Austin Safe High Return Investments

This article originated because of differences of opinion among Texas appraisal districts, taxpayers, and their representatives relating to the reliability of the commonly used mass appraisal income approach model. It examines the elements of the model, presents associated problems, and provides a suggested resolution.
THE TEXAS CONSTITUTION sets out five rules for the property tax. Taxation must be equal and uniform. All property must be valued and taxed equally and uniformly. This applies to similar types of property-for example, all residential homes, commercial properties and personal properties. No single property or type of property should pay more than its fair share of taxes.1 Sometimes, the methods used in the past must be reexamined and tested to achieve equal and uniform taxation. This article originated because of differences of opinion among Texas appraisal districts (districts), taxpayers, and their representatives relating to the reliability of the commonly used mass appraisal income approach model (the model). Although this approach provides districts with a standardized analysis and is direct and systematic, it is, in the opinion of some, inconsistent. An examination of the district’s model illustrates the fundamental differences of opinion in the definitions and application of three major components needed to secure market value assessments. The areas of disagreement revolve around the use of market value sales data, the application of the fee simple estate ownership, and the fairness and equality of valuations.
The Model
In the normal course of a valuation review, the district examines the property’s December 31, 12-month profit and loss statement and the January rent roll. They generally use a model whose result is determined by these steps:
1. The January rent roll and the most recently signed leases or lease. By using these leases, an aggregate rate is arrived at as of January 1-one rental rate being applied to the entire property. Another method is to use the district’s defined lease rate by applying mass appraisal standards
2. The district’s market vacancy is deducted
3. The district’s standards for operating expenses, generally with no allowances for reserves, tenant finish out, or leasing commissions, for example, is deducted
4. A net operating income (NOI) on the subject property is calculated
5. A standardized capitalization rate that districts have determined is reflective of the market, property class, and age is applied, which in their opinion, results in a fee simple market value
In all fairness to districts and their staff, they do not, as a policy, limit themselves to the income approach to value. Generally, they give consideration to additional information, such as recent appraisals, purchase prices, asking prices, the sales comparison approach, and the cost approach to value.
THE PROBLEM
To determine a fair value, commonly accepted valuation techniques, such as the sales comparison, income, and cost approaches should be considered, and then the most appropriate method used. However, because this article revolves around property tax valuations, the valuation should use a test consisting of three tax components to avoid an incorrect result. The components, as previously stated (i.e., market value, fee simple estate, and fair and equal taxation) make up the analysis of property to determine a fair valuation. The following paragraphs review some commonly used terms.
The first term to understand for property tax purposes is market value. The Texas Property Tax Code (Texas Code) requires all property to be appraised at market value as of January 1 of each year. The Texas Code defines market value as follows:
Market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:
1. Exposed for sale in the open market with a reasonable time for the seller to find a purchaser;
2. Both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and
3. Both the seller and purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.
A fee simple estate is defined as: “Absolute ownership unencumbered by any other interest or estate subject only to the four powers of government.” The fee simple estate is divided into several components:
1. Leased Fee. The lessor’s interest, the right to receive the rent as stipulated by the lease, and the reversion of the property at the expiration of the lease
2. Leasehold. The lessee’s interest and the right to use and occupy the real estate during the term of the lease, subject to any contractual restrictions. The leasehold may include rights to develop, alter, or sublease, for example
