Preview:

Is that loud sound you hear the real estate bubble bursting?

It's no secret that in the last few years the US economy has been kept afloat through the large number of dollars flowing from cash-out refinancings. Watch out, because the tide is changing.

Inventories of homes for sale across the US are at a 19-year high and affordability is at a 14-year low. Statistics show that home prices have started falling and home ownership has begun to decline.

Home starts in February were down 7.9% from a year earlier and new home sales in January dropped by 5%. Wait... continue reading >>

Preview:

If you've owned real estate for the last two or three years chances are you feel like a financial genius. In many areas real estate values have climbed to dizzying heights.

I hope you have resisted the temptation of easy money home equity loans. If so, you're now sitting on a big, fat profit. It may have entered your mind that the big run up in real estate prices could be nearing a peak and those values could come barreling down. Oh no! That would mean your big, fat profit could become thin as a rail in a New... continue reading >>

Preview:

One of the most powerful tools in a real estate investor's bag of tricks is the 1031 Exchange. When used properly it can defer the tax on capitals gains almost indefinitely.

A 1031 Exchange is really very simple. You don't actually have to trade one property for other... you just must use the gain from the sale of a income producing property to buy another income producing property. There are a few simple rules you must follow. One rule is that you have to complete the transaction within a prescribed time period.

The other requirement of a 1031 Exchange... continue reading >>

Preview:

It wasn't long ago that the records of real property title could be found in a collection of huge, thousand page books residing in the office of the county recorder. Now those same records are all electronically stored in a computer database.

Before computers recording a change of title meant tedious paper handling by both title insurance companies and county recorder employees. Not any more.

With the advance in technology, more and more companies are recording documents electronically. It works like this:

1. The recording department of the title company electronically scans the documents that must be recorded.

2.... continue reading >>

Preview:

Most of us who are small real estate investors buying and renting single family homes are accustomed to making every dollar count. It's that habit that causes us to make a silly decisions when we advertise a house for rent.

Just take a look at the Home For Rent classified section of your newspaper. You will see rows of two or three line ads that all seem to blend together in an uninspired glob. Yes, I know newspaper ads are expensive, but have you ever stopped to think how much a bland three line ad is really costing you?... continue reading >>

Preview:

Deeds are simply documents that transfer title from one person to another. There aare many different types of deed, but basicly they just transfer title.

Let's talk about a "quit claim deed".

A quit claim deed is a type of deed where a person (grantor) with an ownership interest in a property transfers that interest to another person (grantee). The grantor offers no guarantees about the title to the grantee recipient. Don't confuse a quit claim deed with the type of deed that is normally used to transfer title to real estate. That is most often a grant deed... continue reading >>

Preview:

Experienced real estate investors know that you make your deal when you buy. If you pay too much or have not done your due diligence research, that's tough, because you're stuck with the deal after the close.

A buyer still has some wiggle room during the time the deal is under contract. There are a few time worn "weasel" clauses used by some investors. They will read something like, "Purchase is contingent upon approval of buyer's attorney." Or a more legitimate clause would be, "Purchase is contingent upon a home inspection report submitted by a licensed home inspector and... continue reading >>

Preview:

Landlords and tenants alike just want a pleasant relationship, so that each can live in peace. No landlord should ever allow a tenant to move into their rental property without first requiring the prospective tenant to completely fill out a rental application.

Among the important questions that should be answered on the application are:

- Place of current employment?

- Length of employment?

- Name of bank?

- Social Security number?

- Do they have pets, if so what kind?

- Number of vehicles?

- How many occupants will live on the... continue reading >>

Preview:

Gather around children for a tale of royal power. Far back in history the king owned everything. (Does that remind you of Donald Trump?). Occasionally the king would grant property to a duke. Property ownership meant wealth, so the king would demand that the duke pay yearly taxes. To this very day much of the money that supports government comes from property taxes, for you see children, government is still king.

If the property owner fails to pay the tax the county government places a lien on that property. Every year property tax liens are sold at auction to... continue reading >>

Preview:

When an investor owns and manages apartments he or she often has to make tough decisions.

Here's an example of one:

Barry and Terri, husband and wife, are tenants in a four unit apartment building. They have a stormy relationship that one evening erupts into a violent domestic dispute. Terri calls police. The incident isn't quite exciting enough to be included in an episode of "Cops", but Barry is arrested and charged with domestic violence assault.

Directly after the arrest the couple separate and Barry lives elsewhere.

The next day the landlord serves Terri with an eviction notice for... continue reading >>