Americans have some $20 TRILLION on deposit in exceptionally low interest bearing accounts in the Mega Banks, the smaller Regional Banks and Credit Unions. Unfortunately a large portion of that $20 Trillion is on deposit in the Mega Banks. If Americans were true patriots; if Americans were determined to put their savings account to work rebuilding America; if Americans cared about future generations then they would be closing their accounts in the Mega Banks and moving them to the Regional Banks and Credit Unions. And why, you may ask, should they do that? Because the Regional Banks and Credit Unions care about America and her citizens and because Americans should be angry at the Mega Banks.

Take the examples set by Bank of America and Chase; these two Mega Banks took BILLIONS in TARP funds and bought banks in China and other Asian countries so that they could expand their global presence. That’s money from every single citizen taxpayer that was sent overseas so that these two mega banks could increase their positions overseas. And to reward the Americans who have deposited trillions of dollars into these banks they pay a pittance of a return and virtually turned their backs on American consumers. Go ahead – ask them for a car loan or to refinance your mortgage or to establish a line of credit for your business. The answer will be no and they will blame the economy but in reality it is because they are so drunk on depositors’ money like hogs at a feed trough shoring up their presence overseas.

Regional Banks didn’t take TARP money – they kept lending to their depositors with the deposits from their depositors. Credit Unions didn’t take TARP money – they, too, kept on lending. Americans should snub Mega Banks and move their accounts into Regional Banks and Credit Unions because they want to support America with our deposits. And these banks and credit unions will reward us with higher returns on our deposits and lower interest rates on our loans.

Personally I am earning 8 times more money at a credit union than I was at Chase. I closed my Chase cards too because it sickened me that the interest I was paying on those cards was going overseas. Of course Chase tried their best to keep them open – even offered to DOUBLE the credit limit. But enough is enough and I love America too much to have my money support their overseas expansion and their continued snubbing of America and her citizens.

Patriotic Banking – Good for America!

The Texas Association of Realtors are working on numerous regulatory and legislative solutions to this affront to private-property owners, and have some good news to report. As a result of Texas Realtors championing the rights of property owners in Texas the chief regulator over the SAFE Act in Texas, the commissioner of the Texas Department of Savings and Mortgage Lending, has taken significant steps to allow Texas property owners to continue to seller finance up to five transactions in a 12-month period.

More specifically, the commissioner has delayed the implementation of the SAFE Act requirement for licensure in seller-financed transactions in Texas until August 31. This will allow Realtors more time to implement regulatory and legislative changes during the coming months. For now it is important to know that the long-standing law of allowing a Texas seller to finance up to five transactions in a consecutive 12-month period is still in effect and the Texas Association of REALTORS® will continue to work at the federal and state level to see that this is a permanent solution.

Thank a Texas Realtor for working to correct this abuse to private-property owners in Texas.

If you offer seller financing for 1 to 4 family residential properties then you must be a licensed as a residential mortgage originator. The only exclusion to this is if you are carrying owner financing on the sale of your primary residence or you have sold the property to a family member. This law does not affect investors that offer seller financing for land or for commercial properties.

You can bypass this requirement altogether along with the headache of obtaining your mortgage license and handling servicing of the note by sending your buyers to us for financing. Then as an investor invest your profits into our security and spread your risk over all of the assets owned by the security.

Contact us for more details.

Condo and town home sales increased 63% from April 2009. The pending sales at the end of the month are 70% higher than the previous year. The median price for condos and town homes are about $30,000 less than for single family homes.

Austin is vibrant – buyers are feeling good about their purchases – it is a great time to jump in the market if you are a rehab contractor. It’s an even better time to invest in Austin real estate. The least risky of real estate investing is via first deed trust investing into a managed Regulation D Security. Want to earn 12% or better on your money? Contact Pride of Austin Capital Partners!

March sales of single family homes increased by 27% over March of 2009 and condo sales increased by 129% over the same period. Even more important is that the median sales price in March 2010 was $180,000, which is the same median sales price from March 2009. Price stability is just as important as volume in determing the health of a particular real estate market. Also important to note is that the total days on the market was 16% less on average than that same period in 2009.

