TexaPlex - what you probably aren't hearing about Texas

David Winans coined the term “Texaplex” to describe the triangular region of Texas that contains 75% of the state’s population. Watch the video and see why everyone is talking about the Texaplex.

This video is about 8 minutes long, but keeps your interest.

My only criticism, is that it doesn't talk much about Waco (or McLennan County for that matter). So to supplement, read below the video for information you may not know about Waco.



Source: texaplex.com

Some Interesting Waco TidBits

The Waco Indians

1) Waco is named after the Huaco Indians, the first inhabitants of this area. The Huacos (some sources spell it 'Huecos') were a branch of the Wichitas and were closely related to the Tawakonis. The tribe lived in beehive shaped huts, 20- to 25- feet high, made of poles, buffalo hides and rushes. The Huacos had approximately 400 acres of land under cultivation, planted in corn, beans, pumpkins, melons and peach trees.
Source: www.wacocvb.com

2) In 1886, Baylor University moved to Waco from Independence, Texas and merged with Waco University. Founded in 1845 under the Republic of Texas, Baylor is the oldest continually operated university in Texas.
Source: www.wacocvb.com

3) Waco Texas is home to the ALICO Building & Dr Pepper Museum. In 1885, the soft drink Dr Pepper was invented in Waco at Morrison's Old Corner Drug Store.
Source: http://en.wikipedia.org

4) I-35 is the major north-south highway for Waco. It directly connects the city with Dallas (I-35E), Fort Worth (I-35W), Austin and San Antonio. State Highway 6 runs northwest-southeast and connects Waco to Bryan/College Station and Houston.
Source: http://en.wikipedia.org

5) In 1845, Baylor University was founded in Independence, Texas, making it the oldest institution of higher learning in the state of Texas. It moved to Waco in 1886 and merged with Waco University, becoming an integral part of the city. The university's Strecker Museum was also the oldest continuously operating museum in the state until it closed in 2003, and the collections were moved to the new Mayborn Museum Complex (which opened in 2004).

Source: http://en.wikipedia.org

Investor Q & A - When a Friend Buys You Out

Andy!

Could you give me some advice on a situation I have?

I own a home in Waco that I bought several years ago with a friend. Long story short, he bought me out of my share of the home in 2004, but he still owes me $3500 and my name is still on the note & the deed. He is now able to pay me the $3500 and he wants to get a special warranty deed drawn up to remove my name from the title. This sounds like I would still be holding the risk for the property without having any legal right in the property since my name would be on the note but not the deed. What would you recommend?

Hello. I would definitely be concerned if you are still on the note and not the deed. Effectively, you would still be responsible for the payments but have no ownership in the property. The house is still being used as the primary collateral for the loan, but if your friend defaults on the loan then it would affect your credit as well. You are essentially a cosigner on this note. I think that I would have him research getting you off of the note and placing both the house and the note in his name. If your friend is married that might complicate the matter even more. If he is unable to get you off of the note, I don’t see what the rush is to get you off of the deed as well.

Assuming that you are not both on the note, keep your name on the deed, until you can be released from the note. Best Case scenario: The lender may let you off the note if the other borrower is strong enough. Worst Case: Your friend needs to refinance the mortgage and pay you off completely, this would effectively be another closing (or property purchase). This of course, brings additional troubles ranging from title insurance to appraisals to lender fees, etc from anything up to 2% of the sale price in additional expenses. These expenses can be figured out at closing on the Settlement Statement.

In summary, this could have been foreseen and avoided if both parties had considered their Exit Strategy. By principle, I don't recommend anyone over-leverage themselves to make a deal happen. Smart financial principles could have prevented this regrettable outcome. A good deal is a one where your financing is fully collateralized by the property allowing you to have an easy exit.

--locations, property, address, and $$ amount changed to protect the innocent!--

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!