We live in an information age where there are always “experts” wanting to sell you a new course on how to get rich in:

1. Real Estate
2. Your Own Business
3. The Internet
4. You Name It!

Wisdom comes as we get more mature and realize that there are really no “quick” solutions to anything and that includes creating wealth. A few years ago here in Williamson County, we saw loads of investors who swarmed into the area and purchased real estate by the bunches. The lenders were handing out 100% finance deals like the money would never end. Many of these “investors” went directly to local builders and bought 2-10 properties in specific subdivisions all at one time and all at 100% financed. I like to refer to this as “the era of irrational exuberance”. Many of those of us who work this business full time knew that this was a recipe for disaster and the disaster is here now. We are seeing most of these properties now going to foreclosure right and left and although our foreclosure numbers here are dwarfed by many other areas of the country, they are still greater than we have seen in a long time.

So herein is the purpose of this article. There is a distinct difference between an investor and a “speculator”. What we saw here in the past were many speculators, but not true investors. Investors recognize value and invest for the long haul. They recognize that business cycles will ALWAYS repeat themselves and trying to cheat a good investment with NO MONEY DOWN and expecting that there will never be lean times are unrealistic approaches to investing in real estate as a business. We are working with many investors from all over the country and have always attracted the SMART investors: those that recognize that money investments on the front end are required to be a wise real estate investor. There will be some great opportunities in coming months in Central Texas to invest in a growing market. And if you do so in a smart manner, over a period of years you will see a substantial return on your investment.

If you are looking for a REALTOR in this area that can provide sound real estate investment advice, counsel and services, please contact us. We groom new investors as well through our training programs and BLOGS such as this one. We’d love the opportunity to service your real estate investment and management needs!

This message is provided as a public service by The HBH Group, the premiere real estate group in Round Rock and Georgetown Texas. Contact us through our websites at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free (877) 268-1877.

Fireplaces have irresistible appeal. Just picturing a fireplace conjures feelings of warmth and coziness. Even in warmer climates where people don’t rely on them for heat, fireplaces add charm, character and value — about $12,000 per fireplace, according to the National Association of REALTORs® — to homes. They lend ambiance to just about any room, and with so many varieties and options available, it’s easy to see why people want them.

If you don’t have a fireplace in your home, it’s easier than you might think to add one — without undergoing a complete remodel or major construction. Gas and electric models are more popular and affordable than ever and easy to install. And with so many options for every space and budget, the hardest part is choosing one that best suits your needs.

If you do have a fireplace in your home, whether it’s the wood-burning, gas or electric variety, the most important factor is maintenance. Like cars, fireplaces need annual tune-ups. if you have a chimney-based fireplace — traditional wood-burning or top-vent gas — you should have a certified chimney sweep inspect and clean the chimney at least once a year or after approximately 80 fires. It’s also a good idea to have a certified service technician come out once a year to inspect other types of gas fireplaces and to replace bulbs on electric units.

This message is provided as a public service by The HBH Group, the premiere real estate group in Round Rock and Georgetown Texas. Contact us through our websites at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free (877) 268-1877.

You may have heard this term from time to time when others discuss contracts of different types. In a nutshell, a contingency is a condition that must be met for the contract to be valid and enforceable. There are many such conditions that are standard for a real estate contract, as well as many variations that can be added to the Special Provisions paragraph in Texas contracts. In this article I will focus on only one standard one, the sale of another home.

In standard Texas contracts (TREC or TAR forms), the buyer has the right to submit an offer on a piece of real property with a condition that they must sell another piece of property first before they can close on the offer. This is done with a form called “Addendum for Sale of Other Property by Buyer”. It is referenced by checking a box on the basic 1-4 Unit Residential Contract form, naming the addendum form as a part of the contract. This form outlines several things:

1. It defines the specific address and latest date of sale of the property that the buyer must sell before the next purchase contract is to be completed. If the property does not sell by the date outlined here, the contract terminates and earnest money is refunded to the buyer.