A large part of it could easily be the Tax Credit program. Even though condos are attractive to many first time homebuyers there were a large number of condos sold to empty nesters as well as to parents buying a second home as housing for their student attending one of the area universities. With the stable rental market in Austin seeing increased rental rates it makes economic sense for parents to buy a condo as opposed to rented an apartment.

Signs are still pointing to a Seller’s market in 2011 as demographers are predicting a housing shortage in Austin as more jobs are created and more people move to Austin. Pride of Austin Capital Partners stands ready to help alleviate the housing shortage by lending on rehab construction projects turning the homes in the city’s core to quality, energy efficient homes.

Investors take note: With this kind of activity on the horizon and based upon our healthy returns to investors in 2009 and Q1 2010 now is the time to invest in Pride of Austin High Yield Fund 1! Send an inquiry for details.

It is of very little surprise to me that the Austin MSA is number one on this list. The other top markets (including the surrounding municipalities are:
20 – Des Moines, Iowa
19 – Greenville, SC
18 – Houston, TX
17 – Wilmington, NC
16 – Portland, OR
15 – Myrtle Beach, SC
14 – Colorado Springs, CO
13 – Minneapolis, MN
12 – Richmond, VA
11 – Dallas – Fort Worth, TX
10 – Eugene, OR
9 – Durham, NC
8 – Washinton DC – I guess all the hot air in DC is blowing that market up
7 – Huntsville, AL
6 – Denver, CO
5 – Charleston, NC
4 – San Antonio, TX
3 – Charlotte, SC
2 – Raleigh, NC
#1 – AUSTIN, TEXAS!

Boyce reports that Austin managed to avoid the brunt of the national recession. It has one of the lowest unemployment rates in the country, 7.5%. Moreover, nearly all its major housing metrics will be positive in 2010. The region of 1.72 million is forecast to have rising employment, household formations, and incomes. Only two markets on our list, Huntsville and Raleigh, will have higher rates of household formation this year. Austin was the second fastest growing metro area in the nation in 2008, according to Census projections, and business relocations continued rising through the recession, according to the Austin Chamber of Commerce.

If you would like to read the full article please contact us and we will email it to you.

More and more home owners are realizing that adding onto the equity in their existing home makes more financial sense than to sell and buy something new. Updating and adding onto a home can be financially rewarding. It can increase the value of the home; generate more equity in the home; provide tax credits for adding certain features to a home; and, lower utility bills by adding energy efficient features to the home.

I am not advocating a simple lipstick remodel with new paint and flooring. Regardless of what the TV shows tell you that really does not add any real value to a home. Value is added by making the home flow better; increasing it’s energy efficiency; creating a space that is inviting, warm, and confortable; making the home more timeless in its appearance; adding outdoor living that becomes a part of the home; and, having the home reflect the owners personalities so that it feels solid and portrays an element of integrity between home and owner.

Pride of Austin Capital Partners has financing options to help you achieve all of this. And, we have a building division, Pride of Austin Homes, that delivers high quality work for a more than fair price allowing you to build equity in your home.

As an alternative you can build a custom home and still build equity in your home upon completion. Why buy a new tract home in a new subdivision when on the day of closing you may actually have negative equity in your home? Build custom on a cost plus basis so that you will have 20% ore more equity in your home when you move in. We can show you how to achieve this option as well.

Contact us if you would like to explore building equity in your existing home or in a custom home. We can get it done.

The fund is a mortgage pool security filed as a Regulation D filing with the Securities and Exchange Commission with an authorized issue of $100,000,000. The fund is managed by Pride of Austin Capital Partners, LLC (more on this relationship later). The minimum investment in the fund is $25,000 and an investor agrees to place the investment for two years before withdrawal. However, there are mechanisms in place if the investor needs to cash out the investment prior to two years.

Pride of Austin High Yield Fund I (POAF) is owned 100% by the investors in the fund. The percentage of ownership of the fund is based upon the percentage of the investor’s investment into the fund. As such, the risk to an investor is spread over all of the assets owned by the fund as opposed to one asset. POAF is more dissimilar than similar to a Real Estate Investment Trust (REIT) and a Limited Liability Partnership (LLP) but it is a hybrid of both and has so many more benefits and features than either of the other two investment vehicles.

