that would be and then the most productive use of our dollars and that's just my opinion. Yeah well mommy -- Jack Kemp and I I can have an entire program about. Rail transportation. My closest closest lot of -- says that. It is a huge factor. Where is everything in this community and I think in particularly. Real state but one thing that is irrefutable we don't have enough money. To take on and to really. Six. Our transportation. Problems. And the reason that I am in now and I'll let it be. Well into here the reason that I think that rail is something that is who weighed down the land so to speak. Is that we need to spend every imaginable dollar that we can get our hands on on making sure that we have a comprehensive road system. But there's a road system is really what allows us to do all the commerce and all the things that we all have the net -- -- Absolutely we got a caller on the line here. -- -- -- -- They are you make it through. They met her there and they were you calling from Aaron. And very scary yeah okay great great great you got a question for the commissioner for. You predicament and I commit an error you do an -- -- great things are -- evening as well as wonderful. Air on the automatic and I am. What area is easy being that ballot in the near future in your district NYT eighteen and doing not way. Well just about everything on the west side of Travis County is just hotter than a pistol. Around and obviously. I'm as it would mentioned your mind out of Curtis talk about a second go -- you probably waited until the land it. You know the school districts. You know play a huge part. And growth because of folks you know certainly wanna make sure that there -- the school district. Beware of you know it's you know it's got the system you know they can accommodate. You know all the needs or you know education. You know water is a huge issue on the way aside waters a huge issue in central Tyson's attorney. And that I don't think that there is a place in western Travis -- That you can go wrong -- is. You know whether you're investing where you're just warning to. -- there. And it certainly is the case you know everywhere I go so. All of western Travis can -- the south part of the late coming South Park meaning. Don't like quaint area has always. Been a much hotter market. In the north side where the north signs even coming on because what you have these at all the growth out of Cedar Park all the growth out of Leander. And so those areas immunity take the whole crystal falls area. I mean it's just I mean it is really spawning things and that particular areas of -- and -- I don't think there's some places you go western Travis County that you're not going to be somewhat happy I mean you -- I'll be happy with what's gotta play for a -- -- -- Well it -- you very much appreciate your time. -- here except for car and you know you're you're mentioning north of the lake I think a unit and nine and you were talking about that day it's always been a little slow there but you know that that gives opportunity for the investors with -- -- -- it is just a little bit slower. Folks seem to unload those properties need to find a deal over there and make and make some good money on. -- good buddies and I managed property in -- Vista in Iran to analog or actually really compatible. I mean you know and you may be paying you know there are getting a hundred dollars less than Cedar Park. Where Leander maybe you know maybe 150 but there's still that the prices of the homer well what are worth going after there's -- Duplex is in four -- is to suffer any anything in an area goes quick. You know I think it would grow a lot faster out there if it wasn't for the police in Jonestown stopped he just for -- her I can't even put it. Can't tell you how many you know I -- does that guy know when there. I -- I've got property in Johnstown so I've kind of learned a pattern when you drive did you nearly eight. Did the 1431 thing is if you're going -- Downey really need to Soledad that's right I think that they include a huge seemed to slow down this. When the quake occurred headed to the turns 35 and you just have to let off that gassing in an unintentionally your client just has gone down hill. That's what they wait for that that's see that's the whole thing to stymie the growth ethics. What around what any new meaning any huge roadways coming in your district is that always drives that always drives movement and then the bus -- -- -- bus lines and ever gonna get out there and well what you've got to have is if you're gonna have public transportation you you have to be able to participate in capital metro and if you're gonna put his -- despite capital metro U you've got offended. Some of your sales tax. That you. They -- Dick lynch. No actually admit what you've got and in Austin. The capital metro operates the transit authority and it operates. Effectively on a penny of sales tax. So if you for example Jonestown does in the capital metro. District because they voted. To be in the district back in about 1988. And but if you if you are a municipality. And you really want to participate. The you've got to go first all you gotta have. The availability of sales tax most cities are maxed out with their sales tax because -- -- quarter. Uses but sills -- as you can have in the state of Texas -- and most of your cities are a new quarter six new quarterback goes to the state of Texas one penny of it. Generally -- or goes to do the large municipality. And you take another penny and you give you that thing up with all sorts of things but. In Austin full penny goes to camp. -- -- -- Galleys and I don't know if it's an indicator of and investments investors there anything but I always look for. Expansions or something on big roadways has always gets in the -- between Italy and cheaper. I see a lot of new builders new home builder's gone that way al-Qaeda is only half but the Landon and you can you know go in knowing he's -- -- a -- 30000 dollars a lot there you know on her piano means -- usually get ahead of the -- is we need to because -- -- -- -- once the announcements -- -- wants an -- is made. That the owners are in the know and then your ear. You know I'm not going to for the same price you I don't get Mac attacks if you quick I don't know. About everybody has his opinion dynamite and Texas I actually I think I get enough value. Live and in this area we put this they are out they Chavis carry Texas into the week president saying Harris County air Tarrant County. Taxes. For the same you know. We're pretty similar I mean I am. I am as anybody who is in Austin in no matter what part what tax bracket you know your pain on your house. They love being in Austin and it really is it's a place to be in Texas as far as I'm concerned. Well that's the reason we knew that we are so hot button menu if you can get here. You get here's fast as you can and and quite frankly I mean you know there is certainly a mindset out there were. A number of people would like to defense around. And say you know what we've got all the we need this Fisher -- especially some of us that have been here for 4045 years like I have. You know we remember back when Alston was. 250000. People -- and you can move around really easily I mean. The affordability factor was there. That was very beneficial for living in Austin. But do we have been discovered. And I think that we're gonna continue to grow. What percentage of your district is from California. You know the largest. Migration. Into -- comes from within the state of Texas rarely are put into California and California but if you get outside. The stated Texas. Yes California is is the place where the most people move from. And you know that's part of the problem with the -- affordability thing because you've come from California. With a lot of equity in your pocket. You can term and you can -- our homes that a lot of people here think our home so our our housing expensive. But if you come from California now this is -- this and this is a song here. -- so let's take a commercial break a one I think the commissioner for coming on and we'll be right back in continues conversation. It was -- power thank you guys. They're real estate investor power -- with Danny Weber if you have a question for Danny don't -- died -- now at 51239. Out thirteen seventy. I welcome back to real estate investor power -- and we are here with Jack and commissioner darting. Hey before we don't want that the most pertinent. Most pertinent question around. Jack Allen's thought that I say are -- a little bit about that on Sunday talk. How many people you are serving a week. So we serve that 6000 folks who week and each of the locations I mean you know Jack gallons in Oak Hill -- -- in round rock and I did happen to be the third Jack Allen's coming out here. In the -- period 360 and and then. You know like -- you know. We're gonna do America's commissioner -- came on the show for me. How many get some gift cards for Jack out from Jack gallons partly by next week you're gonna have some some giveaways. Because when we do -- -- is the phone lines up. You know make you some gift -- because I -- there before and I Taylor cyanide Jack off our finite at the Sunday brunch there it is the only place in the city of Austin. They never walked out of an end. Undo my pants and that I myself Luke because I ate so much as -- as they would do that tinian and it's just ridiculously good -- I'm look at the -- to the Sunday deal I mean did a -- us and we've got a -- -- and make reservations -- so popular but that would dead. This sort of exciting yeah that sounds exciting. Let me give a quick plug we just as most of you know. -- I'm doing a container rumor in our property in in Jones -- -- Johnson was in Leander Travis County alien that is. And I just got the insulation put in the spring and insulation and a company called. Thermodynamics insulation did the work are really starting we've I was my contact there. And I'm gonna tell you if you have if you've never been exposed to spray in. The the foam insulation did open cell. We did four inches of focus on this container. And you can walk in there like today we walked in there. But on on on a relatively high Danny and did it out. If it was not fifteen to twenty degrees cooler in the air from how war. I take in not only that but when you walk in there -- it's -- is it feels like yours if -- -- -- rainy Mercedes when you shut the door you feel like in a cockpit you'll see you get to a solid. But I container on -- and it's. There -- thermodynamics -- insulation. I