|
OF INTEREST INSIDE THIS ISSUE
1 |
Do your own DUE DILIGENCE ! |
2 |
The Bankruptcy Secret, Bob Diamond |
7/8 |
Tampa Bay REIA’s appreciated Vendors |
13 |
Accidental Landlord |
| 19 |
From Leads to Prospects via Website |
|
Most people are Ethical and professional. But unfortunately not everybody is; therefore
do your Due Diligence ! |
Tampa Bay Real
Estate Investors Association TBREIA.COM,
Over 850 Members Strong …
TBREIA Announcements
Dear Members, Volunteers, Sponsors, Vendors and Guests
Thank you for referring Tampa Bay REIA to your friends and Associates! We truly appreciate it.
Your TBREIA Team |
|
* * * * *
Ethical and professional
TBREIA’s goal, is and has been at all times, to work with ethical and professional Real Estate Investors, Vendors and Speakers only. Therefore, Tampa Bay REIA reserves the right to accept, reject or terminate services/ memberships to anyone based on Member reviews, without giving any justification to the Member or the service provider who is being rejected or terminated.
The PROPERTIES and SERVICES advertised through Tampa Bay REIA are NOT REVIEWED or Verified by TBRIEA Owners, staff or their volunteers.
Not Everyone’s “Opinion Of Value” will be the same as Yours.
You are to do all your own DUE DILIGENCE on all Services & Products prior to buying; especially when you decide to put your Ernest Money down on a property, AND before entering into a contract with a seller or investor.
|
|
|
|
Tampa Bay REIA www.TBREIA.com presents:
Buying in Today's Market: The Bankruptcy Secret
presented by: Bob Diamond
 SATURDAY, full-day Workshop October 6th, 2007 9AM- 5PM (latest)
At the Trade Winds, Beach & Conference Center. St. Pete Beach, FL 33706
Bob Diamond is a practicing real estate attorney, real estate developer, and published author of three books on foreclosure investing. You may be familiar with Bob from his appearances on FOX, NBC, or CNBC or on his real estate radio show.
Inside the investor world, Bob is known as the ‘guru’s guru’ and teaches advanced real estate investing techniques including buying discounted liens, notes and judgments, buying out of bankruptcy, short sales, taking under and subject to, straight equity purchases, multi-units and even condo conversions.
Because of his legal expertise and experience as a real estate attorney, Bob has been able to come up with systems to out-maneuver other investors and bag the best deals before anyone else even knows there’s an opportunity.
Bob has stayed on the cutting edge of market trends, industry evolution and tomorrow’s legal hurdles. Bob’s personal commitment is to share the wealth of knowledge that he has with the real estate buying public. Bob is the truly the working expert in foreclosures.
Bob has personally been involved in almost $100,000,000 in real estate transactions as counsel, advisor, investor or agent. Meeting Bob will truly build your investment knowledge and take it to the next level to create the deals to make you financially independent.
Bob has been investing for two dozen years and can teach you to profit from incredible pre-foreclosure deals for nets of $60,000 to $90,000 per deal. Bob has been able to maintain these margins even in the current competitive real estate investing market through use of his advanced real estate techniques and keen legal expertise. Bob will teach you to find the right deal, the right price, the right technique and the right profit.
 |
If you're looking for system that really delivers, Bob has got the key. And as you're going to hear for yourself; he's a straight up guy built on integrity and honesty.
Bob has personally been involved in almost $100,000,000 in real estate transactions as counsel, advisor, investor or agent. Meeting Bob will truly build your investment knowledge and take it to the next level to create the deals to make you financially independent.
Bob has been investing for almost two dozen years and can teach you to profit from incredible deals for nets of $60,000 to $90,000 per deal.
|
Bob has been able to maintain these margins even in the current competitive real estate investing market through use of his advanced real estate techniques and keen legal expertise. Bob will teach you to find the right deal, the right price, the right technique and the right profit.
