Real Estate Commentary

Determining Your Investment Property Value

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Tue, 21 Feb 2012 11:37:00 PST

A good Real Estate Investor is constantly looking for motivated sellers that are offering deals they can make a substantial profit on. Investors have to determine what they are willing to pay for this asset without losing money in the process. There are several problems that can occur with this investment objective :

Finding Motivated Sellers. In order to make a substantial profit, investors must offer a purchase price substantially lower than the Seller is willing to accept. If the Seller doesn't negotiate with you on price or terms you are wasting your time. Move On!
Determining the Maximum Allowable Offer MAO. This formula allows real estate investors to determine the MAXIMUM price they can offer the seller and still make a profit.
Determining the Property's Repairs Costs. Sellers are usually motivated to sell their property because the asset or themselves are in a state of distress. As investors purchase multiple properties they get pretty good at determining the cost to bring the property back online.
What is the After Repair Value APR? What will be the property's value be after cleanup and repairs are done? You need comparables to assess the property's value. The Multiple Listing Service MLS is a fantastic source for retrieving sale and property information but:
- MLS is only available to Realtor Associations.
- You have to be a Realtor Association Member.
- Costs money to be a member:
  - Realtor License Fee.
  - Association Membership Fees.
  - Continuing Education Fees.

What if you don't have access to the MLS to determine property comparables or COMPS? How are you going to determine a property's value if you don't have access to information about the neighborhood?

Don't Worry!

There is plenty of information on the internet. Most counties in the United States provide free data concerning all the properties they currently have on their tax rolls. We provide a page on our web site that lists Property Information and Clerk of the Court data for each of Florida's counties.

Once you have determined the following items:

Repair Costs.
If you are financing the deal, Principle and Interest or P&I and closing costs.
Monthly Fees like:
- Electricity and Water Access.
- Insurance.
- Taxes.
Determine the After Repair Value APR.

you will need to plug in these numbers into the MAO formula to determine your MAXIMUM Offer Price.

YOU MUST never, never, never, ever go beyond that price or you will lose money and the MAO price is only good for 90 days! It is based on a three month window.

Related Links, Blog Postings, Presentations or Articles:

In the very near future we will provided a short video below this blog posting that will help determine a property's After Repair Value APR in Miami-Dade County, Florida.

Written by Bob Burns.

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Never Quit!

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Telephone #: 305-300-6242
email: sec8@planocho.com

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Did You Know a Section 8 or Plan Ocho Voucher is Portable?

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Tue, 14 Feb 2012 22:33:00 PST

While interviewing April Johnson from Miami-Dade Public Housing Agency MDPHA I heard the term "Portability" being used in our conversation. I was familiar with transferring vouchers but I never heard the term portability being used. I decided to ask her what exactly did this term mean.

April mentioned that any tenant that had a Section 8 Voucher in good standing, could live in the jurisdiction of a housing authority anywhere in the United States that is administering a tenant-based (Section 8 Voucher) program including Puerto Rico and the Virgin Islands.

But there are certain guidelines and facts that you must be aware of:

Don't take for granted that the rules are the same for each housing authority. Each PHA has its own rules, regulations and deadlines that you must follow.
Fair Market Rent limits or payment standards may be different for each Public Housing Office PHA. Remember they are calculated by Zip codes.
The utility allowance may be different and may affect the rent amount you pay. Florida utility bills are much higher than Puerto Rico. I know because I lived in both places.
Rental subsidy standards may be different. I can recall the differences in subsidy payments from Miami-Dade to Homestead Offices. These offices are in the same county.
The new housing authority will issue you a different voucher, which may change the size (number of bedrooms) that you maybe eligible for. I can't tell you how many times this issue would come up while discussing voucher transfers.
If you decided to transfer you have to re-verify your income and do a background check. One of my tenants was kick out of the program because her son, not her, was caught dealing drugs. You may open a can of worms for yourself.
If you are new to the Housing Choice Voucher Program, you may have a waiting period before you can transfer to another jurisdiction of a housing authority.
If you decide to use the portability option of your voucher, make sure you contact your home office to start the paper work. This may take a while so give yourself some time.
Oh yeah, you better have an idea of where you want to go! Your home office can't do much if you can't tell them where you are going. You may want to visit the new housing offices so you can get an idea what will be involved and GET contact information to present to your current HOME jurisdiction.
By moving you are going to incur changes in your cash flows; security deposit, rental down payment, different tax structure, cost of living changes, insurances, education, transportation...on and on and on.

What does "Portability" have to do with real estate investing you ask? Miami-Dade Florida is a popular destination for voucher transfers and can be another channel in your marketing efforts to get tenants into your rental properties.

Do you have any experience with Section 8 voucher transfers? If so, tell us about it in the comments area below!

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns.

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No Fear Baby!

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Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com

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Real Estate Funding Company Links [del.icio.us]

rkburns — Mon, 13 Feb 2012 23:16:10 PST

Real Estate Funding Company Links [del.icio.us]

rkburns — Mon, 13 Feb 2012 04:33:00 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Sun, 29 Jan 2012 16:23:01 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Sat, 28 Jan 2012 16:24:25 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Fri, 27 Jan 2012 16:25:19 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Thu, 26 Jan 2012 16:26:07 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Wed, 25 Jan 2012 16:26:29 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Tue, 24 Jan 2012 16:27:10 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Mon, 23 Jan 2012 16:27:20 PST

Real Estate Investment Commentary REIC: Do You need FUNDING to be a Real Estate Investor? [del.icio.us]

rkburns — Mon, 23 Jan 2012 14:14:56 PST

Do You need FUNDING to be a Real Estate Investor?

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Mon, 23 Jan 2012 13:42:00 PST

Eventually a Real Estate Investor will hear about a deal that is too good to pass up but their CASH is all tied up in another deal. There are no funds to purchase or repair! Time to borrow money!

But before the phone call is made, Investors need to:

Act Quickly before the deal is sold to another investor.
Ask questions about:
- Will the owner accept "No Money Down?" If not, what is the minimum down payment?
- Can the down payment be something other than cash?
- Will the owner hold paper? If so, up to what percentage?
- What are the monthly carrying charges? (Insurance, utilities...)
Determine the properties Maximum Allowable Offer MAO so you can make an offer that is going to make you money quickly.
Make sure you have multiple exit strategies.

Once you feel comfortable about the terms of the deal, time to dial your Lender's number! Good Real Estate Investors always have funds available 24/7 to take advantage of transactions that magically appear.

Lenders are adverse to risk so here are some questions you should ask the funding entity:

What states are they licensed to lend money?
Will they fund the deal based on the After Repair Value ARV (good) or the contracted price on the Purchase Agreement (bad)?
Will they fund the repair costs?
Is there a Prepayment Penalty?
How long can the investor borrow the money for?
Up to what percentage will they fund? If your contracted price is $150K and they will only fund 70% what is the total amount that they will lend? Answer:$105K. That means you have to come up with $45K. OUCH!
If needed, can the investor get more time?
What are the repayment terms? Are these terms negotiable?
Are there any Closing Costs, Points, Etc.?
What are the Minimum and Maximum amounts I can borrow?
Are there funds available 24/7 to take advantage of NEW investment opportunities?

Every real estate transaction is unique so there are different type of loans you can use for each deal depending on the parameters. Here are a few names you have probably heard of:

Conventional
Hard Money (Quick but expensive)
Private Money Lender (Best Option)
Transactional Funding (Good for Short Sales)

These all serve a purpose and have advantages and disadvantages for real estate investors.

Here is a list of lenders that you can work with. Web Links are below:

Bridge Loan for Multifamily Properties

Bedford Lending Introduces 7% Interest Rate Bridge Loan
For Distressed Apartment Investors

Hard Money Lenders

Brookview Financial

Capital Funding

Financial Help Services

Hard Money Today

Hard Money Lenders Directory

Onward Financial

PeachStone Capital

Rehab Funding

Wooden Nickel Funding

Florida Hard Money Lender

Private Money Lenders

View Alan Cowgill's Private Money Webinar - Raise all the PRIVATE money you need for your Real Estate Transactions.

