The housing credit portion of the bill extends the $8,000 tax credit for home buyers who are purchasing  their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to other homeowners who have lived in their current home for at least five years and are seeking to relocate. 

Another modification to the original legislation raises the income limits for program participation from $75,000 for a single purchaser to $125,000 and from $125,000 to $225,000 for a couple.  There are also credits available on a diminishing basis above those income limits. 

Some say that this bill is merely accelerating purchases that would have occurred anyway and creating an artificial housing bubble.  Others say it is likely that the prior tax credit’s Nov. 30 expiration has already stolen a portion of housing demand from 2010. 

In signing the bill President Obama stressed that the measure is revenue neutral and will not increase the deficit.

What do you think?  I would love to hear your opinion.

Home to be Sold via Owner Finance (We Are The Bank)

The Most Liberal Home Sellers in High Point Today!

To HIGHEST & BEST BIDDER on Down Payment and Monthly Payment (acceptable to seller)

View the property on Saturday October 10 from 10 a.m. to 6 p.m. and on Sunday October 11 from 10 a.m. to 6 p.m.

Bids start at $995 Down, $500 Monthly

Traditional Dream Home

Get More information on this for sale by owner home at the following link: www.BidOnNCHome.com.

So how do you retain your tenants for long periods of time?  In this market, a great smile doesn’t go far.  You must be able to entice the tenant into leasing and remaining in the property, after all, this is a business relationship.  Here are a few good strategies that I’ve seen work well in this market:

• You want to make the property safe for the family living there.  This is an important rule when leasing your property.  When someone feels safe in the property, they tend to stay there longer. 
• Clear communication between tenant and landlord is a must.  If there is a maintenance issue in the property, it should be addressed as soon as possible, within 24 hrs.  There is nothing like a landlord that you can’t contact for a repair or a tenant that you can’t contact to collect rent.
• A tenant survey will let you know what you can improve on or around the property.  After 6 months, ask your tenants to complete a survey and get $25 off of their rent for that month.  Ask about matters such as cleanliness, maintenance, exterior areas, amenities, noise, parking and management. 
• If you have a good tenants and a vacancy becomes available on another unit, ask them if they have anyone that would be interested in renting the property.  Usually good people associate with other good people (not always the case) and this is an inexpensive way to market the property. 
• A reward program for tenants that pay on time.  An effective program that I’ve seen is telling tenants that if they pay their rent before or by the first of the month, they can knock $20 off of their monthly rent.  You can always manipulate this when you set the rental amount, so actually there’s no loss or reduction to your cash flow. 
• If you install a carport or outdoor shed to your property, you increase the likelihood of tenants leasing and remaining in your property for long terms. 

Of course proper marketing and tenant screening are essential in finding the right type of tenant.  Failure to do proper screening will cost you in the long run in tenant turnovers and repairs.  I’ve seen it done time and time again, landlords become desperate and rent to the 1st Joe that comes along.  This is your investment, sometimes you have to make those extra sacrifices and steps for it to be effective.  Set standards and follow them, be a concerned landlord, and treat the property as if you lived there yourself and you should be able to retain your tenants for longer terms.

 The patient and diligent investor who applies a well-defined and systematic approach over time will enjoy a high probability of earning above-average returns for his or her efforts.  As a real estate investor, the fruit you enjoy, however, is directly related to the amount of effort put forth on your part.  One is unquestionably a function of the other. 

Just as a beautiful and healthy tree requires sunlight, food, and water for proper nourishment, so does the process of building wealth.  Leave your fortune to chance, and chances are you will have no fortune to leave.  To build wealth, you must plant the proper seeds and then nourish them with food and water over time.  Almost before you realize it, a strong and magnificent tree will begin to take shape right before your very eyes.  Although the grand and noble oak tree exhibits towering beauty and strength above the surface of the earth, it is the tree’s root system, extending deep beneath the surface and unseen by human eyes, that gives it the ability to withstand the mighty forces of nature.  Like the oak tree, you, too, must be well rooted in fundamentally sound principles of real estate before your branches can grow.  As you apply the principles you learn from this book, you will eventually be able to enjoy a sweet comfort from the shade that your branches will provide.  Although the winds of adversity may descend on you with great vigor, if you are prepared, they shall not prevail.

To be successful in real estate does not happen by chance.  My mentor told me once, “Real estate success equals persistent effort over time”.  You must have a well-defined plan outlining your specific objectives.  Determine exactly what it is you want out of your real estate investment activities and identify your time horizon for accomplishing your goals.  Be realistic as well as specific about your objectives.  You must begin with the end in mind.  In other words, you must know where you are going before you can begin the journey to your destination.  If you don’t know where you are going, how will you know when you will get there?

