Texas Coast Real Estate

South Texas is all ears as both Obama and Pena Nieto have said they want the visit to focus on economic issues rather than just security.

Pena Nieto is eager to underscore Mexico's recent run of solid economic growth, fueled in part by its increasing attractiveness as a manufacturing hub.

"The new government wants to change the narrative," said former U.S. ambassador to Mexico Jeffrey Davidow. "It doesn't want the headlines to be about murders and decapitations."

The Mexican president has launched an ambitious reform agenda, aiming to overhaul the tax system and energy sector, among other areas, in a bid to boost economic growth.

"The way the agenda is laid out is to emphasize the economic side of things, to show that the relationship is about more than just security," said Duncan Wood, director of the Mexico Institute at the Woodrow Wilson International Center for Scholars. "The signal that's being sent is that the United States fully supports the reform agenda."

Obama, for his part, would like to highlight Mexico's progress in moving up the economic ladder, in part to emphasize that his own goal of reforming U.S. immigration laws will not promote an exodus of Mexicans into the United States.

The two presidents are also likely to discuss the fate of a much-ballyhooed agreement that would remove obstacles to expanding deepwater drilling for oil in the Gulf of Mexico.

The United States has yet to finalize the deal, know as the Transboundary Hydrocarbons Agreement, which provide guidelines for drilling in an area of the Gulf that straddles the U.S.-Mexico boundary.

The deal is seen as the key to opening a new era of cooperation on oil production between the two countries. Mexico's state-owned oil company Pemex needs technology and investment to boost its stagnant production, and U.S. companies are eager to help.

Sen. John Carona, R-Dallas, chairman of the Senate Business and Commerce Committee, acknowledged it remains uncertain whether they can get the job done before the current legislative session ends.

"I would tell you we're very, very close," Carona said. "And I would suggest that with a little push at the appropriate time from the various leaders we have throughout the Legislature, this bill can in fact become law."

Carona, flanked by other proponents at a capitol press conference, announced there will be a hearing Wednesday on a proposed constitutional amendment that could pave the way for Las Vegas-type destination casinos in three urban counties.

The objective for pro-gambling forces is mustering a two-thirds vote in both chambers of the Legislature to send the issue directly to the voters as a proposed constitutional amendment.

Proponents say rank-and-file Texans should be empowered to decide whether or not to expand gambling. The strategy also pre-empts the state's best-known opponent of expanded gambling - Gov. Rick Perry - because the governor cannot veto amendments that are passed by the Legislature and sent to the voters to decide.

Carona and other proponents said that expanding gambling in Texas would enable the state to wrest back $3 billion in revenue that goes to surrounding states that permit gambling. Thirty-nine states allow some form of casino gambling, amassing revenue of nearly $36 million.

WinStar World Casino in Oklahoma, just across the Red River from Texas, draws millions of dollars from Texas gamblers.

We're hemorrhaging money to Oklahoma, said former State Sen. John Montford , who heads an organization called Let Texans Decide.

We feel like the people of Texas are smart enough, educated enough and certainly savvy about what's going on that they ought to be able to decide this issue for themselves.

Economists generally put the multiplier effect at three jobs. But whatever the exact number, it's a lot of new paychecks.

And that's in large measure because of the discovery of abundant supplies of cheap natural gas. The gas can be used to fire up plants, and its byproducts can be used to make chemicals. All of that is creating jobs.

Dow Chemical and Chevron Phillips Chemical plan to hire more than 1,000 workers to staff the new plants, and building those facilities will take more than 10,000 construction workers and engineers. That's just the start. Again, Chevron Phillips CEO, Peter Cella.

But there are long-term concerns. One is the volatility of natural gas prices, and many environmentalists raise serious questions about the impact of fracking on water resources.

The industry itself worries about staffing, because petro-chemical workers tend to be older.

Many will soon retire. A generation of weak hiring took a huge toll on training programs for engineers and skilled workers, according to Dow's Earl Shipp.