As previously mentioned, the Texas Constitution states that taxation must be equal and uniform and that all property must be valued and taxed equally and uniformly. In addition, no single property or type of property should pay more than its fair share of taxes.
Consider, on the surface, some of the problems a knowledgeable investor might have with the district’s income model described above. Furthermore, recognize that the model is simply, in reality, a pro forma, a projection of the property’s future net operating income (NOI). Forecasting a property’s performance is difficult and is not conducive to mass appraisal techniques. It is difficult to predict all the ups and downs of a property, the real estate industry, and the numerous external factors that can affect property. Therefore, it is difficult to predict the performance of a property. Due diligence must be used in the model’s forecast.
To begin with, the methods to determine market rental rates should be considered. The approach might be standardized; however, it is generally not based on intimate knowledge of each property’s individual lease property, nor is it usually confirmed by comparable market leases. It can be argued that using the model’s technique to determine a single rental rate for an entire building creates, in theory, a single tenant property. Having a single tenant building can be looked at in the same manner as an investor owning one stock. Extending this analogy, an investor with a multi-tenant building might be the same as an investor with a diversified investment portfolio. Thus, a single tenant property could have more risk than a similar multi-tenant building. This possible increased risk is reflected in the capitalization rate that is discussed later. Moreover, the model does not consider income appreciation, depreciation, or the effects of inflation. The same arguments can be used in predicting the occupancy rate of a property.
Using the district’s standards for operating expenses and not making allowances for reserves, tenant finish out, or leasing commissions, is not typical for a knowledgeable investor. An investor also considers the operating expenses of like properties in the subject’s neighborhood or submarket. Considering the arguments noted above, it is questionable if the NOI derived from the district’s pro forma is accurate.
At this point in the review of the model, additional areas of concern appear. Now, the concepts of fee simple and leased fee estates come into play. Contrary to the district’s position, its approach assumes that a knowledgeable investor uses a leased fee capitalization rate when buying a property on a fee simple basis. The market place reveals that a knowledgeable buyer is counting on income appreciation when purchasing a leased fee estate. The model noted above relies on the assumption that an aggregate lease rate (which averages three to five years lease term depending on property type), as well as the district’s stabilized occupancy rates, apply to the property. In other words, it is assumed that the property will maintain these lease rates and occupancy levels throughout the year for purposes of taxation. This, in the opinion of some, creates a dilemma. These problems are explained by Jeff Tarpley, MAI, with the Dallas appraisal firm of Butler-Burgher, Inc., in the following excerpt from a recent fee simple appraisal:
…This method involves capitalizing the stabilized net operating income (NOI) by an appropriate capitalization rate (Ro) in order to estimate the stabilized value of the project. Ideally, the Overall Capitalization Rate (Ro) utilized in Direct Capitalization is typically derived from comparable sales. Income producing properties subject to existing lease(s) are normally purchased on the basis of actual rents at the date of sale (leased fee estate). However, the subject is being appraised on a fee simple basis (subject to market rent at the date of valuation). The overall rates derived from existing rents at the date of sale (leased fee) are much lower than those derived utilizing market rent (fee simple). Mathematically, this is attributable to market rent being higher than existing rents; consequently, the resulting overall rate should be higher. With regard to appraisal methodology, this is a reflection of the risk inherent in attempting to achieve market rents when there are higher than actual rents at the date of sale. For example, tenants may resist paying the higher rates and vacate the property. In addition, the landlord may have to offer tenant finish out and other concessions above those offered in the past in order to lease the building at higher market rental rates.