If you limit yourself to just one agent, then you have only one set of eyes and ears on the lookout for good deals to bring to you.  On the other hand, if you enlist the aid of several real estate agents, you will increase the number of potential investment opportunities that you can take advantage of. 

When it becomes time for you to sell your property, you will also likely want to have more than one agent working in your behalf.  Those of you who are licensed agents are likely to disagree with me on this point, but please allow me to explain.  The reason I prefer to use more than one agent is because I know that agents tend to specialize in certain areas by farming specific communities.  Yes, I know you can list the property for sale in the MLS just like any other agent and gain access to a broad spectrum of buyers, which you have the listing and physically work that area, you are doing your seller a disservice.

We all have seen it, for example, agents take listings clear across the county and even into the neighboring counties.  These areas may be as far as 50 miles from where they live and work.  No matter how hard you try, you can’t convince me that you can effectively sell a house for me in an area about which you know little or nothing about.  Your marketing efforts will be limited to a few newspaper ads and to the MLS.  Agents selling in faraway markets are likely to have no personal contacts or relationships in that area.  They know absolutely nothing about the town or city except the name of it.  They know nothing about the school district, which is vital information to anyone with children. 

To be successful in the business of buying and selling investment properties, it is essential for you to include several real estate agents who can create a pipeline of inventory for you, as well as represent you effectively when it becomes time to sell.

Happy Investing!!!

Someone once wrote, “The world is sown with good; but unless I turn my glad thoughts into practical living and till my own field, I cannot reap a kernel of the good.”  You need to till your field, and you need to do it with a great attitude.  When positive thinking is combined with hard work, you are virtually unstoppable.

The financial side of real estate is simply 8th grade math.  Think about it: Add up the income (rents), subtract the expenses, and if you have money left over, that’s positive cash flow, and it’s a good thing.  Take the amount of positive cash flow, divide it into your down payment, and you get the rate of return on your money.  It really is that simple.  But if you’re going to do it, you have to believe it.

One must learn to remove mental limits that has held them back so far.  Who is in charge of your life?  Is it the naysayers who shoot down your dreams?  Or is it you?  If you are going to be successful in real estate, you need to be listening to people who are successful, people who are positive, people who will tell you it can be done and you can do it.  You need to take charge of your life so you can do what needs to be done to reach your goals.  Mark Twain said, “Keep away from people who try to belittle your ambitions.  Small people always do that, but the really great make you feel that you too, can become great.”

On a personal note, I’ve set goals for myself in real estate.  On my personal blog, www.torreybrothers.me, I’ve launched a personal challenge to go from a small time investor to a multi-millionaire and I’ve made it available for other real estate investors to learn from my mistakes and successes.  Visit the link above and subscribe to my blog so that you can follow me on my journey to success. 

You can be successful in real estate.  You can buy properties using several methods and have them cash flow while building your wealth.  It has been done my thousands of people and the only difference between you and them is that they took action.  Leo Buscaglia once said, “There are two big forces at work, external and internal.  We have very little control over external forces such as tornadoes, earthquakes, floods, disasters, illness, and pain.  What really matters is the internal force.  How do I respond to those disasters?  Over that I have complete control.”

Don’t look at problems as situations that will stop you from succeeding; see them as challenges that strengthen and enrich you when you solve them.  When other people say negative things, it usually reflects their own fears.  You can be sympathetic to it, but don’t expose yourself to it.  More importantly, don’t accept their fears. 

You can build tremendous wealth investing in real estate, if you think positive and work hard.

Now is the time to invest in real estate.  If you consider yourself to be an investor, part or full time, you should be making purchases to buy and hold or flip to other investors or end buyers.  The market is literally at the point where investors need to become active and aggressive in purchasing real estate. 

We are currently forming joint ventures with other investors in two aspects.  If you are an investor with a possible deal, but not sure on how to structure it, we will partner with you 50/50 and split the profit.  These deals are deals that will be flipped to new buyers/investors.  Or if you have a property that you would like to buy and hold, we will partner with you in assisting to purchase the property.  You can hire us as the loss mitigators to negotiate the deal for you.  In this particular case, there is no split available, so we will charge you a minor fee of which you must agree to before we proceed and pay us at closing.

We are making it easy for other investors to invest in real estate.  We’ve been in real estate since 2003, and have closed short sales, wholesales, owner financing, subject to deals, note purchases, and land deals.  Bring your deal to us and if it is a feasible, we will joint venture with you so you can put some cash in your pocket. 