Mr Private Money

Trajan Financial CORP.

Transactional Funding (Good for Short Sales)

iV Transactional Funding

One Day Funding

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns.

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I Love Fort Myers Beach!

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Telephone #: 305-300-6242
email: sec8@planocho.com

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Secure Your property for before Rehabbing!

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Wed, 21 Dec 2011 11:28:00 PST

After completing several property rehabs in Miami-Dade County, Florida, I wanted to try something out of the county but still in Florida. My parents lived in Sarasota, Florida so I thought this would be a nice place to start. Distance would be an issue but my father was down for the winter and he could check up on the progress being made on the individual properties. Also, my Dad is an electrical contractor which brings many rehab benefits but that is a future REIC posting.

I found a duplex FOR SALE fairly quickly on Debbie Street, Sarasota due to the advantage of attending Sarasota REIA group meetings on Florida's Gulf Coast. Other than the distance, four hour drive, I felt this would be like any other rehab.

I decided to start in February with a two week property visit. Well during that time, several problems arose that I didn't experience before, like:

Most of the properties were on well water. Hard on the pipes, fixtures and tasted awful. Our duplex had city water service which was a blessing but caused me a problem I had to resolve.
Septic Tanks! No county sewer systems had been installed. The drain field was the front lawn and it was clogged.
Clothes Washer waste water line emptied onto the backyard lawn.
Pine trees over fifty high. Pine needles build up on the roof and lawn.
Gravel driveway that the neighbors thought they could use to park their cars.
Drug addicts lived about 50 yards away in an apartment.
On and On and On....

But the one problem that cost me the most in time and money was the city water lines.

Apparently it was very expensive to get connected to Sarasota's water system due to high impact fees. Impact fees are the city's way to tax you for hooking up to the water system network. You have to pay for the following:

Impact fees
Installation fee for digging up the street and installing the water meters.
Hire a plumber to run lines from the city's water meters to the duplex's water system.
Had to pay twice since it was two separate water meters, one for each unit of the duplex.

Luckily, my duplex already had these meters installed by a previous owner. The problem was the neighbors knew this and thought they could help themselves to the city water from our duplex. They would go to our outside water fixture and fill their 5 gallon water containers.

By the end of the month, I had a very large water bill which I couldn't figure out why? My rehab contractor said he never used too much water. I thought I had a water line leak from the meter to the duplex.

One day in July, my rehab contractor said he saw one of the neighbors filling up their containers and told me about it. I was flabbergasted but realized that this was going to be an ongoing problem!

Below is picture containing the anti-theft water system parts and installation video.....

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns.

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Life is a Beach. Go Find Yours!

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Telephone #: 305-300-6242
email: sec8@planocho.com

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Ten Reasons Why Your Real Estate Deal Fails at the Closing Table!

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Fri, 11 Nov 2011 13:58:00 PST

Having bought and sold many properties I can tell you that deals can blow up right at the closing table.

When I decided to buy my first home in Miami, Florida due to my wife's pregnancy the deal blew up in less than 45 minutes into the closing. I was going to sell my 1 bedroom condo on Brickell Avenue and purchase a 3/2 home in Coconut Grove on the same day! What could go wrong?

Mistake!

The Buyer of my apartment came to the closing but could not close the deal due to late arrival of the bank funds. The Tile Company refused to close that afternoon and wanted to do it the next morning.

Well needless to say, I was MAD!

I was going to use the excess monies from that Brickell Avenue deal as a down payment on the Coconut Grove purchase.

The current owner of the Grove House threatened to take my $12K deposit since we couldn’t close on the contracted date.

Thank God I had an attorney draw up the contract. There was a "subject to funding" clause in the contract

Note: Always have a Real Estate Attorney review your contract template. Check our Service Providers List for our preferred real estate attorney in South Florida.

The next day we closed but I couldn't sleep that night.

Soooooo….just because you have a contract doesn't mean you're going to close!

Below is a list I put together with help from Joseph F. Suarez that provides Ten Reasons Why Your Deal Fails at the Closing Table! (Sellers Beware):

You Contract is not Correct – Too many mistakes can occur right here like wrong Platt numbers, improper property description, wrong dates, etc.
No Financial Commitment By the Buyer
1. No Money in Escrow
Title Problems
1. More/Different Sellers on Title
2. Seller Not on Title
3. Illegal Title Transfer
Buyer has Collections & Judgments
1. Check out the Buyer
Deteriorating Market – Current Real Estate Market
1. Deteriorating Market Value
2. Deteriorating LTV Ratio .
3. Deteriorating Interest Rates
Open Permits and Liens – Hurricane Andrew caused a lot of problems with Open permits in Southern Dade County. I can’t tell you how many times I have been nailed on this item!
Fraud/Foreclosure/Google – Again, Buyer Beware!
Water & Waste Lien – This problem appears a lot with commercial properties that only have one water meter.
Property Doesn't Qualify for Financing – Tax rolls list it as a 2/1 one but you think you are buying a 3/2 Uh?!
Uninsurable Property – Property in a Flood zone, property not up to current code, etc.

Related Links, Blog Postings, Presentations or Articles:

Can't Find a Good Real Estate Attorney? Check out this list of Real Estate Service Providers.

Written by Bob Burns.

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Yeah Baby!

Real Estate Investor
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com

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Top 20 Most Common Reasons Why Units FailSection 8 Inspections.

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sat, 08 Oct 2011 18:27:00 PDT

One of your hats that you wear as a real estate investor is being a landlord. As a landlord, your job is to maintain the properties and keep them rented.

Keeping your properties fully occupied throughout the year increases your cash flow and provides a better return on your investment ROI but can be a difficult task! The longer a Unit remains unoccupied the less ROI landlords are going to have.

Below are several channels available to landlords to find qualified tenants:

Retail Market - Newspapers, Word of Mouth, Church, For Rent Signs on property, internet, etc...
Multiple Listing Service MLS - Database Realtors use to find rental properties for their clients
Section 8, Plan Ocho, Sec 8, Plan Eight, Plan 8, Section Eight - Government subsidized rental payment plan.

The more channels you have, the greater possibility of finding a qualified tenant for your unit. SPEED is essential for success. Any delay will hurt ROI.

Section 8 will eliminate a lot of the drawbacks of being a landlord but you have to follow HUD's guidelines to be successful.

One part of the guidelines is the unit or property must pass an interior and exterior inspection. If you fail the inspection, more delays and your ROI will be affected. Being prepared for the inspection will help make the rental transaction a smooth process.

From my experience with Section 8, below is a list of items that will fail a HUD inspection:

Smoke alarms missing or not working.
Lack of ventilation in bathroom.
Outlet covers missing or broken.
Infestation by bugs or vermin.
Absence of handrails where 4 or more consecutive steps.
Utilities disconnected (must be connected).
Hazards (i.e. tripping as a result of floor covering or exposed electrical wiring.
One window in each room must open and have a screen.
Chipping paint on the outside of the building – gutters, outside surfaces of building.
Hazardous hole or trash in the yard.
Door not sealed properly (light can be seen coming through).
No hot or cold running water.
All windows must have sash cords or balancers and must stay in the open position without assistance.
All ceilings must be at least 7 feet in height in areas used for living, sleeping, etc….
All steps to landing or basements have handrails.
Baths without windows must have power fan or gravity vents in high rise buildings.
Open electrical distribution box must be covered with appropriate cover.
Windows in bedroom too small and will not qualify as areas for sleeping.
Security bars (rejas) can’t be opened from the interior will not be allowed to remain.
All bedrooms must have a built in closet.

I provided pictures of potential failure points below. Can you identify what would cause a failed inspection item?

