You need others to be successful

March 3, 2015 by
Image courtesy of podpad from freedigitalphotos.net

Image courtesy of podpad from freedigitalphotos.net

Be sure to carefully build your real estate investment team.  You will need to work with others to be successful.  Find professional, capable people in the following categories:  Real Estate Attorney, Title company, Real Estate Broker, Mortgage Broker, Hard Money Lender, Private Lenders, Clean out crew, Demolition crew, Insurance agent, Property Management, Plumber, Electrician, and Construction companies.

Generally speaking the old adage, “You get what you pay for” can apply.  Be very careful in selecting your team by make sure they are professional and capable.  One good way would be to ask successful real estate investors who they use.  In many cases your team can make or break your deal.  Choose carefully…

Filed Under: Real Estate Tagged With: , , , ,

Grow tax FREE?

February 27, 2015 by
Image3 Courtesy of Stuart Miles from freedigitalphotos.net

Image3 Courtesy of Stuart Miles from freedigitalphotos.net

A ROTH IRA allows tax free growth of your after tax contribution. It is quite a deal! If you are married, you can open one for yourself and one for your spouse then make the maximum contribution to each.  It is as easy as opening a bank account. But it is just a holder for your money, you will need to pick a method to get your tax FREE growth! You can invest in lots of different ways, like money market accounts, stocks, bonds, real estate or mutual funds. Really whatever way you are comfortable with. If you are interested in trying out stock options, check out  www.lockeinyoursuccess.com or contact us regarding questions on real estate investing. This one is sure to set you up to succeed in your future with contributions to a ROTH IRA!

Click like if you are contributing to a ROTH IRA this year!

Filed Under: Money Management, Real Estate, Stock Market Tagged With: , , , , , ,

Check, check and check again

February 24, 2015 by
Image2 courtesy of Stuart Miles from freedigitalphotos.net

Image2 courtesy of Stuart Miles from freedigitalphotos.net

Due diligence is VERY important, especially in real estate.  It is a fact finding mission to ensure all the information you receive is confirmed by the people qualified to give that information.  For instance, a neighbor of the subject property tells you the annual fee is $50 for the association but after you buy it you get invoiced $50 EVERY month.  That information should have been confirmed with the association BEFORE being purchased.  Your brother in law comes to look at that stain in the ceiling and tells you that is an old water stain from an ice dam but it turns out to be black mold and the roof needs to be replaced.  This can be a BIG problem. The advice should have been confirmed by a certified contractor BEFORE being purchased.  Please, please, please find confirm all information received from qualified people BEFORE you buy.

Is there any information you wish you had confirmed BEFORE you bought?  Please comment.

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Good things come to those who wait

February 17, 2015 by
Image courtesy of phasinphoto from freedigitalphotos.net

Image courtesy of phasinphoto from freedigitalphotos.net

When it comes to filling a vacancy in your rental property, patience and careful review are VERY important.  Create a non-discriminatory evaluation criteria for the potential residents of your property and follow it for each applicant.  The first thing to do is to have the applicant complete and sign an application.  From the application determine if they can afford to pay the rent given their income and debt ratio evaluation criteria.  Next confirm all the information from the application with the applicant’s employers and former landlords.  Be sure to ask open ended questions of the landlords so you can get a feel for what kind of resident they might be.  Then ALWAYS run a background AND credit check, to confirm the information you have been told verbally and on the application.  These are very important steps for a long term, happy landlord – resident relationship.  Take the time, you will be glad you did.

What other criteria would you include in the evaluation of a resident?  Please comment.

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Lots of money can be made when you buy

February 10, 2015 by
Image courtesy of phanlop88 from freedigitalphotos.net

Image courtesy of phanlop88 from freedigitalphotos.net

It sounds like an oxymoron, but you can make money when you buy real estate.  In your search for a killer deal find a realtor who has experience working with investors.  It can be difficult for a lot of realtors to work with the unemotional investor if they are used to the typical anxious seller or the buyer who falls in love with every house they see.

One of the best realtors to know is the real estate owned (REO) realtors in your target area.  These are the realtors that manage the bank owned properties.  Find them as can make a big difference in your bottom line from the moment you say “BUY”!

Anyone experience making money when you buy?  Please comment.

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1978 got the lead out!

February 3, 2015 by
Image courtesy of hywards from www.freedigitalphotos.net

Image courtesy of hywards from www.freedigitalphotos.net

Of course we all know that lead is considered to be a harmful environmental pollutant.  According to the EPA and HUD approximately 75% of the houses built before 1978 contain some lead-based paint.  So what?  Well if you are looking to buy real estate built prior to 1978 you should be fully aware of this issue.

