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The Gibbs Team

512-431-2403

Real Estate

June 28, 2016 By Mary Lynne Gibbs

Advantages of Real Estate Investing for Savvy Entrepreneurs

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I’ve had numerous conversations with entrepreneurs lately who have come to the conclusion that they need to start diversifying their business profits into more than just a savings account. If this is you – pay close attention.

Being a real estate investor isn’t always glamorous but it is one of the best ways to build wealth over the long-haul, especially for the entrepreneurial-minded. Here are six reasons why you should consider investing in rental properties.

1. Cash flow.
Many people invest in rental properties simply because of the cash flow – the extra money that is left after all the bills have been paid. The cash flow can provide ongoing, monthly income that is mostly passive, allowing you to spend your time building a business, traveling or reinvesting in more real estate.

Cash flow from real estate is stable and far more predictable than most other businesses. That’s great for entrepreneurs enduring the ups and downs of start-up life. The cash flow can help float you though the bad times and live well during the good times.

2. Tax benefits.
Let me ask you a quick question: if you earn $100,000 at your own business and I earn $100,000 through rental properties, who get’s to keep more?

That’s right: I do. Because the government rewards rental property owners.

Not only is the cash flow received from your rentals not subject to self-employment tax, the government offers tax benefits including depreciation and significantly lower tax-rates for long-term profits.

3. The loan pay down.
When you buy a rental property using a mortgage, your tenant is actually the one paying the mortgage payment, thus increasing your net worth each month. Because of the loan pay down a rental property is essentially a savings account that grows automatically, without you depositing money each month.

Today you might owe $200,000 on a rental property, but next year you might only owe $195,000 because the tenant is making the payment for you, making you $5,000 richer. Thirty years down the road, or whatever the term of your loan, it’s paid down to $0. You own a significant asset that you can sell or continue renting, all thanks to your tenant paying the mortgage.

Related: Looking for Stable Business Ideas? Here Are 12 Types of Companies With Healthy Cash Flow.

4. Appreciation.
While the loan is being paid down the value of real estate, generally, goes up. Yes, I know, recessions do happen. Values do go up and down. People buy at the wrong time of the market. I get it.

However…

Over time, values do climb higher and higher. That’s why I’m not in this real estate game just for a year or even a decade. I’m in this for life. I know my properties will continue to climb so that 30 years from now, everything will be worth far more than I’m paying for it today.

5. A hedge against inflation.
Can you imagine paying ten dollars for a gallon of milk? Or five dollars for a candy bar? While those prices seem exorbitant to you, this is the future because of inflation. Inflation is the process by which prices increase due to the value of money decreasing.

While most people fear inflation, as a rental property owner, I look forward to it!

When the price of a gallon of milk hits ten bucks a gallon, guess what else is going to shoot through the roof? Everything, including rents and property values! The one thing that won’t increase, however, is my fixed-rate mortgage payment. As inflation pushes the cost of living higher and higher, my cash flow will only increase. This is why real estate is often called “a hedge against inflation.” When inflation hits – I’m ready!

6. Control.
I don’t like my destiny tied to a board room on Wall Street or a nervous CEO in Silicon Valley.

This is why I choose to invest most of my income in real estate, knowing that I am the one who is responsible for my success or failure.

If I want a better deal, I need to hustle to find it.
If the rental market gets more competitive, I can compensate by increasing my advertising.
If values drop, I can choose to wait it out or improve the property to drive the value back up.
In other words, I get to control the situation, and my financial future, with my own two hands. And that suits me just fine.

Don’t think that just by owning some rentals you are instantly going to begin building wealth. Real estate is powerful – but only if you work it right.

You must learn how to find great deals, how to evaluate a real estate investment, and how to finance any properties you want to buy. Additionally, you must treat it like a business and nurture it as it matures. It’s likely not going to be totally passive up front, but as millions of individuals throughout history have discovered, the payoff is well worth the journey.

Source: Brandon Turner, entreprenuer.com

Filed Under: Blog Tagged With: Austin Real Estate, Keller Williams, Real Estate, real estate investing, The Gibbs Team

November 26, 2014 By Mary Lynne Gibbs

Thanksgiving Food Safety Tips

ID-100119091Thank you, thank you, and thank you!

I would like to let all of my family, friends, business associates and clients know how much I appreciate you and how blessed I feel by the joy you bring to me! I am truly fortunate and grateful for all that you do!

I am so excited that I am staying home this Thanksgiving and entertaining over 20 guests in my home. I look forward to a wonderful time spent enjoying my family and friends.

