As I am about to graduate from college, I have been searching for places to live close to my future office in Dallas. Sifting through numerous pages of real estate, I have noticed a trend. There seem to be many town homes/single-family homes that have been renovated up for rent. Rather than building new homes, everyone and their dog seem to be remodeling the insides of their homes in order to attract new tenants. I find that this is a very effective strategy, because the prices of these town homes are still cheaper than brand new houses and apartments.
Here are some examples of renovated homes similar to what I have seen in Dallas: http://www.houzz.com/house-renovations-before-and-after
Monday, April 29, 2013
Monday, April 22, 2013
If I were to invest into real estate in the city of Dallas this summer, I would put my money into single-family homes. I think that multi-family homes, while growing at an enormous rate right now, is a bubble that will pop. However, I believe that single-family homes are on the rebound from the late 2000s, and can still be purchased at a relatively low price as of now. I believe that those prices will rise until a healthy median between the high 2006 bubble prices and the 2008 foreclosed prices is reached.
Also, the median age for the city of Dallas is 31.8 years, compared to the 40.8 year average for the state of Texas (according to city-data.com). I believe this young population will be moving out of multi-family homes into single-family homes, because this is the age many people start settling down and raising a family.
According to apartmentratings.com, one bedroom apartments have an average of $756 of going rent, up over 10% from just two years ago. I believe that the prices cannot sustain themselves, and that prices will drop soon. Now that the economy is strengthening, I believe that consumers will want to start investing into long-term property, instead of month to month housing.
The key to making money on real estate is timing in the market. I believe that there is a narrow window of opportunity to take advantage of the cheap single-family home prices before they increase to unprofitable rates.
Also, the median age for the city of Dallas is 31.8 years, compared to the 40.8 year average for the state of Texas (according to city-data.com). I believe this young population will be moving out of multi-family homes into single-family homes, because this is the age many people start settling down and raising a family.
According to apartmentratings.com, one bedroom apartments have an average of $756 of going rent, up over 10% from just two years ago. I believe that the prices cannot sustain themselves, and that prices will drop soon. Now that the economy is strengthening, I believe that consumers will want to start investing into long-term property, instead of month to month housing.
The key to making money on real estate is timing in the market. I believe that there is a narrow window of opportunity to take advantage of the cheap single-family home prices before they increase to unprofitable rates.
Sunday, April 21, 2013
Assignment #5 Foreclosure
While many foreclosures are unpleasant and unwanted by the home owner, there is a case that sticks out as being completely unreasonable.
Hurricane Sandy ripped through the North East, leveling homes and altering lives. The entire country sympathized with the victims, and many gave aid and support to those affected by the storm. After a few months, however, some money driven banks have ended the sympathy period. In this example, a woman who's home was all but demolished by Sandy is now facing foreclosure. This woman has been struggling to pay for repairs for her home, since her insurance only covered a third of her damages. She has also lost her job, causing even further financial stress to her life. At the detriment of paying her mortgage, she has been focusing on repairs, causing her to miss payments. The mortgage lender originally gave Sandy victims a three month grace period to get their life back together, but now the lender wants its money. It must be an extremely difficult process on both ends of the deal.
As of now, the foreclosure process is in the non-judicial stage.
Here is the link: http://www.youtube.com/watch?v=CoX8Uj0iPVc
While many foreclosures are unpleasant and unwanted by the home owner, there is a case that sticks out as being completely unreasonable.
Hurricane Sandy ripped through the North East, leveling homes and altering lives. The entire country sympathized with the victims, and many gave aid and support to those affected by the storm. After a few months, however, some money driven banks have ended the sympathy period. In this example, a woman who's home was all but demolished by Sandy is now facing foreclosure. This woman has been struggling to pay for repairs for her home, since her insurance only covered a third of her damages. She has also lost her job, causing even further financial stress to her life. At the detriment of paying her mortgage, she has been focusing on repairs, causing her to miss payments. The mortgage lender originally gave Sandy victims a three month grace period to get their life back together, but now the lender wants its money. It must be an extremely difficult process on both ends of the deal.
As of now, the foreclosure process is in the non-judicial stage.
