Tuesday, December 17, 2013

Virginia Court Rules And Procedures

See the list of rules and procedures for Virginia Courts below.

§ 8.01-126. Summons for unlawful detainer issued by magistrate or clerk or judge of a general district court.
A. In any case when possession of any house, land or tenement is unlawfully detained by the person in possession thereof, the landlord, his agent, attorney, or other person, entitled to the possession may present to a magistrate or a clerk or judge of a general district court a statement under oath of the facts which authorize the removal of the tenant or other person in possession, describing such premises; and thereupon such magistrate, clerk or judge shall issue his summons against the person or persons named in such affidavit. The process issued upon any such summons issued by a magistrate, clerk or judge may be served as provided in § 8.01-293, 8.01-296, or 8.01-299. When issued by a magistrate it may be returned to and the case heard and determined by the judge of a general district court. If the summons for unlawful detainer is filed to terminate a tenancy pursuant to the Virginia Residential Landlord Tenant Act (§ 55-248.2 et seq.), the initial hearing on such summons shall occur as soon as practicable, but not more than 21 days from the date of filing. If the case cannot be heard within 21 days from the date of filing, the initial hearing shall be held as soon as practicable. If the plaintiff requests that the initial hearing be set on a date later than 21 days from the date of filing, the initial hearing shall be set on a date the plaintiff is available that is also available for the court. Such summons shall be served at least 10 days before the return day thereof.
B. Notwithstanding any other rule of court or provision of law to the contrary, the plaintiff in an unlawful detainer case may submit into evidence a photocopy of a properly executed paper document or paper printout of an electronically stored document including a copy of the original lease or other documents, provided that the plaintiff provides an affidavit or sworn testimony that the copy of such document is a true and accurate copy of the original lease. An attorney or agent of the landlord or managing agent may present such affidavit into evidence.
C. Notwithstanding any other rule of court or provision of law to the contrary, when the defendant does not make an appearance in court, the plaintiff or the plaintiff's attorney or agent may include in the affidavit entered into evidence pursuant to subsection B a statement of the amount of outstanding rent, late charges, attorney fees, and any other charges or damages due as of the date of the hearing. Upon request of the plaintiff or the plaintiff's attorney or agent, if the court determines that the affidavit accurately sets forth the amount due the plaintiff, the court shall enter a judgment for such amount in addition to entering an order of possession for the premises.

Thursday, December 12, 2013

Our Member and Very Good Friend, Walter Crosby Died.

I have some very bad news to tell you. Our good friend Walter Crosby died. He passed away November 16th which was just after we saw him at the meeting. I was wondering why he hadn't been around because almost always either Walt, his wife Carol or both of them were at our meeting.

I spoke with Carol. She was in a nursing home for rehabilitation services because she broke her hip. Walt was back home and was feeling bad. His kids were telling him to go to the hospital but he was being stubborn and didn't want to. He later died.

Carol never got to tell Walt goodbye. That's the one thing I struggled with when my dad died. He passed quickly as well. One day I'm talking to him and the next day he's dead. All I could think was wish that God gave me just one more day to sit down and talk with Dad about politics like we used to do and tell him how much I loved him. A moment I would have cherished dearly as all other similar moments were taken for granted.

As you may know, when a family member / business partner passes their death is often not the only thing that has to be dealt with. In the case of my dad, there were many things in the business that he took care of and we were left not knowing what was going on or exactly how to proceed. There was a rather large learning curve that had to happen for us to pick the pieces up and continue.

REI of Virginia is not only an educational organization but we are an extended family.  We are there to give a helping hand to our members whenever they need help. My heart goes out to Carol and her family in their time of need. If there is anything you can do for Carol please give her a helping hand. I can imagine that she will need some help picking up the pieces in one instance or another with their business.

Walt was a great guy. He was in the military. A few of our last conversations were about Deuce And a Half trucks. He knew allot about them. He was also a former HVAC mechanic and helped me solve some issues I had.

Please come and show your respect. His services will be at Unity of Roanoke Valley. The address is 3300 Green Ridge Rd, Roanoke VA 24019. It will be this Sunday December 15th at 3:00 pm.

Directions Click Here:

Monday, December 9, 2013

Cox Home Security For You And Or Your Tenants

I don't have time to write much right now. I hope you all have a few minutes here and there to put some time towards looking into what happens to real estate in periods of inflation and deflation. That article I wrote and the link provided is essentially a beginner crash course on the subject. It was very well received as I had at least 60 emails from our members regarding the subject.

If you read it and were able to understand it you're a long way there. If you didn't you are more than welcome to ask me questions and I'll help bring you up to speed. Once you understand the impact of inflation and deflation you are armed with one of a few tools needed to read the future in our industry. Other tools include understanding the impact of population fluctuation, the basics of supply and demand, and cycles that happen over and over in our industry.

Educated investors win in times of uncertainty. They win big. And everyone else loses. This group is all about making ourselves money through our collective knowledge. We hit it on every angle. It's essentially an ongoing masters degree program for the intellectually superior. And it's fun so it doesn't even seem like we're learning.

This week we're going to have our vendor style meeting with a local rep for Cox Home Security named Laura who will be talking about their product for your own home and or middle to upper class rental properties as an upgrade that can potentially justify higher rents.

Essentially their product isn't only an alarm system that can send you photo and video of what's happening at your house but it also can help you save money by setting up rules for lighting and heating that can be managed right from your smartphone.

