Jul 31, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Beyond that mortgage your work we've done Susie. In Austin where you just authorities since 2001. Have a question for John about your mortgage calling live at 51239. And thirteen seventies. Now here's John. And welcome to show -- restaurant she's young. Here Microsoft producer and director partner officer Michael -- good evening John came I came Michael got a great show today we also to special guests joining the show. Investment expert -- Manso sky realty. He hasn't done a great thanks for -- and we've all cigar run your rice Farmers Insurance thank you for having these are absolutely actually -- by the desert here. So we welcome your calls today's show's going to be all about investing real exodus from -- many different angles so if you were thinking of buying selling. Locating an investment property financing and investment property. We're about flipping property today and some trends -- math and if you are. Thinking about. You put your toe in the water as an investor. This shows just California. -- stay -- we're essentially about some risk management strategies were -- -- -- insurance. Are -- investors little different here to hold that from policy when you're when you're an investor. LT we're really sort of there's we found in exclusive. Your -- -- here here. Hot buy out there are -- of property discuss some really good commercials tell you about. We're even gonna bring -- a real wise investor. There are investors out their swimming around -- Austin remembering want to share with us and I get some idea of his motivation -- what he was looking for. He kind of pretty neat deal here in town. And if we have some time -- about a program called USDA it's it's a program you can firehouse with very little ground zero down actually. Here's -- taxes and it's again it's a very powerful program right now and if you have heard of it. You stay tune these to attend so we welcome your calls and emails phone lines are right now it's 5123 and a thirteen so I mean that's 39013 seventy. You can also find us on FaceBook search Austin mortgage report. -- it's gonna FaceBook with the -- more than freedom -- their posts and comments there will weren't strong on the con -- here. And I can email me anytime at John -- also mortgage reports -- comments John Ross Morton for -- But they -- guys Austin is an awesome porcelain and I was just on the street had this. Little place called love be feared that. Nervous if I -- little French bistro. And it's just one of those I don't I don't. Spend much time -- town. But I was driver and ours is amazing how. Many of these little restaurants -- -- restaurants places of very nice restaurant and the prices were. Not achieved here very nice and they say open I mean so this is an awesome -- in a hole he says is just exploding. Really yes it is it is because it's amazing that. There's enough people it live close fair by you that the commission for those price points it's up pretty Ron journal loss tonight. Yes yes I am in certain generation native last night. You probably -- see this is down by a lot top -- of that gosh almighty after this year. This place this Sunday goes a long time ago since -- wealthiest woman in America president. -- so well. We're gonna we see you got a quick break don't remind listeners were 51239. Of thirteen seven that's three nines or thirteen -- Gives the call it lets you run to cure. Picker called help you out. Just investment questions or Philippines to zero their program USDA. Gives the call for some homebuyers. Are out there and you're listening -- -- -- popular as well. You listened to us more support a joint chiefs you'll be right back with some. Me and her time. Welcome back to the Austin mortgage report on -- thirteen seventy. Feel free to join in the conversation at 51639. Note thirteen seventy once again here's John -- And welcome back the -- all reports. Were talking and investors today and I brought an investment expert. -- -- -- Realty here in Austin Kirk -- insult thanks for joining us again happy to be here. Well we were talking this week you and I was talking about that. My desire to have this is that as a show topic tonight right and your name came right to mind because I know he worked for investors and have a lot of experience in Austin. We're not only living her long time in which means you know the area very well but you guiding investors make Smart decisions and so thanks for taking time yeah absolutely in the do a lot of property management to them. -- -- -- -- -- -- -- Yeah absolutely absolutely you know one of the questions I was thinking if you can help us with this. You know an Italian guy everybody would invest from -- down to good place to start. Yes you -- the -- most common questions I get especially in the first starting to work with hoaxes. You know how do you weed out the crummy ones from. You know the -- did you rules the stars right -- them. It is not really just a way to search bath. Brought online can't you can't there's memo less that lets you search listings but how do you know what from your investments right. -- there's so much information when you look at when you look at a given MLS sheet you know dislike all this data is just crazy. So I came up with a couple years ago. I didn't come up with this formula but I just came up with -- a kind of a tool that folks could