Is it possible to get really great photographs of your properties without spending a small fortune on expensive photographers?

Do the photographs of your properties really matter  after all?

Can a good photograph sell a property you really want to sell?

Can an excellent image of a rental property convince a prospective tenant to rent from you?

YES!

Let's face it.  We need all the edge we can get in today's times. 

SpencerBarron.com has a superb article on why and how enticing, thrilling photographs of your properties can put you over your competition and have them eating your dust.

Is "artistic rendered effect" just something fancy that we can't hope to produce in our property photographs?

No,  because Spencerbarron.com shows us how.  (It's quick and easy)

Read Selling your home? Better Photo's =Faster Sales    

We have a recent example from the Fall River, Mass/ Rhode Island area.

(As we remember Fall River was Lizzie Borden's hometown)

A man posing as an attorney promised to fix distressed homeowners' problems if they paid him some money.

In one case, a homeowner gave $2000 to a man, Joseph Pereira, who was posing as Joe Parella.  He was offering his services on Criag's List.

Parella told the homeowner he could fix everything. 

Soon the homeowner  went into foreclosure and lost the house- and the $2,000.  Parella was arrested.

Are there lessons here?

1. Craig's List may work for some items, but I don't think it's good for short sales.  Maybe someone may want to correct me on that, but that's my stand for now. 

I certainly would want to know more about the person offering to help me if I thought I was going to lose my home.

And I'd need more than Craig's List to get the info.  Remember how we preach due diligence.

2. One of the vicitms was reassured because of Parella's outward appearance.  Office, pictures with Clinton, etc.

Again, not enough due diligence.  A fancy office with all the trimmings doeth not a lawyer make…

3. If you're going to help homeowners in pre-foreclosure, give  them facts and put your reputation out there for good business.  They need to be able to trust you. 

Also- give them quick means to get in touch with you.  Answer the phone, in other words.

This article gives us good insight on what not to do in pre foreclosures and foreclosures.   

Go to Pereira arrested on new fraud charges

It's got the latest star and celebrity home sales- complete with lots of pictures.

Right now you can see Rachel Sweet's $9.95 million manse that was previously owned by Madonna.

There are also lots of juicy real estate listings such as Rapper Bow Wow selling his Duluth, GA manse for $850k  to Atlanta Braves pitcher Kenshin Kawakami.  It had been marked down from $1.5 million.

And then there's the suburan Chicago house of Ferris Bueller's best friend.  As we remember from the movie it's the house with the rare red Ferrari. It's now on the market for $2.3 million. 

For more neat properties check out Big Time Listings

I don't know about you but I'm tired of all the confusing fancy legal language that is hard to understand.

I want simple, and this article slices through over 200 years of the National Debt, beginning in 1790.

I was shocked to learn tht each one of us will owe $184,000 in debt as the amount rises to $45 trillion. 

Do we really want more debt?

Read Mountain of Debt: Rising Debt May Be Next Crisis

Federal marshals are showing no mercy to Mrs. Madoff.

They forced her to leave her home in Manhattan, that beautiful $7 million penthouse, on Thursday at 1 PM.

She allegedly argued with the marshals and asked to be able to take a fur coat and they said 'no'.

There's still $2.5 mil left that the government is allowing her to live on.  This money is not connected with the scandal.  

But, of course, as always, we need to keep in mind money like that is still vulnerable to civil courts.

The lesson for all of us here is to avoid situations like this and obey the law.  You don't want to get thrown out of your home  when you're 67.

Read Feds Seize Madoff Penthouse, Wife Leaves

We felt the only place to really get the answers is The Hamptons Real Estate Blog.

In a post entitled "Hamptons and Manhattan Traditionally Lag In a Recession" the blog is reporting "the real estate downturn has finally hit Manhattan and The Hamptons." 

Whoops.  Kind of makes you wonder where Architectural Digest is going to find their features for 2010 and beyond…

Here in Nashville, I'm still watching some of those McMansions that sprang up so fast in my own neighborhood.  Some pretty large tudors have sold but at reduced prices.

But the building has stopped for now…

Go to The Hamptons Real Estate Blog and read more…

Hamptons and Manhattan Traditionally Lag In a Recession

Here is one of the most important landlord tips that will help you stay out of a lot of trouble with your tenants.

They're not only tenants, they are people who should really be likened to clients.

Am I crazy?  A tenant as a client, or heaven forbid, customer?

This is one of my Dad's biggest secrets and he has been a landlord for over 50 years.  I learned it from him and I'm practicing it myself because it works.

It worked for me yesterday.

I had a tenant call about a water heater and she was a little upset.

"The water only stays hot for one minute while I'm taking a shower.  It's been like that ever since I moved in a week ago."

She went on to 'explain' how difficult that was and she needed something done pretty quickly.

My first reaction was why didn't she call me sooner?

