Silicon Valley Bank-> TX Real Estate

What does SVB mean for TX Real Estate? Well, the talk is that the Fed will halt it’s interest rate hikes until at least June. So, perhaps your buyers and investors have a short window to get in the market.

This weekend Silicon Valley Bank (SVB) folded. The federal government transferred all assets under SVB to a bridge bank.

The 2023 interest rate hikes negatively impacted the value of SVB’s treasury bonds. This combined with the trends in the tech industry caused Moody to downgrade SVB. So, SVB attempted to raise money. And then SVB’s depositors made a run on the bank. SVB did not have enough liquid assets to cover the withdrawals so the Federal Government stepped in.

Some analyst continue to say that this is unique to SVB. They believe, or at least report, that no other banks are at risk. Well, the Federal Government doesn’t believe them. So, the federal government took over NY Signature Bank.

What does this mean for TX Real Estate? Well, the talk is that the Fed will halt it’s interest rate hikes until at least June. So, perhaps your buyers and investors have a short window to get in the market.

Texas Real Estate Market – Buy and Hold Investors

Mortgage rates are currently around 7%. What does this mean for you the investor who is looking to buy and hold?

It means that capital is going to cost you more money. And sellers, particular those who are represented by realtors, are not concerned with your capital costs. So how do you navigate this market?

The listing prices are based on past numbers, more specifically comparable properties that have sold. Defining the listing price of a home is a reactive process for realtors and non-investor sellers. Realtors base the price on past comps. Then sellers may be willing to adjust based on days on market.

As an investor, you make decisions based on current scenario and the anticipated impact on the market in the future. So one way to entice the seller and realtor is to offer the list price if they let you control the terms. This works well when both the seller and realtor are motivated. Terms include repayment period, interest rate, and fees. How do you control the terms?

You can control the terms in creative financing solutions such as seller financing, subject to, private lenders, etc. Controlling the terms is easier when the seller is willing to finance the property.

Data Chronicles: Higher Education

This week I came across the white paper I wrote while at North Lake College. Data has always played a signficant role in my career. Excited to see how it is showing up as I shift to a speaker, mentor, and commercial realtor.

In every industry there is data that will help us working smarter not harder.

Here is a snippet of the possibilities, Working Smarter, Not Harder

Data Chronicles: Minority-owned startups

Dallas-Fort Worth leads the state in terms of number of minority-owned startups. Unfortunately, they are unevenly clumped in one area, Accommodation and Food. This is particularly disconcerting when we consider the food insecurity in many communities that house a large percentage of minority residents.

Is there an opportunity for the top heave food start up to support agricultural companies in the area?

StartUp DFW

Office Space: Low vacancy. High Rents…What does it mean?

A few months ago I transitioned from residential to commercial real estate. Truth is for the past two years I have applied commercial principles to residential real estate investments. This explains my lackluster success with non-investor residential clients but I digress.

To get my feet wet, I began with what I love ….Data! Data! Data!. (NOTE: If you remember Cody from the Step by Step TV show, you read that part correctly). In this week Data Chronicles, I unpacked the Office Space trends in the Dallas-Fort Worth Market. I work with small- to mid-sized businesses who are in transition. So, my goal was to find a way to address their pain points.

What I realized is that as big corporations chase quality office space, they are vacating office spaces physically but not actually. These vacancies are not reflected in the data. Technically the corporations are still tenants because the leases have not ended. Hence, my small- to mid-sized clients who need short-term solutions may be able to find a favorable deal. Time to make some phone calls.

For the synopsis of my efforts, check out my link Dallas Office Space – Analysis If you want more details, lets talk. Schedule a phone conversation