Saturday, December 7, 2013

Read The Future For Real Estate

This is a picture of Weimar Germany during their period of Hyperinflation. Wheelbarrows of money bought a loaf of bread. People used money for wallpaper because it was cheaper than using wallpaper.

Serious condition? Yes, that's very serious. Much more serious than the United States Great Depression. And Germanys hyperinflation wasn't the worst in history. As a matter of fact it was the 5th worse. The worse was Hungary when rated on a scale of the average daily inflation rate.

Hyperinflation has happened time and time again in history, each of which were caused by the government printing massive amounts of excess money which devalues the currency. It's often used as another way to tax the people without them knowing it's happening. Your money is worth less due to inflation. More money in the system makes your one dollar worth less than one dollar as there is more to go around. Less money in the system makes your one dollar worth more than one dollar as they are harder to come by. The government has preached to the people that a little inflation every year is good. Good for who? Them or you?

I'll give you a list of a few of the countries that have suffered hyperinflation over the past 90 or so years. Hungary, Zimbabwe, Yugoslavia, Germany, Greece, China 2 times, Danzig, Armenia, Turkmenistan, Taiwan, Peru, Bosnia, Herzegovina, Ukraine, Poland, Congo (Zaire), Russia, Bulgaria, Moldova, Soviet Union (prior to Russia), Georgia and Tajikistan. Many of these have been since the 1970's.

So, yes, it has happened many times in history and there is plenty of history to determine how and why it happens.

Typically hyperinflation takes place about 5 to 9 years after the representative government has printed additional currency with nothing to back it as the United States has done countless times over the past few years. And interest rates have been kept very low for a number of years now to hold off the inevitable.

So what does inflation have to do with Real Estate?

Stable Currency: If there were no inflation and no deflation than the price of real estate would remain relatively stable. It would have ups and downs based on population, supply and demand as a result of population fluctuation, and other cyclical events. Drastic change one way or another can be very scary. Massive wealth is made during times of drastic change.  Massive wealth is lost as well during times of drastic change.

A stable currency is not a Fiat currency as we currently have that's backed on nothing but the worlds personal perception. Rather it's a currency that is backed on a globally traded equity such as a precious metal. All fiat currencies in the past have failed. That's right. ALL. EVERY SINGLE ONE. And there have been many.

Those who are not positioned correctly will suffer tremendously. Those who wish to protect themselves will spend time understanding inflation or at least follow people who you are confident that do. That's why I'm writing this article for the group. I would like to start an ongoing dialogue on the subject. I'm no expert but I am learning about it and have a pretty good grasp on how we are affected by it.

Hyperinflation: During hyperinflation on the front side real estate goes up in value. The cost of all goods go up in value as the dollar won't buy as much as it used to each and every day it decreases in value due to the inflation. Mortgage rates increase as they reflect interest rates and interest rates tend to go up with inflation. Rents increase some but not comparitively to afford the higher adjustable mortgage rates.

Tenants that are on fixed incomes such as the elderly and recipients of disability checks will suffer the most and landlords who rent to them will find great difficulty in obtaining rent.

Landlords who use year to year leases and have mortgages will suffer.  They would be better off with month to month leases as they can adjust the rent as needed when adjustable rates drastically increase.

A moderating factor on the back side of hyperinflation is that when mortgage rates go too high people will stop taking out home loans and and the supply of available property will increase significantly causing a big pop of the housing bubble hyperinflation quickly creates as home prices drastically drop in value.

I have been a strong believer that the United States will face hyperinflation due to our politicians inability to adequately control their spending of our money.  My beliefs are based on historical events and if you know history you can read the future in many cases as we all know history repeats itself quite frequently.

Here's another look on what will happen regarding inflation as a result what they have done to us. This analyst has an interesting spin on the subject and feels more or less that people will suffer but it won't be as a result of hyperinflation but rather a result of a necessary pay down of the debt. They cover how the debt will be paid down and with who's "entitlements".

It's a long article that I didn't feel like reading but wanted to know about so I took the cheesy way out by copy and pasting it into a word document and then highlighted it all and had my computer read it to me.


Monday, December 2, 2013

Landlord Nightmare Stories Coming Up This Tuesday Near You…

First let me give thanks to our President Andy Stowasser for doing such a great job with setting up some really informative and fun meetings. It's not an easy job, I know that from personal experience.

This week he scheduled a meeting called Landlord Nightmare Stories. In this meeting we get to talk about the worst or most interesting things we've individually bumped into as landlords so we can learn from each other. It helps to hear what kinds of problems other landlords have encountered so you know how to handle it when it happens to you.

Did you have a con artist nightmare tenant put you through the ringer with the judge while they shacked up in your place and got free rent for months? How about a neighbor who tapped into your rental's power lines and ran your bill up for months before you caught them? Or a tenant that you had a past relationship with that turned the court room into another Judge Judy show? What about this, some real mean tenants that wanted to move and you told them that they will need to honor the lease agreement so they tried to burn your house to the ground? Or a few squatter families that lived in your condemned house that refused to move and the city wouldn't do anything about it so they filled all 11 toilets and 4 bathtubs with their feces and smeared it all over the walls when the landlord eventually forced them out?

Ohh, Whoops, that's my low income landlord drama…

There's an easy way and a hard way to manage your property. The easy way is to come to REI this Tuesday and listen to the stories that our members tell. Many of us have run into a number of interesting, irritating and or legal problems in our profession. It's good to hear these stories and how they were handled as it gives you an understanding on what to do or not do if and when it happens to you.

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