5803 Glenmore Drive, Parker

12 Jun

5803 Glenmore-40

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1712 Pebblebrook Way, Little Elm

10 Jun

1712 Pebblebrook-30

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5578 Beacon Hill Drive, Frisco

10 Jun

5578 Beacon Hill-2

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Simple Rates of Return

8 Jun


Looking for a simple way to determine if a rental property will give you the rate of return you want? This modified annual property operating data may be just what you’ve been looking for.

There are many different rates of return that investor’s consider to determine whether a property will generate the yield that they expect. Sometimes the simplest of calculations can tell you whether you want it or not and if you get the other things like tax advantages and appreciation, it just makes it that much better.

The first yield we will look at is commonly called the Cash-on-Cash rate of return. It is calculated by dividing the initial investment, usually down payment and closing costs, into the Cash Flow Before Tax.

To arrive at Net Operating Income, it is simply taking the gross scheduled income, less vacancy allowance and all operating expenses. From that is deducted the annual debt service which is the principal and interest payment times twelve. The remaining amount is referred to as Cash Flow Before Tax.

In this example , the initial investment of the down payment and closing costs, $66,000 was divided into the Cash Flow Before Taxes of $5,468 to get an 8.28% Cash-on-Cash rate of return.

The second yield to be considered is called Equity Build-up. Each payment made on an amortizing mortgage pays a portion toward the principal balance to retire the loan. It is calculated by dividing the initial investment into the principal contribution for the year.

Continuing with the example, $66,000 is divided into the principal reduction for year one of $4,606 to get a 6.98% Equity Build-up rate of return.

This approach is easy to understand because you are not considering depreciation, anticipated appreciation, holding period, recapture of depreciation or long-term capital gains. Simply rent the property, pay the bills and if there is money left over, it pays a return on the initial investment.

The same goes for the Equity Build-up. When you make the payment on the mortgage, the loan is reduced and while you don’t have access to the money like cash flow, it is definitely your equity and tangible.

To determine whether an ROI on a rental is good, compare it to what your initial investment is earning currently. Ten-year treasuries are earning less than 2%. Certificates of deposit are earning less than 1%.

For more information, download the Rental Income Properties guide and schedule an appointment with your real estate professional.

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5705 Blazing Star Road, Frisco

4 Jun

5705 Blazing Star EXT edit-9

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10811 Stone Canyon Road, Dallas

1 Jun

Stone Canyon Twilight front 04 edit


3 Bedrooms / 2.5 Baths / 2 Dining Rooms / Pool
3,397 sq ft / .3 Acre Lot / Cul-de-Sac Lot


This gorgeous home nestled on an over-sized .3 acre cul-de-sac lot has striking curb appeal with a contemporary split-level elevation complimented by a professional landscape design and convenient circular drive. Upon entering, you will be struck by the elegant formal dining area with rich hardwoods and large windows that provide a beautiful front yard view. The gourmet kitchen would delight any chef with its 5-burner gas range, stainless steel microwave, oven, dishwasher and walk-in pantry with excellent storage space. Other upgrades include rich granite, painted cabinets and pulls, travertine floors, a Scotsman “Sonic” ice-maker and abundant cabinetry to include large pan drawers. Enjoy a solitary morning breakfast or entertain guests in the spacious breakfast area with a built-in granite buffet, upgraded trendy chandelier and adjoining patio with sliding doors.

The spacious and inviting game room enjoys extensive built-ins and for cool fall and winter nights, a sleek black tile and hearth fireplace. This room boasts rich hardwoods, crown molding, Plantation shutters and has its own private door to the patio area, making it a perfect spot for family gatherings or entertaining guests. And just down the hall, the powder room has a modern flair with an elegant vessel sink, upgraded granite, and travertine flooring. In addition, enjoy a pool view from the spacious family room with rich hardwoods, a built-in granite bar with pendant lights and beverage fridge. Guests will enjoy the beautiful gas log fireplace and mantle flanked by convenient built-in cabinets, Plantation shutters and built-in speakers.

A split and Texas-sized Owner’s Retreat boasts updated plush carpeting, built-in shelving and glass barn door leading into a completely remodeled stunning luxury bathroom. Relax in the spa bath with soaking tub under the beautiful designer lighting fixtures and LED dimmable mirrors or shower in the oversized frameless glass shower. Other upgrades include Level 4 granite counter tops, vessel sinks, dual custom his/hers closets with Elfa shelving with all custom hardware. Downstairs are two generously- sized bedrooms, both have walk-in closets and share an updated Jack and Jill bathroom with lovely granite counters, vessel sinks, framed mirrors and designer lighting.