Here is the link: http://www.youtube.com/watch?v=CoX8Uj0iPVc
A Place I Love. Assignment #4
I have chosen to discuss a town I love, rather than my hometown, because Mabank, TX is not a very lively topic. Denver, CO, on the other hand, is pretty interesting.
One of my sisters just moved to Denver last summer, and I had the opportunity to visit her and her husband over Christmas break. First and foremost, the thing I love about Denver the most is its relativity to the Rocky Mountains. It is a stones throw to the closest ski resort. My sister and brother in law have taken advantage of the skiing, and have ski passes good for multiple locations all season long.
If this doesn't attract you enough to live there, maybe the laid back lifestyle will, or maybe you're more of a beach enthusiast than mountain dweller. Denver is known for its easy going lifestyle; nobody is in a rush to go everywhere like the people in Dallas, and a majority of the population is not focused solely on money.
Like Austin, the people of Denver are very outdoorsy. Biking, hiking, skiing/snowboarding, and kayaking are a few of the activities you see citizens participate in everyday. In the downtown area of Denver, it is most common to walk to your destination. You can walk to pretty much any place you want if you live close to downtown.
Denver has also been known for its pollution. However, recent city measures have helped control the smog and pollution of the downtown area. For instance, you won't find any wood burning fireplaces in the homes of Denver. Since it is in the mountains and very cold during the winter months, if everyone were to have a wood fire burning everyday, it would certainly fill the sky with a haze. Everyone now has gas burning fireplaces. Also, car and factory emission standards have been raised.
The population of Denver in 2011 was 619,968, making it the 23rd largest city in the U.S. That is up from about 554,000 in 2000. Denver is also a young city, with about 70% of their population under the age of 44.
Here are some pictures of Denver:
I have chosen to discuss a town I love, rather than my hometown, because Mabank, TX is not a very lively topic. Denver, CO, on the other hand, is pretty interesting.
One of my sisters just moved to Denver last summer, and I had the opportunity to visit her and her husband over Christmas break. First and foremost, the thing I love about Denver the most is its relativity to the Rocky Mountains. It is a stones throw to the closest ski resort. My sister and brother in law have taken advantage of the skiing, and have ski passes good for multiple locations all season long.
If this doesn't attract you enough to live there, maybe the laid back lifestyle will, or maybe you're more of a beach enthusiast than mountain dweller. Denver is known for its easy going lifestyle; nobody is in a rush to go everywhere like the people in Dallas, and a majority of the population is not focused solely on money.
Like Austin, the people of Denver are very outdoorsy. Biking, hiking, skiing/snowboarding, and kayaking are a few of the activities you see citizens participate in everyday. In the downtown area of Denver, it is most common to walk to your destination. You can walk to pretty much any place you want if you live close to downtown.
Denver has also been known for its pollution. However, recent city measures have helped control the smog and pollution of the downtown area. For instance, you won't find any wood burning fireplaces in the homes of Denver. Since it is in the mountains and very cold during the winter months, if everyone were to have a wood fire burning everyday, it would certainly fill the sky with a haze. Everyone now has gas burning fireplaces. Also, car and factory emission standards have been raised.
The population of Denver in 2011 was 619,968, making it the 23rd largest city in the U.S. That is up from about 554,000 in 2000. Denver is also a young city, with about 70% of their population under the age of 44.
Here are some pictures of Denver:
Thursday, April 11, 2013
Assignment #3
For today's lecture, Sam Harrison and Mike Gentry were here to give us some insight into the real estate world. Mr. Harrison owns a piece of property, while Mr. Gentry is a lawyer who is assisting him with the development of the land. The lecture was very intriguing, in that it revealed to me how extensive and exhausting the process of owning, developing, and selling land is. I had a misunderstanding that developing land, while not easy, would run relatively smoothly. I had no idea that it could be such a headache. Mr. Harrison's land was built upon an old oil pipeline, and soon led to multiple aggravations. An example that stuck in my mind is that the soil was tested before being built upon, and a small trace of oil was found, leading the developers to believe that there was an oil leak. Therefore, the hotel that was supposed to built, could not be built until the soil was proved to be safe to build upon. Mr. Harrison and Mr. Gentry were able to obtain an agriculture exemption from the state, in order to lower the taxes on the land. Because, as Mr. Harrison said, his land was not gaining any income, but had lots of cash outflows in the form of taxes. What I took from this lecture, is that it pays to know real estate law, and government regulations to a T. Knowing what you can and can't do can save you thousands of dollars.
