The American Dream

Owning your own home, especially owning your own NEW HOME

For potential home buyers in the North Dallas Collin County area, owning a piece of the rock is becoming more and more difficult.  Why?  Because supply and demand forces are pushing potential buyers further north where lot prices are more affordable.

Two years ago we could help a young home buyer couple acquire a new 3br/2ba home with about 1800 sq ft for around $200,000.  That same home today is more likely to cost about $250,000.  The monthly cost of purchasing such a home has increased from about $1400/mo to more like $2100/mo (PITI).

Today, in the Collin County market area, only about 2% of all single family lots being developed are intended for home buyers limited to a $200,000 purchase price.

So what is the answer for a young couple now living in a small two bedroom apartment?  In McKinney such a couple must adapt to soaring prices and look to communities like Melissa, Princeton, and Anna to find a possible location for a new $200,000 home.  Such opportunities still exist, but with shrinking new home inventories.  We believe IT IS NOW OR NEVER!

What about a couple that currently owns a 3 br/2ba home in McKinney who have dreamed of moving to a similarly sized new home (say 1800 sq ft).  We just marketed a 12 yr old home similar to this for $190,000.  We can help you sell your home today for a premium price and get you moved in to your new home in a few months’ time.  You need to act soon.  It is the best time ever.



Joe and Glenda Neel

Our Internet Marketing Program

The best way to get top dollar for your property is to have it marketed electronically.  Everything we do in our office is done electronically.  Contracts are signed and drafted electronically, advertisements are processed and delivered in mass quantities in just minutes while other agents who represent your buyer receive information with high quality photography on your property instantly.  Each property we market gets sent out to 5,000+ agents, while our Facebook advertisement reaches about 18,000-24,000 people a day.  Out of those 18,000+ that see your property daily, about 1,500 of them engage with the advertisement while we have 50-100 people submit information on what kind of house they’re looking to purchase weekly through our websites.  Nearly 90% of home buyers start their search online and are more attracted to properties that are professionally marketed over the internet in multiple ways.  The right agent for the job is one who prioritizes online marketing and handles presentations of your property in a professional manner.

One of these methods of online marketing that we use is social media.  Social media is the most prominent form of communication and advertisement in today’s society.  The average individual spends an average of 39 minutes per day on Facebook, making it a primary method of advertisement that we use in our office.  With this media source, we are able to contact tens of thousands of people every day with detailed information about your property and the real estate market.  This information is sent to a specific group of people based on the information that cookies on their computer provide to the database.  Our advertisement is then sent directly into their news feed so that people who are looking up anything related to Real Estate will see your property being marketed in a professional manner.

Another powerful tool that we use to get you top dollar in the shortest amount of time is our network of Real Estate agents.  We currently have thousands of agents in constant contact with us.  Whenever we receive a listing, every single agent that we communicate with receives information on your property and they pass the information along to prospective buyers.  With this method, we’ve managed to get over 10 offers on a brand new listing in just a week, all of which were good offers, with some surpassing the listed price for the property.

Home prices in our area are at the highest ever, and sellers are taking the opportunity to collect large amounts of equity. Prices are rising by 10-12% each year for resale properties and up to 20% for new homes.  Now is the best time to sell or buy property while interest rates are low, and a properly marketed home will receive top dollar in today’s Real Estate market.  Let us be the team to represent you and professionally market your home to tens of thousands of people instantly so you can get top dollar in the shortest amount of time with the least amount of stress. Take a moment to check out our websites listed below as well as our Facebook page at

Main website:

For sellers:

For buyers:

Achieve Financial Independence in 10 Years

This blog is written to encourage younger couples to plan now to invest in real estate to build an estate of well over $1,000,000 within the coming ten years. The plan is based on living in a real estate market which is steadily appreciating at 8% per year. (The Dallas – Ft. Worth area is probably the most likely area to offer this steadily appreciating market).

The fundamental assumptions behind this plan are:

  1. A home buyer with good credit can purchase a house with an FHA loan which requires only a 3.5% down payment.
  2. If you have lived in a given home for two years or more it is likely that you can rent the house for a high enough monthly lease fee adequate to cover all ownership costs.
  3. Buying a newly built home each two years can be done by buying from a motivated builder who will pay your closing costs for you.
  4. Although the current FHA maximum loan amount for the DFW area is above $321,000 our strategy shown in the attached analysis requires a disciplined homeowner/investor to focus their purchases on moderately priced homes having a market value of only $250,000.  The reason is that you as a homeowner/investor are planning to maintain your living costs at a moderate level with you focused always on your ten year goal and total financial independence rather than luxurious living for now.
  5. You will move every two years into another $250,000 home utilizing the availability of a 96.5% loan to value FHA loan available for owner occupants.

What can negatively interfere with the successful execution of your plan?