Step outside to your very own relaxing and private oasis with lush landscaping and synthetic turf with two covered patio areas, a separate grassy yard area for play and all securely surrounded by an 8’ board-on-board fence with electric gate for security. Enjoy the many sunny Texas days in the sparkling modernly designed pool that includes a tanning ledge with bubblers, lounging chairs and extensive travertine deck area. The oversized garage (20×25) has more storage space with built-in shelving and the utility room has a sliding barn door, sink, granite folding area, additional cabinetry and luggage storage area. Other outstanding upgrades are Krestmark windows throughout (2015), updated front door, Hardie Plank siding, exterior paint and trim (2019) and complete replacement of the concrete circle drive, retaining wall and entry steps. This luxury home exudes character with unsurpassed luxury and quality! 

Please contact Jeff Jacobs at 972.978.6539 for more information or click HERE.

For more information and other homes for sale in this area, check out www.myrealtytown.com 

Is a Home Inventory Necessary?

1 Jun


Most homeowners have insurance on their home that additionally, gives them coverage on their personal property. That is the first level of peace of mind to know that it is available to you if there is an unfortunate need for it from a burglary, fire, or some other insured circumstance.

Personal property is handled slightly different than real property. The claims adjustor could start by asking you for a list of the things lost. You are allowed to reconstruct it but there is a distinct possibility that you’ll forget things, sometimes for months or years after the claim was settled.

An interesting exercise would be for you to visualize two rooms, possibly, the kitchen and main living area. Without being in the room, create a list of all the personal items in plain sight and those in the closets and cabinets. When you’re through with the list, go into each room to check to see what kind of things were not on your list and what the value of those items amounted to. It could be substantial.

Remember, you are entitled to claim them regardless of how long it has been since you used them or if you do not intend on replacing them again.

When filing a claim, the more “proof” you have to substantiate it, the better off you are. Receipts are great but chances are, you may only have them for the big-ticket items. Photographs or video of the different rooms are great records that the items were in your home.

An itemized list of each room with a description of the content, cost and date of purchase, supported by pictures would be ideal. This type of documentation will make filing and settling a claim much easier. The more documentation you have, the more likely you are to have a favorable settlement.

The more expensive the item, the better it would be for you to have receipts, serial numbers and photographs. A simple count of some items like clothing will suffice like four pairs of jeans, 24 dress shirts, etc. More valuable items of clothing like a cashmere jacket or a silk dress should be listed individually.

Depending on the frequency that you purchase new items for the home or possessions, you’ll need to consider updating the list and photographs. Moving creates opportunities to get rid of things that haven’t been used for years and to acquire things for the new home. It is always a good idea to complete a home inventory after you’ve moved and settled into your new space.

If you would like to have more tips and a form to itemize your possessions, download the Home Inventory. This will even allow you to include pictures and store it in digital format for safe keeping.

1016 Berry Street, Celina

28 May

1016 Berry-8

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5884 Beacon Hill Drive, Frisco

28 May

5884 Beacon Hill-29

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Deciding on Whether to Move

25 May


Some homeowners feel like they may as well throw a dart against the wall to decide whether to move or not. Other people might invoke a process attributed to Benjamin Franklin. Supposedly, to evaluate the options and bring clarity to the choice, this American founding father would list all the reasons for and against the decision on a sheet of paper. After reducing it to writing, the choice would appear either by obvious majority or practicality.

Buying a home is an emotional decision but selling a home can be also. Separating the rationale from the emotion can make decisions seem obvious but they may still not be crystal clear.

There is an inventory shortage that caused prices to rise and market time to shorten. In many active markets there is less than 30-days’ supply of homes for sale which is half of what was available a year ago. This will make it easier to sell and maximize the proceeds from your current home.

69% of economists who participated in the first quarter 2021 Zillow Home Price Expectations survey believe home inventory will begin to grow in the second half of this year or the first half of 2022.

Mortgage rates are near record lows which will keep payments at a minimum. With the inflation rate in the United States expected to be between 2-3%, many borrowers consider that it balances with the mortgage rate to be an effective zero percent.

“Consumers are facing much higher home prices, rising mortgage rates, and falling affordability, however, buyers are still actively in the market,” said Lawrence Yun, NAR’s chief economist. “At least half of the adult population has received a COVID-19 vaccination, according to reports, and recent housing starts and job creation data show encouraging dynamics of more supply and strong demand in the housing sector.”

The pandemic has allowed many buyers have the flexibility to work from home for now and in some situations, permanently. That opens new location possibilities options that would not have existed if they had to commute to work daily. Economists believe that the increased preference to work remotely will be a permanent shift even if it is only a part of the work week.

This provides opportunities for homeowners to relocate in an area that doesn’t have the high demand that their current area does and could benefit from more affordable housing for the replacement while possibly, maximizing the sales price of their current home.

Good information specific to your needs is essential to making good decisions. Explore the possibilities with your real estate agent. They can provide facts about the sale and purchase of another home. Once you have the facts, you may use the Ben Franklin Balance Sheet to help you with your decision.

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