Have You Considered Investing In Real Estate?


Have you ever considered buying a property as an investment? The property market is not reserved for experts and millionaires – you too could use it to make the most of your hard-earned savings.

A lot of people only buy a house as a family home and find paying off their mortgage before they reach retirement a big financial burden. Sound like you? However, buying a house as an investment (not living in it and instead renting it out) can make you a lot of money. In fact, it’s been shown that property outperforms other investments such as stocks, shares and savings accounts to bring you a nice fat profit in the long-term.

Yet somehow we’re all too cautious about hopping on the property investment train. Why? There are a few common apprehensions, questions and ‘buts’ people have when first looking at property, but there are good answers to all of them. So, before the words ‘finance’, ‘invest’ and ‘mortgage’ turn you off, have a read of the below to get clued in on what property investment can do for you and your piggy bank

But I don’t have the money to invest in property!

It’s a common misconception that you need to have all the cash up front. US banks may lend up to 75% of the property purchase price for investors, so for a $250,000 purchase (the average housing price in Lewisville according to Zillow) the total capital you need is $62,500. IRA’s and 401K’s are ways to get the down payment.

But I don’t want to take out another mortgage!

Before you panic about taking out a second mortgage, remember that the tenants who will be renting at your property will be paying off the mortgage for you, and that taking out a mortgage to pay for your investment means making more money.

But isn’t it risky?

As with all investments, there are low-risk and high-risk options.

But how can I make money from my investment if all my pennies are tied up in the property?

1) The increase in the property’s value over time. A well-chosen property and market will see the value of your investment jump up significantly over the course of five-to-ten years. You can then choose to resell at that higher price, keep it for longer to increase profits further or pass on the investment to your children.

2) The rent your tenants will pay you. This can cover the mortgage and/or provide you with an additional regular income – remember, rents will also increase over time as the area you invest in becomes more popular.

But I don’t want to be a landlord!

You don’t have to be! There are property management companies that exist to take that responsibility off of your hands. They can handle everything, from decorating and tenanting to taxes and reselling, and you’ll still be able to make a healthy profit.

When you’re ready to learn more or if you’re already clued in and want some more in-depth market advice, contact Jim Trump & Associates today! (214) 609-7123 or jtrump@kw.com


Does The Car Make The Agent?


It used to be that real estate agents; and sales people in general; were judged on how successful they were based upon the car that they drove.

First Impressions

Although I never bought into this notion, I knew a lot of sales people and real estate agents who did, and still do. I was sometimes asked why I didn’t drive a luxury car or “when are you going to buy a new car?” And just recently the issue of “cars” came up at a training session. Newer agents working hard just to get a few transactions under their belt are concerned that they don’t look successful enough. It is true that when people first meet us we have just a few seconds to make a good first impression. Like it or not, when we enter a room or drive up in our car, we get judged- instantly.

I Love a New Car

As a car lover I get it. A new, sleek and shiny new car is wonderful, and the smell…I love it! But cars aren’t a good investment, especially for the busy REALTOR. The minute you drive away from the car dealership, the car loses value. Plus, after the “thrill” and smell of a new car fades all you are left with is a car payment that seems to last forever.

Your Car Should Be Clean

Whether or not you buy a new car is completely up to you, but a new car won’t make you a more successful real estate agent. Many of our clients will meet us at properties, real estate agents and their clients generally drive their own vehicles or simply meet at the property and your client never even sees your car. If you are driving your clients around you do need to have a car that is presentable. It needs to be dent free and clean inside and out. That’s pretty much it.

You Won’t Be a Better Agent

After that first impression your client wants to work with an agent who knows what they are doing. If they see that you know what you are doing, they’ll pay less attention to your older car. While driving a luxury car and wearing designer clothes may make you look and feel better, they don’t make you a better real estate agent.

For professional service, call me at (214) 609-7123 or jtrump@kw.com


Any Way That You Slice It, You Are Paying For A Mortgage!

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

And, as an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still at bargain prices.

Contact me for professional real estate services @ (214) 609-7123 or jtrump@kw.com