Fannie Mae Homestyle Renovation Loans are Great for Real Estate Investors.

Pictured, a prime candidate for a Fannie Mae Homestyle Renovation Loan.
Located at 3751 Seguin, Dallas Tx, this 3/1/2 on a corner lot has hardwoods throughout.

By Troy Corman, www.t2realestate.com

The Fannie Mae Homestyle Renovation Loan is a great mortgage loan solution for real estate investors. Unlike the FHA 203K loan, Fannie Mae's Homestyle Renovation Loan can be used on second homes, investment homes and it can also be used simultaneously on multiple properties. Properties with up to 4 units qualify, so a duplex, triplex or 4-plex can all be financed and owner occupancy is not required.

This investor loan allows investors to use Fannie Mae financing to purchase properties in bad condition that previously could only be bought with cash, or hard money. The cost of the repairs can be rolled into the mortgage, and the repair costs funds are escrowed, and then dispersed to licensed contractors who complete the work. All contractors must be licensed.

The Homestyle Renovation Loan is much more powerful than the more familiar FHA 203K Loan in that it allows for larger purchases and repair budgets. Also, up to 50% of the ARV, or After Repaired Value, can be used for repairs. So, if a home has an after repaired value of $200,000, then $100,000 in repairs would be eligible for financing.

Minimum down payments are 5% for owner occupants, and 25% for investors. A 10% contingency is required. Unlike the FHA 203K loan, cosmetic repairs and luxury items like swimming pools and hot tubs can also be financed with the Fannie Mae Homestyle Renovation Loan.

The loan can also be used for those looking to add on to their existing home. Contact me at 214.690.9682 for additional details, or if you need a referral to a Fannie Mae Homestyle Renovation Loan mortgage broker.

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.

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Why it May be Best to Sell Your Home Now.

By Troy Corman, www.t2realestate.com

Now may be the best time to sell your home. From a local perspective, if you have a DFW area or Dallas home to sell, the available inventory for sale is about 20% below year-ago levels. In fact, DFW home for sale inventory is now below a 5-month supply. That means less competition to attract able and willing home buyers.

Nationally, the economy seems to be improving. Unemployment claims just hit the lowest level since 2008. Plus, shoppers seem to be spending more this holiday season and feeling better about the economy.

Now for the areas of concern. That European debt crisis. The jury is still out on how this one will play out, as the recent wild, daily stock market swings attest. A severe slowdown in Europe has to have some affect on us locally at some point, as Houston and DFW are the 4th and 5th busiest US exporter metros. If we are affected in a big way, it's likely to send would-be home buyers back to the sidelines.

The last wild card is the "shadow" inventory of foreclosed homes that have yet to hit the market. DSNEWS.com just issued a report stating that nationally there is 1 home (delinquent or in foreclosure) in the "shadows", for every 2 homes currently for sale.

According to Corelogic, there are 1.6 million distressed properties that are not yet on the market. This represent about 5 months supply of inventory of distressed homes, while a 1 month supply is considered healthy. The top six states which account for half of the "shadow" inventory include Florida, California, Illinois, New York, New Jersey and Texas.

The shadow inventory includes 770,000 homes that are seriously delinquent, 430,000 are in foreclosure, and 370,000 are REO (owned by bank or lender) according to CoreLogic's report.

To read the full report, visit DSNEWS.com

If you would like to know the precise market conditions in your neighborhood, you can reach me at 214.690.9682. I'd be happy to help.

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.


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The Safest Way to Learn how to Invest in Real Estate.

By Troy Corman, www.t2realestate.com

There are countless books, blogs, radio shows and seminars about how to invest in real estate. It seems that most of the real estate teaching gurus know that it's easier to sell dreams of riches, than it is to actually sell houses.

The books, blogs, radio shows and seminars are EXACTLY where you should begin, but not end.
Success in real estate, like life, is all about action. Action, action, we want action - A, C, T..... I, O, N!