2. The seller is still free in this case to accept other offers on their property and the form next outlines the number of days that the contingency buyer has to waive their contingency or the first contract is terminated and the seller is free to sell the property under the terms dictated in contract number 2. In this instance of course, if the buyer chooses not to waive their contingency, contract 1 terminates and all earnest money is refunded to the buyer. If the buyer does waive their right to contingency, the seller must move towards closing with buyer 1 and that buyer now must buy whether the contingent property sells or not. In order for the buyer to waive their contingency, additional earnest money is defined in the addendum that the buyer must deposit with the title company, showing good faith in both waiving their contingency and showing earnestness in their intent to close on property 1 even though the contingent property has not sold.

This option is a great power tool for people that are involved a trade-up or trade-down situation with their current home. It does not bind the seller in that they can continue to seek better deals that can be negotiated after accepting the contingency contract. Further it allows for exit of a buyer who may choose not to waive their contingency when and if the seller gets a better deal from another buyer. It is thus fair to all parties although it may not seem so if you are on one side or the other.

When in a seller’s market, sellers are less likely to accept contingent contracts and buyers are more likely to present them. In a buyer’s market, this tends to happen more since buyers are worried about selling their current property and sellers are generally eager to get any contract, even if it has a contingency attached to it.

If you have further questions, contact us through our websites at:

http://www.TheHBHGroup.biz/ or http://www.TheHBHGroup.com/

or call our office at (512) 439-3772 or toll-free at (877) 268-1877.

Remember that real estate transactions can be very complicated and using an experienced REALTOR is a great way to protect yourself and know ALL your options in each situation.

The season of holiday entertaining is over. But did the increased foot traffic and occasional spill wreak havoc on your carpets? If your floor is looking a little worse for wear, it may be time for a deep cleaning. But should you try to tackle the job on your own or bring in the professionals? The Carpet and Rug Institute suggests that carpet be professionally cleaned every 12 to 18 months, before it begins to show soiling. Regular vacuuming can keep your carpet looking like new, but deep extraction cleaning is necessary to remove ground-in dirt and stubborn stains.If your carpet needs cleaning, first check with the manufacturer to see what it advises — some cleaning methods could void your carpet’s warranty. extra care. Also be aware that carpet made of natural fibers (e.g. wool, silk, cotton/rayon or plant fibers) can be damaged by certain cleaning methods and may require extra care. If you choose to go the do-it-yourself route, be sure to vacuum thoroughly before cleaning. Choose cleaning agents that are made specifically for stain-resistant carpet, never use a generic household detergent or cleaner. Follow directions closely and pay special attention to instructions regarding dilution and application. After cleaning, open windows or bring in a fan to speed up the drying process.

If you’d prefer to leave this job to professional carpet cleaners, look for recommendations from your local carpet retailer or the Better Business Bureau. Most cleaning fees will be based on square footage, and there is usually no extra charge for furniture removal, pre-conditioning and routine stain removal. As always, be sure to obtain a written agreement before any work has begun. This message is provided as a public service by The HBH Group, the premiere real estate group in Round Rock and Georgetown Texas. Contact us through our websites at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free (877) 268-1877.

Within the world of REALTORS®, we have initials after our names that probably confuse the public in general. You can see them on our business cards, our websites, etc. They look like:

Billy Bob Houseseller, REALTOR®, ARM, LEG, TOE, EAR, etc.

However, there are two of these designations that I would like to define clearly to my readers. The first is the broker designation. The general public recognizes that the broker designation carries more weight than an salesperson license. To qualify as a licensed broker in Texas, an agent must actively practice real estate for two or more years within the state. Further, they must attend 270 classroom hours of core real estate classes approved by the Texas Real Estate Commission (TREC requires this for the salesperson license) AND have an additional 630 hours of courses related to real estate logged and on file with the commission. If you are counting, that means they have spent 20 weeks in a classroom within a 2+ year practice! That is a great amount of training. Finally, the broker-candidate must successfully pass the state and national exams for the license.