Since so many of us will be cooking and serving food throughout the day for larger crowds than usual, I thought it might be helpful to gather information on what will help keep everyone happy and healthy this Thanksgiving.

According to the USDA, the below Top 10 food safety guidelines should be followed whenever handling and cooking food.

TOP TEN FOOD SAFETY GUIDELINES:

  1. Wash hands with warm water and soap for 20 seconds before and after handling any food.
  2. Wash food-contact surfaces (cutting boards, dishes, utensils, countertops) with hot, soapy water after preparing each food item.
  3. Consider using one cutting board only for foods that will be cooked (such as raw meat, poultry, and seafood) and another one for those that will not (such as raw fruits and vegetables).
  4. Do not put cooked meat or other food that is ready to eat on an unwashed plate that has held any raw eggs, meat, poultry, seafood, or their juices.
  5. To check a turkey for safety, insert a food thermometer into the innermost part of the thigh and wing and the thickest part of the breast. The turkey is safe when the temperature reaches 165°F. If the turkey is stuffed, the temperature of the stuffing should be 165°F.
  6. Bring sauces, soups, and gravies to a rolling boil when reheating.
  7. Refrigerate leftovers —and any type of food that should be refrigerated, including pie—within two hours.
  8. Thaw frozen food safely in the refrigerator, under cold running water, or in the microwave—never at room temperature.
  9. Cook food thawed in cold water or in the microwave immediately.
  10. Leftovers should be used within three to four days, unless frozen.

May you and your family enjoy your Thanksgiving!

If you or someone you know is interested in buying or selling real estate, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!

**Image courtesy of FreeDigitalPhotos.net

Filed Under: Blog Tagged With: Cooking Safety Tips, Cooking Tips, Food Safety, Food Safety TIps, Real Estate, Thanksgiving, Thanksgiving Food, Thanksgiving Turkey

October 22, 2014 By Mary Lynne Gibbs

Hill Country Galleria Halloween

ID-100277235Spend the day at the Hill Country Galleria on Saturday, October 25th for a spectacular spooky treat!! There’s a little something for everyone – of all ages – with costumes, candy and games!! Perfect for a Halloween celebration!

This family-friendly event runs from 2 p.m. until 9 p.m. with kids’ activities, free face painting, bounce houses, bungee jumping, live music and an absolute must…trick or treating!

Everyone is encouraged to wear their costumes and enjoy the festivities at the Hill Country Galleria and its 100+ participating stores and restaurants!

The schedule of events for this trick or treating extravaganza includes:

2:00p-3:00p – Kids Entertainment and music by The Sassy Spurs at the outdoor amphitheater

3:00p-6:30p – FREE Face Painting, FREE Bounce Houses, Bungee Jump

4:00p-6:00p – Trick-or-Treat at participating locations

7:00p-9:00p – Live Music by The Brewbirds with Warren Hood

The Hill Country Galleria is located on Highway 71, east of Highway 620, in Bee Cave, Texas. For more information on this event and the stores and restaurants that are located in this fabulous shopping center, please go to www.hillcountrygalleria.com.

Additionally, the city of Austin is having a busy weekend with the Texas Book Festival and the Austin Film Festival going on as well! Check out Austin October/November Events for more information on these events!

If you or someone you know is interested in buying or selling real estate in the Austin area, please do not hesitate to contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!

*Image courtesy of “Halloween Tree Represents Trick Or Treat And Environment” by Stuart Miles at FreeDigitalPhotos.net.

Filed Under: Blog Tagged With: Austin, Austin Area Real Estate, Austin Real Estate, Bee Cave, Halloween, Hill Country Galleria, Mary Lynne Gibbs, Real Estate, Sassy Spurs, The Gibbs Team

October 1, 2014 By Mary Lynne Gibbs

Real Estate Agent Safety

beverly carter
Beverly Carter Photo from the Internet

The recent kidnapping and subsequent murder of 49-year-old Beverly Carter, a real estate agent in Arkansas, has settled heavy on my heart. It prompts me to help others figure out how to stay safe in the world today by discussing the importance of real estate agent safety.

Not only does this horrible crime hit way to close to home with me being a real estate broker, but it also reminds me that following safety precautions are crucial in a Realtors® way of life.

Beverly Carter was last seen on last Thursday afternoon before heading out to show an “unknown” client a home that was for sale. She was never heard from again. Even though her husband did know the address of the home she was showing, when he arrived to check on her the front door was open, her car was in the driveway and her purse was in the car. Sadly, her body was later found 27 miles away in a shallow grave.

