Real Estate in IRAs
Little-Known Secret Allows Real Estate Investors to Create True Wealth
Historically, real estate has given many Americans with a stable investment vehicle that provides both income and appreciation. One of the greatest tools available to real estate investors is government-sponsored retirement plans, such as IRAs and 401(k)s.
Most investors believe that their only IRA investment options are bank CDs, the stock market, and mutual funds.
Few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate—and that they can benefit from the tax advantages those plans provide. IRA investments earn tax-deferred/tax-free profits.
Imagine not having to pay taxes right away—or ever—on your real estate deals. Instead of paying 25%, or 30%, or even 50% of your profits to the government in taxes, you keep it.
Additional advantages of the real estate IRAs include:
The power of compound interest
A reduction of taxable income
Asset protection
Estate planning
If you're a successful real estate investor, or if you're just looking to diversify your retirement portfolio, the combination of real estate and your IRA can be very powerful.
Showing posts with label first time investor. Show all posts
Showing posts with label first time investor. Show all posts
Monday, December 5, 2011
Friday, August 12, 2011
CASH DOWN PAYMENT ASSISTANCE
Most home buyers’ biggest hurdle is coming up with the cash for a sensible down payment. Gone are the days of zero-down loans, so if that was your plan, you’re going to need a new one! Coming up with a down payment for a home is a challenge because it’s not chump change we're talking about, here. The down payment on a $200,000 house, for example, will run you anywhere from $7,000 (on an FHA loan) to $40,000!
That might seem like an insurmountable amount of coin to come up with, but it’s actually more doable than you might think. Some buyers will simply save up their own cash, even if it takes many, many moons. The good news is that if you still need some help to boost your down-payment savings, there are resources you can harness to power your home-buying pursuit:
1.The FHA Bridal Registry. Yes - you read that right! The FHA Bridal Registry Program enables wanna-be home buyers to apply their families’ wedding gifts toward their down payments. And although it’s named a “bridal registry” program, you don’t have to be a prenuptial couple to use it. You could also use this program to collect gifts for graduation, the arrival of a baby or some other major life event in which people want to give you gifts. The FHA Bridal Registry works like a traditional registry, but is more flexible. The registrants visit their choice of FHA mortgage lenders and set up what essentially is a custodial savings account for the sole purpose of funding their down payment. The couple’s (or individual’s) family and friends can either deposit funds directly into the account or give the cash or check to the couple or individual, who then deposits it into the account. The account’s flexibility also goes beyond that of traditional down payment gift rules that are applicable to FHA loans, which are detailed below in insider secret #2. With the FHA Bridal Registry Program, the only gift documentation required is “lender and borrower certification of the funds.”
2.Family gifts. Most lenders will allow home buyers to apply gift money from family members toward their down payment - within guidelines, that is. First, the lender will require a letter from the giver verifying that it in fact is a gift and not a loan. (They generally frown upon it being a loan because it would add to the buyer’s debt and change their debt-to-income ratio.) And second, the person giving you the money must be a relative. The reasoning here is that a friend will most likely expect you to repay the money, whereas a relative won’t. FHA loans will allow the gift to make up any portion or all of the buyer’s down payment, many conventional (non-FHA) loan programs will restrict the proportion of a buyer’s down payment that can come from gift money. The lender may also have specific ways they want to see the money go into and out of your accounts. Before you accept a gift toward your down payment, be sure to check with your mortgage broker or loan rep to be sure that you’re dotting all the right i's and crossing all the right t's.
3.Your Employer. Some companies offer assistance programs to employees. Most are government, university, large company and financial industry employers. One example is safety workers: n some areas, safety workers like firefighters and police can have access to down payment grants from their employers if they buy properties in the city where they are on-call as first responders. Also, many large colleges and universities, very large companies and banks and lending institutions offer down payment help and have below-market-rate mortgages set up for faculty members and staffers. Check with your Human Resources department to see if any such program is available to you.
4.City/County/State Programs. Some states, counties and cities still offer programs that lend or give home buyers some assistance for down payments. These programs vary widely in scope - for instance, many target buyers with low and moderate incomes, while some seek to help the buyers of foreclosed or fixer-upper type homes. Some don’t have to repaid - meaning they are given as grants and are forgiven entirely if the buyer lives in the property for 30 years, but must be repaid if the buyer sells or rents the home out before the 30 years elapses. The programs pretty much all have some sort of homeowner education component that requires applicants to take personal finance and homeownership preparedness classes before they can receive funds. To learn more, visit your city, county and state websites to learn about programs that might be able to help you.
5.Your Retirement Funds. Many financial advisors would advise against this, but if you have a 401K or Roth IRA account and some years to go before retirement, you might be able to tap into it or even borrow against your own funds for your down payment. Currently, you can take up to $10,000 out of your Traditional IRA with no penalty to put toward the purchase of your first home, but you will be taxed. You can take as much as you want out of your Roth IRA contributions with no penalty or taxes, though, and as much as $10,000 from your earnings penalty-free for your down payment. The rules get a little tricky, here, so definitely check in with your tax and financial advisors. And while you can’t similarly draw from your 401K, many retirement and pension plans will allow you to borrow the money against your funds, then repay it to yourself – at interest. So the choice there comes down to paying your lender back with interest or paying yourself with interest. That choice should be you! But first, get some advice from your CPA or financial planner. This option might not make financial sense for your particular situation.
http://www.trulia.com/blog/taranelson/2011/08/5_insider_secrets_for_coming_up_with_cash_for_down_payment?ecampaign=cnews201108B&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F08%2F5_insider_secrets_for_coming_up_with_cash_for_down_payment
Sunday, July 17, 2011
Timing verses Location
One of the things that I have found over the years in working with clients that own real estate is that people love buying real estate. With that said some make critical mistakes when doing so. The starting point in deciding what to buy and how to buy it should begin with the answer to this question: Why Should I buy and what is it for?
