Are You Tired of Tenants, Toilets, and Trash?
By Paula Straub

Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip to Tahiti?

Before selling your property, check with your accountant who
will tell you that you will be paying $60,000 in Capital
Gains Tax to Uncle Sam. Your accountant will also tell you
that adding another $20,000 to your income by that sale is
called recaptured depreciation. This will bump you into the
next tax bracket and doom you next April 15th into sending
the IRS a check for maybe another $7,000.

Are you still ready to sell that property?
It looks like that trip to Tahiti is going to be sometime in
the far future!

But wait! You decide to check with your realtor and then
find out about a 1031 exchange to defer your Capital Gains.
Your realtor tells you if you buy another like-kind rental
property of equal or greater value, you won't get hit with
the gains tax on the sale. That is all fine and good, but
it does not really get you out of the headaches associated
with collecting rent, keeping your unit occupied, finding
clean/classy tenants that won't trash the place, nor does it
keep you from getting that 2am call to fix an overflowing
toilet. To top this off, now you have to pay more in
property taxes and must charge higher rent.

Hmm--maybe this idea is not the ticket to that South Pacific
paradise either.

This is the dilemma I heard from my financial clients again
and again. They were frustrated and felt trapped in their
current situation. So what is a frustrated income property
owner to do? After a lot of research and roadblocks, I found
the perfect solution that has changed the lives of my
clients and took away stress to bring enjoyment of life.

For anyone who is tired of being a landlord and who owns a
rental/commercial property that has gone up a lot in value,
take heart.
A 1031 exchange into a Tenant In Common Property may be your
answer.

There are very specific rules to follow set by the IRS, and
the entire detailed process is the subject for a future
article, but here's the gist:

1-Sell your current income
property;

2-Before the close of escrow, you declare via a Qualified
Intermediary (also called an Accommodator, who is a
qualified third party) that you intend to do a 1031 exchange
into a Tenant in Common Property;

3-Work with a reputable
company to identify a property that you would like to
purchase an interest in;

4-At the close of escrow, your
proceeds are transferred by the Accommodator to purchase
your proportionate share of a larger "A" rated commercial
building;

5-You may choose a business center, a medical
office building, or similar high-end property; and lastly,

6-You get a deeded interest in this property, so you can
keep it, resell it, pass it to your heirs, or even gift it
to charity upon your death.

The way that this works is all the new fractional owners, or
"Tenants in Common" hire an ace Management Company to handle
all the property management tasks. The company finds and
keeps high quality tenants, does the maintenance and
upgrades, pays the property taxes, and handles all the day
to day crisis that arise. Probably the three most important
factors in this entire process are:

1-Your choice of company
that offers the properties for sale;

2-the Accommodator,
and;

3-the management company.

Make sure each of the three parts is a top notch with proven
track records. Anything less could spell disaster.

When this 1031 option is done properly, your benefits will
be:

Deferral of all Capital Gains,

A monthly contractual income (usually based on 6-7% return
on equity),

Building depreciation for tax savings,

Unlimited property appreciation potential, and

No more headaches of property management.

Good-bye Tenants, Trash and Toilets!
Hello Tahiti!

Paula Straub is a Financial Advisor, Insurance Agent and
Mortgage Loan Originator in San Diego, CA. As a successful
business owner, Paula strives to guide clients to financial
independence in the most timely and efficient manner
possible.

(c)Paula Straub - All Rights reserved

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Tax? I'll teach you for free in a Teleconference that may

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Article Source: http://EzineArticles.com/

Buying a Home: The 5 Biggest Mistakes that a Home Buyer Makes

By Donald Lawson

As a Professional Real Estate Inspector I get to see and hear the right and wrong things people do when buying a home. These 5 tips will help you choose the right Real Estate Agent the first time.

Mistake #1: Not using an agent at all or using the Listing Agent as your 'Agent'. Not smart at all. By law, the listing agent is required to keep the Sellers best interest at stake, not yours! Why would anyone enter into a relationship handicapped like this?

I’m not aware of any state that makes a Buyer pay for their Agent. The Buyers agent normally gets paid from a cut of the Listing fees or the commissions are split.

If you choose wisely, you can put a trained real estate professional on your side for free! A true Buyers agent can help you negotiate a contract, fly through the mountain of paperwork, help you find the right home and help you schedule the needed inspections and appointments necessary when you do find your dream home.

Mistake #2: Relying on the Home Inspector your Agent recommends: I’m still amazed at how many people will blindly take the advice and recommendation of their Agent, or of the Listing Agent, when choosing an Inspector.

The agents have a financial stake in seeing the deal go through. Why risk the conflict of interest by solely relying on their choice of Inspectors? With a little research you can find your own home inspector who will have your best interest at stake. Don’t know where to start? The American Society of Home Inspectors (ASHI) has an easy to use search tool on their web site. You can choose by zip code or by state and city. You can find it here:
http://www.ashi.org

Mistake #3: Putting up “Non-Refundable” earnest money. This is like giving the Sellers a check and saying, “Here, you keep this. Even if we don’t buy your home, you can keep our money”. That’s just plain stupid. If your Agent recommends it, find another agent because they don’t have your best interest at stake.

I’ve seen Sellers request up to a $20,000 non-refundable earnest money check. Luckily my Client had a good agent and she told the Listing Agent “That is the most ridiculous thing I’ve ever heard. We’ll give you the standard $1000 refundable earnest check. Take it or find another Buyer.” The Seller accepted rather quickly since her home had been sitting on the market for 5 months.