Click on each image to view a larger photo!

Have you any experience with Section 8 inspections? Share them with US!

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns. ####

Yeah Baby!

Real Estate Investor
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com

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Miami Dade Housing Choice Voucher Program Building

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sat, 10 Sep 2011 07:16:00 PDT

HUD's fourth largest Section Eight or Plan Ocho program in the nation is managed by Miami-Dade Public Housing Agency MDPHA. It is a management nightmare! I remember the old Coral Way offices and waiting hours to see a Landlord case worker. The county decided to outsource the management of Miami-Dade Public Housing Agency MDPHA's Housing Choice Voucher Program. Miami-Dade awarded a multi-year contract to Quadel Consulting. They are responsible for:

Section 8 Voucher Program
Section 8 Home Ownership Program
MDPHA Family Self Sufficiency (FSS) Program

This allows the MDPHA to save money and increase processing efficiencies.

Landlords, this is a great program to use for renting your investment properties. When a unit becomes empty, the clock starts ticking. You are losing MONEY! You need to lease this unit as soon as possible! Adding Section 8 or Plan 8 to your marketing funnel, increases the probability of finding a qualified tenant.

I put to together a simple video below that shows you the outside of the Miami Dade Housing Choice Voucher Program Building. Go down there NOW and set up an appointment to discuss the Landlord Program. Address is: 7400 NW 19th Street, Bay H, Miami, Florida 33126. Don't expect an appointment right away. They will schedule you via a 3-4 week window. Sorry, it is what it is!

Related Links, Maps, Blog Postings, Presentations or Articles:

Written by Bob Burns.
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	Change! Nothing Stays the Same. MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Miami-Dade Public Housing Agency MDPHA schedules meeting for Section 8 Landlords

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sat, 03 Sep 2011 19:00:00 PDT

Since REIC's blog discusses Section 8 or Plan Ocho in Miami-Dade County, I thought this news item should be posted. The budget for the US (United States) has gone through some serious cost cutting. HUD's Section Eight or Plan 8 will not be exempt from the reduction of funding. Section 8 landlords that have Section 8 HCV tenants or future landlords considering Section Eight, this meeting is vital for you to attend. I am SURE all the changes to the HUD' Sec. 8 program will be discussed by the Miami-Dade Housing Authority staff. Below is the meeting information:

"The Executive Director of MDPHA invites all owners and landlords with Section 8 (HCV) tenants to meet with him and his staff to discuss the HUD Financial Outlook and Changes. The changes impact: Payment Standards, Rent Reasonableness and Rent Increases.

Date: September 15, 2011
Time: 4:00-6:00 p.m.
Location: Port of Miami - 1015 N America Way to Terminal J Miami, FL 33132.
Security will require all owners and landlords to have registered for the meeting or they will not be able to gain access. You will also need to have a photo ID.
RSVP: September 6, 2011
E-mail: landlord@mdvoucher.com
Fax: 305-629-1032
Phone: 305-403-3222

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns.
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	"Be Viral!" MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Top 10 Real Estate tips and tricks from Southern Florida

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sun, 21 Aug 2011 11:24:00 PDT

I was a young teen when my father started buying investment real estate in Southern New Jersey (Sea Isle, Avalon and Stone Harbor, Cape May County, New Jersey). He was a man that could do everything himself so being a real estate investor seemed like a good option for me since I knew a little about it. Boy was I WRONG! It is very difficult and frustrating but rewarding. I could give details but that is for another time.

While buying, rehabbing, landlording and selling in Southern Florida, I learned several tips, tricks and lessons that helped me during the investment cycle. These items will help you avoid mistakes, save time and money and make the process a little easier to manage.

To Your Success as an Investor, Rehabber and Landlord:

Make sure you have the mail forwarded to your business address after you purchase a new investment property....Why? Read my previous blog about this one at: Make sure you have the mail forwarded blog...
Check to see if you have any liens or violations caused by your tenant before giving back their security deposit. I got nailed for $500 for a pit bull violation (future blog posting).
Make sure during a title search that your title company checks for Open Permits. More than once this has hampered a pending sale.
Make sure when a potential client places a deposit for a rental property, you make them sign a document that explains the rules of the deposit, refund or non-refund terms, what it represents, disclosures, etc. Several times I received calls from potential clients wanting their deposits back after you, the landlord, already took your property off the market. Protect Yourself.
You make or lose money on an investment property when you gain control of the property at a specified price. Make sure you follow the Maximum Allowable Offer MAO rule! See my MAO blog about this....
When purchasing an investment property, make sure the tax records match the property description on the MLS. If the property is listed as a 3/2 but tax records say a 2/1, there may be a problem with the structure being legal.
By checking the number of water meters and electrical meters will help you tell whether the multiunit structure is a legal structure.
Make sure when you are about to sign any real estate contract for a property: Florida FAR BAR, short sale option contract, purchase contract etc., all parties are there for signature. If the significant other is not present you may have problems later on. By Florida law if the couple is divorced, unless the property has been settled previously (request documentation as proof), both husband and wife are entitled to the property therefore you need both signatures. Your first Question for any deal is "Are You or Have Been married?"
While rehabbing a property, make sure your mailing address is posted somewhere that the mailman can read it. Otherwise, he will not deliver your mail or make sure you have the mail forwarded.(See number 1)
Land Lords have more than one option for collecting rent and utility payments from their tenants. Section 8, Section Eight, Plan 8 or Plan Ocho is a government subsidized program that pays the monthly fees for low income families associated with living in the Land Lord's apartment, condo or single family home. For more information go to: Section 8 - Information for Landlords and Tenants.

Do you have any tips or tricks with the buying, selling, rehabbing or landlording that you would like to share?

Related Links, Blog Postings, Presentations or Articles:

Written by Bob Burns.
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	cya, MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Landlords, use HUD's Housing Quality Standards Checklist for your Section 8 property inspections.

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sat, 06 Aug 2011 03:35:00 PDT

HUD's Section 8 department has a program called the Housing Choice Voucher Program. This is the most popular of all the available programs Section Eight or Plan Ocho provides.

There are three parties involved when a voucher transaction occurs:

The Property Owner or Land Lord.
The County's Section 8 representatives.
Tenant or Voucher Holder.

Each side has different responsibilities to allow and maintain the rental agreement. I intend to discuss each party's responsibilities over time but today I am reviewing the Land Lord's.

As you may know or may not, HUD has a list of HUD's HOUSING QUALITY STANDARDS CHECKLIST. Before a Tenant can move into a property, HUD must perform an inspection of the UNIT (rental property). A HUD certified inspector and the Land Lord schedule an appointment to inspect the UNIT (rental property). The inspection entails checking:

Mechanical.
Plumbing.
The UNIT's Interior.
The UNIT's Exterior.
Stairways.
Other.

For more inspection details, make sure you visit our HUD's HOUSING QUALITY STANDARDS CHECKLIST page.

If you should fail the initial inspection, the Land Lord has 15 days to correct the all the faults discovered by the HUD inspector and reschedule.

After you pass HUD's initial inspection, your potential Section 8 Tenant can move in after their paper work has been processed.

HUD is not finished!!!!!

In addition to the initial check, HUD performs a yearly inspection of the UNIT and provides their findings to the Tenant and Land Lord. Each violation will be accountable to either the Tenant or Land Lord. The letter will mention what date these violations must be corrected to avoid further action by the Housing Authority.

From my experience with my own properties, I only failed a HUD inspection once and that was beyond my control (hurricane damage).

Do you have any experiences with Section Eight or Plan 8 inspections that you would like to share with us?

Related Blog Postings, Presentations or Articles:

Section 8 slide show presentation for Land Lords.

Written by Bob Burns.
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	"Dale!" MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Why aren't Your Real Estate Taxes reduced when Property Values are Down? Time for Tax Appeal!

