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KMC Homes - Blog of Kevin McCawley,  Investor & Realtor, Elite Texas Properties

2013-01-17 The Latest Rehab is Complete

There's no better way to begin a new year than with a rehab project that is ready for the market, and that's what we have in 10715 Hillcroft. After helping the previous owner sell the home to an investor, who also became a client of mine, she embarked on an ambitious rehab project. This included replacing the old, worn flooring throughout the home with gorgeous wood-laminate and tile floors in the front of the house, and plush new carpeting in the bedrooms; repainting the interior with a warm, neutral earth tone; and a complete remodel of the kitchen and 2 bathrooms. The kitchen was updated with new stainless-steel appliances, including an exhaust hood, tiled floors and a beautiful granite counter top. The guest bathroom was remodeled, installing all new tile on the floors and in the shower, and a new vanity, framed mirror and tulip light kit completed the picture. And in the biggest transformation of all, the Master Bathroom was given a complete rework which allowed the installation of a full bathtub, replacing what was once a shower-only Master Bath. This makes this home one of the few in the area with this floor plan that actually has a tub in the bathroom. Along with the new tub was the installation of new tile on the floors and in the bath, and a new vanity, framed mirror and tulip lights finished this now wonderful Master Bath. The home is now a beauty to behold and a terrific place that someone will soon call home. To view the before and after pictures, a full-motion video of the whole house, or to get information on purchasing the home, click the tab above for 10715 Hillcroft!

2011-03-03 Another One Bites the Dust!

So, 10202 Sagecanyon is a listing that is now...history! This home was on the market for a whole EIGHT days before we got the 1st offer! Although that one didn’t work out, we got the 2nd offer only 14 days later, and it only took a total of 3 months to complete the transaction! The home was on the market for a TOTAL of 4 months...pretty darn good in this economy, and with all the problems that Lenders (and new FHA regulations) are causing today. Again, pricing and condition were everything for this home! Both were right, and “the market” jumped on the house! More Lender “missteps” caused this closing to go longer than it should have, but in the end, it worked out and everyone is happy, including me! You can see the sales data by clicking the link on the left. Give me a call if you're thinking of selling...I knowI can help you achieve the same results. Real estate is just another game...once you know the rules and get the right "coaches", you can play too!

2011-01-10  Perseverance is the Name of the Selling Game in Houston

Finally got that home on S. Fairhollow sold. It was a terrific house for families and the neighborhood is lovely, with friendly neighbors, and it was SO close to major highways...I-10, 290, Beltway 8 West...it was a terrific location for those wanting to live on the West side of town. Regardless of the headaches described below in my 10-27 entry, sticking with the process and moving on is the ONLY way to sell in this rough market. As it turned out, ANOTHER lender-problem popped up before it was all over, but this deal finally closed (the lender for my Buyers was REALLY TERRIBLE...DEFINITELY was NOT on top of doing his job, and that, to me, only reflects badly on his company, which I would NEVER use or recommend to anyone myself...they cost me an extra 2 months of being on the market because the guy wasn't keeping up with things on his end and failing to order necessary documents in a timely manner). Can you say "Gut check"?

2010-10-27 Remember This When Selling a House...It's NEVER a "Done Deal" Until You're Walking Away From the Closing Table

So....that wonderful offer I got to buy my house (described below on 9/21/2010)? We got to CLOSING DAY (Oct 25) before the Buyer's Lender decided they no longer qualified for the loan! No sale! No closing! Not to bore you with the gritty details, just suffice it to say...the Lender "pulled" one last document which needed checking for the Buyers to get their loan, and guess what...they didn't pass! It's a technical screw-up on behalf of something to do with their taxes (I know the details, but never mind). And it wasn't even the Buyer's fault! The folks who prepare their taxes screwed up...A FEW YEAR'S AGO! This screw up now has to be cleared up before the loan can get approved, and the Lender told me it would take a minimum of 6 weeks to get cleared.

