Thursday, April 21, 2016

April 26th City Council Candidate Debate Hosted This Week At Corned Beef & Co. ~ Don’t Miss It!

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REI of Virginia will be hosting the Tuesday, April 26th, City Council Candidate Debate. The debate will take place at Corned Beef & Co., 107 S. Jefferson St., Downtown Roanoke City from 6:30 pm to roughly 8:00 pm.

This is one of the final debates before you vote for your favorite candidate. This is a public debate and everyone is welcome. The questions all pertain to business, jobs and real estate related issues. The media has said that the candidates are very similar and don’t have many differences. The debate questions were designed to draw out the differences so you can select the candidate that most agrees with your perception on how Roanoke should operate.

This year we could coin this election as the neighborhood support election. The candidates have, more than previous elections, made it crystal clear at several of the debates that they all whole heartedly support the neighborhoods. Time will tell if that comes to fruition. At this debate we’re going to find out if they show the same love for business.

A couple of the highlights that have happened so far in the election include all of the candidates stating that they supported Roanoke City being a Sanctuary City for illegal aliens but several rebutted. They also all took a firm stand against a Roanoke company called SafeSide Tactical who legally and constitutionally sells guns. We’re going to find out what other businesses they don’t support if there are any and what types of businesses they encourage in the city.

There are lots of great questions at this debate that will differentiate the candidates. The candidates are going to give you their ideas on neighborhood blight in some of the low income neighborhoods in the city and how to fix it. Do we focus on stronger punitive methods of forcing compliance with state codes or are there positive reinforcement solutions? Is the city taking part in corporate welfare or do we need to give handouts to get jobs?

Both businesses and the citizens have been burdened with higher tax rates over the past few years while times are still tough for most. Do our candidates have any ideas on what we can do to prevent future tax increases or do they have plans to repeat the actions of the past?

We’re looking at the future of Roanoke at this meeting and making plans to undo damage from the past. Our candidates have ideas on bringing more jobs to our community and they are going to give us some hints on how they plan to do it.

This is expected to be one of, if not the largest, debate of the election. Don’t miss it! Get there early so you can get a good spot. The room will hold roughly 150 people maximum. We will start at 6:30 pm sharp.

Be there or be square…

UPDATE:

THE POST ABOVE IS NO LONGER VALID.

I wrote some tough questions but they were mostly stricken from our meeting. Taken out with not a shred of conversation with the officers prior to doing so. The new questions were written up and sent right out with no discussion and an email to me stating they have been changed.

I personally feel that each of the candidates are strong enough to have a real debate with hard questions. They are not afraid to answer real questions. The only ones who may be are the two incumbents as some of the questions bring up questionable history of Roanoke that they were involved with. Ohh well, you make your bed you should have to lay in it. And I’m sure the media would be very curious as to why they didn’t come if they refused to do so especially considering there are questions that they should be answering.

The public wants a real debate. All over Facebook and comments to articles in the paper people are saying so. The candidates also want a real debate. I have been personally told by 3 of them that they want a real debate. And more evidence of this is John Garland actually shared the article I wrote above on his Facebook. He is clearly not afraid of answering difficult questions about how he feels on any issue. Even the Roanoke Times was complaining about the lack of questions that demonstrate the differences in the candidates. Which is as a result of having a bunch of forums instead of debates. The Williamson Rd Business Association even had rules on the candidates such as not allowing them to talk about what has happened in the past or specifically target another candidate in the questioning. Bad, bad, bad!

I created that real debate that would have forced the candidates to show their true colors. To show who they really are and how they will treat business. To demonstrate if they will only be supportive of the neighborhoods or they feel that business plays a very important roll in the health of a city. Unfortunately my questions were largely destroyed. Here I will post my initial debate questions and following will be the new supposed improved forum question.

BTW, I’m not saying that my questions couldn’t have been slightly tapered back even though they probably didn’t need to be at all. I actually encouraged that. But radically changed to weak forum questions that prevent a real debate without a shred of discussion prior to sending them to the candidates. Absolutely not… That was unacceptable!
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My Debate Questions:

1. This election, more than others, there has been a very strong emphasis on support for the neighborhoods. It seems that there has been a lack of the same enthusiastic focus for specific ideas the candidates have to encourage the growth of business. All of the candidates at the Park Dance Club debate came out against the business SafeSide Tactical who stated they would eventually employ 50 people.

Question:
Are their any other types of businesses that you will stand against as a result of your beliefs and what types of businesses do you intend on encouraging?

APPARENTLY IT’S REAL BAD TO SHOW THAT THE CANDIDATES DO NOT SEEM TO BE SUPPORTING BUSINESS AND GET THEM TO TALK ABOUT IT TO GET COMMITMENTS FROM THEM THAT THEY WILL. IT’S ALSO APPARENTLY BAD TO GET THEM TO EXPLAIN IF THERE ARE ANY OTHER BUSINESSES, OTHER THAN A GUN SALES BUSINESS, THAT ARE CONSTITUTIONALLY PROTECTED, SELLING LEGAL PRODUCTS, THAT THEY WILL NOT SUPPORT. THIS QUESTION EVEN GIVES THEM AN OUT ASKING THEM TO EXPLAIN WHAT KINDS OF BUSINESSES THEY WILL BE SUPPORTING.

THE ROANOKE TIMES ASKED THAT SAME EXACT QUESTION I DID. BUT APPARENTLY I AM NOT ALLOWED TO ASK IT AND THE NEW REPLACEMENT QUESTION BELOW IS BETTER. AS IF THEY HAVEN’T ALREADY BEEN ASKED THAT AT EVERY SINGLE FORUM THEY HAVE DONE. THIS IS A DEBATE NOT A FORUM.

NEW QUESTION:
What are your short term goals for the City of Roanoke?
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2. The city has for a long time had a policy of selling tax payer owned buildings and land that often has hundreds of thousands to millions of dollars in value to select investors. Examples of this would be the sale of the YMCA building for 10 dollars of which REI of Virginia had an offer on for 50,000 and the Health Department building sale which was another 10 dollar building among many others.

Question:
Do you feel that it’s in the best interest of the tax payer, who is the real owner of the property, to advertise these properties for sale on the same scale that the city advertises a tax sale and sell it to the highest bidder? And does the local neighborhood have the right to decide what type of business is best suited in the building or on that land? If so, how will that process be enacted?

THE NEW QUESTION BELOW IS SIMILAR. THERE IS A REMOVAL OF SPECIFIC EXAMPLES AS IF THEY ALL MONITOR OUR INDUSTRY AND ALREADY KNOW. AND REMOVAL OF THE QUESTION IF THE NEIGHBORHOOD GROUPS SHOULD BE ABLE TO DICTATE WHAT TYPES OF BUSINESSES EXIST IN A COMMERCIALLY ZONED AREA. I GUESS I’M OK WITH THAT GONE.

NEW QUESTION:
The City has a long standing policy of selling tax payer owned buildings and land to select investors for $10.00. Do you feel this a good policy or should these properties be sold the same way the city advertises and sells tax sale properties, to the highest bidder?
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3. Businesses and the citizens of Roanoke have been burdened by several additional taxes recently such as the raised property taxes, higher meals tax and a brand new rain tax.

Question:
If you were elected to the city council do you feel like there is still room for additional taxation? Have you looked over the city budget to find any areas in particular that you feel we could make some cuts to avoid new taxation or reduce taxes to their original levels? Or do you see tax reduction as not being feasible with todays scope of government?
Second part of the question, How would you replace taxes when there are lost revenues from lower property values or other things such as the Norfolk Southern lawsuit where they are expected to win against the city on gravel being a surface that water will penetrate?
I GUESS WE WILL NEED TO SETTLE WITH THE NEW HIGHER LEVEL OF TAXES AND NOT BE CONCERNED ABOUT THEM GETTING BACK DOWN TO WHERE THEY WERE AS THAT QUESTION WAS REMOVED.

HE ALSO TOOK OUT THE RAIN TAX SPECIFICS WITH THE NORFOLK SOUTHERN QUESTION. IF NORFOLK SOUTHERN WINS THIS LAWSUIT AGAINST THE CITY THERE WILL BE A SIGNIFICANT AMOUNT OF GRAVEL DRIVEWAYS, ETC THAT WONT BE TAXED. IF THE CITY LETS NORFOLK OFF AND CONTINUES TO TAX EVERYONE ELSE I KNOW SEVERAL PEOPLE IN REI THAT WILL PUT DOWN THOUSANDS OF DOLLARS EACH TO SUE THE CITY FOR THE REST OF THE CITIZENS. IT WOULD HAVE BEEN NICE TO SEE FROM EACH CANDIDATE IN THIS SPECIFIC EXAMPLE IF THEY WERE PLANNING ON REPLACING IT WITH MORE TAXATION OR IF THEY WOULD MAKE BUDGET CUTS TO COVER THE LOSS.

NEW QUESTION:
Are you aware that this organization’s members own over 70% of the real estate in the City and are the largest real estate tax payer? In the past few years we have been burdened by several additional taxes such as an increased tax rate and rain tax. If you are elected to the City Council, do you feel there is still room for additional taxation? And have you looked at the city budget to find areas to make cuts and reduce taxes?
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4. Businesses fund the largest portion of the city budget, and are clearly important to the health of the city. It’s commonly discussed among business owners that the city seems to have an attitude of what they can do to prevent a company from doing business by putting continual road blocks in the way of progress rather than encouraging a company to grow their business. These pressures come from various departments including taxation, zoning, building inspections, code enforcement, fire marshals, etc. We have all heard fellow investors say they will never buy another property or open another business in the city as it is much easier to deal with the surrounding areas.

