BiggerPockets

Giving Up The Real Estate Goodies

Saturday, July 30

Being skilled in finding properties, structuring deals and knowing a great deal when you see one is all fine and well. These skills won’t make you 1 red nickle if you have no buyers to purchase the properties. It’s like having the best football coach in the world to lead your team, but no players to play on your team, what good does it do…..none.

So this Residential Real Estate Engineer will cover three (3) effective ways to attract ACTIVE investors to purchase the properties you have to offer. I’m not a fan of nor do I practice the “Good Ole Way” of finding buyers. You know what they are; Newspaper, For Sale Signs, and conducting showings and having people sign in.

Here We Go:

1. AUTO RESPONDER SERVICE – If you’re serious about investing then you need to have a website to send possible buyers to. Your site should have on or within it a place where your visitors can sign up for your list or newsletter. This allows you to have their name, email and number so you can conduct followups with them to see specifically what they are looking for. The auto responder program allows you to send emails to your massive list of potential buyers. We personally use and recommend Aweber, their service is good and reliable. Please refer to their site for all the features they offer.

2. HTML BANNERS – Assuming you have a website and you’re utulizing the services of a company like Aweber you need to drive active investors and buyers to your site so they can sign up. There is no better way to do this than with HTML Banners. What are they you ask, well in short it’s a code. A code in which you place your site address and the address of a picture that you place on your. When this code is placed on sites like Craiglist and the like, the picture shows up which allows the viewer to click on the picture and be redirected to your website where they signup to your autoresponder listing. It’s like magic. Here is the code -

<a href="Your Sites Web Address"><img src="Your Image's Web Address" /></a>

3. COMPUTER – This last tidbit requires you to do some computer work. Take the information I’ve provided and post your ad on any and every site that allows HTML banners. The best part about all of this is that it doesn’t require you to do anything when you have all the pieces in place. You can be in a deep, enjoyable needed sleep and have investors signing up all night long. Wow think about that.

I’m asking you, the reader to put into practice the information I have given you and return to give your input on how well it’s working for you. Thanks.

“success is a mindset, failure is an action”

Real Estate Q&A

Saturday, July 09

As your Residential Real Estate Engineer, I thought it would be a good idea to do an open Q&A session since I've been getting all these questions from various investors on a number of topics. My thought is, the questions I'm being asked in private may be the same questions other investors have but they have been afraid to ask.

Now, I'm not claiming to have all the answers but I'm willing to share and if you've spoken to me on the phone before you know what I'm talking about. If I can't answer your question directly I'll at least point you in the right direction so you can get your question answered.

So, here is what I propose;

Visit my blog Toledo Investment Deals Blog and ask your question in the comment section and I'll respond and answer there as well. I also welcome others input.

Fire away with your questions, let's get this Q&A session started!!!!!!!!!!

Why Flip Houses

Saturday, April 16

The Answer

There are many great questions to ask when it comes to real estate investing and one of the many that you should consider if you are thinking of flipping houses for your real estate investment is: why? Why flip houses? It certainly seems as though it’s a great deal of work and it is. It isn’t an easy task to take upon your own shoulders and yet many people around the world purchase houses each and every day for the purpose of flipping those houses. Why? Profit is the long and the short answer but it goes much deeper than that for many who are interested in flipping houses even if profit is the ultimate goal.

Some people really enjoy working with their hands. Purchasing a property in need of light cosmetic repairs and retouches is a great way to get your hands dirty without risking too much money, time or effort. Properties needing more serious work may require a pair of hands that have some degree of experience rather than hands that are best suited for balancing books. That being said if you want to do the work yourself and enjoy the prospect you may find that you can save a great deal of money if you use your own labor rather than paying for the labor of others when it comes to flipping a house.

Other people go into this line of work because the idea of giving a family their dream home is so appealing. When you go in and flip a house you are putting your sweat into creating someone else’s dream. You are taking something that may have been plain, ugly, or drab and turning it into a beautiful home in which they can build their dreams. While it may seem a little romantic, it is in a way. This is part of the beauty of flipping houses though; there really is no wrong reason to do it.