How would YOU feel if, on CLOSING DAY, you found out that the sale of your house wasn’t going to happen? Would it screw up your current plans for moving? Would you suddenly have to stop a purchase of YOUR OWN new home, or now have to pay TWO mortgages? Would you be ticked off? Ready to kill someone (like the Lender, who didn't pull this final document until the last minute because it costs them money)? Ready to tell the Buyers to "bug off" and kick the dog? Well...I wasn't any of those things. I was disappointed, and that’s about it. Do you know WHY I wasn't mad? Because I KNEW something that YOU MUST REMEMBER if you are going to sell a house in Houston, Texas (and probably anywhere else, for that matter). And here it is...no matter HOW REASSURING & HELPFUL & NICE the Buyer's Realtor is; no matter HOW MANY TIMES you are told that the Buyers are credit-worthy and that they will have NO PROBLEM getting the loan; no matter HOW MANY TIMES YOU HEAR “Oh, they just LOOOOVE the house!”…no matter ALL of that…just remember THIS: it’s never, ever, EVER a done deal until you are walking away from the closing table. Period! ONLY after you and the Buyer have signed all the documents necessary, AND the Lender has wired the payoff money to your old mortgage company, AND the Title Company has given the Buyers their certificate of Title Insurance and you’ve handed over the keys…ONLY THEN have you sold your house. Until, AND ONLY AFTER, those 3 things have taken place, you are still on the hook for that mortgage! Don’t EVER forget this…because if you are like most unfortunate folks, you will suffer all kinds of unnecessary distress, angst, sleepless nights, heartburn, etc. when trying to sell YOUR house, because you just “KNEW” that everything was going along ok, and BAM! ON THE LAST #@!*#% DAY! THE CLOSING DAY!!!! The Lender pulls a piece of paper that suddenly DISQUALIFIES your Buyers from getting their loan. POOF!!...your house sale is no more.

For me, there is light at the end of this tunnel, as the Buyers still want to buy the home, and I am, of course, still willing to sell it to them. They Buyers weren’t bad people, and this surprised them as much as everyone else involved. So, I’m happy to sell to them if they get this “hiccup” cleared up. BUT, I’m not WAITING on them. I’ve put the house BACK on the market and will accept other offers if they come in. However, since the market has been SO BAD lately, it wouldn’t surprise me if I’m at the closing table with this same couple in 6 weeks. They may be the ONLY people who EVER want to buy this house at this point in time, and while I was hoping it would be done already, I’m MORE THAN HAPPY to work with them again. After all, I don’t take this personally, and neither should you. After all, it’s just business!

2010-09-21  Got a Contract!

Just a quick note to say I got an offer on my house at 12035 S. Fairhollow a few days ago, and I've accepted it! Buyer's inspection happens today, but I don't think they will find much of anything that needs repairs...I practically replaced everything in the house! Once I get the contract in my hands (it's been back and forth a few times!) I'll mark it as "Option Pending" in MLS (HAR.com). It's never a "done deal" until you are walking away from the Closing Table, so I'm cautiously optimistic. However, this is the first step...getting that offer. It only took 1 month, 12 days to get the offer, so I cannot complain about that AT ALL! It's always nice to know that you've priced a home correctly to attract enough Buyers so that SOMEONE will probably make an offer (and THIS ONE ITEM can kill you and eat away at your profits more than ANYTHING else...pricing the home incorrectly, which can cause it to stay on the market way longer than it should have). So many people are STILL over-pricing their homes when selling, and it makes their homes just sit. In my opinion, it's definitely a Buyer's market right now, so Buyers don't have to even bother negotiating with you if you've got your property priced too high...they just move on to one more reasonable and make THEM an offer. And all the while, you sit and wonder "Why isn't ANYONE at least making an OFFER??" All you have to do is ask a Realtor (like me!) to get you Comps on the property and follow their guidance when they suggest a listing price range to you. If you've got a house that's sitting, and has been for a while, it's most likely over-priced...in fact, I'll say it is DEFINITELY over-priced. EVERY house will sell at the right price. You can either "test" the market with what you HOPE to get for the home, or you can work with a Realtor (like me!) to help you price it right the 1st time. Wouldn't YOU like to get an offer on your home after roughly 1 month? Then contact me and let me help you figure out the right price for your home! If you're an Investor (and are NOT planning to use me to list your house), then click the "$10.00 COMPS" tab to the left. If you're a home-owner just wanting to sell, then click the "Contact Me" tab, also on the left, and I'll get in touch with you to discuss your options! It's not too difficult to sell a home...if it's PRICED RIGHT!

