Thursday, December 8, 2016

Free Insulation If Your Tenant Qualifies… This Week At REI

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All REI Members,

This week we have another fun meeting lined up that will help you learn how your tenants can get their rental nice and cozy for the winter by using the TAP Wetherization program. As you may know, most of these old houses in the city aren’t well insulated and this program does a lot to help keep their utility bills low so your tenants can afford their rent…

Our special guest speaker will be Rick Sheets with TAP. Rick will teach us the ins and outs of the program.

Great stuff guys. Don’t miss it!

New Smoke Free Policy The Government Is Pushing For That is for Public Housing And Supposed To Carry Over to Multifamily As Well. Is this right to control people to this degree? Should we institute a no picking your nose ban too?

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This proposed rule would require each public housing agency (PHA) administering public housing to implement a smoke-free policy. Specifically, this rule proposes that no later than 18 months from the effective date of the final rule, each PHA must implement a policy prohibiting lit tobacco products in all living units, indoor common areas in public housing, and in PHA administrative office buildings (in brief, a smoke-free policy for all public housing indoor areas). The smoke-free policy must also extend to all outdoor areas up to 25 feet from the housing and administrative office buildings. HUD proposes implementation of smoke-free public housing to improve indoor air quality in the housing, benefit the health of public housing residents and PHA staff, reduce the risk of catastrophic fires, and lower overall maintenance costs.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/healthy_homes/smokefree

Wednesday, December 7, 2016

TAKEN WITH RESERVATION… AKA I’ll still take you to court unless it’s all paid.

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Lets get right to it without any fluff. By law you are supposed to give a tenant a taken with reservation letter or receipt within 5 days of any payment you accept that is not a full payment of what is owed. Yes that is a MAJOR pain in the you know what as some tenants like to make several payments of 150 here and 200 there. Each and every payment made has to have a letter or written receipt saying “taken with reservation” on it.

However now with the new law we are allowed to notify the resident that all future payments will be taken with reservation in our pay or quit notices eliminating that burdensome task. You may need a copy of this law with you though as this is not something that Roanoke landlords have taken advantage of therefore it may be something that the judges are unaware of.

Here’s the relevant section of the Virginia Residential Landlord Tenant Act. Pay attention to the words written termination notice which is a 5 day pay or quit notice:

§ 55-248.34:1. Landlord's acceptance of rent with reservation.
A. Provided the landlord has given written notice to the tenant that the rent will be accepted with reservation, the landlord may accept full or partial payment of all rent and receive an order of possession from a court of competent jurisdiction pursuant to an unlawful detainer action filed under Chapter 13 (§ 8.01-374 et seq.) of Title 8.01 and proceed with eviction under § 55-248.38:2. Such notice shall be included in a written termination notice given by the landlord to the tenant in accordance with § 55- 248.31 or in a separate written notice given by the landlord to the tenant within five business days of receipt of the rent. Unless the landlord has given such notice in a termination notice in accordance with § 55-248.31, the landlord shall continue to give a separate written notice to the tenant within five business days of receipt of the rent that the landlord continues to accept the rent with reservation in accordance with this section until such time as the violation alleged in the termination notice has been remedied or the matter has been adjudicated in a court of competent jurisdiction. If the dwelling unit is a public housing unit or other housing unit subject to regulation by the Department of Housing and Urban Development, the landlord shall be deemed to have accepted rent with reservation pursuant to this subsection if the landlord gives the tenant the written notice required herein for the portion of the rent paid by the tenant. 

Your 5 Day Notice Should Include Something Along These Lines:  
Any and all payments made towards rent and all other fees and costs, will be taken with reservation, and will not constitute a waiver of the landlord’s right to evict you from the dwelling unit.

You must notify them also that this will not constitute a waiver of your rights to evict them as there is another code section below that includes that, as required in a written notice, from the point where you have already been granted possession and are in the process of waiting for the deputy to show up for an official eviction. 

B. Subsequent to the entry of an order of possession by a court of competent jurisdiction but prior to eviction pursuant to § 55-248.38:2, the landlord may accept all amounts owed to the landlord by the tenant, including full payment of any money judgment, award of attorney fees and court costs, and all subsequent rents that may be paid prior to eviction, and proceed with eviction provided that the landlord has given the tenant written notice that any such payment would be accepted with reservation and would not constitute a waiver of the landlord's right to evict the tenant from the dwelling unit. However, if a landlord enters into a new written rental agreement with the tenant prior to eviction, an order of possession obtained prior to the entry of such new rental agreement is not enforceable. Such notice shall be given in a separate written notice given by the landlord within five business days of receipt of payment of such money judgment, attorney fees and court costs, and all subsequent rents that may be paid prior to eviction. If the dwelling unit is a public housing unit or other housing unit subject to regulation by the Department of Housing and Urban Development, the landlord shall be deemed to have accepted rent with reservation pursuant to this subsection if the landlord gives the tenant the written notice required herein for the portion of the rent paid by the tenant. Writs of possession in cases of unlawful entry and detainer are otherwise subject to § 8.01-471.

Monday, December 5, 2016

Paying Taxes This Year? This Week We Discuss How To Offset That Income To Reduce Your Tax Burden…

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Do you have taxable income from Rental Property that you will have to pay taxes on this year? If so, come to our meeting this Tuesday to hear about how you can offset that income with an income producing asset.

Yes, you read that right.  Do I have your attention now?  How about an 8% tax free monthly cash flow in addition!  Our Strategic Wealth partner, J. Andy Ingram, is bringing us another unique strategy to help you keep more of your income and help you produce more of it with value added tax benefits. 

Andy will be bringing in the VP of San Francisco based ATEL Capital Group, Brian Sumner.  We will be discussing how you can uniquely re-position rental income into another real income producing asset that offers tax advantaged cash flows, passive income offsets and ownership of an investment that is NOT correlated to traditional equities markets.  This unique strategy also provides inflation and interest rate hedging capabilities with a focus of Principal Protection. 

This is what REI of Virginia is all about. Teaching you how to both make and save money in our industry. How to operate your business efficiently with the least amount of headaches.

Don’t miss this meeting guys and gals.

Also, please note that there is only 2.5 weeks left to get into the Industrial Property trust that was presented last week before it closes.

Monday, November 28, 2016

When to Buy and When to Sell - 5 Major “food groups” of the Real Estate Cycle… This week at REI.

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This week at REI we will have our friend and wealth management advisor, Andy Ingram, back with the group to talk in detail about a subject that garnered a lot of interest last time he was with us.

As always, a common interest of any investor is to know when to buy and when to sell. Andy and Jason Roland of Dividend Capital, a company dedicated to building value through the power of Real Estate will look at and evaluate the Real Estate Industry’s Market Cycles and where each of the 5 major “food groups” of Real Estate fall on the cycle. Extensive research by Dr. Glen Mueller of Dividend Capital and adjunct professor at Harvard will be covered. They will discus the currant market cycle and look into the forecast model for 2Q2017.

Andy will also talk about a year end tax strategy outside of this public forum. He has a couple ideas that offset earned income and can potentially offset 100% of the investment into the strategies where you will get full value of the asset to diversify your portfolio!

Don’t miss this meeting guys. There is going to be a lot of great information…

See you there!

Monday, November 21, 2016

Top 10 Things In Real Estate You Do Not Learn From A Book

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Hi Everyone,

Got another great educational meeting coming your way this week at REI of Virginia.

The topic for this week will be the top 10 things in real estate that you do not learn from a book. Tips, tricks, secrets, lots of great info can come from a meeting like this.

Come on out and spend a little time every week with other like minded individuals. Regularly attending REI of Virginia meetings keeps your mind on track… keeps you thinking about making more money… and with this continued focus on your wallet, you will automatically end up significantly increasing your wealth. Trust me it works as I did it.

On another note, Happy Thanksgiving to everyone! It’s the time for giving for many. Right now for me it’s the time for getting. Getting a new dog. I’ve been searching for another german shepherd since my last baby got cancer and died in June. I finally found what I was looking for. A female german shepherd with both parents coming from champion bloodlines.

The paternal bloodline has 3 time world champion Ballack Von Der Bruckneralle and several others. Then on the maternal side there is 2 times world champion Vegas du Haut Mansard.

My dogs name will be a lot more simple than that. Cali, that’s all.