Texas Safe High Return Investments

Austin Safe High Return Investments

All investments depend on making returns, which in turn are affected by macro cycles such as the Great Depression or the dot-com boom. When a market is receding, it makes more sense for long-term, stability-seeking investors to look elsewhere upon first glance. However, in the case of the housing market of many parts of the US, the likelihood of long-term housing depression are still relatively slim. Furthermore, other factors will continue to influence the stability of housing pricing in the short term.
Likely investors in most areas will be able to get great values for some time, but housing prices have statistically increased on a per-capita level for the vast majority of the past century. Even with the 30% decrease in home prices during the years of 1930-33, economic stimulus eventually prevailed. The Depression was also the primary topic of a young Ben Bernanke who, before his current position as head of the Federal Reserve, wrote a 350-page report on how the US’ largest recession was due to the blunders of the then newly-created institution. Bernanke has also taken more unprecedented steps to help preserve large investment banks than homeownership, citing a housing bubble which needs a necessary (though unfortunate) correction.
As foreclosure rates continue to increase, many properties are being revalued at less than the price they were purchased at. However, this is only half the story. America’s losses are oft distributed unequally. And while the Midwest generally experiencing the worst effects of past recessions, this time may be a little different. Across middle America, home prices have depressed for seven straight months, but several previously hot markets have deteriorated below pre-bubble prices. Southern California and Arizona are two examples that stand out, particularly in terms of how rapidly falling home values have affected previously booming areas.
Now consumers are hit with two difficulties which make housing slumps particularly viscous: rising mortgage payments and loss of home equity, which has restricted lines of credit for homeowners. Furthermore, the advantages of America’s size are diminished in a housing slump because homeowners are unable to migrate to other areas. Historically, there have been many such exoduses from economically depressed areas in search of higher wages, but homeowners are increasingly unable to do so unless they sell their homes at a loss.
This stagnation also means that markets with rising values will continue to attract investment, while government intervention may be necessary to lift more blighted areas. The Northwest continues to experience positive property values, despite the prospects oflooming layoffs from troubled financial firms. Texas continues to experience exceptional developmental growth, and relatively stable house prices in his area likely contributed to the Dallas Fed’s dissenting vote against the recent record Federal Funds Rate cut. In central Texas, development has continued relatively unabated, in contrast with other areas where property values have dropped more considerably. This reasoning indicates that these markets are likely to accelerate growth as the larger economy recovers from the sub-prime crisis, and will probably be more valuable in the mid-term by comparison to more depressed areas.
Either way, the US recession is not likely to remain too deep, thanks to the generous monetary policy of the Fed. Should current inflationary pressures continue their current trends, home prices will necessarily rebound, although not quickly enough to facilitate speculative short sells. Therefore, for those looking for the long haul, deals are out there.

Texas Safe High Return Investments

Austin Safe High Return Investments

“The sad reality is that there are always people out there that are looking for people they can take advantage of. In most cases, scammers will take advantage of those that are already down because those that are already on hard times tend to be more desperate. Since desperation often leads to gullibility, scammers are more than happy to prey upon them in order to make a quick buck.

Whether you are in a desperate situation or not, you are always at risk of being taken advantage of by a scammer if you do not remain continually alert. Therefore, it is best to follow these simply tips to avoid being scammed when investing in real estate.

1. Never send money to an “interested buyer.” One of the most common real estate scams is selling to a person in another country. With this scam, the scammer claims to live in another country and says he would like to buy your real estate. There is only one problem: he needs you to send some money his way to pay for travel expenses or some other expense that is standing in his way. Once you send the money to the scammer, he seemingly drops off of the face of the earth.

Remember, you should only be receiving money when you sell your real estate.

2. Never turn over mortgage documents to an “interested buyer.” Identity thieves will sometimes pose as an interested buyer and will then request to see mortgage documents. Since these documents often contain personal information such as your social security number, you are essentially handing over your identity when you hand over the papers.

Remember, you should never hand over your personal real estate documents to anyone other than a lawyer.

3. Never continue negotiations with someone that has never seen your real estate. Some scam artists will claim to be interested in purchasing your real estate without ever having seen it. This is simply a ploy to win over your trust so you can be taken advantage of later.

Remember, no honest person is going to invest a large amount of money into real estate without having seen it first.

4. Never complete a deal without the help of professionals. Even if you are dealing with a person on a face-to-face basis, you can still be taken advantage of if you are not careful. Therefore, be sure to enlist in the help of a number of different professionals when investing in real estate. Before you sign any contracts, run them past an experience real estate attorney. Enrolling in a real estate club will also put you in contact with a number of legitimate professionals that can help steer you in the right direction.

Remember, if it sounds too good to be true, it probably is. Use the help of professionals in the real estate field to make sure you are not being taken advantage of.

5. Never put your trust in a handshake. Unfortunately, a person’s word and handshake is not enough to keep you out of trouble in the world of real estate investment. Make sure to get everything that you agree upon in writing and don’t assume the other person will make good on anything that was agreed upon verbally.

There are plenty of ethical people working within the real estate investment field that will buy and sell real estate honestly and professionally. At the same time, there are some people that are just waiting to take advantage of another person’s misfortune. Be cautions and follow these few simple tips and you will not find yourself falling victim to a scam.”