The state recognizes a broker as not only able to practice real estate, but also able to manage other agents in the sales process. They are thus allowed to open their own brokerage or property management businesses. If you will note, I have taken the time to earn the broker designation and I believe it offers me the ability to be the best I can be for my clients! This has also allowed me to open a property management company for my real estate investment clients. We currently manage property under the business name of HBH Management. The second designation I would like to make you familiar with is the CRS (Certified Residential Specialist) designation. This is also a training and experience-intensive designation. To qualify for my CRS designation, I had to present proof that I have worked in over 75 real estate transactions, had to attend several CRS-approved courses in buyer, seller and referral strategies and techniques. Finally, I had to present another designation that I hold from the National Association of REALTORS® (Graduate REALTOR® Institute - The Master’s Degree in Real Estate). The CRS designation is held by less than 5% of the REALTORS® in the United States and is a prestigious award of which I am extremely proud. Out of 1.1 million REALTORS® in the USA, less than 50,000 care enough about the quality and professionalism that they offer to clients to spend the time and money to become a CRS. I DO care and hope that this will earn me the right to be your referral partner when friends, co-workers and relatives need a REALTOR®! If my team and I can assist you today in any of the following, give us a call:

1. Home buying (new or resale).

2. Home sales.

3. Trade-up / trade-down.

4. Real estate investing.

5. Commercial properties or Farm & Ranch.

6. Leasing and management.

You can learn all about what we do for our clients as well as a great wealth of information about real estate and the Austin, TX area by checking out our websites at:

• http://www.TheHBHGroup.com/

• http://www.TheHBHGroup.biz/

Or you can call our offices at (512) 439-3772 or toll-free at (877) 268-1877. We look forward to hearing from you. As always, the highest complement we ever receive is the referral of your friends, customers, co-workers and family. They will always get “World-class service with a Home Town feel” from us at The HBH Group.

Did you know that the average American, relocates to a new home about every 5-7 years? This is one reason why a home is such a great investment, because you carry that investment’s gain from home to home over your lifetime. But what if could continue to gain the value on that investment over your entire lifetime? If you moved every 7 years and lived in homes from ages 24-64, you would have purchased 7 homes over your life time and by the end of that period at least four of them would be paid off! If you set the discipline for yourself to lease every home you lived in after you move out, what could that mean to your family financially?

I just ran some quick calculations with my spreadsheet software and found the following to be true. Assuming a 5% annual appreciation growth rate (conservative to say the least), over a 50 year period:

1. You would have acquired 7 homes in your portfolio.
2. The homes would be worth over $8MM.
3. By just paying pretty close to normal 30 year fixed mortgage payments, your equity would be running about $6.25MM.
4. You would be generating over $800K/year in cash flow (income).

So would you say that adding this financial discipline to your budget would be a good thing for you? Just imagine, passing down an inferitance of this sort of value to your children in their 40’s as well as teaching them to do the same with their real estate investments.

Call us The HBH Group for more detail or plan to attend one of our Buyers or Investors Seminars soon. You can reach us at (512) 439-3772 / (877) 268-1877 / or see our websites at:

http://www.TheHBHGroup.biz/ or

http://www.TheHBHGroup.com/

This letter was sent to me by a friend, I thought this info should be shared:

“I don’t know what you guys are paying for gasoline…. but here in California we are also paying higher, up to $3.50 per gallon. But my line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money’s worth for every gallon.

Here at the Kinder Morgan Pipeline where I work in San Jose, CA we deliver about 4 million gallons in a 24-hour period thru the pipeline. One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.

Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening….your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role. A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.

When you’re filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3) stages: low, middle, and high. In slow mode you should be pumping on low speed, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some other liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you’re getting less worth for your money.

One of the most important tips is to fill up when your gas tank is HALF FULL or HALF EMPTY. The reason for this is, the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.

Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up–most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom. Hope this will help you get the most value for your money.”

Information provided by The HBH Group, experts in Round Rock and Georgetown Real Estate. Contact us through our website at http://www.TheHBHGroup.com/ or http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free (877) 268-1877.

The HBH Group wanted to pass information on to you about a program that we have been made aware of that is COMPLETELY FREE and will save you money on your heating and cooling bills. If you are living in a home (or know someone that is) in Round Rock, Hutto, or Pflugerville that was built before 1/1/03, is over 1800 sq. ft. and live in TXU’s distribution area (but you don’t have to be a TXU retail customer), you are eligible to have your duct system caulked by a company called Energy Efficiency Experts, Inc. FOR FREE. This is a funded program which is mandated and regulated by the Public Utilities Commission of Texas (PUCT) and the program compensates the contractor, not you!!

