I Lost Thousands Of Dollars By Trying To
Save A Dollar Day
Some weeks can be a roller coaster ride. The good thing with our adventures is we
acquire some valuable lessons, and as a result put necessary fail safes in place to ensure
things go much smoother the next time.
One of the things that we are continually focusing on are our checklists. By creating a
good checklist system you're creating a step by step process that can be passed on to
others to produce the same positive results without even having to think.
The other day one of our investors purchased another rent to own home. A beautiful
detached home with a finished basement and tons of upgrades.
Here's the interesting thing about this property. The home was priced right however, we
saw the property at 8pm in the evening, there were multiple bids on the home and we
were creeping up to the irrevocable date and time of midnight very fast. We had two
choices... let this deal pass us by or take action and get our offer in.
Knowing the value of the home, the type of tenants we could get and the positive cash
flow this property could produce, we put in an offer that couldn't be refused.
$5000 over the asking price!!
Crazy or what!! or is it?
Lets do the math; Now, the home was priced at $265,000 and we put in an offer at
$270,000. If the home is amortized over 35 years the difference works out to approx.
$17.00 a month. You can't even get a coffee a day in the month of February during a leap
year for that price.
I'm not a mathematician by any means but for $17.00 a month, we couldn't let a deal like
that slip through our fingers. Especially knowing that this home can easily cash flow. So
who actually pays for this additional $17.00 a month if you have a property that's cash
flowing? Some people may argue this, but as long as you're making money from your
property each month, that $17.00 is passed on to your tenants. In other words, you don't
have to go to your bank to withdraw your money to make a payment for it right? So... if
you are not a numbers person here is the key things to remember. When your purchasing
an investment property using our strategies, what you are really doing is providing a
service for your tenants. If the public see value in your home, they will pay top dollar for
it. Many people miss this valuable insight.
By trying to save a penny today, many people miss the big picture and lose out on tens of
thousands of dollars a few years from now on a great investment property.
Now, I'm not promoting to over pay for every house that you come across. I love a great
deal like anyone else does. What I am saying is this... understand every deal on the table
in depth before you walk away from it. You could be leaving your kid's education, your
trip around the world or simple a coffee and a bagel a day that you do not have to worry
about for a very long time.
Can Counter-Intuition And Clever Tax
Management Be Your Way Out Of The
Crisis?
Like most other investment markets commercial property is as flaccid as any other.
Owners are, naturally enough, finding it hard to find tenants as businesses are failing to
expand or cutting back on expenses including pay rises, recruitment and additional
property.
When it's impossible to increase occupancy or rents it's necessary to find other means of
increasing value. The first, most simple thing property managers can do is cut back on
services, roll back property management and cut all extraneous expenses. Spending some
of the money saved is reinvested in attracting new tenants. However, could
counterintuition pay dividends?
Driving through many streets in previously bustling shopping high spots will afford you
the chance to see just how many businesses are going out of business and putting the
shutters up for the last time. If there's no retail activity then warehousing and
administration, haulage and production all go by the bye as well. Boarded up shops not
only look bad, they spread as consumers lose confidence and stop spending in an area
where closed shops are prevalent.
What's the solution?
When a business has to call in administrators to try and come up with a package to revive
the company's fortune it seems like this manoeuvre is always followed by calling in the
receivers. It seems no business can ever survive administrators as they are invariably
bankers and accountants who lack the imagination or business sense that it takes to be a
retailer. They only see the bottom line, to increase income, to them, it's necessary to
increase retail prices. This, of course, is exactly the wrong thing to do. Putting up prices
deters customers who are in no position themselves to spend more on the things that they
need. If the goods being sold aren't a necessity customers will happily walk past without
a second thought and when sales continue to fall the receivers come in to pick over the
bones of the company.
Reducing the prices, introducing loss leaders and bulk discounts are strategies far more
likely to stimulate purchasing. The same is true of rents, reducing rents in gloomy
economic times means that shops are able to stay open rather than close down, if you
have a property you're renting wouldn't it make more sense to operate on a reduced profit
than loose the income altogether while still having to pay for insurance and servicing
while the property makes no money at all?
Unfortunately for the High Street many property owners, investors and agencies see
things the same way as administrators: cutting back on services tendered is one thing,
then to put up rents at or above the rate of inflation is quite another.
Commercial property is frequently owned by large institutional investors such as
investment trusts and pension funds. When they manage the property they hold wisely
there is a general stabilising effect on prices. When they handle the property unwisely
there is a spiralling effect leading to greater job losses, lower returns on investment and
consequently a deepening and prolonging of recession. If, as Gordon Gekko maintains,
'greed is good' it shouldn't be a rapacious, short term greed but a considered, long game
of greed which is beneficial to all.
Another creative way to reduce costs and therefore increase the portion of your income
you actually get to keep is to appeal tax. Tax is often one of the major expenses for any
land owner and reducing the amount you have to pay means that your property has more
value without putting the property price up. If you're refinancing that extra equity can be
quite a bargaining chip too. As property prices stagnate or indeed fall then appealing
them should be an annual practice as avoiding unnecessary taxes is a simple way to
prevent losing money.
Dallas Real Estate Is Affordable and
Desirable
As the ninth-largest city in the country, Dallas is a certainly a hub of activity. As a result,
Dallas real estate is also a busy market. The Dallas-Forth Worth area is a highly desirable
place to live, not only for its picturesque location and pleasant climate, but because
Dallas is the financial hub of the southwest and many important businesses and
companies are based there.
With a number of technology, manufacturing, and service organizations based in Dallas,
employees of these companies are always looking for Dallas homes for sale. With so
many fantastic choices, it is a good idea to secure the services of a reliable Dallas real
estate agent to help you properly navigate the market and find the property that is right
for you.
From gated communities to lakefront homes, Dallas homes for sale are considered to be
some of the most beautiful in the country, and also some of the most affordable. Many
people flock to live in Dallas because of its excellent communities, strong school
systems, and proximity to thriving businesses and corporations.
According to the Real Estate Center at Texas A&M University, the median home price in
Dallas is just $162,800, and to qualify to purchase a home, the buyer's required income is
$32,800. The median family income in Dallas in 2010 was $68,300 - which means that
even though the homes in Dallas are big and beautiful, most people can still afford to
purchase Dallas homes for sale. For employees of some of Dallas' biggest businesses,
there is no shortage of quality Dallas homes for sale to choose from.
Even if you decided not to live in Dallas itself, nearby Fort Worth is also a great place to
settle down. The median home price there, according to the Real Estate Center, is just
$115,000 with a typical required income at around $23,000 to qualify for a mortgage.
Recreation activities in the Dallas and Forth Worth area are also plentiful. There is a
multitude of activities for kids, which is a good thing for children and parents alike. From
zoos, museums, and aquariums to more laid back things to do like visiting parks and
playgrounds, children have no shortage of fun in the Dallas area. For adults, there is an
excellent nightlife, top-notch restaurants, bars, abundant shopping, and more.
Why wouldn't you want to live in Dallas? To get started on your Dallas home search,
contact a Dallas real estate agent today and find the home of your dreams.