If I wanted to learn real estate investing in Texas, I wouldn't drop a few thousand dollars on a seminar if I were you. Instead, I'd invest a few hundred on the real estate investing training program taught by Lifestyles Unlimited. It's led by a charismatic leader, self-made multi-millionaire Del Walmsley. Originally out of Houston, they now have field offices in the DFW area in Los Colinas, and a central Texas office between San Antonio and Austin.

Lifestyles Unlimited teaches how to invest in both single family homes, and multifamily homes, AKA apartments.

The Lifestyles Unlimited investing strategy is exactly what I would recommend for the first-time or newbie real estate investor. The goal is to buy a single family rental home that is a distressed sale with an ARV, or after-repaired-value between $90,000 and $120,000. A distressed sale could be a foreclosure, short sale home, or a home that needs work. If you can buy and rehab a rental home for a total cost 25% below market value, you should be in great shape.

Ideally, the single family rental home should have 3 bedrooms and 2 baths with a garage. It shouldn't be more than 1,700' and it should be a one-story home. Larger homes and 2-story homes require more labor and maintenance costs.

Your single-family investment rental home should also be a 1980 build or newer. Often homes built in the 60s and 70s in Dallas and the DFW metro have outdated floor plans, aluminum wiring and cast-iron plumbing pipes. Also, our expansive clay soils can wreak havoc on the foundations of these older homes in foundation-challenging areas like Rowlett, Lewisville and Carrollton.

Another great benefit for real estate investors are the terrific tax write-offs. For a Texas rental home worth about $100K, a real estate investor's annual tax deductions would total roughly $10,000. This includes depreciation of the building cost, mortgage interest, property taxes, insurance, maintenance and advertising.

I would expect 2012 to be another banner year for real estate investing, especially in the major cities in Texas. Rental rates continue to climb with few vacancies. Out of towners continue to flock to Dallas, Austin and Houston in search of jobs and more affordable living. In fact, some economists predict the Texas population could double by 2030.

Buying and rehabbing investment real estate is how I started my real estate career. I've bought and rehabbed a dozen units since 2005 so I'd be happy to help, or just answer any questions to help you get started.

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.
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Five Ways Real Estate Can Reduce Your Taxes.

By Troy Corman, www.t2realestate.com

I don't know of any investment vehicle that can compete with the great tax deductions that rental real estate investors enjoy. Rental real estate investors get to deduct insurance, advertising, repairs, interest expenses, property taxes and depreciation of buildings and appliances. On a $100,000 home in a Dallas area suburb, tax deductions are roughly $10,000 on an 80% loan, just including taxes, mortgage interest, insurance and depreciation.

Below are a few additional real estate tips to help reduce your income tax liability.

1. Rent deposits should not be counted as income if you plan on deducting that money back to the tenants at the end of the lease.

2. On the sale of your rental property held for more than a year, you'll only pay capital gains - or 15%, versus the regular income tax rates (that are likely to head higher). You should also deduct commissions, title charges, recording and transfer charges, and settlement costs.

3. The costs of building your own property web site, as long as it's an ordinary and necessary advertising expense is deductible. Others include newspaper ads, signs, banners, and postage for direct mail.

4. Sell your homestead to yourself with a S-corporation. With this method, you are able to satisfy the requirement of occupying a home 2 out of the last 5 years to avoid paying capital gains. Say for example, you wanted to rent out your previous home to tenants for a long time period. Well, you could simply set up your own S-corporation and have it buy the home from you personally, and book the profits tax-free - as long as you've lived in the home 2 out of the last 5 years.

5. Refinancing your rentals. Once your rental home has appreciated in value or you've paid down the loan quite a bit, you can refinance the home at a higher loan amount, pay off the old loan, and put the excess cash in your pocket, tax-free. Of course, you'll have to pay closing costs associated with the new loan, but it's free income.