would give you their phone number shortly but my contact it was -- Levi. And I've convinced and actually -- in commercials together for Russia because their product is history data are like I don't know if I'll ever do another home without spray and foam insulation was it was that I mean was it. Affordable wasn't. It was it was very affordable. Yeah -- knows it was a likes the crowd on the -- it was crazy actually vetoed it in a manner of my website. My home simply dot com any initiative to the web semi comfortable dot com to see some of their early pictures of the container -- But we we literally have for electric crime and light throwing now we've got water on an understatement Seles things once we do Chirac was going to a when my guys Matt was in there do an -- Iraq. And -- be literally livable you know home and and you know for me to really get rid oversell because he's just kind of play thing at this point. Sign next -- two weeks. Now be really interested to see the finished product what's what there's a deal to Tapia had commissioner with the restrictions are and in Travis -- -- -- LET jays are receiving restrictions are a lot. More lenient in the city. But I know since Austin's actually got a container bar. And I know they've got some containers structures. What they are how is it just wide open allowed -- -- to have special cities -- -- or -- you know. Well of course you've you you've just got such a difference between. Municipal. Restrictions vs what you have with county. -- Timmy is you know quite frankly knew pretty wide open yet. You know the the the thing did in the space of -- -- talking. About commercial stuff. You know probably the person that you have to convince. Most that you aware of your doing is going to be okay is the fire Marshal. You know there's about -- people listen to one person you really can't push around whatever comes to -- -- you know. Doing anything is the fire gas drilling because they are probably the most powerful. -- and he got to make sure that you get those guys please. And quite frankly I mean you know it's sort of something that we all of all pay attention to that don't try to cut any corners whatever comes to attempt. Your date with the fire marshals McCain. Yeah now well so that would be the key the end of the year trying to get something like that container Holland and be accepted in the Austin again I can say you know I like -- -- Almost -- never lived in another municipality and kind of stuck on the mini TJ's now. And I don't think they'll ever next my street into into Leander but if they do I'll probably move. I just wanna be in any TJ because I like the free that permit process is here to Travis County guys that I dealt with for so I mean make. They knew if I call -- an optimistic coming back to fifteen or twenty minute when he emailed me it was like actually get good to know nothing against the city of Austin but yet actually real good service at the -- level with these guys. Tell -- guys spent an hour on the phone with me researching records on his computer priority would never get that. Any really in any other city where there. Yes and I guess -- just you know so overwhelmed there there's no way they could -- -- kind of time I met may be the counties and now they can't there's Joanna Tonya -- managed al-Qaeda. But you know overall I mean my prime -- experience with the city of Austin is actually not been bad I got five expressed permanent so MM one day and three Dallas later came out -- all of Norman dead. You know we're we're given a complete remodel on this house so I've been I've been real happy with the city Austin. Yet most people don't realize that you get expressed permits for just about a complete rehab -- in in you get of same day be genuine there was some specific paperwork and got your I's dotted t.s crossed and in that process and it is an art that that's the same day process Monday Wednesday or Friday I think not so there's an 8 AM and used it in their own in. Plan on spending the better part of the day there. Yeah I took about it took about three hours and I didn't know what I was doing and I and develop you know I do a lot in the suburbs and -- don't have to deal with the city of Boston so this was my first time walked in there. Didn't know what to do they gave me this form Southfield amount. Got permits paid 219 dollars and out of the five permits not bad at all and that included you know -- a re doing dishing goals some decking. Deciding. -- -- -- -- -- -- -- -- -- -- -- -- Should it covers a lot that's what most folks understand as you cannot -- almost a complete we have this kind of complete rehab or flip. -- a lot of anonymous small -- -- right right -- got another caller on the line man who's on the line. I meet a comedian -- I am here if you have a question for you are -- container. I hear a lot there. Did you get through the city because I I live in south authentic and I was trying to get them. A permit it up when asked the city I live in south often. Police said Aaron the zoning and allowed a second unit but -- to -- the foundation. I was wondering how did you find out you were able to put a container back there. Well that -- Travis the Travis County actually territorial jurisdictions on I have to go to the city of Boston for