How to Reduce Your Property Tax Assessment The downturn in the real estate market has created a potentially ideal situation for anyone who holds real estate. This is because you have a good chance of reducing your property tax assessment and thus your property tax burden by appealing the value. I have saved thousands of dollars by appealing my property tax values, and you can as well.Your property taxes are based on the “fair market value.” The local tax assessor is supposed to … [Read more...]
8 Traits of Successful Real Estate Investors
October 7, 2012 By Leave a Comment
8 Traits of Successful Real Estate Investors Take a few minutes to think about the successful people around you, not only financially, but also those who embody personal success. Consider the characteristics each of them possess and how these characteristics have fueled their achievements in their given field. Over the past several years I have come in contact with quite a few real estate investors, both directly and indirectly, and have recognized many I consider to be very successful. These … [Read more...]
Mortgage Loan Forgiveness is Here!
October 6, 2012 By Leave a Comment
Mortgage loan forgiveness is for real and it is here. How? Back in the spring of 2012, federal banking regulators settled with 14 major mortgage servicers over alleged foreclosure abuses to the tune of $25 Billion. Among the 14, included industry leaders such as Bank of America, JPMorgan Chase, Citibank and Wells Fargo. Now, homeowners are opening letters from these companies and nearly fainting when they read the substance of the letter which describes complete mortgage loan forgiveness. Here's … [Read more...]
Real Estate and “The Bathtub Recovery”
October 4, 2012 By Leave a Comment
Real Estate and “The Bathtub Recovery” In last week’s article I talked about the importance of a ten year plan for real estate investing. In addition, I highlighted how important it is to use changes in market cycles to your advantage and the importance of adjusting your business model to suit the current and changing market cycle. Lastly, I called the reader’s attention to the fact that the market may be turning in a significant way. An outcome of the article was a reader’s … [Read more...]
Private Lending: Pros and Cons
October 3, 2012 By Leave a Comment
Private Lending: Pros and Cons One of my investors called me up today and told me he had decided he was ready to get into the lending business. He had already purchased a number of properties over the last year or so and was ready to diversify his real estate investing strategy. Part of his decision making process had to do with the tedious financing process he had experienced when buying a property a few months prior, but I think most of the decision had to do with a desire to branch out … [Read more...]
Why Investors Were the Real Heroes of 2011
October 3, 2012 By Leave a Comment
Why Investors Were the Real Heroes of 2011 A single survey, even if conducted to meet the highest professional standards of opinion research, can only include a limited number of questions, and thus, it can address a finite number of issues.That was the case with the Joint BiggerPockets.com/Memphis Invest survey released last week. I had the pleasure to participate in its design and execution, and we focused to three vital issue investors face: their purchasing plans for the near future … [Read more...]
Don’t Create A Retirement With Great Biceps But Girlie Legs
October 2, 2012 By 1 Comment
Don’t Create A Retirement With Great Biceps But Girlie Legs Many years ago one of my mentors asked me how I stayed in such good physical condition. He’d let himself go a bit, and didn’t want it to get, as he put it, outa hand. I gave him a beginning program which startled him. It included cardio work, resistance training, and consistent participation in a sport he happened to like. “Why all these things? Why can’t I just do some pushups and walk every day?” In fact, he probably … [Read more...]
The Five Financial Benefits of Real Estate Investments
October 1, 2012 By Leave a Comment
The Five Financial Benefits of Real Estate Investments Financial advisors will tell you that there are five ways that you can earn a return on any investment. In no particular order, these are:Cash Flow or Rate of ReturnFederal Tax BenefitsLeverage of OPM (Other People’s Money)Principal PaydownAppreciation.One of the wonderful things about real estate is that you can get all five! Real estate is the only investment that I know of that potentially gives you all of these advantages!Think … [Read more...]
How to Make Money in Real Estate
September 27, 2012 By Leave a Comment
Discovering how to make money in real estate can be a daunting experience. Real estate is a vast subject matter and millions of people earn a living (and some actually become fabulously wealthy) from real estate. After being a part of more than 1,000 real estate transactions over the past decade personally, along with coaching and training thousands of investors from all walks of life throughout the United States and Canada, I've heard, seen and done enough in real estate to simplify for you how … [Read more...]
The Power of Appreciation and Leverage: Boost Your Real Estate Returns
September 26, 2012 By Leave a Comment
The Power of Appreciation and Leverage: Boost Your Real Estate Returns If you’ve read any of my blogs on BiggerPockets, http://www.biggerpockets.com, you’ve probably noticed that I am a believer in real estate appreciation. Yes, real estate can and has lost value in recent years; but over time, real estate generally increases in value. This is especially true if you happen to time the market effectively. I have not been shy about the fact that I believe now is a very good time to buy … [Read more...]
Real Estate Investing for the Next 10 Years: If It Were Easy, Everyone Would Do It!
