The Lazy Investor
WOW! I just got off the phone with my CPA and we have come up with something that is totally blowing my mind!
This is one of those DUH! moments in life where you just can't believe what is happening - one where it seems that everything about it must be wrong, illegal or at least fattening!
I mean, how is it possible to actually have a method of picking up a check for just over $200,000 - and not pay tax on it - EVER!?!?!?
That's what we just came up with - and, it looks like we are going to have several properties coming our way that fit into the same category - a true 'niche market'!
I'm excited (I'm sure you can't tell....) - this could be really HUGE!
Of course, I need a bit of time to go through it, but it looks legal, moral, and most of all - PROFITABLE!
More on this as it develops!
Tuesday, October 26, 2004
Saturday, October 16, 2004
The Lazy Investor - an update
The Lazy Investor
Still no calls from the constable's office..... Guess I should ask for my $45 back???
Well, at least the tenants are gone. They even left the property in 'broom clean' condition. After what we saw a couple days before - I thought for sure it would take a week to clean it, but they got it done quickly.
Of course, the place still needs a good cleaning. It looks like they didn't ever wash dishes or clean the bathroom sinks (we have pictures, but I don't think you want to see them!).
The appraiser did come though and gave me a 'thumbs up' on getting the price I wanted. So, that is something good.
I put up a sign on the garage and in the front window, and have already had a couple interested calls. Also put an ad in the paper - have yet to see anything from that.
Ok, more on deals and things later. Have a good weekend!
Still no calls from the constable's office..... Guess I should ask for my $45 back???
Well, at least the tenants are gone. They even left the property in 'broom clean' condition. After what we saw a couple days before - I thought for sure it would take a week to clean it, but they got it done quickly.
Of course, the place still needs a good cleaning. It looks like they didn't ever wash dishes or clean the bathroom sinks (we have pictures, but I don't think you want to see them!).
The appraiser did come though and gave me a 'thumbs up' on getting the price I wanted. So, that is something good.
I put up a sign on the garage and in the front window, and have already had a couple interested calls. Also put an ad in the paper - have yet to see anything from that.
Ok, more on deals and things later. Have a good weekend!
Tuesday, October 12, 2004
Appraisals and appraisers....
The Lazy Investor
Appraisers are funny people.
We can't live without them, but who can understand them?
Property values are based on comparable sales, right?
Comparable sales (comps) come from the MLS, right?
Well, then, just why is it that we need appraisers?
We need them because they bring us a 'neutral third party' - someone that is not involved in the transaction. Since the MLS is a Realtor(r) thing, it is possible that if we relied solely on the agent, they might want to 'skew' the results to a slightly higher mark - resulting in their higher commission.
If the seller would have a representative looking into the MLS for the comps, they, too, would most likely take the highest prices - to get the highest price.
Just as likely is the fact that, if the buyer's side of the transaction would be the one to give the final evaluation, the price would be on the lowest sales in the area.
Appraisers are there to give us a 'non-biased' opinion - something based on facts and figures only, and are suppossed to be totally neutral.
What seems to be the practice of 'neutrality', though, often gets swayed back to the side of 'who paid for the appraisal'... If the seller paid for it, the appraiser is inclined to work hard to 'bring in' the property value where the seller wants it. If the buyer pays for it, the same thing is true - bring it in no higher than the offer is made.
I guess there is really no '100% fair' way to get an appraisal. After all, we are all human. Even if it were a state-run thing, where some state agency would send the appraiser out to do the job, there would still be some influence from the person that let them in the house. Maybe we should let the state agency open the place for us, too? Heck, why don't we just have the state take care of everything for us - including sending us food, money and clothing? Maybe they would even send someone out to wipe our noses for us too?
I think I'd rather take my chances with an Appraiser!
Happy Investing!
Appraisers are funny people.
We can't live without them, but who can understand them?
Property values are based on comparable sales, right?
Comparable sales (comps) come from the MLS, right?
Well, then, just why is it that we need appraisers?