permanent. Yeah that's that's the easiest answer I can tell you on because I don't know with the city of Austin would require Travis County is completely different when it comes to permanent they require. Some stuff not all the stuff the city does. And that's -- -- -- county more so in the city in an innocent get tossed in the city but I just love ET Jason I'm stuck on an -- on the removed from them. But the but the easy matches -- the father requiring is that foundation really. You know find out what they went they -- pier and -- running. Typically they will accept the city of Boston will accept a structural engineers report and recommendation as long as you -- to that -- In the end you can get a before and after a letter saying minute structurally sound and that would be where would start or. She's -- -- hope you work through because I'm a big big fan of tiny homes in tiny houses and smaller footprints -- I'd love to get you to the other side of this is so we have a a model. You know and into it sounds like the foundation is it issue is going to be just like it is on manufactured homes made they require FHA requires a foundation and and those are really simple. Foundations I mean a lot of them were just you know XTY and in and ran on each side it wasn't even a full foundation. On some of the. I can I continue with their look at for those are looking for structural engineers recommendation -- got an 8000 pound container -- and you had a -- for another 5000 dollar a pound rather worth of materials to build it out if not more. He -- they're looking for something that would structurally support that in -- on the ground. But that's not that's not even hard that's serious structural engineer maybe a thousand dollars 15100 dollars -- NL IC design it. And then you gonna have to do that the actual labor and get it done but. Typically does can't beam stuff which is probably what you would go after -- they use your quarantine foot deep and then a two foot square when she had a two foot deep with. He's number three number four rebar coming up in in the and then concrete cylinders and we done we actually just finished one maybe we can happen on the central central Austin area. And in I think the browns actually better where you are. He's what you mean email I've done Danny -- however gmail.com or just you know an inning we call me in the numbers on the on the way -- I'd like to get you to the other side of that is so we have a model. Great -- -- you so much and enjoy your show. Thanks reality game. So I don't know I utilities commission but I just I I mean I've got a big house I got a couple of acres in and you know. Of the three story house of -- to -- three story house and I -- we live in about 20% in my house right and so I'm a big fan of trying to shrink down. And get to something because because my whole argument and this is like -- Teaching the classes don't live like you're itching to become when he don't live like -- rich you know that you use your money for experiences -- materialistic stuff. -- -- any fewer expensive low enough each month you can do that you want to union haven't stressed that every stress of life. In any nor that comes from and being self employed on my mom how. -- and self employed when you work on commissions or sells the you know you get paid X amount dollars. You may have a lot of money but you don't know where the next cells coming from and so really does I need to be for -- I lived in 5600 square feet converse she creek. I had an auction opened the doors. And I moved into 11100 square feet for a while and now much about 4200. The man I sold everything that furniture. The pictures. The house and I I -- that allegedly having -- you're happier at. I'm Ali yeah you know I had 18100 dollar column electric deal over there on -- -- like -- -- -- -- this -- is 600 dollar -- Bill -- -- -- -- Lights are out so is there -- you know how do you feel about that did is there anything working and Travis County to just make it easier to do or anything you've -- and a -- Well I'm Travis Kenny is a says. You were a little easier. To work when we're not quite as museum in although there some of our departments that that are extremely good. And they're certainly our rules and regulations that you have to comply with the change generally. Not much you do within a municipality. You know does the ETJ deal. Is is a pretty good deal most of the time decision you know you get. -- you get some services. That you don't get the baggage of having to pay. Full purpose taxes track and you know and let's face it I mean taxes today -- I'd mention it earlier. It's probably other than transportation. It is the number one issue that people or. Really haven't difficulties if you're an east Austin for example in the east Austin has always been a very affordable area. You know the gentrification. Has taken east Austin and has really created you know values. There that people or dislike. Wow I mean my taxes. Are much more than my mortgage. Is for the year. And you know that is when people so let's just not fair and my comment there is that. I don't know that that's the -- beat you correct way to. You know to position that I mean what's what it is is it's unfortunate. Brian it is fire I mean you know fair is what is fair market value right or