Question:
Do you have any ideas on what you feel will help create a more positive relationship between businesses / investors and the city? And do you feel the economic development department of the city is doing an adequate job at both growing the number of businesses and jobs in the city as well as talking to businesses to see how the city can better work with them to create a thriving environment that they will not want to leave?

REMOVAL OF ALL EXAMPLES SO CANDIDATES COULD REASONABLY THINK THAT THERE ALREADY IS A POSITIVE RELATIONSHIP BETWEEN THE CITY AND BUSINESS. NATURALLY SOMEONE WHO IS NOT IN BUSINESS WOULD THINK EVERYTHING IS A-OK. WHY IS THIS NEW QUESTION BELOW ASKED TWICE. ONCE HERE AND ONCE IN NUMBER 7? I DIDN’T ASK ANY QUESTION TWICE. WHAT ARE WE DOING THIS IS CRAZY…

NEW QUESTION:
What are your ideas that will help create a more positive relationship between business / investors / landlords and the city?
_________________________________________________________________________
5. Cities, counties and towns across the country have various plans in place to bring jobs to their town. It is of upmost importance to our organization that our city council candidates know and understand how to create an environment that brings jobs as a rising population will increase the value of property for everyone. Towns across the country have varied programs they have created to bring jobs. Camden Maine offers 3.5 acre lots to families for free who are willing to bring jobs to the region. Several towns have tax incentives to businesses that will relocate to their area.

Question:
Why do you feel the Roanoke area has had so many large job losses, what can be done to prevent companies from wanting to leave, and what ideas do you have to direct your city manager to implement that will lead to a net increase in jobs for the city?


CUT BACK SOME BUT NOT MUCH. HE TOOK OUT WHAT IDEAS THEY HAVE TO INCREASE JOBS DURING THEIR TERM AS IF THAT ISN’T IMPORTANT.

NEW QUESTION:
Why do you feel that the Roanoke area has had so many large job losses, i.e. Advance Auto, Norfolk Southern? And what can be done to prevent companies from wanting to leave?
_________________________________________________________________________
6. The Deschutes Brewery deal which seemed to come just in time includes a 3 million dollar contribution from the states Commonwealth Opportunity Fund and a host of other incentives that sweeten the deal. They were given a tax payer owned parcel of land worth roughly 2.75 million, a grant of about 140,000 from the cities Enterprise Zone Program and a performance based grant from the city through the Economic Development Authority of roughly 1.4 million and a couple other performance based grants that total $225,000. The city expects to spend another million to extend the Tinker Creek Greenway to their facility.

As of now we are looking at giving Deschutes Brewery roughly 7 and a half million dollars in trade for their production of a 85 million dollar brewing facility and 108 jobs for citizens of the area .

Question:
Do you see large donations of tax payer money like this to companies as corporate welfare or a necessary method of attracting jobs? And if this is necessary do you have plans that you will use to continually fund these deals. Or do you feel there are more cost effective ways of attracting large or small employers?

OK SO ANDY HIMSELF ASKED THIS QUESTION. I DID THE RESEARCH ON IT FOR HIM HE THOUGHT WE WERE PAYING 1 MILLION TO BRING THEM HERE AND THE REALITY IS MUCH MORE. MAYBE THE ANSWER IS CORPORATE WELFARE IS A GOOD WAY TO GET NEW BUSINESS TO ROANOKE. IF IT IS I HAVE NO PROBLEM WITH IT. NEW JOBS PERSONALLY BENEFITS ME AS MY PROPERTIES INCREASE IN VALUE.  THIS IS SOMETHING THAT SHOULD BE DISCUSSED. NOT HIDDEN FROM. MAYBE THERE ARE IDEAS TO BRING EMPLOYERS HERE AND PAY THEM NOTHING THROUGH GIVING MAJOR TAX BREAKS. I DON’T KNOW. ALL I KNOW IS IT IS IMPORTANT AND ASKING ANOTHER OF THE SAME QUESTIONS THEY ARE ASKED AT EVERY “FORUM” IS NOT NECESSARY AND NOT IMPORTANT AS THEIR ANSWER IS ALL OVER THE INTERNET ALREADY. I RESEARCHED THIS BEFORE I WROTE MY QUESTIONS. THE QUESTION CHANGER DIDN’T CHECK TO SEE IF THEY HAVE ALREADY BEEN ASKED.

NEW QUESTION:
How do you differentiate yourself from the other candidates?
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7. Some neighborhoods throughout the city have dilapidated housing. This is a result of a small minority of landlords as well as owner occupied properties which often consist of elderly or people living in poverty who don’t have money to fix up their house or SIMPLY DON’T CARE. 30 years ago the entire Roanoke City Code Enforcement department consisted of 4 hard working people. Today the department has ballooned to over 20 people but the neighborhood blight issue remains.

Question:
What do you feel will be the MOST EFFECTIVE method to get a landlord OR citizen to rehabilitate their property BEYOND the currant minimum state code to create an up and coming “this is the place to move to” type neighborhood? And do you feel that increased punitive measures such as fines are the best way to motivate people or some form of positive reinforcement and please give an example.

FORGET ABOUT THE PAST IN THE NEW QUESTION. I GUESS IT’S MEANINGLESS THAT THE DEPARTMENT HAS BALLOONED IN SIZE. THE NEW QUESTION ASKS THE SAME EXACT THING AS NEW QUESTION NUMBER 4 DOES. WHAT WOULD YOU DO TO IMPROVE RELATIONSHIPS? WHY TWICE? I THINK THAT IS AN EXTREMELY IMPORTANT QUESTION I WROTE AS MOST OF THE CITY ALREADY IS FIXED UP TO THE CURRANT MINIMUM CODE.

THE PROBLEM IS THE NEIGHBORHOOD GROUPS ALL WANT TO BE THE NEXT OLD SOUTHWEST. THEY WANT PEOPLE TO TAKE THE PROPERTIES AND TREAT THEM LIKE THEY LOVE THEM. TO PRETTY UP THE NEIGHBORHOOD AND MAKE PEOPLE WANT TO LIVE THERE. THIS REQUIRES TAKING THEM BEYOND CURRANT CODE.

SEVERAL OF THE NEIGHBORHOOD GROUPS WANT TO DO THIS THROUGH PUNITIVE METHODS AND EXTREME FINES TO LANDLORDS AND CITIZENS. THEY ALSO WANT TO PRESSURE OUR SENATOR AND HOUSE MEMBERS TO CHANGE LAWS TO MAKE THEM MORE RESTRICTIVE TO EVERYONE.  I THINK POSITIVE REINFORCEMENT METHODS ARE THE ONLY EFFECTIVE WAY TO GET PEOPLE TO FIX THEIR PROPERTY UP BEYOND CURRANT CODE. ANDY HOWEVER THINKS THIS QUESTION IS BEST OFF BEING LEFT OUT AND ASK THE SAME EXACT THING AS NEW QUESTION NUMBER 4. HE ALSO UNINTENTIONALLY IMPLIES IN HIS QUESTION THAT LANDLORDS ARE THE ONLY ONES WHO HAVE PROPERTIES THAT AREN’T FIXED UP AND THAT SIMPLY ISN’T TRUE. IT IS BAD TO EVEN GIVE THAT IMPRESSION TO PEOPLE.

NEW QUESTION:
There are many blighted areas in the City. Many individuals have stopped renovating these properties due to the extensive government bureaucracy in doing so. What would you do to improve relations with the landlords in the City and improve these neighborhoods?

Apparently there are some people in our group that think all of the candidates are so weak that none of them will come if they are asked tough questions. I honestly think they are strong enough to give a good reason why they believe something contrary to what others believe. There are plenty of people in Roanoke that will be on their side.

These candidates aren’t only here to talk to us. They are encouraged to say whatever they HONESTLY feel. ALL of the media was invited. There will be media there and they should be answering and talking to the public. Not to us. They should be telling the public what they think they want to hear to get themselves elected. Which is not necessarily what you or I want to hear.

These candidates are strong enough to be able to stand behind their beliefs. Treating them like weak timid little children is unacceptable. The DEBATE questions should be asked. Not the new forum questions along with the same questions they have been asked everywhere. And this NEVER should have happened without prior discussion.

OK IM DONE. YES I’M PISSED OFF ABOUT THIS AS YOU CAN TELL. AND I THINK RIGHTFULLY SO.  I WILL GET OVER IT AND WON'T BE MAD AT ANDY FOREVER EVEN THOUGH IT IS EXTREMELY IRRITATING.OVERALL HE IS A REAL GOOD GUY OTHER THAN THIS BIG SHOCKER OF A SURPRISE. I THINK HE DIDN'T THINK THIS THROUGH BEFORE CHANGING AND SENDING THOSE QUESTIONS. THERE SHOULD HAVE BEEN SOME DISCUSSION. WE WILL BE BEST OFF SWITCHING BACK. AT LEAST THATS WHAT EVERYONE I HAVE SHOWN IT TO HAS SAID. AND I'LL BET THE CANDIDATES AGREE AS I DON'T THINK THEY ARE WEAKLINGS. AND THOSE THAT ARE I WANT TO KNOW.








