Comparing the 4 major Texas markets (Austin, Dallas, Houston, and San Antonio) housing data for the last 15 months through November is painting an overall picture of elevated inventories due to housing affordability being negatively impacted by the recent rise in 30 year mortgage rates.

This month, we have introduced some NEW GRAPHS ON THE LAST PAGE that compare each market’s results to each other. We continue to provide detailed information by each market for a deeper dive. We hope you find this information useful in your real estate endeavors.

To eliminate seasonality, we compared the 4 major Texas markets (Austin, Dallas, Houston, and San Antonio) housing data on a Year-over-Year “YoY” basis, from October 2024 versus last October 2023. Check out the graphs and detailed information below for further analysis.

Major theme: 30-year mortgage rates impact sales volumes.

Recently released September home sales data for the state of Texas indicates more of the same 3 major recent trends: 1) Seasonality and slowing down of sales, in general 2) Months of inventory of homes continue to climb, with San Antonio being the highest at 5.2 months, and 3) Average Price of homes continue declining.

Based on MLS data aggregated by Texas A&M Real Estate Research Center, please see this month’s market update and related graphs. Presented are the last 15 months of selected housing data for Texas’ 4 major metropolitan markets of Austin, Dallas, Houston, and San Antonio.

The recently released August 2024 figures have moderated from their recent market declines. Active listings moderated, as well as the supply of inventory. 

As a private lender, we field a number of new inquiries every week from people seeking to borrow money. Unfortunately, not every inquiry results in a new loan. In fact, being diligent with underwriting the property and the borrower may be the most important step in the loan process. We thought it would be helpful to share some of the common reasons that a loan request gets denied.

There is no doubt that investing in real estate is capital intensive whether you are an all-cash buyer or borrowing money. As a private lender, we want to ensure that our borrowers are fully aware of the costs involved with closing a loan that are in addition to their down payment and loan costs.

Hard money loans often come with a variety of fees, which can vary significantly between lenders. Here's a breakdown of potential fees and their typical ranges as compared to REAL Texas Capital’s typical fee structure:

The recently released July 2024 figures look very similar to last month’s figures overall. Active listings continue to rise and continued new highs of inventory supply.

Real estate investing almost always demands substantial capital. To overcome this hurdle, savvy investors often bring in equity partners that bring money for a share in future profits. One powerful strategy that is often overlooked (and does not require an equity partner), is cross-collateralization.

Properly protecting your real estate investment can be confusing even for the most seasoned investor. This overview will provide a basic overview of the different coverage options. However, we recommend consulting with a licensed insurance professional to ensure you have the right coverage in place.

A title commitment is a document issued by a title insurance company before closing on a real estate transaction. It outlines the conditions under which the title insurance policy will be issued. Essentially, it's a promise from the title company to insure the title if certain conditions are met.

In summary, looking at the totality of the 4 markets, active listings have steadily increased since December 2023 to new highs each month ending in June…indicating a sluggish market and raising the average days to sell a property to 87 days (almost 3 months)

Understanding the differences between “Hard Money Lending” versus “Private Lending” can be subtle, yet important. Overall, Private Lenders oftentimes have flexibility that Hard Money Lenders may not have and are more boutique lending experience for the borrowers. We have compiled a quick article illuminating differences, so that you may choose which option may best suit your needs

To close on a loan for your real estate investment project, private lenders will present a number of documents for your approval. The loan documents presented to you will be determined by your lender as well as the rules of the particular state. Below are the standard documents we require of our borrowers:

So, how do private lenders decide who gets a loan and who does not? The answer lies in the framework known as the “4C’s of underwriting.” These 4 areas provide the lender with a picture of what they want to know about you and your project.

As a private lender, we experience confusion from some Borrower’s on how much, when, and why private money loaned funds are determined and distributed.

As a result, we felt it may be helpful to go through the steps of a “standard” fix and flip loan and how funds are disbursed, and related priorities.

Let’s take a look at the 7 KEY steps to guaranteed success in your loan approval process.

Differences Between a Private Money Lender and a Bank for Fix-and-Flip Projects

Fix-and-flip projects involve buying a property, renovating it, and then selling it for a profit. Choosing the right financing is crucial for success. Here's a breakdown of the key differences between using a private money lender and a traditional bank loan for your fix-and-flip project

What it takes, and key characteristics, to get started and be a successful fix & flipper.

As a private lender who sees a variety of fix and flip projects, we thought it prudent to emphasize one of the easiest, but most important, items to not underestimate the importance of: upfront due diligence on a fix & flip project