Some people choose this line of work because deep down inside they need the pain that goes into turning a lump of coal into a diamond. I think the literal term for these people (and really this could apply to anyone who decided to flip houses for a living) is masochist. The shoe fits for most people who flip houses. If they didn’t know going into it the first time they certainly know before they go into it a second time.

Then there are those that are simply driven by profit. There really isn’t anything at all wrong with that. Most of us would never get into this business if there weren’t some hope of a pot of gold on the other side of the rainbow. This is hard work and there are days that the promise of a pay off is the only thing that gets you out of bed and hitting the ground running yet again.

Just remember that at the end of the day it doesn’t matter what your goal in flipping houses is. What matters is that you show up day after day and do the work necessary to pull off your house flip. This is what makes the difference between those playing at flipping houses and those who are doomed to be one hit wonders in this brutal business. Of course, there are still those few who flip houses just for the sake of seeing the finished product when everything is said and done.

 

Houses to flip are readily available, 1 source is the Toledo Investment Deals.

Lease Options, Your Easy Home Ownership Plan

Saturday, April 16

Tax Deductible Rental Expenses

Saturday, April 16

Tax Dollars In Your Pocket

If you own rental property, it is important to make sure that you understand possible deductions in order to improve your profit margin as much as possible. As the owner of rental property, it is always a good idea to consult a tax attorney or tax consultant in order to ensure that you have a good understanding of the items which may be potentially tax deductible. Below is a guide to some of the most common items which are frequently tax deductible for owners of rental property.

One of the most important things which must be understood when you are determining what you may be able to deduct is the difference between improvements and repairs. Many owners of rental property commonly make the mistake of believing that anything they do to their rental property is tax deductible. This is not always the case; however. A repair is essentially anything that you do to the property in order to keep it in good condition. As such, it is often tax deductible for the year in which the repair is paid for. Common examples of repairs would include repairing a broken toilet, painting, replacing faulty light fixtures, etc.

An improvement; however, is something that you do to the property in order to add value to it. As such, it is not usually tax deductible at the time when you pay for them. That said; however, you may be able to recoup the cost of improvements by depreciating the cost over the life expectancy of your property. Common examples of improvements would include adding a garage to the property, a new roof, etc.

Mortgage expenses are often one of the biggest and most common tax deductions you can take when you own rental property. Of course, this is only an option if you have a mortgage on the property. It should be noted that any expenses which you incur in order to obtain the mortgage are not actually deductible at the time you pay for them. Common examples would include appraisals and commissions. Once you begin actually making the mortgage payments; however, you will typically be able to deduct the portion of the payment that is paid toward interest. It is always a good idea to keep very good records; however, you should receive a Form 1098 from your mortgage company that will detail how much you have actually paid in interest for that year.

In some cases, you may incur travel expenses in relation to caring for your rental property. Keep in mind that travel expenses are typically only deductible if they are incurred in order to either maintain your rental property or to collect rent. In the event you had to travel to make improvements to the property, these expenses are not deductible immediately. Instead; however, you may be able to recover the cost as part of depreciating the improvements.

It is important to keep in mind that you usually have two options when it comes to how you can deduct travel expenses. You may choose to deduct the actual expenses or you may choose to take the standard mileage rate.

There are also many other expenses which you may be able to deduct on your taxes. These expenses may include insurance, lawn care, taxes, tax return preparation fees and any losses which result from casualties such as earthquakes, floods, thefts, hurricanes, etc.

If the rental property which you own is a condo or a cooperative, there may be some special rules which will apply. For example, with a condo you may pay assessments or dues which are intended to provide for the care of property which is commonly owned. These areas would include recreational areas, elevators, lobbies and the actual building structure itself. When renting out a condo, you can typically deduct expenses such as repairs, taxes, interest and depreciation; however, you cannot usually deduct any expenses which were spent on improvements. These costs must be depreciated over the life expectancy of the property, just as it would be when you own a single family rental property.