So I’m pretty excited right now. Happy Thanksgiving to everyone.


Thursday, November 17, 2016

Virginia Beach residents fight back against City Council that thinks they have the right to control their liberty.

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Airbnb host says: 
“just another attempt by government to go deeper into my wallet under the guise of welfare and safety concerns.”
“Paying the city for permits for the privilege of having them come into my primary residence to inspect my smoke alarms and the lock on my liquor cabinet is beyond insulting and it’s an overreach of power,”
“For those of you who missed the message last Tuesday: Americans are voting for less government, not more.”

Original article here:
http://pilotonline.com/news/government/local/residents-to-virginia-beach-city-council-stay-out-of-how/article_e710c2f5-3dec-5145-9957-05ba6a0c8f0d.html

Monday, November 14, 2016

How To - Multifamily Investing This Week At REI of Virginia

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This week at REI of Virginia our guest speaker will be local author / investor Paul Moore. Paul wrote a couple real estate books including one on Smith Mountain Lake real estate and another on what he calls “The Perfect Investment”, multifamily investing. I just so happen to agree with Paul on multifamily being the perfect investment as most of my portfolio consists of apartments.

This is going to be an awesome meeting that I’ve been looking forward to. So often you read various guru books that are located in different states with different laws and what is suggested doesn’t work the same or at all here. You can’t beat advice from local real estate experts as what they teach is extremely relevant to our area.

Cancel any plans you have as you don’t want to miss this meeting.

We’ll see ya there!

Tuesday, November 1, 2016

Free Windows And Paint Throughout Your House!!!

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What??? Free windows and paint throughout your house? Potentially inside AND out. Yes, you did hear me correctly. And they may even paint the roof if it’s metal. And excavate around the outside of the house to get rid of bad dirt and replace it all with good mulch.

What I’m talking about is Lead Safe Roanoke. And there are no strings attached. If you have a qualifying tenant, the ONLY thing it will cost you for 10 to 20 thousand dollars of work will be 2 to 4 nights of a hotel room for your tenants. That’s it. You can’t beat that deal.

And you will be helping ensure that families stay safe from lead in your house from then on. It’s a big win win for everyone. This is your rare chance to get some of those tax dollars you have been paying back.

Come on out to REI of Virginia tonight and learn the details of the Lead Safe Roanoke program from our friends Marla and Ann. There are some new developments that may allow you to get a multifamily house done with even one qualifying resident.

See you there!

Saturday, October 15, 2016

Wealth Building & Keeping Strategies At REI of Virginia.

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Meeting 1: Using an IRA to Purchase Real Estate

A lot of people don’t realize that you can use a retirement account such as an IRA to purchase your own real estate investments. For years there was a rumor going around nationwide that you had to loan that money to someone else in order to make it a qualified real estate investment. That’s simply not true.

This week we are going to have an expert we will do a video conference with who will cover some of the details of this investment strategy.

I’ll be in Houston for the next couple weeks and am unsure as to wether or not I will be able to control my computer in the office with my iPad. Using a VNC to connect seems to work sometimes and not work at other times. So here is a little info on next weeks topic in case I can’t.

Meeting 2: End of Life Asset Protection & Wealth Transitioning

Our guest speaker will be our good friend Private Wealth Management specialist, Andy Ingram. Andy plans to bring his friend, Attorney Brandon Nester, with him. Brandon and his partner took over Judge Clemons practice when he received his judgeship. They will jointly present on end of life asset protection and wealth transitioning. I can’t think of anything more important to be up to date on than making sure that the government doesn’t get it’s greedy hands on your assets when you pass away.

A couple great meetings I wish I could be there for. Have fun!

Tuesday, October 11, 2016

The Most Important Things To Know About Being A Landlord

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This Tuesday’s meeting will be a group discussion on The Most Important Things To Know About Being A Landlord. If you are new to real estate, you do not want to miss this meeting!

We will go over the important factors relating to real estate investing:

* Knowing the rules of the game.
* Protecting your ASSets.
* Building your systems.
* Raising capital.
* And Much More!.

These are always great meetings for members, as we share valuable knowledge to each other; while picking up gold nuggets to use in our daily business.

See you there!

Monday, October 3, 2016

“They” think “Your” Constitution Sucks!

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Federal Lawsuit in California Alleging The City Is Forcing Rental Property Owners And Tenants Both To Volunteer For Searches And Inspections - Or Face Penalties - Just Like Roanoke City…

http://www.wnd.com/2016/07/city-surrender-4th-amendment-rights-or-else/#!

To update you on Virginia Law… The politicians put in place inspection warrants to keep it legal and prevent the government from breaking the 4th Amendment. The 4th Amendment does not allow any government official to search your property without your approval unless they have a warrant. That goes for all government officials, from the tax man to police to code enforcers.

Virginia Code:
36-105 C3 -  Virginia Maintenance Code
3. Inspection warrants. If the local building department receives a complaint that a violation of the Building Code exists that is an immediate and imminent threat to the health or safety of the owner, tenant, or occupants of any building or structure, or the owner, occupant, or tenant of any nearby building or structure, and the owner, occupant, OR tenant of the building or structure that is the subject of the complaint has refused to allow the local building official or his agent to have access to the subject building or structure, the local building official or his agent may make an affidavit under oath before a magistrate or a court of competent jurisdiction and request that the magistrate or court grant the local building official or his agent an inspection warrant to enable the building official or his agent to enter the subject building or structure for the purpose of determining whether violations of the Building Code exist. After issuing a warrant under this section, the magistrate or judge shall file the affidavit in the manner prescribed by § 19.2-54. After executing the warrant, the local building official or his agents shall return the warrant to the clerk of the circuit court of the city or county wherein the inspection was made. The local building official or his agent shall make a reasonable effort to obtain consent from the owner, occupant, or tenant of the subject building or structure prior to seeking the issuance of an inspection warrant under this section.


Legal Disclaimer Time: I’m not a lawyer.
2nd Legal Disclaimer: But I can read.


So it says if the building department gets a complaint (from a tenant) that a violation exists and is both an immediate and imminent threat to the health and safety of that tenant, and any of the three the owner or occupant or tenant doesn’t let them in, the code enforcement officer can go to the magistrate and get an inspection warrant.

I think we all know what the word immediate and imminent means. As well as it’s referring to any of the above, owner, occupant or tenant. I had to read it a few times, but after doing so, the intent of the law is clear.

So a code official is required by law to get an inspection warrant in the case of the owner, being one of the 3, giving a trespassing notice to the code enforcement official, or even verbally notifying them that the said owner does not want them there unless they are there.

Random Real Estate Investing Topics This Week At REI

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Hello everyone,

This week the special guest speaker will be YOU. Come with your questions and comments. We’re having an open discussion. The topic this week will be about whatever we end up talking about.

Newbies this is a good time to get your newbie questions answered so bring them with you. Wholesalers, want to know how to ramp up your wholesale business, let us know and we’ll give you ideas on what to do. Experienced investors that want to bounce ideas off other experienced investors, we’re ready for that too.

Come on out, there will be little nuggets of information for everyone. These are the kinds of meetings where you end up learning bits of information that make and save you money. I can think back on several that we’ve had that have made or saved me thousands of dollars over the years.

We’ll see you there!

Thursday, September 22, 2016

New Laws For Landlords 2016

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Hello Everyone,

MOLD:

In the State of Virginia we now have some much stronger laws related to mold which have already lead to attorneys statewide to jump on lawsuits against landlords. This mold law specifies that unless the tenant is at fault for the mold, you are required to pay all costs associated with the relocation of the resident as well as unlimited costs of mold remediation.

http://wavy.com/2016/09/15/local-attorney-has-advice-on-winning-mold-cases-in-court/

Everyones eyes are on mold these days. It’s the new lead of the day and you can expect some big federal level EPA action on it in 2017 unless we have a new president that will gut the agency and their overreach. As well as a congress that will defund them.

Most people don't know that the vast majority of mold is completely harmless. That is to everyone except the rare person who has the strange allergies such as the peanut allergy. Only a very rare couple varieties out of over 100,000 species of black mold are dangerous and they are not even commonly found in our area. It also doesn’t have to be black. Mycotoxins, the toxin in the rare mold, come in all colors. This whole mold thing is based on media sensationalism. Remember the bird flu or the swine flu that was going to be the end of you? This is a fear that will last a lot longer than those.