Mayor Democrats: Martin Jeffrey Write In or Sherman Lea

Republican City Council Write In: Jim Garrett

Independents:  Michelle Dykstra, John Garland, Dane Howard

City Council Democrats:  Anita Price, Freeda Cathart, Trish White-Boyd

Monday, April 18, 2016

Landlord and Flipper Asset Protection Via Proper Insurance

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There are a couple ways to protect your assets. One way is by forming LLC’s and or Trusts. Another is with Insurance. A combination of both provides your best possible protection.

This week at REI of Virginia our special guest speaker will be REI sponsor, Tripp Godsey of Farmers Insurance.

Tripp is going to head an in depth, educational conversation, on how to adequately protect your assets with insurance. What type of insurance is best for a flip? How much coverage do you need for your rentals? Is there a certain dollar amount of liability coverage that you should carry? Do you top that liability off with a 1 to 3 million dollar umbrella policy? How much coverage is enough to protect you from most lawsuits? Should you have an umbrella that covers personal liability or business liability or both?

Lots of questions…

We will also have a discussion about our local issues. Roanoke city has a lot of inexpensive massive homes. What’s the best way to insure them? You may have only paid 40K or less for the house. It’s tax assessed value may be 60K. Surely it wouldn’t be cost effective to insure one of these 3,500 square foot houses with full rebuild value.

Your objective in a total loss of one of these houses would probably be to replace it with another rather than rebuild it. You would also need some money to remove the burnt remains and get the lot back to grass to make the code enforcement department happy. That will cost you roughly 10K. If you bought full rebuild value insurance on a property of that scale your insurance premium would be though the roof and your rent wouldn’t justify the cost.

When dealing with a reputable company like Farmers or their subsidiary Foremost, how will Actual Cash Value insurance be handled? In the case of a total loss will you likely walk away with the full amount you have it insured for or only a portion of it?

More questions…

On your rentals, if you require your tenant to carry renters insurance or pet insurance to cover their dog, should you as the landlord also require them to add you as an additional insured? And if you do that and they end up making a claim, will that claim attach to your social security number or tax ID number and make your insurance premiums go up?

Lots of insurance questions this week guys and gals. Come on out as it’s going to be a highly educational meeting.

We’ll see you there!

Mr. Landlord 2016 Annual National Landlord Convention

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REI Members,

I would like to invite you to Mr. Landlord’s 2016 National Landlord Convention. This year it will be held in St. Louis Missouri along the Mississippi River.

Last year 6 of our REI of Virginia members attended the convention. I was one of the attendees and I can tell you that I learned a lot. It was a tremendous benefit to my company. There were several things that I implemented in my business as a result of the seminar.

If you are interested in going on this highly educational, tax deductible vacation, please send me an email and I’ll give you the details on our discounted rates. I can assure you that you will get your moneys worth of information as the seminar goes from morning to evening every day. We had a great time and went to some fantastic restaurants with landlords that we met every day after the seminar.

This is the Mr. Landlord announcement of the convention:
https://landlordconvention.wordpress.com/

This is a list of the speakers and their background information which describes what they will talk about.
https://landlordconvention.wordpress.com/instructors/

Tuesday, April 12, 2016

Do It Yourself Pest Control This Week at REI

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REI Members,

I’m pleased to announce that this week we will have special guest speaker Twoie Knox, owner of B&C Exterminating.

His father, REI member CB Knox, owned a very large regional pest control company called Browns Exterminating. Twoie has pest control in his blood and he knows this business like the back of his hand.

Twoie also knows us real estate investors like to get things done as cheap as possible. So he set up a Do It Yourself Pest Control concept he uses with REI members. A lot of pest control can be done yourself. And our friend Twoie will sell you the professional grade chemicals and tell you how to do it.

However, there are a few infestations from specific pests that are better off left to a professional and there are good reasons why that we will discuss.

Come on out to our meeting this Tuesday. Twoie is going to give us a run down on everything from roaches to termites to bed bugs. He’s going to tell us what to do on each. When you can buy his high grade chemicals and do it yourself and when you need to hire a professional.

Come on out and bring a friend with you. We’ll see you there!

Sunday, April 3, 2016

Colorado Passes Law Through House to Make Faking a Service Animal a Crime

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Colorado just passed a law through their house that will make it a crime for a person to fake that their pet is a service animal.

Since the service animals laws have passed, we have a widespread problem of people pulling service animal scams to get on over on hotels, landlords, etc. They do this to duck and dodge your insurance company requirements and avoid pet fees. If their Pit Bull service animal hurts someone than you are on the hook since your insurance company already made it clear that they don't cover certain breeds.  And if you don't rent to them you have some very serious discrimination charges you could face. Yes, that is even if you don't accept pets due to wanting to keep the apartment in good condition, you still have to rent to them.

The basis of our problem locally is people contacting their doctor to get them to write a fake prescription that they need a pet for emotional support.  If they have ever been diagnosed with stress like we all have they are a perfect candidate. The doctors are not understanding the ramifications of what they are doing. Initially it seems to them to be an innocent issue and in order to keep their customers happy they are writing away. Even writing prescriptions for service animals when the animal the person has has been through no sort of actual training to ensure it is qualified for the particular ailment.

Read more about what Colorado is doing here:
http://www.brushnewstribune.com/ci_29706768/bill-criminalize-fake-service-animals-passes-colorado-house



GREAT R.E.I. WHOLESALE INVESTMENT OPPORTUNITY

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GREAT R.E.I. WHOLESALE INVESTMENT OPPORTUNITY

This is a great wholesale R/E offering for prime commercial retail property on Main St. in Downtown Buchanan.
This historic property is available as four separate sections from 6000 sq. ft., or, as one 22,000* sq. ft. building.
Ideal location for Antique/Artisan Mall, Flea Market, Entertainment Business, or for any retail business.
Prices From range $149,900. For Single Buildings to $599,900. For all Buildings

See Complete Details at: www.glowarama.com

R.E.I. Wholesale Valuation Calculation:

Via  65% valuation method >> $987, 243.
[Based on Local Comps This Property Is 50%+ Below Value]

OR, Via  50X rental method >>>> $1,220,000.
[Based on an Antique/Artisan Mall Operation Rental Projections May Be $24,400. Per Month]

Actual Calculations Available Upon request

Owner Illness Forces Immediate Sale at Only $599,900.*
[Purchase includes Glow-A-Rama Blacklight Entertainment Complex FREE, and is the very best dollars per square foot investment value in S.W. Virginia]

R.E.I may purchase this entire property to resell on an individual building basis;
work with existing owner on structuring specific retail enterprises;
OR, participate in a unique concept of mixing entertainment venue activities with varied retail operations.
[The 74 year old owner has 40 years’ experience as an International Business Consultant and remains available to assist purchaser with enterprise development]

Note: Owner has a comprehensive development plan available if purchaser elects to create a much needed Antique/Artisan Mall business

Contact:
Kenneth A. Bray
540-591-9021
brayk@glowarama.com

Thursday, March 31, 2016

Greater Roanoke Real Estate Industry Predictions

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Real Estate Investors of Virginia has another awesome meeting lined up for you. Our special guest speaker will be REI member and President of the Roanoke Valley Association of Realtors, Donna Harris.

Donna is going to do a presentation on a 10 year analysis of real estate in the valley. We will look at past and present conditions to collectively make determinations on what we see for the future.

What’s happening in the real estate industry in Roanoke? Are we going up or are we going down? You can’t effectively manage your money unless you know what the future holds for you. Those who closely monitor the industry and determine what is going to happen before it happens become very wealthy over time.

Millionaires are made in times of boom and bust. At the same time those who aren’t watching often lose tremendous amounts of wealth.

When times are good and real estate is expected to rapidly incline in value, landlords stop buying. Properties get too expensive to buy. They no longer cash flow in these times. Smart investors switch to flipping properties during booms. If the real estate industry is stagnant or going down the strategy is to buy and hold which is, for those who don’t know, to be a landlord.

Since the big crash in 2008, landlording has been absolutely incredible. Locally in Roanoke we have not had a good flipping economy. Some towns in the country have but that has primarily happened in tourist areas like Las Vegas or other areas that had very strong job growth such as Houston Texas or the oil gas areas of North Dakota.

Locally rents have been going up for a long time now and we’ve had a great ride. How much longer can it go? We are on the edge of another big recession right now. One that is expected by several economists to be a Great Depression type event. A recession happens on average every 6-8 years. We’re past that so it’s due.

Lets put our minds together this week and lay out a good guesstimation of where we are headed so we can have our money invested in the right areas.

Come on down, don’t miss this meeting. All are welcome. Fill your mind with good productive information that will personally benefit you. Come socialize with a group of friendly like minded people every Tuesday evening at Real Estate Investors of Virginia, 6:30 pm to 8:00 pm at Corned Beef & Co, Downtown Roanoke City.

Monday, March 28, 2016

Honorary Member of REI of Virginia Passed Away

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Dear REI of Virginia members,

I’m sorry to break the bad news but I have been getting reports from people that our honorary member, landlord Frank Roupas has passed away. There is no official report but I have heard through the grapevine that Oakeys has him. I’ve checked their website but they don’t have an obituary listed. From what I understand he wanted to keep things low profile. We love Frank and it’s important that other landlords know.  I hope these are rumors that are wrong but I suspect they aren’t.

I have had several members tell me over the past couple months that Frank hasn’t been available for their calls. I then noticed that I didn’t see him sitting at zoning court. Frank loved to go to watch zoning court. It was one of the entertaining things that he never missed.