Mistake #4: Falling in love with the home: “Earth to love struck home Buyer, they’re building more homes every day!” The one group of consumers I see getting taken advantage of the most are those that “fall in love” with a home.

They will accept any terms set by a Seller. They will buy the home and tell themselves “It just needs a little work, I can do that myself.” Even though they have never picked up a hammer in their life. They let their “love” cloud their vision and Judgement and end up paying hefty ‘stupid tax’.

Mistake #5: Buying more home than what they can afford. There is a rule of thumb that says you should not buy a home that cost you more per month that 20 to 25% of your take home pay. I rarely see anyone following that rule of thumb today.

What I do see is consumers buying homes that take a large part of their monthly income. This leaves little room in their finances for emergency’s, furniture, vacations, investing, etc. With the relaxed lending requirements, people are buying way more home than what they can realistically afford. If you go down this road, chances are that you’ll grow to hate this home. You should own a home, the home should not own you.

I’m not a real estate agent, broker or attorney, nor am I a financial consultant nor do I claim to be an expert in any of these fields. The above views are my own and have been obtained from experiences in the Home Inspection field. Always consult with your financial planner and/or Real Estate Agent before making any decisions.

Donald Lawson is a Professional Real Estate Inspector licensed in Oklahoma (454) and Texas (#5824) and currently owns V.I.P. Home Inspections in Houston Texas. V.I.P. Home Inspections is a multi-inspector firm that inspects both commercial and residential inspections. You can find out more by clicking on this link to his site: http://www.best2inspect.com

Article Source: http://EzineArticles.com/

How to Find and Buy a Bargain House with Little or No-Money Down

by Jeanette Fisher

Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly.

Bargain houses also open up a way for first-time home buyers to buy with little or no savings for a down payment. If you want to reduce the amount of down payment needed to buy a house, get the seller to pay your closing costs. In a hot seller's market when more buyers compete for the same properties, you either need to increase the purchase price to cover your closing costs or find a distressed seller.

A bargain house may be in bad shape or the seller may be distressed. Home sellers who suffer from problems such as job loss or transfer, divorce, death, pending foreclosure, and lack of funds sell fast for less. Often these sellers offer incentives to the buyer, like paying the buyer's closing costs.

A distressed house may also be a "doghouse," a dump, or a fixer. Owners of fixers are not always distressed sellers, but they may still feel pressure to get rid of their problem house.

How to Find a Distressed Seller

Look for listings and advertisements with the words "make offer," "fixer," "must sell immediately," "handyman's special," "divorce," "owner transferred," and "owner help with closing costs." If you see two or three of these clues, you know you've found an anxious seller.

Discovering the seller's problem and finding a solution is the key to buying a bargain property from a seller under pressure. Perhaps the seller needs to close quickly; in this case, a buyer ready with financing in place with a lender who acts fast can make an offer with a short escrow. Prepare yourself for quick action by getting your credit and financing in order before you go home shopping.

How to Buy a Distressed House

You must understand that a property also needs to qualify for financing. Extreme fixers in poor condition don't qualify for a 100% purchase loan. However, houses needing only cosmetic upgrades easily pass a lender's inspection. If you find a great bargain fixer, make sure that the house will pass health and safety codes. Sometimes home buyers will help the seller with little changes that make a house "loanable." Minor changes like covering exposed wires with switch plate covers, which cost as little as 19 cents, and repairing broken windows can make the all the difference in passing inspection.

If you need help with your closing costs, find yourself a distressed seller under pressure to sell. Not only will you get help with funds needed to buy a home, you might also get a great purchase price and be on your way to making your future investing in real estate.

Copyright (c) 2005 Jeanette J. Fisher-All Rights Reserved.

Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars, and other books teaches real estate. She loves to help first-time home buyers get into a home. For a free 30-page "Credit Tips for Mortgage Financing" report, go to http://recredithelp.com

For more information for beginning real estate investors, see http://www.doghousetodollhousefordollars.com

What Does Your Dream Home Look Like?

Many women I know got into the flipping houses business because they desired a dream home. My friend Ruth bought and sold many fixers on her way to buying her dream home on the St Johns River in Palatka. Of course she also had to make enough money to retire early so she could move to Florida.

Another friend of mine sold her dream home to buy five fixers. She told me that her dream home really didn't make her happy and that it took too much time to keep up, even with hired help. After flliping her five houses, she bought an oceanfront condo and went travelling.

Maybe your dream isn't a home at all. Whatever your goals, if you want to make extra money flipping houses, transform your fixers into your buyers dream home.

Copyright (C) 2005 Jeanette J. Fisher. All Rights Reserved.
Doghouse to Dollhouse for Dollars:
Using Design Psychology to Increase Real Estate Profits

Sell Your Home for Top Dollar FAST!
Design Psychology for Redesign and Home Staging

Las Vegas Real Estate Investment Club

Join the Las Vegas Investment Club and benefit from over 100 members.

I'll being speaking about how to build strong credit for financing multiple investment properties July 14 at the Gold Coast Hotel & Casino, 4000 West Flamingo Road.

Thursday 7/14, 7-9:30 PM

Get the credit you need to buy your dream home or financial future.

Apple Green Book Cover and Cars

My husband insisted that I get a new car because we no longer need a van to drive children around. New cars cost as much as a down payment on a house that makes us money, so I was reluctant to purchase a car that loses money.

I test drove the new Caddie and Lincoln. Ho-hum. Then my children told us about a car they saw the same color as my Doghouse to Dollhouse for Dollars book cover. I love apple green colors. My new Mustang convertible is FUN to drive, and it matches my book cover!