-
Get the details on how to buy effectively in TODAY'S MARKET,
-
using new techniques like Buying Out of Bankruptcy!
-
How we can all harness the power of bankruptcy!
-
How you will start converting distressed property in as little as sixty days!
-
How you can stay ahead of the pre-foreclosure trends and market adjustments!
-
Use real insider legal secrets to harness extra deals each week!
Sign-up today reserve your seat by going to: www.TBREIA.com or call (727) 452-9648
|
|
|
|
Home and Income Realty * Supermortgage
|
|
SMI Financial Services, Corp, or Super Mortgage is located in the Tampa-Clearwater-St.Petersburg area in Florida. We cater to buyers from all over the country moving to Florida or investing in the Florida real estate market, as well as people already living, working and playing in Florida.
I have been in the mortgage industry for the past 8 years. My experience and training in all facets of the mortgage industry will provide you with informed, professional advice working to make sure your goals are met in every transaction. As a loan originator at SMI Financial Services Corp, I have access to hundreds of lenders, hundreds of programs, and a solid processing staff.
Through my commitment, experience, and expertise I establish a business relationship with my customers that will last a lifetime!
Call Bobbie Floerchinger at (727) 235 - 3181 today!
|
|
|
|
|
|
|
MyRealEstateWebsites.com
For All Real Estate Professionals
(Investors, Mortgage Brokers, Real Estate Brokers etc…)
Fully customizable Website !!!
|
|
THE $497 FEE IS
currently WAIVED!
Also your monthly maintenance
fee is waived for the first 30 days!
After that you pay
only $25 per month.
And for each additional
website only $5,-
|
We are positive that this is the most easiest, flexible, Customer orientated and self-manageable Website on the market !
|
Join our satisfied
Customers today! |
This is your chance to take advantage of this ridiculous introductory !
ZERO $$ -Zero Risk !! |
Monthly maintenance
Fee for only $29.95,- !!! |
|
|
Sign me up for my FREE Website and 30-day FREE maintenance service!
Name as it appears on Credit Card:
_____________________________________________
Complete CC billing Address:__________________________________________________
City _______________________________ State _________________ Zip _____________
Phone #:_____________________________ E-mail _______________________________
Credit Card number ________________________________________________________
C.C.-Expiration Date _______________________ C.C.Type ________________________
|
I’m allowing TechnoVestor, Inc. to charge my above credit Card $29.95,- on the 31st day after today. I have the right to cancel the Website anytime between day 1 up to day 30th , and my Credit Card will NOT be charged.
_______________________________________________________ ___________________________
Credit Card Holders Signature & Date__________________________ TechnoVestor, Inc authorized Rep.
visit online at: http://www.MyRealEstateWebSites.com
|
|
|
|
|
|
Did you hear the news that
ROCKED the Real Estate Market?
Did you hear the news that ROCKED the Real Estate Market?
American Home Mortgage, one of the nation's largest lenders, recently closed its doors when investors, skiddish over all the foreclosures in the sub-prime market, weren't interested in buying their performing mortgages. (Investors won't buy the good paper because so much of it is going bad!)
The nation's largest lender, Countrywide, recently had to suspend trading of its stock to avoid bankruptcy. The brokerage firm Merrill Lynch predicts that the lender could still go bankrupt if it doesn't sell off underperforming assets---like delinquent mortgages!
What does this tell you?
The lid is ready to blow right off this boiling hot Foreclosure Market!
Banks have been trying desperately to ride it out, but the pressure is on as experts predict that already astronomical foreclosure rates will triple over the next six months.
The Banks have to prepare for the onslaught! They already have an overload of houses they've taken back. What are they going to do with triple the amount of properties?
Banks are about to start dumping their defaulted loans like a hot potato. They're about to start discounting short sales and defaulted notes like you have never seen before. They don't have any other choice!
How can you cash in on this Golden Opportunity?