use using it's called cash on cash or -- Formula. And now our -- return on investment right correct correct and so basically its a method for running some quick numbers. Through -- you know in a consistent way on every property that. Let's say you have ten you're looking at anyone know which which two or three or the one you really want to zero in on him. And you can sort of run these numbers pretty quickly. And come up with a raw. Mr. Roth percentage -- borrow that our our line number so that you. You know the higher the better of course -- and basically it's it just involves taking union of your total rent it is stated that -- -- supposed to beginning. -- total expenses and as you subtracting out what you figure your mortgage payments are going to be you know whatever amount that you're putting down in and so forth. And then that this year before -- cash flow and the divide that simply by your initial cash investment. You're down at the bottom line as it gives you a number yup. That that helps easily say OK is this probably worth are not here yeah number and -- like seven point 5% try to. Verses let's say you've you do ten of them and you've got another one that's nine point 3% he got another that's one point. Seven period when that they don't negative didn't -- So that kind of you know if you get ten or twenty yourself. You can narrow it down pretty quickly. That way and then you can start zeroing in on you know a little more in depth analysis on which ones you might wanna go see and and so forth. Friday when a lot of institutional investors that it used similar systems we just it's old data driven there's no emotions -- Does this property to provide the right rate of return on that doesn't take off what threat to the use of something mentioning when we are talking this week about. How certain investors have. A certain. Appetite for certain properties so you know even though. And the Miller sometimes it is emotional form that you have these yeah a desire -- certain type of property and it's not all just numbers from restaurant right. Yeah I mean that I think what we all have subjectivity and objectivity in this end and to different degrees with some people are much more just just the facts ma'am you know that kind of thinking and some -- have to have they sort of have to fall in love with even with -- an investment property. To -- emotionally involved and be willing to do you know -- that money into it take the risk and so forth. That's colored by a stocky like I mean you can buy a stock but it. You know some investors. -- fun with it yet as they buy stocks that. Our company's election user IDs so I think the most successful ones as -- affronts. Yeah yeah I mean it is interest and it really have never thought that this quake itself like work Brett. You might be able to have fun. Buying property because there. Maybe you always dreamed of carrying -- house with a certain type -- for him or something right you don't live in and -- you don't remove your for your family because by the house right. -- -- kind of made your real crux childhood dreams got a -- unsure about. Mean I've had several folks that and just bought a residence and were fortunate enough to be able to qualified to to purchase it without having to sell the first one. And they really really wanted to hang none of that first win just maybe they had for years and they just they've always wanted to have an investment property and then and now. People get really excited when they're able to hold on to more than one property I think often. I think that's an evening to you -- you know that our biggest need that we just came up this week is that it's it's I don't really learn something near have a new insight into investing. You know you keep covering enough property management side of it. If it can be a lot of work I mean and that's why I tell a lot of people but if it's worth the money to get a property manager in a lot of cases because. Doesn't mean you're if you're if you -- on the problems and assuming you we have to -- he doesn't necessary mean you have to do and find tenants fret that the tenants. Take the calls at midnight yeah you know in the water heater breaks for and you can own property for fairly nominal fee to -- -- my view threat to deal with that stuff. It and it's it's worth the while. Often that that feed because that it's just. It's insulation you know it's that you got enough headaches deep you know looking for your next deal making that happen doing it in the Smart way. You know let somebody else take care of all those details that it -- you know when the water heater breaks for whatever. So I don't want to ask you. You know that there's a lot of different types of property. And I think when people think of investing on Sunday thing quotes can be do plaques -- for sportsmen but -- -- what goes into the criteria as far as. If you buy single film announcer multifamily. Yeah that's another thing that the young people asking a lot and I I have a tendency to always recommend that. You could certainly make money buying and holding single family homes but. You reduce your risk and increase your ability to keep your cash flow going if you. Really try to stick with Maltese. Duplex is tri plex is four plex is because. Is just common sense you know people do flake out on their least you know things happen sometimes it's a good reason