If someone has issues with mold they better not step foot outside as there are mold spores floating literally everywhere. You can’t get away from it outside. The attack on mold is on... and the focus is on you.

We now have a much higher chance of having mold cases where the tenant creates it and you have no mold addendum. Just because mold isn’t all that it’s made out to be doesn’t mean you need to protect yourself. I can assure you that legal aid will love to take a case where the evil rich greedy landlord was forcing their tenant to suffer with mold conditions they should have known about but didn’t do anything about since all rich people like you think about is your money. You will at that point have a very serious high dollar case where the tenant is suffering potentially fake health issues along with relocation fees, remediation costs, triple damages for bad faith, etc.  It’s real important to have a mold addendum with your lease. Attorney Ross Hart gave us his a few months ago. I would never rent a property without one. I've been using a mold addendum for years and so should you.






See below an important message from landlord tenant expert Attorney Ross Hart regarding mold.





Dallas -

The mold issue is getting worse, as you well know.

Attached is a case from the Virginia Beach area in which the landlord was hit for $350,000 after a 12 day jury trial in Federal Court.  On page 9 is a list of the criteria for a negligence claim.

I have no idea what insurance is available for owners in case a claim like this comes up.  I had one case where the insurance company denied liability or a duty to defend.  I would recommend that everyone talk to their agent about coverage, and make sure there's an 'umbrella' policy.

Making sure whether or not mold is present is shown on the move in inspection is also critical -- having the tenant confirm at move in that they did not see mold could be a factor in a future defense.  Remember, move in inspections MUST BY LAW have a checkbox for mold issues.

—ross



From Page 9:

To find for the plaintiff in a negligence per se claim in Virginia, the jury must find: 
[1] the tortfeasor [defendant] had a duty of care to the plaintiff,
[2] the standard of care for that duty was set by statute [the Virginia Building Code], 

[3] the statute was enacted for public health and safety reasons,
[4] the plaintiff was a member of the class protected by the statute,
[5] the tortfeasor engaged in acts that violated the standard of care set out in the statute, 

[6] the injury was of the sort intended to be covered by the statute, and
[7] the violation of the statute was a proximate cause of the injury.



RENTAL CERTIFICATE PROGRAM:

We also have a new law allowing the cities in Virginia to exempt anyone from the rental certificate program if they are a property manager or passed a satisfactory professional property management designation, or if they own a publicly traded entity that manages multifamily units and have no experience managing properties. It’s always nice when we have exceptions for the special people isn’t it guys? Sorry if you’re not in the club.

I herby declare REI of Virginia to be an educational property management training facility and membership of 1 year gets you the designation of being a professional property manager as you will be adequately trained within that period of time. All 2 year members get their masters degree in landlording. And you old school landlords get your doctorates. I give you all your honorary degrees now and you can use this email as verification. Ok good, now you’re in the club… You are all now hereby qualified to be excluded from the Roanoke City Rental Certificate Program. Congratulations to you!

 LEGISLATIVE STUDIES:

This year we also got legislation that requires several studies to be done. One being the impact of the water liens on landlords bottom line. As well as a study of the impact of tenant bankruptcy proceedings on landlords. And a study that they are doing based on a bill I was unaware of that was going to force multifamily landlords to be responsible for developing a recycling program. This study determines the feasibility of such a program.

Tuesday, September 20, 2016

New Laws For Virginia Landlords This Week at REI

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Hi REI members,

We have a great meeting lined up for this Tuesday. Our guest speaker will be attorney Darren Delafield. Darren will be talking to the group about new laws added to the Virginia Landlord Tenant Act this year.

I didn’t have the time to read over all of the new laws but I am aware of several as I do watch this stuff to a certain degree. We now have some much stronger laws related to mold which have already lead to attorneys statewide to jump on lawsuits against landlords. This mold law specifies that unless the tenant is at fault for the mold, you are required to pay all costs associated with the relocation of the resident as well as unlimited costs of mold remediation.
http://wavy.com/2016/09/15/local-attorney-has-advice-on-winning-mold-cases-in-court/

Everyones eyes are on mold these days. It’s the new lead of the day and you can expect some big federal level EPA action on it in 2017 unless we have a new president that will gut the agency and their overreach. As well as a congress that will defund them.

Most people don't know that the vast majority of mold is completely harmless. That is to everyone except the rare person who has the strange allergies such as the peanut allergy. Only a very rare couple varieties out of over 100,000 species of black mold are dangerous and they are not even commonly found in our area. It also doesn’t have to be black. Mycotoxins, the toxin in the rare mold, come in all colors. This whole mold thing is based on media sensationalism. Remember the bird flu or the swine flu that was going to be the end of you? This is a fear that will last a lot longer than those.

If someone has issues with mold they better not step foot outside as there are mold spores floating literally everywhere. You can’t get away from it outside. The attack on mold is on... and the focus is on you.

We now have a much higher chance of having mold cases where the tenant creates it and you have no mold addendum. Just because mold isn’t all that it’s made out to be doesn’t mean you need to protect yourself. I can assure you that legal aid will love to take a case where the evil rich greedy landlord was forcing their tenant to suffer with mold conditions they should have known about but didn’t do anything about since all rich people like you think about is your money. You will at that point have a very serious high dollar case where the tenant is suffering potentially fake health issues along with relocation fees, remediation costs, triple damages for bad faith, etc.  It’s real important to have a mold addendum with your lease. Attorney Ross Hart gave us his a few months ago. I would never rent a property without one. I've been using a mold addendum for years and so should you.

We also have a new law allowing the cities in Virginia to exempt anyone from the rental certificate program if they are a property manager or passed a satisfactory professional property management designation, or if they own a publicly traded entity that manages multifamily units and have no experience managing properties. It’s always nice when we have exceptions for the special people isn’t it guys? Sorry if you’re not in the club.

I herby declare REI of Virginia to be an educational property management training facility and membership of 1 year gets you the designation of being a professional property manager as you will be adequately trained within that period of time. All 2 year members get their masters degree in landlording. And you old school landlords get your doctorates. I give you all your honorary degrees now and you can use this email as verification. Ok good, now you’re in the club… You are all now hereby qualified to be excluded from the Roanoke City Rental Certificate Program. Congratulations to you!

This year we also got legislation that requires several studies to be done. One being the impact of the water liens on landlords bottom line. As well as a study of the impact of tenant bankruptcy proceedings on landlords. And a study that they are doing based on a bill I was unaware of that was going to force multifamily landlords to be responsible for developing a recycling program. This study determines the feasibility of such a program.

Lots of other stuff as well guys and gals. Those are just some of what’s concerning. There is some good stuff too. You don’t want to miss this meeting. You need to keep abreast of the laws that effect this industry so you can to keep yourself out of trouble. I have too many people coming to me after the fact to ask what to do about it. I can only help so much then.

See you there!

Tuesday, September 13, 2016

Great News ~ Productive Water Authority Meeting

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Hello Everyone,

A few weeks ago me, Matt Bennett and Roger Malouf had a very productive meeting with the head attorney/lobbyist for the Virginia Realtors Association - Chip Dicks, the lobbyist for the entire state of Virginia's cities, counties and towns - John Lain the lobbyist for the Water Companies across the state - Preston Bryant, as well as the head of Roanoke Valley Association of Realtors economic & governmental affairs - Joe Sutliff, who by the way is a real nice guy.

The purpose of the meeting was to drum up different ideas on what we can do to prevent landlords from ever having to pay the tenants delinquent water bills. We came up with some great ideas and are currently working on some things to help reduce your chances of this happening to you.

We also had a revelation during this meeting. It turns out that the Western Virginia Water Authority broke the law by putting liens on landlords for tenants delinquent bills without having a critical form that you as the landlord would have had to have filled out. Or Water Authority decided not to use this form. And any Authority that didn’t use it is agreeing to not take part in the lien against landlord program.

The only way for you to find out if you have one of these liens is by doing a title search on yourself at the court house. The Authority did not send out notifications that a lien was placed so you will not know otherwise.

Those of you who paid tenants bills rather than getting a lien on your house, you also didn’t have to do so.