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sun, 24 Jul 2011 00:20:00 PDT

It is that time of year again! Every year counties within the United States issue their real estate tax bill to commercial and residential property owners. These funds are used for various line items of the county's budget. Your tax bill is based on the assessed value of the asset according to the tax assessor's evaluation of the properties contained within in the county (Using Arial Photos). It is also based on the last purchase price that you paid for the property.

In case you didn't notice but A LOT of people purchased properties at the height of the market. Did the counties care if you did that? Noooooo....the more you pay for the asset, the more taxes they collect. But what investors didn't count on was the market tanked and property values dropped like a rock in some parts of the country. Unfortunately that included Florida, mainly Broward and Dade counties.

So here you are, holding onto a property and paying taxes (pre-bubble burst) on a property that lost at least half of its value or more! Does the county government care about this? Nooooooo....If they did, there would be less revenue for the county coffers. So what can we do as property owners?

No Taxation without Representation!

Luckily for us our founding forefathers saw this happening too! This great country of ours was founded on tax revolt. They made sure our representatives are held accountable for their actions. So, most counties have made provisions in the municipal code to allow tax payers to appeal their accessed property values. There is a small window, yes I mean SMALL, during the calendar year where you can file the proper documents with the county to ask for a reduction. Now don't get me wrong, the county is not going to give up. They will fight you. You better be able to prove that you are being over taxed!

As a real estate investor, I don't relish the thought of doing this every year for the rest of my life for various reasons:

Time consuming.
Need proper documentation.
Dealing with government employees.
Traffic.
Parking Fees.
And on and on...

I leave that up to EXPERIENCED professionals. Let them hassle with this process. The advantages are:

They know the proper filing dates.
They are experienced.
They know the proper documents to file.
Familiar with the tax appeal system.
They only get paid if you win the appeal.
The asset looks attractive to other investors.
Nice profit windfall for investors. Found Money...Yeah Baby!

Now is the time to start considering how you can increase your cash flows on your real estate investment portfolio. Remember, the window for filing your real estate tax appeal is small so start considering your options NOW!

Do you have any experience with the tax appeal process that you would like to share with us?

Related Links, Blog Postings, Presentations or Articles:

Update #1: After I wrote this posting, I started looking for a Real Estate Tax Reduction Specialist because current properties are severely over assessed. Here is a company that has been successfully appealing commercial property taxes for 21 years:
Real Estate Associates - www.realestateassoc.net
Update #2: RETA does residential and commercial. However many Homes are protected by the Save Our Homes Amendment and Homestead exemptions. Therefore the Taxable value maybe lower than the Market or Assessed value. Please send us your properties Folio Number and we will let you know if a reduction is possible.

Written by Bob Burns.
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	"God Bless!" MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Section 8 or Plan Ocho Podcast

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sun, 17 Jul 2011 07:48:00 PDT

Below is a podcast I did with a buddy of mine named Larry King. I know what you are thinking but no not the CNN host. He did a telephone interview over the phone with me about Section 8 or Plan Ocho a while ago. The interview is slightly dated but evergreen (perennially fresh or interesting; enduring). I wouldn't post it unless I felt that it had some value for Real Estate Investors that will eventually be Land Lords.

The interview last for about an hour so make sure you set some time aside for listening.

Section 8 Podcast

Accepting New Section 8 Applications for Waiting List in Pensacola, Florida

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sun, 10 Jul 2011 17:56:00 PDT

The City of Pensacola, Florida is currently processing applications for placement onto Section Eight' Subsidized Rental Assistance Program. Applicants must apply over the phone. Pensacola's Section 8 or Plan Ocho offices will be taking 25 applications every 2nd Wednesday of each month. The telephone number to call is (850) 858-0340 beginning at 7:00 am.

For Elderly, 62 or older and Disabled applicants have to call on the 2nd Thursday of each month to (850) 858-0350, starting at 7:00 am.

Note: Only one application per person per program. Once applicant's information has been taken over the phone, a preliminary application to complete will be mailed to determine eligibility for placement on Pensacola' Section 8 or Plan 8 Waiting List.

City of Pensacola's Housing Department Important Information for Tenants and Land Lords:

Address: 222 West Main St. Pensacola, FL 32502, Tel. (850) 435-1603
City of Pensacola Housing Department.
Rental Assistance Programs.
Apply for Rental Assistance Information.
Land Lord Information.
Waiting List Information.
Landlord forms.

Written by Bob Burns.
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	"I rather watch the grass grow from above than below!" MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Top 10 Real Estate Gurus I'd have a BEER with!

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Mon, 27 Jun 2011 13:20:00 PDT

As I was starting out in real estate investing, I took the grand tour of the usual seminars, workshops, boot camps and REIA clubs. Webinars were not around and the internet was just grabbing our attention. I had the benefit of helping run the Miami Real Estate Investor's Association MREIA which provided us the conduit for all the Real Estate Gurus that were currently HOT at the time and are still going strong today.

I am creating this TOP 10 blog list for the benefit of people that are coming into the business and need some guidance. Some are local to Miami, Florida and some national.

Again, this is only my opinion and you may disagree with me and that's OK. Please forgive me if I leave someone out of the list but I am providing the names that taught or brought us into their inner circle of influence.

Here goes:

WOW, what can I say about Preston? I met Preston Ely in New Orleans but we didn't know each other. We know each other through Freedom$soft affiliate campaigns but if I ran into him on the street, I don't think he would recognize me. That's OK because he is an awesome internet marketer whose niche is real estate investing! I like his style and his humor. He goes against the grain but it works. I enjoy his outlook on life and business acumen. He is refreshing and made me a lot of money! That is why he is number one on the list.
Mike Collins invited me to a Tampa workshop on real estate investing years ago. Mike was one of the first gurus to adopt the internet as part of his business. I drove up to Tampa Florida for the weekend and attended the event. I learned more about investing and realized that I had to adopt the internet as a channel for marketing my properties and business. Michael and his staff were very fourth coming with information about real estate investing and made me feel like I was very important to his success.
Over the years I have seen Mike Collins speak at various real estate events and never lost that feeling that he was someone with a special gift of sharing his wealth of knowledge.
I sat right next to Sam Bell in New Orleans in the front row. Same place I met Preston Ely. I like to think that I knew everyone that was a player in the real estate investing world but I didn't know Sam. He was quiet and didn't say much but we did introduce ourselves by the end of the event. Next time I saw Sam was in Tampa, Florida and to my surprise he was presenting. Man did he surprise me! He delivered BIG TIME. He combined hardcore internet marketing with Real Estate Investing. Every time I listen to him I learn something new. You have to place him on your blog reading list! You won't be disappointed. Light years ahead of me.
Pete Youngs was the first guy I ever saw when I decided to start my real estate investing business. I started out as a rehabber and Pete was the guru's guru when it came to rehabbing houses. He was one of the very first GURU presenters with almost all the real estate investing clubs. I always enjoyed his rehabbing stories and his sense of humor. Also, due to his broad footprint among the real estate investment community, Pete would always have great investment deals or opportunities for his inner circle.
Josh Cantwell is fairly new to my sphere of real estate gurus. I just finished an affiliate campaign in December 2010 with Preston Ely (See #1) and was still fired up about the campaign even though it was over. I received an email from Britt Walker (great contact for affiliate campaigns) who was promoting Josh's "Instant Cash Infusion" product. I said what the hell, since I trusted Britt. Wow, I was impressed! Josh's foreclosure system content was really fresh with current market trends. Home foreclosures vary from state to state but Josh and lawyer Jeff Watson seemed to be on top of their game concerning nationwide foreclosures. Check them out, you'll learn something.
I have been working with Paul Woods since I started this business. Paul is a real estate attorney that has spoken at our real estate investment club many times. His strengths are Asset Protection using the Florida Land Trust and foreclosure defense. When building your team for real estate investing you must have an attorney that knows the legal structures (example: Florida Land Trusts) and contacts associated with real estate investing for your protection and success. Paul is your man!
I met Joel Bauer at an information seminar in Broward, Florida. You know, Fort Lauderdale, college..etc. From my understanding Joel does not come out to the east coast (USA that is...) often so I decided to catch his presentation. He is not a real estate guru but was considered a Info. Marketer. I always want to get ideas about how I can enhance my marketing skills so off to see Joel. It was the fastest workshop I ever attended. He crammed more information into one day than anyone else I ever saw. I thought he was a little strange at first but this was part of his presentation. He kept it real and didn't sugar coat anything. I learned about photo and video editing, business card development, testimonial development, on and on and on...I was very impressed and would see him again in a heartbeat. He's different but that is what I like about him. Never boring and you never know what to expect. Either you like him or you don't. There is no middle of the road with Joel. Pure Energy! He brings it...Baby!
Wayne Wagie is a different kind of real estate guru. He looks at the deal without money by negotiating the deal with the exchange of assets and or terms. Usually no money exchanges hands or very little. He runs a group called the "The Greater Miami Real Estate Exchangors (GMREE)" which meets weekly in Miami-Dade, Florida to discuss different strategies of exchanging real estate. You can exchange a piece of land for a boat or a car. Swap a house in Hawaii for one in South Beach, Florida. Create a note on your property and exchange the note for a percentage of another deal. Wayne teaches you to view and negotiate the deal using NO CASH! Awesome concepts! Check him and his group out.
Paul J. DaCosta runs the Port Charlotte Real Estate Investor's Association on the Gulf Coast of Florida. When I first went to the meeting, I didn't know anyone but Paul had me introduce myself and the rest is history. He has spoken at MREIA several times about real estate investing. Paul is an investor, speaker, author, blogger, internet marketer and is very generous with his time. Paul makes you feel welcome into his social community and if you are ever on the Gulf Coast of Florida make sure you catch Paul at one of his meetings in Port Charlotte, Florida. Right down or across Rt. 75. You won't regret that you did!
Last but not least, Donna Bauer is the first lady on our list. Donna is a real estate guru specializing in purchasing real estate notes. She was one of the first speakers I asked to present at MREIA since my first deal was a note purchase for 15 condo units. Controlling paper on a property is a great strategy for controlling an asset without managing the property. No cleaning toilets for me! She has a wealth of contacts and knowledge for anyone starting out in this business and wants to learn a very unique strategy of real estate investing.