that they break -- not what whatever. If you're just holding a single family home as your only investment property and you lose your tenant there's going to be a gap in your cash flow. And if you got a multi you know you lose one side -- you lose one out of four. You've still got you know some income coming in to cover you're not -- -- left out there hanging. So I'm in general I I you know I say. Stick the. Maltese. You know as as much as you can't do -- -- safe in a similar carriers some -- have a lot of times. I'd sit duplex. Doesn't cost much more than a single family house down the street it's it's real Linear phenomenon it is is now it is. Yeah I mean you can it's you know the old two for the price of one. Or three for the press one kind of thing in. Is just the better overall situation I think in in in most cases Friday. Well there's certainly a lot of folks buying leasing of cameras out there oh -- -- from my house all across infect one of the reasons as to show topic. Came up for me was that. -- 100 realtors real estate agents I'm working with their buying property to hunt I think it's interesting because I -- saying net -- You know when somebody says who's the best time by proper answer well. -- three years ago it was the best of course if and when was the next president well two years ago as private and don't you know last year was. You know better than this year we -- the ideas that prices have just kept going up right inside out. And a lot of people think where some sort of premium right now. And so why would you find custom property yet. I can name. More than one hand of you know more than five agents somewhere -- right now that are action by investment carbon in this market and publishing phenomenon I think. When we -- seeing. You know like John McClellan says -- It's what drives the market is jobs. You know Austin right now is just -- hothouse. For jobs is just crazy. That that young everytime you turn around there's somebody some new company saying -- they're gonna be moving here they're going to be opening an office here whatever. And them. I think as long as that continues that sort of crazy job creation engine keeps running -- that's gonna do nothing but continued his. -- you know keep our prices at least stabilized but sort. Really drive him up and yet when he of the interest rates -- to the other rates or player. Bound to go sometimes and I think he's right I certainly don't know into about the -- and Canada and actually got a little bit taken advantage of those -- political interest in mortgage. Related. Things that relate to investors as you know. You generally need about 20% down about investment property -- There is there our the we actually have a permit to -- As little as 15% down your -- mortgage insurance announced that affects your cash for a bit from right deal can work from we are buying a multifamily. It's important note ED 25% down some twenty that was it's got two or three units -- went for five of them. Some other things that come up is. You know is I mean can you just keep buying them you know if you have enough cash -- can just keep buying them and you I would encourage folks to. You know in not every lender will treat the person that property the same way from the guidelines. -- very little bit and for example one of the things that will do my offices. You -- will allow home I'm an investor to use the cash flow for the anticipated rental amount of the popular buying towards qualifying. So. If the property cash flows well and they often times the income from the in this generation of property were offset the mortgage payment and they can -- even though they mean I want to discretionary income and expense so yeah do initially have to be rich to buy invest in property yeah it's it's leverage -- here. But I know that a lot of winners will you do and I've curve. Folks that are you know looked into this. They found out they don't qualify in the stopped there but app called make a few more calls or might be a way to do it get this thing strategists -- -- I want to ask you about it. Is. You know there's a lot of investors that are able to buy properties with cash right -- your mortgage what what's your what's your feel about that we think about. Mussina out there. Will. I know that. Over the last two to three years as. As the real estate market nationally has been recovering a brilliant all over the place that. You know. I don't know two thirds of the last couple years were in and then when people buying investment properties they're buying with cash and I think that that is probably slowing down some and that people are going Morgan. Two. You know getting mortgages. Every. Every investment both that I never read. Stresses the using as little of your money as possible to stretch out and can get as many deals going as possible. Empire and so that that philosophy you know says. He's somebody else's money as much -- right right but is it true you have to pay cash equity deal. Now. All cash means. On any transaction is that you're gonna you're gonna close sooner maybe you know. To a buyer pays -- me to a seller. And they're all they care -- the Ronald line you know and they -- they wanna get their money they wanna get as much money as they can't. And if it's it's the same price than they're gonna now at the same. The only difference with cash is usually that nearly keeping