How much should you spend on your Dallas home remodel?

Lots of smart investors are buying properties in Dallas now before prices and mortgage rates rise further. And the savvy folks know that in order to make money on your property when you sell, you need to buy it at the right price and put the correct amount into it. I just bought a townhome this week that I'm remodeling.

Having successfully bought, remodeled and sold 7 homes, I can share a few tips with you on what to consider when buying a home in Dallas to remodel. First consider buying the ugliest home on the street. Then when you improve it, it will be in keeping with the neighborhood. The location will determine how much you should put into home improvements.

Think of it this way. You can't take a Honda, spruce it up, and call it a Lexus. It's still a Honda. It might be the most luxurious Honda around and you can sell it for more than the average Honda or a banged up, older version. But it will never be a Lexus.

 

Likewise, the neighborhood you buy in will determine the maximum price you can get for your property. If you buy in a 'honda' neighborhood, don't expect to sell at a 'lexus' price. Only improve the property to the high end of the neighborhood. Let's say you buy in a neighborhood where prices are $300,000 to $500,000 and range between $140 and $170 a square foot. It wouldn't be wise to buy at $165 a square foot, put $40 a square foot into remodeling the property, and expect to sell it at a profit any time soon.

 

A good, experienced Realtor can help you determine and purchase a property at a price that makes sense if you are buying for an investment. [where: 75230]

The truth about getting a mortgage in 2013

Getting a mortgage in June 2013 an extremely frustrating experience for most home buyers. I should know - I've been through it 8 times so far this year. Seven of those were with my clients and the most recent was my purchase of a home for myself.

The mortgage process should not be this difficult for qualified buyers. And I'm talking about people with good credit scores who could pay cash or finance just half of the purchase price. But plan to buy a house through one of the big banks and you'll find yourself with last minute delays or unable to close on your property and fulfill your obligations under your contract.

The worst offenders right now are Wells Fargo, Bank of America and USAA. Some sellers won't complete a contract with a buyer using one of these banks. And I don't blame them. The chances of getting the property financed by the closing date with one of these banks is highly unlikely right now. I don't care what these lenders promise you, they probably won't meet the deadline and it will likely end up costing someone more money - usually the buyer.

So why are the big banks being so difficult? Why are they stringing their clients along with half-hearted attempts at granting mortgages - only to leave both buyers and sellers frustrated with they can't meet their promises to fund?

My theory is because the interest rates are still low that they have no motivation to lend. Banks know the rates will rise soon. So why lend at these lower rates now?

If you want to finance the purchase of a home right now, go with a local lender. In Dallas, Prime Lending, Plains Capital, Home Team Mortgage, Shelter Mortgage and First Private Bank are your best bets. Be prepared to jump through a lot of hoops, but you may get your deal done on time with these folks. And they will be honest with you about your loan. [where: 75230]

Dallas to Cabo for a vacation home

Dallasites love Los Cabos, Mexico for many reasons. Air travel between Dallas and Cabo is quick and easy. Cabo boasts sun, surf, mountains, safety, affordability, ... Right now, real estate in Cabo is a great investment. The depressed market hasn't bounced back yet the way it has in the U.S. But it isn't far behind. In 2013 the Mexican economy is forecast to grow more than 4% - more than twice that of the United States. The real estate market is sure to follow the rebound of the U.S. real estate market.

I just returned from the 2013 AMPI international symposium in Los Cabos where I attended seminars, discussion panels, training, and learned about doing business in Mexico. The conference drew delegations from the United States, Canada, Brazil and Mexico. This forum gave me valuable knowledge about investing in resort and second-home opportunities in Mexico, and the procedures for working alongside AMPI (the Mexican Association of Real Estate Professionals.

Buying property in Mexico is very different than real estate sales in the U.S. This event gave me the skills and contacts to help my clients successfully invest in a Mexico property. If you, a friend or family member are considering a second home in Cabo, let me know and I'm happy to refer you to great Realtor and assist in the transaction.

North Dallas & Park Cities Real Estate Update

How about an update on the 2013 real estate market in our neighborhood? Just as realtors keep saying, the number of available homes is down and demand is strong. And the numbers prove it:

North Dallas Statistics

Highland Park & University Park Statistics

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