R U A BLESSING ?????
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A Return is Requested....You'll see why.
Breakfast at McDonald's
This is a good story and is true, please read it all the way through until the end! (After the story, there are some very interesting facts!):
I am a mother of three (ages 14, 12, 3) and have recently completed my college degree. The last class I had to take was Sociology.
The teacher was absolutely inspiring with the qualities that I wish every human being had been graced with.
Her last ... continue reading >>
Chapter Twenty
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The Importance of Record Keeping
Keeping accurate records is important to insure your financial success…and to keep IRS happy. You can begin by setting up a simple bookkeeping system using Quicken or one of the other popular computer programs.
You can set up ledgers to account for each income and expense item you will incur in the operation of your property. These include:
Income Received:
Income from Rents
Income from Other sources, such as coin laundries
Common Area Maintenance (CAM) charges in office buildings
Advance Rents and Security Deposits:
Some states require you keep security deposits... continue reading >>
Chapter Nineteen
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When and Why You Need to Sell Your Property
Before we get into the best reason to sell, here are some other common reasons you may want to sell your property.
1. You are having problems with the property. If you did your homework before you bought, this reason should not be a factor. The only exception would be a drastic market turndown where everyone is suffering, regardless of how they invested their money.
2. You need some instant cash. Selling under those conditions is both difficult and costly. A better approach may be to refinance the property,... continue reading >>
Chapter Eighteen
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You Own It, Now What Do You Do?
You should have made a tentative decision during the negotiation phase of buying the home, what you intend to do with it once you own it. You, as you recall, have three choices:
1. You can renovate it, if that is what it needs and turn around and resell it at a profit. You need to sit down, as we did earlier, and see how much you can earn by flipping the property as soon as the renovations are completed.
This is where you will... continue reading >>
Chapter Seventeen
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What to Expect at the Closing
The first thing you can expect is that a guy by the name of Murphy will show up at the closing. He has some kind of law that requires him to show up when you least expect it and try to foul thing up.
Generally, if you did your homework and the closing agents did theirs, Murphy will not have much to do. It could be a little thing, like a minor financial error in the closing statement that they did not catch until you reached the day of closing.... continue reading >>
Chapter 16
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Chapter Sixteen
Understand Closing Costs and Closing Statements
Before the day of closing, or a couple of days before, you should receive a closing statement outlining how much cash you will need at the closing, unless you were able to successfully negotiate a no cash down transaction.
Here is a typical closing statement as it might look if you were to purchase the house we have been using in our examples at a price of $105,000, assuming the first mortgage of $85,000 and the seller carrying a second mortgage in the amount of $22,000.
First we’ll take... continue reading >>
Help Us Please !!!!
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Dear Friends:
The Economic Empowerment Coalition (EEC) has developed a program that offers financial literacy, wealth building strategies, life skills training, business development and home buying workshops, in addition to providing $600,000 of direct financial assistance to their families in the Mt. Pleasant community and surrounding areas.
The program is a 5-year plan whereby two-hundred (200) participants are engaged in individualized education and financial literacy workshops that will give them an understanding of the principles of finances and wealth building strategies, combined with a dedicated match savings program that allows participants to save toward the... continue reading >>
Chapter Fifteen
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How to Negotiate With a Lender
The first rule you must believe, and this was pointed out in Chapter Eight when we discussed financing, is that bank loan officers are in a business like anyone else.
Their business is to loan out money at a higher rate of interest than they pay their depositors.
It’s their business, like selling shoes or fast food, only they “sell” money.
The point is, do not be intimidated by the gorgeous fifteen story, all glass bank building with marble floors and plush furnishings with their name in ten-foot... continue reading >>
Chapter Fourteen
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Chapter Fourteen
How to Create a Win-Win Situation with a Seller
The first thirteen chapters in this book have all been geared to one goal:
Locate a motivated seller who owns a property that you can buy at a below market value and give the seller what he needs and wants in the process.
Finding the right property is of no value if the seller feels you are taking him for a ride and taking advantage of his need to sell (which you are, of course, but this is where “empathy” comes in again).... continue reading >>
Chapter Twenty-One
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How to Avoid Taxes on the Sale of Your Property
We should begin by clearing up two misconceptions about getting out of one investment property and into another without paying taxes on your profits.
First of all, the title to this chapter is really incorrect. You cannot “avoid” paying taxes. You are merely “deferring” taxes. Sooner or later, IRS will probably still get their share. I say ‘probably’ because a little later in that chapter, we’ll suggest a way that you can really avoid paying capital gains tax on your profit.
The second misconception is that, like your... continue reading >>