Learn more?? www.TheNoteBuyer.com
Donna Bauer
|
|
|
|
|
|
Pay off your Mortgage in as little as 8 -11 years!!!
LittleKnownBankingMethod.com
Escape the “normal” practice of repaying your Mortgage!!!!
Do you have a 10, 20, 30 or 40 year Mortgage?
Primary Residences, Secondary Residences or Investment Properties
! Stop paying the banks to use your $$$ !
Leverage the Banks $$ ! Put it to work for You !
Learn how this fantastic Interest Saving program has been working
for people all over Europe, Canada and now the USA.
Request a free complimentary, confidential Analysis Report today by calling either
More Testimonials at: www.LittleKnownBankingMethod.com
One of the most amazing things to us about this whole process is how we have been able to take our money that was just being wasted away or sitting in an account that made no interest and use it in an organized way and see how much difference it made in our progress towards paying off our mortgage. We’re not losing anything in the process... we seem to buy the same things that we always have but the money is just more efficiently used. I think that if we can do it, anyone could and it’s just an incredibly positive feeling. Some things seem like they’re too good to be true, but this one is the real deal.
- Lee and Carol Gross
|
|
|
|
|
TAMPA BAY REIA’S APPRECIATED VENDORS:
* Please mention that you are a TBREIA member when contacting our vendors for.
YourLearningCenter.com
- Standard Vendor
Providing Real Estate Investment Education.
Your Learning Center’s Fast Track Program
"Beyond The Basics" can help you make
Thousands of Dollars, Plus Save you Countless Hours
of Time!
Phone: (973) 761-7448.
info@yourlearningcenter.com
www.yourlearningcenter.com
ALDAY-DONALSON
TITLE AGENCIES - Standard Vendor
ALDAY-DONALSON TITLE AGENCIES OF AMERICA, INC.
is a leader in the title insurance market throughout
Central Florida. We are fourteen offices strong
and growing.
Office: (727) 323-2424
Fax: (727) 323-2626
Contact Chris Spangler MGR or
Jay Wazelle Marketing Rep
www.alday-donalson.com
Brokers Title - Standard Vendor
Specializing in Investor and traditional closings and escrow services.
Contact: Barbie Burgess
(727) 412-2304
www.BrokersTitle.net
Email: Burgess33779@yahoo.com
Lending One - Standard Vendor
LendingOne is the fastest growing Hard Money Lenders in Florida.
Whether you Buy to Sell or Buy to Hold, LendingOne s unique Loan programs will minimize your monthly payments while maximizing your profit potential.
Please call Richard Welch at:
(813) 645-8076
Web site: www.LendingOne.com
or email: RichardW@LendingOne.com
SuperMortgage (Bobbie Floerchinger)
- Standard Vendor
Senior Loan Officer Bobbie Floerchinger is investor
educated and works closely with real estate investors
in providing a wide range of loan products.
She
works in Pinellas, Pasco and Hillsborough. Mortgages
for investors and the homes they live in.
Phone: (727) 547-8776
Cell: (727) 235-3181
Fax: (727) 768-0773
bfloerchinger@tampabay.rr.com
InvestWell - Standard Vendor
InvestWell provides short term, interim financing to professional real estate investors and renovators.
These loans can be user for the acquisition, rehabilitation and resale of residental, single family properties.
Go to: www.investwell.com
tel: 214.237.3320
fax: 214.237.3321
email: info@investwell.com
Blue Chip Mortgage Whole Sale, LLC - Standard Vendor
Working with over 100 Banks nation wide!
Whether you have perfect credit, no credit or a tarnished credit history, we will find the perfect mortgage program to suit your needs.
Contact: Richard McMillan
Phone: (561) 547-6575 Ext. 216
Fax: (561) 540-2798
Mobile: (561) 756-1747
rmcmillan@bluechiponline.com
San Jose Investment Corp. Of America - Standard Vendor
Helping Real Estate Investors “Rehab for Profit”
We finance deals from $50,000.00-$1,000,000.00. We offer 6 or 12 Month Terms. - Up to 75% ARV.No Pre-Payment Penalties.