Whew, that took me a long time to put together. There are so many gurus out there that it was difficult to narrow down the people who taught me the business. I Thank all of You!

Now it is your turn! Do you have a real estate investing guru that made a difference in your life? Please tell us about HIM or HER in the comment section below.

Written by Bob Burns.
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	Sweet...... MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Back Linking should be one of your SEO objectives for Marketing Your Real Estate Properties

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Wed, 08 Jun 2011 07:47:00 PDT

One of the most aggressive groups or niche players in the internet marketing business is Real Estate Investors.

Since there is currently a glut of properties on the market, Real Estate Investors have had to learn all the current marketing channels there are to get their inventory in front of potential BUYERS. They employ several marketing strategies for getting their product, service or asset in front of their clients, such as:

Squeeze Pages.
Email Blasts to their lists.
Joint Ventures or JV's.
Affiliate Marketing Program.
Back Linking.
Blogging and/or Web Sites.
Video.
Newsletters.
Webinars.
and on and on and on...

Side Bar: Would love to hear about your strategies for generating traffic! Do you have any ideas...????

You get the point. The main objective is to getting traffic.....

One of my favorite methods is back linking. It is easy but time consuming. Yes, there is automation software available but Google frowns upon this. Don't get banned or slapped!

Google loves to give you traffic via back linking if you provide the following....

Good Content. Google monitors your traffic and checks statistics.
Like Content. In others words, don't back link to a wedding site when your site is about scuba diving.
High Page Rank. Google gives you a higher ranking if you have multiple back links from web sites with high page ranks.

So...Below is a table of Blog and RSS directories you should add your Blog and RSS feed URLs to. Just click on the chiclet graphic. A new window should open up and allow you to add your URL's. Make sure you place your URL's in the proper classification directory. You may have to look around for it.

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	"God Bless!" MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

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Miami Florida's Section 8 & Housing Authority Office Locations and Contact Information

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Tue, 24 May 2011 17:59:00 PDT

You don't know how many phone calls we receive asking about Section 8 or Plan Ocho program managed by the Miami Dade Housing Authority MDHA in Miami, Florida. The callers have many questions concerning HUD's subsidized rental program.

The most common question is "Where are Miami-Dade's Section Eight offices and how can I contact them?" We decided to put together a list of Section 8 or Plan Ocho offices that provide help for families in distress for Miami-Dade County, Florida. There are also several satellite offices for different cities in the county.

See Below:

Section 8 Plan Ocho Office Locations & Contact Data

Florida's Section 8 Public Housing Agencies PHA Offices.

HHA - Hialeah Housing Authority

Homestead Housing Authority

Miami-Dade Housing Agency MDHA

Miami-Beach Housing Authority

Section Eight or Plan 8 Property Web Sites

Access Section 8 Property Web Sites Go Section 8, Social Serve, Florida Housing Search

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"Give Back to Your Community"

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

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Video about Calculating Fair Market Rent FMR using a HUD Section 8 tool

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Sun, 15 May 2011 07:50:00 PDT

While giving real estate investing presentations, especially about Section 8 and to new land lords, a common question from newbies is "How much can I charge for rent?"

WOW, that is a good question!

Remember, there are several things to consider while trying to answer this famous question:

How many bedrooms?
Demographics of the neighborhood?
Have I checked the local newspapers?
Did I call "FOR Rent" signs and see what other Land Lords are asking?
What is the Multiple Listing Service MLS saying about rental prices in that zip code?
Other Investors, what are they charging?
Does your property have issues?
Etc.

My point is that it would take a lot of time to do a good rental survey or Fair Market Rent FMR of your market before you can come up with a price.

But those days are over......

When I started using Section Eight I noticed that the case workers focused on:

Participant's current income
Inspection results of the land lord's property
What is Section Eight or Plan Ocho currently paying other land lords in the area.

They would always come up with a figure magically. I always wondered how they calculated the results to come up with the fair market rent FMR number. Fair meaning making it a win-win for the Housing Authority, the Land Lord and the Participant.

NOW...

Here is a tool where the Fair Market Rent FMR ceilings are calculated for you by HUD, from efficiencies, one bedroom and up to four bedrooms. Check out the video....

"Yeah Baby!"

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

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Contact info. for Real Estate Investment Commentary REIC Blog

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Tue, 03 May 2011 18:55:00 PDT

I am writing this blog post because I feel

it is important to disclose to our audience a way of contacting the authors of Real Estate Investment Commentary REIC postings. I will be the posting author most of the time but there may be instantences where I may have a guest blogger or a link to an article done by someone else.

Please feel free to contact me about any of the items listed below:

Have a question or additional information about a current REIC posting.
Need help or advice about investing in Real Estate.
Would like to interview me via a podcast, webinar, video or text.
Have me be a guest speaker at one of your special events.
Be a presentor / guest speaker at MREIA.
Find out the next MREIA meeting is.
JV, partnering, affiliate marketing opportunities
Whatever you feel is important enough to discuss.....

See below, for our contact data....

####

Here is our contact Data.....

MREIA's President
Telephone #: 305-300-6242
Skype: bob.kirk.burns
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

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Real Estate Investment Commentary REIC's Top SIX Blog Posts

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Thu, 28 Apr 2011 13:43:00 PDT

I think people love lists which are composed of the best people, items, products, services, books...etc. Top Ten Real Estate Tips, Top 10, Top 100, what ever! I know I do.

I decided to create my own REIC's Top SIX Blog Posts list. I may be too early for this since I am really a newbie blogger and only have a limited number posts under my belt. Bare with me HERE! There is a method to my madness.