close -- grilling him. So. Well and there's ways around there's ways to compete against that cash fire even if your mortgage to for example. One of things you can do is get qualified for the -- get approved for the loan at a time so that. Most lenders have they've already approved you for the loan. And you get -- average customer Contra commanders that are -- is little couple weeks yeah. Mean you know when there's India and we cannot yet. Sybase you just in -- appraisal different from -- good clothes alone right so much is shortens that process so. He can compete at that cash investors say hey wanna pay cash. And closing two weeks well enough -- to mortgage to do anything about cash is is when the property is in. Or condition that they can be heard your mortgage aren't true. You know and in the -- after that is that is or mortgage Eleanor. Most wars and Jeanne thank you worst case scenario we do alone in the house. And is borer loses their job the first mountain and can't make their payments and we have to foreclose what are we left to. And no bank in town wants to be left with so of course you probably don't want to work. There's there's no you don't have -- staff for the facilities throughout fix this thing and they don't want that so that what they want probably isn't it. Average condition -- -- subjective but they want somebody -- in decent shape price for it right but it. One way to kind of use the cash -- house. Is that you can refinance to Decatur -- equity back counts he could pay cash for it. On the property and watch them you can get a better deal -- -- a lot of work because. You base eliminated anybody who can't pay caption from the equation so only folks -- don't pay cash under by after -- property. So it could be a great opportunity and he can do is coming to refinance. Take the cash out. Under Castro alone and mr. you have to -- and are some undervalued socially -- townhouses for 300000 and cast. You can either refinance on the house and get some 5000 -- And so. And then you can use your said he 5000 by the next after that the leverage. You know something else it's interesting to -- is that there's there's -- age old attitude. And I still run into all the time that if if you pay cash you can just put this low ball offer out there and and for some reason they don't pay attention to -- and especially in this bargain in Austin right now it you know people pay attention to what the cops say. And so you know cops the cops here -- sales and slipping so basically you know. It doesn't necessarily mean just because you've got cold hard cash that you can pay less than somebody is going to be in a long. Well so bottom line is pier restaurant they're. Personal with a different producers near call -- after we -- you're here 51239013. Seven we're live here. I got a great team here to answer questions. But Carl we learned years it's not as hard as you might think to buy investment property do you need to have troops and in many cases. But it is and you have to make a ton of money. From an income standpoint -- come here on the property -- to support the payment. And you don't always have to cash -- mortgages and about thing in this era so we're gonna we have a lot more to talk about got your break when we come back though. I don't investor work with it just went under contract and organized kind of pick his brain on what his thought process. It was unwise buying right now and what criteria was looking for. He was making them purchased here the awesome or deport John -- see -- hurt him so we've got -- -- here my correct. Ramirez back. It's -- and mortgage report with a thirteen year mortgage veteran John she'd be on top thirteen 78. Welcome back to the Austin mortgage your court on top thirteen seventy. Feel free to join in the conversation at 5139. Out thirteen -- once again here's John C seemed to. And welcome back to. Just -- reports. Glad to join us tonight -- -- numbers 5123 and a thirteen seventy that's 39013. Seven you can always follow us on line. From our website awesome mortgage report -- -- jump on FaceBook. Just search for -- the -- to search for awesome mortgage report. It ends where are here with -- -- sky realty feel hey you're -- have a little. -- could have run your eyes to farmers insurance and got my caloric opens produce a show blue roof BP and two. We're talking about it's all about investing this show so if you're just joining us. We -- -- we were -- crack team here to help -- Make a great decision if you're looking to buy investment property -- finance investor and invest -- property we're going to be talking Iraq flipping. Here in a moment but I wanna bring arm when my clients. Who is just recently -- -- -- a contract. As an investor. -- -- -- Mark thanks so much for taking time. Don't we've been talking the about how many folks are buying investment properties in this market. That some perceived to be sort of an inflated market but yet there's a lot of investors and including real surgeons themselves vying. I know there's real citizen you know I know Jolie has fought two of them so a lot of folks provide investment properties. And I wanted to kind of secure Blaine about. What was your criteria when you're looking to buy an investor property. Well kind of the most important thing. He's -- -- You know. It was relatively close why else would it accurately. The property well below our