Go Zone Extension - Is There Still Time?
April 20, 2009
There is still a lot of confusion about when does GO Zone benefits end, especially for real estate investors. Every time that I send out an email about the Go Zone, I get several emails in return saying “didn’t that end after 2008?”.
The reason for the confusion is that MOST LOCATIONS DID END in 2008…… but not all. There was an extension put into place for some of the hardest hit areas from hurricane Katrina.
Bottom line is that in certain locations in Mississippi and Louisiana, you can claim bonus depreciation benefits through 2010. In Mississippi, the eligible counties are:
* River;
* Stone;
* Hancock;
* Harrison; &
* Jackson.
For Louisiana, there is a much longer list of parishes including:
* Calcasieu;
* Cameron;
* Orleans;
* Plaquemines;
* St. Bernard; and
* St. Tammany.
In Alabama, no addition counties will remain open for bonus depreciation or GO Zone benefits after 2008.
The American Institute of Certified Public Accountants has published a handy guide that really summarizes all the rules, dates and locations. Click here to get their PDF report.
Go Zone Webinar - Tuesday, April 21
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Investor Alert: Bank Owned REOs Without Pictures?
April 2, 2009
Many people believe that now is a great time to buy a bank owned properties (see yesterday’s poll). In some locations, you can literally buy for pennies on the dollar.
In addition, in some select areas, properties can be rented to generate 18-25% cash-on-cash returns while still picking up substantial equity.
That is the good news but what do you need to worry about??
The “No Bull” version is that these properties are being offered by everyone, with many of them junk. Heck, it wouldn’t surprise me if Joe The Plumber was trying to get in on the action.
Over the last few months, we have sat in on about 1.2 million webinars (or at least if feels that way) of different groups “pitching” their homes. There is a lot of things to consider to separate junk from good, but let me give you one insider’s tip:
If the offered property is supposedly rehabbed but the provider has been “too busy” to take pictures inside & out, it should raise a flag.
We have been actively looking for the best cash flow homes for ourselves and our clients and it is amazing how many providers don’t have inside pictures. At least for me, I have a hard time believing in a property if I can’t at least see what the inside of the property looks like.
BE REALISTIC In Your Expectations
Please realize that this is a FAST MOVING industry. So, it is not unreasonable for providers to have to sequence the process. From the best providers, here is the process that we have seen:
- You get exposed to the property immediately after their purchase (raw form):
- You decide you like that location and then go to contract (with only exterior picture);
- Their team hits the ground, gets pictures, finalizes their game plan to rehab, and gets info to you;
- You then close AFTER seeing interior pictures
Now realize that these pictures can still be a little rough….. rehab is typically scheduled shortly after you close. It is paid for by the property provider. So when you look at the pictures, DON’T EXPECT pristine condition…. it won’t be. However, you will be able to get a good idea of layout and current condition before they rehab it for you.
Are You Really Ready For What You Will See?
Having been in this business for quite some time now and having seen my share of preforeclosures, VA Repos, and bank REOs, I am over the “shock factor” when I first got in this business.
When someone goes into foreclosure and gets hounded by creditors and debt collection agencies, many go from being an upstanding citizen to being a wild cave dweller. Believe me that most will not “tidy up” the property on exit. Rather, they are much more likely to do cosmetic damage, steal light fixtures, trash carpet, bang holes in walls, etc. 
For the unprepared, this can be quiet shocking. I know when I walked into my first VA Repo, I recoiled in horror.
Now let me tell you what the pro’s know that most people don’t. Most of that stuff is cheap and fast to fix. We have picked up homes that would disgust most people and with a couple thousands dollars and a “mow and go” clean up on the outside, place looked great. However, if you don’t know what you are doing, you can get in way over your head doing it yourself.
As long as the rehab/cleanup is being handled by the property provider, and they and their crew are experienced, then your job is to look past the cosmetic things and really quickly assess what this property will be like with a little TLC.
Loan Modifications - How To Work With Your Lender
March 30, 2009
Talk to almost any ethical homeowner these days that is having trouble with their mortgage and they will tell you the same story……
I talked with my lender but could not find anybody to help…. they told me my loan would need to be in default before anybody would talk to me seriously.
Suppose that you are actually one of the lucky people who gets to a potentially cooperative lender. Now what? There are some major things you should do at that point to maintain this relationship. Yes, it will be work but it will also potentially be extremely important for your financial future.
To be successful in this process, you have to understand how to make it work for BOTH you and the lender. Keep in mind that this will probably be one of the more emotional things that you will have to go through, so one of the tricks will be staying professional and leaving your emotions at the door. Tough to do I know.
Another common mistake is playing your cards a bit too close to your chest. Any lender is trying to sort through two scenarios: Is this person BSing me or do they have a true hardship on their hands: in the laer case, the LENDER KNOWS is is in their best interest to work with you. As a recent Realty Times article put it:
Only by laying all your cards on the table and disclosing the truth can you begin to attend to the root cause of your financial hardship and then develop and implement solutions that put you back on the path to long-term financial health. Understand your lender’s point of view Regardless of how you ended up in the situation you’re in, blaming the lender or the mortgage broker or loan officer who placed you in your current mortgage does little good, unless you can prove your point in court.
This is just a couple of the tricks to use. If you are facing this situation, then this article is definitely worth the read.
No Bull Real Estate - What’s That?
March 28, 2009
What do we mean by NO BULL REAL ESTATE for investors?
That is a frequent question that we get but fortunately, it is very simple to answer. Here is what I want you to do:
- Go to Google and type in the phrase “real estate investing”
- Look at the ads on the right had side;
- Click through to some of the sites.
When I did that, some of the ads that I see include:
Helps Get You Out of the Rat Race!
Get Rich In The Real Estate Market!
Secrets to Turning $10 into $16,547
In Real Estate Revealed!
Free Real Estate Investing Video.
Make A Fortune In Real Estate Fast!
Grow 1000% Richer With Real Estate
PLEASEEEEEE!!
I have personally participated in over $50 Million in real estate and most of this stuff is junk….. some value, but frequently very little.
We wanted to bring a web site together we some of the most ethical people we have found in the business. While we are huge proponents of real estate investing, we wanted to offer information and properties without all the hype….”Just straight forward information with the Good, The Bad, & The Ugly exposed”.
-
Who Is "REALLY" Making $ In Today's Real Estate Market?
Our 29,689 Members Tend To Agree...
It's Usually Not The GURUs
Have you ever noticed that every "Guru" real estate pitch sounds the same........
They once were poor, but now are rich working only 5 hours per week, and you can be rich too if you just buy their "can't fail system".
Or have you noticed that every property promote has a can't miss proposition, if you just buy TONIGHT.
At the NoBullRE club, we are huge believers in real estate investing...... but we also know that every approach has two sides: Nothing is perfect.
If you want unbiased ("No Bull") facts of who is making money, how are they doing it, and where do they get their knowledge, then you don't want to miss joining the NoBullRE Club
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