I wanted to make this a MENU item. Anyone who wants to check out the top posts can just click on "Top Blog Posts".

The REIC blog's menu appears just below our blog's title. The MENU itself is a work in progress. I want to get these menu items up and running as soon as they are created.

I promise I will update this list as post positions change. Hopefully that will be often.

Check it out....

Hialeah Housing Authority HHA Opens Lottery-Based Section Eight Waiting List!

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Thu, 21 Apr 2011 13:34:00 PDT

The Hialeah Housing Authority HHA has started accepting pre-applications from eligible families to be placed on its lottery-based waiting list for the Section 8, Section Eight, Plan 8, Plan Eight or Plan Ocho Voucher Program.

HHA will accept up to 2,500 applications via the internet or direct mail starting April 21, 2011 at 8:00 AM through April 22, 2011 at 8:00 PM. Here is the Internet application link: Hialeah Housing Authority Pre-Application Link or printed applications are to be published April 21, 2011 in The Miami Herald, El Nuevo Herald, The Miami Times and El Diario de las Americas. You can mail in your pre-application via direct mail to: Hialeah Housing Authority, PO Box 110670, Hialeah, FL 33011-0670. The pre-application envelope must be postmarked no later than April 27, 2011 after which the application process for this waiting list will be CLOSED.

For more information about this HHA event please access the following documents:

Use these keyword phrases together on Google: Hialeah Housing Authority & Miami Herald & Section 8

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Put things into Motion!

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

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7 Reasons to Use a Land Trust

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Fri, 15 Apr 2011 06:20:00 PDT

I was cruising my directory for articles that I have been collecting and I came across this one about Land Trusts. I can't tell you how many times a Land Trust has saved me while taking ownership of a property. If you are a serious real estate investor, YOU MUST master this asset protection method. You will reap many benefits, financially and legally.

The land trust is a very powerful tool for the savvy real estate investor. A land trust is a revocable, living trust used specifically for holding title to real estate. Each property is titled in a separate trust, affording maximum privacy and protection.

Here are seven reasons to use land trust for titling property to real estate:

Privacy: In today’s information age, anyone with an internet connection can look up your ownership of real estate. Privacy is extremely important to most people who don’t want others knowing what they own. For example, if you own several properties within a city that has strict code enforcement, you could end up being hauled into court for too many violations, even minor ones. Having your real estate titled in land trusts makes it difficult for city code enforcement to find who the owner is, since the trust agreement is not public record for everyone to see.
Protection From Liens: Real estate titled in a trust name is not subject to liens against the beneficiary of the trust. For example, if you are dealing with a seller in foreclosure, a judgment holder or the IRS can file a claim against the property in the name of the seller. If the property is titled into trust, the personal judgments or liens of the seller will not attach to the property.
Protection From Title Claims: If you sign a warranty deed in your own name, you are subject to potential title claims against you if there is a problem with title to the property. For example, a lien filed without your knowledge could result in liability against you, even if you purchased title insurance. A land trust in your place as seller will protect you personally against many types of title claims because the claim will be limited to the trust. If the trust already sold the property, it has no assets and thus limits your exposure to title claims.
Discouraging Litigation: Let's face it, people tend to only sue others who appear to have money. Attorneys who work on contingency are only likely to take cases which they can not only win, but collect, since their fee is based on collection. If your properties are hard to find, you will appear "broke" and less worth suing. Even if a potential plaintiff thinks you have assets, the difficult prospect of finding and attaching these assets will discourage litigation against you.
Protection From HOA Claims: When you take title to a property in a homeowner’s association (HOA), you become personally liable for all dues and assessments. This means if you buy a condo in your own name and the association assesses an amount due, they can place a lien on the property and/or sue you personally for the obligation! Don’t take title in your name in an HOA, but instead take title in a land trust so that the trust itself (and thus the property) will be the sole recourse for the homeowner’s association’s debts.
Making Contracts Assignable: The ownership of a land trust (called the "beneficial interest") is assignable, similar to the way stock in a corporation is assignable. Once property is title in trust, the beneficiary of the trust can be changed without changing title to the property. This can be very advantageous in the case of a real estate contract that is non-assignable, such as in the case of a bank-owned or HUD property. Instead of making your offer in your own name, make the offer in the name of a land trust, then assign your interest in the land trust to a third party.
Making Loans "Assumable": A non-assumable loan can become effectively assumed by using a land trust. The seller transfers title into a land trust, with himself as beneficiary. This transfer does not trigger the due-on-sale clause of the mortgage. After the fact, he transfers his beneficial interest to you. This latter transaction does trigger the due-on-sale, but such transfer does not come to the attention of the lender because it is not recorded anywhere in public records. This effectively makes a non-assumable loan "assumable".

As you can see there are many creative and effective uses for the land trust, limited only by your imagination!

William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990 www.legalwiz.com

P.S. If you need a good Land Trust attorney for South Florida, contact Paul B. Woods, Attorney at Law, (305) 559-9060, mobile: (305) 803-1818, email: pwoodslaw@gmail.com

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cya

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

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Real Estate Investment Strategies for Rehabbing Houses

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Fri, 11 Mar 2011 09:41:00 PST

As you are starting out on your road to become a successful Real Estate Entrepreneur, you are going to eventually purchase a property that has a lot of

equity but you need to extract that it from the property by repairing or rehabbing it. One of the best ways to generate cash as an investor is to rehab properties for resale.

Buyer Beware!

Rehabbing can make you money but you as an investor have to be careful. Two of the biggest mistakes made by 1st time rehabbers are TIME & MONEY.

Although your actual time commitment is minimal, these projects from purchase to sale, take a significant amount of time. To finish your rehab project, plan six months to one year. That means you may not see any profit for a while. Hopefully, your projects will finish much faster, but mentally commit yourself to problems and delays that will hurt your projected completion date.

The second negative is MONEY. Unless you have a partnership arrangement, you will have to come up with money for these projects. MREIA consistently puts $10,000 to $20,000 in repairs alone into a house. Add that to your purchase price and you can see you'll need access to quite a bit of cash. Plus, that money could be tied up for 180 days or more.

These negatives aren't anything you can't overcome. You'll see how important it becomes to have a well thought-out plan to minimize the negatives and accent the positives of rehabbing a property.

Estimate Repairs - Rocket Science?

Once you have found a property to rehab, you need to get a good, not great, idea of how much money you are going to need to repair. Dealing with sellers they always place the repair costs to a minimum. What ever amount they say I double it. Estimating repairs isn't as difficult as you might think. Once you rehab a couple of houses, you'll know what you're repairs will run. This is where a check or punch list becomes invaluable.

Your Finished, NOW it is time to get PAID!

The marketing strategy is to develop several plans to help you get to your objective - MONEY now or in the near future. You, the rehabber have several options:

Rent It!
- Traditional Landlording
- Section 8 or Plan Ocho
Sell It!
- For Sale By Owner (FSBO)
- Hire a Realtor.
Lease Purchase It!
- Combination of Renting and Selling!

Rehab Process Outline Here it is:

We are going to find a distressed property that has mucho equity!
Buy it using a formula (MAO Rule) that calculates your holding & rehab costs.
Rehab the property to bring it back to neighborhood standards or beyond.
Develop a marketing strategy that will attract either an investor or owner occupant.

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"Be Viral!"

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

Rental Income and Expenses - Real Estate Tax Tips

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Thu, 27 Jan 2011 18:15:00 PST

Below you will find the IRS guidelines and different examples as they apply to rental properties.

You generally must include in your gross income all amounts you receive as rent.

Time to do Your Taxes!

Rental income is any payment you receive for the use or occupation of property.

Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. Publication 527, Residential Rental Property includes information on the expenses you can deduct if you rent a condominium or cooperative apartment, if you rent part of your property, or if you change your property to rental use.

