Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Real Estate Investing in the Real Estate Investing in the Next Boomtown Next Boomtown –– Austin, TX Austin, TX
The secrets to buying & financing your next investment home
Call Kenn @ 512.423.5626
W/ National Speaker - Kenn Renner, Broker/Investor
“over $200,000,000 in residential transactions since 1983”
SERVICE, EXPERTISE, INTEGRITY
Real Estate Radio – Every Saturday 11am - 1pm Pac Time
www.talk1370.comCopyright 2007 “All Rights Reserved”
BUYAUSTIN.COMBUYAUSTIN.COM
Call Kenn @ 512.423.5626
SESSION ONESESSION ONE
• Service
• Expertise
• Integrity
• Referral
• Dreams
• Goals
• Plans
• Reality
TRUSTTRUST
Call Kenn @ 512.423.5626
TRUSTTRUST
Tether
Secure
Understand
Respect
Truth
Call Kenn @ 512.423.5626
RELATIONSHIP REFERRAL NETWORKRELATIONSHIP REFERRAL NETWORK
TTrusted rusted
AAdviser dviser
PPartnerartner TAP
CPAS
Other Brokers
Builders Architects
RealtorRealtor
CommercialBrokers
Private MoneyLenders
FinancialPlannersProperty
Managers
Attorneys
Lenders
Bankers
Inspectors
TitleCompanies
KR
Insurance Companies
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WHY REAL ESTATE?WHY REAL ESTATE?• Over 85% of the nations wealthy made theirs
through Real Estate
• Leverage, Appreciation, Depreciation
• Business Write-Offs
• Advantages of Mortgage Financing
1. Relatively easy to obtain
2. Rates can be fixed for a term
3. Adjustable, payments can decrease
Call Kenn @ 512.423.5626
WHY REAL ESTATE?WHY REAL ESTATE?
• Someone else helps make payments
(tenant) as balance is paid off
• Eventually will be free & clear
• Tends to follow historical trends
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COUNTERCOUNTER--CYCLE TO THECYCLE TO THECOASTSCOASTS
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APPRECIATION IN AUSTINAPPRECIATION IN AUSTIN
• Solid Appreciation
• www.OFHEO.gov 9.67% citywide appreciation -
7th highest appreciation in the nation from
3rd quarter 2007
• Over building a factor? Not really
•Where is the glut, where is the scarcity?
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STRONG JOB GROWTHSTRONG JOB GROWTH
• Immigration - Look at the license plates
• Inventory Dropping
• Rental Market Strong
• Retail is BOOMING
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REALITIES OF TODAYREALITIES OF TODAY’’S S MARKETMARKET
• The Sky is not falling - at least not in Austin!
• Low Rates - my guesstimate, lower rates
• Relatively Easy Qualifying - though not as easy
as last year
• Strong Affordability Factor
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Why Why ““AustinAustin”” Real Estate?Real Estate?
UndervaluedHighly rated place to beHigh quality of lifeAffordable
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Why Kenn Renner?Why Kenn Renner?
• Born & Raised in California – I know California
• 25 Years in Real Estate• Moved to Austin in 1993 to be a bigger
fish – I know Austin• Now one of the Top Brokers in Austin, TX
with over $80 Million in home sales 05-07
Call Kenn @ 512.423.5626
Why Kenn Renner?Why Kenn Renner?
• Excellent reputation with builders, investors and home buyers & sellers
• Good Ol’ Boy – Insider relationships• I work for you – Representation• I work with investors – Have a system• I invest in the product I sell• Trusted Advisor Professionals (T.A.P.)
