The text on the image isn’t great but here is what it says:

Unique Renovation Financing from Wells Fargo Home Mortgage enables you to turn a newly purchase house into the home you have always wanted.

Your loan amount is based on the increased value of the home after improvements are made. With a low down payment you can do almost anything you want to make this house your home.

- Update the kitchen or bathrooms

- install new carpets or flooring

- Upgrade the electrical, plumbing and/or heating systems

- Replace the roof, siding or windows

- Make any repair or renovation that makes this house fit your needs

This flyer focuses on a buyer that will actually go & live in the home but they have something very much the same (I’m told) for investors. Give Richard Legare (281-203 1711) a call for the details of the offer.

More than 1,000 area properties went into foreclosure at this month’s Harris County auction, a 20 percent spike over last year.

Foreclosures in the county are up 17 percent year-to-date, according to Foreclosure Information and Listing Service of The Woodlands.

The problem isn’t nearly as bad as it was in March 1987, when defaults were almost triple what they are today.

But the effect these properties have on neighborhoods could be worse this time around, University of Houston economist Barton Smith said.

That’s because some aren’t being maintained once they’re empty.

“I’ve seen homes that have had anything of value ripped out,” Smith said. “And they went in with red spray paint and sprayed everything.”

Still, investors are buying many of these homes.

Houston ranked second after Dallas in a list of the top 10 cities for real estate investing in the first quarter of 2008 by HomeVestors of America, the Dallas-based realty firm known for its “We Buy Ugly Houses” billboards. The company based its findings on the number of houses bought in each market by the franchise network during the quarter.

But Smith wonders if the bottom feeders are getting in too early, as some of these neighborhoods are awash in for-rent signs. “There’s so much product on the market competing with you,” he said. “So many rental signs means they’re not selling.”

Notice the latest figures from HAR for the Houston area for March 2008…. sales of single-family rentals are up 10% vs the same time last year. Dollar volume is up 17%…. average rental rates are up 6%!!!

With so many foreclosures and with a tough time getting new loans unless your credit is in very good shape, this is predictable… more people are demanding rentals and, as we know, an increase in demand usually generates in upward move in price.

So, this could be a very good time to invest in a few rentals and take advantage of a good rental market to get you building some equity for the future.

Excellent cash-flow investment opportunity in Houston, TX. Here are the highlights:

- Cash-on-cash return is just over 46% (see 15-page Investment Analysis) [price reduced to $169 750 $159 900]

- 5 one-bedroom units, all brick, parking for 10 cars

- on-site rent collector & bank depositor (lady in end unit even has “office” sign on door, see photo)

- Roof recently replaced.

- View rental comps here.

This multi-family investment property is located in Bacliff, close to Kemah and not too far from Houston, Texas. Rent is $500.00 per unit, $2500.00 in total per month.

Owner has utilities in his name & charges tenants an additional $120.00 p/mth which would mean rent is then $620.00 per month but that then includes utilities. Why does he do this? Well, his tenants usually don’t have the best credit around… that means, when it comes to setting up a new account with the gas or electric company, they are charged huge deposits + connection fees. They just can’t afford it.

So, the owner simply manages that for them, charges them for it and makes it that much easier to lease out the properties when they go empty.

Call Lance @ 832-483 8655 for more information or to make an offer.

A really nice property is available in a nice area in The Woodlands. It’s a corporate sale and they’ve just had a big price reduction yesterday. It’s been on the market for quite a while but with the new price it’s now in play for an investor.

“I buy tired-looking 1980s homes. With wallpaper removal, fresh paint, new flooring, new light fixtures, new mirrors in the baths, new knob and lock hardware on the exterior doors, new appliances (if needed), new countertops (if needed), new mini-blinds, and a new gooseneck faucet in the kitchen, I can make the place look fresh and fabulous for a realitively small investment.”

I think that’s very good advice for almost any investor!!

Okay… let’s look at the above two images… they’re from the public tax records… the appraisal for the property in question has it appraised at $178 710.00.

The other one shows that when it was last sold on 15 Dec 2003, it was sold for $169 500.00.

So, 2003=$169 500.00. Current county appraisal: $178 710.00. Current sale price: less than $130 000.00!!!

It apparently needs work but it was built in 1994 and it’s in a nice neighborhood where similar properties are selling for around $167 000.00 right now. Rents are in the $1450.00 per month (conservatively) price range for this property.

It might be possible to get this property for less than $120k. If you’re interested, please give me a call – Lance, @ 832-483 8655.

This property is in The Woodlands.

- It’s leased out for more than 1% of the selling price (very unusual point # 1)

- It’s been completely remodeled with high-quality finishes (unusual to have high-quality finish in a rental point # 2)

- There is absolutely no more work to be done (unusual point # 3)

- It is located at the end of a very nice little cul-de-sac (fairly unusual point # 4)

- The lease is starting tomorrow, 1st November 2007. (unusual to get in right at the start of a lease point # 5)

- It cashflows from day 1 if:

- you put down 10% in cash

- you get a 30-year loan for 7.5%

- when including county tax, home owner’s association fees, home insurance & including a 10% vacancy factor!

I think what’s happened is the owner spent too much money on the remodel and is now stuck with a cashflow problem. The seller’s problem could be your gain!

The tenants are a young couple from Finland that have been relocated here for a 3-year work contract. They wanted to sign a longer lease than just 12 months.

He’s 31, she’s 30. They have a six-month old baby. They don’t have pets. They don’t smoke. He earns $10k per month.

Give me a call if you’d like to see this property.  

Lance 832-483 8655.

I looked at the sales and rentals in one road – Willie Way. What did I find?

It took about 70 days on average to sell a home, while it took around 22 days on average to lease a  home.

So, leasing a home happened more than 3 times quicker than the time it takes to sell a home!!

This definitely supports current market theory:

Sub-prime lenders are going out of business so financing options for sub-primer borrowers are being removed. With so many sub-prime home-owners going into foreclosure and unable to refinance or buy newer homes, they’re moving into rental properties.

It’s a good time for landlord investors. You can pick up a pre-foreclosure or a foreclosure at a good price… it really is a buyer’s market. And, fix it up and you’ll lease it within a few weeks of putting in on the market. The trick is to screen tenants well to make sure you get yourself good clients that will look after your property.

23110 LUDGATE, SPRING, TX, 77373

We had a short-sale deal agreed with the bank for $69 000.00 with the bank paying $2500.00 towards closing costs and my buyer walked away as we can’t get utilities turned on. Bank won’t do it as they don’t own it yet. Seller won’t do it as he’s not getting money from deal and doesn’t want to put more money into it…. so, we’re stuck.

The bank has approved the deal & is ready to close (8th August 2007) as soon as anyone can close. I don’t want to mess with what we’ve agreed with the bank as otherwise it’s going to take forever to re-negotiate this. It’s taken 2 months to get to this point as it is.

Home is tiled throughout, paint job is pretty good… good enough for rental. Garage might need some attention. Front & back yards are very overgrown. Water heater is about 18 months old. Air-con is older, not sure exactly how old.

ARV value is estimated at $95 000.00. Rental comps in area are roughly $950.00 per month for this size home.

If you need any more info on this, call Lance @ 832-483 8655.