2010-09-09 Can't Win 'em All!

I'm exhausted, so if I misspell something or don't quite make sense...forgive me. Unfortunately, I lost a deal today, but as my title says, "You can't win 'em all". I had Buyers lined up for a wholesale deal I had in play, but they were not going to be able to get their financing in time to meet the Closing Date I had contracted with the Seller. Apparently, the Seller has recently received notice of "interest" in the home by a couple of new potential Buyers, and this led her to decline to extend the Closing Date for me (for 15 more days, the time MY Buyers would need to get their money together). This home has been on the market for over 520 days and is in TERRIBLE shape (making it an EXCELLENT candidate for a deal). It has had very little interest in that 18 months on the market, but all of a sudden, everyone wants to see it. Wouldn't you know it! So, you can easily say I was within 15 days of a very big payday, but it just can't happen (I know no one else will come along in the next 6 days with the cash necessary to buy the contract from me). That all being the case, I told the Seller's Realtor that I would simply terminate my interest in the home to allow the Seller to pursue her other interested parties.I mean, why not? What good is it going to do me to drag out our contract until the closing date, just to make the Seller wait on pursuing those deals? Heck, if the other folks can't actually close the deal with the Seller either, maybe I'll get another shot at it. Whether or not this deal "comes back to me" or not, it doesn't matter. Rather than get all angry or dejected about it, I'm just going to move on to find more deals. In our market, deals are everywhere, and sulking over this "deal gone bad" does me no good, so...on to the next one!

2010-09-06 Houston! Heck yeah, baby!

Want to know why Houston is the BEST place in Texas to live? Why we kick-butt at so many things? Why it's one of the absolute BEST places to invest in real estate? Check out the video by clicking the picture of Downtown Houston!






And once you're done basking in the glory of our humble city, you can charge your batteries even more by watching the 2nd video, which talks all about THE GREAT STATE OF TEXAS!!! Just click the picture of Texas!


Make sure you open the videos to FULL SCREEN, so you don't miss anything! Yee hawww!
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Downtown Houston
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The Great State of Texas