This question that you ask yourself may sound ridiculous, however an important one for your financial future. Timing is so important. What was the famous line in real estate? Location, location, location. Look back at the years 2003 to 2008 at the feeding frenzy. If someone bought in those years they bought at the high part of the market; thus, the foreclosure and short sale phenonumen. The rule of thumb to any investing or any business is TIMING, TIMING, TIMING.
Another questions to ask yourself what time frame of investing, expectations, do you have the cash or financing and most importantly, whether the property will cash flow. Analyze the property, take all the expenses, taxes, hoa, maintenance, property manager, vacancy, home warranty, landlord insurance policy, holding the property in an LLC, etc. Find out what the property can be rented for. Find out the crime stats in the area and then do the math.
When buying real estate for income it is necessary to look at the type of income that you purchase. Single family homes in the Las Vegas area will be a great investment, for income if done correctly. Let me give you an example: A three bedroom home in Las Vegas, Nevada that would sell for 80,000 rents for $1,500 per month. Subtracting out the annual expenses of the debt service (mortgage payment), property taxes, insurance and the other expenses I mentioned above. It would not be uncommon for this property to net $7,200 yr after expenses. Take that to another level. Invest in 10 homes with that same outcome that would be $72,000 a year. Go a little further, invest in 20 homes would equal $144,000 a year. We have not even discussed the tax advantages. Your CPA would give you that information.
Let’s take a look at commercial property. Multiunit properties, apartments, or commercial properties may be far superior in terms of income than single family homes. In today’s market, you may be able to find a 4 unit property for $100,000. Obviously the figures are larger however so the return is. If done correctly.
Using leverage (OPM or OPC) may also allow for additional income on a property.
End Result: You need to do some planning prior to purchasing a property and find a knowledgeable real estate agent that has done investing for themselves. You should consider the types of properties, how to fund the property, whether to use leverage, who will manage the property, what improvements it may need, and what annual expenses it may have, among other items. The list of considerations is long, but the outcome will be well worth the hard work and profitable. Happy Investing!
This question that you ask yourself may sound ridiculous, however an important one for your financial future. Timing is so important. What was the famous line in real estate? Location, location, location. Look back at the years 2003 to 2008 at the feeding frenzy. If someone bought in those years they bought at the high part of the market; thus, the foreclosure and short sale phenonumen. The rule of thumb to any investing or any business is TIMING, TIMING, TIMING.
Another questions to ask yourself what time frame of investing, expectations, do you have the cash or financing and most importantly, whether the property will cash flow. Analyze the property, take all the expenses, taxes, hoa, maintenance, property manager, vacancy, home warranty, landlord insurance policy, holding the property in an LLC, etc. Find out what the property can be rented for. Find out the crime stats in the area and then do the math.
When buying real estate for income it is necessary to look at the type of income that you purchase. Single family homes in the Las Vegas area will be a great investment, for income if done correctly. Let me give you an example: A three bedroom home in Las Vegas, Nevada that would sell for 80,000 rents for $1,500 per month. Subtracting out the annual expenses of the debt service (mortgage payment), property taxes, insurance and the other expenses I mentioned above. It would not be uncommon for this property to net $7,200 yr after expenses. Take that to another level. Invest in 10 homes with that same outcome that would be $72,000 a year. Go a little further, invest in 20 homes would equal $144,000 a year. We have not even discussed the tax advantages. Your CPA would give you that information.
Let’s take a look at commercial property. Multiunit properties, apartments, or commercial properties may be far superior in terms of income than single family homes. In today’s market, you may be able to find a 4 unit property for $100,000. Obviously the figures are larger however so the return is. If done correctly.
Using leverage (OPM or OPC) may also allow for additional income on a property.
End Result: You need to do some planning prior to purchasing a property and find a knowledgeable real estate agent that has done investing for themselves. You should consider the types of properties, how to fund the property, whether to use leverage, who will manage the property, what improvements it may need, and what annual expenses it may have, among other items. The list of considerations is long, but the outcome will be well worth the hard work and profitable. Happy Investing!
Wednesday, July 13, 2011
5 Questions to ask Your Home Inspector
5 Questions to Ask your Home Inspector
Courtesy of
http://www.trulia.com/blog/taranelson/2011/07/5_questions_to_ask_your_home_s_inspector
Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!
So, you hire a home inspector, but it seems like they’re speaking an entirely different language - riddled with terms like “serviceable condition” and “conducive to deterioration” - about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.
1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.
I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!
In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).
2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is - “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 - tops.” And that’s useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.
And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.
And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.
3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it’s last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”
This question positions your home inspector to help you:
• understand what does and doesn’t need to be repaired,
• prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),
• get used to the constant maintenance that is part and parcel of homeownership, and
• understand the importance of having a home warranty plan.
4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.
Your best bet is to, at the end of the inspection, while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)
5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections.
Courtesy of
http://www.trulia.com/blog/taranelson/2011/07/5_questions_to_ask_your_home_s_inspector
Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you’re about to make: a home!
So, you hire a home inspector, but it seems like they’re speaking an entirely different language - riddled with terms like “serviceable condition” and “conducive to deterioration” - about your dream home! Here are 5 questions you can use to decode your home inspector’s findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.