What a mess this created. REI of Virginia will be standing by your side watching to see if the Authority will do the right thing and remove every lien they ever put on a landlords property or if they will force us to take them to court. This should be a real easy case considering the people who wrote the bill including their very own lobbyist confirmed that they broke the law. He said the would talk to them about it and clarify the law to them but he clearly doesn’t have the capabilities of making them do anything.

I’ll keep you updated as we progress. I can tell you one thing though. They are currently not budging a bit on those liens. They all agree with trying to develop solutions to reduce our likelihood of ever paying a tenants bill, but we have not been able to get them off the crazy idea that a landlord should be responsible for a tenants delinquent bill in the first place. They said that this order to make landlords responsible for tenants water bills “came straight from the Governors office” which we are skeptical of.

By the way, there is a process that REI of Virginia Realtor members can use to get laws changed through the RVAR. You landlord Realtors need to talk to Joe Sutliff about what you want changed in the law. Joe has the capabilities of submitting changes to the state VAR. Every year they pick several issues out of what’s sent to them and they push to get it passed as law. So you Realtor / REI members, of which there are many, could be a tremendous benefit to our collective cause to level the playing field for real estate investors state wide.

Good stuff guys. Finally a nice win!

The Good, The Bad and The Ugly About The Section 8 Program ~ This Week At Real Estate Investors of Virginia

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This week we will have special guest speaker Jessica Farmer with Roanoke Redevelopment & Housing Authority who will be talking to us about the Section 8 program.

Not every state gives you the right to say no to Section 8 applicants. The recent trend is for landlords across the country to get sued for saying they don’t take Section 8. The basis of the lawsuit is that you are discriminating regarding their source of income.

The protected classes are different in each state. Several states have made additions to the standard protected classes. In Virginia they are race, color, religion, national origin, sex, disability, familial status and elderliness which is our addition.

Given your Commonwealth right to say no to participating with the program, Jessica will be with us to tell us about the benefits including the maximum rent they will pay per bedroom voucher, what that dollar amount really means, etc. This will hopefully shed some light on exactly how much rent the tenant qualifies for. I have a very large portion of my portfolio as Section 8 rentals right now and believe me, it’s extremely irritating taking the place off the market because you think you have a tenant and then you find out that they don’t qualify for what you already know is the going rate for that property.

Another big disadvantage is that it often takes at least a full month of lost rent before the unit is officially qualified. And that disadvantage to some degree takes away from the advantage of being able to be pretty sure you’re going to get your rent every month. I say pretty sure because I have found on several occasions that if a tenant wants to move as a result of you catching them doing something they aren’t supposed to, or billing them for damages they caused, they will use the scummy tactic of calling the Section 8 office to have an inspection done. As well as code enforcement. And when that inspection is done the inspector will fail the unit requiring the damaged items to be fixed. Both items that the tenant damaged as well as new things found. Even if the unit passed inspection just a few months prior. It almost feels like they are working with the tenant to help them break the lease. If these items aren’t fixed then they will terminate all rent payments. 

This leads you down a real potentially nasty road. Every single tenant that is in the Section 8 program qualifies for Legal Aid. And Legal Aid will counter sue you for the damages stating that you forced the tenant to live in terrible conditions completely disregarding the fact that the tenant never told you about any problem, the unit was just inspected and got passed with flying colors, and several of the items on the list were done by the tenant. And if you win the case against Legal Aid with an expensive attorney, they will appeal it to the circuit court to empty your other pocket.

Can you tell I’m not real happy about the program in it’s currant state? There have been times where I loved it though.

Additionally, Section 8 also stated in their landlord meeting several months ago that they were going to start checking units once every 2 years rather than once a year. That sure was a breath of fresh air. But I can tell you that never happened. They also told the group that inspections are getting ready to become much worse than they already are. Which is already so bad that it has driven many landlords I know out of the program. Hopefully Jessica can shed some light on the new strengthened criteria.

Come on out this Tuesday and hear the benefits of the Section 8 program while being given an opportunity to tell them what you like or dislike about it.

See you there!

Tuesday, August 30, 2016

FUTURE ECONOMIC CONDITIONS - Great Depression Investing

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The future of the economy dictates how you invest your money. If you know and understand what’s happening you give yourself the capabilities to be positioned correctly and prevent any major loss to your investments. People who really know what they are doing and accurately predict the future will make themselves wealthy beyond imagine. And those of you who are riding by the seat of your pants………, you better hold on tight because there is a rocky road for you ahead. And you just may come out on the other side without a pot to piss in.

I’m going to lay out the basic principles for you here so you have the intellectual tools to judge what’s happening. If you are new to this please read it slowly, or read it a few times so you can grasp it. This knowledge will dramatically help your ability to accurately predict the future economy and understand what I’m talking about on future recommendations I give. This information is politically tied as a result of the Government as well as the Federal Reserve who have the strongest impact on future economic conditions.

Ok so our Central Bank, The privately owned Federal Reserve, supports Hillary Clinton winning and hates Donald Trump. Their main objective is to create low levels of inflation. 3 percent or so a year. The Central Banks across the world have supposedly found that a small amount of inflation is ideal as it spurs the economy. Yea so they are looking out for you. Not themselves. LOL. I would say truthfully it fills their pockets.

Those things being said, it’ is clear that they think it is in their personal best interest for Hillary to be president because she will create that inflation that they want. Inflation is a tax on your wealth. Inflation is profit on the Federal Reserve Note you see in the picture above. See on the top of the dollar where it says Federal Reserve "Note"? All of you who don’t know what a note is, its a loan. The 12 banks that own the Fed print money out of thin air and loan it to other banks and people through their individual banks. Then what they get back is that  dollar they printed out of thin air plus interest.

I know you are aware that back in the day money bought more. Back in the 50s a painter, working for a painting company, not owning it, could be the single bread winner in the family. His wife could stay home and care for the kids. That largely doesnt exist anymore.Both incomes are needed in order to survive. And that is in direct relation to the average 3 percent inflation that we get every year. Its 3% of the dollars buying power being taken away every single year and going into the fed and governments pockets. If you can understand and grasp this one single principle, it opens your eyes to whats happening. It took me quite a bit of reading and analyzing economic data from the top experts in the country until I got a handle on it .

When inflation is created by the Federal Reserve, the cost of goods goes up. Every year the cost of goods increases by an average of 3% as the dollars buying power decreases by 3% due to the higher cost of living in comparison to the new 3% lower dollar value. Then when the Fed prints money out of thin air adding a bunch of dollars to the system what do you think that does? That increase of supply of dollars in circulation makes each dollar less valuable as well.

Ill give this example to make it simple. We start with 10 dollars total and that 10 is to be shared among 10 people. Now I, acting as the Federal Reserve, will take money out of the system. I take 5 dollars out and that leaves 5 dollars to be shared among 10 people. So the value of those 5 remaining dollars significantly goes up since there are 10 people going for only 5 dollars. Now I add back 35 dollars. So now there are 40 total dollars in the system. And each person is competing to get as much as they can. Those 5 people that didnt have any money before will likely have a few dollars now. So there isn’t such great competition to get each dollar since there are so many more dollars in the system. Pay attention here and know these basic principles. Adding money decreases the value of the dollar. Taking away money increases the value of the dollar. Increased value of the dollar is increased buying power. Decreased value of the dollar is decreased buying power.

Heres one point to the contrary. Increased value of the dollar "in comparison to other currencies" where the dollar goes up but the rest dont, like what is happening now, is increased difficulty on American manufacturers selling their goods overseas. Their weak currancy compared to our strong dollar means they have to pay more of their weak currency to buy our products than they normally would. So the cost of our goods is much higher for them to buy. And if they cant afford it they cant buy it. Or they choose to buy the same goods from another country that sells them that now all of a sudden became real competitive. Now that the dollar went up in value in comparison to their currency. This is hard on American manufacturers. This is why China was intentionally keeping their value of their currency down. So they could be strong global manufacturers. This all making since now?

If you understand monetary policy and why they do what they do, along with what our future economic outlook is like, its easy to see what they are doing is for their personal best interest, not yours. And to sum it up, if they want Hillary to win the election, then is that in your personal best interest or theirs? If they hate Trump, is that in your personal best interest? Think about it...