A proposed Senate resolution that would enable at several casino resorts to open could result in one of the biggest economic windfalls the state has ever experienced, according to the Texas Gaming Association.

State Sen. John Carona, R-Dallas, has filed Senate Joint Resolution 64 proposing a constitutional amendment to generate additional revenue for the state budget by creating the Texas Gaming Commission and authorizing and regulating the operation of casino games and slot machines by a limited number of licensed operators and certain Indian tribes.

• Three large destination resorts are proposed for Dallas, Fort Worth and San Antonio
• With three mid-size resorts at Corpus Christi, Galveston and South Padre Island.

Total annual economic impact resulting from the resorts, ancillary developments, tax revenues and job growth would be in the range of $50 billion, said TGA Executive Director Jim Pratt, a semi-retired hotel and casino executive from Dallas who formerly owned the Las Vegas Sands Hotel and Casino and has 50 years' experience in the industry.

About 100,000 new jobs would be created. As an economic impact bill it's the largest proposal in over 60 years in Texas

Development of oil and natural gas in the Eagle Ford Shale added more than $61 billion in total economic impact during 2012, according to a study by the Center for Community and Business Research in The University of Texas at San Antonio Institute for Economic Development.

In addition, the region supported 116,000 full-time jobs for workers in oil and gas, drilling, support operations, pipeline construction, refineries and petrochemicals.

Fiscal impacts to the State of Texas are significant. The Eagle Ford added more than two billion dollars in state and local revenue to government coffers in 2012. The continued robust activity in the Eagle Ford stems in large measure from the play’s ability to produce not only natural gas, but also oil and condensate.

Highlights of the UTSA study concluded that shale development:

• generated $61 billion and 116,000 jobs for the 20-county region in 2012
• will generate $89 billion and 127,000 jobs for the 20-county region in 2022;
• added more than $1 billion in total local government revenue in 2012;
• provided $1.2 billion in estimated State revenue in 2012.

UTSA scholars examined the region’s 14 oil and natural gas-producing counties and the six surrounding counties which serve as staging areas for the oil and gas play. The latter include Bexar and Uvalde Counties as well as Victoria, Jim Wells, Nueces and San Patricio Counties.

Nueces county includes Corpus Christi and Port Aransas.

For more information about the Center, visit www.ccbr.iedtexas.org.

Nationally, the number of vacation home sales last year rose 10 percent over 2011, to 553,000, according to a National Association of Realtors survey released this month. As a share of all purchase transactions, however, vacation-home sales remained flat at 11 percent.

The same survey found that 46 percent of vacation-home buyers paid in cash last year. For those who financed a purchase, the median down payment was 27 percent. Self-employed buyers who have the cash for a down payment may still run into difficulties.

Another potential problem for these buyers is that banks take two-year averages on income. If the sagging economy hurt a buyer's business in 2011, a better showing in 2012 still may not be enough to satisfy the income requirements.

A list of the real-estate crowdfunding firms

1. Fundrise –The company lets people invest in their local communities, earning profits while becoming socially involved.

2. Realty Mogul– Launched last month, this firm already has funded two deals (worth about $200,000) while raising $500,000 in seed money.

3. RealtyShares– This platform went on beta launch in November; it claims 289 investors intending to invest $1.5 million. As little as $500 can buy shares in commercial real estate, apartment buildings, and homes.

4. Fquare– The firm  lets you invest in pre-vetted farmland for as little as $5,000. Farmers sell their land for 3-6% annual interest on 5- to 20-year leasebacks; once the lease expires investors sell the land and share the profits.

5. Collaperty – The first real-estate crowdfunding network is still little more than social. It lists real-estate opportunities and connects investors . It currently has 79 members collaborating on 14 real-estate deals, and is raising $22,487,456 in equity.

6. Prodigy Network–  Prodigy has produced $8 billion in sales since its 2003 launch.

7. Primarq– The NASDAQ of residential real-estate equity has developed a platform where investors help consumers buy homes, and home-owners can monetize the value of their homes. It also offers a secondary market where investors can sell their shares without having to sell the actual properties.

