Loco for LoCo

Yesterday’s Sunday edition of the Austin Statesman featured a story about a remodel in “LoCo”, the area roughly bounded by Ben White, Stassney, I 35 and South 1st Street.  Did you read it?  If not, see the full story here.  “LoCo” is a nickname for the Lower Congress Avenue area.

I’m not a big fan of trendy names and such, but I do get excited about changing areas on the fringes of expensive real estate.  Some of the smartest real estate investment plays can be made by playing the fringe.  LoCo is starting to get some attention because SoCo has just gotten too darn expensive for alot of people.  With the extensive development at the former Southpark Meadows, the ongoing development along South Congress, the relative proximity to downtown, and the highway improvements in and around Austin, it is no wonder that LoCo is being looked at as the next hot spot.

I recently sold a 20-unit apartment complex in the area to a savvy investor who foresaw this trend.  Give him four or five years and some renovations, and he will be sitting on a boutique community with options to condo convert or just keep as a cashflow investment.  Real estate fringe investing takes vision, foresight, and guts, but for those who take action, it can bring a crazy (loco) return on your investment.

Real estate choices and going green

With so much media attention on global warming, clients often ask me for input and ideas on how their real estate choices can support “going green”.  While the internet is loaded with lists and detailed recommendations on green building and other certifications, I have found that some of the simplest decisions can have the biggest impact.

1) Location:  Figure out what is the best location to buy your home so that you minimize your commute times to work and shorten your travel to shopping, recreation and other regular activities.  I’ve seen folks buy into a green housing development on the outskirts of the east side of town, only to commute to work across town 25 miles each way, 5 days a week, 50 weeks a year (2 weeks vacation).  Keep in mind that a little further out may be better if you can leverage public transportation or if you work from home.

2) Size:  50 years ago families of six commonly shacked up in houses of about 1000 SF.  Today, you see singles in 4 to 5 bedroom houses in the suburbs.  Not only has the average family size shrunk considerably, but we are buying larger and larger homes.  One of the biggest impacts you can have on the environment is made upfront when you choose the size of your house.  Too large of a house not only requires heating and cooling all that extra space, but you are likely to buy furniture and other consumables to fill up those rooms, leading to a still larger footprint.

3) Appliances and Features:  Whether you are in the market for a new or resale home, many sellers look to cut costs by installing less expensive, less efficient appliances and other features.  Pay special attention to energy and efficiency ratings of HVAC equipment, water heaters, washer/dryers, dishwashers, and windows.  Hire a professional inspector who goes beyond the standard functionality inspection and can advise you on the suitability of systems, equipment and appliances with regard to energy efficiency.  Make sure your real estate agent has training and experience with green building methods and home features so that you can make an educated decision. 

Remember, every house is unique and the home you choose and how you live in it will have a big role in the carbon footprint you leave on our planet.

Keller Williams International Gifts Gazelle Foundation

The final event of the KW Family Reunion was held Wednesday morning in Atlanta.  The “Inspirational Brunch” features moving stories of friends and associates of the Keller Williams family.

One of the featured speakers this year was my friend and client, Gilbert Tuhabonye, genocide survivor.  Gilbert shared his inspirational story of survival with the thousands of KW Associates in attendance.  He spoke of the voice in his heart that guided him to endure hours of horror and pain, and then months and months of difficult rehabilitation and emotional suffering.  Today he is a successful and happy husband, father, running coach, professional athlete, author and inspirational speaker.  And personally, Gilbert holds a special place in my heart.  He introduced me to my wife, Karen.  Today we celebrate our first Valentine’s Day as husband and wife.

After the presentation, an amazing gospel singer sang a tribute to Gilbert and then Keller Williams presented Gilbert’s Gazelle Foundation (www.gazellefoundation.com) with a $10,000 contribution.  It was a very special moment for me to see my Real Estate company give so generously to a very special cause, and it made me very proud to be a Keller Williams Associate.  Gilbert, thank you for your friendship.  You will always be an inspiration for me.

Albert and Eric Copper at KW Family Reunion in Atlanta

Austin Keller Williams SWMC sweeps awards!