Texas Safe High Return Investments

Austin Safe High Return Investments

Sienna Plantation of Missouri City, Texas, is a residential community that ranks way up there as one of the top places to live in America. This is because Missouri City has made it to the Money Magazine 2007 list of the 100 best cities to live in, in the state of Texas. Texas itself has 6 towns which were listed in the same year among the 100 best towns to live in, in the United States.
Being a respected financial magazine, Money Magazine is known for giving sound financial advice to businessmen and entrepreneurs (not to mention the general public) so making it to this exclusive list of the top places to live in America is quite an honor in itself.
Missouri City is in good company – Highland Park, and Southlake, which are both located in Texas, are named #11 and #25 respectively on the list of the best towns to live in the country (based on highest median household income.) Everyone will probably agree that household income is a good determinant of the quality of life that a Texas resident and his family can enjoy since obviously you cannot meet the needs of each family member without adequate income. Money Magazine said the median household income for Highland Park is $174,538 while for Southlake it stands at $152,991, which definitely makes these two Texas towns some of the top places to live in America.
Highland Park was also named by the magazine in another list – the list of the top 25 towns which have the highest median home price. Being #15 on that list, the median home price for a Highland Park home is $1,603,608. We know that your property appreciates in value when the other homes in the same neighborhood and in surrounding communities have approximately the same value, so you can expect that a home near Highland Park will probably command around the same median home price as well.
This is good news for families with homes in Texas who would like to see their investment appreciate over time, so that leasing it out or even selling it in the future will help them command a good market price for it. After all, one bad egg can contaminate the whole dozen, or in this case at least one of the top places to live in America.
Another town in Texas which ranks up there as one of the top places to live in America is College Station. This Texas town made it to #25 on the list of the 25 places in America with the greatest population of singles. College Station has a singles population of 54.6% out of the whole population – and you know that where singles tend to accumulate, you can expect to find high spending patterns not just on the basics of food, clothing and shelter, but also on other needs such as entertainment and the nightlife. This is good news for entrepreneurs who are scouting for the top places to live in America so that they can relocate their businesses there.
Real estate developers will also find the tendency of singles to live near one another to be an advantage when selling their real estate projects and developments because, for one, word of great deals on property can spread through referrals and word of mouth. Singles are generally just starting out on their careers but probably will settle down as soon as they find a suitable mate, so looking for great properties is probably one of their life priorities at that time in their life.
It is not such a far off possibility that the rank-and-file employee in 2007 may turn out to be the chief executive officer of the same company 10 years later. And of course, as a single goes up the corporate ladder, and settles down to raise a family, his needs will change. So a wise real estate agent and astute real estate developer would want to market his offerings to the singles market as early as possible. The critical mass of singles in College Station shows great promise for future sales of properties.