A REIT purchases real estate and manages the real estate. The investors in the REIT participate in the profits of the buying and selling of real estate with the managing entity. REIT managers generally make between 20% and 50% of the profits made on the movement of real estate. REIT managers often times do not have any of their own capital in their REIT. This diminishes the return to the investors because the management fees are so high. A REIT manager can purchase property for long term holding and can buy property at whatever value they feel is appropriate. Sometimes a REIT manager purchases property for 100% of the value because they feel that by holding it over many years it will appreciate in value. Sometimes that does not happen. Point in case, of late, many of the REIT’s are loosing money because their portfolio of properties has lost value.

Like a REIT, investors in POAF spread their ownership over several properties. Unlike a REIT the management company is limited to earning a fee equal to ONE PERCENT annually of the total investment in the fund. This assures that the investors in the fund are making the highest return on their investment.

The management company cannot buy a property or lend on a property for more than 65% of the value of the property. That is one of the limitations of the filing with the SEC. This benefits the investors in the fund by minimizing risk due to the higher than normal equity buffer in the property.

Unlike a REIT, POAF usually moves the asset out of the fund within a year. POAF is not designed to accumulate property and hold it in hopes that the property appreciates.

Unlike a REIT, POAF usually lends money and holds a first lien on the property as opposed to managing the property itself. Management comes into play only if POAF has to foreclose on the lien and take possession of the property to resell it. In this case the investors will make the profits on the sale of the property.

Generally a Limited Liability Partnership is established to raise capital to purchase or lend against a single property. Investors in this type of investment vehicle have a great deal of risk exposure because the asset is singular and the investment return is hinged upon that singular property. If the market is great then the asset will pay off. If the market tanks then the asset may or may not perform as well. An LLP is managed by a General Partner (GP). Some partnerships are structured where the GP has its own capital into the partnership and some are structured where the GP is only using capital from the LLP’s. Generally a GP makes a hefty percentage of the profits in these types of partnerships.

POAF lends money on a low loan-to-value ration with terms of one year or less and interest rates of 12% or more plus lender points. Because of the high interest rates, the additional lender points and the short terms of the loans the fund makes a high yield for the investors in the fund. Pride of Austin Capital Partners, LLC (POACP) manages the assets of the fund and is an investor in the fund. The management agreement between POAF and POACP allows for the fund to pay a management fee of ONE PERCENT annually of the balance in the fund and it pays ONE PERCENT of the loan balances to manage the loans for POAF.

POAF only takes in investments into the fund when it has loans ready to be made. POACP manages the flow of money in and out of the fund to make sure that the capital is working for the investors at all times and is not sitting in a bank. This detailed management of the assets of the fund keeps the yield up high for the investors in the fund.

There are five new loans that POACP is considering making for POAF between now and April 30. POAF has a capital opening for $295,000 from investors (minimum investment per investor is $25,000 but there is not a maximum investment). These loans will be added to the mortgage pool and increase the yield to the investors in POAF. Here are the details of the five new loans slatted for funding. In reviewing these one can easily see how we keep the yield high for the investors.

An $80,000 loan against a 2.33 acre tract of land zoned SF6 and valued at $250,000 located in North Austin. The terms are for 1 year, 14% plus 3 points (a 17% return to POAF).

A $60,000 loan against a home located in Lakeway valued at $300,000. The terms are 1 year, 14% plus 3 points.

A $30,000 loan against a home located in the DFW area with a renovated value of $75,000. This is a rehab loan and the borrower is going to sell the property. The term is 6 months, 15% plus 3 points.
An $110,000 loan against a home located in Austin with a renovated value of $250,000. The borrower is a rehab investor. The terms are 6 months, 14% plus 3 points.

A $15,000 purchase of a tax certificate on a property valued at $600,000 in Austin. A tax certificate is primary over a first lien and pays a return of 25% by State statue in one year or less. A holder of a tax certificate can foreclose on a property without the permission of a first lien holder.

The gross yield to POAF on these 5 loans alone is $41,550. Based upon a $295,000 investment that is a 14.1% return to the fund. HOWEVER, 2 of the loans totaling $140,000 are for 6 months. POACP will easily be able to loan this money again for another 6 months adding $23,800 to the yield for a total annual yield of $65,350 or a 22.2% return to the fund. That is a huge ROI with a limited risk factor.

