For all of you fans of staging...watch out for these costly decorating mistakes.
1. Toilet Rugs (one rectangular rug 6 inches or more from the toilet is fine)
2. Too Many Photos (use albums and feature just a few photos)
3. Boring Foyer (first impression)
4. Decorate out of theme (Hawaii in Alaska)
5. Outdated accessories
6. Lopsided furniture arrangements (looks like a cell phone signal)
7. Keeping something you hate
8. Too Formal Room (not allowed to sit in there)
9. Traffic Pattern of Furniture
10. Everything Matches (the whole house can come in a bag at Bed, Bath, and Beyond
11. Following Fads
12. Furniture that doesn't fit
13. Floating area rugs
14. Bright Lights (globes)
15. Frames Hung too High (should always be at eye level)
16. Tacky Couch Covers (pillows and throws do the trick)
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.miltonyates.com
Monday, December 31, 2007
The Best Way to Learn Real Estate Investing in DC, Maryland (MD), Virginia (VA), and Dallas, Texas
A lot of people wonder why their dreams of becoming
a successful Real Estate Investor aren't quite coming
true. I can probably conjure up many theories of WHY,
but there is a major misconception when it comes to
effective vs. ineffective learning environments.
It is no SECRET that a student will learn more in a
one-on-one environment than in any other circumstance.
It may not be as glamorous, commercial, or even fun; however,
what is the goal? The goal of any learning environment is
to learn. A lot of students are LOST in their efforts
to simply understand basic concepts of real estate
investing. Why do you ask? The class size is too large.
It is very difficult for ANY teacher to satisfy the learning
pace of 100 different students.
A quick example: When searching for a High School for your
son or daughter, one of the first questions you will ask a school
is: what is your class size? The reason you ask the class size is
because you are aware that your child will learn more and will be
more equipped with information if there are only 15 or 20 other
students. So why do you think you are any different than your
child? Think about a Business Law class with 75 other kids
confused about how to understand the differences of
cross-border accounting, and how those differences can impact
cross-border post-transaction M&A disputes. Exactly. The law
of averages says many of those students will not learn and will
eventually fail or drop out of the course.
So if I am explaining the proper way to purchase a property
using a land trust and an installment land contract, subject to
existing financing; there is a chance you may become extremely
frustrated if your questions aren't addressed because there are
too many other students. This is exactly why you see people get
started in Real Estate Investing and then decide that it may not
be for them simply because they didn't learn.
From experience, students who learn in a modest capacity with
small class sizes or better yet one-on-one, have a significantly
better chance of being successful as Real Estate Investors.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.miltonyates.com
a successful Real Estate Investor aren't quite coming
true. I can probably conjure up many theories of WHY,
but there is a major misconception when it comes to
effective vs. ineffective learning environments.
It is no SECRET that a student will learn more in a
one-on-one environment than in any other circumstance.
It may not be as glamorous, commercial, or even fun; however,
what is the goal? The goal of any learning environment is
to learn. A lot of students are LOST in their efforts
to simply understand basic concepts of real estate
investing. Why do you ask? The class size is too large.
It is very difficult for ANY teacher to satisfy the learning
pace of 100 different students.
A quick example: When searching for a High School for your
son or daughter, one of the first questions you will ask a school
is: what is your class size? The reason you ask the class size is
because you are aware that your child will learn more and will be
more equipped with information if there are only 15 or 20 other
students. So why do you think you are any different than your
child? Think about a Business Law class with 75 other kids
confused about how to understand the differences of
cross-border accounting, and how those differences can impact
cross-border post-transaction M&A disputes. Exactly. The law
of averages says many of those students will not learn and will
eventually fail or drop out of the course.
So if I am explaining the proper way to purchase a property
using a land trust and an installment land contract, subject to
existing financing; there is a chance you may become extremely
frustrated if your questions aren't addressed because there are
too many other students. This is exactly why you see people get
started in Real Estate Investing and then decide that it may not
be for them simply because they didn't learn.
From experience, students who learn in a modest capacity with
small class sizes or better yet one-on-one, have a significantly
better chance of being successful as Real Estate Investors.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.miltonyates.com
Making Money in Real Estate Investing in DC, Maryland (MD), Virginia (VA), and Dallas, Texas
Understand that the success of your Real Estate Investing
Business is determined by how well you understand the
principle of sow and reap. A major misconception in this
business and many other businesses is that Ability is the
reason for its success. Unfortunately it is quite opposite.