If you have multiple homes, you might consider refinancing into a portfolio loan. A portfolio loan would include multiple properties on one loan and could make it easier to qualify for additional fannie mae and freddie mac mortgages.

Lastly, there's never been a better to buy rental real estate. Foreclosures have subsided but are expected to swell sharply in late 2012. At the same time, mortgage rates are at an all-time low. Plus, ask any landlord, the rental business is booming! And real estate is a great hedge against a weak dollar and inflation, which is sure to surface sooner or later as Helicopter Ben has printed trillion$ with a "t". In fact, farm and rural land prices are setting new records in many parts of the country, right now!

Just remember, studying and learning will not get you to the promised land. You've got to take action. As they say, words without deeds is dead. I'd love to help you if I can, as I've been buying, fixing and renting Dallas area foreclosures since 2005. You can usually catch me on my cell at 214.690.9682. Best of luck!

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.

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Fannie Mae To Pay Up To 3.5% - Covering Most Of Buyer's Closing Costs On Homepath® Properties.

By Troy Corman, www.t2realestate.com

On January 28, Fannie Mae announced sweeter incentives to attract qualified buyers to their foreclosed homes. Savvy Dallas home buyers stand to benefit. Fannie Mae will pay up to 3.5% of the sales price for a home buyer's closing costs on it's Homepath homes.

To qualify for the Homepath incentives, the home buyer must live in the property as it cannot be used as a rental home. The home buyer can choose between the Homepath home closing costs assistance, or the home buyer can receive assistance for the purchase of new appliances.

Dallas home buyers who purchase Dallas Homepath homes, can also qualify for Homepath Mortgage plans and Homepath Renovation Mortgage Financing, which requires as little as 3% down for a down payment. Some Homepath mortgage plans also do not require mortgage insurance, which further reduces the monthly mortgage payment.

Dallas foreclosure Realtors report a sharp uptick in home buyer traffic (not yet reported by media outlets, since closings generally take 30-45 days from executed contract date). If the economy and home buyer confidence continues to improve, look for increased competition and more buyers fighting over Dallas Homepath homes and Dallas foreclosures in general.

To view Dallas Homepath homes for sale, visit http://www.homepath.com/

To get help from a Dallas realtor who has personally purchased six Dallas foreclosures, and knows the ins and outs, contact Troy Corman at 214.690.9682.
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DFW Area Four Seasons Gets Foreclosure Notice

Wall Street Journal article summarized by Troy Corman, www.t2realestate.com

Search Dallas homes for sale at www.dallashomes2buy.com

The Four Seasons Dallas, located in Irving, Texas and home of the PGA's Byron Nelson Golf Championship received a foreclosure notice this week. The 431-room hotel was bought in 2006 by BentleyForbes Holdings LLC, which failed to make it's October mortgage payment. It seems it was hoping that the mortgage servicer, CWCapital Asset Management would revise the terms of the loan - since the hotel's cash flow isn't covering the $10.9 million interest payment.

The owners claimed that they have acted in good faith, and point out their $60 million renovation of the property since they purchased it in 2006.

The Four Seasons hotels in San Francisco and New York are also in financial trouble, as cash flows no longer cover the mortgage debt.

Commercial Real Estate Blows To Increase In 2010

American Banker article summarized by Troy Corman, t2realestate.com

Banks will face major problems with commercial real estate in 2010. For many community and regional banks, it will be their biggest headache. Many talking heads are usually referring to CMBS, or commercial mortgage-backed securities when discussing commercial real estate. But many local and regional banks hold whole loans on their books. Most of these loans have short maturities of around 3 to 5 years. And many were financed during the boom. As many commercial assets must refinance out of those loans in the next few years, the problem is that the underlying real estate has declined in value so much that it is now under water. And it's getting worse every day. Each quarter, non-performing loans and commercial mortgage delinquencies are rising.

There is nearly $40 Billion in problem commercial real estate loans but only $5.8 Billion in commercial REO, or properties banks have seized through foreclosure. Unfortunately, the problems are accelerating.