Right now our future economic outlook is a long period of 10 or so years of World Wide Deflation. Great Depression type inflation. The Credit and Bond Bubble are going to pop. And proof of their inability to control it anymore is in the article below. During periods of deflation, the cost of goods decreases. The value of the dollar significantly increases, as it has been for the past several months. But when other currencies are also increasing along with the dollar its a wash so that doesnt have a significant bad impact on manufacturing. It only does when one currency breaks away from the others becoming stronger while the others stay down.

Fast hard and heavy deflation or inflation cause major problems. However opposite of what you have heard, "small amounts" of deflation personally benefit you. Your dollar has more buying power. We return to the times where one salary  can afford to manage a household. Etc, etc, etc… But it has to be small amounts at a time. Like 3% a year deflation. Not Depression type deflation which we are headed towards. One way to prevent Depression type inflation is to print money as adding money to the system creates inflation.

The key to economic health also includes the spread between our currency and other currencies. Manufacturing in the US was partially lost as a result of NAFTA but the Chinese wiped it out the rest of the way by being awarded Bill Clintons "Most Favored Nation" status for trade, and creating an artificial spread of value of their currency compared to others preventing manufacturing companies in the US and other countries from competing with them. Companies who couldn’t adequately compete any longer, and maintain a profit, REQUIRED by the stock market, moved their production out of the country.

So where have you personally directed your finger pointing as being the problem? Heres where I turn you Democrats away and prevent you from hearing a single word that you just read.

The Democrat party has told you to be mad at the companies, not the Government or the Fed, because they ended their manufacturing in the US to maintain their profit and keep stock holders from selling which would wipe out their company. And they did this as a direct result of Federal Reserve policy of whom is in bed with the Federal Government. Who do you trust? The government? Why has this happened? Is it because the Sheeple are blind? Are you one of the Sheeple? Do you have the ability to learn or will you be stuck in a hole forever?

I can honestly tell you that there are very few Democrats OR Republicans that actually know how this works. Do some research of your own and you will see I am right.

Central Banks Meet And Discuss Global Economic Conditions Below”:

https://ca.news.yahoo.com/global-central-bankers-stuck-zero-unite-plea-help-123135496--business.html?soc_src=social-sh&soc_trk=fb


Some facts about Depressionary economies. The last Great Depression we had a manufacturing base. The similarities were that it was also a borrowing / credit bubble that burst. Not credit cards then but rather borrowing from stores via “installment plans”. They made payments on the products they bought. This time around the difference is we have a service based economy and people aren’t prepared to take care of themselves as 1930’s people were.

Manufacturing:
- Cost of goods gets cheaper.
- Tighter financial constraints on manufacturers as a result.
- Manufacturers then fire workers to reduce costs of manufacturing.
- Unemployment soars.
- Countries put tariffs on one another to protect their manufacturing.
- Manufacturers call for lower minimum wages.
- They continue manufacturing products until they find out people can’t afford them so there is then a realization that there is a huge surplus of goods that can’t be sold.
- At the end they will destroy fields of produce, kill livestock, dispose of products etc to decrease the supply and increase demand bringing the prices back up. This happens at the very end. Last year proceeding a boom economy.

Banks:
- Home foreclosures are up as a result of lost jobs.
- Bank runs and bank foreclosures as a result of diminishing value of their ownership of companies securities that decrease in value.
- During the Great Depression almost half of all banks failed due to being invested in the wrong areas. Of those banks that failed, almost all of them were small rural banks. The 12 banks that own the Federal Reserve will never collapse because they will just print themselves more money.

Government:
- Governments across the world will become militarized and the chances of war greatly increase during world wide depressions.
- Tyrannical oligarchs are rapidly formed in these times. Bad for peoples personal freedom and liberty. The people who aren’t capable of helping themselves and desire to be on the back of another man getting a free ride are screaming at the government to help them and the government gladly steps up to the plate and strips away peoples liberty and freedom while imposing shocking laws and regulations.
- New expanded welfare type systems are put in place.

Real Estate:
- Rents go up and large cities will again attempt to implement rent caps and will again lose in court on their ability to legally do so.
- Land values diminish as the cost of growing timber and produce on them diminishes.
- Unemployment was at at roughly 40 to 50 percent, with black workers at 66 percent. Half of all personal loan companies loans were to people who where having difficulty paying for housing and food costs.
- Waves of evictions happened as landlords were focused on continuing to make their mortgage payments.
- Communists stood up and helped with rent resistance by battling the police when coming for an eviction as well as helping people physically move their property back into their houses when evicted.
- In apartment complexes there were rent strikes where the entire community refused to pay rent.
- Landlords often agreed to significant reductions in rent in order to slow the speed of evictions. So this says, those of you who didn’t buy with room and have a bunch of pigs for houses that don’t cash flow well are all going under. And banks that made loans to people like you will get sucked down with you.
- Governments start building massive low income housing buildings to take care of those that keep getting evicted. As well as we will have an increase in Section 8 spending. The government will put rent caps on what they pay out for assistance and there will be several years with no increase allowed if you want to participate in the program.
- Commercial property crashed as doctors, lawyers etc started practicing out of their homes.

Here’s some common sense advice on what to do now to prepare regarding your investments based on historic events.

We are coming up on Fall which will lead to the start of the winter dead season for selling property. My suggestion to all of you who have a few pigs in your portfolio, is to sell them. You will not be able to do it at the last minute as a result of real estate taking some time to unload. It’s better to sell them now when you can make some money on them than lose them later as a result of not having the additional funds to pay the note when you have tenants that can’t pay their rent, one after another.

If you have mortgages, you will be OK through this economic event if you primarily have good cash flowing properties that you will have the ability to accept half the rent and still cover your note as well as operating expenses, taxes, insurance, repairs, etc. I suggest that everyone spends some time soon getting all of your properties in good condition because there will be a spell of several years where most properties, landlord and owner occupied, will fall into disarray.

Monday, August 8, 2016

This Week The Differences Between Residential & Commercial Rental Property As An Investment

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Hi Everyone,

This week our special guest speaker will be our very good friend / REI member, Robert Young. Robert has many years of experience in both residential as well as commercial rental property.

He’s going to give us the rundown on the differences he sees with the two forms of rentals. Differences including things such as which is easier to rent, has better income, has better tenants that say longer, which is more competitive, which gives access to more capital, etc.

Going to be a great meeting.

We’ll see you there!

Tuesday, July 5, 2016

This Evening at REI of Virginia - Various Real Estate Valuation Formulas...

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This week Andy Stowasser will be giving a presentation on all of the various methods that a real estate investor could use to determine the value of a property.

Those methods include calculations such as the Capitalization Rate (CAP Rate), the Gross Rent Multiplier, Maximum Allowable Offer formula, Price Per Unit, Cash on Cash, Net Present Value, Internal Rate of Return, or various other methods.

Tuesday, June 21, 2016

Federal Judge Deems Utility Companies Billing Landlords For Tenants Unpaid Bills Illegal and Unconstitutional.

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I was sent this very interesting information by one of the biggest guru commercial landlords in the country. Our member, Ray Alcorn.

Philadelphia hero landlord, David Wolf, single handedly sued his local gas company who was billing landlords for tenants unpaid bills. He ended up having to take the case all the way to federal court. And the judge sided with landlords across the country deeming it an unconstitutional practice. This is a massive country wide victory for landlords. Now how hard are we going to have to fight in Virginia for our rights?

I suspect our politicians now will listen and make Virginia laws comply with the constitution. There are several common ways that all companies pay for their losses. NONE of them including billing a third party.

Us landlords get cosigners. Our gas company here gets a deposit that they have deemed as being high enough to cover any potential loss. Stores like Walmart charge a little more to the price of goods which covers theft. It’s such a small amount people don’t even notice it. Our Water Authority has a long list of things that they want us as a third party to do to cover theft and tenant unpaid utility bills. I have a message for them. Greed will destroy you!

See the article and video here of this fantastic story. I suspect there will be some big changes in our favor at next years Virginia General Assembly meeting.
http://6abc.com/news/judge-pgws-collection-process-unconstitutional-/1379561/http%3A%2F%2F6abc.com%2F1379561%2F

Western Virginia Water Authority Wants To Set Up A Deal With You To Pay For Their Losses.

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Senator Edwards sent me a proposal to send to our members. The Water Authority initiated an agreement that they would like to set up with landlords. Please see the attached file for the specific agreement word for word. I will summarize it here. Please send me your input so I can reply to Senator Edwards with comments from our members.

