What would you tell your younger self? This is a frequently asked question of Entre Leadership podcasts from Dave Ramsey. It is a super question. I sometimes think if I could go back in time and have coffee with young Brian. What would I tell him? Here are a few topics:
1. Turn to God frequently and for little things. Early in my adulthood, I thought my Maker wanted me to handle as much as I could on my own and rely on Him for the big important stuff. Wow… was I wrong on that one. God is into the details.
2. Embrace asking others for help. Learn to receive it. Slow down and ask for help.
3. Invest in counseling early. You think you are only sporting a carry on. There are a few trunks of crap you ain’t seeing yet.
4. Take more time with your beautiful wife. Shut up, face her, look her in the eyes and listen.
5. Keep a journal daily and don’t give excuses about why you couldn’t do it. You need to find your heart.
6. Be intentional about spending time with a few guys. Maybe take up golf earlier or play in a band, or camp/hike.
7. Spend more time with your children when they are little and do not think that your work is so important. It isn’t.
That is a good start to the coffee conversation… Oh, and one more thing Brian… wait one year before you sell your house in Franklin, TN. The value will nearly double. Oh… and yet just one more thing… buy some Apple stock. The brand will be stronger than Coca-Cola by 2013.
Smart Chattanooga home buyers purchase boundary surveys. Surveys are great tools. They are great representations of “real property”. What is a real property or boundary survey? It is a legal document…here is a definition from LegalMatch.com. I am not a surveyor. So I am not qualified to speak to the merits of different types. I do know that some lenders require a “mortgage” survey or I have heard it called a “windshield” survey. That type of survey does not require corner markers. It’s primary function is to protect the lender and insure that an improvement actually does exist on the land that is being conveyed.
The buyers that I have the most professional respect for always purchase a boundary survey that requires markers. The most savvy have the title insurance exception for surveys removed. A couple of stories to help explain:
Early in my sales career, I sold an older home on Signal Mountain to a developer/builder. The home was for his personal use and not development. It was a turn of the century model and perhaps just over an acre of land. The home had traded about 5 or 6 times. He made a condition of the purchase and inspection a full boundary survey with markers. This was somewhat new to me and I asked him why. He said there are so many easements, variances, closed roadbeds, etc. that he ALAWYS purchased a boundary survey prior to closing. This was not a lender requirement. When the survey was done it showed the driveway of the neighboring property actually ran over the lot line 20 to 30 feet. The driveway was not asphalt or concrete but pea gravel. It turned out the previous owner allowed access across the property so they could save a tree. The agreement was never made in writing. When we went to closing, the survey was presented with language to the affect of “This survey is for the Benefit of Acme Title Underwriter, Acme2 Title Company, Acme 3 Lender and Dave Developer.” This way the title insurance policy will cover you in case of a boundary dispute. **(Important Note: Always ask the closer or closing attorney what are the “Exceptions” on your Title Insurance policy).
Another example of wise survey use was in a new subdivision. A concrete driveway was shown on a boundary survey drawing to encroach 3 feet onto the adjacent lot. The loan could not be made on the property until this was corrected. The correction was made through a boundary line agreement by both owners and the “line” was moved instead of the concrete driveway. The outcome would have been different if the adjacent owner wanted more big money for the 3 feet. The not so “minor” issue in this case was no sale would happen until problem resolved.
TVA or Tennessee Valley Authority has many power lines running through the Chattanooga Valley. The high voltage lines have restrictive easements deep into property lines. You may not be able to get a permit to build a deck or the addition to your home because of these power easements. Surveys should also show buried easements such as gas and sewer lines. It would be a sad day if your man cave garage would have to come down because you find out it sits on a utility easement that needs repair.
Country farm land, city slicker lot. (fences, pools, buildings, utilities, closed road beds, easements) Smart Chattanooga home buyers purchase boundary surveys.