Texas Safe High Return Investments

Austin Safe High Return Investments

Richland Chambers Lake is a Y Shaped lake located within the City of Corsicana, just one hour south of the Dallas-Fort Worth Metroplex on I-45, this lake is considered one of Texas’ “Best Kept Secrets.” Built in the late 1980s, the lake is controlled by the Tarrant Regional Water District, and is fed by two creeks, both Richland and Chambers. The area around Richland Chambers Lake is booming, but still under-developed. It’s the best time ever to take advantage of this secluded Texas Lake.
. 41,356 Acres
. 330 Miles of Shoreline
. Serves as water supply for Tarrant County
. 3rd Largest Lake in Texas
. Youngest lake in Texas
. Located in Navarro County & Freestone County
Public Facilities
. Richland Chambers Public Access Facilities – TX Parks & Wildlife
. Midway Landing (Public Boat Ramp)
. Oak Cove Marina – Family owned and operated marina offering motel, RV Park and Campground.
Lake Area Restaurants
. Lighthouse Cafe & Marina
. St Elmo Corner Store
Real Estate
Unlike many Texas Lake Properties, it is possible to purchase land that reaches to the shoreline at Richland Chambers Lake. It is possible to find a beautiful home with a lake view in a country setting, as well as custom homes in new subdivisions. There are roughly 50 areas for building a home around the lake. Most of the Texas Lake Home communities have deed restrictions, home owners associations, and architectural control commitees. Very few areas allow mobile homes. You can find lots on which to build your retirement home, vacation home, or any dream home. Richland Chambers Lake Homes are typically priced from $100,000 to $800,000. At this stage, you can still find breath-taking water-front lots with lake shore vistas for under $100,000!
Richland Chambers Lake Recreational Activities
Sailing on Richland Chambers Lake
Richland Chambers Lake has deep waters that are great for sailing. Sailers enjoy the large East to West expanse on the Richland arm.
Boating on Richland Chambers Lake
Boat ramps are available for public use. Richland Chambers offers Marinas, Boat Rentals, Houseboats, Ski Boats, Pontoon Boats, Slip Rentals, Docks and Boat Ramps.
. Boater Safety – Tarrant Regional Water District
Water Sports on Richland Chambers Lake
This Texas Lake is great for water skiing, wakeboarding, tubing, jetskiing, and kneeboarding on a summer day because it’s large and not over-crowded.
Fishing
Richland Chambers Lake is an angler’s paradise with largemouth, white, and hybrid striped bass, blue & channel catfish, crappie, small mouth buffalo, and carp. Bass fishing tournaments are held regularly.”Richland-Chambers has one of the best blue catfish populations in the entire state of Texas” (Richard Ott, biologist – Texas Parks and Wildlife).
. Fishing Richland Chambers Lake – Texas Parks & Wildlife
. Fishing License Information – TX Parks & Wildlife
. Fishing Report for Richland Chambers Lake – July 2007
. Stocking History – July 2007
. Fishing Regulations – TX Parks & Wildlife
. Schmidt’s Big Bass Guide Service – Full day and half day bass fishing guides offering lunch and refreshments for your bass fishing enjoyment.
. Texas Guide Fishing
. Wooded Acres Bait Shop
. Current Water Data
. Outdoor Articles by Fishing Pro Staff – Richland Chambers Lake
Waterfowl Hunting – Richland Chambers Lake
Richland Chambers Lake has a special area that serves as a forbidden zone dedicated to waterfowl hunting. Since the lake is located near the Trinity River, it is a natural flyway for waterfowl, offering plenty of ducks & geese for hunters.
. Hunting & Fishing Requirements – TX Parks & Wildlife
. Hunting License & Permits – TX Parks & Wildlife
. Upland Bird Ventures – Offers lodge and hunting packages.
Cities Near Richland Chambers Lake
. Athens
. Cayuga
. Corsicana
. Eureka
. Fairfield
. Kerens
. Mildred
. Powell
. Streetman
Lakes Near Richland Chambers Lake
. Cedar Creek Lake
. Joe Pool Lake
. Lake Halbert
. Navarro Mills Lake

Texas Safe High Return Investments

Austin Safe High Return Investments

Quality furniture is a major investment. Before throwing out the old and buying something new; take time to find out if the item can be cleaned and restored with these quick questions. The money saved might pay for a great vacation or that big screen television set the family has had their eye on! Better yet, you just might run across beautiful antiques at bargain prices that can turn into family heirlooms with just a little cleaning and attention. Here is how to evaluate furniture to decide to save it or scrap it.

Contact a full service Austin upholstery cleaning by Upholstery cleaner;  that is able to clean and deodorize leather and fabrics of all types – even deep set odors like tobacco.

Texas Safe High Return Investments

Austin Safe High Return Investments

Austin is a growing and vibrant city offers plenty of investment opportunities for business and employment. The real estate market is very happening and is one of the few states that maintained quit well through the current mortgage crisis. Buyers in Texas can be sure that their home investments will rise in value in the years to come, as this city is looking towards more growth and development.

There are varied types of homes for sale in Austin. These include condominiums, custom homes, and single family homes. Each home type is intended to serve the liking of a particular type of buyer. For example, young people may prefer to buy a loft or a condominium unit, while those with large family would like to take a larger custom or single family home.

The latest constructions are built to cater to the requirements of modern day living and they come with new amenities, fixtures and facilities, to offer more conveniences and comforts for residents. It’s not surprising to find that new homes get booked easily and are sold out as soon as they are built. Many of them are built strategically close to important resident requirements such as transportation, schools, shopping plazas and so on. This makes them all the more attractive for purchase and highly comfortable for the buyer.