For today's lecture, Sam Harrison and Mike Gentry were here to give us some insight into the real estate world. Mr. Harrison owns a piece of property, while Mr. Gentry is a lawyer who is assisting him with the development of the land. The lecture was very intriguing, in that it revealed to me how extensive and exhausting the process of owning, developing, and selling land is. I had a misunderstanding that developing land, while not easy, would run relatively smoothly. I had no idea that it could be such a headache. Mr. Harrison's land was built upon an old oil pipeline, and soon led to multiple aggravations. An example that stuck in my mind is that the soil was tested before being built upon, and a small trace of oil was found, leading the developers to believe that there was an oil leak. Therefore, the hotel that was supposed to built, could not be built until the soil was proved to be safe to build upon. Mr. Harrison and Mr. Gentry were able to obtain an agriculture exemption from the state, in order to lower the taxes on the land. Because, as Mr. Harrison said, his land was not gaining any income, but had lots of cash outflows in the form of taxes. What I took from this lecture, is that it pays to know real estate law, and government regulations to a T. Knowing what you can and can't do can save you thousands of dollars.
Wednesday, April 10, 2013
Assignment 2
When you think of restriction on land, you generally think of the
government telling you what you can and can’t do. Private restrictions are
other regulations enforced by the original property owner. These limits come in
the form of covenants, conditions, and restrictions (CCR’s). CCR’s can either
be a benefit, or a hindrance to the land owner. Also, Home Owner’s Associations
are sources of private restrictions. Member’s must adhere to certain standards.
An example would be the original property owner, when selling the property,
including in the deed a covenant with the purchaser to prohibit guided hunting.
Here is an example of a Home Owner’s Association taking private land
restrictions a little too seriously in the eyes of the members: http://www.youtube.com/watch?v=d1jz4OuJZcQ
Public restrictions on real estate are enforced by government
institutions. These restrictions include land-use, property taxes, eminent
domain, police powers, and escheat.
Eminent domain is basically the right of the government to seize control
of your property with just payment. Police powers gives the government the
right to control activity and behavior with societies best interest and general
welfare in mind. Escheat is the process of transferring land ownership to the
government when there is no will or descendants of the deceased owner.
Here is an example of a local government closing down many bars and
restaraunts due to code violations that were deep in the wilderness of Ventura
County California. : http://www.youtube.com/watch?v=MwjqJPr84Zc
Wednesday, January 23, 2013
Assignment 1
Welcome to Jason DeLong's Finc 371 Real Estate blog.
This post is regarding assignment one of the class.
My name is Jason DeLong, and I am a senior finance major from Mabank, Texas. Mabank is a small town just southeast of Dallas. Mabank is one of multiple towns that border Cedar Creek Lake, the fourth largest lake in Texas.
Growing up, my hobbies included jet-skiing, golfing, and hunting. Since I've moved to College Station, golfing and hunting are my primary hobbies. I also love to read and write when I can't get outdoors. My original goal in high school was to become a sports writer. But now, that has turned into more of a long lost dream. Not to say that I could never realize my dream, it just may end up being a side job to my career.
I have recently accepted an offer to start my career at a small firm called "Associated Bond Brokers, Inc." I will be hired on to become a bond broker, specializing in trading municipal bonds for cities all over the U.S. and Puerto Rico. So, my foremost goal is to pass my tests and obtain the licenses needed to become a certified broker. This job is located in uptown Dallas, so I will be close to my hometown. This is a company I could see myself working in for a long time. I see major potential in the opportunity to one day own the company, as it is a small firm of about 12 people.