8. Globerex– Still in beta, Globerex is focused exclusively on commercial real-estate deals of $500,000 to $50 million. Users can create and track deals involving their own investors or those in the Globerex community.

9. CrowdMason– Also, in beta testing, CrowdMason is very basic, letting members identify and monitor commercial real-estate deals, in which sponsors will be required to make significant investments of their own equity.

10. iFunding–This firm chooses real-estate projects for you and shares the profits. For a $1,000 minimum, members can buy into any piece of the site’s portfolio of multi-family, hospitality, office, and residential properties.

The original ideals of Howard, Unwin and Parker – that “the advantages of the most energetic and active town life, with all the beauty and delight of the country, may be secured in perfect combination” – have been copied, reinterpreted, compromised and misrepresented over the past century. Inter- and post-war municipal housing estates; 1960s new towns; the proponents of ‘new urbanism’, have all promoted images of how we could and should live in harmony with each other and with the environment, drawing from the legacy of the originators.

Does the Texas coast have anything like this?

It does, an example of the coastal city of the future - and coincidentally one of few new beach home communities that not only survived, but thrived during the recession.

Check it out at www.cinnamonshore.com

A report released this week by the Brookings Institution is the latest to highlight the Lone Star State's strong jobs climate, finding that Texas leads the nation in job creation with Austin, Houston, Dallas, San Antonio, Dallas and McAllen creating more jobs now than before the recession. According to the report,

Austin saw the highest percentage increase in jobs of any city in the nation.

"Texas continues to set a national example for job growth, and I'm proud the Lone Star State is home to six out of the 14 cities that have more jobs now than before the recession,"

Gov. Perry said. "Our low taxes, predictable regulations, fair courts, skilled workforce and low cost of living have made Texas the best state in the nation to live, work, raise a family and run a business."

To view the full report,see The Brookings Report: http://www.brookings.edu/research/interactives/metromonitor#US-recovery-overall-nv 

With a stable income and a set amount of income put aside every month, you have the advantage of not only determining your own budget, but in deciding how much you want to pay for property.

"Because we work with both consumers and banks, we stress five reasons why real estate investment will save you money in the long run," Hettich explained. "Lower taxes, positive cash flow, use leverage, equity growth, and the benefits of inflation.

1. Lower Taxes
There are several tax incentives for real estate investors, with deductions for property that can often be used to offset wage income. These tax breaks for real estate investment often allow property owners to turn a loss into a profit from all the money they save from deductions.

These deductions can include any actual costs involved in financing, managing and operating the property, to include maintenance, repairs, property management fees, travel, advertising, and utilities.

However, other great ways to save money on tax rates include government-instrumented deductions:

•     Depreciation: Property depreciates in value over time, enabling you to deduct some of the home's costs.
•     Interest: All mortgage payment interest is deductible.
•     Insurance: Premiums for any type of insurance are deductible.

2. Positive Cash Flow
When it comes to real estate investment, there are two ways to save money: pre-tax and after-tax positive cash flow. A pre-tax positive cash flow is when income received is greater than expenses, and an after-tax positive cash flow is when your expenses are more than your collected income, but the tax breaks bring you back in the black.

3. Use Leverage
According to Hettich, "Never spend a dime on your real estate investment unless you have to, because the only way to make money is to have money." Leverage is an important aspect of saving money through real estate investment because a real estate investor uses leverage to increase their assets without spending their own money.

4. Equity Growth
The best way to save money, and earn money, is to build up equity for real estate investments. That way, with high equity you are able to save on your mortgage while earning a nice chunk of profit.

5. The Benefits of Inflation
When investing in real estate, a great way to identify potential savings is by researching the inflation rates for the area. "As commodities increase in value, so does the price of your home"

Generally speaking, inflation can help you save money on your real estate investment because as rent increases, your mortgage costs will remain static, which means you will save money on maintenance costs with the increased cash flow from the rent.