These types of loan scenarios are why the fund is generating high returns to the investors of the funds. With commercial banks virtually shut down the demand for these types of loans will only increase. We always have a pool of loan request to select the better loans that will return high yields with a limited risk to the fund.

In addition to earning high returns on your money POACP pays a nice referral fee to our investors for referring other investors. Please keep that in mind as it can be a nice passive revenue stream for you.

Consider a picture of the map of Texas; that picture, with the Panhandle and the Gulf Coast, and the Red River and the Rio Grande is as much a part of a Texan as anything ever will be. As soon as anyone anywhere in the world looks at it they know what it is. It’s Texas. Pick any kid off the street in Japan and draw him a picture of Texas in the dirt and he’ll know what it is. What happens if I show you a picture of any other state? You might get it maybe after a second or two, but who else would? And even if you do, does it ever stir any feelings in you?

In every man, woman and child on this planet, there is a person who wishes just once he could be a real live Texan and get up on a horse or ride off in a pickup. There is a little bit of Texas in everyone. Did you ever hear anyone in a bar go, “Wow…so you’re from Iowa? Cool, tell me about it?” Do you know why? Because no State invokes an emotional response like Texas.

Texas is the Alamo. Texas is 183 men standing in a church building, facing thousands of Mexican nationals, fighting for freedom, which had the chance to walk out and save themselves, but stayed instead to fight and die for the cause of freedom. And from that stand many more battles were fought by determined Texans to rid themselves of the tyranny of Mexico. We send our kids to schools named William B. Travis and James Bowie and Crockett, and do you know why? Because those men saw a line in the sand and they decided to cross it and be heroes. John Wayne paid to do the movie Alamo himself. That is the Spirit of Texas.

Texas is Sam Houston capturing Santa Anna at San Jacinto.

Texas is huge forests of Piney Woods like the Davy Crockett National Forest.

Texas is breathtaking mountains in the Big Bend.

Texas is the unparalleled beauty of bluebonnet fields in the Texas Hill Country.

Texas is the beautiful, warm beaches of the Gulf Coast of South Texas.

Texas is the shiny skyscrapers in her cities.

Texas is world record bass from places like Lake Fork.

Texas is Mexican food like nowhere else, not even Mexico. Hence TexMex!

Texas is NASA.

Texas is huge herds of cattle and miles of crops.

Texas is home to the most amazing sunsets of gold over an empty field.

Texans have pride like no others.

Texas is hundreds of deer running around neighborhoods and fields, and skies filled with doves.

Texas is a place where towns and cities shut down to watch the local high school football game on Friday nights.

To drive across Texas is to drive 1/4 the way across the United States.

Texas is ocean beaches, deserts, lakes and rivers, mountains and prairies, and modern cities.

If it isn’t in Texas, you probably don’t need it.

Everything’s bigger in Texas! No one does anything bigger or better than it’s done in Texas.

By federal law, Texas is the only state in the U.S. that can fly its flag at the same height as the U.S. flag. Think about that for a second. The Stars and Stripes are flown at 20 feet in Maryland, California, or Maine, and those respective state flags are flown at 17 feet. But not the Lone Star Flag of Texas; it is flown at 20 feet parallel with the Stars and Stripes. Do you know why? Because Texas is the only state that was a Republic before it became a state.

Also, being a Texan is as high as being an American down here. Our capitol building is the only one in the country that is taller than the capitol building in Washington, D.C., and we can divide our state into five states at any time if we wanted to! We included these things as part of the deal when we came on.

Maybe I am bragging a bit today but I am proud of the people of Texas and the contribution that we make to the United States. If you know a Texan please take a moment and wish him or her a Happy Texas Independence Day and watch a smile stretch as wide as Texas across their face.

Have a great day!

Contractors, property owners, homeowners, realtors and childcare providers can visit www.epa.gov/lead/pubs/renovation.htm online to find their respective Renovation, Repair and Painting Rules.

Pride of Austin Capital Partners will require this certificate from all borrowers whose scope of work includes disturbing paint in homes, schools and day care centers built before 1978 when a loan is being underwritten. Realtors and Homeowners may want to check to see if they will be required to provide a copy of the certificate from their contractor when they are selling a property that was renovated after April 22 in which the paint may have been disturbed.