Contact: Donna Salvator
San Jose Investment Corp. Of America
Tel: (352) 428 - 4857
donna@sanjoseinvestment.com
www.sanjoseinvestment.com
Little Known Banking Method - Standard Vendor
Pay off your Mortgage in 8 – 11 years with the MMA system!!! This Program is for all types of Mortgages !!!
Ayla Willer, Independent Agent
AylaW@Tampabay.rr.com
www.littleknownbankingmethod.com
Phone: (727) 452-9648
Fax: (813) 354-3552
- Accounting / Tax Services:
Harper, Van Scoik & Company, LLP CPAs and Business Advisors - Standard Vendor
Whether you’re into rehabbing, flipping, wholesaling or buying and holding, we at Harper, Van Scoik & Company, LLP feel that we can be an asset to your business.
Please give us a call and let’s discuss how we can help.
Dave D. Burton, Charles D. Shapero,
Andrea Neenan or David S. Sietsma
E-mail : hvsinfo@hvs-cpas.com
Web site : http://www.hvs-cpas.com
(727) 446-0504 – Telephone number
(727) 461-7384 - Fax number
Keys Capital Inc - Standard Vendor
1031 Tax Free - 1031 Exchange
Personalized Exchanges since 1986. Experts in the Power of Strategy.
Jack Shea (Certified Exchange Specialist)
E-mail : jack@1031taxfreesale.com
Web site : http://www.1031taxfreesale.com
(727) 581-7000 – Telephone number
(727) 581-7865 - Fax number
- Realtors / Real Estate Companies
Harper
Realty Inc. - Standard Vendor
Providing real estate services to investors: either new or experienced. Bank REO's, fixer uppers and already rehabbed rentals.
Phone: (813)-956-3563 Email:
Sales@HarperRealty.com
Se Habla Espanol
Shawn M. Yesner P.L. - Standard Vendor
We are Investors friendly and very creative.
Legal solutions for Investors who want to Buy / Sell / Rent or Loan.
Contact Information:
Shawn M. Yesner
(813) 251-2921
shawn@yesnerlaw.com
www.yesnerlaw.com
HomeVestors Home Buyers Gulf Coast,Inc - Standard Vendor
Bank REO's, hard money, fixer uppers and already rehabbed rentals.
Contact: "Johnny B" Buczynski
(727) 447-5500
http://YourNewHomeIsReady.com
email: JohnnyB@homevestors.com
New Heights Properties of Tampa, Inc. - Building Contractor - Standard Vendor
New Heights Properties of Tampa, Inc. is here to help, so let us know what we can do for you.
Contact info: Brenda Ayala
NEW HEIGHTS PROPERIES OF TAMPA, INC. - Building Contractor
14807 Clarendon Drive, Tampa, FL 33624
(813) 238-8833
(813) 963-2277 fax
(813) 435-2398 e-fax
(813) 368-8823 cell
CBC 1254526
brenda@nhpoftampa.com
http://nhpoftampa.com
Chattel With Us, LLC – Standard Vendor
Serving all of Florida. Helping Income Producing Property Owners to maximize their return through:
- Improved Cash Flow
- Lowering Your Taxes
John Racine
P.O. Box 182058
Casselberry, FL 32718
(866) 788 - 4925
john@chattelwithus.com
http://www.chattelwithus.com
Investors Property Insurance - Standard Vendor
Vacant or Occupied ~ Any age – Any Condition ~ No updates required
Independent Insurance Agency Lic# L013091, FL Dept. of Financial Svcs.