Price ranges on homes offered in this city are very attractive and buyers can be sure to get a reasonably priced spacious home. Specific neighborhoods will have a certain type of home so buyers should first decide on the kind of property they want to see and the price range that is suitable for them before going about their search. Doing this will certainly make their search process easier.

Realtors and real estate agent services facilitate home searches. In seeking such services, it’s important to take up reputable ones, so that the entire process of buying a home goes through correctly and without any issues. Similarly, in case of buyers taking up homes through a home mortgage process, they should be certain on their ability to repay the mortgage payment every month as failure to do so will result in a foreclosure.

Texas Safe High Return Investments

Austin Safe High Return Investments

If you are interested in investing in Texas Foreclosures and HUD Homes in Dallas, Fort Worth, Houston, Austin and surrounding suburbs, this page provides you with the insight you need into the four stages of foreclosure. Each stage in the Home Foreclosure process provides a different investment opportunity.
Texas Foreclosure Homes, Bank-owned properties, Government-owned real estate, HUD Homes, REO Foreclosures & REO Houses for Sale, Distressed Property, Homes in Pre-Foreclosure, …
The Four Stages of Foreclosure
Great deals can be found in all four stages of the foreclosure process. Where you begin really depends on where you feel the most comfortable.
. Stage 1 – Before Legal Action Begins
. Stage 2 – After Legal Notices Filed
. Stage 3 – Foreclosure Auction
. Stage 4 – REO
STAGE ONE: BEFORE LEGAL ACTION BEGINS
If you can help someone pay off their mortgage before legal action begins, you can help them avoid having their credit ruined.
STAGE TWO: AFTER LEGAL NOTICES ARE FILED
The grace period after the “Notice of Default” has been filed, where the owner can negotiate with the bank to pay off the remaining debt is called “pre-foreclosure.” If the owner can demonstrate to the bank that he has a qualified and willing buyer, the lender might agree to sell at a lower price than what is currently owed without ruining the borrower’s credit. This is called a “short sale.”
STAGE THREE: AUCTION
Once the lender has foreclosed on a property, the asset goes to public auction. If no one bids on the property at auction, then it usually reverts back to the lender.
STAGE FOUR: REO
When a property becomes an REO, ownership of the property has reverted back to the lender. The buyer negotiates a deal with the lender instead of dealing with a distressed owner.
The important thing is to decide at what phase of the distress cycle you want to participate in. Each phase has its advantages and disadvantages. Your preference is a matter of personal choice and financial wherewithal.
Why Specialized Realty for buying Foreclosures?
. Our firm specializes in Texas foreclosure properties.
. Our agents are foreclosure experts.
. Our foreclosure focus experience helps us to keep you from potential penalties.
. Our foreclosure expertise ensures a smooth process for our buyers.
. Our experience in working with foreclosures helps you avoid any unforeseen penalties.
. We can make you aware of foreclosures before they go on the market.
. SRG buyer’s agents represent the buyer, not the seller.
. We offer a market analysis to assist with negotiations.
. We have connections with lenders and mortgage who know foreclosures best.
. We work with foreclosures on a daily basis, so we know when a “hot deal” comes up.
. We offer foreclosures throughout North Texas.
. We have connections with lender and mortgage providers with hands-on experience working with foreclosures.
Remember that buying foreclosure can be risky due to obvious reasons specially that the window of opportunity is narrow. The foreclosure process is fast paced and no every real estate professional is suited to deal in that environment. Juggling lenders, emotional sellers, and anxious clients can send any deal to the trash bin. So consult a qualified agent.