1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They’re not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They’re all about the facts. But sometimes, that straightforwardness makes it hard for you, the home’s buyer, to understand what’s a big deal and what isn’t so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for.
I’ve seen things categorized in home inspection reports under “Health and Safety Hazards” that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I’ve seen one-liners in inspection reports, like “extensive earth-to-wood contact” result, after further inspection, in foundation repair bids pricier than the whole cost of the home!
In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).
2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector’s response is - “What do you mean? You don’t need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here’s how you pop it in. Should cost you $15 - tops.” And that’s useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it’s done, or (b) hire a handyperson to do these small fixes, knowing they shouldn’t be too terribly costly.
And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you’ll need to get bids from during your contingency period, which you may be able to use to negotiate with your home’s seller, and to get the work done after you own the place. Dropping the inspector’s name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.
And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.
3. If this was your house, what would you fix, and when? Your home inspector’s job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it’s last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I’ve asked this question about an item the inspector described as “at the end of its serviceable lifetime” and had them say, “I wouldn’t do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break.”
This question positions your home inspector to help you:
• understand what does and doesn’t need to be repaired,
• prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly),
• get used to the constant maintenance that is part and parcel of homeownership, and
• understand the importance of having a home warranty plan.
4. Can you point that out to me? Often, when you attend the home inspection, you’ll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector’s report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed.
Your best bet is to, at the end of the inspection, while you’re all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they’ve noted need repair, maintenance or further inspection. When you get the report, then, you’ll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)
5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections.
Wednesday, February 2, 2011
The Real Estate Buzz
THE REAL ESTATE BUZZ!!
There’s something in the air. Have you noticed it? Downtown is busier, restaurants are crowded and retail sales are up. The same is true in the real estate market. Pending home sales improved in December, marking the fifth gain in the past six months. New home sales are up 17.5 % nationwide according to the Department of Housing and Urban Development.
Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), credits this upswing to affordability, favorable mortgage rates and an improving economy. Yun predicts, “The positive trend is likely to continue in 2011. Current activity suggests a sustainable, healthy volume of a mid-5 million in total home sales for this year.”
Our local market is reflecting this upswing. Builders are starting to build in preparation for sales at higher prices in the year to come. Inflation is a concern that drives some to buy now. By the end of February, more homes will come on the market. The spring season of March, April and May are traditionally very active. Now may be the time to evaluate your options and capitalize on the spring market.
JUST ASKQ: What are the new trends in remodeling?
A: Since December, there has been an upswing in remodeling nationwide according to the National Association of the Remodeling Industry (NARI). The cost of a remodel is running about 10 to 15% less than two years ago. In general, NARI reports that the project size is smaller.
Instead of expanding your home, consider borrowing space from oversized rooms. Instead of building a wine room, install a wine storage appliance. Instead creating a separate home theater in the basement, avoid the cost of expensive electronics and make a multipurpose room. I wonder whether the phase of bigger homes, bigger basements and bigger toys is ending or just slowing. Many clients say that they do not use those extra rooms. Let me know what you think.
MY TOWN
The National Restaurant Association's What's Hot in 2011 survey of more than 1,500 professional chefs revealed that local sourcing, healthy children's meals, sustainable seafood, and gluten-free cuisine will be among the hottest trends on restaurant menus in 2011. 30% of those surveyed said that pop-up restaurants will be the hottest trend in 2011.
Pop-up restaurants have been gaining notoriety in the world of “foodies” and mainstream America is starting to take notice. Rather than taking on the burden of a long term lease, a pop-up restaurant allows established, known chefs to temporarily rent space in a bakery or small restaurant and offer meals only at certain times. Bakeries and delis by day are transformed into high-end restaurants by night.
Ludo Levebre, one of the founders of this movement, earned Mobile Travel Guide Five Star awards at two of Los Angeles' most prestigious restaurants before opting for freedom. Chef Levebre’s website compares his traveling restaurant, LudoBites, to a band: “Like a club band we have been touring locally…and playing different parts of Los Angeles.”
Go online to find a pop-up restaurant near you. Search for: "pop up restaurants in (your city here) 2011," and peruse the options. Let me know if you try out one of the hottest food trends of 2011.
FYI
Got any home improvement plans lined up for the New Year? The following online programs are free and offer a great way to design your home projects before you start:
•Autodesk Homestyler is created by the same company that makes AutoCAD architectural software. This robust, easy-to-use application lets you arrange and design your project by simply dragging and dropping elements such as windows and doors, furniture and appliances.
•Google Sketchup is a sophisticated software application that lets you build 3D models of your home. Online video tutorials will help you get started. Users can upload their creations to a shared database where you can peruse others’ works for inspiration.
•Ikea Planner lets you build a room and furnish it with Ikea products.
For minor upgrades such as new flooring and paint colors, try these online resources.
•With Colorjive you can upload a photo of the room you want and try on new color schemes. Adjust lighting conditions then process your image to obtain the color index numbers for Sherman Williams and Benjamin Moore paints.
•Daltile’s website lets you design your own project, select and arrange coordinating tiles, and tally up the final price of your project.
•Armstrong Flooring displays stock photos demonstrating a number of flooring options from laminates to hardwood
There’s something in the air. Have you noticed it? Downtown is busier, restaurants are crowded and retail sales are up. The same is true in the real estate market. Pending home sales improved in December, marking the fifth gain in the past six months. New home sales are up 17.5 % nationwide according to the Department of Housing and Urban Development.
Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), credits this upswing to affordability, favorable mortgage rates and an improving economy. Yun predicts, “The positive trend is likely to continue in 2011. Current activity suggests a sustainable, healthy volume of a mid-5 million in total home sales for this year.”
Our local market is reflecting this upswing. Builders are starting to build in preparation for sales at higher prices in the year to come. Inflation is a concern that drives some to buy now. By the end of February, more homes will come on the market. The spring season of March, April and May are traditionally very active. Now may be the time to evaluate your options and capitalize on the spring market.
JUST ASKQ: What are the new trends in remodeling?
A: Since December, there has been an upswing in remodeling nationwide according to the National Association of the Remodeling Industry (NARI). The cost of a remodel is running about 10 to 15% less than two years ago. In general, NARI reports that the project size is smaller.
Instead of expanding your home, consider borrowing space from oversized rooms. Instead of building a wine room, install a wine storage appliance. Instead creating a separate home theater in the basement, avoid the cost of expensive electronics and make a multipurpose room. I wonder whether the phase of bigger homes, bigger basements and bigger toys is ending or just slowing. Many clients say that they do not use those extra rooms. Let me know what you think.
MY TOWN
The National Restaurant Association's What's Hot in 2011 survey of more than 1,500 professional chefs revealed that local sourcing, healthy children's meals, sustainable seafood, and gluten-free cuisine will be among the hottest trends on restaurant menus in 2011. 30% of those surveyed said that pop-up restaurants will be the hottest trend in 2011.
Pop-up restaurants have been gaining notoriety in the world of “foodies” and mainstream America is starting to take notice. Rather than taking on the burden of a long term lease, a pop-up restaurant allows established, known chefs to temporarily rent space in a bakery or small restaurant and offer meals only at certain times. Bakeries and delis by day are transformed into high-end restaurants by night.
Ludo Levebre, one of the founders of this movement, earned Mobile Travel Guide Five Star awards at two of Los Angeles' most prestigious restaurants before opting for freedom. Chef Levebre’s website compares his traveling restaurant, LudoBites, to a band: “Like a club band we have been touring locally…and playing different parts of Los Angeles.”
Go online to find a pop-up restaurant near you. Search for: "pop up restaurants in (your city here) 2011," and peruse the options. Let me know if you try out one of the hottest food trends of 2011.
FYI
Got any home improvement plans lined up for the New Year? The following online programs are free and offer a great way to design your home projects before you start:
•Autodesk Homestyler is created by the same company that makes AutoCAD architectural software. This robust, easy-to-use application lets you arrange and design your project by simply dragging and dropping elements such as windows and doors, furniture and appliances.
•Google Sketchup is a sophisticated software application that lets you build 3D models of your home. Online video tutorials will help you get started. Users can upload their creations to a shared database where you can peruse others’ works for inspiration.
•Ikea Planner lets you build a room and furnish it with Ikea products.
For minor upgrades such as new flooring and paint colors, try these online resources.
•With Colorjive you can upload a photo of the room you want and try on new color schemes. Adjust lighting conditions then process your image to obtain the color index numbers for Sherman Williams and Benjamin Moore paints.
•Daltile’s website lets you design your own project, select and arrange coordinating tiles, and tally up the final price of your project.
•Armstrong Flooring displays stock photos demonstrating a number of flooring options from laminates to hardwood
Monday, January 31, 2011
Real Estate Workshop
What a great workshop on Saturday, January 29, 2010 in Las Vegas.
We discussed fitting the puzzle pieces together in order to invest in real estate.
We heard from a CPA and a loan officer and asked the hard questions.
The agenda
How to create a business Plan for investing
How to stay committed to your plan
What is the definition of KASH and how to implement in your business plan?
How to any analyze property
How the buying/loan process works
How does the escrow process works
To receive the information contact Dawn (702) 236-6266
We discussed fitting the puzzle pieces together in order to invest in real estate.
We heard from a CPA and a loan officer and asked the hard questions.
The agenda
How to create a business Plan for investing
How to stay committed to your plan
What is the definition of KASH and how to implement in your business plan?
How to any analyze property
How the buying/loan process works
How does the escrow process works
To receive the information contact Dawn (702) 236-6266
Monday, January 3, 2011
Better Than Expected!
Existing Home Sales - Stable Pricing, Better than Expected Sales
The third quarter gave us an opportunity to see the effects of both slow bank-owned (REO) additions to the market as well as the effect of the homebuyer tax credit (there were three versions). As a result of these factors, demand was pulled forward,
essentially borrowing sales from the future.
In terms of the housing tax credit’s effect on pricing, we observed a temporary bump in the prices of homes on the lower end of the spectrum. Nationally, research has shown that the third version generated an approximate 6.4% growth above trend (FNC,
2010). Our research has demonstrated that locally, prices on large homes (typically greater than 2,000 sq. ft.) did not experience an increase in prices, but more of a slowing of price declines.
The second half of 2009 and early 2010 was a vibrant period, with multiple offers on well-priced homes becoming commonplace. The post-tax credit season has included moderating sales, but has been outperforming our own expectations in the third
quarter.
Potential homebuyers had been craving more inventory, and the third quarter experienced additional inventory due to a combination of moderating sales
and more new placements on the market. This turned into a benefit for home buyers by helping to decrease their search time. With the increase in inventory we have observed a rise in the number days on market. This has yet to manifest itself in a resulting decline in prices for the bulk of homes sold; some housing types continue to see declines, but this is not symmetric for the whole market.
There is some pressure on home prices, but it is moderated by investors recognizing the long-term potentials of the market, as well as the cash flow opportunities yielded by rental properties. The bottom line for a great deal of buyers is that buying is less expensive than renting. This fact is further substantiated by the observed returns from homes sold with tenants in place, where investors have been able to achieve un-leveraged returns in the high single digits and often double digits.