Summary:
Water Authority Agrees To…
* Refrain from filing liens on your property if your tenant doesn’t pay their bill as long as you agree to several things.
* They agree to increase the deposit so the tenants can pay for their own unpaid bills subject to their boards approval.
* They agree to provide notification to you if there is a leak at the property as they are ALREADY DOING for every homeowner in their area since we funded their electronic meters. 
* They will give you a leak adjustment for repairs as they are ALREADY DOING for all customers.

So to sum it up, on their end they are NOT AGREEING TO DO ANYTHING beyond what already is done for every customer OTHER THAN POSSIBLY boosting the tenants deposit to cover THEIR OWN unpaid bill and not giving you a lien because the tenant will be paying their own bill.

In Order For This Deal To Happen You As A Landlord Must Agree To...

* Let them know all of the properties you own.
* Let them know when you buy any new properties.
* Provide a lease when asked for a lease.
* When notified of a leak fix it.

All of the above seems to be very reasonable. Here are the questionable items that I need your input for Senator Edwards on.

* Agree to pay water and sewer bills whenever there is not an active account. So if someone is stealing water from the house between tenants it’s your bill to pay. If the water is cut off on your tenants and they don’t put a lock on the meter and your tenants turn it back on you agree to pay for that water too. Any time the water is off it’s your bill.
* Provide them with a higher $200 deposit per property, not to exceed $1,200 for all properties, that will pay any bill off that accumulates when the water is turned off even if they don’t adequately lock the meter and it is as a result of theft it will be your responsibility.
* You also must agree to replenishing this deposit within 90 days to keep a full deposit at all times that they can tap into as needed.

So I see this agreement as they will do nothing if you do all of the above. And they MAY increase the tenants deposit which they legally have the right to do making it so the tenant pays for their own bill, ONLY IF you agree to all of the above.

Please read the original attached proposal and reply to me with what you think of this proposal so I can get a general consensus from Landlords in Greater Roanoke on how you all feel about the Water Authorities offer. I am going to publish your comments. I will leave your name off for anonymity purposes.

It seems to me that the Water Authority is very proud of their recent win against landlords. It’s almost like they are gloating and saying while your hands are cuffed behind your back let us punch you in the face a few times and lets see how stupid you landlords are. How do you feel about this proposal? Please send me a short note with your comments for Senator Edwards so he can get a feel for what we think about it as a whole.

Tuesday, June 14, 2016

Attorney James Steele This Week at REI ~ Convicted Felon Rights… The new protected class.

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Hello Everyone,

Several people contacted me last week wondering why I didn’t write the agenda. And that was because I was in extreme mental distress. I had to take my German Shepherd to the vet to be killed. She died in my arms.

I’m one of those crazy animal lovers... That dog was like my child. There aren't many things on this planet that I loved more than her. She had really aggressive bone cancer and her pain got so bad that I had to give her my morphine to get her through the weekend. The Quellen and Tramadol that the vet prescribed no longer worked. Having to have her put down hurt me pretty bad. I’m just now, a week later, able to talk about it.

This week we have a great meeting lined up that you don’t want to miss. Our special guest speaker will be attorney James Steele. I met James a few months ago in a case where he was helping my tenants defend themselves against me. Not an easy thing for him to do considering the fact that I have been to court for Unlawful Detainer proceedings far more than most attorneys have. Fortunately we came to an agreement and the tenants ended up getting themselves caught back up. Since then they have been a pleasure to do business with.

James was a real nice guy as well.

I’ve been told that he will be coming to our meeting to discuss the new Virginia HUD mandate that requires you to rent to murders, child molesters, rapists, etc. If you don’t you can be charged with Fair Housing Violations. And if you do you will get sued by your neighbors when the child molester rapes the neighbors kid next door. Damned if you do, damned if you don’t.

I wrote an article about it a couple months ago here.
http://www.reiofvirginia.com/2016/05/you-now-have-to-rent-to-violent.html

This is going to be an interesting meeting. Come on out and hear James Steele’s take on this law and lets find out if he sees any angles that can be used to protect the neighborhood and your property while staying within the scope of the law.

Stay on top of what’s happening in our industry. REI brings you the best educational meetings that help you make money, save money and protect your money.

See you there!

Tuesday, May 31, 2016

Silver Street Painting Company & Discussion on Financing

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Hello Everyone,

I’m going to have to make it short and sweet this week.

I have been really stressed out lately because my girlfriend just got diagnosed with the worst form of breast cancer that a woman can get. Abnormal cell structure, doesn’t respond to hormones, grade 3 which is the worst. We did some research and found the best cancer hospital in the world which is in Houston Texas. She has been down there twice in the past couple of weeks and now just started chemo.

For icing on the cake, I also just found out that my dog has bone cancer. It is the most aggressive form of cancer a German Shepherd can get. She is 11 years old and the vet said he could cut her leg off but it’s real hard on a dog of her age to do that. He said he has found when doing so it will only give them an extra 6 months of life. And it will be a painful 6 months trying to learn how to walk with a missing front leg. Apparently a dog can get along better if it is their back leg that is missing. He recommended against it. That dog is like my child. She is with me all day every day and has been since I got her 11 years ago.

So that, among several other things, is what's stressing me out right now.

This week our guest speaker will be a woman named April Medeiros. April is the owner of a business called Silver Street Painting Company.  They work with non profits and hire felons in transitional living to teach them a skill so they can become good productive citizens. This may mean better prices. I don’t know. We will find out. April is going to have a short discussion about her company and what she can do for REI members.

Following that we will have a discussion on financing. That’s all I know. I can’t give you any more information other than that as that’s all I have been told.

Come on down and spend some time with fellow successful individuals every week at REI. Doing so will help you keep your head in the game and your eye on the big picture rather than the day to day business.

See you there!

Tuesday, May 24, 2016

Strange Landlords Website & Are You Getting Ready To Get Bit Or Licked?

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1. Interesting article by the Roanoke Times about a Floyd landlord, Mr. Amour Kasongo… who came from Rwanda and settled in Roanoke. He now owns 6 houses and set up a website called Yardstick that is supposed to be better than Craigslist as it doesn’t have the scammers. He says he only posts verified rentals to cut back on the scams where a person posts your house for rent using your ad and photos and charges several people deposits on it before they disappear.

He also said he is considering offering a years worth of rental payments for a tenant allowing them to repay Yardstick with interest. The idea is the landlord knocks off the last month of rent to get the guaranteed 11 months of payment upfront and he makes money from the one month you knocked off and interest.

I have plenty of 11 month deals for Mr Kasongo. The only Yardstick website I was able to find is https://angel.co/yardstick 

I don’t think the Roanoke Times did their homework. This looks like they are promoting a Nigerian scammer with a bunk website. Interesting how his last name is different on the website than it is in the article. Does the Roanoke Times check anything they write?

Here’s the original article from the rag.


Click Here!!!

2. Feds charge landlord for not allowing tenant to have a dog for emotional support. 
 Ladies and gentlemen. There has been an ongoing battle since legislation passed a couple years ago requiring landlords to allow pets for handicapped people without a pet deposit, pet rent, or pet fee of any kind. Even if you don’t allow pets in that property. The laws that our congressmen passed were very vague. So they left them open for interpretation. And what does the government do when you give them an inch? Yes, that’s right, they take a mile.

We all know that these laws weren’t initially intended to allow anyone that wants to, to scam their pet into a landlords house that doesn’t allow pets via a fake disability. They were intended for real disabilities and we all know that. All of us except the enforcers of the law. They are the only ones that don’t seem to get it.

Doctors are writing prescriptions to tenants for emotional pets like it’s going out of style. They don’t understand the implications of what they are doing. They don’t understand that their emotional pitbull isn’t allowed by your insurance company. And when their emotional pitbull bites someone, the person that got bit is going to get emotional and sue the landlord for everything they have.

People… I don’t have any problems with pitbulls so don’t get me wrong. I love all dogs. Any dog that is raised right can be man’s, or woman’s best friend. But your insurance company doesn’t trust them as well as several other breeds. And that causes a problem for you as a landlord. Especially when you can’t require, the supposed handicapped tenant trying to skirt your fees, to cary any special insurance or anything like that.