Voice (321) 274 - 0343
Toll Free (866) 684 - 6868
Fax (407) 862 - 1819
E-Mail: agent@investorspropertyinsurance.com
Web Site: www.investorspropertyinsurance.com
Cartwright Realty Inc - Standard Vendor
Traditional real estate services for discounted price
Tiia Cartwright
tiia@cartwrightrealtyoftampa.com
www.cartwrightrealtyoftampa.com
phone:(813) 333-6698
Florida Patriot Realty - Standard Vendor
Buyers’ Broker - If you’re serious about buying, let Mark Wilson find or create your best deal.
Mark Wilson - Licensed Real Estate Broker
(727) 504 - 9615
mwilso21@tampabay.rr.com
TheRehabOutlet.com - Standard Vendor
Tampa Bay’s #1 Wholesaler!!!
P 813-935-3800
F 877-673-3297
WeSellHouses@TheRehabOutlet.com
www.therehaboutlet.com
Home and Income Realty - Standard Vendor
Your source for Rich Investing. 21 Point Plan of Action for Sellers to market your home.
Janet Montano; Broker.
Cell: (813) 956-3563
Fax: (813) 319-5690.
jmontano@HomeandIncomeRealty.com
http://homeandincomerealty.com
Altieri Transco American Claims - Standard Vendor
We adjust Property Insurance claims for Policyholders and are YOUR advocate in the claims process.
Raymond A. Altieri, Jr., CPPA
Cell: 813-695-8639
Email: ray@transco.tv
Office: 813-247-4757
Fax: 813-242-4590
www.altieritransco.com
TechnoVestor - Standard Vendor
Web sites, databases, marketing and many more high tech solutions for serious real estate investors who want to take their business to the next level. Also software for starting and/or managing real estate investment associations.
Dan Stojadinovic
Web Site: www.technovestor.com
Web Site: www.prospectizer.com
Entrust of Tampa Bay, LLC - Standard Vendor
Your Professional Support team
Contact: Jack M. Callahan, JD, CFP™
www.TheEntrustGroup.com
Tel: 727.581.9853
800.425.0653
Fax: 727.585.0754
Little Known Banking Method - Standard Vendor
Pay off your Mortgage in 8 – 11 years with the MMA system!!! This Program is for all types of Mortgages !!!
Ayla Willer, Independent Agent
AylaW@Tampabay.rr.com
www.littleknownbankingmethod.com
Phone: (727) 452-9648
Fax: (813) 354-3552
Innercoastal Hauling INC.- Standard Vendor
We offer very reasonable prices; Residential/Commercial
Jim Gardner, President
727 – 465 – 4650
Email: jim@innercoastalhauling.com
www.innercoastalhauling.com
The Loan Corporation - Standard Vendor
Control more Real Estate ... Create more Wealth
Email contact: please click here
Website:www.tlcfl.com
Contact Phone: (800) 957-7622
Contact us for:
Elite Vendor and Sponsor-ship Opportunities
Looking to advertise your business on
TBREIA’s Website and in the Newsletter for one price?
Call Ayla Willer at: (727) 452-9648.
Or email her at: AylaW@TBREIA.com
|
|
|
|
|
TBREIA’s Advertising Catalog, 2007.
 |
| Elite Vendor, 3 nonconsecutive Saturday’s, 3 min. speaking ,3 out of 3 events, website- live link |
|
| Annual Vendorship, live-link, Scrolling Banner, Newsletter,table at the general meeting |
|
| TBREIA picks up & distribute your Marketing Material (each time - Service Fee) |
|
| Current TBREIA Vendor, Newsletter, one Full page |
|
| Current TBREIA Vendor, Newsletter, one ½ page |
|
Pre-pay for one year:
(You receive 12, pay only for 11) |
Deduct
price of 1
|
| Non-TBREIA Vendor – one Full page |
|
| Non-TBREIA Vendor – one ½ page |
|
Pre-pay for one year:
(You receive 12, pay only for 11) |
Deduct
price of 1
|
| |
|
|
| Webinar (45 min.) stays online for 3 months |
|
| |
|
|
One Email-Tagline
(Your website link will be send to TBREIA’s entire list) |
|
 |
1 x Saturday Sponsor
3-minute speaking, listed in Newsletter, table |
|
1 x General Meeting Sponsor
3-minute speaking, listed in Newsletter, table |
|
|
|
All above advertising opportunities will be implemented after payment is received. Prices and Options may change without any prior notification.