2010-09-03 Offers, offers & more offers

   I found a couple of properties this evening (or, I guess, this morning now, since it's 6:00am) that looked like good investments if I can get them at my price, so I sent a few offers this morning. As usual, they are for FAR LESS than what the Sellers are asking. However, I've had pretty good luck, so far, with Sellers at least responding back with counter-offers, which keeps the door open (you can walk through OPEN doors). Because of how I pick my properties, I expect this to be the case on at least 25% of the offers I make, and so far, that's been more or less the case, which gives me plenty to work with. I'll let you know if any of them come through as deals I can market to my Buyer's list.
   Another thing I had reinforced to me this week was...don't EVER take the 1st "No" as the final answer. If you propose something to a Seller, and they reject your proposal, find out why! Find out if you can change one or two terms...maybe there's ONE "sticking point" the Seller isn't happy with, and if you can overcome this, you'll get the deal. I was able to do just that this week and now I've got a chance to make something over $40K on this house! If I had given up after the 1st "No", I would just be letting that money walk away, and I SURE didn't want to do that. Once I thought more about how I might be able to still serve this Seller, I was able to come up with a deal that she actually LIKES, and she doesn't feel "talked into" something she will regret later. It's the classic "win-win" situation. She gets what she wants...I get what I want (the chance to move this property and make $ on it) and we'll both walk away happy when it sells! Always try to be helping the other party in your deals. It makes them "fans" of yours who will promote you and generally creates "good will" toward you, and THAT can go a LONG way in helping you succeed! I'll let you know how it goes after next weekend (yes, I actually believe I will sell the house next weekend, and no, I'm not just guessing!). Stay tuned...
   The last thing I think worth noting is this...don't EVER stop looking for the next deal. You never know when one that you're "so sure" is going to work out...doesn't. And if you stopped with that deal, waiting for it to finalize, you may miss a terrific deal along the way. Keep analyzing properties, working the numbers, sending out offers...the one you were waiting on may fall apart & have kept you from an even BETTER payday!
   Oh! And don't be shy about paying bird-dogs! I've found that MOST people who you TRY to enlist as a bird-dog will actually be TOO LAZY to do anything (which always amazes me), but if you find even just ONE who is "hungry" and willing to do a little work, it can pay off big! Speaking of, I'm currently offering $500.00 to anyone who sends me the phone number and address of any For Sale By Owner (FSBO) signs that they see. If I can make a deal w/that Seller, then when I get my $ from the deal, I will HAPPILY pay you your $500.00. So send me addresses in all but the worst neighborhoods! Send them to the "Contact Me!" link to the left so we can BOTH make some cash! Until next time...

2010-08-26   So, What's Your Outlook?

I thought I'd take a poll to see what everyone's outlook on the Houston housing market is lately. As investors, the state of the market and the overall economy is crucial to our decision when evaluating properties for acquisition. There is so much "doom & gloom" talk on the news these days that I wondered if it is affecting many of you and your decisions to purchase a home for yourself, or for investment purposes. So, take the quick poll to the right and weigh in with your current view. I hope your economic "world" is doing well, but if it isn't, or you know someone who may need help with their home, have them contact me at the left under "SELL YOUR HOME FAST"...maybe I can offer them a way to "delete" the stress from their lives!

2010-08-23   Saturday Was a Great Seminar!

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Saturday, Aug 21st, was another terrific RE investing seminar put on by www.myhousedeals.com! There were great speakers talking about mortgage loan opportunities for investors, as well as a bunch of folks who have been in the rehabbing/flipping/rental business for years, all sharing what they know about this business. And THAT is how you learn the most about how to invest here in Houston...listening to, and asking questions of, those who have done this before...not unlike every other business (except the rewards in terms of both money AND your time can be so many more times greater than working a traditional job)! I even got to speak for a minute to the audience about the 2 deals I currently have for sale as wholesale deals (see the side panel to the left), AND about my new service I'm offering to investors...to generate "Comps" or CMAs (Comparative/Competitive Market Analysis) for any investor who needs this information, for the very small price of $10.00 per property. I remember when I was starting out and beginning to analyze deals, and I kept running into the fact that if I wanted to know what a particular house was worth on the market at that time, OR how much it may rent for, I didn't have a way to get this info except to ask a Realtor, and they were never very excited about getting this information to me (I understand this, but I also realize that this was something any investor NEEDS to know before they make an offer on a home...how else will you know what to expect your investment to be worth once you finish fixing it up for sale, if you don't know what people are actually paying for home in the neighborhood?). I'm happy to offer the Comps to all my fellow investors for the modest sum of $10.00. With that, I offer a WHOLE LOT MORE than JUST the comps for their house, but I give them a lot of extra info that can help them make their decision about that property, and I offer a 24 hour turn-around time. Simply go to PayPal, choose to send money to my e-mail address (kevin@kmchomes.net) and once I have the receipt for payment, I get the comps to you in 24 hours or less. I think its a fair deal, and apparently, so do some of the investors I spoke to. I can't tell you how many folks approached me throughout the rest of the day, asking for my card so they could get comps. And I've already done a few (over 5 in 2 days), so this may work out great for all of us! Anyway, it's a service I'm happy to offer and hope I can help a lot of people make GOOD, INFORMED decisions before they sink their hard-earned money into an investment property. Besides all of this, I made some good contacts for folks who my like to buy my wholesale deals, as well as some folks who I may partner with on some deals so we can share both the expenses AND the profits! Hey, I'm all for it! So, all in all, it was a great seminar and networking opportunity, and well worth the time to go. Heck! I'm showing the S. Braeswood house tomorrow to an investor who may purchase the deal from me, and this came from my being at this seminar, so don't EVER underestimate the possibilities of attending one of these...you never know where your next deal may come from!