September 24, 2012 By Leave a Comment
Real Estate Investing for the Next 10 Years: If It Were Easy, Everyone Would Do It! Real Estate seems so simple; all you do is buy low and sell high, right?Wrong!!!Well, what about buy and hold investing or land lording? That’s simple, right? All you do is buy a property and sit on it for 10 years or so and magic happens, no?Wrong!!!Okay, but setting up a long term financial plan and retiring from your day job has to be easy, because all you do is buy one additional property a year for … [Read more...]
Welcome to the Big Leagues of Borrowing
September 20, 2012 By Leave a Comment
Welcome to the Big Leagues of Borrowing If any doubts remain that real estate investors and single family rentals have hit the big time, check out a bulletin issued last week by the Office of the Comptroller of the Currency, the agency that regulates all federally chartered banks and thrifts.Just to make sure that lenders get the message, the OCC served an official notice that the financing of single family rentals (which it calls Investor Owned Residential Rentals, or IORRs) is to be managed … [Read more...]
Is Buying a Foreclosure a Good Idea?
September 20, 2012 By Leave a Comment
Is buying a foreclosure a good idea? Maybe. Are you looking to buy a home to live in or are you an investor? If you're goal is to occupy the property as your primary residence, buying a foreclosure may be right for you. You can get more bang for your buck by purchasing a home that needs a little TLC. But if you are a real estate investor, buying a foreclosure may not be a good idea at all. Here are four important steps to follow when buying a foreclosure to live in as your home: Hire a … [Read more...]
Cash Reserves For The Long Term Real Estate Investor — Things Change
September 18, 2012 By Leave a Comment
Cash Reserves For The Long Term Real Estate Investor — Things Change As happens often in conversations with ongoing clients, I bring up the subject of cash reserves. It usually surfaces naturally when they make known their desire to explore the acquisition of more investment property. Since we all live in the universe of reality, we understand the status quo is but a measurement of the here and now. Assuming your financial status has remained static the last 1-5 years is a mistake we simply … [Read more...]
The Six Pillars of Real Estate Investing Success
September 16, 2012 By Leave a Comment
The Six Pillars of Real Estate Investing Success I’ve been thinking a lot about ”success” recently.Not only about success in real estate investing, but also success and just plain happiness in general.No doubt, there’s been a ton written about “the steps to success” in real estate investing. Reading what’s here on BiggerPockets is a tremendous way to learning so many of the skills needed to achieve success in real estate.There’s been a lot less written about the mindset or … [Read more...]
How Does The Recent QE3 FED Announcement Affect Mortgage Rates?
September 15, 2012 By Leave a Comment
How Does The Recent QE3 FED Announcement Affect Mortgage Rates? The Federal Reserve made an announcement on September 13, 2012 about their plans to support a stronger economic recovery. This was a much anticipated announcement, because of what the actions will do to mortgage rates and the overall economy in the future.The two major actions the FED plans on doing as part of this QE3 are:Purchase additional mortgage-backed securities at a pace of $40 billion per month.Extend the target range … [Read more...]
Choosing from the Real Estate Smorgasbord
September 13, 2012 By Leave a Comment
Choosing from the Real Estate Smorgasbord Real estate is like a smorgasbord! You can pick and choose the foods you’ll eat, keep returning for more helpings, and learn what areas you like and which areas you love. Like food, once this information is digested by your brain you will then make an educated business decision to continue practicing this method or leave it for later or never.As a real estate investor and mentor I speak with sellers, buyers, and other investors who know exactly what … [Read more...]
What’s That Underperforming Property REALLY Costing You?
September 12, 2012 By Leave a Comment
What’s That Underperforming Property REALLY Costing You? I was out of town last week and had an opportunity to meet a number of different investors on my trip. One conversation in particular stuck with me because I believe the scenario is common to a lot of people. Many investors that are in the market today for investment properties were the same ones that were buying properties either during the real estate frenzy of the mid-2000’s or on the front end of the recession (before prices had … [Read more...]
How To Earn Infinite Returns in Real Estate
September 12, 2012 By Leave a Comment
How To Earn Infinite Returns in Real Estate Earning infinite returns on your investment is one of the most exciting accomplishments of a great real estate invest. It doesn’t happen on every deal, but when it does, it’s awesome. Infinite returns are achieved when you no longer have any of your money invested in a property, but you still own it and the property is still generating income. You can earn infinite returns in real estate through two strategies. One you’ve probably … [Read more...]
Get a copy of my best selling book ($9.97 on Amazon.com) and an investor training video series FREE!
History Doesn’t Repeat Itself but it Does Frequently Rhyme
History Doesn’t Repeat Itself but it Does Frequently Rhyme To say we are in or entering a time of uncertainty is an understatement of massive proportions. However, you can either let the uncertainty cause paralysis or you can take action by reviewing historical times of great upheaval and apply the lessons learned.While I believe in staying current on all of the hot topics, I find it a lot more valuable to review history to see how things worked out in the past. Most importantly, I try … [Read more...]