Comments on: Ending 30 Year Ban — Never Say Never — The Lani & Benn Show — Ditchin’ Weight

by: Doug Quance

Wed, 10 Oct 2007 18:13:32 +0000

All I remember about Texas was my inability to get a cash-out second mortgage on my home to help save my business.

I wound up losing both.

It’s pretty bad when you have 50% equity in your home - yet no one will loan you any money because of the laws…

Maybe things are different, now.

by: Chris Lengquist

Wed, 10 Oct 2007 14:59:17 +0000

I have not researched Texas too much from an investment standpoint. But I can tell you this:

1. Ft. Worth has a cool downtown district after dark. There’s a bar there with about every beer known to man. The Flying Saucer? Check it out.

2. Benn & Lani will be tired of bald people by the time you leave. Be sure to have them tell you stature or something in front of the Universtity of Texas. Oh, and tell them “Hi” from me.

by: BawldGuy

Wed, 10 Oct 2007 12:35:02 +0000

Benn - I knew it wouldn’t take long for you to show up.

I’m so uninterested in Austin, I’m driving their from Dallas today. Seems there’s a lady I gotta hug.

by: Jeff Brown

Wed, 10 Oct 2007 03:32:27 +0000

Robert - Yer preachin’ to the choir. Your points are why I’ve had a fence around Texas since Carter was in office. That said - when so-called bargain regions are selling 2-4 unit properties at 12-15 times gross annual income, you look elsewhere. When the high tax rate is discounted in my analysis, new Texas duplexes in solid locations, renting to ‘plus’ tenants - 8-8.5 times gross becomes eminently doable.

Robert - On your title insurance point - I’m meeting tomorrow with those folks. You can bet I’ll be quizzing them on the cost AND the quality of their coverage.

Thanks to both of you.

by: Robert Coté

Tue, 09 Oct 2007 20:55:35 +0000

Thanks David. I didn’t know about the title insurance costs. In California they have a nifty scam going. Sell a house, buy title insurance. Buy a house, buy title insurance. Maybe half price but uninformed transactors buy doulble.

by: David Stejkowski

Tue, 09 Oct 2007 19:04:22 +0000

Those are all excellent points, imo. Vacancy factors should probably be set high there.

And not just insurance…title insurance, too. (Sorry, I had to put the lawyer cap on there.) Texas has the highest title insurance rates in the country and the coverage is generally worse than you will get in the rest of the country.

All that being said, I have seen many excellent deals done in Texas and I think there are bargains to be had. I think this is a good move for you.

by: Benn

Tue, 09 Oct 2007 18:00:20 +0000

Look here buddy- quit telling our secrets! Austin is a horrible place to invest and yeah, don’t relocate here either! The plush hill country, an economy lager than Cali’s, a record 400k relos a year, 2 new hospitals in two exploding areas, a suburb that grew over 800% in a few short years, yeah, stay away from texas =] But please, donate to the starving agent’s cause!

by: Robert Coté

Tue, 09 Oct 2007 17:49:07 +0000

I have but one word of caution: “realestatetaxes.” Oh, wait I lied. Two words: “realestatetaxes and insurance.” Did I say two words, I meant three; add “vacancy allowances.”

Those are just words of caution. Low, low purchase prices can make any potential problem go away.