Success has nothing to do with ability. Ability is the seed
that we use to sow. Our abilities are what we are able to
physically invest towards a goal.
Success has everything to do with your will to be successful.
If your Ability is sown properly, then your resources will
multiply and your business successes will overflow. Talent
can be wasted. When you realize your ability, you must
seek direction, be deliberate, and take action quickly.
Remember that Real Estate Investing is NOT a "Get Rich
Quick" scheme but a wealth building tool. Just like any
other business or project, it requires a commitment to
the process. A process is defined as a progress advance;
something going on or proceeding. A process is a natural
phenomenon marked by gradual changes that lead toward
a particular result. A process is a continuing natural activity
or function.
Enjoy the process of Learning Invest in Real Estate properly
and soak in both the successes and the failures of your business.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.MiltonYates.com
Business is determined by how well you understand the
principle of sow and reap. A major misconception in this
business and many other businesses is that Ability is the
reason for its success. Unfortunately it is quite opposite.
Success has nothing to do with ability. Ability is the seed
that we use to sow. Our abilities are what we are able to
physically invest towards a goal.
Success has everything to do with your will to be successful.
If your Ability is sown properly, then your resources will
multiply and your business successes will overflow. Talent
can be wasted. When you realize your ability, you must
seek direction, be deliberate, and take action quickly.
Remember that Real Estate Investing is NOT a "Get Rich
Quick" scheme but a wealth building tool. Just like any
other business or project, it requires a commitment to
the process. A process is defined as a progress advance;
something going on or proceeding. A process is a natural
phenomenon marked by gradual changes that lead toward
a particular result. A process is a continuing natural activity
or function.
Enjoy the process of Learning Invest in Real Estate properly
and soak in both the successes and the failures of your business.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.MiltonYates.com
Thursday, December 20, 2007
Remember to Mind Your Manners on the Internet
It has been said that people who curse lack the vocabulary to put their feelings into words.
Some people writing on the Internet apparently have this fault. Not that they all use swear words, but their rudeness shows the same deficiency. And the anonymity of the Internet makes them believe it's OK to insult or threaten people without fear of reprisal.
When writers can't see the consequences of rudeness on the recipients' faces or hear it in their voices, it is easier to cross boundaries. But people who use pseudonyms while posting to Web sites can be trackable through their Internet Protocol addresses.
In her "Miss Manners" column, Judith Martin says the Internet is reflecting the increasing rudeness in everyday life as displayed on talk radio, TV talk shows, and in political discourse.
"Society has gotten very abrasive," Martin says. "In the slightest altercation, people come out swinging and swearing. Civilization is about thinking before you express everything."
Interviewed by USA Today, Craig Newmark, founder of Craigslist says, people on the Net are overwhelmingly trustworthy and civil to each other. But there are fanatics and crazy people out there. On many sites, however, people are kind and supportive.
It is to your benefit to be among those who are trustworthy and civil.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.miltonyates.com
Calculating Retirement Income from Rental Properties
Whether you have a 401k or other retirement plan, income from a rental
property can make your later years more enjoyable.
After finding one in your price range, the next step is calculating its
cash flow. That means determining what your annual expenses will be and
deducting them from the rent. The balance is your cash flow.
Depreciation sounds like an expense, but it is generally a tax advantage.
On a $125,000 property, for example, the depreciation over 27 and one-half
years comes to $3,636 per year. This is a tax deduction.
In the early years of your mortgage, interest will reduce earnings on the
property so you won't have much of a profit. During this time, the
depreciation comes in handy to reduce taxable income from other sources.
In later years, it will reduce the amount of tax you pay on rental profits.
When you retire, you can use monthly rental income for normal expenses
and travel.
Or you can sell the property and have a lump sum to use for something you
always dreamed of, like a luxury RV in which to tour the country. In years
to come, your property could double in value.
Some things to consider when looking for a rental property:
* Good location. Today, rents are rising and will continue to rise in
stable neighborhoods. The location should be not too distant from where
you live now.
* You can often buy a duplex for not much more than a single family home,
and rents will be higher.
* Find a building that's not too old so it will comply with building, zoning,
and fire codes. And it will have lower maintenance costs. Have it inspected.
* Have your real estate agent tip you off to a building with an out-of-town
owner who is eager to sell. Sometimes such owners will take a two- or five-year
contract for deed, which means a very small down payment.