We need them because they bring us a 'neutral third party' - someone that is not involved in the transaction. Since the MLS is a Realtor(r) thing, it is possible that if we relied solely on the agent, they might want to 'skew' the results to a slightly higher mark - resulting in their higher commission.
If the seller would have a representative looking into the MLS for the comps, they, too, would most likely take the highest prices - to get the highest price.
Just as likely is the fact that, if the buyer's side of the transaction would be the one to give the final evaluation, the price would be on the lowest sales in the area.
Appraisers are there to give us a 'non-biased' opinion - something based on facts and figures only, and are suppossed to be totally neutral.
What seems to be the practice of 'neutrality', though, often gets swayed back to the side of 'who paid for the appraisal'... If the seller paid for it, the appraiser is inclined to work hard to 'bring in' the property value where the seller wants it. If the buyer pays for it, the same thing is true - bring it in no higher than the offer is made.
I guess there is really no '100% fair' way to get an appraisal. After all, we are all human. Even if it were a state-run thing, where some state agency would send the appraiser out to do the job, there would still be some influence from the person that let them in the house. Maybe we should let the state agency open the place for us, too? Heck, why don't we just have the state take care of everything for us - including sending us food, money and clothing? Maybe they would even send someone out to wipe our noses for us too?
I think I'd rather take my chances with an Appraiser!
Happy Investing!
Just got a call from the 'dead-beat' renter
The Lazy Investor
Well, strangely enough, I haven't had a call from the constable's office to make the lock-out happen, but I did get a call from the renter - telling me they are out and ready for me to pick up the keys.
So, I guess it is off to meet with them - in the morning... to get my keys back.
I tried to get them today - told her that I would come get them right now - but, she is crafty - wouldn't tell me where she is right now and only wants to meet at the property.
This is a clue for you - renters are often smarter than you! They spend tons of time finding out how to 'get around' paying you, putting you off until the last minute, etc. and will delay everything you need to do (like getting someone else in the property) for as long as they can.
I'm sure she knows that I can't really do anything until the constable does the lockout - heck, she has probably been through this before...
Make sure you are keeping everything legal, and understand that Real Estate doesn't move really quickly - although, when you have a payment facing you in a short time, you want it to!
Also, be sure you are prepared for events just like this one - make sure you have at least a buffer in your bank account for a renter to tie you up for awhile - even a full month (and maybe more...)
I had to make 2 full payments on my first eviction, and will likely have 2 or more on this one (and with the market like it is today, it may be several!)
That's all part of Real Estate investing, though...
Make sure you are covered in all your investments.
I'll be in touch soon!
Happy Investing.
Well, strangely enough, I haven't had a call from the constable's office to make the lock-out happen, but I did get a call from the renter - telling me they are out and ready for me to pick up the keys.
So, I guess it is off to meet with them - in the morning... to get my keys back.
I tried to get them today - told her that I would come get them right now - but, she is crafty - wouldn't tell me where she is right now and only wants to meet at the property.
This is a clue for you - renters are often smarter than you! They spend tons of time finding out how to 'get around' paying you, putting you off until the last minute, etc. and will delay everything you need to do (like getting someone else in the property) for as long as they can.
I'm sure she knows that I can't really do anything until the constable does the lockout - heck, she has probably been through this before...
Make sure you are keeping everything legal, and understand that Real Estate doesn't move really quickly - although, when you have a payment facing you in a short time, you want it to!
Also, be sure you are prepared for events just like this one - make sure you have at least a buffer in your bank account for a renter to tie you up for awhile - even a full month (and maybe more...)
I had to make 2 full payments on my first eviction, and will likely have 2 or more on this one (and with the market like it is today, it may be several!)
That's all part of Real Estate investing, though...
Make sure you are covered in all your investments.
I'll be in touch soon!
Happy Investing.
Evicting a dead-beat renter...
The Lazy Investor
I really hate evictions.
They are work for me, and unpleasant for everyone involved.
But, sometimes, you have to do them...
This time, it is from an unhappy Lease Purchase Tenant Buyer that didn't follow through with their promises (and what I clearly explained to them to do - which is to clear their credit up).