Any doctor that gives someone a prescription for a medical pet should require that that pet is certified for whatever particular medical purpose. That will end this problem for the most part. And we need laws in place that allow landlords to require special insurance on a pet that is not insured by their insurance company. It’s just common sense. Lets start thinking a little before passing bills in congress. Maybe we will be better off not passing any more bills at all and start working on eliminating bills.

Read the interesting article of typical government overreach below.
Click Here!!!

Understanding money this week at REI.... Debt, leveraging, financing, etc.

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This week at REI our special guest speaker will be Matthew Philmore of VIP Financial Education.

VIP teaches real estate investors how to accomplish the following:
Accelerating the payoff of all mortgage and non-mortgage related debt.
Maximizing monthly cash flow.
Increasing access to capital.
Accelerating the acquisition of investment real estate.
Increasing credit scores organically.
Unique and more effective budgeting.
Building Emergency reserves.

Matthew Philmore has studied under the founders of the FICO credit scoring system. He speaks nationally on the topics of credit scoring, debt elimination, fiscal responsibility and proper budget management.

He will be teaching the fundamentals of money, leveraging, taxes, and financing that are often not taught in schools. A good understanding of how all of this works together allows you to pay the least in taxes as a result of owning a business, create multiple residual income streams, own real estate free and clear faster than typical strategies, etc.

They are promising lots of good free information and techniques they call debt weapons that you can use at our upcoming seminar. We’ll see you there!

Monday, May 16, 2016

Know And Understand What Is Happening Politically To Position Your Investments So You Win!

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So, have you been thinking about buying some “safe guaranteed” government bonds or treasuries? How about some nice “safe” mutual fund that invests in bonds or treasuries? Lets look into the United States Debt and determine what you should NOT have your money invested in as we are in the middle of a government bubble. Smart investors never invest in a bubble. They buy at the bottom of the market after its popped.

US Debt and what it consists of:


It seems that most people I talk to know we have this massive 20 trillion dollar debt that Obama created but most don't know who owns it. Which helps in determining how it gets paid off, what gets negotiated, etc.

People act like China owns all of our debt but that simply isn't true. China did help cause our debt though. Their devaluing of their currency over the years helped create the debt along with reckless government spending and entitlement programs that aren't sustainable.

Over 5 trillion of the debt is owed to 230 federal agencies. This is Federal Debt to the Federal Government. These federal agencies bought US Treasuries. And the largest of all is Social Security at 2.8 trillion. You also have the military retirement fund, office of personal management, medicare, other federal government retirement funds, etc. Yes they do still have pensions set up for government employees and they will fight to keep their pensions rather than let them go into bankruptcy.

The rest of the debt is owned by the public. Of which 5 trillion is foreign public debt. Which mainly includes China and Japan. China's owed roughly 14% of the total debt and Japan 13% of the debt. 2.5 trillion of this public debt is owed to the Federal Reserve. I personally don't care about that. With their mismanagement of our economy they deserve to lose money. Especially when they are the ones that can print these notes out of thin air and require the US to pay them back interest on everything they print. As you probably know the Federal Reserve is a private business that is owned by the 12 largest banks in the US with insane powers no private business should have. So who cares about their debt. Besides the fact that their debt is interest we haven't paid them on money they printed. Federal Reserve "Note". They print and we pay them back the value of the currency plus interest. But they CREATED that currency out of thin air. How would you like the ability to print dollars whenever you want money. Then charge the people you give them to interest on what you printed. A huge scam.

Then we have 1 trillion that was bought by mutual funds. That would be the idiots that bought mutual funds that bought the debt. Would you buy government debt right now? If you would you deserve to lose your money. I don't care about their losses. I don't think we should guarantee anyone's bad investment. Maybe the day when the public starts guaranteeing my real estate investments is the day we guarantee peoples stock market investments. What kind of idiot guarantees someones bad investment?

Also in public debt there is local and state government pension funds. I also am not overly concerned about that. But I'm sure you are if you work for the government. You people need to stop this crap and set up 401K plans. What company these days still has pensions but the government? That total debt is 803 Billion.

Then you have banks that own 515 billion of public debt.

Insurance companies with 293 Billion

US savings bonds 174 Billion

Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.198 trillion

And that's the debt and who owns it. Now lets see what we want to guarantee and what we will negotiate. I personally think paying the people back for the government robbing them of their social security is important. Then government officials that bought treasuries with social security need to go to jail. Or better yet get on a payment plan to pay back what they spent. What do you think is important? And what isn't. I told you what I think isn't.

You Now HAVE TO Rent To Violent Criminal Offenders Or You Are In Violation Of The Fair Housing Laws.

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Several years ago we were ankles deep in police state type control of the people. We are now much deeper. More like waist deep. And it’s getting deeper by the year. The government has found that the more they push you the less you fight back. The people feel weak and hopeless. Like they can’t make a difference. That’s because the government no longer listens to the Will of the people. There was a day when government officials thought of themselves as civil servants. That they worked for the people. But today they are more like mini dictators that’s primary objective is to control the people.

They know better than you do how to run your life. Don’t you know that? The people are too afraid to fight back or do anything about it so on almost every occasion the government wins. In Virginia, they have now decided to issue a dictate stating that if you don’t rent to violent criminals, rapists and child molesters you can be charged with violations to the Fair Housing Act. And if you do you can be sued by the neighbors for your negligence. You should have never put a child molester next door to a child that got raped by them.

The world is crazy right now. The government on local, state and federal levels is operating with absolutely no since of reason or logic. For the past 8 years they have been pushing as hard as they can to take away your rights and now we are in the wake of some very serious damage to this country which is potentially beyond repair.

See below the details of the new government mandate that Virginia has dictated. Do you agree with it? I can’t think of a single landlord who would. I’m 100% on board with the existing protected classes that we have but adding criminals to the protected classes is shocking. I do not see a huge problem that has lead to all criminals having to live on the streets as a result of landlords not renting to them. They always seem to end up not having a tremendous amount of difficulty finding a place to live. There are plenty of landlords that don’t care.

The free market system should be allowed to operate without this type of government involvement. You as a landlord should not be FORCED to rent to a criminal if you don’t want to. It’s similar to the news where they were trying to force the cake decorator business to make a gay cake. If he doesn’t want to make one than go to another cake decorator and spread the word around that that’s a bad business. Then one of two things will happen. Either the general public will agree and not support his business or they will disagree and continue to do business there. In the end it should be the public that chooses, not the government.

We had some laws in the Virginia General Assembly that were an attempt to force landlords to rent to people with a different gender identity. The law added to the list of protected classes. I personally didn’t know of some major problem that existed with landlords not wanting to rent to transexuals. I actually don’t know a single landlord who would care. I personally love my gay tenants. As a whole they are typically very clean people and they take great care of my place.

Government intervention where it is not needed. It’s time that they government backed out of our lives and stopped this intense pressure of new regulation where regulation isn’t needed.
http://www.thenewamerican.com/reviews/opinion/item/23127-partisan-fairness

Landlord Entitlement Program That Will Make You Money This Week At REI of VA

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It’s nice to every once in a while be able to get back some of that hard earned money you give away to the government all year. It isn’t really an entitlement program but it sure feels like one. It’s very strange having the government actually put money back in your pocket. I’m so used to it being taken out. You will get the knowledge of how to take advantage of this program at this week’s REI meeting.

This week at REI of Virginia we are going to have our good friend Marla Robertson of Lead Safe Roanoke at our meeting. Lead Safe Roanoke is a Roanoke City government program that was set up by Marla and Ann Weaver.  These ladies apply for grant money which pays for lead abatement and encapsulation when the house has children in it 5 years of age or under, or if a pregnant female lives there. Right now they have funding again.

If you have lead paint on the walls or on a metal roof they will paint over to encapsulate it. They will also test the dirt around the house and if it has lead they will remove and replace it with several inches of mulch. If you have old windows or doors that have lead on them they will replace them as well. Painting over windows and door trim does not solve the problem. They have to be replaced. They are continually opened and closed which will rub the paint off and get back down to the lead paint again.

I have used this program several times and every single time the windows needed to be replaced and dirt had to be excavated around the house.

Come on out to our meeting this week to learn about this program so you can take advantage of it. There is only so much funding for this each year so you have to jump on it before it runs out.

