The New SheehyTeam Website Is Now UP!

Today is a special day as we launch our website, filled helpful helpful Multi-Tenant Investment Information as well as our "Scouting Report". The Property Scouting Report, is the middle tab at the top. This Report is a based on McLennan County tax information and some general property analysis based on that tax information.

We encourage you to browse and enjoy! And at anytime, contact us when you are ready to invest!

Upcoming Good News: Andy is putting the final touches an a new book that we'll be mailing to Multi-Tenant owners in McLennan County and will soon be posted on our website. So stay tuned!

Fixed or Adjustable Rate Mortgages ...YOU DECIDE!

Fixed and Adjustable Rate Mortgages
The difference between an ARM and a fixed rate mortgage is essentially a question of the mortgage rate. An adjustable rate mortgage is usually beneficial because the interest rate is lower than a fixed rate mortgage. The rate is often lower because the bank/lender adjusts the interest rate as national interest rates changes (also known as prime lending), which will change your payment. This rate may be up to even a whole percentage lower than a fixed.

A brief on prime lending: prime lending is the rate of interest that a lender would give to it's best possible client...this relative standard is the basis on which lending across the country is established.

A fixed rate mortgage on the other hand is advantageous as it sets the rate a little higher (than an ARM), but this rate is locked-in despite where the interests may go. When interest rates are low, a good fixed rate is usually the best way to go, especially if interest rates go up in the near future.

Helpful thought about business and busyness

Hello Friends,
Some of you may not know that I owned a computer business for several years before transitioning full-time into real estate. My experience from that time has taught me many important lessons about successful enterprise, entrepreneurship, business systems, etc. One short thought I wanted to share with you today is an computer problem which is analogous to life and business. Thrashing is what you experience when you are busy working hard, but not accomplishing your goals.

Focus on the tasks that are critical to your success and build your expertise with them.

Have a Great Day!

What is H.R. 1728, and why you should be concerned

The National Apartment Association (NAA) recently issued this concerning notice:
Source: NAA/NMHC Joint Legislative Program, Monday 5/18/09

Pending Legislation Could Prematurely Force Apartments into Foreclosure, Enact Unnecessarily Alarming Renter Notification Requirements

On May 7, the U.S. House of Representatives approved mortgage reform legislation (H.R. 1728) that includes two amendments that are very onerous for apartment firms.

NAA/NMHC are actively opposing these provisions, and we need your help.

Background
The legislation would allow the government to intervene when an apartment property is delinquent, at risk of default, at risk of disinvestment or in foreclosure. Importantly, the bill does not target any specific level of mortgage distress, property condition or occupancy level, but gives the government latitude as to when it can intervene based on undefined circumstances.

Please take a moment to contact your Representative and your Senators to make your opposition known to this back-door effort to seize market-rate apartments and convert them to affordable housing. We also need you to inform them that the renter notification provisions in the legislation, which require resident notification any time a property is in default, even if it is a non-monetary default, are ill-advised, unnecessary given existing state laws protect renters in an apartment foreclosure and could actually trigger a foreclosure or create financial stress on a property by discouraging existing residents from renewing their leases and prospective residents from signing a lease.

Take Action
Additional information on the legislation and a sample letter you can send to your elected officials are available here.

We are also asking members schedule to a meeting with their Representative or Senators during the Memorial Day Recess scheduled from May 25-31 or as soon as possible in their district office to urge them to oppose these two amendments in any final legislation. We have also developed an Issue Fact Sheet that you can share with your elected officials.

If you have questions, please contact Lisa Blackwell, NAA/NMHC's Vice President of Housing Policy, at 202/974-2365 or lblackwell@nmhc.org.

Bank Foreclosures and Tax Foreclosures

Looking to better understand what a foreclosure is? Stay tuned for future videos about my thoughts about the foreclosure real estate market. Good Luck!

Summary:
Tax Foreclosures:
1) a foreclosure that is based on not paying property taxes to the County taxing entity. The property will be sold then to satisfy the past-due taxes.
2) maintains first priority - must be satisfied before a banks debt on a property can be satisfied. Banks may then pay the past-due taxes on a property in order to foreclose and get satisfaction for their lien.

For Investors: a great way to pick up a property for just the amount of the unpaid taxes (a fraction of the property's value). However, if the bank hasn't already arranged to take possession of the property, there will be other investors interested in the property.

Bank Foreclosure:
1) a person/corporation defaults on loan. The bank repossess the property and sell it in order to recover some or all of their remaining debt, plus past-due taxes, and all accumulated interest (if possible).
2) has first priority before any mechanics liens (security interest in the title to benefit a vendor investment to improvements) on the property. A mechanics lien is an attempt to hold up the title in the case of a sale, but in a foreclosure mechanics liens are cleared.

For Investors: can be a benefit: if the investor has done their homework and knows the market. In many cases, the banks are there to purchase back their properties to do deals that were arranged beforehand. You can talk to a realtor to learn more about foreclosure arrangements.