I called Frank a week ago. Left him voicemails on both of his phones saying I was concerned about his health as people are saying he isn’t answering the phone. Frank called me back and left a voicemail the next day that he has been dealing with a terrible back injury but he is now getting a lot better, that he’s feeling good, and will be back on his feet soon. It appears that Frank didn’t make it back on his feet.

I know a lot of you knew Frank. Everyone in the real estate industry ends up eventually meeting Frank. He was a real character. Frank had some great stories. And he told them with so much enthusiasm.

I sure hope these rumors aren’t true, but I’m pretty sure they are. The Roanoke Times is researching the coroner records via a freedom of information act as you read this. Sammy Oakey of Oakey’s Funeral home put out a tweet this past Friday that a “Well known citizen died overnight. His Pre-need instructions were to NOT put any notice in the newspaper and NOT tell anyone.”

I have called Frank several times over the last couple of days. On all of his phone numbers. Frank always calls me back. Always.

My heart goes out to Frank. He is a well respected landlord in our industry. He’s going to be missed by many…

Thursday, March 24, 2016

We Have Money To Fund Your Real Estate Flips & Rentals

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Ladies and Gentlemen,

Wow… what a great meeting we had last week! We were a little worried about it as you never know on a new location how many will show up. It was a tremendous success. It’s been a long time since we were drawing 70 people to a weekly meeting. No real estate investment association in the state can do that. The big ones are lucky if they can get 50 to 60 at a monthly meeting. So congrats to Real Estate Investors of Virginia for that!

REI of Va is making sure that your deals are fully funded.

We’ve got another great meeting lined up for you. When the topic is about money we always pull in big crowds.

This week our special guest speaker will be a guy by the name of Jim Preuss. Jim is head of business development for Lima One Capital.

As you may know, there are a few ways to get funding for your real estate venture.

1. You can go to a regular bank such as the Bank of Botetourt. Banks expect that you have good credit. In return they will give you a loan with a very favorable interest rate.

2. The other way that you are limited to if you are having difficulties getting financing from the bank is to use a “hard money lender”. That is if you don’t already know a wealthy person who’s willing to be your personal private money bank.

We selected Lima One Capital to come talk to us because they have some very interesting packages. One thing is their rates are unbelievably low for a hard money lender. Typically you are looking at 12 to 15 percent interest with 5 points down on hard money. Lima One’s loans look more in the range of private money which is higher than a bank but quite a bit lower than normal hard money.

Lima One has a program called Fix 2 Rent where they will give you money to buy the deal and money to rehab it. Then once it’s finished they can roll it into a different loan they call the Rental 30.

They have you flippers and wholesalers covered as well. They have a FixNFlip program that gives you money to purchase and fix up a property. They have money for people who want to build a house on a lot they own. They have money for people who already own property and want to cash out and get some funds for another deal they find or something else. They even have money called transactional funding that wholesalers use to do double closings.

As with the last meeting, if you have plans…. cancel them. Make REI of Virginia every Tuesday as a meeting you will never miss. Your rest of your life revolves around wether you have an REI meeting or not.

The keys to unlocking success in your life require jumping in real estate investing with both feet. Surround yourself with other successful like minded people. Don’t let anyone tell you that you can’t do it. Your mind once a week directed towards bettering yourself will lead to your success. It has for me and I can promise you it will for you.

I have been excited about my career and life in general ever since I was able to see my path to success. That’s why you see me get wound up from time to time. I am super enthusiastic about what I do. I live and breathe real estate and have a lot of fun doing it. I consider myself lucky to know and be good friends with so many successful people.

Come on out this Tuesday to Corned Beef & Co, Downtown Roanoke City. The address is 107 S Jefferson St, Roanoke, VA 24011.  I suggest you leave early to make sure you get parking if you are planning on getting a free spot on the street. The parking garage called Car Park is only $2.50 on the roof top after 5pm.

Be there or be square!

Tuesday, March 15, 2016

Wealth Seminar: How to Comfortably Make A Million Dollars in Net Worth In 5 to 10 Years in the Real Estate Industry

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Where:

This will be the first meeting at our new trial location. We have outgrown our last location and will be moving to somewhere that will fit more people. Jersey Lilly’s was great to us. However they don’t have the room to fit our rapidly growing group. We will be meeting at Corned Beef and Co, Downtown Roanoke City. The address is 107 S Jefferson St, Roanoke, VA 24011.  I suggest you leave early to make sure you get parking if you are planning on getting a free spot on the street. I have been told that the parking garage called Car Park is only $2.50 on the roof top after 5pm.

When:
This meeting will be Tuesday March 22nd 2016. We meet every Tuesday evening. Our meetings start at 6:30pm and last until 8:00pm. If you are new to investing I always suggest getting there early and leaving late. We hang around and talk and these times are great to get to know other investors and get your questions answered.  We're all nice like minded people so no worries.

Who:
I am pleased to announce, the guest speaker at this meeting will be me. I am talking about a topic that will benefit both beginner as well as advanced level real estate investors. 

What Will You Learn?
  • Locally which is more profitable, flipping or landlording and why?
  • What are the most common causes in failure so you know what to do to stay away from them?
  • I will give you a roadmap, that if followed as stated, I can guarantee your success.
    Why “buying right” is the number 1 most important thing to do which gives you all of the exit strategies you need. 
  • Exactly how much do you pay for a property to guarantee a win?
  • National rules of thumb on how much cash flow a property should spin off on a monthly basis. 
  • Where is the break even point on property where you will make no cash flow but will still be able to pay off a bank note? It’s important to know and understand your limitations so you won’t be taken out by a bum deal you fall in love with. 
  • How much money do you need to have into a property to be able to retire from your job within 5 years and become a full time investor?
  • Various strategies used to get your start as a real estate investor depending on how much money you have to start with. We will discuss all starting points, with no money, with a little money and with a pocket full of money. 
  • How to jump right into real estate while you fix your credit. 
  • We will go through a cash flow analysis that you should do on each and every property you have so you aren’t flying by the seat of your pants. This is useful for beginners and experienced investors alike. I have used this formula on landlords businesses that are going under to help them identify which properties they have that are losers which are sucking down their company. Correctly identified you know which ones to sell to make the company profitable again. Once you understand this you will be able to diagnose the health of any real estate venture and will learn the skills to turn one that is failing back around into a profitable business. This knowledge allows you to take over failing ventures. 
  • The different places you find wholesale and below wholesale deals.
  • High pressure (that seem like low pressure) closing techniques that work. 
  • Why attending your local Real Estate Investors of Virginia meetings will get you on track and keep you going in the right direction towards a future that few people get to experience in their lifetimes. 
  • Taking it to the next level. Once you have your bearings, how to partner with me to move into the next stratosphere. 
  • If you can grasp the simple concepts and mathematical formulas Im going to teach you, you will be adequately prepared from this seminar to make any income you choose based on your desire to succeed. You can do this individually or with me as a business partner. I suggest you bring a note pad and pen as this class will be very informative.The average person only retains a small portion of what they hear and I’m not just giving out rabbit food here. You will be taught the meat and potatoes of the business. I will be giving you the keys to success. It will be up to you what you do with them. 
The first month for all new members is free. After that it's only $100 dollars for a year of real estate education. $100 that could turn you into a very wealthy individual if you listen and have some hustle in you. None of us who operate the group are paid. We are all volunteers. Dues money goes towards operating the group.

Come on out to our weekly shindig and have some educational fun with some great like minded individuals. Our meetings are always real laid back. Dress as you normally do. Jeans and a t-shirt is fine.

We'll see you there!

P.S. -  Click this link to sign up for our email list. Once you sign up you will be sent an email asking you to confirm. When confirmed you will get our emails every week telling you what the next weeks meeting topic is. If this link doesn't work for any reason we also have a link to it at the top right side under the pay to be a member link.
http://dm-mailinglist.com/subscribe?f=43d51516

Why Use A Process Server???

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Paul Yengst Areas Served
This meeting will be at Jersey Lilly's in Salem VA across from Lewis Gale Hospital.

This week our special guest speaker will be process server, Paul Yengst. We will be talking about the process of serving people that you are suing.

If you file a Warrant in Debt or an Unlawful Detainer against a tenant than you by law have to have them served with a notice of the upcoming court date. If you are in the courthouse and give the Clerk the court papers without having a process server written on them, than they will automatically give you the Sheriff to serve it.

Reasons NOT to have the Sheriffs office serve the papers but rather use a Process Server:

1. When papers are served through the sheriffs office it will be brought by a deputy. Who could be highly inexperienced.  Those who have a lot of papers served have found that they locally more often come back “unfound” when served by a deputy rather than a process server. When papers get returned to the court unfound the court case is dismissed if you can’t give a new address right away for it to be submitted to. The law does not require last known address as many people think regarding where papers are served. It should but it doesn’t. And if those papers aren’t served than you have no lawsuit.

2. It costs 12 dollars PER PERSON that you are suing for the deputy to serve them. All cases you should have at least 2 people. One would be the person who is living there. The other is “Any And All Other Occupants.” The reason for this is if the tenant moved in a friend or anyone else, when it comes time for the Writ of Possession to have the deputy meet you there to put the people out, if you are only kicking out that one person and there are other people living there not on the lease, the deputy will not put them out. This means you have to do it all over again and sue them to get them out. I have made this mistake once. Once you get bit by it you will never mess up again. I can assure you of that.

