Last month I explained why sellers who live in the property they are selling usually do not have to pay high capital gain taxes. It is the exact opposite for property owners who do not live in the property they are selling. This is why I always prefer buying properties from sellers whose property is not their primary residence. These sellers will definitely have high capital gains taxes to pay if they get all cash when they sell.

Paying high taxes can be a huge deterrent for many sellers once they understand how much they will be losing. On the other hand, if the sellers do not, or have not lived in the property as their primary residence and you can’t convince them that if they get all of their money from the sale of their property at closing they will have to pay high taxes in the year of the sale you need to explain to them…  Read More→

The late Jack Miller was one of my primary real estate investing teachers.  He was a wonderful man and an incredible educator and mentor.  It’s hard to believe that he went to heaven almost six years ago…not a day goes by that he and I don’t have a conversation in my head. 

Jack was the type of guy who very much marched to his own drum.  One of his best quotes was: Never take orders from paint.

Let me explain: Have you ever turned onto a street, seen the One Way sign and realized that you were going the wrong way?  What did you do – an immediate U-turn, right?  That’s what most of us would do.  But not Jack!  Jack would keep going the way he was going and say, “Never take orders from paint!”  Read More→

They’re not as commonly used as invoices. But if you need them, they’re there.

When you want to document sales that you can’t (or won’t) fulfill immediately, but you plan to do so in the future, you can’t create an invoice just yet. This is where sales orders come in.

You may never need to create a sales order for a customer. Perhaps you have a service-based business, or you never run out of inventory. Or you simply don’t enter an order unless you know you have the item(s) in stock.

But if you plan to use sales orders, you must first make sure QuickBooks is set up to accommodate them. Open the Edit menu and select Preferences, then Sales & Customers. Click the Company Preferences tab to open that window.  Read More→

I hope all of you and your families affected by Hurricane Irma are all safe with little to no damage, and if that’s not the case, my thoughts and prayers are with you and your family.   Irma taught me some valuable lessons. There are more than a few, but in this article I want to share with you 4 lessons that she taught me.

1) Worry: I’m sure many of you spent much time worrying about your family and loved ones, your safety, your rental properties, and much more. Personally, I probably took 10 years off my life with the amount of worry I experienced.

Shantideva, an 8th century monk said, “If a problem can be solved why worry, If a problem can’t be solved, then what use is it worrying?”  Read More→

“Negotiating is not something to be avoided or feared – it’s an everyday part of life.” ~ Leigh Steinberg

What does the term ‘negotiate’ conjure up in your mind?

• A conflict where each side tries to ‘win’ by outsmarting the other?
• A car salesman going to ”talk to his manager” about your offer, when you know he’s just going to get a cup of coffee and let you sit and stew?
• A store clerk trying to convince you to buy something you don’t need, for more than you want to pay?

Do you get sweaty palms and a dry throat just thinking about negotiating with a homeowner?

I hope not! But if you do, rest easy, because it’s really not difficult, if you keep a few things in mind.  Read More→

Land is a beautiful thing, regarded by many as something of value in many places.  Similar to home ownership, land ownership is viewed oftentimes as a significant asset that increases in value over time, in particular in areas that are more developed or developing.

It should come as no surprise then that wholesaling land can be just as effective as flipping a house.  But there is more to land than just dirt.  There are three primary categories to consider:

1. Undeveloped raw land – these are lots with no utilities of any kind and has never been built on

2. Developed land – these are lots with utilities in place, may or may not have ever been built on but has been recognized by the city as at least ‘somewhat ready to go’ for construction

3. Teardowns – these are lots with a house on them that is no longer habitable or perhaps is habitable but due to property values, age of home or other variables is better suited for demolition and new construction Read More→

Real estate investing has always been one of the ways that the determined investor can excel to great heights regardless of one’s educational, financial, or credit level.

I like to say there’s always time to do it right the first time.  And in that spirit, I want to prevent you from making some of the same business mistakes I’ve made by sharing some foundational nuggets I’ve learned along the way. 

The first and most paramount tool an investor can have is a solid real estate investing education.  I cannot stress this point enough.  Investing now is made up of so many different venues, options and techniques, you have to be prepared for any and every thing you may come across.  If you aren’t prepared, that could mean leaving money on the table.  I would challenge you to have at least a general idea of the different RE investing techniques.  REIAComps is an avenue to help you see which areas are most profitable.  This will assist you in deciding what area you enjoy and in which you work well.  Read More→

Since being involved in investment real estate I have seen an unbelievable amount of disregard to details. At first I was surprised given that purchasing a house was such a large investment. These errors and/or lies range from rehab estimates to after repair values. Sometimes the information is an error like a typo or lack of knowledge. Other times it’s the seller, usually a wholesaler, attempting to hide the truth or sugar coat a bad situation. So like a carpenter, make sure you measure twice, sometimes three times, before you cut.

A few days ago, I received an email from a wholesaler that usually mass emails marginal deals. This time the numbers were horrible. Here is an example of what the real estate numbers looked like:  Read More→