  1. Losing sight of the goal.  Either husband or wife longing for an elegant—expensive house which may not be rentable for enough to cover the monthly cost of ownership.  There is no opportunity in this proposed program for swimming pools, or other extravagant features.
  2. Falling in love with any particular home. This plan is focused on average homes in average neighborhoods (a two acre home site on a golf course or wooded creek lot does not fit into this plan).
  3. Staying too long in any given home.  At the end of 24 months, you need to move into a newly purchased home and lease out the home you have lived in for two years.
  4. The plan is focused on acquiring new homes where success hungry builders will pay your closing costs and which will avail you of minimum maintenance costs for the entire ten year investment program.
  5. Failing to save enough cash (about $365 to $520 per month)   to fund an $8750 FHA down payment or a $12,500 conventional down payment every two years.
  6. Failing to maintain an excellent credit rating for the ten years of the plan.
  7. Generally it is difficult to be approved for two or more FHA loans at the same time. However, in our rapidly appreciating real estate market, it is feasible that after two years of ownership any one of your homes owned may have an equity of 25% or more. If so, an additional FHA mortgage for your new home acquisition may be approved. If necessary you may need to refinance one or more of your rented homes with a conventional mortgage, thus freeing up the availability of a new FHA mortgage for a newly acquired home.


The ability to create a fortune over a ten year period using leverage and taking advantage of our rapidly appreciating Real Estate market is shown in the charts below:

1st Home: Assuming you have already owned your present home for 2 years…

End of Year Market Value Mortgage Equity Total Equity (EoY 10)
0 $250,000 $200,000 $50,000  
1 $270,000 $197,000 $73,000  
2 $291,600 $194,000 $97,600  
3 $314,900 $191,000 $123,900  
4 $340,120 $188,000 $152,120  
5 $367,330 $185,000 $182,330  
6 $396,720 $182,000 $214,720  
7 $428,456 $179,000 $249,456  
8 $462,730 $176,000 $286,730  
9 $499,750 $173,000 $326,750  
10 $539,730 $170,000 $369,330 $369,330


2nd Home: Purchased right away – assuming you have occupied your present home for two years.

End of Year Market Value Mortgage Equity Total Equity (EoY 10)
0 $250,000 $241,250 $8750  
1 $270,000 $237,001 $32,999  
2 $291,600 $232,580 $59,020  
3 $314,900 $227,978 $86,922  
4 $340,120 $223,189 $116,931  
5 $367,330 $218,205 $149,125  
6 $396,720 $213,017 $183,703  
7 $428,456 $207,618 $220,838  
8 $462,730 $201,999 $260,731  
9 $499,750 $196,152 $303,598  
10 $539,730 $190,066 $349,664 $349,664




3rd Home: To be purchased 24 months from the start of your investment program.

End of Year Market Value Mortgage Equity Total Equity (EoY 10)
2 $250,000 $241,250 $8750  
3 $270,000 $237,001 $32,999  
4 $291,600 $232,580 $59,020  
5 $314,900 $227,978 $86,922  
6 $340,120 $223,189 $116,931  
7 $367,330 $218,205 $149,125  
8 $396,720 $213,017 $183,703  
9 $428,456 $207,618 $220,828  
10 $462,730 $201,999 $260,731 $260,731


4th Home: To be purchased 48 months from the start of your investment program.

End of Year Market Value Mortgage Equity Total Equity (EoY 10)
4 $250,000 $241,250 $8750  
5 $270,000 $237,001 $32,999  
6 $291,600 $232,580 $59,020  
7 $314,900 $227,978 $86,922  
8 $340,120 $223,189 $116,931  
9 $367,330 $218,205 $149,125  
10 $396,720 $213,017 $183,703 $183,703


5th Home: To be purchased 72 months from the start of your investment program.

End of Year Market Value Mortgage Equity Total Equity (EoY 10)
6 $250,000 $241,250 $8750  
7 $270,000 $237,001 $32,999  
8 $291,600 $232,580 $59,020  
9 $314,900 $227,978 $86,922  
10 $340,120 $223,189 $116,931 $116,931


Total Equity of all 5 homes at the end of the 10 year investment program: $1,280,359


For most couples, the greatest component of their financial net worth is the equity in their home. In our rapidly appreciating real estate market, their home equity may be increasing at a substantial rate, by doing nothing but living in their primary home and paying the mortgage payment on time.

By using leverage, and by purchasing a second home now and an additional brand new rental property every two years, and thus owning five rental homes over a ten year period. It is possible that a home owner/investor can accumulate a total combined equity in their five homes greater than $1,280,000.

Can you really retire with an estate of $1,280,000? Yes! If you invest that $1,280,000 equity in mutual funds earning 6% per annum, you could earn $76,800 per year and live on that without ever diminishing the size of your nest egg.

Of course the program outlined above has a few possible risks. However, the probable rewards far outreach the risks. The greatest risk of all is doing nothing.

Bottom line, call us right now to begin searching for a new home to begin your plan for financial independence.

