Today's guest is Aubrey Jones, Attorney at Law in Athens, TX. I have worked with Aubrey on one real estate case in particular, in which prudent pre-planning might have helped avoid costly legal efforts later; luckily team work, dedication and expertise saved the day and helped our mutual client properly liquidate real property in an estate. Have a listen for valuable information that can help ANYONE assure desired passage of assets to family members.

Recorded at KCKL, 95.9 FM in Malakoff, TX, February 2023.

Are you tired of renting? Feeling like you may never enjoy the benefits and satisfaction of home ownership?Do you really want to buy a home, but have little money for down payment? Have you had life challenges, or are you concerned about less-than-perfect credit scores or income?

Hard times can happen to good people, to ALL of us, and there is ONE REMAINING program that provides home buyers, regular people, a doable way to secure and finance a primary residence with NO MONEY DOWN, low interest rates, minimal fees, and the flexibility to roll all closing costs into a federally guaranteed loan.

The U.S. Department of Agriculture has a Rural Development Guaranteed Housing Program, commonly referred to as a "USDA" or "Section 502" loan, that offers 100% financing with NO DOWN PAYMENT, for qualified borrowers, on properties in approved rural areas.

Luckily, the USDA definition of "rural area" is quite liberal, generally applies to Henderson County and surrounding areas, and is easily verified online with a USDA mapping tool.

There are just a few guidelines to consider, if the USDA is a solid option for you.

1) The property must be in an approved USDA development zone.

2) Although the USDA does not have a minimum credit score requirement, most lenders do. The USDA offers a credit waiver with a "middle" 620 score, which is typically a lender's cutoff.

3) Income eligibility is capped at 115% of the local median income, and local guidelines can be verified on the USDA website.

4) The USDA considers two debt-to-income ratios: The first is a 29% ratio of your monthly housing debt to your gross monthly income; the second is a 41% overall debt-to-income ratio.

5) If approved, there will be both "upfront" and "annual" guarantee fees applied to USDA loans; each have been reduced considerably in recent years. The "upfront" is a one-time fee, 1% of the loan amount. So if you have, for example, a $200,000 home loan, your total loan amount would become $202,000.

The "annual" fee is .35% of the loan amount, divided and applied to each monthly payment, every year. Let's say you borrow $200,000. Your annual fee would add $58.33 to your monthly payment ($200,000 x .35% / 12 payments).

To learn more about how you may take advantage of ownership options and programs designed to assist rural first-time home buyers, contact David Evans at 972-489-2157 or [email protected].

Or Brain Surgeons...Or Plumbers, teachers, mechanics…in ANY field of discipline, all are governed by seeming laws of physics that channel a strict minority to the top of profession.

Search these concepts – “Price’s Law”, and “The Pareto Principle”, that’s spelled (P-A-R-E-T-O)“Price’s Law” states that within group, the of all participants will create 50% of all productive results.

So, in a group with 4 members, 2 will produce half the results. Easy, right? Not so fast! As that group grows, the percentage of competent people within it will grow exponentially, while a smaller percentage of members create that one/half production. 100 members, 10 produce half; 10,000 members, 100 produce half…and so on. Per Capita incompetence shoots through the roof as groups grow, while the competence curve stays low, grows slowly and linearly.

The “Pareto Principle” is also called the 80/20 rule…20% of producers create 80% of the results. One of my best boyhood friends played on every competitive basketball team that I did, and in that time, he scored probably 70% of our total points. In every sales organization I ever joined, a small number of people booked most of the business.

This phenomenon is not merely organizational! Have you ever played Monopoly? Though purely a game of chance, sooner than later all the funny money will migrate into the hands of two players who will battle for the win. Some combination of luck, skill, and chance leave the majority on the sidelines.

Look, I’m not throwing stones or casting aspersions, nor is my goal here to sell you on particular strengths.I’d merely like you to consider some things if you are in the market for a realtor.

Quick Fact: There are 150,000 licensed agents in the Great State of Texas! If “Price’s Law” holds any water, this means 387 agents (one quarter of one percent!) will do HALF of the business in Texas this year.

According to Pareto, 30,000 will do 80%. There’s a LOT of people watching the game from the sideline.

SO again…Not all Realtors are created equal.

I’m sure you’d agree that property decisions and transactions have HUGE FINANCIAL IMPACT for everyone. I encourage you to not take your listing agent decision lightly. There IS a realtor out there that is EXACTLY your speed…

DO YOUR DUE DILIGENCE. Sit down with your prospective realtor and ASK the questions...WHO, WHAT, WHEN, WHERE, WHY, HOW? Who will be my 24/7 contact until we close? What are your life and industry experiences, and how will these help me? When did you start in this business? Where are you from? Why should I choose you to represent me? And most importantly… how will you differentiate yourself, and especially MY property, from ALL others?

You MAY select an agent strictly by billboard count and accolades yet never see or speak to them personally. Conversely, you might choose the first agent you speak to because they answered the phone first and you haven’t the heart to let them down, despite your concerns. Please, get over that!

MOST agents will struggle mightily under the weight of simple WHO, WHAT, WHEN, WHERE, WHY, (and especially HOW) questions…If you just ASK. This should help make your decision easier by default. If they struggle selling themselves, how confidently will they promote your property?

Sure, there’s a lot of business to spread around, but there are sincere market challenges to be dealt with today. Be confident that your chosen representative is up to the task!