for your house. In -- and people if you think that your house is valued. Two. If you put a for sale sign out in front of the you can probably sell your house. For more. Then what he can has the value oh yeah I mean so you know it's a great market. You know to be selling because you know you put a lot of equity dollars but the unfortunate thing is you got to turn around and live somewhere -- so that -- the buyer that the death -- a year really have a conundrum going on there that. That is really difficult for folks. I think there and the folks that are -- anatomy east Austin and in that situation they may have paid their house off now -- you know that -- their taxes have gone way up so there. And they sell they're gonna have to move out little ways that there's certainly they're gonna make some good money because east Austin is is on fire. It is a desire to see it is yeah I had a few projects going on over there and and we're running into people. We're -- on people that live in Austin 405060 years in houses have been paid off for 2030 years and if they were not. I'm savvy enough to give it at age 65 freeze on your taxes and a couple of you know sent a couple of things. They're -- the same taxes now as you know close to a 2014 go home Perino. Two thirds of that and they get in 1940. You know 1110900 square foot home in their -- Their -- -- there that's our own bill but that's actually because our Social Security fixed income that's trying to monitor there's and we got to sell. And that's hammering to a lot right now. Just not their house that's you know so to visit is there a lot next track I mean that's that is the expensive part I mean you've got you know and I slot. I mean I guess what you're you're -- lot may be worth. 300000 dollars you may live and a 40000 dollar ousted from eight years old right I don't that's underwater -- and there are a lot of folks out there are shopping for let me -- somewhat but yes a lot of folks looking for lots you know. Well that's what that's what I do and -- Lamar new deal or a show complete skeleton there that's what you know and that's what they're they're out they're doing. In right now I -- you know my personal bullish years at least due to homes and and central east Austin builds no ground up to homes. Or out -- source and not trying to trying to get you know like like everything I'm trying to get that most people actually overpaying for launch because they make up in the build -- in the price prescription and build -- You know my name -- -- I'm trying to get a good deal on the lot as well which it is good yeah. Yeah yeah yeah you and good luck with -- now thousands of others -- I. Now you know what's interesting now Ira Randy Andy you'd yell at the city Boston this week and they were at two or three lots they were. Either taking down around at that point and guess where I found where. Indian analysts of course and they were good prices he was talking to me about it and what happened was. Dare when there worse situations that most people didn't want to overcome. It always is taking our deepest problems and so they there there in the hunt do and it and you know -- sound like they're gonna get a couple of really good deal since a class Saturday. Com and us talking about it. You know -- having access to the must been so important for investors direct access had a couple people sign of his assistants already. And then I met with another investor this morning for coffee farmer and I have a new investors in the class Saturday. And -- house on a contract and and use use in some third party drew software to do was comps and stuff and he ended up pain in the 5000 over what was what was thought well the last the most list price was little while ago. And so I was -- -- but you know you can't trust any other dad and then me analyzing you have to have direct access and -- if I take anything during the trust me log in and verify yourself -- But but thankfully. He -- he just got the contract -- signed which is not a big big deal but I was you know we we talked in Indian go to seizing a back and try to you know the 141000 of the price. -- something like that which is gonna make it do we deal yeah. But the jets have access to the analysts tell you how urgent decisions and -- honestly not that you can't just analyze the yet -- dig real deep because. Agents that the people I am putting this -- -- agents and they're not perfect current and and you just don't know what's going on behind the scenes but. For investors if you stay centering around talking anywhere east or west of Mo pac anywhere you know I I like to stage I'll go one or two blocks. Past airport going east but not far I wanna stay airport west. You know nude truthfully honestly im okay as close as I can you know. Chestnut anywhere in that area can get now -- to 45 and and I love 45. Between not the Hyde Park area oh yeah that is a crazy good area to invest in the debate in the demand is so yeah. Yeah -- gridlock current missile hit it based on values there's a certificate and that's -- -- -- -- lying -- your values in those areas. And you -- me and -- if you think I'm -- is is when you find -- house that you can -- to square -- -- you have to -- that these days and and you know there there there is the -- -- got -- you've got to get in