BILL CHERRY

Perhaps it’s because I grew up and began my real estate business in a city full of 19^th century homes, Galveston, Texas.

Many of them still had old fuse boxes with screw in fuses rather than modern circuit breakers. And running in the walls, the attics and under the houses was a form of wiring known as knob and tube.

I used to look at that stuff and marvel that the building hadn’t burned to the ground at sometime throughout the years, destroying everything inside, maybe even causing the death of the residents.

For whatever the reason, I am really big on keeping a home’s electrical service up to the current code, irrespective of what is and what isn’t grandfathered.

Here are some code changes for new homes.

Although retrofitting is not a requirement for existing buildings, each of us still ought to bring our homes up to code.

Regular circuit breakers are now only allowed for 220 applications like electric furnaces, air conditioners, dryers and stoves.

Areas where small appliances are used near water – kitchen, bathroom, etc., require GFCI breakers at the breaker box.

ADCI breakers are required on electrical runs to bedrooms and living areas. They are built to prevent fires.

GFCI outlets in bathrooms, kitchens and outside outlets are still required. They shut down power within a nanosecond of when they notice a condition that can cause electrocution.

Here are some common code violations:

Common violations include a missing neutral wire on a switch; reversed neutral and positive wires; outlets without the ground wire attached; grounding the service to a water or gas pipe rather than to a grounded electrode; flat weather resistant covers on outdoor outlets rather than “bubble covers” -- the covers that allow them to be shut even with extension cords in place; service panels in closets; unbounded satellite, cable and telephone service; old fashioned outlets rather than the new, tamper-resistant ones – the ones that keep children from sticking something in one and getting shocked.

Why not call a licensed electrician to survey your home, and contract with him to bring it up to code?

BILL CHERRY, REAL ESTATE BROKER

Dallas – Park Cities
Since 1964

214 503-8563

One of the American Dreams that seems to attract many is being able to have a home designed for you by an architect and built especially for you by a well-known home builder.

<<==Fine example of well-planned new home.

Or the other option. To find a home builder who builds a few homes each year in already developed and mostly built out subdivisions, and buy one of his.

The main buyer rational is that your home won't be from a cookie cutter.

Over the years I’ve roamed through many such homes, throughout the stages of their building, and then after they’re completed.

The numbers of mistakes and overlooked errors in design I find are often mind boggling.

Some years ago, I was with a company that was little league track home builder.

Our homes were designed and built for the affluent; for the top 15% or so of the Houston wage earners.

We would have, say, eight different models designed by a well-known architect, then build one of each as our models in our subdivision's model park.

What was interesting was that when we began furnishing the models, we would find one error after another; not always serious, but for sure always stupid.

With furniture in a home, almost everyone who is seriously looking can see mistakes. But when you're buying, it's before your furniture is inside so that you can evaluate the end results.

So we made an executive decision. We would not put any product on the market until we had furnished it, found the errors, then remodeled the home to get rid of them.

From that point forward, our plans became “as built” and not original. And we sold many and with fine results.

The advantage of buying a home from a tract builder or from a builder who has built the same plan many times, is that they have discovered the bugs along the way, so that the chances of them recurring in a recently built home or one under construction is minimal.

I recently saw a home under construction where the builder had taken a stock plan and modified it to fit the lot and while they were at it, to increase the number of bedrooms and baths.

The result was placement of furniture in the master bedroom will block more than 50% of every bedroom window, a staircase to the second floor is entirely too steep and has no landing, and where about 30% of the second floor is walled off and unusable.

Forcing a floor plan to fit inside of a predetermined exterior design is almost always doomed. It is in this case.

Buying a new home has less chance of failure if it is bought from a tract builder who has built and sold that model many times, or from a small builder who can show you that specific plan built out, and is willing to introduce you to the homeowners.

BILL CHERRY, REAL ESTATE BROKER

Dallas - Park Cities
Since 1964

214 503-8563

There is one statement about investments that is indisputable. If an asset does not earn a sufficient, regular cash return to its owner, it’s a speculation.

By definition it's not a true investment.

Investments are vehicles that earn their keep. The hope of capital gain, without sufficient regular cash return, is speculation.

Gold and other precious metals are 100% speculations. They don’t work for the investor. They generate no income.

They are market driven, and profit and loss are determined by what people are willing to pay for them.

Currently, properly investing in for-lease residential real estate is an excellent investment vehicle. It fits the definition of an investment.

And since successfully picking and managing residential real estate is formula driven, a hand calculator, a legal pad and pencil, and a mind that doesn’t let "cute" overcome good business reasoning, can easily drive your success.

One interesting and clever investment avenue is buying large, older and historic homes and converting them into duplexes, tri-plexes, sometimes even four-plexes.

And often an additional unit can be added above the garage.