2010-08-21   Great Seminar Later Today

Going to the www.MyHouseDeals.com seminar later this morning and it should be a good one. Their seminar last month was the one that made me realize I could get back into RE investing, and that the Houston investing market was doing ok. So, I'm excited to go back, as they are going to have another round of great speakers/educators, and what I have come to believe is their best feature...the Networking Wall and Networking Room. With over 450 registered investors for today's seminar, there will be plenty of folks to get to know, and networking is one of the BEST ways of moving forward in this investing business. The more people you know, the more you can learn. And the best thing I've found is, Houston investors LOVE to help other investors learn what they need in order to advance and become successful. We've got a GREAT investing community here, and that only makes investing in RE in Houston even "sweeter"! See you at the seminar!

2010-08-19   The First One

12035 South Fairhollow Lane, Houston, Texas 77043. Most people remember their 1st boy or girlfriend with fondness and nostalgia...the uncertainty, the hope, all the "what-if"'s. Although it eventually ended, it's almost always looked back on with a sense of bitersweet, even if things didn't go "right" the whole time. So, while not equating my investment business to love, I will SURELY remember this house...my first flip! And it's not even "flipped" yet, although, it's for sale right now. I acquired this home back in 2005 as a pre-foreclosure. After a couple of years of study, reading, seminars, joining investment groups like the RICH Club (www.richclub.org) and Lifestyles Unlimited (www.lifestylesunlimited.com), more reading, more seminars....I started looking for my first one. I found “her” by mailing out postcards…lots of them…to pre-foreclosure owners that I found on one of my then favorite RE sites…www.foreclosehouston.com (if you are after pre-foreclosures, a subscription to this site is a MUST in my opinion). I say “then favorite sites” because I have a different strategy now for getting properties, and going after the homes on this list isn’t part of that anymore. So, after many postcards (plain, white, 4-to-a-page perforated, so I could print 4 fronts, turn them over and print 4 backs…NOTHING fancy AT ALL), I got a call from the owner of the Fairhollow house. I went over, inspected the property, worked a deal with the owner and went home a happy man. I’d done my first deal! We met up at the bank a few days later so he and his wife could sign a Warranty Deed and other paperwork necessary (which I had a lawyer draw up for $250.00), and the bank notarized the docs for me (Wells Fargo does this for free for it’s customers), and all of a sudden, I owned this house! Cool! I made one of the 1st mistakes I’ve learned so far in this business…don’t allow the current home-owner to do any repair work for you. Why? Because he’s leaving in a few days, and he doesn’t CARE what kind of job he does on the home, and most likely, he’ll take EVERY shortcut available to just get it done so you think its ok, take your money for the job, and then leave. This is what happened to me. He was “down on his luck” and I was trying to be a “good Christian” and help him by letting him do some of the necessary repair work himself because he was a contractor by trade (he gave me a business card and everything! Uh huh). I told him “Well, I’ll let you do some of the work so you can make some bucks…why not!?” Well, I LEARNED why not! (see above…especially the part about “not caring” and “taking shortcuts”). I let him re-tile part of the bathroom shower that needed it and some other work…most of which had to be RE-DONE by my REAL contractor…AGAIN! I looked and realized that the work the distress home-owner did just wouldn’t cut it and had to pay TWICE for about $4000.00 worth of work. This KILLED the profits I WOULD HAVE MADE from flipping the house, so I opted to rent it out instead and wait for the house to (hopefully) appreciate in value. I rented it out to a couple with 3 kids, both working steady jobs, and for the most part, had no problems with them for 5 years. That got me to today, when I decided that I wanted to sell the house, get whatever equity I could out of it (it should be good by now, I thought, and it is), and use that money as “seed-money” for the next property. So, I informed the renters I was not going to renew the lease once it was over (I gave them 4 months’ notice so they could make arrangements to leave, and even ended up going month-to-month with them for 4 EXTRA months, just so they could wait until their kid’s school year was over before having to mess with moving), and in June of 2010, I had my house back, ready to rehab and put on the market. I was a very good landlord to these tenants (the same ones for 5 years), but they didn’t return the favor to me when they moved out…the place looked like a foreclosed dump! Any investor out there knows what I’m saying…if you don’t’ know what I’m saying, go check out my before and after pics for this house (coming soon!). I didn’t check the property before they left, I just got the keys back from them and said” Now if you give me a forwarding address, I’ll send you any amount of your deposit back that you may be due.”. They just looked at me blankly and nodded their heads. Once I saw the place, I knew why…THEY knew they weren’t getting any of it back! Anyway, long story short, I got the house rehabbed (very nicely, I think…check it out yourself here), and it’s on the market as of today, August 19, 2010, for $119,000. I’ve had 4 showing so far, but no offers yet, but it’s only 2 weeks old, so I’m not sweating it. Hopefully, it will sell pretty soon. As it is, I haven’t waited to go for the next properties. As you can see, I’ve got 2 more under contract and up for sale right now too (the Hillcroft and Braeswood homes). These are wholesale deals, so if you know anyone looking for a bargain on a house (one’s a “fixer-upper”, the other is ready to move in), tell them to contact me on the contact page! Ahhhh….Fairhollow….12035 S. Fairhollow Lane…I learned a lot from you…we had our moments…but through 5 years of good times and bad, I’m sure I’ll miss you once you’re gone. I’ll always remember you fair, Fairhollow… you were my first!