Sooner or later, someone is going to have to pay the piper, and let's hope it's not the American taxpayer again. For those with access to capital and real estate investing expertise, the next few years will mark a golden opportunity.

First Look Program Allows Owner-Occupants 15 Days To Bid On Fannie Mae REOS.

By Troy Corman, t2realestate.com

Fannie Mae has implemented it's "First Look" initiative to allow owner-occupants a chance to buy Fannie Mae foreclosures the first 15 days they're on the market. Investors and those not intending to live in the home can only make an offer after the first 15 days have passed.

Fannie Mae is also allowing owner occupant buyers up to 45 days to close, 15 days more than normal. The First Look initiative is intended to help owner-occupant buyers and low-income buyers.

This initiative will probably help a few buyers but it will undoubtedly slow down the foreclosure purging process that needs to take place. The sooner we can purge the foreclosures, the sooner ALL home owners can benefit.

Attending The Five Star Default Servicing (Foresclosures) Conference

This week in Fort Worth is the 2009 Default Servicing Conference. It should be quite interesting. I'm looking forward to gaining more education in the foreclosure selling process and meeting with some of the servicers and banks that need help marketing and selling their Dallas/Fort Worth foreclosure properties.

According to Friday's edition of Investors Business Daily, industry insiders believe that as much as 70% of foreclosed properties nationwide have yet to be listed with real estate agents and brokers. Nationwide, distressed properties accounted for nearly a third of the 5.24 million homes sold in June.

"Adjustable-rate mortgages will trigger the next wave of defaults, which will make the subprime meltdown look like a walk in the park," according to Rick Sharga, with RealtyTrac.

Michael Barr echoed that statement in a meeting with a House committee last week. The Treasury assistant secretary said, "Expect millions of foreclosures ahead" despite loan-modification efforts.

Jeff Frieden, CEO of Real Estate Disposition Corp, the nation's largest residential-auction firm shared in those views. His quote, "we expect 2010 to be a watershed of a year for us as millions more of foreclosures loom. Some have sensed it's the bottom of the market; we feel that's a false sense."

I'll compare these sentiments with those attending the foreclosure conference this week. But if these guys are right, now would be the time to sell if you're sitting on the fence - because I would expect a big wave of foreclosures will put downward pressure on most sales prices in 2010.

More Foreclosure Bargains Coming - Faber Report: Jumbo Pain - CNBC.com

Dallas, TX Foreclosure List Report.

Dallas area foreclosures and the percentage of foreclosures in specific areas. For help locating and buying a dallas foreclosure, contact Corman Real Estate.

FOR SALE/FORECLOSURES/%

Addison, TX Homes 615 / 24 / 3.9%

Allen, TX Homes 418 / 23 / 5.5%

Anna, TX Homes 114 / 14 / 12.3%

Carrolton, TX Homes and
Farmers Branch, TX Homes 528 /47 / 8.9%

Coppell, TX Homes 135 / 3 / 2.2%

North Dallas, TX Homes 693 / 20 / 2.9%

Dallas White Rock Homes 1,233 / 117 / 9.5%

Farmersville, TX Homes 39 / 6 / 15.4%

Frisco, TX Homes 1,248 / 137 / 11.0%

Garland, TX Homes 842 / 99 / 11.8%

Irving, TX Homes 718 / 47 / 6.5%

McKinney, TX Homes 883 / 64 / 7.2%

Mesquite, TX Homes 724 / 116 / 16.0%

Park Cities, TX Homes 666 / 14 / 2.1%

Plano, TX Homes 1,104 / 58 / 5.3%

Richardson, TX Homes 308 / 26 / 8.4%

Rockwall, TX Homes 778 / 72 / 9.3%

Rowlett, TX Homes and
Sachse, TX Homes 335 / 38 / 11.3%

The Colony, TX Homes 178 / 15 / 8.4%

Wylie, TX Homes 336 / 30 / 8.9%