In years past, I converted a number of homes in Galveston’s East End Historic District into apartments. Since the area is adjacent to the University of Texas Medical School, they were in the perfect market.

These clever units commanded higher rents than those in conventional garden apartments, had very low vacancies, and always led the market in appreciation.

The net rents brought a fine and consistent rate of return.

If you are interested in this investment avenue, perhaps I can help you find and select the perfect Dallas properties. Call me.

BILL CHERRY, REAL ESTATE BROKER

Since 1964

Dallas – Park Cities

214 503-8563

There are those of us who market ourselves by constantly tooting our own horns. With my tail between my legs, I have to admit that I’m inclined to use that method.

Those who do and do it well seem to make great headway. While those who personally don’t have that innate talent often fail.

I don’t know where I fit in that equation, but I expect not very close to the top.

The other marketing strategy is methodically compiling and maintaining a list of those you know and meet, and then keeping in touch with them…letting them be the ones who toot your horn, one person at a time.

Our neighbor and friend, Lou Johnston, has known Carriejean “C.J.” Prince for a long time. C.J. is one of those whose ad and picture you won’t see in D Magazine. You won’t get a postcard from her telling you she’s the Number 1 Agent.

Good thing, too, because that foolishness is tired, worn out and wreaks of untrue hype.

C.J. is one who has found that methodically marketing herself through her list of friends and contacts earns her a fine and dependable living as a real estate salesperson.

One of her marketing pieces is a professionally written and printed magazine called American Lifestyle. Her photo and message are printed on the inside of the front and back covers.

But from that point forward, the reader finds great stories, recipes and home decorating features.

It even shows a barcode on the front cover and a newsstand price of $5.95.

American Lifestyle comes out six times a year, and is mailed by its circulation department to C.J.’s list of “special friends” and contacts.

Lou Johnston is one of C.J.’s special friends, so she’s one who gets the complimentary subscription. When Lou finishes with the magazine, she passes it on to Patty and me.

My guess is that if there were a way to know for sure, C.J. would find that a high percentage of those magazines that she sends out are read, then passed on to others. The result for C.J. is the Double Whammy.

That’s just plain good marketing. You may want to try an idea like this yourself.

BILL CHERRY, REAL ESTATE BROKER

Dallas-Park Cities
Since 1964
214 503-8563

TRINITY EPISCOPAL CHURCH
Galveston, Texas
Founded 1841
The Gothic Church Building Completed in 1857

Recently the enormously wealthy Moody Foundation of Galveston, Texas chose to award a grant of $2.7 million to Trinity Episcopal Church’s parochial school rather than to the church itself.

It came with great thought as to how the church and the school could best be helped to grow. I wrote this piece for the Galveston paper.

******************

What Moody Foundations Grant to Trinity Really Means

A number of years ago, Houston’s St. Thomas Episcopal Church’s membership was diminishing. Many worried that at that rate, the parish could soon cease to exist.

My longtime friend, Robert Bennett, CPA and CLU, was a vestryman at the church. He was asked to come up with a plan that would likely save it from possible extinction, but would also significantly rebuild the membership.

Bennett’s advice? Funnel most of the parish’s resources – financial and mental – toward building the church’s parochial school. His corollary? Churches without schools are difficult to sustain, much less to grow.

Today, St. Thomas’ Episcopal School has all 12 grades. And its huge boys’ drum and bagpipe band, kilts and all, have brought it national acclaim.

Many have applied for enrollment in the school with the hopes they could try out for membership in the drum and bagpipe band.

With the growth of the school has come the growth of the church’s membership. Today, St. Thomas is a true feather in the miter of the bishop of the Episcopal Diocese of Houston.

Galveston’s Trinity Episcopal Church, for various reasons, has been limping along with declining membership for a number of years, even though since 1952 it has had under its wings founder Fr. John Caskey’s academically acclaimed Trinity Episcopal School.

The Rev. John F. Caskey ===>>

Like many of the old downtown Galveston churches experienced, Hurricane Ike did its best to sound Trinity’s death knoll.

All of the churches were left gasping for air, trying to figure out how to rebuild their buildings and save their memberships.

The Moody Foundation trustees’ extraordinary business judgment concluded the same solution for Trinity as Robert Bennett had advised for St. Thomas almost 30 years before.

Rather than devote a grant to Trinity Church, instead the foundation gave $2.7 million to Trinity School to build an activities center and gymnasium.

This huge injection of parochial oxygen guarantees the growth and validation of Trinity School, and that will give reason for the church to be able to rebuild its membership and continue ministering in Galveston to the glory of God.

Blessings to Robert and Ann Moody for whom the facility will be named. And blessings to the trustees of the Moody Foundation for exercising their wisdom. All of Galveston should be thankful.

BILL CHERRY, REAL ESTATE BROKER

Dallas – Park Cities
Since 1964
214 503-8563