Did I tell her that?  Of course not.

I asked a few questions to verify what I thought the problem was.  I could tell over the phone it was one of the elements in the water heater.  We later visited the unit and discovered we were right. 

Uh oh.  The bad news is our maintenance man had a doctor's appointment the next day and couldn't get to it until the day after that.  She would have to do without hot water for another two days or so. 

So, what's next?

I called her and simply told her the truth.  I communicated.  I acted like I cared.

I apologized and explained we would fix it but she would have to wait.

Her reaction?

She was okay with that. 

So how did that happen?  Why didn't she get mad and upset?

Here's the secret.

I showed interest in her problem.  I showed interest in her.  I was honest and told her what  we could and couldn't do.

Most of the time, unless your tenants are roasting in 100 degree heat, that will work. 

Humility works.  Yes, I think the meek will inherit.

Why is that?

I didn't leave her dangling.  I listened and I reacted.

She knows I'm working on it and she trusts me.  If I do anything to lose that trust I really will be in for a rough time, not only with her, but with all of our tenants.

 Keep in mind your tenants can make your life miserable if they want to.  They have your phone number and a lease.   Plus, if you do get lucky and the bad ones move, you will probably get worse ones to replace them with.

Keep your good tenants happy. 

I think I'm qualified to talk about this, since we have had almost 15 condos for over 20 years.  There are potential minefields here although condos can be excellent investments.

1. Beware of Homeowner Assosiation Fees

I have friends who are  thinking about buying a $600,000 condo in Nashville.  I looked at it, and I like it.  It's got location, it's new, well built, etc. 

There is one thing that puzzles me; even bothers me.  The homeowner's fees are very low for that type of condo.

"Have you thought about the fact that your fees may go up?" I asked my friend.

"Yes, we're expecting that."

I have a feeling she doesn't expect the fees to really jump up. 

I think they will.  I think the fees are low now to attract buyers and with increased inflation get ready- they're going to probably explode. 

2. Bad neighbors

Everyone is living in a cramped space, very close to each other. Some people can't handle that.

I have a tenant now who calls me every few days complaining about the neighbors above her and her claim their water heater is too loud. 

I know, it doesn't make sense, but people, especially those in condos, aren't always reasonable.

Should I mention there is a lot of noise in these buildings?  They're not libraries.

3.Dumb decisions made on how to spend your money

Okay, I've often called Homeowner Associations- Communist Central Committees.

 I know it's a little harsh, but just wait until you get in the ring with those people who want to spend lots of money on tulips, and repaving the tennis courts because they've become a dog restroom, etc.

All of these add-ons can   make your fees go up fast.

Your money can be wasted.  That's the bottom line.

People like that have to be stopped and that's why you have to get elected to the Homeowner's Association Board which means a lot of your valuable time will be taken up in futility exercises.

So which will it be?  Your money or your time?

Am I saying not to invest in condos?

No, but I'm saying you need to make sure you do all your due diligence first.  It is vital you know exactly what you are getting into and where your money is headed. 

Lack of due diligence.

Michael Jackson allegedly  got some very bad financial advice.  We covered that  teeth gnashing  problem in yesterday's post.  Bernie Madoff has left a lot of smart investors without anything. 

ABC News is reporting Madoff victim Kathleen Bignell is living off of social security now and had to tell her 89-year old father there isn't enough money for his burial.

The Global Warming Bill was quickly passed yesterday by the House without many people having had the opportunity to read it. 

Most of us don't know what's in there, but I have a feeling we'll eventually find out- after it's too late and our taxes go way up.

So what's my point?

We need to take control of our own economic destiny.  We need to read and know everything, down to the smallest details, that affect our bottom lines.

We can't put our money and our real estate properties into any one's hands, no matter how capable they are, and just leave them.  We have to be on top of everything.

As for contracts- like the Global Warming Bill- we just never sign anything unless we have taken it apart syllable by syllable.

Here is another source about Palm Beach and the Madoff Scandal I thought you would be interested in.

Brian Ross Investigates the Secret World of Bernie Madoff

www.industryfinest.com

 As early as 2006, The New York Times had already written  a revealing article about Michael Jackson's money problems that included real estate difficulties.

We looked the old article up and it was prophetic. 

The NYT brought out the fact that Michael's real troubles started when he began taking bad financial advice in the early 1990's.

The star who owned the Beetle Catalog made another big real estate investing  mistake.  He fell emotionally in love with one piece of property, Neverland Ranch.

As we remember it was that strange Disneyland  clone of such that was almost foreclosed upon  about a year ago.

But as the NYT pointed out, paying for the  upkeep of $4 million or $5 million per year, depending upon whom you ask for figures, isn't the way to make money with real estate. 

As we all know, it's supposed to be the other way around. 

Read What Happened to the Fortune Michael Jackson Made