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Current Market Conditions and Statistics for Current Market Conditions and Statistics for Austin, Texas 2006Austin, Texas 2006
17th Largest city in the NationPopulation in the Austin area – 1.2 MillionClean city, clean air, pristine lakes & parksHighland Lakes System, Lake Travis, Town Lake, Lake Austin
Great culture, friendly & more laid back. Low crimeLow unemploymentGreat educational systemLive music capitol of the World. The third coast
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Reasons why Austin has experienced such Reasons why Austin has experienced such successsuccess
OpportunityJob Growth & Population Growth Diversified EconomyHighly Educated PopulationBusiness FriendlyNew Businesses
Established businesses expandingEntrepreneurshipVenture Capital Third Coast Room to growPlenty of PowerFew Natural Disaster Potentials
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Big News in Austin !!!Big News in Austin !!!
Relatively inexpensive (for now)$3 Billion in Toll Roads CompleteCommuter Rail ‘08
Property Tax Reform !!!
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Other StatisticsOther Statistics
Median home price - 180,000Average home size - 1500-2000 sq footAverage days on the Market – 62Number of homes on the Market – 9,800Population expected to more than double to 2.5 Million by 2020
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KennKenn’’s strategies for residential investings strategies for residential investing
Buying and holding or buying and flippingNew & Resale Rental homesLocation, Location, LocationTiming, timing, timingResidential rents are about $6-8 per $1,000 in sales price, per monthAbout 9-10 times grossBuilders are in fierce competition for market share
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KennKenn’’s strategies for residential investing s strategies for residential investing (Cont.)(Cont.)
Builder Move-UpOffering big incentives Bulk discounts Builders cooperate with real estate brokersSupply of resale homes decreasing10 Homes in 10 YearsCollege tuition paid for
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Target Market Target Market ––
New homes in popular areas -Distressed resale homesModel sale lease-backPre-leased homes – turn key investmentsKenn’s inventory – Leased, managed, ready to goHigh income areas, golf course communities, PUD’s, Close-in stable areas, yuppie & family areas, amenity rich locations.
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Renner RealtyRenner Realty’’s role:s role:
Buyer’s Broker –Seeking long term relationships & referralsSearch for and find property - cherry pickTie-up, negotiate, acquire, guide, closeAct as eyes & earsAttend walk - through Facilitate closing
Call Kenn @ 512.423.5626
Refer lendingRefer lending
Hand picked preferred lendersBuilder’s lenders Get pre approvedCooperate with lender requestsFinancing interstate takes more effort & patienceStated income, Interest only, 5/1 ARM, 7/1 ARM, 15 & 30 year loans
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Refer managementRefer management
Hand picked preferred managementPre-leasing, management, daily operationsLeasing fees 60-80% of 1st months rentManagement 7% -10% of gross rents per monthSelf Manage ? – Not Recommended
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Sample ProSample Pro--Forma*Forma*Example Scenario
Purchase Price: $150,000Down Payment: $ 30,000Closing Costs/PrePaids: $ 4,200Cash to Close: $ 34,200Loan Amount: $120,000Interest only @ 6%: $ 600Taxes @ 2.4%: $ 300Insurance & HOA: $ 100Total Payment: $ 1,000Management @ 7%: $ 70Payment + Mngmt: $ 1,110Rent Range: $1,150-$1,250
* These proformas are illustrations and are for comparison purposes only. They do not include expenses for reserves or replacement costs in the future nor additional fees & reserves associated with management, utility connection, leasing, etc. Further – rental rates, tax rates, insurance, loan costs and interest rates vary.
Call Kenn @ 512.423.5626
ReferralsReferrals
Exit StrategyExit Strategy
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
11500 Morgan’s Point
$119,900
Lease @ $1,100 Per Month
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
1813 Horse Wagon
$154,900
Leased @ $154,500
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Call Kenn @ 512.423.5626
7829 Squirrel Hollow
$179,900
Leased @ $1,295 per month
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
1616 Musket Valley $189,900Currently Rented @ $1495
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
10524 Dunham Forest
$209,900
Leased @ $1,550 per month
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Call Kenn @ 512.423.5626
Contact Info:Contact Info:Kenn Renner
Real Estate Broker/InvestorRenner Realty, Inc.BuyAustin.Com
512-423-5626Real Estate Radio – Every Saturday
11am - 1pm Pac Timewww.talk1370.com