When to Report Income

Report rental income on your return for the year you actually or constructively receive it, if you are a cash basis taxpayer. You are a cash basis taxpayer if you report income in the year you receive it, regardless of when it was earned. You constructively receive income when it is made available to you, for example, by being credited to your bank account.

For more information about when you constructively receive income, see Publication 538, Accounting Periods and Methods.

Advance Rent

Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it regardless of the period covered or the method of accounting you use.
Example:

You sign a 10-year lease to rent your property. In the first year, you receive $5,000 for the first year's rent and $5,000 as rent for the last year of the lease. You must include $10,000 in your income in the first year.

Security Deposits

Click HERE to File Online

Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.

If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. Include it in your income when you receive it. Understand, Florida Statue states that a Security Deposit is NOT to be used for rent, but toward Performance. (Please refer to FS 83, Sec. 83-49 for further information.) You must also notify the tenant in writing within 15 days from vacating of your intentions toward the Security Deposit. Some landlords will require 2, sometimes 3 months to be applied as a Security Deposit. This avoids it being considered Rent if you were to collect them prior to the year’s end. However, if your tenant overlaps their lease into the New Year and you apply those Security Deposits toward final rent(s) then Yes, it is rental income. Understand, "IF" you apply these Security Deposits toward the rent if the tenant skips out on the lease or for whatever reason and does not pay their requirement, you will indeed have to show them as income, "MINUS" and repairs which will show as. You can deduct the cost of the repairs as a rental expense.

Expenses Paid by Tenant

If your tenant pays any of your expenses, the payments are rental income. You must include them in your income. You can deduct the expenses if they are deductible rental expenses. See Rental Expenses in Publication 527, for more information.

Example One:

Your tenant pays the water and sewage bill for your rental property and deducts it from the normal rent payment. Under the terms of the lease, your tenant does not have to pay this bill.

Example Two:

While you are out of town, the furnace in your rental property stops working. Your tenant pays for the necessary repairs and deducts the repair bill from the rent payment. Based on the facts in each example, include in your rental income both the net amount of the rent payment and the amount the tenant paid for the utility bills and the repairs. You can deduct the cost of the utility bills and repairs as a rental expense.

Property or Services in Lieu of Rent

If you receive property or services, instead of money, as rent, include the fair market value of the property or services in your rental income.

If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary.

Example:
Your tenant is a painter. He offers to paint your rental property instead of paying 2 months' rent. You accept his offer. Include in your rental income the amount the tenant would have paid for 2 months' rent. You can include that same amount as a rental expense for painting your property.

Personal Use of Vacation Home or Dwelling Unit

If you have any personal use of a vacation home or other dwelling unit that you rent out, you must divide your expenses between rental use and personal use. See Figuring Days of Personal Use and How To Divide Expenses in Publication 527. If your expenses for rental use are more than your rental income, you may not be able to deduct all of the rental expenses.

See How To Figure Rental Income and Deductions in Publication 527.

10-99 Workers: If you are not sure of the threshold, anything paid above $500 must be reported on a 10-99.

Respectfully,

Tax Sense, LLC
Full in Tax $ense Questionnaire concerning your Taxes.

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"Be Viral"

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

Using the MAO rule for determining your Investment Property Offer Price

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Fri, 07 Jan 2011 10:32:00 PST

As you know I run, along with my partner Luis Maqueira, the Miami Real Estate Investor’s Association MREIA monthly meeting every fourth Tuesday of every month.

One of the most common questions from our MREIA group is how do we determine the

property’s value so we don’t pay too much? By paying too much would prevent the investor from making any money on the deal. Most investors want the deal to be a win-win-win for everyone involved in the transaction:

Win for Seller,
Win for the Investor,
Win for the Buyer that purchases
the asset after it has been repaired.

The Maximum Allowable Offer MAO rule allows the investor to determine the property’s value so the transaction will be a win-win-win deal. It creates a maximum ceiling price for the investor. Go passed the ceiling and you won’t make money. It is always said among Real Estate Investors, "You Make Money on the property when you purchase it, not when you sell it."

Below is a brief video that explains how the MAO rule is processed and how the derived number is of value to the Real Estate Investor:

####

"You are the Message"

MREIA's President
Telephone #: 305-300-6242
email: rkburns@investmentpropertiesmiamiflorida.com
MREIA's Web Page: www.miamireia.com

The 8 BIGGEST Mistakes in Offshore Real Estate…and How to Avoid Them

rkburns@investmentpropertiesmiamiflorida.com (Bob Burns) — Tue, 28 Dec 2010 01:51:00 PST

It doesn’t matter if you are a broker, agent, loan officer or an investor, what

you DON’T know exceeds that which you DO know when it comes to investing outside of the United States. For most people, this “unknown” is enough of a hindrance to prevent us from enjoying the tremendous upside of investing abroad.

If you have watched the real estate markets for more than a dozen years, you’ve seen ups and downs before, of course. Why is it then, that THIS particular downturn seems different? Is it the rapid decline of values? Was it the news that

Our Offshore Belize Property Trip

Fannie Mae and Freddie Mac were in trouble? Even the most optimistic agent or investor understands that the majority of potential buyers currently suffer from a “deer in the headlights” approach to real estate. Many investors and Realtors are frozen with fear and indecision regarding how to clearly capitalize and thrive in the current market.

Some savvy investors saw this downturn coming years ago. Many did not. Those that did already made the shift in their strategy, marketing, sales and investments to

Entrance Pier Belize Property

use the slump to their benefit. The ultra-wealthy have ALWAYS made more money during volatile times than in good times. Who do you think is buying up all those stocks and real estate when the market tanks? Wealthy, fearless and wise investors, that’s who.

You can too.

We all start with the premise of not understanding enough about foreign markets in order to make a decision. Therefore, the ONLY decision you can make right now is the decision to learn about how, where, and why to invest abroad.

It is safe to say that most people in the United States are comfortable with understanding the basics of our economy and the relationships they have with their brokers and advisors. We trust others with our financial future because it is the details and nuances that most of us either don’t understand or don’t have the time to learn. The fears most people have are normal, but they do not have to prevent you from expanding your reach, diversifying your portfolio, and earning tremendous returns for yourself and your referrals.

Investing offshore is actually SIMPLER and EASIER than trying to understand the beta and QMV price of a stock. Knowledge and the comfort that knowledge provides us when it comes to our money is easily acquired when you know WHO to talk to and

String Ray off Pier in San Pedro, Belize

WHY they are talking to you! Obviously salespeople make commissions and developers have land to sell. Their information is relevant as long as you acquire it with the context of THEIR interest. When it comes to moving and investing your money, it is always a wise idea to also get information from current investors who have already been researching, analyzing and investing what you are interested in. Investing offshore can dramatically accelerate your retirement plans and give you the opportunity for a tax-haven previously known only to the ultra-wealthy.

There are 3 KEY factors that one should consider to set themselves up not only to survive this market, but to thrive. It is not the acknowledgement of these 3 keys which is important, but the full confidence and belief that without them, you will be ignorant of the philosophy and actions of the ultra wealthy, especially in matters of offshore and worldwide money, assets and wealth.

A. Economic Give and Take. When one area of the world has a slowing economy, often there are other areas which thrive in relation to it. (A weakening US dollar provides currency volatility for FOREX traders) Natural markets act very similar to nature. Nature abhors a vacuum. When panic or fear hits a market, more people are selling than buying which often lowers prices below their true value. The contrarian investor is there to pick up the bargains and realize the gains.

B. Different Rules for Different Investors. Ultra wealthy investors don’t participate in the financial markets the same way the average person does. They don’t necessarily “cheat” but they do set their own rules. These rules are not truly “secret” but often take a re-framing of our mindsets to learn their code. Wealthy people don’t think or believe that the masses do. As sad as it sounds, the masses are nearly always wrong when it comes to investing.

