Step 1 Create an image and fill the layer with white. Then go to filter>texture>texturizer and pick brick as the texture. Put the scaling at about 160 and relief at 10. Direction should be bottom.
Step 2 Now create a new layer and reset the colors by pressing D. Go to filter>render>clouds, then go to filter>pixelate>mezzotint. Use short strokes for the mezzotint filter. Go into blending options for this layer and set the blending mode to color burn.
Step 3 Flatten the image then go back into filter>texture>texturizer but this time pick left instead of bottom as the direction.
Step 4 Press ctrl-U to colorize the layer. Check the colorize box and get a nice red color. I used the settings 0,60,-65 but your settings may vary.
Step 5 Go back into filter>texture>texturizer and run the same brick filter again after we colorized to get the nice highlights back.
Step 6 Go into filter>texture>texturizer again but this time choose canvas as the texture. Leave the scaling at 160 but change the relief to about 3 and the light direction to bottom.
Step 7 This step is optional depending on how happy you are with the color. I went into layer>new adjustment layer>hue and saturation. I adjusted the lightness (turned it down some) and the saturation (bumped it up a bit).
Step 8 Here's an image I came up with using the above technique. The neon light is a skinny font with a purple color overlay and a purple outer glow. I added the rounded box around the text with the pen tool and used a paintbrush to connect the letters together. The graffiti is just a grunge type font with a gradient overlay and the blending mode set to overlay.