feet. Will be driving all round rock art work that well off -- -- It's gonna help there -- itself off and that was able Biden won it looked like. Oh ops but it cash flow -- at our fellow. At. All. So so your few know it pioneer lets -- locate similar. Outlook is what would keep it all out there -- You know I app -- -- -- That all network. At all word. Were fired up that I've built up to ensure it. You know -- Did you -- this idea kind of what their pressure was set how much. How much you know if you knew was there ratio there or was it -- dollar Maarty Leunen met. The other ruler at the door. I wonder at least clear you idiot 300. Cash flow. Just a day -- and show over the are -- basically. There oust her corporate right now also -- yeah. You know they've learned a property in the -- to. Oh. Basically out of the spot oil imports either college -- just so great wage and I'm a field goal ought to -- and every year. Eighteen years that we're gonna be -- a lot of money it's gonna be cashed by start it out you could make this a little bit every aren't all other -- ET I. A lot of but the college. There was not even born yet. You've already got a business plan forum. A lot of life lessons and for college paid for. With the lead in the. Actually important like what they are or -- -- He'd be here and -- people. -- -- That's you've got the great well it's got chills when you set I mean that is really need an absolutely fit that that was part of your decision on why wonder by Russian park. Was there any other criteria looking for single family do plaques. -- you know what you know -- I owed it duplex -- Where I live and that's what I soul. They're. I heard that -- thirty experience it like I. Down here so by that policy there may be successful well. Like people went home it didn't really got much difference. It was. It basically the right write or -- the call -- -- We don't rattle parts bought out also keep up there are now. -- you -- even close recent poll are next in cash or a little bit audit work. Been saying -- walk all ergonomic. Well. Guys get in any other questions for mark here where we're gonna mourn. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Actually that was backup that was planned I I like where we're debating either read by children at each child we could get -- That's a beat they're third at stake there responsibility. L oh oil -- old equally by the bright college kids. All after -- make it up or are at stake but I don't think I will well. What a great plan. That is me I got one on the way announced -- calmer effect and if that -- that what a neat when he thinks so. You know the fact that that this could be a college savings plan. Is it is a great point one fooled by investment property for that. Last week on the -- were talking about college real estate and and what a great lesson that is when you have a student on a college. To go and byers you know a Condo or small house for some from the live and wrapped his buddies and he learns what is not real soon learns about. -- some ownership in and something has -- or anything out right and and that the value of money in maintaining things and and and then when he I know a lot of parents to do this when they -- deciding to keep better presents his son daughter to be daughter -- The villain keep that are so when he had -- don't Collison and they have money for the dump him in the first house they buy right. Pretty opportunity and so mark fix -- for joining us -- appreciate your time. Parent partition. So. Guys I was pretty New London however many we covered so many different angles on unwise is it wasn't just. He was just trying to make a -- we'll talk about -- saying. We talk about the emotional. Contents if you know the urge to buy the urge to invest. Then this -- more emotional involving your offspring in it doesn't mean not at all not at all. You know but I was. For gotten more bizarre it was a financial planner and -- like out of financial plaintiffs and you know in the mortgage business are really wanted to know real -- somewhere. Years ago was that. When I want to talk to the folks -- the most money. That I knew -- met that you know city and Sam in the business wanna be your vice. Overwhelmingly the folks that were what I would call independently wealthy or close to it when he -- They got a real -- they got well real estate or business -- -- business from current or real state a lot of times. Real status is a part of -- businessmen and you know yeah partially is important but. But it wasn't it wasn't buying stock -- was just a little small part of what the -- -- vessel vessel when it might win and made them wealthy and so it. I think they're coming here is served well if they like to have. They wanted to have some what they said was they wanted to have something naked. Control the -- and feel like they control what. You know. Not a fortune 500 company does with their how to make decisions that they can make decisions on -- from a business or home. Real estate themselves and choose how they want to make it -- form right now. And well let's take a break you suffer great cure here with just more report we've got a lot more go in fact. When we come back one of the things we're talking about is -- hot property this is a great. Investment opportunity. The cash flows very well as you can cash flow what you know about that -- gonna talk to run your rice Farmers Insurance to -- Thought it was one -- the history through the door for some big changes. Out there. And mobile phone she Ron and we must hear from you were 512390. For -- so that's 5123 million. 