Recognizing these returns, investors have made up a great proportion of our sales, possibly up to fifty percent. This is not the ideal speculator we saw in the past, but rather a majority of investors we encounter have a long-term hold strategy. This has been very beneficial for the marketplace.
The third quarter gave us an opportunity to see the effects of both slow bank-owned (REO) additions to the market as well as the effect of the homebuyer tax credit (there were three versions). As a result of these factors, demand was pulled forward,
essentially borrowing sales from the future.
In terms of the housing tax credit’s effect on pricing, we observed a temporary bump in the prices of homes on the lower end of the spectrum. Nationally, research has shown that the third version generated an approximate 6.4% growth above trend (FNC,
2010). Our research has demonstrated that locally, prices on large homes (typically greater than 2,000 sq. ft.) did not experience an increase in prices, but more of a slowing of price declines.
The second half of 2009 and early 2010 was a vibrant period, with multiple offers on well-priced homes becoming commonplace. The post-tax credit season has included moderating sales, but has been outperforming our own expectations in the third
quarter.
Potential homebuyers had been craving more inventory, and the third quarter experienced additional inventory due to a combination of moderating sales
and more new placements on the market. This turned into a benefit for home buyers by helping to decrease their search time. With the increase in inventory we have observed a rise in the number days on market. This has yet to manifest itself in a resulting decline in prices for the bulk of homes sold; some housing types continue to see declines, but this is not symmetric for the whole market.
There is some pressure on home prices, but it is moderated by investors recognizing the long-term potentials of the market, as well as the cash flow opportunities yielded by rental properties. The bottom line for a great deal of buyers is that buying is less expensive than renting. This fact is further substantiated by the observed returns from homes sold with tenants in place, where investors have been able to achieve un-leveraged returns in the high single digits and often double digits.
Recognizing these returns, investors have made up a great proportion of our sales, possibly up to fifty percent. This is not the ideal speculator we saw in the past, but rather a majority of investors we encounter have a long-term hold strategy. This has been very beneficial for the marketplace.
Welcome 2011
I hope you all had a Safe New Years Day. Its time to get back into the groove.
There is no better way to start 2011 than to begin with supplying your retirement; Real Estate Investing is a sure fire way to do just that.
Las Vegas is the hottest market! With prices as low as they are along with interest rates at the lowest they have been since 1950.
There are properties that you can purchase for $20,000. Rent it out for $500.00 a month. If you had 10 properties that would be $5,000 a month, now. Now lets discuss 10, 15, 20 years from now. Inflation..... at 3.5% a year, you would be charging $800 to $1,000 a month. Calculate that, $1,000 a month times 10 properties that would be $10,000 a month. Thats a nice nest egg, not to mentioned that tax deductions too. Check my website out, www.sharebuildersinc.com or just call to set up an appointment, (702) 236-6266
There is no better way to start 2011 than to begin with supplying your retirement; Real Estate Investing is a sure fire way to do just that.
Las Vegas is the hottest market! With prices as low as they are along with interest rates at the lowest they have been since 1950.
There are properties that you can purchase for $20,000. Rent it out for $500.00 a month. If you had 10 properties that would be $5,000 a month, now. Now lets discuss 10, 15, 20 years from now. Inflation..... at 3.5% a year, you would be charging $800 to $1,000 a month. Calculate that, $1,000 a month times 10 properties that would be $10,000 a month. Thats a nice nest egg, not to mentioned that tax deductions too. Check my website out, www.sharebuildersinc.com or just call to set up an appointment, (702) 236-6266
Tuesday, November 30, 2010
Real Estate Buzz.....
Bank of America, the nation’s largest mortgage service company since acquiring Countrywide in 2008, announced that they will resume foreclosing on homes Wednesday, December 1st. This comes after the banking giant self-imposed a foreclosure moratorium in the wake of the “robo-signing” scandal that received wide spread media attention in 2009. While this news is undoubtedly another blow to beleaguered homeowners, it comes none too soon for investors looking to purchase post foreclosure properties. In the final quarter of 2010, investors have found slim pickings at Trustees’ Sale auctions across the country.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
The last several years have seen several cessations and moratoriums on foreclosure proceedings that have caused the pool of available investment properties to dry up until the next wave of foreclosures begins. Many agents have struggled during these times to find suitable properties for their clients. My unique approach to securing homes for my investor/clients has insured that we at Share Builders Inc/The Force Realty have actually thrived during these past several years of market flux.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
The last several years have seen several cessations and moratoriums on foreclosure proceedings that have caused the pool of available investment properties to dry up until the next wave of foreclosures begins. Many agents have struggled during these times to find suitable properties for their clients. My unique approach to securing homes for my investor/clients has insured that we at Share Builders Inc/The Force Realty have actually thrived during these past several years of market flux.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
Thursday, November 11, 2010
Short Sales vs Foreclosures
I have recently had a few people that I have been talking to about short sales over the past several months come to me with great urgency for help.
Both just had foreclosure (NOD) notices taped to their door, which signifies the start of the formal foreclosure process.
The foreclosure process takes about 121 days to complete before the bank can sell your house at the trustee sale.
A typical short sale can take 2-4 months from the start of processing, but that is under the most ideal circumstances and I am sure most of you have heard that things rarely go smooth during these transactions. That being said, it is not necessarily too late but it definitely does limit our choices and makes things tougher.