Breaks my heart.

Obviously, real estate agents meet people on a regular basis that they do not know, but that doesn’t mean caution should be thrown out the window. Realtor.com’s Top 10 Ways to Keep Safe include:

  1. Be careful with personal info
  2. Verify customer information
  3. Enlist a coworker
  4. Announce your showings
  5. Scout locations early
  6. Keep phone in hand
  7. Keep customer in sight
  8. Pay attention to exits
  9. Take a self-defense class
  10. Trust your gut

Real estate agents can also use several Apps for their smart phone that will immediately call 911 and give their GPS location, among other things. To see an article with six Apps that are great for the safety of Realtors® please click here 6 Mobile Safety Apps for Real Estate.

Technology is a beautiful thing. I found another article on the latest gadgets (i.e. jewelry, charms) that can be used to notify authorities if a Realtor® finds himself/herself in a dangerous situation. These devices also track the location of the agent. To read more about these available safety tools please click here Using Technology for Real Estate Agent Safety.

As a client, please understand when a real estate agent requests a copy of your driver’s license or asks you to meet them at the office first instead of the home you are interested in…these are not sale’s tactics or meant to inconvenience you. They are preventive measures that every Realtor® should take when they do not have a personal relationship with the client.

In the past, I have left a voicemail with a friend or fellow agent with the license plate number of client’s vehicle that I am showing homes to just to let someone know who I am with. Another easy way to identify unknown clients would be to take a picture of their driver’s license and forward to your broker, friend, agent, etc.

Additionally, if you are a listing client never allow someone (including real estate agents) into your home that has not made an appointment or was ‘just driving by.’ Identities should always be verified and it is protocol for agents to call first before showing up on your doorstep.

Listing clients should always require the agents who show their homes to use the Lockbox so that the names of agents who have gone through the home can be tracked.

A few precautions can go a long way and they really are not that difficult to do. In fact, they could save your life.

Please join me in keeping the family and friends of Beverly Carter in our thoughts and prayers during such a sad time.

If you or someone you know is interested in buying or selling real estate, please do not hesitate to contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be a pleasure to earn your business.

Filed Under: Blog Tagged With: Austin Area Real Estate, Austin Real Estate, Beverly Carter, Mary Lynne Gibbs, Real Estate, Real Estate Safety, Real Estate Technology

July 16, 2014 By Mary Lynne Gibbs

Austin Challenges & Opportunities

016Recently, we took a look at the 2014 results of a poll conducted on the city of Austin by Paul Zandan and thought you might be interested in what Austinites are thinking about the current condition and future of our city.

The Voices of Austin Community survey was created and designed by Peter Zandan and was conducted between April 15-29, 2014. The poll surveyed 804 Austin-area residents that were 18 and older.

Ultimately, the goal of the survey was to open discussions on the challenges and opportunities that Austin, as a whole, is facing.

The major concerns found were:

  1. Traffic
  2. Population Growth
  3. Rising Cost of Living
  4. Water/Drought

Traffic being the top concern is not surprising. The solutions to this traffic issue that the survey found were that 85% support improving public transportation, 84% support building more roads, and 69% say the City of Austin should increase urban rail routes into congested areas of downtown Austin.

Affordability was another concern that topped this poll. Two-thirds said they were dissatisfied with housing affordability and 59% were unhappy with the cost of living. Overall, the poll showed that Austin is seen as growing faster than it can handle.

However, 87% of those polled said they were satisfied with their jobs and 71% said they were optimistic that if they lost their job, they could find an equal job in Austin within six months.

Moreover, the poll found that Austin is definitely keeping it weird as 89% believe “Austin is weird” and more than half (51%) say it is unique but becoming more similar to other major U.S. cities.

Additionally, the survey found the following to describe Austin:

  • Fastest growing city (93%)
  • Live Music Capital of the World (92%)
  • Best nightlife (90%)
  • Best dining and entertainment (89%)
  • Best city to start a business (84%)
  • Best city to start a career (79%)
  • Healthiest city (78%)

To see the complete survey go to www.zandanpoll.com.

If you or someone you know is interested in buying or selling real estate, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business.

Filed Under: Blog Tagged With: Austin, Austin Area Real Estate, Austin Challenges, Austin Cost of Living, Austin Drought, Austin Opportunities, Austin Population Growth, Austin Real Estate, Austin Traffic, Real Estate, Zandan Poll

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