in touch with -- -- -- -- got to. You know learn what a lot she can build on -- bill bonding and what isn't so you wanna. But then there's all these branches estranged ever you know there's impervious cover rules and then there is you know sometimes impervious cover rule us. You know right now I think it's 40% to standard but in some neighborhoods have a 5060 or seventy because it's as specific neighborhood. You know we've got to take a commercial break but when we get back -- it continues thought because that is where all the money right now when he's home your client gets. I went to three and a thirteen seven you'll be right back -- Welcome back to the real estate investor power hour -- Danny Weber. If you have a question for Danny don't these guys Colin now at 51 C 39 out thirteen seventy. Tyler welcome mat Tuesday investors are we had caller Colin and while we were on break and I'm and apologized and you catcher -- Minority there. Thanks for -- you from northwest Austin and one apologize if -- I don't know for too long and how did you have a question for us to the commissioner. -- -- -- -- I was wondering why your biggest goal for your entry for the -- you're not. Well related question there's a great question that first small to make sure that we have a comprehensive broad system where you get from point a to point B. Obviously. Always would like to say that the tax rate is low as we possibly can I think they'll that we do that is. You know curbing our spending. But. Whatever comes to the issues in in Austin whether it's my precinct or wherever. It's mobility and its affordability. And you know obviously I can't do much about the schools because I'm not a school board member. Other -- payment taxes. That the central Texas -- are expensive. And obviously the other thing did you know that I have to pay a lot of attention to. Is. What are we doing what is the with water I mean course. You know when Lake Travis is fifty feet down I mean you know I guess I'm good like everybody -- and and price for for rain and Fredericksburg in Johnson City so that -- -- Purnell rivers the thing that fills -- like Travis. But those are -- those are the issues that deal with -- mostly on a daily basis. And one continue to try to you know. -- -- Did that if you question our. -- as great mobility and affordability that's what we're looking forward. Now -- -- -- -- -- percent thanks so my client and sort of a final. So hot we were talking about com where you monies that in any new construction even additions and you know one of the things we talked on the class Saturday was -- here if you aren't any type of area where you're new -- your your price per square -- hard price per square foot is -- -- really 150 to 200 above and really -- fifty to be right -- stop it. Com we don't -- right now for a hundred square foot. -- so that -- -- -- actually little bit higher with the calmer now is that construction costs are through the roof materials labor everything there is no longer you know 23 years ago you'd get a skilled carpenter electrician or plumber that would work for. Or fifteen bucks an hour -- those guys and don't exist anymore -- twelve or fifteen bucks an hour -- you're getting somebody who's got some issues. Pain and I not even know if it -- -- give -- one day of work within Muniz is gonna happen the next day right. But he demands to sample is if you can -- -- trying to -- and 355 Griffin edition the price per square foot -- price for script for just 300 dollars. So the additions gonna cost about 35000. But we're putting 90000. -- out of 5000 dollars in value in the home. Now who windy that rank and permitting on the -- typically need you know. An architect. Behind it is structural engineer for the foundation and then you're just gonna need you -- do they even taken on any consideration you're still on charges reflect. And in the math is simple -- -- arguable so everybody that's out there have been known to do any kind of rehab or anything right now. -- a permit a full permit for an addition is only about seven to ten days everybody's. Do you relish those whose investment master closet got there are like 06 months out it's his and that's that's not -- -- that's because I haven't done it. And I get permits and senate ten days I've got -- the architect he actually gets a permit force my advice to use to pay architect -- -- plant in the Pei architect of his deferment. And you can also hire these -- those -- got it 250 dollars and he was I was -- an investor and he was -- -- permits weren't even have to -- down and do it 250 -- -- take. Not a man not a bad price now whenever I have to go sit down there's this city of Austin. Yeah I think they should like I went to a one of those urgent care clinic Teresa I mean you know when an NFL. -- that -- and I'd be right on out there with the change somewhat property and poison -- whatever it is. And I get I get -- there's like 930 at night. Quick story here and -- 930 at night I felt like had gone to a resort. These urgent care clinics there are all about customer serves I walked in and they gave reducing animal crackers probably to a private room with a flat screen TV in a comfortable so far. With thank diet cokes Jews in crackers and I was watching and my own remote watching the big flat screen