037. Were also more support America. It's the Austin mortgage report with thirteen year mortgage veteran John you'd see on top thirteen seventy. And back to the Austin mortgage. Scored on top thirteen that he feels free to join in the conversation at 51239. And thirteen seventy. Once again here's the giants' easy. -- -- It was Wednesday at 7 o'clock it's actually almost 8 o'clock that -- -- Listen just more support live here in Austin, Texas. I rejoin us and you're going to be -- join us because you're gonna get to hear from -- looked lost tonight. Long time insurance isn't it. And truly an expert Heidi this is the guy call when I have. Mister McLarty. And -- would have a tough question. Sort out of out of the box question that some you were Asian losing in Iraq it's Iran arrest of Farmers Insurance thanks for joining received. Pay can't say enough but that gorgeous view from your office downtown that we're talking about you know. How losses trees and looking at skyline I mean that nothing's the same. And it never will be the same again. CC be in the studio and it literally downtown -- absolutely quarrel here right. Ron to muscle it through this show's about investing. You know where the pay cash for property where you finance it. Everybody you gotta have insurance right when you're buying and investment property you write down from -- I see a different side of it before I don't want surprises those same surprises over birthdays and anniversaries. Not invest in property and fast enough furniture out of. And a home. One of the first upset I suggest that people take this. -- -- a -- report finding insurance. Professional that will help you. Take a look at that homes for the last five years. You don't wanna buy -- damaged property for maybe. They've been paid. -- -- and that is why is the house has brand new carpet and brand new appliances and a brand new paint job. They took the money. And they need house ready but they didn't to the mold remediation and maybe they didn't replace it ruthlessly were paid to do so. You reallocate that money if this doesn't -- and I've seen this happen more than once recently actually. Where. Acclaimed shows. And they say munitions and his fit so well this should be near Richmond was mash unit and it was under different whatever the claims for a wasn't used to wasn't fixed. And win the house closes. Is not the time to ask the seller. And that seller's realtor prepay or because. They're motivated. In Dubai and we get that up on documentation. Before the insurance company. -- to ask for because listen everybody can close an insurance. But insurance company has sixty days to get off of a home but they can decline of property for sixty days regarding. Such is so much to do is beautiful and trying to sort of flood zone. You're exactly right sure reform are the flood -- change in Austin and -- -- -- -- so -- my folks in the nose and flood zone and and for insurance and she teased. End opinion where you Warren we could be as low as soon to 300 dollars or can be as high as eighteen. Hundred and that most certainly free John this effects in qualifying it's a torpedo this -- absolutely disqualify some so. Tell us about liability to -- investor that when your victory concerns reckons would that person slips and falls in the kitchen sure you know that you liable for that. If your and a landlord. -- -- -- -- you're liable for every Margarita party every. Conceivable everything that could possibly happen with a firearm. Trampoline. For many investment proper things that are completely out of their control. That's where in insurance comes in on the solution finder and I wanna make sure you don't find out the hard way that you didn't have enough. Insurance pays. Too much insurance no such thing not nearly enough insurance. Gonna cost a lot of money for litigation especially when children. Are involved. We we don't lose court we settled very very quickly because we're not gonna. Go into an arena with a child and a cast -- Plastic surgery. We're gonna pay eight K okay so an investor really wants to have the right amount in insurance. And never ever deceived -- light of a court ever. Right where some really considerations from another question just investors when there. -- -- -- We're winning I know what they want to accomplish with that if they have a management company we actually prefer that the -- ammunition companies. It's in our best interest for them to have paid. Professional that is looking over their shoulder. Benin. Ordering reports to make sure that. The person that they're gonna put in that property is not gonna be a liability issue for them so world is looking at for that as well. So is there is insurance more spent several suspense of -- -- to say we're comparing harassment by a primary residence pursuant as the semester and into the cheaper is a little bit -- -- -- -- it's more expensive simple because the owners not going to live in their properties so the risk is greater now we didn't some products. I'm very excited. Opponents where. The purchaser duplex or books xxx and the owner lives in one of those units. We write a special package policy that individual because we