There are 2 benefits of having your duct system caulked: It will save you money on your heating and cooling bills (estimated to be $200-300 per year) because sealing the ducts prevents your system from wasting conditioned air through leaks which makes the system run longer, work harder and wear out sooner. In the December Money magazine, there is an article about the value of your HVAC system and in the article it states that “If the ducts are leaky, you could lose 25-40% of the cooled (and heated) air flowing into your attic…and you’ll probably have to pay another $1000 to $3000 to have them sealed.” But if your home qualifies for this program, then you can get this done FOR FREE!!

If you are bothered by asthma or allergies, sealing the ducts system will greatly improve your indoor air quality – which pulls in dirty, unconditioned air from the attic. Meaning LESS DUST!!

There really is NO catch to this – We have just had this done at our house and we can tell you that they were very professional, kept their appointment time and were there about 2 ½-3 hours. We are definitely looking forward to less dust and lower utility bills!

If you are interested in finding out more about the program and scheduling an appointment, give the office a call and we’ll give you all the details. Call us at (512) 439-3772 or toll-free at (877) 268-1877, or to see this article on our website, CLICK HERE. Also you can CLICK HERE to email our team assistant with your address, name, phone number, email address and permission and we will send your information directly to the contractor and they will coordinate with you to get the service completed as soon as possible.

The National Association of REALTORS® (NAR) says its $31,800. Because some NAR stats come out every two years, I suspect there will be an update on this information soon, but at last report the NAR cites that the average seller who uses a real estate professional makes 16 percent more on the sale of their home than do sellers who go it alone. The truth is real estate professionals do a lot more for a seller than just make a transaction go easier. I could write a book on the things we do as professionals to help both sellers and buyers. In fact many already have. There are many details and specific things that we do to help a family with a home, but normally the varied things we do fall into broader concepts such as saving time, reducing stress, making more money and reducing risk of liability and litigation. When it comes to how much more money a real estate professional gets for selling a house, I don’t know for sure how much more that is here in the Round Rock real estate market. Sometimes it is a lot more, and I will be specific about that with examples in two of the three articles to follow. There are times too, when we get only a little more than an owner could, and also times we suspect when we probably get about the same. What we are saying here is there is no way one can prove, or disprove on average how much more, or less, we get for a sale than what the NAR reports. In all cases though, we do save stress, time and substantially limit risk, all of which have huge value. Here is an article from the NAR about this, and because it was presented in a public forum, there is naturally much debate, all of which is found in comments that follow the article. I thought it would be interesting and helpful to you to read the discussion in its entirety. It is a most interesting read.

When looking for Round Rock or Georgetown investment or personal real estate, check out our websites at: http://www.TheHBHGroup.biz/ and http://www.TheHBHGroup.com/ or contact us at our office phone (512) 439-3772 or toll-free (877) 268-1877.

I am often asked this question by buyers and it amazes me that people don’t naturally see the benefit of an option out of a real estate contract. After all, having a few days to “really” make up their mind on a contract is a real power tool to a buyer. Further, the option offers the buyer time to perform the needed due diligence on one of the largest purchases that an average person will ever make.

The option clause was added to our contracts in Texas many years ago simply to put the buyers more at ease. If you are not aware, real estate contracts in Texas do not qualify for the 3 day right of rescission rules that apply to bill of sale and retail purchase agreements. For this reason, the option clause was added to our real estate contracts by the Texas Real Estate Commission (TREC) and the Texas Association of REALTORS® so that buyers had a way out for any reason or for none. This right is purchased with a sum of money and MUST be in the hands of the seller within 48 hours of the execution date on the contract.

I repeat, that this is a HUGE power tool for a buyer in the state of Texas. It offers the buyer time to get the property inspected by a TREC-licensed real estate inspector. During the option period, the buyer has a great amount of leverage with the seller to negotiate needed repairs. This is a great opportunity to get repair costs negotiated and all this prior to closing.

Other buyers (particularly investors) use the option period to make offers on MANY properties at the same time in order get the best deal on one or two of them. This is a common practice (much to the chagrin of sellers), but is another method for controlling the buying process. In this case, the buyer may end up incurring a few dollars in option fees on those the contracts that they opt out of, but they can keep the best deal or deals they were able to negotiate. Many of the investors that work with The HBH Group use this method with great results.

If you have further questions about the option process or any subject that we can help you with, please call our offices at (512) 438-3772 or check out our website at http://www.TheHBHGroup.biz/ where you can get more information on buying and selling or leasing and managing real estate.