Regarding the price, Paul charges 11 dollars for NO MATTER HOW MANY PEOPLE are listed on the court papers. This is very helpful considering the games the deputies sometimes like to play and their refusal to put out anyone you don’t have listed on the eviction. Even though they are criminally trespassing as they aren’t listed on the lease.

We cleared this issue regarding trespassing up with the Police Chief years ago but it’s still practically impossible to get the police to follow the law and arrest anyone in the house not on the lease even though the Chief and City Attorney looked at the laws and agreed with REI’s position on the issue. Anyone in a property of yours that is not on the lease and not invited to stay there by you is a trespasser. The law is clear.

So, I’m going to bet that you don’t know EVERYTHING about properly filling out court papers and the process of serving them. Come on out it will be a fun meeting!

Check Out Paul's webpage here:
http://www.yengst.com/

Landlords Responsible For Tenants Bills & Renting To Illegals

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As always we try to keep our members up to date with the issues that pertain to our industry. Here are a couple interesting articles that were sent to me by members this week that you should look over.

1. The Water Company in Tennessee has been attacking landlords. Apparently there was some old language allowing them to do so. Just like Virginia. They are now fighting it in their General Assembly to prevent the towns from charging a disinterested third party landlord. They don’t think it’s fair to force a private company (landlord) to help the government entity (water company) by paying off debts of another. By the looks of the article they are pretty optimistic that the landlords are going to win.

http://www.timesfreepress.com/news/politics/state/story/2016/mar/14/state-bill-seeks-exclude-3rd-party-property-o/355087/

2. Virginia Landlord starts the eviction process to remove 15 residents that can’t produce a social security number for identification as they are illegally in the country. Legal Aid sues and appears to be digging deep as they are trying to use the premise that the landlord didn’t previously require the social security number rather than strictly use the argument that they have to accept another form of government ID.

https://www.washingtonpost.com/local/virginia-news/without-social-security-numbers-illegal-immigrants-face-eviction/2016/02/10/2fcd64c2-ca9d-11e5-a7b2-5a2f824b02c9_story.html

Monday, February 22, 2016

Tax Free Exchanges This Week At REI

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The last meeting we had Robert Young speak at he had a few other filler topics that he started out with. Those filler topics ended up being interesting conversation which resulted in us not getting into the details of tax free exchanges so we will be doing that this meeting.

Most of us who have been involved with real estate for a while have heard of the 1031 Exchange. But most investors I know haven’t taken advantage of it. Effectively using this tax strategy allows you to exchange one regular or vacation rental property for another rental property without having to pay capital gains at the time of the exchange.

House for house, equipment for equipment, truck for truck…. There are several different types of Like Kind Tax Free Exchanges other than the 1031 Exchange.

This week we’re going to have our good friend Robert Young who has done MANY of these tax free exchanges. Robert knows the ins and outs of these exchanges better than anyone I know.

Come on out and learn about this tax strategy that can be used to make a lot of money over the years due to being able to kick the can down the road on the date you have to end up paying these taxes.

Tuesday, February 16, 2016

Real Investors Know How To Protect Their Assets

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Hello Fellow Real Estate Entrepreneurs,

We will be having an enlightening meeting this week with special guest speaker, Mike Pendleton (in the photo on the left) of the company Edward Jones. Mike is coming out to our group to teach us the benefits of holding your property in a trust.

Expert investors know and understand how to protect their assets from dirty thieves who want to strip you of everything you have worked for which can include anyone from tenants to local, state and even the federal government. Our culture has changed for the bad and we currently live in a litigious society.  The good old days where you could trust people are long gone.

Here are some of the benefits of holding your assets in a trust that we will talk about with Mike if you ask the right questions.

1. Trusts allow you to maintain your privacy as your property will be listed online as being owned by the trust. If you have several trusts it prevents people from looking up to see how much you own to see if you are worth a good lawsuit or two while trying to strip you of your assets.

2. Protection from claims against you personally. The city likes to jump to suing a landlord at any opportunity they can. Often they won’t wait for long after sending you a notice before putting you in court. If your property is in a trust or an LLC than they have to take that trust or LLC to court. Not you. They will call you in to come to represent the trust or LLC if you are the registered agent or trustee of the trust. However any charges that there may be will go against the trust or LLC, not against you personally.

If they attack you personally as a result of the property being in your personal name, and you don’t immediately pay them, the State will suspend your drivers license. That only happens to people who own property in their name.

3. You are protected form liens. If a tenant or anyone else wants to sue for some reason pertaining to that asset, management of that asset, etc, they have to sue the trust or LLC itself that they were doing business with. If there are any liens or judgments against the property they are against the property itself. It does not transfer over to being against you personally. As long as you didn’t break the law. I’t also works the other way around. If you get liens against yourself for something, it can not transfer over to a lien on the property. UNLESS that property is in your name. In that case the lien on you will become a lien on the property.

4. There is also a future limitation to title claims. If down the road someone wants to sue who signed the warrantee deed on the property. If it was the trust or LLC that signed for the property, they will have to sue that trust or LLC. However lets say that that trust or LLC already resold the property and it has no assets in it’s name. Any lien on a trust or LLC that has no assets is a useless lien that will never be collected.

5. Prevention of HOA’s from going after you personally if you title the property in a trust or LLC. This limits them to the property as being the sole recourse for home owners association debts.

6. Trusts make contracts assignable.  HUDs and REO’s often have requirements that you can not assign your contract. If you buy it in a trust you can assign the beneficiary of that trust to the person you are selling the property to which gets around all kinds of seasoning issues as well as the prevention of wholesalers wholesaling property off the MLS.

7. Trusts can make non assumable loans, assumable. Investors I know will have the seller of a property put it in a trust. From what I understand the law requires banks to allow a person to put their property in a trust that’s owned by them for their own personal protection or probate planning purposes. Then I see they assign the beneficiary of that trust to the buyer.

These little weasely things aren’t something I have ever done as they are more often used by people with credit problems etc who are trying to purchase property. But they are little tricks I have been told over the years by high level hustlers. I personally know people that have millions of dollars worth of judgements against them and they continue to do business by using trusts.

8. Trusts are excellent for avoiding probate court when you or your family members die. There is no reason for probate to decide who owns what when one person passes away because they are already listed as beneficiaries of the trust. That has already been decided. And you can maintain full control of that trust for the rest of your life until you die. There are some tax benefits here as well that I’m sure that Mike will talk to us about.

This was just a small handful of the benefits of owning property in a trust or LLC.  That’s just what was off the top of my head. There are many benefits you get from Trusts that you don’t get from LLC’s and vice versa.

Come on out and get your Masters Degree in Real Estate Investing by signing up with REI.

Guys and gals. This is real educational entertainment that REI provides you. It isn’t easy putting on this weekly show. And the dues money we ask for is super cheap considering the value that you get. The value of your investing education. We also strive to not only make you money but save you money.

If you use REI as a network to connect with other investors like I do you will have super discounted wholesale houses whenever you need one, you will save thousands of dollars every year from tips and tricks that you will learn, and you will become wealthy through osmosis. If you surround yourself with successful people on a regular basis and you keep your mind on investing, in no time you will end up also becoming professionally successful. Trust me that’s the way it works. I can’t tell you how, I can just tell you it does. It happened that way with me and I have seen it happen that way with many people I have taught over the years.

REI is what you make of it. If you take the advice you get and implement it, you will become very wealthy.

No one in our group gets paid anything. We are all volunteers. And we do need your help in continuing to operate this group. It does cost money to keep it going and we are trying to save up some money for a nice little legal fund to help members out if needed, to use for a direct mail campaign to tell more landlords in our area about our group, to lobby in Richmond to make laws more investor and landlord friendly, and to hopefully one day make enough to be able to pay someone to operate the group as this group would dissolve immediately if we got tired of it and decided we didn’t feel like putting the free work in anymore.

So do us, and you, a favor. Click the link below and pay the yearly dues. It’s only 100 bucks. Thats not much to ask considering the value you get. It’s a lot cheaper than most REI groups across the country. And we do need it.

REI Dues Paypal Link

Tuesday, February 9, 2016

Property Management Skills That Make Life Easy

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Hi Everyone,

At this weeks meeting we will be having a round table discussion on rental qualifications facilitated by Amanda Miller. We will be discussing some of the most frequently asked questions of landlords such as…

* What does household income look like for an $800 rental?
* What if a prospective tenant has only been in their job for a month?
* What if they have bad credit?
* What if they have an unlawful detainer but it was 10 years ago?

This discussion will help you get different perspectives from other landlords by learning what criteria they consider important and why it works for them.

Good stuff people. There is no better way to make your life easier than picking the right tenants. It’s an extremely valuable tool. When done incorrectly, a bad tenant can make your life absolutely miserable. I have had my fair share of bad tenants and have learned from the school of hard knocks on this one. I am all ears when this topic is at hand. Just one little tip that works can mean the difference between this business being a pleasure or hell.

Come on out it’s going to be an information packed meeting.

See you there!

Tenant Tax Checks On The Way!

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Tenant Tax Checks are coming guys. And no, that doesn’t mean it’s a second Christmas for you. Smart landlords don’t wait for tenant tax checks to come. A great deal of tenants use that check to lure you to letting them stay longer for free. There are more that will get one over on you than will make right on their word.

They first will give you all kinds of excuses on why they aren’t getting it on time. Then finally why they didn’t get what they thought they would get. That is if you get that far. You will be lucky if they don’t just move out and completely hoodwink you.

It’s such a common scam. To use that tax return as first months rent and deposit on the next place while the rest of it buys toys for them. That’s a lot more fun than paying thousands off to their old tired landlord. 

