All Forum Posts by: Tod R.

Hi Marko,

what probably will happen, is the lender will hire an appraiser who will search for similar properties that have sold recently. They will put the most weight on the most recent sales. So, the 2005/2008 numbers may not have a big influence on what they perceive the value to be. What we have done in the past is go find these sales comps ourselves and make the case of what we think the property's value to the lender and/or the appraiser if possible. Good luck and keep us updated.

New investor from the DFW area in Texas. Although I have 25 years of real estate experience, I'v never invested myself. Last year I had an opportunity to buy a custom home on 12 acres on a short sale. Now I'm leasing the home and selling off tracts of of excess land. I'll use these profits to put back into more real estate. I am amazed at the wealth of knowledge without the in-your-face advertising! You guys do a great job here and I look forward to learning and sharing with all of you.

So how did it go?

Is your property in Keller?

In my experience, the tax rate is about 2.5% of appraised value (may or may not be true market value). HOWEVER, a couple of years ago, the state revised what's called the Texas Franchise Tax rules. What was previously a modified income tax on corporation only, was expanded to include all forms of entities, partnerships, LLC's. Now you(any entity other than an individual) basically pay a small percentage of your net income. When they passed this change, tax rates for the school districts went down slightly to help offset this new tax burden. Unfortunately, the appraisal districts figured out fairly quickly that they could raise the appraised value and virtually double up on the tax revenues. All that being said, when I am doing a quick calculation of property taxes, I use 3% (for large cities) as a conservative ballpark guess.

Saw this in the Groups section. Not sure what this is. Any explanation would be much appreciated.

Thanks