TBREIA reserves the right to accept and / or decline Vendors application.
Contact us at: Phone: 727-452-9648 / Fax: 813-354-3552 / www.TBREIA.com / AylaW@TBREIA.com
Name as it appears on Credit Card:
_____________________________________
Complete CC billing Address:____________________________________________
City _______________________________ State _________ Zip _____________
Phone #:_________________________ E-mail ____________________________
Credit Card number __________________________________________________
C.C.-Expiration Date _____________________ C.C.Type ___________________ |
|
|
How to make $2500-$5000 for
Foreclosure lease back leads?
Dear Investor,
Would you like to have a source to sell your Leads for $2500 - $5000?
Now YOU can make GREAT money selling leads to ME that you just cannot close.
Neighborhood Solutions, Inc. is a local company that provides alternative Financing when borrowers have been turned down by all other lenders including conventional and Hard Equity Lenders.
We are looking for the following:
1. Homeowner that cannot be refinanced anywhere else
2. Minimum House Value $80,000
3. Minimum 25% equity in the home after payoffs
4. They must want to keep their home.
5. They must be cooperative with Neighborhood Solutions, Inc.
Email D.C. Fawcett at dcfawcett@gmail.com
for a Deal Finder Application (813) 298-2358
Get Paid a Minimum of $10,000 to Find Commercial Properties that I Buy!!!
My Name is D.C. Fawcett. I am not only an Expert in Pre-Foreclosure, Short Sales, Lease Backs, and Forbearances; I also am a Commercial Property Investor.
I’m looking for more commercial properties to buy and I need your help. I pay a minimum of $10,000 Finders Fee for leads of Commercial Properties that we purchase. The best part is you get paid on the Purchase. Now, this fee is adjusted up depending on how profitable the deal is and how much equity it has in it.
I also have partnership opportunities if you qualify. If you have money to invest and would like to put your money into a commercial project with a boat load of Equity, send me an email at dcfawcett@gmail.com and request an Investor Application.
If you would like to begin referring Commercial deals to me to make Huge Finders Fees, email me at dcfawcett@gmail.com and Request my Commercial Buying Criteria.
P.S. I also Do Foreclosure Lease Backs to People in or Facing foreclosure that have equity and want to stay in their homes. I pay $2500-$5000 per lead based on the equity and profit in the deal. If your customers can’t afford a forbearance and don’t qualify for a REFI, this is the perfect solution because there are no out of pocket costs for them. Email me at dcfawcett@gmail.com for more info and how to start referring lease back deals to me. |
|
|
|
|
L.T.S.C.
L.T.S.C. UPDATE from: Trust Service Corporation
to keep our clients up to date on legal and business matters.
Land Trust Service Corporation
Tel: 863-678-0011, P. O. Box 186
Lake Wales, FL 33859
Fax: 863-678-0155
http://www.floridalandtrust.com
Email: landtrust@warda.net
Please contact us well in advance of any trust transaction.
We are sometimes out of town for an afternoon or a day and if your closing papers arrive without notice and if
needed the next day your closing may be delayed.
Secretary of State Allowing Private Mailbox LLCs
When we called the Florida Secretary of State to point out that they weren’t following the new LLC law that allowed LLCs
to use L.C. until December 31st (see below) we were put through to one of the big bosses who spent a long time on the phone with us explaining a lot of interesting workings of their office. One thing disclosed, although the registered agent statute doesn’t seem to allow it, they are interpreting the service of process statute to allow private mailbox companies to be listed as registered agent for corporations and LLCs.
