Austin Investment Webinar - Seewing 4-9-15

AUSTIN INVESTMENT
WEBINAR – CASH FLOW
CITY
By Kenn Renner
Renner Realty,Inc

www.BuyAustin.com
Kenn Renner
 30 Years in Real Estate / Broker - Investor
 Moved to Austin in from California 1993 to be a bigger
fish: “Ikno w Austin”
 One of the Top Brokers in Austin, TX with over
$100,000,000 in sales in the past 6 years
 Over 700 investor properties sold
 National Speaker/Author – Recognized Expert
 HGTV House Hunters Veteran
 Watch part one of this webinar –
 Search in Youtube “Austin Investment Webinar”
| Kenn Renner | 512-423-5626 | Kenn@BuyAustin.com

www.BuyAustin.com
Author / Speaker

www.BuyAustin.com| Kenn Renner | 512-423-5626 | Kenn@BuyAustin.com

www.BuyAustin.com
Real Estate - Come Back Kid
 Warren Buffett says along with equities, single-
family homes are a very attractive investment
right now.
 If held for a long period of time and purchased
at low rates, Buffett says houses are even
better than stocks.
 Buffett says he'd buy up "a couple hundred
thousand" single family homes if it were
practical to do so.

www.BuyAustin.com
Why Real Estate?
 Someone else helps make payments (tenant)
as balance is paid off
 Eventually will be free & clear
 “Find out where people are moving and buy
land (property)” Roy Rogers
 Trends follow historical patterns

www.BuyAustin.com
Why Austin Real Estate?
 Undervalued
 Highly rated place to be
 High quality of life
 Affordable
 People and companies are moving
here
 Rents are high and vacancy is low
 Highest job growth in the Nation

www.BuyAustin.com
Home Of:
 The Capitol of Texas
 The University of Texas - The largest University
in the U.S.
 New Apple Computer facility (3000 Jobs)
 Formula One Race Track
 Live Music Capitol of the World
 South by Southwest music festival
 Austin City Limits

www.BuyAustin.com
Home Of:
 Major employers include:
State of Texas, Federal Government, UT,
Dell, IBM, Samsung, Freescale ,AMD,
GSD&M, State Farm, National Instruments,
Applied Materials, Whole Foods, Ebay
Paypal, Accruent, Visa, GM, Facebook,
Google, Etc.

www.BuyAustin.com
Austin 2015
 Many are forced to rent
 Highest job growth in the Nation
 Major migration to Austin
 Lack of new developed lots
 Builders are raising prices due
 to labor, material and lot shortage
 Current rental housing shortage

www.BuyAustin.com
Real Life Sample Pro-Forma
Example: $150,000 Purchase Price
 Down Payment: $ 30,000
 Closing Costs/PrePaids: $ 3,900
 Cash to Close: $ 33,900
 Loan Amount: $120,000
 Interest 4.25%* $ 590
 Taxes @ 2.4%: $ 300
 Insurance: $ 60
 Total Payment: $ 950
 Management @ 9%: $ 121
 Payment + Mngmt: $ 1,071
 Rent Range: $1,350-$1400
* APR 4.632% 30 year fixed rate for 360 payments. No balloon payment. Kenn Renner is a licensed real estate broker and offers real estate
guidance. Kenn Renner is not an attorney, lender or or an accountant and does not give legal or tax advice. Please seek your
attorney’s, lender’s, financial planner’s and accountants advise when dealing with legal or tax issues

www.BuyAustin.com
Sample Pro-Forma
 Closing Costs/PrePaids: $ 4200
 Interest 4.25%* $ 689
 Taxes @ 2.4%: $ 350
 Insurance: $ 60
 Total Payment: $ 1,099
 Rent Range: $1400-1600

www.BuyAustin.com
Sample Pro-Forma
 Closing Costs/PrePaids: $ 4,500
 Interest 4.25%* $ 787
 Taxes @ 2.4%: $ 400
 Insurance: $ 60
 Total Payment: $ 1,294
 Rent Range: $1,550-1800

www.BuyAustin.com
Your Pro Team
 CPA
 Financial Planner
 Lawyer
 Asset protection
company
 Self-Directed IRA
Custodian
 Real Estate
Broker
 Lender
 Property
Manager
 Leasing Agent

www.BuyAustin.com
Management Company
 Hand picked preferred management
 Pre-leasing, management, daily operations
 Leasing fees 60-80% of 1st months rent
 Management 8-9% of gross rents per month
 Self Manage ? – Not Recommended

www.BuyAustin.com
Our Sponsor – Prime Lending
 Financing up to 10 properties
 Interest rates in the low 4s
 15 % Down – 30,25,20,15,10 Year amortization
 10% Down for FNMA – Home Path
 Cash out refinance up to 75%
 Sherri Eckert
 Cell 512-293-0587, Office 512-716-3517
 Email: seckert@primelending.com

www.BuyAustin.com
Renner Realty’s Role:
 Buyer’s Broker –
 Seeking long term relationships & referrals
 Search for and find property - cherry pick
 Tie-up, negotiate, acquire, guide, close
 Act as eyes & ears
 Attend walk - through
 Leasing and arranging property management
 Disposition – Exit strategy

www.BuyAustin.com
Residential Opportunities in Austin, Texas
TXInve sto r Plan o fActio n
Ste ps to be co m e a Te xas re ale state inve sto r
with assistance fro m The Re nne r Te am :
Decide
 Contact Kenn Renner, Broker - Renner Realty, Inc.
 Discuss plans & strategies
 Make application with lender

www.BuyAustin.com
Residential Opportunities in Austin, Texas
TXInve sto r Plan o fActio n
 Make plans to visit Texas for a tour (optional)
 Renner Realty, Inc. will...
 Locate target properties
 Email photos, or floor plans & specs
 Negotiate the contract between buyer & seller
 Facilitate transaction
 Provide leasing and arrange management services
 Help acquire more or help sell when ready

www.BuyAustin.com
Referrals
The best compliment a professional
can have is a referral from a satisfied
client. I love your referrals.

Austin Investment Webinar - Seewing 4-9-15

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