discovered of course with the owner on property. That we have -- claims that Tenet is less likely to do something. It's gonna cause a claim or bad behavior because the owner is right there on the property so we give pretty good discounts that but she. You have to -- to ask for a because many insurance companies and even some insurance agents. They're they're not gonna just give it to you if you don't miss Horton. Charge a little -- right so. First. Listeners who might just tuned in we're talking investor property near the automotive report. We're gonna run horizon Farmers Insurance to give us a call it got a few more minutes for 51239. Of thirteen seventy human interest questions and a question for -- What's the what's what you find. And CN word this. Most common. Area of insurance for the best -- their undercover. They get a great. Born in Seoul we we talked bricks and sticks and we don't care which paid three property we don't -- give a view. We don't care. What does it -- is we want to make sure that we can replace. The structure. So typically about a 105210. Dollars per square foot. His average price -- average home and then not only get into the granite countertop custom home the need be -- -- someplace in the neighborhood of a 13540. Dollars. Per square foot it's it's extremely expensive it's -- is cheap. To build a new house from a beautiful. News slant but try pulling down. Asbestos and earned cost of materials and you're talking hazard -- hazardous waste. Disposal and he gets very very expensive so there was coverage amounts are too. Coverage or no sir I we fight individuals on ensuring their homes or replacement cost they are caught up. In what they paid for it. And not what it's gonna cost tomorrow or maybe they did put. It's 75. A 25% down and there are including then what they want to insure the property which -- which absolutely is. Not in the business was doing that so we insurance professionals do we. And we don't helped a little bit of the gun that -- she gonna shoot yourself in the foot in -- Well let's talk. A little bit about him -- not flipping because. Kurt and -- then you have strategy there that I would are -- in this hour don't talk about what things have given some years you're secrets and slippers well out there. I just has some sort of rules of thumb that anybody is thinking about flip and house. Should always bear -- -- mean. One you should always expected to take longer than you think it's gonna take the meanest distant. There's lots of great vendors out there but. You know you you only have so much control over. You know when they're gonna show over -- gonna take them -- is we get that -- -- solve this special problem that crops up and so were so. You should. Just like the TV shows so yeah takes longer exactly exactly you -- that I'm fifty years number two it's always more expensive number two is the -- expected to cost more than you think it's gonna cost you know I mean you know and a little extra end -- budget you know after you really think you've really got it. Nailed down that's probably not going to be enough -- And I expect them not to expected net less than than you think you're gonna net. And so. And another thing is that I read the other day that one in five. Flips right now. In this kind of crazy -- we've got going on you would think there's no way to go wrong right but one in five actually does not make any money. -- -- -- don't look at the flip side of that is that 80% do so that's that's pretty didn't you know. -- will -- how much money is -- that's true I had strict diet I'd have read that RS hustled them on the yeah Internet yesterday about three. Three women who were all buddies and -- decided to flip a house they never done before they got in. Two it took longer than they thought and so forth they actually did. Turn a profit. A flight 22000 dollars but they split that between the three of them. It took the whole process was like six months and all kinds an excellent each you know walked -- and send -- 500 bucks. And so it sounds like a great way to ruin a friendship no kidding it's not a good. So you know. Heavy -- all that there's plenty of folks who are doing it in just. Poland in the doubt you know and so is just a matter of the only way you can. Did this successfully used to be experienced that have been the only way that you gain experience is by doing things them and so warrant. Good point well -- it but I cannot interject to -- didn't forget until I forgot until you mention -- but death. My -- company actually has a great. Insurance policy for a tool first you mentioned that -- -- nearly 369. Month periods of time. -- minimums however we have a earned premium amount. But to honor Sony five dollars that gives it. -- all the coverage that they're looking for without the commitment that they don't want. I think you mean if if they run short on budget because things are taken too long or whatever they need you build so I put something in there where they can draw. It's more money here what that was found. Most of time when it comes to build interest insurance. They kept our -- in this tournament time anything. XT exceed that which happens want to they have to buy another three month in but the comment another three month -- and it won't be in my goodness just need. Another two or three weeks that we actually opponent that. Fills that need and end the