The Keller Williams National Conference is slowly winding to a close.  Last night our office was honored as the winner in all three categories of Top Agent Count, Top Profit Share, and Top Sales Production.  Afterwards, we celebrated with a sponsored social at the McCormick and Scmicks in downtown Atlanta.  I’ve attached a picture of me and our Team Leader, Eric Copper.

The conference has been phenomenal.  Today I learned about some good tools on how to better keep in touch with clients, keys on pricing homes in a down market, tools for leveraging systems, and building a stronger real estate team.  I am not sure exactly how many Realtors total attended, but I think it was more than 10,000.  The best part is that all of the presentations from the education tracks are online for us to view and download at leisure.  I am sure to take advantage of that after returning to Austin late tomorrow.

Keller Williams Family Reunion

Once a year, KW Realtors from around the US (and Canada) join together for top-notch training, industry reviews, and meeting other members of the KW family.  This year, since it was in Atlanta and my brother Adrian lives here, I decided to come.  And I am so glad I did.

So now here I am sitting in Adrian’s mid-town condo, after a long day of KW activities, reflecting on a few things.  Today I met Realtors from North Carolina, Florida, Georgia, NY, DC area, California, Colorado and a number of cities around Texas.  It is a great opportunity for me because these folks are now part of my referral database in case one of my clients ever decides to leave Austin (it doesn’t happen often) I can now confidently refer them to a fellow KW agent that I have gotten to know in person.

Among all the training and news we have learned so far, there are 2 things in particular I want to touch on.  1) The US Housing Recession.  We are definitely in a housing recession.  Having shown negative growth for the first time in many, many years.  Most of the country is heading for a continuing decline in home values.  This is great news for buyers who are in a position to take advantage.  It is not such good news for sellers and their Realtors.  For those sellers who have to sell, they have to price agressively and make sure their property is in great shape.  2) Affordability.  As a percentage of income, home prices are still way out of line with people’s income.  Like the dot com frenzy a few years ago, markets eventually separate the hype from the substance and trend back to sense.  In most parts of the country, housing still has a way to go.

Using the “Decision Triangle” in finding a home

Back in the early and mid-90s, I was a project manager at Dell Computer.  As project managers, we were tasked with balancing the project’s scope, schedule and resources.

Today as a buyers agent, I offer my clients a similar tool which I call the “Home Buyer’s Decision Triangle”.  This tool helps buyers in narrowing down their purchase options so that they can find the best home in the current market.  The three corners of the triangle are:  Price, Location, and Features.

Price:  Lets face it.  This is often the #1 limitation buyers have.  In popular markets like Central Austin, it has become much harder for a middle-class wage earner to buy a home.  The best way to understand price is to consult with a qualified mortgage advisor to determine loan options and prequalify for a loan amount.  If you don’t have a mortgage advisor, ask your real estate agent for a referral. 

Location:  Its often heard that the most important thing about real estate is “Location, Location, Location”.  Yes, its true that many savvy investors have made big bucks betting on a specific area’s appreciation.  However, just like any investment, there is no guarantee.  Your real estate agent will help you understand area trends so you are better positioned from an investment angle, but keep in mind that, choosing a location impacts much more than future appreciation.  Other considerations should include commuting time and costs, accessibility to parks, trails, grocery, retail, schools, churches, entertainment, and general neighborhood feel.  Where you live can have a big impact on your lifestyle. 

Features:  Some buyers have a good handle on what their hard requirements are regarding the features of the home.  The most simple and common requirements have to do with home size and/or number of rooms.  3 bed / 2 ba, >1200 SF, for example.  I’ve come across more specific examples in my experience as an agent, including “pier and beam only”, “metal roof”, “house must face east”, “original wood floors”, “granite countertops”, and so on.  A good real estate agent will help you understand which of these features can be added to a house and for what cost.  Having an open mind while looking at houses will give savvy buyers more opportunities to find the best home.

The good news is that today’s MLS system allows Realtors to help clients with detailed and specific searches.  If you are looking to buy sometime in the future, I’ll be glad to setup a personal webpage for you based on your custom decision triangle criteria.  Happy House Hunting!