Banks have started to get stricter on foreclosure postponements during short sale processing so the longer you wait to start the short sale (if that is the best decision for you) the less chance of success we will have because we have little room for error (or losing a buyer, or changing negotiators, etc).
The main point of this email is to let you know that if you are considering your options on what to do with your home do not procrastinate!
Meet with the appropriate professionals (CPA, attorney, financial advisor, etc) and form a game plan sooner rather than later. It could mean the difference in a successful short sale with the best of outcomes (full release from the deficiency without contributions) to a foreclosure or possible bankruptcy (if sued by the bank). If you have any questions or want to meet for a confidential consultation about your options please email or call me.
They are always free. I am a very good source of real world information (aside from your uncle Joey in New York of course!).
Also, please forward this to anyone in your database that may appreciate the information!
Both just had foreclosure (NOD) notices taped to their door, which signifies the start of the formal foreclosure process.
The foreclosure process takes about 121 days to complete before the bank can sell your house at the trustee sale.
A typical short sale can take 2-4 months from the start of processing, but that is under the most ideal circumstances and I am sure most of you have heard that things rarely go smooth during these transactions. That being said, it is not necessarily too late but it definitely does limit our choices and makes things tougher.
Banks have started to get stricter on foreclosure postponements during short sale processing so the longer you wait to start the short sale (if that is the best decision for you) the less chance of success we will have because we have little room for error (or losing a buyer, or changing negotiators, etc).
The main point of this email is to let you know that if you are considering your options on what to do with your home do not procrastinate!
Meet with the appropriate professionals (CPA, attorney, financial advisor, etc) and form a game plan sooner rather than later. It could mean the difference in a successful short sale with the best of outcomes (full release from the deficiency without contributions) to a foreclosure or possible bankruptcy (if sued by the bank). If you have any questions or want to meet for a confidential consultation about your options please email or call me.
They are always free. I am a very good source of real world information (aside from your uncle Joey in New York of course!).
Also, please forward this to anyone in your database that may appreciate the information!
Thursday, October 7, 2010
The Real Estate Buzz......
Real estate prices in our area continue to remain steady. After the tax credits for home buyers expired last May, there was concern that the market could tank. Yet, existing home sales have stabilized over the past year. Lawrence Yun, Chief Economist for the National Association of Realtors, reports that the housing market continues to recover on its own power without the homebuyer tax credit. The NAR reported in September that existing-home sales rose by 7.6% in August following a big correction in July.
I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.
So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.
JUST ASK
Q: What is a CMA?
A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.
MY TOWN
Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.
The Internet offers some free resources to find school ratings. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the Academic Performance Index results.
FYI
With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.
Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.
Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.
Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.
I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.
So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.
JUST ASK
Q: What is a CMA?
A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.
MY TOWN
Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.
The Internet offers some free resources to find school ratings. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the Academic Performance Index results.
FYI
With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.
Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.
Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.
Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.
Monday, September 27, 2010
10 Reasons Why It is A Good Time to Buy a Home NOW!!
SEPTEMBER 16, 2010, 7:13 A.M. ET
By Brett Arends
ENOUGH WITH THE DOOM AND GLOOM ABOUT HOMEOWNERSHIP! Brett Arends explains why owning a home is a good thing.
So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.
2. Mortgages are cheap. These are the lowest rates on record. As recently as two years ago they were about 6.3%. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refinance.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out.
By Brett Arends
ENOUGH WITH THE DOOM AND GLOOM ABOUT HOMEOWNERSHIP! Brett Arends explains why owning a home is a good thing.
So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.
2. Mortgages are cheap. These are the lowest rates on record. As recently as two years ago they were about 6.3%. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refinance.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent.
5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out.
Thursday, September 2, 2010
The Real Estate Market is HOT
Although the news may sound like the world is coming to end. The real estate market and the individuals who are in the "know" are CASHING IN!! This is the best time to purchase whether a owner/occupant or as a real estate investor. If you are wanting to get into the market as an investor here are a few rules to live by:
RULES TO INVESTING IN REAL ESTATE
1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?
2. Have a criteria and stick to it.
3. Do your research on the properties.
4. Always put your investment property in an LLC. Get legal advice.
5. Have a good CPA and Attorney
6. Always have CASH FLOW. Without the cash you will not be able to make it work.
7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.
8. Never rent to FAMILY or FRIENDS. This is a business not a charity.
9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.
10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa
Visit my website www.sharebuildersinc.com or call (702) 236-6266
RULES TO INVESTING IN REAL ESTATE
1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?
2. Have a criteria and stick to it.
3. Do your research on the properties.
4. Always put your investment property in an LLC. Get legal advice.
5. Have a good CPA and Attorney
6. Always have CASH FLOW. Without the cash you will not be able to make it work.
7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.
8. Never rent to FAMILY or FRIENDS. This is a business not a charity.
9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.
10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa
Visit my website www.sharebuildersinc.com or call (702) 236-6266
Tuesday, August 3, 2010
Defense for you Asset
I have had a discussion on this topic a few months back, however It seems I having the same conversation with many investors, homeowners, and business owners.
An important discussion is keeping your asset protected.
Living trusts are used by millions of people who wish to keep their assets from going through probate when they die. Most living trusts, however, are not adequate for protecting assets from creditors because the trusts are revocable. This means that the person setting up the trust can revoke or change the terms of the trust at any time. If you have a revocable trust, and you can get control of the assets, the courts have consistently held that your creditors can also get control of those assets.
Trusts that are irrevocable can be more successfully used to protect assets. Once you set up an irrevocable trust, you cannot change the terms or revoke it. In essence, you have given your assets away; they are no longer available to satisfy claims against you. A judgment creditor cannot get to these funds. These are just two trusts that are avaiavable, there are many more.