So don’t be a fool. File your UD’s. Judges like you to work with your tenants. If you want to be lead along you can still do that. You can send a fax to the judge the night before court requesting a continuance. Make sure you have all of the case details so they know what you’re talking about and suggest the date you would like it continued to.

You can keep doing that until you dismiss it when they paid, or until you find out that they are lying and you then already will have the court date in place to put a quick end to it.

Yes, it is possible to put your tenant in court and still be nice. This is a business and people understand that. Your mortgage, insurance, taxes, etc aren’t going to pay themselves and you’re not one of those rich landlords that owns all of their property. The bank owns every single house you got. And you got to do what you got to do. However you would be more than willing to continue it as long as they show to you that they are serious about getting it repaid. And they are making honest efforts at doing so with substantial payments along the way. And I don’t want to hear any more of that garbage about you having to pay your light bill. I don’t care about your light bill. It’s crazy to me that you think that your light bill is more important than your shelter bill. LOL, sorry got off a tangent…. That’s all you have to tell them people. They will understand if you explain it right.

Some Bills You May Want To Watch

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So here are some bills that are out there that you may want to keep an eye on. There is a never ending attack against landlords in the Virginia General Assembly. Some laws get through while others get stopped. Don’t count on the bad ones getting stopped. You should contact your legislature to tell them which ones to vote for and which ones to vote against. Pretty easy to do. All it takes is a phone call and leave a voicemail or a message with their legislative aid on what you support and what you don’t want them to support. EASY. Pick up the phone!

When reading these bills, look at the italics. That is what they are trying to add. Any strike-throughs are what they are clearly trying to take out. These are bills that are in the process of trying to get passed right now this very minute.

1. This one is the first of several steps of attempting to make it so you will have to be licensed to be a landlord. Can you see why? Think about it.

http://leg1.state.va.us/cgi-bin/legp504.exe?161+ful+HB1011

2. This one allows Legal Aid and tenants to get you real good on Mold issues. Even if it didn’t exist when they moved in and they likely are the one that created the problem. You will pay dearly on this bill if it passes. Don’t be fooled by the good things they list with the bad. Things that you ALREADY have the right to do. That is nothing more than a diversionary tactic to try to get idiots to agree with the bill. You’re not an idiot. Click the full text to read it all if you wish.
http://leg1.state.va.us/cgi-bin/legp504.exe?161+sum+HB735

3. Authorizes the judge to terminate your rental agreement if the tenant files a tenants assertion. We have no need for additional laws against landlords. It’s already bad enough.

http://leg1.state.va.us/cgi-bin/legp504.exe?161+sum+HB1209

4. This one hammers the landlord even harder with higher damages the tenant can get from the landlord in legal aid battles. They already can get you for triple damages. Yes, you heard that right. 3 times the amount that they win. So if they win all of the rent that they ever paid you back, then triple damages is that times 3. That is the existing law. Do we need it higher than that? All they have to do is prove that you excluded them from the house as a result of an interruption of the utilities. Such as the water got cut off. Or you accidentally gave them the multifamily lease where you paid the water and this was a single family. But the lease said that you pay and you turned it off since it is a single family. There are all kinds of innocent reasons why there could be an interruption of service. Like you had a break in the yard you couldn’t find. Or you had to rewire your house for some reason or another. It could even be that they couldn’t live there because the mold was so bad or any reason including a reason that they caused. Thinking about making that call yet or are you still sitting on your hands?
http://leg1.state.va.us/cgi-bin/legp504.exe?161+sum+SB377

5. Ladies and gentlemen. Republican Mark Obenshain is trying to make it so you are responsible for an unlimited amount of months of tenant unpaid water bills. You are currently limited to paying up to 3 months of their bills. He is trying to make it with this bill so the Water Authority can turn on their water and never turn it back off for months to years and if they don’t pay you will personally be responsible for it all.

http://leg1.state.va.us/cgi-bin/legp504.exe?161+sum+SB542

How about now people? Are you still sitting on your butt or do you have your phone in your hand dialing your senator and delegate? Go to this website http://whosmy.virginiageneralassembly.gov/ to find out who your legislator is. Call your State Senator and your State Delegate and leave them a message. Please, do this for yourself and all other investors in town. I can guarantee you that most people who get this email will do nothing. Don’t be one of them. We need your help! You need your help!

So out of all of the bills, We have 1 good one. And that is from our friend, Senator Edwards. Please call him and leave a message of thanks. His number in the Capital is 804-698-7521 and here is 540-985-8690. This guy is really sticking his neck out for us. We owe him big time!

Here is Edwards bill. It requires the Water Authority to have a signed agreement with the landlord that we will pay the tenants delinquent bill. If they don’t, we don’t have to pay. And there is already a provision in the bill that says that the Water Authority can’t refuse to turn off the water that will work nicely with this added Edwards wording.

http://leg1.state.va.us/cgi-bin/legp504.exe?161+sum+SB547

Tuesday, February 2, 2016

Back To Basics This Week At REI

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This week we will have one of our favorite speakers, real estate expert, Ross Hart.

Ross will be at our meeting to talk about his 5 Day Pay or Quit, how to properly fill out an Unlawful Detainer and a fantastic letter he uses that is to be sent at the end of the lease to notify the resident of any damages, detailing what will be deducted from the security deposit.

Come on out. It will be a fun meeting. Ross, as always, is a highly entertaining speaker and has some great stories.

Tuesday, January 26, 2016

Tax Free Exchanges This Week At REI

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Most of us who have been involved with real estate for a while have heard of the 1031 Exchange. But most investors I know haven’t taken advantage of it. Effectively using this tax strategy allows you to exchange one regular or vacation rental property for another rental property without having to pay capital gains at the time of the exchange.

House for house, equipment for equipment, truck for truck…. There are several different types of Like Kind Tax Free Exchanges other than the 1031 Exchange.

This week we’re going to have our good friend Robert Young who has done MANY of these tax free exchanges. Robert knows the ins and outs of these exchanges better than anyone I know.

Come on out and learn about this tax strategy that can be used to make a lot of money over the years due to being able to kick the can down the road on the date you have to end up paying these taxes.

Monday, January 25, 2016

Who Shovels Snow? Tenant or Landlord

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In Roanoke City who is responsible for shoveling snow? The tenant or the landlord? It is the responsibility of the tenant. Sure you can do it if you want to. But by Roanoke City code it is the occupant of the properties responsibility to clear the sidewalks. If the house is vacant than it's the responsibility of the owner of the property.

Here is the specific code section.


Sec. 30-16. - Removal of snow, ice, sleet and mud from sidewalks.
(a)
It shall be the duty of the occupant of every building, house or lot which has a sidewalk or footway of brick, stone, wood, concrete or other permanent material adjoining or touching upon the same, either in the front, in the rear or on either side, to have all snow removed from such sidewalk or footway within three (3) hours after the same shall have ceased falling, unless such snow shall have fallen during the night, in which case it shall be removed by 9:00 the next morning. The same requirements shall exist with respect to ice, sleet or mud on the sidewalks or footways, except that the same, when it cannot be removed without injury to the sidewalk, shall be covered, within the same period of time, with sawdust, ashes or other material which will render it safe for travel. When there is no tenement on such lot or any occupant of any tenement thereon, it shall be the duty of the owner of the lot or tenement to have the snow removed, or the ice removed or covered, or the mud cleaned off from his sidewalk or footway, as above required of occupants of houses.
(b)
Each six (6) hours that snow, ice, sleet or mud is allowed to remain in violation of this section shall be considered as a separate offense.
(c)
In case there is no occupant of the premises, and the owner or agent cannot be found, the city manager may cause the sidewalk to be cleaned or covered, at the expense of the owner, with a penalty of twenty (20) percent added.
(Code 1956, Tit. XVII, Ch. 2, § 7)
State Law reference— Authority for above section, Code of Virginia, § 15.1-867.

Sunday, January 24, 2016

Interest Owed On Security Deposits

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Federal Reserve Board Discount Rate

Security Deposits gain interest if they are held by the landlord for 13 or more months. If a tenant is in your house for 12 months and you give their security deposit back before the 13th month you owe no interest. The law is that you give interest based on 1 Percentage Point Below the rate it was in January of that calendar year. The rate you go by is the Federal Reserve Board Discount Rate.

(January of the calendar year)

2003 - 2.25      Landlord owes 1.25%

2004 - 2.25      Landlord owes 1.25%

2005 - 2.25      Landlord owes 1.25%

2006 - 5.5        Landlord owes 4.5%

2007 - 6.25      Landlord owes 5.25%

2008 - 4.0        Landlord owes 3.0%

2009 - .5          Landlord owes 0%

2010 - .5          Landlord owes 0%

2011 - .75         Landlord owes 0%

2012 - .75         Landlord owes 0%

2013 - .75         Landlord owes 0%

2014 - .75         Landlord owes 0%

2015 - .75         Landlord owes 0%

2016 - 1.0         Landlord owes 0%

Sunday, January 17, 2016

Renting To Ex-Offenders Recently Released From Prison At REI This Week

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Ladies and Gentlemen,

This week we have an interesting topic for consideration. Our guest speaker will be Katherine King of TAP. TAP has a program where they help ex-offenders get permanent housing. When they get out of prison they go to a halfway house called the Dorcus Home. During that time, in order to be released from the halfway house they are required to obtain full-time employment and secure a lease on a house or apartment.