TV on a -- as I do not indicate the doctor comes now. I don't think you need there is little cortisone shot I have got a half I thought I mean Allison Janney with a needle over there nursery Amanda. Hog heaven here -- right then I was like oh my god like and I believe in what it was is the the CEO or CFO whatever came from the hospitality industry. I -- they something I'll never step foot in another urgent care place but -- it was just beyond reason. -- are racing and that's what the city of Austin needs -- we need to have -- company that cookies crackers asks flat screen TVs and like Michael a private airline when you Fallon oversees a teacher movies and stuff but. There's going. I was gonna say yeah that is the reality and then the permit situation is that it's it's just not that bad -- basic and I was just as -- first. Rodeo with the permanent deal. But again because I -- I and develop outside of the city of Austin. And I was going in there with my you know cringed and thinking it was going to be a terrible experience and again walked out of -- three hours later with five permits and 219 dollars. That was just easy to did you know objective. The thing that we're talking about beer and the first part of the program and mounted even before we got on the air. It always helps to get Lou. Anywhere especially I think with the city of Austin. Put on your good attitude my camp I mean if you go over there are a little bit hand in hand. And you know and then let people know that you know you don't really know exactly what you need to be doing. But be pleasant you know and and you know there's so many attitudes. They get topped the other I mean you know I I have it. When people -- office you know and I try to you know talk them down -- -- in -- and you know get him to the point to say you know. You -- Got a couple folks that you had talked to before you got to me and -- ended its view what you don't want is somebody you know was burned to me about. Well this person is really. Hard to deal with. And so you know that that whole attitude thing because you know most of these folks who really wanna do good job. And our and there are so many war stories out there are horror stories about the city of Austin when asked Thailand is there there are working people. And if you just know how to go in there and and work with them and I think he -- come out with like what you've -- and -- this is. Probably the best thing they can have is to your conversation that you had about you know what I got in there I got this done it wasn't anywhere near what I'd. Heard the angry if it really was and and decent paying good experience and and the inspector that has come by the house it's it's not been an issue or problem. And when it does become one area that does become one day and it's you know like said he put on you get attitude yes there. You know we were talking about -- earlier a lot of what kind of -- do you want neediest and you know I just do what do you mean do you need to do. So. He's coming back to the class he'd used it's Saturday Jack the feedback and the feedback I got from the folks at attended were. They want more information on on the -- mortgage -- assumptions and of course everybody always wants more information on flips in rehab is actually where the big money is the quickest in this industry. Another another you know kind of lead and this is so on the investor summit with this morning. You know that got income got credit doesn't didn't really say much so we need to start building. Some cash some liquid and so what you know in your mind quickest way to build liquid for these guys is what it. The quickest way to build just to cash flow -- not just just one time me I'll I flipped yet I just just -- scope -- property and flipped it wholesale it to our our -- do you still assigning any gas and that's that's all quick. I'm a big -- guy so I don't do a lot of wholesale but you know of a flip doesn't have to take that long if it doesn't require that much work now there's a ton. That's one of the ones actually on the project restarted the city Lawson from August 1 or second. Is in east off. Move it a little bit now west of 183 but not far off that -- track. And down it needs no lipstick is what we say which is just you know paint flooring. And you countertop and a few other things but it's a quick. It's a really quick Q was an analyst -- and I think these folks are standard standard -- you know 304050 K for literally under a month of of work on this yeah. And so you're always saying get on the MLS you know we we academic classes that you can use every dollar you need to make is only in my she just cannot -- not negotiated yet. There there's a lot there and there's a lot Indian analysts say in Austin there's a lot of name Ellison's San Antonio I'm blown away with the with the deals that I see potential deals are -- in San Antonio say potential. Because it takes about three months to ramp up to get to know an area and to get million market. And I am a part of that board over there and I'm beginning to understand though that market there's that low price point -- good good opportunities there as well. Class Saturday I gotta think -- I mean -- -- alone was over running around their -- and -- -- old is amazing I know why she's here secretary