The sad part is that they have been in the house for over a year and have paid their rent on time every month. They've been quietly living there, with no issues at all.
In fact, until yesterday, I had never even seen the house! Yes, I bought it and put the folks in there the LAZY way! And, there hasn't been any reason to go there - until now...
They didn't pay their rent this month and only called me last week to tell me they were moving out. I did ask them for a follow-up letter and they did send it to me, so there is no issue with that!
Now, though, they are still in the house - after telling me they would be out last Friday. So, I had to go to the court and file another complaint (and pay another $42) and this morning I should get a call from the court to proceed with the eviction. I'm no expert on this part - yet. I did it once before, but with a process service. This time, I couldn't find them (out of business, I guess). I did find another service that helped with the first step, but I need to learn this myself, too. Of course, the next time I need an eviction done, I'm calling a service again!
So, these folks are almost moved out. I got a call that the house was left open yesterday, so I went to go secure it.
WHAT A PIG STYE! The place was a total mess - dog hair everywhere, filth like I've never seen! INCHES of dirt all over the place! Clothes piled up here/there and a few pieces of junk furniture scattered in a couple rooms. Sure looks like they left!
We thought they intentionally left it like that - a 'get back' at us or something...
But, then, we saw stuff in the garage. Looked like stuff they might want - tools and such...
And, while we were securing the place, they came back to get more of the junk! So, we know it wasn't an intentional dirtying of the place - that's how they were living!
WOW! Hey, if you don't believe me, come to the next Boot Camp - I'm going to show the video of this place - you won't believe it!
So, that's the 'news that's fit to print' for now.
A bit later, I expect a call from the constable's office and I'll fill you in on that as it comes along....
Happy Investing!
I really hate evictions.
They are work for me, and unpleasant for everyone involved.
But, sometimes, you have to do them...
This time, it is from an unhappy Lease Purchase Tenant Buyer that didn't follow through with their promises (and what I clearly explained to them to do - which is to clear their credit up).
The sad part is that they have been in the house for over a year and have paid their rent on time every month. They've been quietly living there, with no issues at all.
In fact, until yesterday, I had never even seen the house! Yes, I bought it and put the folks in there the LAZY way! And, there hasn't been any reason to go there - until now...
They didn't pay their rent this month and only called me last week to tell me they were moving out. I did ask them for a follow-up letter and they did send it to me, so there is no issue with that!
Now, though, they are still in the house - after telling me they would be out last Friday. So, I had to go to the court and file another complaint (and pay another $42) and this morning I should get a call from the court to proceed with the eviction. I'm no expert on this part - yet. I did it once before, but with a process service. This time, I couldn't find them (out of business, I guess). I did find another service that helped with the first step, but I need to learn this myself, too. Of course, the next time I need an eviction done, I'm calling a service again!
So, these folks are almost moved out. I got a call that the house was left open yesterday, so I went to go secure it.
WHAT A PIG STYE! The place was a total mess - dog hair everywhere, filth like I've never seen! INCHES of dirt all over the place! Clothes piled up here/there and a few pieces of junk furniture scattered in a couple rooms. Sure looks like they left!
We thought they intentionally left it like that - a 'get back' at us or something...
But, then, we saw stuff in the garage. Looked like stuff they might want - tools and such...
And, while we were securing the place, they came back to get more of the junk! So, we know it wasn't an intentional dirtying of the place - that's how they were living!
WOW! Hey, if you don't believe me, come to the next Boot Camp - I'm going to show the video of this place - you won't believe it!
So, that's the 'news that's fit to print' for now.
A bit later, I expect a call from the constable's office and I'll fill you in on that as it comes along....
Happy Investing!
Today's thoughts
The Lazy InvestorWell, today has already been a good day - and it isn't even 9:30 yet!
We have figured out how to make the Blogger thing work and publish it on the web - pretty cool stuff!
We have figured out how to make the Blogger thing work and publish it on the web - pretty cool stuff!
Saturday, October 09, 2004
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