What about LLC's, S, Corps, C Corporations are another way of protection.
Real estate asset protection do you need it? Well, considering that real-estate is risky enough as it is, if someone gets killed or hurt you are likely to be sued by the injured victims or family members. That is a given as accidents do happen but lawsuits are more likely to happen when people know you own property. Particularity in this age where someone can sue a business because the coffee they were drinking was too hot or where a lady was awarded 12 million dollars in a foiled suicide attempt on the train tracks.
Consider this scenario you are sued for $2,000,000, your insurance will cover $1,000,000 but guess who is left with a $1,000,000 problem. The day before life was rosy but today you are in the poor house. You could of avoided that issue all together if you had real estate asset protection that is if you didn't have the property in your name.
The biggest mistake you can make is to put your real estate in your own name as it all a part of public record. Anyone can look at what you have determine its current market value and deduct what you owe to see what they can take you for. Putting your name out in public land registry is equivalent to painting a bulls eye on your back to prying eyes such as attorneys, creditors and even tenants.
But what entity is the real estate asset protection? What entity or corporate structure do I use to buy and sell to hold real estate? How can I limit my liability exposure? These are very good questions to ask and a good place to start.
Certainly your first protection is liability insurance, but should judgments exceed your insurance or should your insurance not cover you for whatever reason you need real estate asset protection.
A land trust is a form of an irrevocable living trust used to take title to real estate so the beneficiaries cannot be easily discovered. However the land trust is not considered to be a separate taxable entity and there are no tax benefits of transferring property in or out of it.
A corporation is an effective device to buy and sell real estate so if the beneficiary of the land trust is a corporation one can have the tax benefits of being taxed after expenses at a corporate rate rather than before expenses and at the higher rate of an individual. As an individual you may also be taxed as a dealer at 15% for buying and selling.
Depending on your tax situation you might be better off with a C Corporation rather than a S Corporation. A corporation is a C Corporation by default and files a separate tax return whereas a S corporation is specially set up so that it splits up its profits to its shareholders as dividends. The shareholders then report their income on their own personal tax returns. In most cases its better to start out as a S Corporation and later change into a C Corporation when the tax advantages become evident.
A LLC or limited liability company allows the shareholders to participate in the running of the company without sharing its liability. Like a S Corporation the profits and losses flow to the owners. Buying and selling may subject the owners as an active activity to a dealers tax of 15% making the C corporation a better choice. If the business is primarily rents the LLC may be better. Its conceivable that one can form an LLC for every property and file one personal income tax if there is only one owner.
In any case get as much insurance as your entity can sustain to cover your real estate and business activity. Insure the entity is the names insured. Making sure the entity holds title to all your real estate to insure you won't be named the defendant in any potential lawsuit.
Those are some areas to consider before you obtain further professional advice for getting the best real estate asset protection
An important discussion is keeping your asset protected.
Living trusts are used by millions of people who wish to keep their assets from going through probate when they die. Most living trusts, however, are not adequate for protecting assets from creditors because the trusts are revocable. This means that the person setting up the trust can revoke or change the terms of the trust at any time. If you have a revocable trust, and you can get control of the assets, the courts have consistently held that your creditors can also get control of those assets.
Trusts that are irrevocable can be more successfully used to protect assets. Once you set up an irrevocable trust, you cannot change the terms or revoke it. In essence, you have given your assets away; they are no longer available to satisfy claims against you. A judgment creditor cannot get to these funds. These are just two trusts that are avaiavable, there are many more.
What about LLC's, S, Corps, C Corporations are another way of protection.
Real estate asset protection do you need it? Well, considering that real-estate is risky enough as it is, if someone gets killed or hurt you are likely to be sued by the injured victims or family members. That is a given as accidents do happen but lawsuits are more likely to happen when people know you own property. Particularity in this age where someone can sue a business because the coffee they were drinking was too hot or where a lady was awarded 12 million dollars in a foiled suicide attempt on the train tracks.
Consider this scenario you are sued for $2,000,000, your insurance will cover $1,000,000 but guess who is left with a $1,000,000 problem. The day before life was rosy but today you are in the poor house. You could of avoided that issue all together if you had real estate asset protection that is if you didn't have the property in your name.
The biggest mistake you can make is to put your real estate in your own name as it all a part of public record. Anyone can look at what you have determine its current market value and deduct what you owe to see what they can take you for. Putting your name out in public land registry is equivalent to painting a bulls eye on your back to prying eyes such as attorneys, creditors and even tenants.
But what entity is the real estate asset protection? What entity or corporate structure do I use to buy and sell to hold real estate? How can I limit my liability exposure? These are very good questions to ask and a good place to start.
Certainly your first protection is liability insurance, but should judgments exceed your insurance or should your insurance not cover you for whatever reason you need real estate asset protection.
A land trust is a form of an irrevocable living trust used to take title to real estate so the beneficiaries cannot be easily discovered. However the land trust is not considered to be a separate taxable entity and there are no tax benefits of transferring property in or out of it.
A corporation is an effective device to buy and sell real estate so if the beneficiary of the land trust is a corporation one can have the tax benefits of being taxed after expenses at a corporate rate rather than before expenses and at the higher rate of an individual. As an individual you may also be taxed as a dealer at 15% for buying and selling.