Blessings to Your Real Estate Successes,
Milton B. Yates
www.miltonyates.com
Deciding Whether to Buy or Build (Impact Fees)
Impact fees are taxes. They are a new kind of tax that many cash-strapped
cities are assessing on remodeling and new home construction. Depending on
where you live, they can be substantial. You won't find 'impact fees' in
every city or county.
You'll find impact fees used in some cities in South Carolina, California,
Oregon, Florida, Colorado, Arizona and Washington. Typically the fees are
assessed by cities to pay for new roads, parks, and sewer lines.
According to Duncan Associates, a Texas consulting firm that tracks them,
impact fees can add an average of $10,500 to the cost of a new home in cities
where they are imposed. Of course, many cities have substantially smaller fees.
Property rights advocates are against the fees, saying local governments are
just afraid to go to taxpayers to ask for more money. But proponents say the
taxes are fair because they are targeted at the very people who are causing
an impact on the city services: builders of new houses.
In any case, these fees are rarely assessed on the sale of an existing property
though the fees could raise the price of a property.
This is something to consider when pondering whether to build or buy. You can
easily check to see if a locality assesses impact fees by checking with the city
building permits department.
If you have a question you want to ask, email me at info@miltonyates.com.
I will be glad to help.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
www.miltonyates.com
The Tax Advantages of Owning
Whether you own a mansion or a mobile home, many home-related expenses are tax deductible.
Mortgage interest and property tax are well-known deductions. To take advantage of them, you have to file the 1040 long form and Schedule A. For some homeowners, however, it might be better to file the EZ form because standard deductions would be greater than the allowable expenses.
The interest on a home equity loan is fully tax deductible unless the balance on the original mortgage plus the equity loan is greater than the property's value. After that, it's on a sliding scale.
If you bought a home after Jan. 1, 2007, mortgage insurance is fully tax deductible if your income is $100,000 or less.
Mortgage interest and property taxes on a vacation home are deductible. But it doesn't even have to be a house. It could be an RV as long as it has cooking, sleeping, and bathroom facilities.
If you paid points to get a better interest rate on any of your home loans, you can deduct the points in the year you paid them. If you refinance the home, points are deducted over the life of the mortgage.
If you changed jobs and had to move more than 50 miles and had to sell a home because of the move, moving expenses are deductible unless reimbursed by an employer.
When your home has been damaged by a natural disaster such as fire, hurricane, or flood, some of the bills for renovating the property that were not covered by insurance can be deducted. Check with your tax preparer for more information.
Do you have a home office used on a regular basis for business? Keep records on the percentage of the house that is used for business and make a proper allocation of expenses. For example, if 20 percent of your house is used for business, you will be able to deduct 20 percent of utilities and basic home repairs.
Keep records that show what you do in your office to constitute a business activity.
Blessings to Your Real Estate Investing Successes,
Milton B. Yates
This is a Great Time to Buy a Retirement Home
Here's one facet of the real estate market you can be pretty certain of. Ten years from now, prices will be far higher than they are today.
That's particularly true of properties with spectacular views. But whether you are looking for a cottage in the mountains or a house on the beach, the place doesn't have to generate the same rate of return you demand for other investments. You are buying a lifestyle.
That situation has put people in their 40s, 50s and 60s into the market. While sales of primary residences fell last year, vacation home sales rose nearly 5 percent, says the National Association of Realtors. The typical buyer of a vacation or retirement home was 44 years old.
There's no question that second homes come with expenses, so you have to ask yourself if you can afford one. Don't rush into buying. If money is tight, however, you could consider buying now and collecting years of rent to defray your costs. For the first time in years, higher rents mean they will cover, or almost cover, the costs of mortgage, taxes, insurance, and maintenance.
The benefits of a vacation/retirement home are many. The transition from work to retirement is eased because over time you have met people and become part of the community.
Buying while you still have children at home is a plus. They look forward to being at the vacation place. As they grow up and change jobs and cities, it will always be a gathering place. It will be a place to come for a vacation and for Christmas or Thanksgiving.
In today's market, many sellers are eager to make a deal.
Milton B. Yates
www.miltonyates.com
Skip PayDay Loans...Credit Unions or Personal Loan Companies
Want an instant loan from a company that won't even bother with a credit check? A payday loan could help for now, but it will be very expensive, especially if you renew it several times.
Payday lenders have you write a check for the loan plus their fee. The loan usually lasts up to 14 days. Then you either repay it with cash or let the lender cash your check.
The fee is usually $15 or $20 per $100 borrowed. The fee is $30 if you borrow online. Annual interest rates can be to up to 500 percent.