2010-08-18   I'm back in the real estate game!

After a few years off to pursue some photography fun (check it out at www.kmcstudios.com , and yes, the photos above are my own), I've returned to the way I LOVE to make money...investing in Real Estate (hereon known as "RE"). The market has gotten much better over the past year as far as investing goes, and it's time to go for it again! There are SO MANY ways to make money with RE, it's amazing! So, time to get after it!

As with all endeavors of any worth, you've GOT to get yourself educated, and I want to say that two of the best educators I've found recently are www.wholesaleacademy.com and www.mentoringthatworks.com . I am a member of both groups. I've been in the RE investing business here in Houston since 2001, and I can tell you that you won't find better folks to learn from than Jack Mize and Jaremy Moritz at the Wholesale Academy, or Sean Arnold at Mentoring That Works. Both are EXCELLENT at delivering solid, understandable information and advice that is (and this is the MOST important factor of their education) RELEVANT to our Houston market. Their knowledge comes from years of experience DOING THIS THEMSELVES, AND THEY STILL DO THIS TODAY. As such, you'll get great mentoring from people who know not only our Houston market, but all the Texas laws and how they affect your investing endeavors. You CAN learn a good bit from national "gurus", but you CANNOT BE BETTER PREPARED than to learn from people who deal with the Texas RE laws on a daily basis, and that is what these two RE mentoring company's bring you! If you are interested in investing in RE (and you don't want to lose your shirt in the process, or worse yet, end up in court), you need a mentor of SOME kind to guide you. They don't come better than Wholesale Academy and Mentoring That Works!
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