See you there!

Tuesday, May 10, 2016

Roanoke City Election Results

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What a tight election that was. The votes were counted and recounted several times. John Garland and Trish White-Boyd were neck and neck. It turns out that REI of Virginia played a very important roll in this election.

This is a lesson to be remembered for all future candidates. You can not blow off the REI meeting if you are not the incumbent. We have 715 members in our organization. At least 1/3rd live within the city limits. It is a very bad idea to blow off the REI Small Business debate. If you don’t already have major support form being in office for several years, you may lose the election from not showing up to our debate. The proof is in the pudding below.

For Mayor the winner is:
Sherman Lea who got 82 %. Sherman was running unopposed. 17.8% of the public wrote in a different candidate. Surprisingly large number of people.

For City Council:
Anita Price               4,214 votes
Michelle Dykstra     4,143 votes
John Garland           3,534 votes - Showed up at REI Small Business Debate
Trish White-Boyd      3,487 votes - Wow that’s close - Blew off REI Debate
Freeda Cathcart          2,913 votes
Duane Howard           758    votes

REI of Virginia would like to congratulate the winners of the City Council and Mayor positions. Sherman Lea, Anita Price, Michelle Dykstra and John Garland. We know it was a long hard road for you. Now we hope that you will always act in the best interest of both the citizens and businesses. Creative thinkers are what we need. Relationship builders. A good relationship between local government, real estate investors & small business owners could make this city the Shining Star in the Valley again. 

How To Course on Airbnb ~ Limited Residential Lodging Act of Virginia

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 UPDATE: THIS LAW DID NOT PASS YET. THIS WILL SERVE AS A GUIDELINE FOR A GROUP CONSISTING OF HOTELS, ONLINE BUSINESSES LIKE AIRBNB, THE TAX MAN, CITY GOVERNMENTS AND OTHER INTERESTED PARTIES. THIS GROUP WILL REFINE THE LAW AND PROVIDE A FINAL VERSION NEXT YEAR.

Hello everyone,

This week we’re going to have an in’s and out’s meeting about airbnb. For those of you who don’t know, airbnb its similar to VBRO (vacation rental by owner). But it’s much larger. Airbnb is a website where people can stay in someones house rather than a hotel when they travel. It’s the home version of Uber. With airbnb you can rent out rooms in your own house for a night or for a few days, whatever you wish.

What a great way for someone to make a few extra bucks. Several people across the country are using airbnb to avoid foreclosure when times get tight. Or to have money to buy a new car or whatever. It’s a fantastic survival tool just like the Uber concept where you use your own car as a taxi and drive for a while when you’re bored or need some extra cash. My tenants can even make money to pay me their rent with this fabulous new tool.

Our officer, Sue Brocker, has been an airbnb host in one of her properties for a while now and she is making some good extra money doing so.

Roanoke City was trying to control the citizens by making them jump through hoops and pay several hundred dollars to file a legal notice as well as a non refundable fee to plead before the board of zoning appeals for them to graciously allow you to let people to come stay in your own personal home. As if any government official has the right to prevent you from having people over at your house.

Boy… were some of the city council members mad when the state made it a RIGHT for you to do this rather than a privilege in this years general assembly meeting.  I personally spoke with one of the currant councilmen and he was hot. I was essentially told this.… (How dare they do this to us. Airbnb loved Roanoke City and how we created an avenue for the citizens to be able to rent rooms out of their homes…. We were even contacted by them…. We are one of the few progressive cities to do this.… It’s not fair to everyone who thought they were moving to a quiet neighborhood and the next thing they know there is a lot of traffic coming and going from their neighbors house…. This is why the board of zoning appeals process is important.… It allows neighbors to have a place where they can go to stop things like this…. Dallas do you know the calls I’m going to get when people call me and tell me that they can’t stand all of the traffic coming out of that house next door? What am I going to tell them Dallas? I guess all I can say is what I so frequently have to say….. our state politicians decided that you neighbor has the right to have people over at their house and I can do nothing about it. It’s too bad for these people that I can’t help them anymore.)

All I can say is WOW. Isn’t that the perfect demonstration of how a fringe leftist thinks? That they actually have the right to be able to strip your property rights and your liberty away from you if they wish. Or if your stuffy neighbor wishes. Control is the name of the game for the far left guys. It’s all about keeping people under their thumb. And they do this under the guise of political correctness. They develop reasons why the government needs to govern. Why they need to control the people. To protect the victims… Don’t get me wrong, Republicans do this as well. Just not as much. The only political organization that is not focused on stripping your liberty away from you are libertarians.

These types of progressives are often very self important. I have been told by this city councilman, on several occasions, as we wrap up a conversation, in a jokingly way, to “stay out of trouble”. Haha, that’s real funny. Shouldn’t I be telling them that? I am the one that’s the law abiding citizen. He’s the one that better stay out of trouble. This $10 dollar buildings to friends program they set up very well could eventually end up landing some of them in prison. They don’t think so though. These types feel they are too important to get locked up but I can assure you that they aren’t. To take this further, I was told at the end of this particular conversation a few months ago by this councilman, “See, I will even talk with people of the likes of you Dallas.” Gosh that guy is a real comedian isn’t he?

Well, we have been lucky so far. Often when the city tries to strip away your liberty, it is given back to you by the state. Gosh those darn liberty loving people are always messing things up for the oppressors. The city now has no authority to force you to jump through hoops or prevent you from renting out your home to guests as it now has been deemed a right. As long as you are not infringing on the rights of others, they need to stay out of the way and focus on their multi layered pension programs, world class health care, and other ways of robbing you.

Ohh, did you just learn that I am not a fan of the government choking the life out of the citizens?

Facts about the new law that I gather:
1. Specifically prevents Any Locality from passing laws to prevent you from doing this in a residential dwelling no matter what the zoning is. Sorry Roanoke City too bad you aren’t allowed to control us.

2. Prevents the locality from forcing you to adhere to any zoning or licensing requirements that a hotel, bed & breakfast or any other like commercial organization has. They can’t legally impose any additional regulations upon you for doing this. The City was in hot water from what they were doing to the citizens of Roanoke so they immediately terminated their citizen control program.

3. As of now if you rent it out for fewer than 45 days they can not even consider it as a business to tax. However if it is occupied more than 45 days than they can tax you but it has to be done in a uniform manor among all operators which is you if you operate one of these temporary lodging facilities in your house.

4. Localities are allowed to place local ordinances related to noise, trash, health and safety, parking, yard signs etc but only if those ordinances effect not only the temporary lodging but the houses around it as well.

5. A locality can force you to get an insurance policy of a minimum of 500K liability coverage and if they require that and if they catch you not having it they can charge you no more than $200 per violation.

6. If you don’t pay your taxes on the 45 day or more annual stays they can put an ordinance in place that makes it so you are prohibited from operating this temporary lodging, that you can be audited by the tax man, and require you to register your name and address through an online portal maintained by the city or town.

7. This law specifically calls a tenant both a limited residential lodging operator and a primary resident allowing them to do this if they have lived in the unit for at least 60 days. However it also says that nothing shall be construed to supersede or limit contracts or agreements between or among individuals for the use of the property. So that says that if it is in your lease that they can’t act as a residential lodging operator than they will not be allowed to do airbnb. However if it is not in there they have the right to do so. I will be convincing all of my tenants when having difficulty with rent or losing a job that they should consider making some extra money with airbnb and Uber.

8. If it’s in a homeowners association or condo association contract that you can not do this than you can’t do it. As that is also a contract between parties.

9. The hosting operation such as airbnb or VRBO has to register with the state and collect taxes for them. That will automatically come out of the portion of money they keep.

10. This law does not say anywhere that I see that you can’t do this in one of your rentals. The city before was making requirements that you have to live in the house to do it. I see no requirement such as that in this state law.

11. They will revisit this in 2017 and determine if there needs to be changes made after meeting with a group consisting of the hotel industry, hosting operation, local government and local tax officials, property owners and other interested parties.

Come on out to this meeting. It’s not going to involve all of these details. I am giving those to you now. We’re past that at this point. Save this email for reference. The focus of our meeting is how to use programs like airbnb to make some extra money for yourself. This could even be a great way for a person just getting involved in real estate investing to save up for their first rental.

Going to be a fun meeting, see you there!
 

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