I like to think that I am unique in the fact that I am, or at least once was, a respectable golfer. Golf is a sport that many people think is easy until they pick up a club and try to play. Golf takes many, many hours of practice to be able to call yourself a respectable player. You have to train your muscles to make impact with the ball at exactly the right time, at exactly the correct angle, or else it will be a very long day for you on the course. But it is not just physical preparation. A legendary golfer named Bobby Jones once said that, "Golf is a game that is played on a 5 inch course - the distance between your ears." It takes incredible patience and self control to keep yourself from self imploding during the middle of a round. You have to think your way around the course; you can't simply muscle yourself to victory as in some sports. I am in no way a master of the game, but I do consider myself among a minority that can competitively play.
There are many things that I would like to accomplish before I die, but there are a couple that stick out most to me. First, I would love to publish a printed work. Whether that be a book or a weekly column in a newspaper, I am not partial. Second, I would like to attend the Masters golf tournament. I am aware that there are people all around me that have been invited to the prestigious event, but I have never been, and would cherish the opportunity to attend before I die.
A list of my favorite sites include:
espn.go.com
www.cnn.com
twitter.com
good-report.com
Assignment 1 part 2
If I had to choose one piece of real estate that I thought was the most interesting, I would have to choose my friends' ranch in southwest Texas. I will reserve the location in order to protect the family's interest, but it was the most incredible place I've ever been. The Dry Frio River ran right through the middle of it, with old indian caves lining the cliffs around the river. It was beautiful. Some friends and I were able to go visit some time ago, and will be returning soon. It is my favorite piece of real estate because of the mesmerizing beauty of the entire piece of land. Here are some pictures:
This post is regarding assignment one of the class.
My name is Jason DeLong, and I am a senior finance major from Mabank, Texas. Mabank is a small town just southeast of Dallas. Mabank is one of multiple towns that border Cedar Creek Lake, the fourth largest lake in Texas.
Growing up, my hobbies included jet-skiing, golfing, and hunting. Since I've moved to College Station, golfing and hunting are my primary hobbies. I also love to read and write when I can't get outdoors. My original goal in high school was to become a sports writer. But now, that has turned into more of a long lost dream. Not to say that I could never realize my dream, it just may end up being a side job to my career.
I have recently accepted an offer to start my career at a small firm called "Associated Bond Brokers, Inc." I will be hired on to become a bond broker, specializing in trading municipal bonds for cities all over the U.S. and Puerto Rico. So, my foremost goal is to pass my tests and obtain the licenses needed to become a certified broker. This job is located in uptown Dallas, so I will be close to my hometown. This is a company I could see myself working in for a long time. I see major potential in the opportunity to one day own the company, as it is a small firm of about 12 people.
I like to think that I am unique in the fact that I am, or at least once was, a respectable golfer. Golf is a sport that many people think is easy until they pick up a club and try to play. Golf takes many, many hours of practice to be able to call yourself a respectable player. You have to train your muscles to make impact with the ball at exactly the right time, at exactly the correct angle, or else it will be a very long day for you on the course. But it is not just physical preparation. A legendary golfer named Bobby Jones once said that, "Golf is a game that is played on a 5 inch course - the distance between your ears." It takes incredible patience and self control to keep yourself from self imploding during the middle of a round. You have to think your way around the course; you can't simply muscle yourself to victory as in some sports. I am in no way a master of the game, but I do consider myself among a minority that can competitively play.
There are many things that I would like to accomplish before I die, but there are a couple that stick out most to me. First, I would love to publish a printed work. Whether that be a book or a weekly column in a newspaper, I am not partial. Second, I would like to attend the Masters golf tournament. I am aware that there are people all around me that have been invited to the prestigious event, but I have never been, and would cherish the opportunity to attend before I die.
A list of my favorite sites include:
espn.go.com
www.cnn.com
twitter.com
good-report.com
Assignment 1 part 2
If I had to choose one piece of real estate that I thought was the most interesting, I would have to choose my friends' ranch in southwest Texas. I will reserve the location in order to protect the family's interest, but it was the most incredible place I've ever been. The Dry Frio River ran right through the middle of it, with old indian caves lining the cliffs around the river. It was beautiful. Some friends and I were able to go visit some time ago, and will be returning soon. It is my favorite piece of real estate because of the mesmerizing beauty of the entire piece of land. Here are some pictures:
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