We teach Florida Secretary of State the Law
When we attempted to file some of the last “L.C.” companies in July we found that the Secretary of State’s web site said they weren’t allowed although the new law ended them effective December 31st (see L.T.S.C. UPDATE No. 12). When we phoned to ask why, they said the law changed July 1st. When we said that our copy of the law said December 31st, they referred us to a supervisor who did some research and said they were using an old version of the law and they didn’t realize the date should be December 31.
Latest Legal News
Foreclosures: In reviewing some recent foreclosure complaints we see that banks are now filing foreclosures sooner than they did in the past. Also, some of them are not asking for a deficiency judgment when a property is in trust. Tax deeds: The courts are tougher now on tax deed sales and if the former owners didn’t get actual notice the tax deed might be voidable. Minimum wage: Florida’s minimum wage is now $6.67.
Cities Overcharging on Taxes
The recent runup in property values gave Florida governments a windfall of new money and they have gotten used to having a lot of extra money for their pet projects. A recent state law requires cities to lower their tax rates, but some cities are violating the law by refusing to lower their rates. Some are threatening to cut important services like police and fire instead of cutting out pet projects. Keep an eye on your local taxes and contact your representatives if you don’t like your taxes.
Insurance Refunds
We still have a few insurance policy refunds that don’t say which trust or property they are for. Most are Citizens but one is Southern Oak. If you are missing a refund, send us your policy number and we will see if it matches the refunds.
Tax Bills
Property tax bills start arriving in early November. Because of the new tax laws they may be slightly late. We will be
forwarding them to you within a day or two of when we receive them. Our office will be closed the first week of November but we will be forwarding the bills if they arrive that week.
Insurance
When putting a property in a land trust, be sure that you ask your insurance agent to add the trust or LTSC to your policy. For more info on insurance and a list of trust-friendly insurance agents see our web site at www.warda.net/Resources.html.
Land Trust Service Corporation
Tel: 863-678-0011,
email: LandTrust@Warda.net
P. O. Box 186, Lake Wales, FL 33859
Fax: 863-678-0155,
http://www.floridalandtrust.com
|
|
|
|
|
Harper Realty * Transco Altieri
|
Accidental Landlords
By David D. Burton, CPA , Charles D. Shapero, CPA, and David Sietsma, CPA
It’s a story that we’ve heard repeatedly over the years. Clients that have decided to move to another residence, but find it difficult to sell their present home. One way to weather a soft residential selling market is to rent out your present home until the market improves. If you are thinking of taking this step, you no doubt are fully aware of the economic risks and rewards. However, you also should be aware that renting out your personal residence carries potential tax benefits and pitfalls.
Once you begin renting your home to others you must report rental income on your return (unless it is only rented for 14 days or less) but are also entitled to offsetting deductions for the money you spend on utilities, operating expenses, and incidental repairs and maintenance (e.g., fixing a leak in the roof). Additionally, you can claim depreciation deductions for your home. You can fully offset your rental income with otherwise allowable landlord-type deductions. However, under the tax law passive activity loss (PAL) rules, you may not be able to currently deduct the rent-related deductions that exceed your rental income unless an exception applies. Under the most widely applicable exception, the PAL rules won't affect your converted property for a tax year in which your modified adjusted gross income doesn't exceed $100,000, you actively participate in running the home-rental business, and your losses from all rental real estate activities in which you actively participate don't exceed $25,000.
You should also be aware that potential tax pitfalls may arise from the rental of your residence. Unless your rentals are strictly temporary and are made necessary by adverse market conditions, you could forfeit an important tax break for home sellers if you finally sell the home at a profit. In general, you can escape taxation on up to $250,000 ($500,000 for certain married couples filing joint returns) of gain on the sale of your home. However, this tax-free treatment is conditioned on your having used the residence as your principal residence for at least two of the five years preceding the sale. So renting your home out for an extended time could jeopardize a big tax break. Even if you don't rent out your home so long as to jeopardize your principal residence exclusion, the tax break you would have gotten on the sale (i.e., exclusion of gain up to the $250,000/$500,000 limits) will not apply to the extent of any depreciation allowable with respect to the rental or business use of the home for periods after May 6, 1997. A maximum tax rate of 25% applies to this gain (attributable to depreciation deductions).