Hixson TN 37343 Homes are selling. 78 Homes sold with a price greater than $200,000 (so far in 2013). The same time period in 2012 had only 54 homes sales that were greater than $200,000. 44% increase is double the area Hamilton County average. The average home in this price range in Hixson sales for $97 a square foot. The average year built is 1994.
The challenge for Hixson is available land for new growth. New construction is always a great indicator of the economic strength of an area. Since January 0f 2012, Hixson home shoppers bought over 2 new homes a month over $200,000. There are 11 newer homes for sale. (late August 2013). There are only 5+ months of inventory of New Homes. Popular new home neighborhoods are as follows:
Amber Brook,
Creeks Bend Village,
Bent Creek,
DreamCatcher,
Eagles Landing.
The only neighborhoods with any new homes for sale are Amber Brook and Dreamcatcher.
Amber Brook is a town home community that features one level homes. The “Walden” floor plan features 3 bedrooms, 2 baths, a front loading 2 car garage with 2,063 square feet for $247,900. James Pratt is the home builder. Amber Brook is located near the intersection of Hixson Pike and Cassandra Smith Road.
Dream Catcher is a more “traditional” single family neighborhood. GT Isaa is building a 2,650 square foot home with 4 bedrooms and 2.5 bathrooms for $289,900. GT Issa’s home is represented by Remax and features a master suite on main level with 2 bedrooms, bonus and bathroom upstairs.
Hixson, TN is located in the city limits of Chattanooga. It is located just North of Chattanooga. Commuters from downtown come into Hixson by Hixson Pike, Dupont Parkway and Access Road, Highway 127 and Highway 153. Retail anchors include Northgate Mall, Wal-Mart at Oak Park Town Center, Target on 153, Highland Plaza on Hixson Pike and Ashland Terrace.
New Home Sales Drive Commercial and Retail Growth
Office space for businesses is being created just off Hamill Road at Oasis Park, and behind Northgate Mall. Established office space is available in Hixson Commons. I am representing a seller in a professional office complex named Hixson Commons. The space for sale was a former Beltone hearing aid center and an Acupuncture clinic. It features 2 large exam rooms or offices, a third office in rear adjacent to a full bath and rear entrance. The space also features a kitchen area, soundproof test room and receptionist area with waiting room and another patient half bath. That space is listed at $149,000. Hixson Commons is located at 4513 Hixson Pike, Hixson, TN 37343. Other tenants in the this brick office complex include medical, law and financial services.
Liberty Commercial Real Estate is representing a one acre parcel of level ground on Access Road. Currently the use is Ramsey’s Produce, a plant, fruit and vegetable market. The ground and building are for sale for $304,000. The former Smokin Ed’s BBQ building located at 3874 Hixson Pike. The building is priced to sell at $168,000.
Hixson property is being sold and re-purposed as the needs of the home owners change. Hixson is between a growing Soddy Daisy in North Hamilton County and downtown Chattanooga. As builders find land and take the risk to build the homes sell. The area has solid retail hubs and is growing up more professional spaces for offices and medical use. Hixson Tennessee homes are selling so commercial will be right behind that growth.
CAP Rate provides a measure of ability for an income property to return an initial investment. CAP Rate is calculated by dividing the NOI (Net Operating Income) by the Value (Or Sales Price). The lower percentage CAP rates like 6% to 8% are usually assigned to lower risk investments with long term lease agreements and have solid real estate measures, such as a Wal-Greens on a corner with a traffic light. Higher CAP rates are generally higher risk investments that require more management such as small apartment buildings not on a major road.
If you are a commercial tenant then you want to enter into a Gross lease. A gross lease has the landlord pay all expenses, utilities, taxes, cleaning, etc. from the rent payments. A triple net lease places much of the burden of expenses including property taxes onto the tenant instead of the landlord. Many small commercial tenants and landlords enter into “modified gross” leases which split some of the costs between them.
Before you enter into any type of lease agreement seek counsel from your Realtor and attorney.