C. Fear Keeps You Ignorant. Fear and ignorance of IRS rules keeps most people from even learning how offshore investing/banking/finance works. The US government, particularly the IRS is professional intimidators. Every year there are billions of dollars scooped up by the IRS from taxpayers and their accountants who fear an audit more than being accurate with their deductions. When it comes to offshore, the easiest and simplest methods are always the best. Pay your taxes. Using an offshore entity to shelter what is owed is not good advice.

NOTE: The IRS taxes all worldwide income of its citizens. Therefore the trick is not to try and hide your income. That is a HUGE red flag and you will probably get caught. The trick is to have equity gains abroad, not income. Additionally, the proper entity structure can reduce or eliminate your exposure to IRS taxes. The only way to do this is to use their own rules to your advantage.

Walking onto Belize Property Video

Nearly half of ALL equity funds are not marketed in the United States. The stringent rules of the SEC have made it too expensive for many companies, funds, and securities to be marketed in the USA. Most people are unaware that there are savings accounts available with double digit returns in other countries. US citizens are unaware because those banks are not allowed to advertise in the USA.

When it comes to investing in real estate beyond the borders of the USA, these same issues are compounded by fear, lack of knowledge of foreign exchange rates, governments, culture and language.

When one opens their mind up to the possibility of investing in foreign markets, these limitations begin to fade away. Once the limitations are gone, the opportunities are sure to keep you awake at night with excitement! The possibilities of secure wealth, lifestyle, and a reduced tax-burden are enough for anyone to “get in the game,” learn all they can, and get started!

Here are the 8 things to INSIST upon when it comes to investing abroad:

1. Government. After speaking with hundreds of investors, the question of banana republic’s and dictatorships comes up a lot. When you preview property in a foreign land, check out the history. How did it become a republic? Who was in charge before? What legacy did the previous government leave behind? No matter who is in charge now, there are ALWAYS people and power centers left from previous administrations. Be sure to work with countries with a long history of stability. Even if the new administration seems democratic, we all know from experience that graft and corruption are everywhere. How is it handled in your target country? (For example, in the USA, a lobbyist with tremendous money and influence can do more to influence legislation than a group of concerned citizens from a small county) How does your targeted country handle itself?

2. Tax Haven. It is important to not only work with democratic governments, but ones that are friendly…very friendly to foreign investors (That’s you!). Owning property abroad may relieve you of income taxes (The USA doesn’t tax assets, just income). What are the real estate and income taxes of your targeted tax haven? Do they allow foreign corporations to own property? What are the costs and procedures for establishing a “domestic” corporation in your country of choice? What about anonymity? In the USA, if a banker does not disclose private information to the authorities upon request, they can be prosecuted. In tax-haven friendly countries, the opposite is true. If a banker reveals private information to the authorities, the BANKER can be prosecuted! A low or non-existent tax rate for foreign investors is preferred. Any lack of banking privacy is a non-starter. For example, in November 2001, the Cayman Islands concluded a tax information exchange agreement (TIEA) with the U.S. that provides for exchange of information relating to U.S. federal income tax. In the summer of 2009, UBS was required to reveal the names of 5,000 of its customers who had bank accounts in Switzerland! The old story about a numbered Swiss bank account being anonymous is now old news.

3. Land Ownership. US land owners take for granted the idea of property rights. Even countries based on English common law don’t have the same protection that we take for granted. In the Turks and Caicos, deeds are the responsibility of the crown and not supervised by a third party. A US based title insurance company is best for security, peace of mind, and reduces the learning curve. Title insurance is vitally important in a country where you may not have your domicile. In Costa Rica, squatters have reclaimed thousands of acres of land from foreigners who were unable to keep them from simply homesteading on land that did not belong to them. In some cases, foreigners were hiring people to simply watch over large tracts of land they had purchased, not to protect it from vandalism, but from squatters who after a certain amount of time, can RIGHTFULLY claim and take possession of land that they didn’t pay for. Can you even own property in the country you are investigating? Mexico, for example, requires a foreigner to co-own property with a domestic person or entity. Yuk! Equally important, does the developer “own” the land? Not only on title, but what about encumbrances? Select developments where the land is paid for, that way, any delays in development won’t compound the developers’ finances.

4. Team. A project is only as solid as the team behind it. When it comes to getting permits, title, surveys, and entitlements, does your project have a manager who is local? Is the manager experienced? What are his credentials? Do they have an inside track on the national, regional and local regulations? Does the project manager have friends in the government? It doesn’t matter WHAT country we are discussing (USA included) the more connections your project manager/developer has with his suppliers and governments, the easier the project will be completed. Is the developer perceived as a foreigner or a local? Are they using local labor? Is the master plan designed by professionals? Are there any sales? How have the sales been proceeding? Has anyone asked for a refund of their deposits? Why? What is the reservation and refund policy? Analyzing the team is as important as understanding the project and you must know WHO you are dealing with.

5. Language & Culture. Going offshore means you WILL be experiencing a new culture. The only way to become comfortable is to understand that culture, accept the differences and embrace the common elements. With regards to language, be sure you speak it. Using a translator is inefficient and dangerous. Contracts not written in a language you understand is like playing with fire. Even if the contract is bi-lingual, in a court of law, the dominant language is the one that will prevail.

6. On-site Visit. In order to truly understand a project and the opportunity, an onsite visit is a must. This is only true for investments of a significant nature (In my opinion any investment in the six figure range or higher is significant, regardless of your wealth). For investments in the 5 figure range, you should be able to conduct enough due diligence in order to feel comfortable and secure. Ask the developer if there is a “window of opportunity” where you can come and visit the project at a later date. As an investor, I would never trust an agent who had not taken his time and money to travel to the project and “put their feet in the sand.” As an investor, it is a great tax-deductible trip…and gives you firsthand knowledge of the area, people and project.

7. High-end usage. Many investors start out with affordable housing rentals as their entry into the market. It appears less expensive, but management headaches are going to be high. When investing abroad, it makes sense to cater to people of high net worth. They travel more, sale prices and rents are higher, and the wealthy are immune to economic swings. With proper management in place, upper-end properties are safer and more lucrative.

8. Location. Yes, the old adage, “Location, location, location” is still true when investing in other countries. Understanding values, appreciation, and market demand is very similar to what we do when performing due diligence in the states. For an extra layer of comfort, be sure to invest in properties that not only have great locations but have stellar locations! When investing in tropical areas, be sure to check out the neighbors. The Caribbean is known for having beautiful resorts residing next to dilapidated shacks. Proximity to activities, shopping, and services is important, so be careful if you find that perfect private island getaway! If it is too far from civilization or any amenities, demand could be weak.

There are other, less significant areas which you need to become informed on when investing abroad. The biggest hurdle will be your own fears and “ramp up” time on the culture, opportunity and the people you are looking to become involved with. Don’t ever say “no” because you don’t understand something. It is always better to simply ask for more information so that you can make an informed decision. A confused mind always says no and closing the door to the opportunities of the world never made anyone rich.

BONUS:

If you truly want to make a TON of money in this marketplace, you need to invest in it yourself. Nothing compares to the credibility of being an owner AND an agent. By owning a part of the project yourself, you set yourself apart from all other agents/ Your referral commissions can increase exponentially when you have not only taken the time to learn about a project, but have the confidence to invest in it yourself.

I love my country and like having more than one child, I have learned to love other countries as well. Foreign real estate investment and ownership has more…more growth, more tax advantages and more lifestyle. Now is the VERY BEST TIME to learn more, and take action!

This was an article produced by Doug Crowe. Doug has spoken several times at MiamiREIA www.miamireia.com meetings about the advantages of investing offshore. Doug is currently constructing a major offshore development in Belize. For more information about Doug go to: www.dougcrowe.com

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For more information please contact:
Bob Burns
Email:rkburns@investmentpropertiesmiamiflorida.com or
call (305) 300-6242

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	"Words can Hurt or Remedy!" MREIA's President Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com