Patrick Foley

As I recently posted, I have switched career paths this summer, and have transitioned from Austin to Houston (still in the process somewhat). As a result, I'm looking to buy this fall, and take advantage of the tax credit!

So, to all of your lenders and listing agents out there, please feel free to get in touch with me if you have anything I might be interested in. I'll post some guidelines below. All my contact information is listed in my profile.

Areas - Galleria, West U, Rice Military, River Oaks, Uptown, Midtown

Type of Home - Townhouse Preferred, Then Single Family, Then Condo. MF is ok too, duplexes only

Price - Under $200K

Timeframe - Oct/Nov close

BR - 2+

BA - 2+

Reasonable HOA's

Mediterranean style architecture preferred (not necessary though)

15 Year Fixed Note (15% - 20% Down)

Ideally I like something on the newer side, and with a bit of a modern look. I'm definitely a fan of granite countertops, stainless steel applicances, hardwoods/stained concrete floors, and the like. Please let me know if you have something, or have any questions. Thanks!

It' been a while since I've had the opportunity to make a post on AR, as I've been on a 2-month trip around the world.

For those of you who don't personally know me, I've decided to move on from the Austin commercial real estate arena to become a commodities trader in Houston. I start in the middle of July, and have been traveling around the world since I graduated from UT in May. I still have a couple of listings that I will cooperate with other brokers on a bit, and will naturally keep my license active. For anyone with any spectacular listings in the West U/Upper Kirby/Galleria areas in Houston, I'll be looking for a townhouse, condo, or SF house this Fall. Feel free to shoot me the information on it. Realistically, I'm looking for a October/November close.

If anyone is interested, I've been blogging pretty regularly on my TravelPod blog which can be viewed at http://travelpod.com/members/prfoley.

For those of you that haven't heard, the House of Representatives is sticking it to us once again by attempting to pass a tax on all trades in the financial markets. Though they are pitching it as a way for the government to recoup costs from bailing out Wall Street, it is really a tax on most of us. The majority of Americans own stocks, bonds, or other financial instruments through 401(k)'s, IRA's, mutual funds, pension funds, or their self-directed brokerage account.

I've contacted my Senators and Congressman, I encourage you to take a moment and visit this website to do the same. It takes just a few moments (for real)!

Below is a copy of the letter that the site sends to your reps in D.C.

On Friday, February 13, your colleague, U.S. Congressman Peter DeFazio, introduced H.R. 1068: “Let Wall Street Pay for Wall Street's Bailout Act of 2009”, which aims to impose a 0.25% transaction tax on the “sale and purchase of financial instruments such as stock, options, and futures.” Without a doubt, many Americans are appalled at the reckless behavior of large Wall Street companies, and the notion of making those who ar e responsible for putting the global financial system in jeopardy help repay taxpayers for bailing them out is certainly justifiable.

Unfortunately, I feel that this proposal is the wrong way to do that, as this tax applies to all investors, the vast majority of whom have done no wrong. Effectively, this tax will punish anyone who wants to save their money, whether it be by investing in stocks or options directly, putting their hard earned money in any mutual fund, or by simply placing a portion of their paycheck in a 401K. There’s no doubt that banks and mutual funds will pass along this added cost to their customers, giving this proposed tax a much further reach than was initially imagined.

Moreover, the unintended consequences associated with H.R. 1068 are also hard to ignore.

First, many hard-working Americans make their livings by running small businesses that trade stocks, options and other financial instruments. Many of whom will be put out of business due to the fact that their margins are often quite thin. In addition, those who work for or with these individuals will also lose their jobs.

Second, a transfer tax such as this will lower capital gains dollar for dollar, making the notion that anyone who invests their money will be on the hook for the excesses of Wall Street all that more poignant.

Finally, such a tax will undoubtedly affect the number of shares traded on an absolute basis, thus reducing liquidity – a necessary ingredient in the effective pricing of assets. It’s the complete lack of liquidity, for example, which made collateralized mortgage obligations effectively worthless.

The body of the bill suggests that such a tax would have a negligible impact on the average investor. I beg to differ. For example, a $10,000 trade (or approximately 100 shares of stock in Apple, Inc.) would increase the cost of a round trip transaction by $50. 100 shares is generally considered to be a minimum size for a trade, which would devastate any small business executing even a handful of similar trades each day.

As you can see, while this bill may sound good on the surface, the effects, if it is passed, will reach anyone who wants to invest their money and will ruin many small business people who are not at fault for this distressing situation all Americans are struggling through.

I urge you to vote NO on H.R. 1068

As a native Houstonian, I've always hoped and wished for more rail. Every year when I blew out those birthday candles I would wish for better public transit...just kidding. I didn't take it that far, but Houston has been far behind the rest of the country in developing public transit, and I think train service has got to be one of the main points of focus for METRO.

When the downtown light rail line opened, a lot of people laughed. Who would ride this ridiculous 7.5 mile line that doesn't serve anybody? I must admit, the only time that I've used the rail is when I've gone to the rodeo, and it's probably more for fun than actual convenience. Turns out (at least last i heard), Houston has the highest light rail ridership in the entire nation, ahead of Philadelphia (#2).

Today we hear that METRO has approved four new lines, and I think it's great news. The total rail lines will only total 30 miles, and the cost is in the billions, but I think it's a worthwhile investment. Ridership will increase, and 60,000 jobs are being created (so says the propogranda from METRO at least). I hope that this will provide an impetus for rail lines that will run along the major highway corridors (I-10 east and west to downtown, 290 up to AT LEAST Cypress, if not Waller County, I-45 from the Woodlands to Galveston and maybe even up to Conroe, and of course a 59 line down to Sugar Land and up somewhere NE). That's my vision, and I think it would be great for Houston!

I'm excited, and I'm living in Austin. Let me know your thoughts!

Although I am looking at this from a commercial standpoint, I have to imagine that this certainly applies to residential real estate as well, where many markets have come off even more than the commercial markets.

Over the past several weeks I have talked to a lot of clients and potential clients about their needs. Most of these people are looking to lease, but I always ask them if they might consider a purchase, especially if it might be possible to get a multi-tenant building/property.

Case in point is a client looking for some land or industrial space to operate a specialized auotmotive sales business. He needs a particular zoning, a small office, and some yard area. He also needs signage, and prefers to be along a major thoroughfare. He has a budget in mind, and there are definitely properties that fit the bill. So I pitched him a property that is currently leased up, but there is an opportunity to use some additional space on the property for his business.

With 20% down, at current rates, he would actually produce positive cash flow and have a space for his business. If you have the cash to put down on the property, this is like hitting the jackpot!

Let's face it, rates are at historic lows, and property values have declined. Granted, property values will likely to continue to decline (especially commercial values and especially in Austin, as both of these markets haven't faced a major decline to this point, so some devaluation seems inevitible). Even if they do, if you can build equity in a property, generate cash flow, and avoid paying rent for your own business, why wouldn't you explore this option?

For real estate agents, if you have thought about this for a particular client, give it a look and see if it might make sense for them.

For potential lessors, consider whether or not a purchase makes sense for you right now. It may not only save you money in the near term, but allow you to invest in a market that will likely appreciate in the years to come. Not to mention the tax benefits of owning property.

Finally, you're helping out the economy, do your PATRIOTIC duty!

Just my two cents from my (limited) view down here in the trenches.

I will also be posting this on my company blog which can be reached through our website at www.bulshodge.com.