Monday, February 22, 2016

Tax Free Exchanges This Week At REI

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

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

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

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

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

Tuesday, February 16, 2016

Real Investors Know How To Protect Their Assets

Hello Fellow Real Estate Entrepreneurs,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

REI Dues Paypal Link

Tuesday, February 9, 2016

Property Management Skills That Make Life Easy

Hi Everyone,

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

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

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

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

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

See you there!

Tenant Tax Checks On The Way!

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

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

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

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

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

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

Some Bills You May Want To Watch

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

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

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

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

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

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

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

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

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

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

Tuesday, February 2, 2016

Back To Basics This Week At REI

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

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

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

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