To keep tenants safe, some rehabbers will “encapsulate” the lead paint to make sure that it is sealed.  As a landlord you must be diligent to make sure the paint is fully intact and does not get chipped or else the lead is exposed.  There could also be multiple sources of lead in the home so be sure to test thoroughly.

The EPA has lots of information on lead and can provide information on “abatements”.  This must be done by a Lead-Safe Certified firm and can be very costly. 

Another option is to only buy property built after 1978.  We like this option the best as it provides the least risk for lead issues.

Any real estate investors out there with any lead stories?  Please share…

 

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Brand spanking new houses!

January 27, 2015 by
New home by Stuart Miles from freedigitalphotos.net

New home by Stuart Miles from freedigitalphotos.net

There is something to be said for brand spanking new!  Speculative or spec home building can be very profitable under the right market conditions and in the right locations.  It is a blast to design and build something beautiful with all the bells and whistles, then sell at full retail (hopefully).  People love new houses. 

Here you will be looking for a good piece of land in a nice neighborhood. Depending on your comfort level, hire either a general contractor for the entire job or sub contract with various companies yourself to complete the construction.   Be sure the house you build is not at the top of the market (biggest house on the block), you should build a moderate home for the neighborhood.  You will need comparable homes or “comps” to make sure the value of your home appraises at the value you intended.  Always do your homework in your market to make sure the current conditions will yield good results.  Look for a high demand, low inventory market to give you the best chance of success.

Are there any neighborhoods that you feel would be a good market for a spec house?  Please comment.

 

Filed Under: Real Estate Tagged With: , , , ,

Taxes; The Good, The Bad and The Ugly

January 23, 2015 by

Just in case you missed it…A fantastic webinar, Taxes; The Good, The Bad and The Ugly with Kim Landry, CPA from Landry and Associates.  Kim gave us some great tax strategies and planning techniques to be able to keep more of what you make.

What is a tax strategy that has saved you from paying more taxes than necessary?  Please share.

Filed Under: Business Boost, Money Management, Real Estate, Stock Market, Webinar Tagged With: , , , , , , , , , ,

Worth their weight in gold!

January 22, 2015 by
Image courtesy of digitalart from freedigitalphotos.ne

Image courtesy of digitalart from freedigitalphotos.ne

A CPA can be a very important member of your investing team who can guide you through the labyrinth of taxes.  They are worth their weight in gold to you and your business.  A true CPA professional can ease your stress and save you lots of money you may have given Uncle Sam because you didn’t know any better.  Here are some tips when working with a CPA to make the most of your time and money.

Form a good relationship.  Once you find a good CPA, stick with them.  They become familiar with your business and they will ask important questions to lead you to a lower tax bill.  Of course, telling the truth is very important because it may make your CPA terminate your relationship and will hurt you if you are dishonest.

Lower your annual bill by being organized.  If you hand over a shoe box fill of receipts instead of a categorized report of expenses, your bill will most certainly be much higher.

Use your CPA in making decisions.  Be sure to consult your trusted CPA regarding purchases and don’t make assumptions.  Those assumptions could be very costly.

We are proud tonight to have our trusted accountant and friend Kim Landry, CPA with us tonight for our FREE webinar to go over the topic of taxes.  Don’t miss it!

 

Please comment on what you learned from the webinar.

 

 

Filed Under: Business Boost, Money Management, Real Estate, Stock Market Tagged With: , , , , , ,

Find a diamond in the rough

January 20, 2015 by
Image courtesy of Boykung from freedigitalphotos.net

Image courtesy of Boykung from freedigitalphotos.net

Do you like to turn the old and ugly into the new and improved?  Then rehabbing homes may be for you.  Here, you are looking at houses and get to figure out how to make them better .  You can make a house into someone’s dream home.  It’s a lot of fun!  However with this strategy, you must make sure you have someone you trust go through the home to see what it needs to bring it up to full retail condition.  Then you have to carefully estimate your rehab costs, making sure that you have considered your error factor (at minimum 10% of total rehab costs), holding costs (interest, electric, heat, water, taxes etc. while rehabbing) and your minimum profit (of course) to see if the deal is doable.  It may or may not be.  Don’t be so anxious to make a deal you get emotional and buy it anyway thinking it will all work out.  Carefully run the numbers and do your due diligence.  You are looking for a blue diamond in the rough and it can take a long time to find one.  Be patient, my friends.  Good things come to those who wait.

Do you have a favorite “Diamond in the rough” story?  If so, please share.

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