With a cooperative, you may be able to deduct expenses such as maintenance fees. Capital improvements are a different matter; however. You would not typically be able to deduct the cost of improvements and you also would not be able to depreciate the cost. Instead, you would need to add the cost of those improvements to a cost basis in the stock of the corporation. If this situation applies to you, be sure to speak with a tax attorney or tax consultant.

Always make sure that you are prepared to back-up any expenses which you deduct on your taxes. These expenses must be carefully documented and you will need to make sure you provide documentation, including receipts.

For more information visit Toledo Investment Deals

Tax Dollars In Your Pocket

Saturday, April 16

If you own rental property, it is important to make sure that you understand possible deductions in order to improve your profit margin as much as possible. As the owner of rental property, it is always a good idea to consult a tax attorney or tax consultant in order to ensure that you have a good understanding of the items which may be potentially tax deductible. Below is a guide to some of the most common items which are frequently tax deductible for owners of rental property.

One of the most important things which must be understood when you are determining what you may be able to deduct is the difference between improvements and repairs. Many owners of rental property commonly make the mistake of believing that anything they do to their rental property is tax deductible. This is not always the case; however. A repair is essentially anything that you do to the property in order to keep it in good condition. As such, it is often tax deductible for the year in which the repair is paid for. Common examples of repairs would include repairing a broken toilet, painting, replacing faulty light fixtures, etc.

An improvement; however, is something that you do to the property in order to add value to it. As such, it is not usually tax deductible at the time when you pay for them. That said; however, you may be able to recoup the cost of improvements by depreciating the cost over the life expectancy of your property. Common examples of improvements would include adding a garage to the property, a new roof, etc.

Mortgage expenses are often one of the biggest and most common tax deductions you can take when you own rental property. Of course, this is only an option if you have a mortgage on the property. It should be noted that any expenses which you incur in order to obtain the mortgage are not actually deductible at the time you pay for them. Common examples would include appraisals and commissions. Once you begin actually making the mortgage payments; however, you will typically be able to deduct the portion of the payment that is paid toward interest. It is always a good idea to keep very good records; however, you should receive a Form 1098 from your mortgage company that will detail how much you have actually paid in interest for that year.

In some cases, you may incur travel expenses in relation to caring for your rental property. Keep in mind that travel expenses are typically only deductible if they are incurred in order to either maintain your rental property or to collect rent. In the event you had to travel to make improvements to the property, these expenses are not deductible immediately. Instead; however, you may be able to recover the cost as part of depreciating the improvements.

It is important to keep in mind that you usually have two options when it comes to how you can deduct travel expenses. You may choose to deduct the actual expenses or you may choose to take the standard mileage rate.

There are also many other expenses which you may be able to deduct on your taxes. These expenses may include insurance, lawn care, taxes, tax return preparation fees and any losses which result from casualties such as earthquakes, floods, thefts, hurricanes, etc.

If the rental property which you own is a condo or a cooperative, there may be some special rules which will apply. For example, with a condo you may pay assessments or dues which are intended to provide for the care of property which is commonly owned. These areas would include recreational areas, elevators, lobbies and the actual building structure itself. When renting out a condo, you can typically deduct expenses such as repairs, taxes, interest and depreciation; however, you cannot usually deduct any expenses which were spent on improvements. These costs must be depreciated over the life expectancy of the property, just as it would be when you own a single family rental property.

With a cooperative, you may be able to deduct expenses such as maintenance fees. Capital improvements are a different matter; however. You would not typically be able to deduct the cost of improvements and you also would not be able to depreciate the cost. Instead, you would need to add the cost of those improvements to a cost basis in the stock of the corporation. If this situation applies to you, be sure to speak with a tax attorney or tax consultant.

Always make sure that you are prepared to back-up any expenses which you deduct on your taxes. These expenses must be carefully documented and you will need to make sure you provide documentation, including receipts.