traditional teaching until Israeli time I'm a Mets have a product on the electronic -- but with the new front the we have yes you can and it's you know it's. Ruling insurance companies and actually does sent some real excited about that it's a great product that we have into. Meets settle -- that -- set a need for someone that's really really efficient and as for me. Well you know let's talk about a week we are talking past to become today -- with -- with faith specials from Australia China India wanted to know. One of your number one picks for investor was out there. Right now looking for sure cash flow or appreciation and you tell me we found that -- sounds exciting -- your. Yeah well actually I have an investor -- investors. New Jersey and I -- minister be sold yet. I know there's still -- -- right that's right our listeners around he's still showing is active. On my phone right now yeah. The look at him a phone and it's. It's a great location it's in sunset valley just may be half a mile is that. -- to send anyone it's a pretty close to downtown I mean that's central now ranked mr. Barry yet. So it's a four plex and I said earlier -- you know I really. I really favor of those multi so this is for income streams right. I think they put -- on the market for a little too much she's been on the market for not quite a month and hasn't sold in the starting at 475 it's just now down for fifteen. And each each unit. Has around 900 dollar. -- so that's around 3500 dollars. While on a 450. -- sales price and this particular one has just had a 1101000. Dollars in the improvements made they've replaced all of that out however signing with party. So I don't know I haven't been inside of it but -- mean it sounds like all the components for her you know. So it's just some quick math years ago quarter for details are purchase price. It's a four plex your -- -- to between fox and I define antenna right. Maybe some quick numbers here -- you looking at a principal interest fair about 1760. And tax on malware attacks are at around 5000 -- America. I'm gonna round -- so there's 6000 and and insurance run to the ballpark -- Excellent someplace and they wrote about an 18100 it was here OK -- around and a two under 200 bucks a month which between foreigner here -- -- -- have good insurance. We're gonna pay it and include our property taxes a total principal interest. To -- worst -- including taxes and insurance it's going to be 2560. What was the cash what was the income assuming all marina in -- is 3500 a little over 35 so. You make if all were ready to be -- -- 900 dollars a month. Yes and well liked about this property is if even one was vacant he still breakeven. Brett -- -- for basis and so. May be a much much risk there I mean -- for embodies kind of -- in their cash -- anyway they can afford now. You know it could be any property to be the property. Well youths -- displaces that's location location nations and so valid. -- was such regular tour has seen -- I've seen a lot of investors buying in this price range from buying these you know. He's for 500000 our properties as investments in Austin, Texas yeah. So the other teams out there. Guys who didn't toward the end of our show here I want nektar -- the new investor. We've got about one minute and only get two strategies. For somebody to them and you know once you come down on this for -- not -- just go find invest from property here's a couple other ways to do to one would be. You -- duplex a little -- inside. And -- the other side -- -- penicillin and so we talked about duplex is aren't necessarily. More expensive missing fairways and a lot of cases are cheaper in some areas. And you live once side regular site out. You may only do that for years so and union at least leasing your sat out the -- -- -- -- -- duplex to rent it out right but. I live in one side first was actually a way to do that with only three and a half percent down right now. So three and a half percent down payment you can buy duplex she can be an investor right. Second thing is I see investors do this bill via property. Live and for year. And then planned to move in -- -- -- year so every year they buy one property time and -- living there for a year that's not for everybody. -- if you're failing kids -- duke struggled to move once a year regret but some do it some love it because you think about how fast is ten years -- -- You -- ten properties in the -- what a great investment right. So it -- Because we do appreciate -- come on the show wanna look folks know how to reach your -- -- should investing. From the realistic side of her cover your hole you. Easiest ways is to call myself on the senate 5128798054. That's 51289. 8054 or you can easily just do a search on FaceBook for -- missile with sky realty awesome awesome and prime. Are wrong you -- insurance agency my wife and I error owners of power and little. Found comes here agencies so 5124480844. Wrong and he riots. Thanks for coming in guys trying to use an awesome board report your -- MacArthur here all week. This could cost more reports in the semesters but did you touch these guys Jason can surf mission short time ago and will be back next week with more. Great mortgage and real -- news. -- and Texas -- front thanks Trevor thank you press. It's the Austin mortgage report with thirteen year mortgage veteran John -- on top thirteen seven the.