The exit strategies we use to invest in real estate are wholesaling and owner financing.  These two strategies allow us to sell properties fast with little hassle and put cash in our pocket.  If you have a possible deal, whether it is a pre-foreclosure, distressed sale, vacant property, or pretty house with little equity, we will partner with you, 50/50, help structure the deal, and get paid together.  You bring the deal, we help structure, close, sell it, and get paid. 

Through our channel of investors, agents, and attorneys, we have all the resources that you may lack.  That’s what a business relationship is all about, one partner making up with what the other lacks.  We have agreements available to protect all parties involved.  So if you have a possible real estate deal, contact us so we can analyze it for you and give you our professional opinion.  And if it is a feasible, we will joint venture with you and get it closed.  Now is the time to take action and invest in real estate.

The first step in increasing your property value is to make your purchase in the right neighborhood.  You can change anything about a property, except it’s location.  When you think of a neighborhood, you think about it’s convenience, schools, taxes, services, affordability, safety, image, and lifestyle.  These factors all play a part in the property’s value.  You also want to consider the current appreciate rate for the neighborhood. 

Your property is your best advertisement.  By updating your curb appeal, you can boost the value of your property.  Position your property with a well-kept outstanding exterior.  More than likely, hundreds of people will pass by your property each week.  What will they notice about the property?  Will it appear as that run-down rental or will it cause passersby to remark, “isn’t that a beautiful, well kept home”?  If you want your property to generate more income, create an inviting exterior. 

You also want to cut the operating expense of your property.  This can be done by passing the expense on to the tenant, creating low maintenance houses, selecting low maintenance tenants, establishing preventative maintenance (inspections), and by having a handyman on call.  As a rule of thumb, for every $1,000 you cut in operating expenses per year, you create $10,000 in value. 

The most well known tactic to increase your property value is to perform rehabs and cosmetic updates.  It’s amazing how you can simply paint, put in new cabinet handles, and perform other minor repairs to increase your property value. 

You can also convert unused space, such as a garage, attic, or basement into a quality living space.  To earn good profits, your space conversion should achieve the following objectives: please the senses, integrate the new with the overall plan and design of the existing property, and fit the needs of the target market. 

These are just a few ways to increase the value of your property.  Remember that a property is only worth what someone is willing to pay for it.  Increase your net worth by creating value and decreasing expenses.

It caught me off guard , I couldn’t even answer the question because it was just too overwhelming to me .  I couldn’t see how someone could be so naive.  But now that I’ve gained my composure back, I would like to answer that question with not just one reason, but with 50! 

But before we get into this, I want to touch on just a couple of things.  Real estate investing consist of several investing strategies.  This includes purchasing rental properties, commercial properties, personal homes, land, real estate notes, real estate contracts, financing, etc.  People have the misconception that real estate investing is simply buying a property and renting it out, but that’s not the case. 

We must understand that today’s media is giving real estate investing a bad rap.  The reason homes are not selling at a faster rate is not totally due to the condition of the economy, but the media.  They literally have people afraid to invest in real estate.

So we MUST get over this fear of the market’s condition.  We must use fear, and don’t be afraid of fear.  We must respect it, keep going, and move past it.  This is how one overcomes their fear of, in this particular case, investing. 

The savvy investors who are investing in the current market are just enjoying the fact that they can literally buy what they want for basically what price they want.  This is one of those cases where the rich are just getting richer, literally. 

So why everyone else is falling victim to “This Market Sucks!”, here are 50 reasons to invest in real estate right now, more importantly wholesale real estate!