national car is that Chris how -- you why you're administrative assistant executive and executive assists assists and she's a tremendous -- Tennessee as soon as. Now Dallas is she did a great job and we we knew we appreciated day everything she did and hustling and -- that -- and we had some we had some really good questions in the class. But again more traps everybody wants no more more mortgage traps and and today him. Talking about that one game is a dynamic -- and again I get the question all the time in and it's it's not my area of expertise but I've heard you enough. -- the anatomy of a assumption. Are a sub two is today is an older house is -- in your house is this something that needs a lot of work doesn't need a lot. It's really it's so all over the board but day. The ones that I know now where folks are under some type of distress and I think I have four or five that I got said the two were rapper assumption whatever you wanna call it's all basically same thing. -- You know divorce is break up so I have to move out of state have to lot of city. And a and a NH really their distress is as -- time related to they wanna be out yesterday. And so what I do is rather than going there -- minister 320 -- take 304560 days to close. You know -- check for five grand tomorrow immunity to property Richard and take of your payment for five years. And I'll be back. And and when you -- dad -- you're looking for something that doesn't have a lot of payments to make up in other words you don't wanna be -- I -- I don't -- -- I don't like I don't want you know a lot of folks chase chase -- easy enough foreclosures or tax delinquent tax list I don't like properties like that because. The -- The -- as you basically get this property for five or ten maybe fifteen K out of pocket in your restart the following week for you know 2030 over what you pay for you don't finance -- you -- -- your money back 2030000 down. It's a most of these dealers on at a breakeven or making money pretty quickly on them and there's a lot of ways to -- that you could have then you people do their rehab you could -- rehab there are any combination thereof. But the the beauty of it is usually don't you know need much money into it and whatever money do you put into you're getting back immediately. And when you say getting him back that's because your owner financing that somebody who doesn't have to credit right now somebody he may not have the social or whatever it the situation in maybe. And in -- social -- may not work because you've got a call. I'm now well you've got -- -- Dodd-Frank qualified mortgage standards are just as in January but those are still not on the definitive but not definitive meaning just like Fannie Freddie guidelines -- interpretive. And so your your biggest you -- -- -- make it through the ability to repay is there but there's there's a bunch of ways to do that. And then not. She is just not an issue in the happiness I know aren't aren't even paying attention to that too much and in a lot of national investors in a -- a lot of folks -- California's a matter of fact. They have tons of programs that are not dot frank compliant and there's just stand at the risk is not there. And you did your letter from Wells Fargo the other from Wells Fargo that said. We realize that you're serious note please call in to go over the assumption process. Or the second part was -- back to the owner. And there was one other option after that it was but it wasn't threatening letter I should talk to these people a couple of times I think that they easy matches are not gonna foreclose on the property because you've got they've got to performing note. And interest rates are not significantly -- everybody says well they're gonna start calling these things do if interest rates go to 161718%. In Jimmy Carter days. Mean it's again maybe. But right now -- he's out -- interest rates -- for you know. Four and a half percent of -- most of these notes are going to be hovering right around there as an actress and the 152030000. Hours it takes to foreclose on a property price when they got performing note if they just not gonna do it yet. Then that makes sense now when year when you do in this. Assumption you're looking for the owner finance guy we'll let them for what type of many -- -- finding. Personnel have 20000 center. When he thirty now we got to cut this conversation is in about thirty seconds left and -- get a commissioner any final thoughts commissioner. -- for your term in office you know just just one big thanks for. Having me. On the program I mean I I learned something tonight an immediate you tell them. Pretty in watching over here and and trying to take the middle notes him -- don't know that I'm gonna go out and by simply -- but you know -- every time that I have. And often -- this it's. It's it's always a benefit for me so thanks for as Camille Little program and but in October I come back wings don't adapt and you have absolutely -- to thank the commissioner for come on you're busy guy from now voted for him to support you two until he decides not running and I appreciate that alien enjoyed having you guys are gonna be covered three surely get -- to -- DNA in action for happy hour. CL later.

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