Texas Safe High Return Investments

Austin Safe High Return Investments

With the real estate market in a slump, many investors are looking into new investment opportunities. Oil and gas investing certainly isn’t a new opportunity, but one that many traditional investors tend to overlook. Investing in oil and gas can be one of the most exciting and lucrative ways to earn a significant return on investment. There are many reasons why smart investors choose to invest their money in oil and gas today:
The Industry is Stronger Than It Has Been in the Last 150 Years:
Today’s U.S. oil and gas market hasn’t been this exciting or profitable since the early 20th century. With the natural gas market booming, the growing global demand for energy, and a shrinking supply, today’s oil and gas market presents exciting opportunity for investors.
Many industry experts predict that by the year 2030, worldwide consumption of oil and gas will exceed 115 million barrels per day – 30 million barrels more than are consumed daily today. At the same time, the large r companies have reduced their budget for domestic oil and gas drilling drastically. Big companies have turned their focus to deep water drilling projects leaving vast amounts of untapped wells for smaller oil and gas companies.
Tax Write Offs and Incentives:
Much of the cost associated with extracting oil is in the development of the land and the prospecting of oil fields. Generally, the more work that is done in development and prospecting, the more likely the chances of striking oil. Government understands that this preliminary process is a necessary part of the oil and gas development process.
Tax laws are written to stimulate private sector oil and gas investing during the development phase. Generally, investors can deduct the expenses associated with drilling a well against ordinary (not passive) income and with most of the deductions occurring in the year of the investment. These tax returns are available whether the well produces or not.
The Growing Need:
The need and demand for domestic oil and gas is rising. The Bush administration has placed priority on increasing domestic oil and gas production by maintaining the current tax breaks for investment in domestic drilling. Currently, 25 percent of the domestically produced oil comes from Texas’ Permian Basin, making Texas oil drilling companies among the most popular focus of oil and gas investors.
Investment Risks:
Like any investment, an investment in oil and gas does not necessarily mean a guaranteed payout. Many factors determine the likelihood of an oil and gas drilling company’s chances of extracting oil. Many successful companies conduct through investigative research on their prospects with highly sophisticated seismograph technology that can detect traps that may contain oil more than 1 mile below the earth’s surface. Although there is always the risk of a dry hole, oil and gas drilling companies that take a more calculated approach tend to have a higher likelihood of striking oil. Before investing in any company, it is essential to research the credentials and technology of the company and gauge your own level of risk-taking comfort.

Texas Safe High Return Investments

Austin Safe High Return Investments

Today is a great day to contact your Austin Mortgage Broker if you are a homeowner considering getting a refi.

Just when we thought the big refinance boom was over, suddenly, the Feds surprise us all by dropping rates again. Right now, mortgage rates are at their lowest levels in years, which means a great opportunity for Austin homeowners to take cash out of their homes and use it to pay off that high-interest, non-tax-deductible, unsecured debt.

This will have several benefits: first of all, unless you have a credit card through a local credit union, you will definitely get a better interest rate. Since their pet Congressmen threw the honest working people of America under the bus for them, credit card companies have been having a grand old time raising customers’ interest rates through the roof – even when they make their payments on time!!! (Read the fine print – MBNA says they can raise your interest rate any time for any reason.)

Second reason is that your interest on an equity loan is usually tax-deductible. There was a time when a person could write off credit card interest, but the Reagan tax reforms back in the 1980’s eliminated that for average working people. Consolidating your high-interest, unsecured debt into a low-interest home equity loan could mean substantial savings come tax time!

The third reason is that it could improve your credit score. Carrying a load of unsecured debt doesn’t do great things for one’s credit rating. Get rid of it now by calling your Austin mortgage broker and starting the process.

The Austin mortgage broker represents not one, but hundreds of companies with different programs. Regardless of your particular credit situation, there’s a solution for you – and because these different programs are competing for your business, chances are much better that you’ll get the deal of a lifetime!

Here’s one more issue to think about if you’re in an “adjustable rate mortgage” – those will only adjust upwards. Meanwhile, as home values keep falling around the country, a lot of people are finding that at the same time their house payments are rising, they’re home aren’t worth as much – so they wind up owing more on it than it can be sold for! Heck of a situation, isn’t it?

If you’re in an ARM, it’s time to get out. Lock in a low fixed rate, get cash out, pay off those nagging credit cards and take control of your finances today…it’s as easy as a phone call or an email to your friendly local austin mortgage broker.

Texas Safe High Return Investments