How to Save on Your Monthly House Payment

The homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner or spouse. Having an homestead exemption will reduce your property taxes, thus reducing your monthly payment on your home. 

You only need to apply (one time) for a homestead exemption on your home if (1) you owned your home on January 1st or (2) you occupied your home as your principal residence on January 1st; and (3) you or your spouse have not claimed a residence homestead exemption or any other property.

You must apply for a homestead exemption between January 1st, 2015 and April 30th, 2015. 

This is a free service provided by your county and does not require a fee. If you receive a letter offering to do a homestead for you for a fee, please disregard and visit the link below.

To get started, click the link below! 

Making Your Home Equity Work for You

If you were a home owner in the DFW area, 2013 and 2014 have been very good for you.   A happy home owner is often pleased to just set on his assets and rejoice that things are going well.  This blog is addressed to you homeowners who are in the age range of 20 to 60 plus.  Older homeowners may be very hesitant to take any risk at all, and are by definition excluded from the discussion herein.

For reference, let’s assume that you own a home in Collin County.  Used homes are presently appreciating in value at the rate of about 10% per year.  Because of supply and demand, new homes are appreciating at an amazing rate of about 20% per year.  (Many of our buyers have contracted to have a new home builder construct their new home over a five to six month period, and have enjoyed an increase in value of their home appreciate by   $30,000 to $ 40,000 during the time it was being built.

We further assume that you own a home in Collin County that is six years old, and has a current market value of $ 250,000 (net of costs of sale).  We further assume that your mortgage has a net pay off balance of 200,000, and thus you presently have a net realizable equity of $ 50,000.   We assume that your monthly mortgage payment, including principal, interest, tax escrow and insurance escrow is $ 1,850 per month.    The rental market is hot, and your home can be leased for $ 1,850 per month, which covers your costs.

With our hot seller market, your home’s equity may increase each year for the coming four years, as follows.

Year                 Net Market Value           Mortgage Balance           Your Net Equity

Now                       $250,000                         $200,000                          $50,000

EOY 1                     $275,000                         $197,000                          $78,000

EOY 2                     $302,500                         $193,000                          $109,599

EOY 3                      $332,750                         $190,000                          $142,750

EOY 4                      $366,025                         $186,000                          $180,025

Sounds wonderful, and I truly believe that our residential market is that strong.  We have thousands of people moving to Collin County every year to get a new job, and our market will almost certainly continue strong for the next four years.

Because of our fantastic sellers’ market, our seller in the above example will probably see his net equity increase from 50,000 today to as much as $ 180,000 in the coming four years.  With a little courage, this same owner can dramatically improve his financial outlook over the same four year period.  How?

By leasing out his property for enough to pay for his monthly payments and by buying a second home (now) for about $250,000.  His new second property will require an FHA down payment of 3.5% or $ 8,750.  By being selective in the choice of your home builder, this homeowner may be able to have the builder pay all or most of his closing costs.

We are in the market every day and believe that this investor owner will see his second home appreciate by $ 20% during the first year alone.  We will base his wealth building plan on an average appreciation rate of 10% per year for years, 2, 3 and 4.  Look at his appreciating equity over the four year holding period.

Time                 Net Market Value of              Mortgage Balance              Net Equity                                                                    Home No. 2                             Home No. 2                     Home No. 2

Now                          $250,000                                 $241,250                                   $8,750

EOY 1                        $300,000                                 $240,000                                   $60,000

EOY 2                        $330,000                                 $237,000                                   $93.000

EOY 3                        $363,000                                 $234,000                                   $129,000

EOY 4                        $399,000                                 $230,000                                   $169,000

Note carefully, this $ 169,000 can and will belong to our home owner at the end of the fourth year.  The same homeowner will enjoy the equity increase in his first home, he just does not live in the first home.  The key to understanding how the home owner can accumulate an extra $ 169,000 is that with the first home leased with sufficient monthly income to pay the total mortgage cost the owner may just qualify to buy a second home and enjoy fabulous appreciation on both homes.  Obviously, the owner’s financial status, and credit status will play an important role in pulling this investment together.

Did you notice that the two homes together might help our example homeowner accumulate a net worth of about $ 358,000 four years from now.

Here’s the bottom line:

Each of us must live within our own comfort range.  If your situation is similar to the above home owner, and you have a home in Collin County, you have several options relative to the fantastic real estate market in which we live.

  1. You, as an owner, may simply do nothing.  You can enjoy your present home and enjoy a rapidly appreciating market.  You can continue to pay on your home mortgage for another 25 years.
  2. You could follow my suggestion, lease your present home and purchase a second home with a minimum FHA down payment.  This decision can reward you tremendously.  You might keep both homes indefinitely.  You might sell your second home in about four years and use the sales proceeds to pay off the mortgage on your first home, thus owning the first home free and clear.
  3. If you like being a rental property owner, at the end of four years, you might choose to keep both properties and buy a third property.