Depending on your tax situation you might be better off with a C Corporation rather than a S Corporation. A corporation is a C Corporation by default and files a separate tax return whereas a S corporation is specially set up so that it splits up its profits to its shareholders as dividends. The shareholders then report their income on their own personal tax returns. In most cases its better to start out as a S Corporation and later change into a C Corporation when the tax advantages become evident.
A LLC or limited liability company allows the shareholders to participate in the running of the company without sharing its liability. Like a S Corporation the profits and losses flow to the owners. Buying and selling may subject the owners as an active activity to a dealers tax of 15% making the C corporation a better choice. If the business is primarily rents the LLC may be better. Its conceivable that one can form an LLC for every property and file one personal income tax if there is only one owner.
In any case get as much insurance as your entity can sustain to cover your real estate and business activity. Insure the entity is the names insured. Making sure the entity holds title to all your real estate to insure you won't be named the defendant in any potential lawsuit.
Those are some areas to consider before you obtain further professional advice for getting the best real estate asset protection
Monday, August 2, 2010
How to Raise Financially-Smart Kids
There is a great article on how to raise fincially smart kids. I thought I would share it with others.
http://www.foxbusiness.com/personal-finance/2010/07/29/raise-financially-smart-kids/
http://www.foxbusiness.com/personal-finance/2010/07/29/raise-financially-smart-kids/
Tuesday, July 27, 2010
Investing In Las Vegas = CASH FLOW!!
It is truly amazing the deals that are here in Las Vegas. Investors can cash flow like crazy!!! Another property 2 bedroom, 2 bathroom for $25,000. This unit can be rented out for $795.00 a month. Now that's what I call CASH FLOW. Just think if you had 10 of these properties. Laughing all the way to the bank $7950.00 coming in each month. I will be going on some incredible trips!! Any one want to join me. Where would you go first. Since I am a scuba diving, I will be going to the South Pacific.
Monday, June 28, 2010
Wealth Creation through Real Estate
I have found many people wanting to know how to create wealth through real estate but have not done anything about it. Reasons are many:
1. Scared and/or Fear
2. Do not know how or where to start
3. Have a mentor to show them
4. No Credit or Money
5. No time
The list goes on.
There is an easy way to create wealth through Real Estate!
Check out www.sharebuildersinc.com
1. Scared and/or Fear
2. Do not know how or where to start
3. Have a mentor to show them
4. No Credit or Money
5. No time
The list goes on.
There is an easy way to create wealth through Real Estate!
Check out www.sharebuildersinc.com
Thursday, June 24, 2010
NO LIMITS!!
I had an incredible coach (Jordan Wirsz) share this information with me and I thought I would share it with you.
Do you know what a 10% stake in the Apple Inc. company is worth today? I do. $22 Billion to be exact. Did you know, there were actually THREE founders of Apple? His name was Ron Wayne, and was one of the three original founders of Apple. His story is a bit more unique than the typical Billionaire technology founder...Instead, he made a decision that would change his life (or maybe a better way to put it, would NOT change his life) forever. Only 11 days after the Apple enterprise was founded, Ron Wayne began to second guess himself and the other two Apple founders, including legendary Apple icon, Steve Jobs.
We all doubt ourselves at times...Our business, our thoughts, our "gut instincts," but what Ron Wayne did, was sold out. Literally. Only 11 days after his entry into the business, he sold his stake back to the other two founders for a mere $800, considering it "found money," at the time he was thrilled to have the $800. Today, that same 10% stake would be worth a staggering $22 Billion. Today, Ron Wayne lives in Pahrump Nevada, in a small single story house, with a metal carport, and living off of his social security check, going to the Casino's every day, hoping his luck will turn around.
Ron said, "I made the best decision I could at the time, with the information I had, and now I'm living with the decision."
Who would have known, right? I mean Apple, who would have thought? In 1976, that $800 was worth a lot more than it is today...And at the time, Ron's greed made him take the short, sweet, and easy way out of a partnership before it really even began. That greed driven decision cost him $22 Billion.
If you have a passion, a mission, drive, focus, dedication, determination, tenacity to succeed, then you need to know that there is absolutely NO limits to what can be accomplished. The only limits we have are the ones we give ourselves.
Do you know what a 10% stake in the Apple Inc. company is worth today? I do. $22 Billion to be exact. Did you know, there were actually THREE founders of Apple? His name was Ron Wayne, and was one of the three original founders of Apple. His story is a bit more unique than the typical Billionaire technology founder...Instead, he made a decision that would change his life (or maybe a better way to put it, would NOT change his life) forever. Only 11 days after the Apple enterprise was founded, Ron Wayne began to second guess himself and the other two Apple founders, including legendary Apple icon, Steve Jobs.
We all doubt ourselves at times...Our business, our thoughts, our "gut instincts," but what Ron Wayne did, was sold out. Literally. Only 11 days after his entry into the business, he sold his stake back to the other two founders for a mere $800, considering it "found money," at the time he was thrilled to have the $800. Today, that same 10% stake would be worth a staggering $22 Billion. Today, Ron Wayne lives in Pahrump Nevada, in a small single story house, with a metal carport, and living off of his social security check, going to the Casino's every day, hoping his luck will turn around.
Ron said, "I made the best decision I could at the time, with the information I had, and now I'm living with the decision."
Who would have known, right? I mean Apple, who would have thought? In 1976, that $800 was worth a lot more than it is today...And at the time, Ron's greed made him take the short, sweet, and easy way out of a partnership before it really even began. That greed driven decision cost him $22 Billion.
If you have a passion, a mission, drive, focus, dedication, determination, tenacity to succeed, then you need to know that there is absolutely NO limits to what can be accomplished. The only limits we have are the ones we give ourselves.
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