If they do not complete those tasks they are sent back to wherever they obtained their charges and run the risk of homelessness, unemployment and falling back into their criminal patterns.

TAP’s program, Training to Work, assists ex-offenders in their reentry back into society as productive citizens through the use of job skills training, education, employment, life skills training and more.

TAP will be coming to our meeting to teach us about what they do for these ex-offenders, show us the benefits to renting to them, and to determine what our individual criteria are for a tenants criminal history.

There are no sex offenders in their program.

So for this meeting there are some questions you should challenge yourself with.

*  If a person committed a crime 10 years ago and has spent the last 9 years paying for that crime they committed, should they be able to get another chance at becoming a productive citizen?

*  Are people capable of changing when given the opportunity to do so?

*  If you are considering a multifamily house to try out with this program, should the house be all ex-offenders? Are you putting your other tenants at risk by renting to ex-offenders?

*  If you have a policy against renting to those who have criminal charges, are there certain charges such as marijuana or white collar crimes that you aren’t as concerned with and would consider as a resident?

My personal policy for my low income properties falls along the lines if they have had an eviction before or not. I have found if someone has had an eviction than the chances are significantly higher that I will be evicting them within a few months. 

I also personally don’t like renting to people that have violent crimes. I don’t like the idea of having to fight and hurt someone in order to defend myself if I have to put them out due to non payment of rent. I have had a few over the years who have thrown their shirt off and wanted to fight when I had to file an unlawful detainer.

I also don’t like crimes with the word “public” in it as they seem to cause lots of drama on the way out. These are crimes with names like “using profanity over the public airwaves” whatever that is, “public drunkenness”, disorderly conduct, etc.

One question I would have for TAP is if they have some sort of program that would make us feel secure about renting to these ex-convicts. A program that would pay their rent if they lose their very new job. Something where there would be some benefits that could outweigh the potential downfalls.

Come on out to our weekly show. This will be an entertaining meeting on an interesting subject. Should people have another chance? Should they be allowed to get past their crime they already paid for? I think they should but I can also understand why someone would not want to do business with them.

See you there!

P.S. - Again I have to remind everyone about dues. It’s real easy to click the link at the top right of this page now and get it paid for this year. This isn’t money going into anyone's pocket. We are all volunteers. If you don’t have it right now you can still come though. We’re not going to put you out. We just want everyone to know it’s that time of year. And we need to work towards getting that squared away for this year. It’s pretty darn cheap. $100. We are lower than most of the REI groups in the country. Mainly because we aren’t paying anyone to operate the group. So, please… go ahead and click the link below and get this years dues paid.

BTW, those of you who haven’t signed up yet, I just put out a great deal. 7 wholesale units in one deal. All 7 units for $150K. That little business brings in $46,000 per year. If the rents were where they should be it would bring in 50K a year. Nice little income.

That deal won’t go out to everyone else until the premium members have had a chance to look it over. And it only will if the premium members don’t take it. There are some nice benefits of being a premium member. And we’re working on several others. Please… sign up in the top right corner of this website now!

Tuesday, January 12, 2016

REI Dues

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Click this text link to pay REI dues via PayPal.

This week at REI we have no guest speaker. This will be a moderated group discussion. These are often some of the best meetings. We will talk about various subjects.

I’m not going to get into thinking about various topics at this time because I just spent about 2 hours figuring out how to put a Paypal link on our website and in this email for annual dues.

I figure I’ll just let Andy wing it. LOL just kidding. I will help him wing it.

One of the pieces to the puzzle that keeps our organization running is our dues. Which still isn’t enough to pay anyone anything to run our organization. As I have said before, we are all volunteers. No one gets paid anything as of now. We have been trying to save up some money for a legal fund for our members in case we have any big cases we need to use it on.

We also are saving up to invest in some form of real estate. If we can get enough money together to do flips with it then we can create a machine that will continue, no matter who on the board continues with it. We will also create a machine where people within our group can get paid to physically do the flips. And newbies can learn from watching. A good win win for everyone.

My personal primary objective for REI would be that I would like to see REI get to a point where it can go on without me or any of us volunteers.

I would like to see REI at one point in time hopefully not in the too far future to be able to be self sustaining. To make enough money were I am replaceable. Where any of us are replaceable. And in order to be replaceable it has to be a paid position. There aren’t many people who want to invest the significant amount of time that it takes to put on this show we give to you every week without getting paid to do it. And it would take 1 full time paid person to completely run it effectively.

It would be nice to develop something that one day those of us who are volunteers can walk away from. Something that will keep on going and will continue educating and protecting investors in our area.

So to keep this short and sweet, as I have to get to some paid work, please click the link below if you haven’t paid this years dues yet. We lose about 3% to Paypal with this but we’re thinking making it easier will end up in getting more people to sign up this year. Our bet of reducing our dues last year to $100 worked out fine. We had a few more people sign up.

So we’re rolling the dice again on this Paypal link hoping it will work. Just like in Vegas. Only no free liquor.

Very soon we will be tightening down a little trying to get everyone to pay the yearly dues. You may get asked at the door if you aren’t on our list of who has paid. We have several people who come to the meetings who don’t. And that’s not fair to those who do. The only people we have set up to get in for free are new potential members. They get a month to see if they like it. No one else.

It’s $10 at the door if you aren’t going to sign up for premium membership. That’s our policy for those who just want to go to a meeting once in a great while. However we would prefer that you sign up as a premium member so you can help support the cause.

Please see the link below…

*** If you are paying with a business card or someone else's card that I don’t know, please be sure to leave your name and email address in the note to the seller box when purchasing. I need to know who paid so I can move you over to the 2016 Member list. Also if you are paying for 2 or more people please let me know the 2 or more you paid for.

Click this text link to pay REI dues via PayPal.

Monday, January 4, 2016

Predictions for 2016

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This article is long and will require you to put your thinking cap on. It’s real important information though. Especially if you’re using economics to make yourself rich. Or using it to prevent your future demise. Read it when you have a few minutes for some pretty intense mind twisting data that I’m going to lay out for you in the most simple way I can. 

We’re finally here. This is the year I have been waiting for. Or very close to it. It’s time to start making some good money again. Those who prepare themselves for big economic events walk away wealthy. Those who get surprised by them will walk away broke.

The perfect storm is brewing guys and gals and I’m ready for it. I’ve paid for several forecasts over the last couple of years from various economists that all claim to be the best. The one consistent thing that they say is we are on our way to a complete meltdown. Wether it happens at this upcoming recession or the next I’m not sure. Many of them believe it’s right around the corner.

So lets say that it holds of until the next recession. This one or the next one, there are several things that will likely happen during this recession that you can make a lot of money from. Which include another likely housing crisis. I made my first million as a result of our last 2008 housing crisis. And I plan to make several more on the next one. I was just dipping my toes in the water on the last go around. I now know exactly what to do during a housing crisis and I plan to repeat it to a much larger scale.

You may ask why do I say that the perfect storm is coming. Well, let me tell you what I’ve learned from the experts. We are currently converging on several different economic issues that are going to have a dramatic impact on the stock market. The upcoming stock market crash will in turn have an impact on the housing market as there will be many people who will lose all of their wealth in this next crash.

Cyclical patterns happen historically that can be used to predict the future. Roughly every 7 years a recession happens. In 2016 we will be in year 8 since our last recession so we are due for another any time now. An additional factor is 2016 will be a presidential election year. Presidential election years are always hard on the stock market.

To make matters worse, the year 2016 is the year where the first of the baby boomers turn 70. There will be 700,000 baby boomers turning 70 in 2016 and they will be required by law to start spending down their retirement and sell off a portion of their stock. This will continue to compound every year where an additional 700,000 baby boomers turn 70 and have to start selling some of their stock every year. This is expected to have a dramatic negative impact on the stock market.

The millennials were previously expected to hold up the housing market but as it turns out they aren’t buying houses like previous generations. As of now they prefer to rent. Millennials grew up during our housing crisis. Previous generations felt like owning your own house was one of the largest and best investments you would typically make in your lifetime. Millennials don’t think of owning your own house as being such a great investment since they saw their family or friends families lose property from the 2008 crash. It is expected that they will begin purchasing property about 10 years behind the norm.

This very minute you can see signs of a crisis coming. The stock market is having regular massive fluctuations up and down. 

The United States National Debt is now at almost 19 Trillion dollars. That equals over 157,000 worth of debt per taxpayer. It has very quickly reached a point where it is impossible to pay back. The rest of the world still has confidence in the United States. Once they lose confidence in our ability to repay our debt, the dollar will crash. And it will happen very quickly. 

Or currant president has created more debt than all of the previous presidents combined. Mark my words the United States will never pay back the National Debt. We are quickly coming to a point where we won’t even be able to pay the interest on the debt. We will start WWIII the day we tell China that they have been artificially propping up their currency and we don’t owe them that money. We will tell them that we wouldn’t even have that debt if it wasn’t for their currency manipulation. Which technically is true considering the fact that their currency manipulation helped strip the manufacturing jobs out of this country. And it has helped the remaining manufacturing companies who managed to hang on have extreme difficulties worldwide competing with China in the export of their products. Their social tariffs which put fees on our exports entering their country also made it difficult for us to compete since we weren’t playing on a level playing field.