1.   Affordability is better then ever:  According to the National Association of Realtors’ housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The NAR’s affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
2.   Mortgage rates are historically low:  Rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.)
3.  You have a large inventory to choose from:  A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.
4.   Home prices are dropping:  Home foreclosures have a close relation with home prices, and the fact that so many people have been forced to foreclose make it easy to predict that the price of homes across the country have dropped a great deal.
5.   Less buyers means more negotiating power for you:  Those real estate agents still need to sell their homes, and the fact that there exists less competition on the homes you’re considering could translate into better savings for you. Be smart when talking to agents, and remember that the struggling market has given you the upper hand in determining price.
6.   Desperate times call for desperate measures for the FHA, more lending: Last year, over 630,000 individuals bought homes in part because of the FHA’s low down mortgage rate, and there are many experts who believe that FHA loans have been the driving force behind real estate sales recently.
7.   Appreciation:  Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.
8.   Property Tax deductions:  Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes.
9.   You could get a federal tax credit:  Purchasing a personal home is still an investment in real estate.  There’s currently a federal tax creditof up to $8,000 for home buyers who haven’t owned a home in at least three years for homes bought between Jan. 1 and Nov. 30 of this year, 2009.  That money would not have to be paid back if the home is not resold for at least three years.
10.   Builders are offering huge discounts:  Home builders are getting more aggressive with their pricing to compete with the steady rising number of all ready existent homes on the market.
11.   Mortgage interest deductions:  Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.
12.   No bidding wars:  In 2005, it was nothing to have multiple offers on one property.  Today there’s much less competition when bidding on homes. 
13.   Pride of ownership:  Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.
14.   Due diligence is welcomed:  Because buyers have very little if any competition, they no longer have to waive their inspection rights to make the offer more attractive.  Today it is expected that a buyer will order a general home inspection. 
15.   We may be near the bottom of the market decline:  This is pure speculation.  No one knows when the market will stop tanking.  Though some markets are reporting increased sales volume. 
16.   Price Correction:  The economic slowdown had an impact on this sector. The rates have come down over the past few months. Wouldn’t it make a lot more sense to invest in real estate when a price correction is taking place rather than in a heated market?
17.    You can use OPM “Other Peoples Money” to invest in real estate:  There are a number of ways to use OPM.  The best is through seller financing.  Have the seller hold a note for a property and create some desirable terms.  We’ve managed to buy and sell several homes using seller financing this year alone. 
18.   A Homeowner can Increase the Value of his/her Asset:  Aside from fixing small things, a home owner can add a room onto a house, paint the bedrooms, and update the appliances in the latest, most efficient manner. As a result he could possibly turn this $150,000 home into a $200,000 home overnight.
19.   Stability:  Real estate is less volatile than stocks. While real estate may be less liquid, and you may have to wait indefinitely before a buyer agrees to purchase your property for the price you seek, the prices are not as volatile as the stock markets. The transition towards a correction or boom takes place gradually, giving ample time for investors to read the transition and safeguard their positions.
20.   Real Estate investing is considered a business: You can use the expenses from it and deduct them from your taxes.  Anything that you purchased, had repaired, any fees and anything else related to the investment in question.
21.   Good long term returns:  Investments in property has always proved to be stable and yielded good returns over the long term. With lesser risk and probability of higher returns, this is a much favored investment option.
22.   Peace of Mind:  Getting back to maximum utility, home ownership provides peace of mind to the many who have purchased within their means.
23.   Good in a Recession:  Some investments are considered safe in times of recession like precious metals and foreign currencies. In this list of investments that are popular during times of financial uncertainty, real estate can be included. Focus on achieving positive monthly cash flows rather than immediate appreciation.
24.   They’re not making any more land:  Land is the cheapest it’s been in years.  Now is the time to jump on the bandwagon and buy all the land you can that makes sense.  Land can be purchased easy now using seller financing.  Raw land development is the most profitable form of real estate.
25.   Population in America is steady rising:  The prediction is, there will be a housing shortage in the future.  The population is growing at an astounding rate, especially since unemployment is up.  Now that housing construction has slowed to a pulp, the need for housing will increase dramatically in the near future. 
26.   Cash Flow:  If you invest in real estate right, it will cash flow for you.  Even in the down market, you can get your properties to cash flow very well.  This all stems from buying the property right and utilizing proper management techniques.
27.   Because no one else is:  I’ve learned that you always want to do the opposite of what the majority are doing.  Currently its a buyer’s market, because everyone is selling.  So in a buyer’s market you want to buy and the conditions are favorable for you.  If it is a seller’s market, you want to sell cause the conditions are favorable for you as well again.
28.   Obtain tax-free cash:  When you refinance your home, the money you pocket is tax free because it is a loan.  If you purchased your properties right, they’re cash flowing well, and your credit is fair, you should be able to refinance. 