If you are short on payday and you renew the loan, you multiply the interest. Letting a $300 loan ride for a year can cost $2,340 in interest, and you would still owe the $300.
Lender personnel often encourage people to borrow more than they need because they want to earn bonuses. There are other ways to get cash, such as borrowing from relatives. If that isn't an option, many credit unions have short-term loans with lower interest rates and convenient payment plans.
In the 12 states that don't allow payday loans, consumer finance companies offer short-term loans, as do many finance companies in other states.
A credit union is the best choice according to the Center For Responsible Lending. The interest rate is more favorable, and arrangements can be made to deduct payments over time from your savings or checking account.
A recent federal law caps interest on payday loans to military families at 36 percent.
Blessings to Your Real Estate Investment Riches,
Milton B. Yates
www.miltonyates.com
When You're Late Again, Ask Yourself Why!!!
If you often find yourself rushing to an appointment, and not getting there on time, you could be a victim of misconceptions and miscalculations.
Optimism is good, but not when determining how long it will take to drive through traffic and park your car. You have to allow a safety margin to account for unforeseen delays.
Most chronically late people consistently underestimate needed time by 25 percent to 30 percent, says Diana DeLonzor, author of Never be Late Again (Post Madison).
At the University of California Haskayne School of Business, researcher Piers Steel says one cause is that people don't get motivated far enough ahead of their deadlines. Steel is the author of an article called "The Nature of Procrastination."
Psychologists once thought the tardy were late because of avoidance and anxiety. That proved not to be true because the same people were late arriving at events they enjoyed.
Tardiness is contagious. When others know you will be late for a meeting, they will be late too, wasting time for those who were punctual. Late people are more likely to change punctual people than the other way around.
Some offenders say being late makes them feel important because everyone has to wait for them. Usually, however, they lose respect.
Tardy people have their reasons, but the price can be high.
Blessings to Your Real Estate Successes,Milton B. Yates
www.miltonyates.com
Wednesday, December 19, 2007
Milton's Tips on Creating Your Personal Cash Flow Plan
Here are a few tips for keeping your financial world on track. Check them out so you won't run short before the new money comes in.
* Make a master list of expenses that don't occur monthly. Example: January, pay off Christmas bills; February, two kids' birthdays; March, car insurance; April, income tax; May, property tax; July, vacation; August, fire insurance. Don't let seasonal bills come as an unpleasant surprise.
Add up annual and semi-annual expenses and deposit one-twelfth of the total into a special savings account each month.
* Keep required payments low. If you buy a car, get a simple interest loan for a longer period of time. When cash flow is tight, pay the minimum. When it isn't, pay more or make an extra payment.
* Avoid charging to credit cards for big-ticket items such as furniture. Save something each month toward the purchase and buy for cash.
* Keep your emergency fund intact and with enough money for several months expenses. If it's absolutely necessary to borrow from it, make an agreement with yourself to pay back a certain part of the borrowed money each month.
Milton B. Yates
www.miltonyates.com
It Doesn't Cost Anything...But it Pays to Say I'm Sorry!!
Here's some good news: Saying you're sorry is a sign of strength, not weakness. Some people think it's the other way around.
A survey by Zogby International asked people why they ordered pearls from The Pearl Outlet (the pearloutlet.com). Often the gift was given as an apology to a wife or girlfriend. The survey discovered one other fact.
People who were more willing to say they're sorry earned more money than those who didn't. It seems that apologizing is a factor in maintaining good relationships
About 90 percent of those who earned $100,000 or more apologize when they believe they are wrong. Only 84 percent of those earning $75,000 to $100,000 did the same. About 52 percent of those earning $25,000 or less would apologize. The survey was reported by Ann Fisher in Fortune magazine.
Even when they felt completely blameless, 25 percent of high earners apologized compared with 13 percent in the lowest income group.
Those who say they're sorry now and then are viewed more positively. Others think they are willing to learn from mistakes and mend relationships.
Another explanation may be that high earners feel more secure and are less likely to go on the defensive when challenged says Marty Nemko, author of Cool Careers for Dummies (2001).
Maybe next time we are reluctant to apologize, we should remember that high earners do it pretty often.
It helps the work run smoothly.