The largest budget items that the US has are Medicare/Medicaid, Social Security, Income Security, Federal Pensions, Defense, and Net Interest on Debt. Expect to see major cuts in these areas at the first attempts of balancing the budget. These cuts are going to have to come from everywhere if they make an honest attempt to eliminate the national “debt". Just balancing the budget (balancing the “deficit”) will take some very serious cuts. These cuts if done correctly will lead to rioting in the streets as what happened in Greece when people got their entitlements taken away. We’re going to need cuts to that degree if we seriously are going to pull out of this mess that the politicians created.

Out of those major budget items, one of the first to be whittled away will be Medicare / Medicaid and Social Security. This Obamacare stuff ended up doing the exact opposite as to what was needed when it adds trillions to the national debt in this area. The government is expected to continue to grow the massive federal pension plans. They won’t personally want to get off the gravy train. If anyone is going to be hurt it’s not going to be them. Pension plans that’s crazy anyway. They need to be stopped. And switch to a 401K or something. What business in the country still has pension plans? Not many.

The government is also not expected to do much with national defense as far as more cuts go.  Defense represents roughly 6% of our national debt. Back in the days of Abe Lincoln it represented roughly 5%. And as you know, there really isn’t anything that they can do about the interest on the debt.

So when they start tinkering around with Medicare and Medicaid, do you think they are going to take away elderly health care or will they take it away from the handicapped? Hard choice? They could make one big very well needed cut in this area by simply making every person on disability, reprove their disability every year or two. It is possible for a person to get better. All landlords know the massive scale of disability fraud out there. Reproving disabilities would weed out many of the scammers while those who really need it will be able to keep it.

Social security is a real tough one to take away. Especially since that is your money that you invested. In doing so they will have to admit that the United States government ran the biggest Ponzi scheme in World history. They will have to admit that they spent all of the money and the elderly now will have to stick it out on the street because they won’t be sending their money they use for rent anymore. I don’t see that happening. But it is very possible that they admit what they did and give a cutoff point where they tell everyone if you are under this or that age you will get nothing. They will also develop another plan for those who got robbed from the government and they will make it seem to them that they have some great opportunities to get every penny back with this new method. Do you think any of the congressmen will go to prison for their Ponzi Scheme which essentially robbed every working man and woman in this country? Will any of them get prosecuted for the crime of Treason they committed which is punishable by death?

We are in a Government Bubble right now. A government bubble AND a Credit Bubble. All bubbles eventually pop. The question is NOT “will it happen” but rather, “when will it happen”.  And when it does happen will you need to be able to protect yourself with weapons and ammunition? Will you need to feed yourself with food you stored to get through a bad time and a run on the grocery store shelves? Will you need to power your house with a generator because the electrical grid gets shut down or no one can afford to pay for it due to a limited supply of cash? Does that generator need to be a solar generator due to a run on oil and or gasoline? Do you actually think that that can’t happen in the United States even though it happens all over the World? Did you know there is almost always several countries at any given point in time that are in a major crisis such as this?

Have a look at this link to visually comprehend the magnitude of this issue.

http://www.usdebtclock.org/

Currently the dollar is doing very well against other currencies. It is being propped up since it’s the worlds reserve currency. For those of you who don’t know what that means, let me give you an example. If Poland was going to do business with Australia they would exchange US Dollars, not their own currencies. There have been major efforts at ending it’s world reserve currency status by both China and Russia. They have made deals with each other and other countries that they will trade in a note currency. Not ours.

The rest of the world is in a recession right now. China and Russia are having financial issues as well as Europe. As other countries currency loses value, the US remains the one 1st world safe haven for the wealthy in those countries to put their money and hedge it against the losses that are happening where they live.

The next country predicted to fall after Europe will be Japan. It’s ratio of gross government debt to their entire Gross Domestic Product (GDP) is 240%. After Japan it will be our turn in the United States. When we crash we will cause a global depression.  Our ratio of government debt to GDP is roughly 104%.

This isn’t just an issue of government debt. Our entire economy revolves around people using credit to purchase products both for their personal lives and business lives. As I said before, the things that are propping up the United States are the dollar being the worlds reserve currency and the fact that other countries are currently doing much worse than we are that have to have somewhere safe to shelter their money.

Lets go over some of the projections from the leading cyclical economists.

The Kondratieff Wave is one of the most prominent of all economic theories. So much so that the Russian economist, Nikolai Kondratiev who saw this pattern was eventually executed because of it. Those Russians don’t like someone accurately predicting the future I guess. Especially when it’s bad.

The Kondratieff Wave essentially says that there is roughly a 60 year cycle of economics that happens over and over with ALL countries. It is thought of as having 4 distinct “seasons". Each season lasts several years. The United States is right now in the start of the “winter season” which lasts 20 years. Here is what happens with a countries economy during these seasons.

Winter: excess capacity worked off by massive debt repudiation, commodity deflation & economic depression. A “trough” war breaks psychology of doom. (we’re here right now. And will likely be moving into a depression phase at our next crash. We have been experiencing deflation recently. And our trough war I suspect will be WWIII or a major event with the global terrorists. The last time we were here was the 10 or so year phase of the Great Depression which ended in 1939 and the 10 years following it through WWII the trough war of those days.)
Spring phase: a new factor of production, good economic times after getting through the hard winter phase, rising inflation. (this is what we get to look forward to they suspect after 2020. We were here last in the booming economy of the 1950’s. The US was just officially becoming the Worlds strongest military power. A magnificent post war economy and the beginning of the Baby Boom. The GDP more than DOUBLED in the 50’s.)
Summer: hubristic “peak” war followed by societal doubts and double digit inflation. (Remember the Jimmy Carter days? And Vietnam in the 1970’s)
Autumn: the financial fix of (Carter) inflation leads to a credit boom which crates a false plateau of prosperity (Regan - Clinton) that ends in a speculative bubble (Bush & Obama) (we just got out of the Autumn phase a couple years ago and into the Winter phase. They say roughly 2013 was the end of Autumn.)

This is not the only economic cycle that suggests that we are headed towards an “economic depression".

Cyclical economist Harry Dent primarily focuses his theories on demographics. The fact that our population is aging rapidly. He expects the worst economic trends due to demographics to initially hit between 2014 and 2019.  And it will last until the year 2023. He feels it will be exceptionally hard because “the every day consumer never came out of the last recession”. Dent says that Japan is still in their “coma” from their recession 20 years ago because they never let their debt bubble deleverage (Pop). And the only way we will not follow in Japan’s footsteps is if we stop printing money. The Federal Reserve is artificially propping up our economy and creating the same issue with the 4.5 trillion dollars they have printed to add to the system. If they keep printing money we will go into a stagflation type scenario where the economy will stay extremely lackluster for many years to come. The only way to really fix the problem is for us to bottom out hard and heavy by deleveraging. We then will pick back up relatively quickly and get back into a good growth economy.

Regarding Dent’s theory pertaining to economic issues surrounding an aging population, how does that make you feel about the whole amnesty issue now? These are mostly young illegals coming into our country.

These cycles have been studied for years. There is even an English economist named William Stanley Jevons who found that the sunspots are on the same cycle as the Words economic cycles. Yes, that’s right. When the sun’s spots die down the World’s economy dies down. When they ramp up the economy ramps up. I’m sure this is coincidence and they are simply on the same cyclical pattern but who knows; a full moon is known to effect peoples personalities. And female friends or co workers menstrual cycles often end up coinciding with each other in roughly the same dates each month. Strange things happen that we can’t explain.

Here are several other leading cyclical economists and their predictions. Some of which we are already a little past due.

Charles Nenner Research (source)
Stocks should peak in mid-2013 and fall until about 2020. Similarly, bonds should peak in the summer of 2013 and fall thereafter for 20 years. He bases his conclusions entirely on cycle research. He expects the Dow to fall to around 5,000 by 2018 – 2020.



Kress Cycles (Clif Droke) (source)
The major 120 year cycle plus all minor cycles trend down into late 2014. The stock market should decline hard into late 2014.



Elliott Wave (Robert Prechter) (source)
He believes that the stock market has peaked and has entered a generational bear-market. He anticipates a crash low in the market around 2016 – 2017.



Market Energy Waves (source)
He sees a 36 year cycle in stock markets that is peaking in mid-2013 and will cycle down for 2013 – 2016. “… the controlling energy wave is scheduled to flip back to negative on July 19 of this year.” Equity markets should drop 25 – 50%.



Armstrong Economics (source)
His economic confidence model projects a peak in confidence in August 2013, a bottom in September 2014, and another peak in October 2015. The decline into January 2020 should be severe. He expects a world-wide crash and contraction in economies from 2015 – 2020. Watch the movie The Forecaster. Amazing guy this Martin Armstrong is. He got locked up by Goldman Sachs for many years for refusing to give a judge his economic forecast which they found to be unbelievably accurate.



Cycles per Charles Hugh Smith (source)
He discusses four long-term cycles that bottom in the 2010 – 2020 period. They are: Credit expansion/contraction cycle, Price inflation/wage cycle, Generational cycle, and Peak oil extraction cycle.


So my question to you is. Does history repeat itself? After reading this information, do you feel like we very well could be close to the perfect storm? Are we in a situation where we could have a potential major crisis? A crisis that is of the magnitude of a complete government and credit bubble meltdown? And what are you going to do about it? Are you prepared for what will happen? Do you even know what will happen? It is expected to be at minimum as worse as if not much worse than The Great Depression.

In future emails I will write a little bit about how things could look. What types of things are expected to happen. In my research I’m trying to determine what exactly will happen specifically to landlords and with tenants. Based on what happened in other countries who have crashed as a result of debt related issues.
 

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