29.   1031 Exchanges:  A 1031 exchange is when an investor uses profits from one property sale and invest them in another property, they can hold off on capital gains for future real estate transactions. More than likely, the investor will work on getting additional equity and more income and profits from additional property rentals.
30.   Repairs are welcomed:  After you have received your home inspection reports, you are allowed to submit a repair request, which asks the seller to repair certain conditions or allow you to back out of the contract if the seller will not make the repairs.
31.   Patience is tolerated:  In hot sellers’ markets, everything tends to get rushed: the house hunting, the offer-writing, the negotiating, everything.  Now, a buyer can take his/her time looking through the Multiple Listing Service, and visiting several homes, before making an offer.
32.   Because my mentor said so:  I believe that you listen to those that are doing what you want to do and are successful.  My mentor, Roger Salam, said that now is the time to invest in real estate.  You definitely don’t want to take real estate investing advice from someone who isn’t successful in investing. 
33.  Mass majority of the wealthy people made their money in real estate:  I always learned that if it’s not broke, don’t fix it.  More then 50% of the nations millionaires made their money investing in real estate. 
34.   Renter pays off mortgage:  If you have a mortgage on your home and you are renting it out, then the renter is essentially paying off your loan for you. Depending on how your monthly mortgage payment compares to the rent you are charging, the renter pays the money you owe to the bank in interest and pays to decrease the overall principle owed.
35. 35.  Retirement vehicle:  There are many different methods of saving for retirement. While I don’t advocate any one method over another, a home can be used in many ways during one’s golden years.
36.   Bird dogs will bring you a deal:  If you want to invest in real estate now, you can do so without searching for properties yourself.  All you have to do is let the bird dogs know exactly what you are looking for, and they will bring you a great deal with pictures, videos, etc.  Wholesalers are plentiful in the market and have networks of Realtors and associates that can obtain the deal you need. 
37.   Cash is KING:  If you have the money siting making a lousy 3% return, invest in real estate and increase your return.  Just be sure to buy it right.  Cash is king and in this market, you can rule with an iron fist.
38.    You don’t need a lot of money:  In today’s market, you don’t need a lot of money to purchase a house.  If you know how to buy a house, you can purchase several.  A partner of mine used $10K to buy 4 homes.  It’s all about knowing how to buy houses. 
39.   Property is something tangible that you can use and enjoy:  Unlike stocks, property is an investment that can be used and enjoyed by you and your family. 
40.   Real Estate is More Forgiving then Stock:  When you invest in real estate and buy properties right, if the market takes a downward spiral, this will happen over time, not in just a few days.  The real estate market is more forgiving then the stock market because stocks can drop significantly in just a short time.
41.    Cause Billionaire Donald Trump says Be Bold and Buy Real Estate NOW:  Real estate entrepreneur Donald Trump says to be bold, fight fear, and invest in real estate.   
42.   Commercial Real Estate has Only Begun to Enter a Cyclical Downturn:  It’s safe to say that the residential real estate market won’t fully recover till the commercial market begins it’s upturn.  Commercial properties began to go south after residential market was slammed.  So it is safe to assume that when the commercial market begins an upturn, the residential market will be nearly fully revitalized.
43.   Investments made when the Market is Down are more Profitable:  A number of investors are just sitting, waiting on the market to turn.  The fact of the matter is, once the market begins to pick up, all of the great deals will be taken by investors such as myself.  A change in direction of the real estate market is similar to an oil ship changing directions, it’s a slow process.  You won’t realize the oil ship has changed directions till after it has changed.  The same for real estate, you won’t recognize the change till after it has already begun.
44.   There’s an Upward Trend in Rental Rates:  Due to increased demand for rented spaces, rental rates are climbing.   This is related to the increased preference of most families to rent home spaces amidst the difficulties that is hounding the real estate industry, foreclosures.
45.   Multiple Properties Create Multiple Streams of Income:  If you dedicate to purchasing one (1) house per month for a year, and rent or sell them via owner financing, you can create multiple streams of income that will surpass your 9-5 income. 
46.  Capitalizing on the Gains:  When stock doubles in value, in order to benefit from that increase, you generally have to sell the asset, or at least a portion of it.  When your real estate doubles in value, you do not have to sell at all.  You simply go back to the bank and refinance.
47.   Leverage:  Using leverage, while being careful to  buy properties with good rental yields, provides greater returns.  Using $100K to purchase three properties with down payments, instead of one for $100K cash, can greatly increase returns. 
48.   Seller Expectations:  Most sellers including banks are now working harder than ever to move their properties.  This not only translates into lower sales prices, but more concessions.
49.   Real Estate Investing Education is very Plentiful:  If you want to learn how to invest in real estate, there’s tons of information right at our fingertips via the Internet.  There’s no reason why someone can’t get educated in real estate investing with little funds. 
50.   BECAUSE THIS IS AMERICA!:  We live in America, the land of endless OPPORTUNITES.  Take advantage of that, and live the American dream, invest in real estate!

Although the fear-mongers are intent on leading you to believe that now is NOT the time to invest in real estate, don’t allow them to discourage you from getting started, or moving forward with your decisions to capitalize on the current real estate market.  We offer wholesale real estate at 30 – 50% of current market value, sign up on our VIP Buyers list today!

I want to hear from you.  If you can come up with additional reasons to INVEST IN REAL ESTATE right now, please leave them in the comment section for the entire community to see.  Thanks for your input.