Blessings to Your Real Estate Investment Riches,Milton B. Yates
www.miltonyates.com
Learn Real Estate Investing in DC, Maryland (MD), and Virginia (VA) The Right Way
It is seemingly very difficult for both newbee and veteran
Real Estate Investors to get a solid handle on what the
necessary steps are for completing a sound real estate
investing transaction. It is actually quite sad that there
are individuals that have spent thousands of dollars to
learn creative real estate strategies, but get caught in a
matrix of the basics and never seem to ascend.
The big question here is, what do you do about it and how
do you go about investing without the necessary guidance?
I have the answer. It is every business owner's dream to
run his/her business on Auto-Pilot. The freedom to come
and go, be free from concerns and medial tasks, and still
profit significantly is certainly the ultimate peak for success
in the Real Estate Investing Business.
I'd like to introduce to you: Real Estate Investor In a Box™.
Real Estate Investor In a Box™ is the most comprehensive method
of investing in Real Estate and it is all "Done for You." Imagine
becoming an ultra-successful real estate investor without
ever having to buy or sell one property. Amazing right?
If you own a hammer and some nails, then you are in business.
As profitable as the Real Estate Investment business is, the
start up and floating costs associated with it can often times be
intimidating. “THE REAL ESTATE INVESTOR IN A BOX”™
keeps your set up and floating costs low, while providing you
with the best in Real Estate Investment business practices.
Here's what you receive inside YOUR BOX:
• Sign delivery and private extension
• Business Cards
• Use of WiseGuysBuyHouses.com for credibility
• 24-hour live operator
• Real Estate Lead Tracking
• Real Estate Market Comparables with each Lead
• An Acquisitions Manager
• A Sales Manager
• Real Estate Attorney and Title Services
• Deal Negotiation
• 75% of the wholesale/quick-turn profit
We work and You Cash Checks!!!!!
Click Here for More Information on
Real Estate Investing on Auto-Pilot!
Dedicated to Creating Real Estate Investing Millionaires,
Milton B. Yates
P.S. Don't forget to visit www.MiltonYates.com and sign up
for my free newsletter on Real Estate Investing...AND if you
or someone you know is interested in networking with the
#1 Real Estate Investors in DC, Maryland, Virginia, and Dallas
send them to realestate.meetup.com/797. The membership is
absolutely free and the members of the A.S.A.P. Community
DC/MD/VA Real Estate Investing and Training MeetUp are
going to pave the way to success for future investors.
Real Estate Investors to get a solid handle on what the
necessary steps are for completing a sound real estate
investing transaction. It is actually quite sad that there
are individuals that have spent thousands of dollars to
learn creative real estate strategies, but get caught in a
matrix of the basics and never seem to ascend.
The big question here is, what do you do about it and how
do you go about investing without the necessary guidance?
I have the answer. It is every business owner's dream to
run his/her business on Auto-Pilot. The freedom to come
and go, be free from concerns and medial tasks, and still
profit significantly is certainly the ultimate peak for success
in the Real Estate Investing Business.
I'd like to introduce to you: Real Estate Investor In a Box™.
Real Estate Investor In a Box™ is the most comprehensive method
of investing in Real Estate and it is all "Done for You." Imagine
becoming an ultra-successful real estate investor without
ever having to buy or sell one property. Amazing right?
If you own a hammer and some nails, then you are in business.
As profitable as the Real Estate Investment business is, the
start up and floating costs associated with it can often times be
intimidating. “THE REAL ESTATE INVESTOR IN A BOX”™
keeps your set up and floating costs low, while providing you
with the best in Real Estate Investment business practices.
Here's what you receive inside YOUR BOX:
• Sign delivery and private extension
• Business Cards
• Use of WiseGuysBuyHouses.com for credibility
• 24-hour live operator
• Real Estate Lead Tracking
• Real Estate Market Comparables with each Lead
• An Acquisitions Manager
• A Sales Manager
• Real Estate Attorney and Title Services
• Deal Negotiation
• 75% of the wholesale/quick-turn profit
We work and You Cash Checks!!!!!
Click Here for More Information on
Real Estate Investing on Auto-Pilot!
Dedicated to Creating Real Estate Investing Millionaires,
Milton B. Yates
P.S. Don't forget to visit www.MiltonYates.com and sign up
for my free newsletter on Real Estate Investing...AND if you
or someone you know is interested in networking with the
#1 Real Estate Investors in DC, Maryland, Virginia, and Dallas
send them to realestate.meetup.com/797. The membership is
absolutely free and the members of the A.S.A.P. Community
DC/MD/VA Real Estate Investing and Training MeetUp are
going to pave the way to success for future investors.