Some homeowners who bought at the height of a market may ultimately sell at a loss. In such situations, the loss is available for tax purposes only if the owner can establish that the home was in fact converted permanently into income-producing property, and isn't merely renting it temporarily until he can sell. Here, a longer lease period helps an owner. However, if you are in this situation, you should be aware that you probably won't wind up with much of a loss for tax purposes. That's because basis (cost for tax purposes) is equal to the lesser of actual cost or the property's fair market value when it's converted to rental property. So if a home was bought for $300,000, converted to rental property when it's worth $250,000, and ultimately sold for $225,000, the loss would be only $25,000.
The question of whether to turn a principal residence into rental property isn't easy to resolve. We can review your situation in detail and guide you to an answer that makes the most sense for you. Please don't hesitate to call for an appointment. We look forward to hearing from you.
Harper, Van Scoik & Company, LLP –, CPAs and Business Advisors.
ACOUNTING AND TAX SERVICES:E-mail: hvsinfo@hvs-cpas.com
Web site:www.hvs-cpas.com Telephone number: (727)446-0504
|
WHY PRIVATE MONEY IS SO
IMPORTANT TO YOUR BUSINESS PLAN
WHY PRIVATE MONEY IS SO IMPORTANT TO YOUR BUSINESS PLAN
ARE YOU READY TO BE THE BANK?
“DON’T BE WHERE THE PUCK IS, KNOW WHERE IT IS GOING!!!” Wayne Gretzky
Our job as investors is to anticipate market changes and be in the midst of it before everyone else is. Time stands still for no one including investors’ which makes it even more important to move now. So let’s talk about……..MONEY!!!
Banks were historically the main source for financing on properties both residential and commercial. The rates were competitive until you were so successful you couldn’t borrow any more money. Banks don’t like traditional borrowers to have more than 4 properties. Next came Hard Money Lenders. They served and still serve an incredible purpose. However, for those of us in the investment world, they are very expensive on the front or back of the loan and are expensive on a monthly basis. What’s next? Private Money.
If you left a job 20 years ago and never moved your 401K, you have an amazing opportunity to be a Private Money Lender by converting those funds to a self directed IRA. For the lender (you) the return on his/her investment over the last 10-12 years has been 6-10%. That number consists of stocks, property, mutual funds, high yield investments, pension funds, 401K’s and international investments. Nothing wrong with a 6-10% return that is consistent over a very long period of time. But what if you could make more on an investment secured by real estate? Investors come across properties every day by all imaginable sources, and they generally have people they can sell properties to if they decide not to buy it themselves-wholesaling. What does that mean to you as a Private Money Lender? It means you can effectively become the bank to the borrower and make the interest on that house for the term of 12 months. I don’t ask any Private Lender to put out more than 60-65% of the after repaired value (ARV) of the home so you are protected. If a borrower defaults, you foreclose on a home with 35-40% equity. At closing, you will receive the same documents any lender gets at closing - a mortgage, promissory note, title insurance, hazard insurance. Because the loan is for a short period of time, the money is back in your IRA and you are free to do it all over again. At closing, you get your initial investment and your simple interest of 12% for the number of days the borrower used your money. It is a great way to generate residual income.
So what now? Make a decision about your financial future. Decide if you want to be in control of how much you earn on your money. Be where the puck is going in order to capitalize on an incredible financial opportunity.
Written by: Brenda Ayala,
President of New Heights Properties of Tampa, Inc
New Heights Properties of Tampa is a full-service real estate investment company.
http://nhpoftampa.com/brenda@nhpoftampa.com / Cell (813) 368-8823
|
|
|
|
| |
