The Real Estate Investor’s Resource

Investors are often interested in the real estate professional status for tax purposes because having that status allows one to write off greater losses against their income.  Whether or not you qualify for the status depends upon how much time you spend on real estate activities. 

Any time you have a question regarding tax code, you should consult a CPA that is knowledgeable specifically about real estate investing.  Not all CPAs are up to speed on the specific codes that benefit investors, if you are investing in real estate, find a CPA that is. 

It is also important to remember that tax codes are always changing and your tax situation, income and other factors are most likely changing from year to year.  This is all the more reason to have a good CPA that understands real estate investing (and your situation) so that they can solve the good old tax code for you!

Choose where you want to specialize and spend your time.  In other words, don’ try to know and be an expert at everything in your real estate investing business.   Unless you have a true knack for studying and understanding tax code, this is one area that is best left to the professionals.

Things have really been crazy lately - a part of the craziness has been my computer crash leaving me behind on many tasks including blog postings. I’ve been wanting a new computer that’s faster, has more memory and capacity for some time now. It’s amazing how wishes can come true. My old computer started breaking down piece by piece -it was so slow, then the fan stopped working and within a few days the screen went blank. A new project and fast, I was now looking into the latest and greatest in the computer world.

Everyone said Vista is a problem, find a computer with XP. Well, that was close to impossible. The only option I found for laptops was to have a new machine built with XP by Dell. Since I was not interested in Dell and even the Mac didn’t support my business applications like ACT, Quickbooks and other programs, my option was to upgrade to Windows Vista - so I have.

I don’t think that the problem is that Vista is a bad operating system. Hey, years ago I had to buy a new desktop when the only thing available was the ME operating system, which was nothing but a problem. Vista seems to work great. The problem is that it doesn’t work with most older versions of software, which means upgrade, upgrade, upgrade and spend more money. Most all of my programs have had to be upgraded and that takes time and money.

On the bright side, having a new computer that is speedy with the latest and greatest features and software is a great feeling. I’m looking forward to rocking in the new year with a fast computer!

With that said, let me give you the coaching tip here. Researching, purchasing and overcoming the change with the new computer and transfer of data (let alone this being the holiday season) has been a challenge. However, remembering that I can go into the new year faster and better as a result of this challenge provides me with a light at the end of the tunnel. Most things that are worth while require work and sometimes even a little aggravation along the way, but the important thing is to keep the right perspective and the vision of what is to come in the future - try to visualize the fruits of your labor whether it’s a computer, real estate or other.

I always tell my real estate investor clients to talk to the neighbors in any area where they plan to invest. Getting familiar with an area is easy if you will just walk around and talk to the neighbors. You will be surprised what you find out about the neighborhood, the neighbors and even specific properties when you do that. I sometimes casually walk my dogs in new neighborhoods where I am considering investing and stop along the way to chat with anyone I see outside.

I have a friend who is looking for a new home in his daughter’s school district. His daughter lives with his x wife and their home is quite a distance from his current home. He wants to be closer to his little girl so he has set out on a search for a new home. After driving through numerous neighborhoods in the school district and narrowing it down to a couple of neighborhoods in the area, he was still having a tough time deciding between those neighborhoods.

On Halloween, we were taking his daughter Trick or Treating. Then this idea popped into my head and I said, “Let’s Trick or Treat” in those neighborhoods that you’ve chosen thus far!” We did just that. After our Trick or Treating adventure, his decision was very easy and he decided on one neighborhood that is his favorite.

Too bad Halloween doesn’t come around more often -what an easy way to check out the neighbors and get more information on a neighborhood. Even when it’s not Halloween, you can still walk the neighborhood and talk to people. Give it a try. One of my clients once told me a story about how he had heard my words about “talking to the neighbors ring in his ears”. He was shy and uncomfortable with just trying to strike up a conversation with people. However, he finally decided to talk a kid who was riding his bike. That little boy ended up telling him that someone had been killed in the house he was looking at purchasing. See what I mean? There’s a lot of information available for you if you’ll just get out in the neighborhood and start talking to people!

After my recent posting regarding the Impact of Fraud & Foreclosures on Investors, I was contacted by Atlanta Progressive News. They have done numerous stories on the Atlanta Housing Authority and the current state of affairs with public housing, which you may find interesting as an investor. You can read the stories on their website -here is the link to the story done after our conversation http://www.atlantaprogressivenews.com/news/0228.html .

Perseverance-It is constant persistence in a course of action, purpose, or state, steadfast pursuit of an aim, tenacious assiduity or endeavor, continuance in a state of grace leading finally to a state of glory. …miriams-well.org/Glossary/

I love the part of the definition that states, “continuance in a state of grace leading finally to a state of glory”. Isn’t that what we all want - to obtain a state of glory? A state where everything just works, the money is flowing and all is well!

Consider the path of perseverance, that path leading to glory. That path is typically not a winding path filled with greenery, chirping birds, waterfalls, and other things offering peace and serenity. That path is filled with uphill climbs, sharp curves and even falling boulders. However, it is managing this tough terrain and staying in action towards our purpose that makes us stronger and wiser leading us to that state of glory.

This morning, I had a coaching session with a client that I am most thrilled to work with. She is just one of the most persistent people that I’ve ever seen. The thing that I really love about her is how she looks at and uses each experience -good or bad - as a learning experience. She never wallows in “poor me”, but bounces right back and says, “Okay, here’s what I’ll do differently next time to make this better.” She has managed the real estate investing terrain so well and learned so much along the way.

In building her wholesale business, she comes across all kinds of motivated sellers - many who are other investors who have been taken by unethical investors. This week alone, she had examples of three different motivated sellers -other real estate investors who were needing to get out of their properties.

1. The seller lives in California and purchased a house in Atlanta site unseen for $180K (with a $180K appraisal) but unfortunately, the house is only worth $110K at best.
2. The owner lives in Arizona and purchased a house site unseen that is in a terrible neighborhood, the ceiling is sagging among other issues and he owes more than the house is worth. Since he owes more than the house is worth, he wants to rent it and she is helping him get it rented -even that is a struggle with the area and condition of the house.
3. Another investor is from New York and is about to go into foreclosure with 14 properties, many of which are vacant.

In negotiating a deal and helping her Arizona owner, she is learning about how much it takes to fix up and take care of property and also learning about dealing with tenants, contractors and people who promise to do things and then fall off the face of the earth.

I am so excited for her because on her path of perseverance, she has had the opportunity to learn so much and it has cost her very little. Yes, it has cost her time and aggravation; however, she has been spared getting into any major financial debacle in a deal. She is learning what is really going on in the market, as well as, how to avoid getting herself in to bad deals.

Part of the path of perseverance is the learning. Step away front the front and center seat at the stage where you will hear only the positive sides of investing and go into the field. Get on the path of perseverance -learn for yourself the truths, the ups and the downs, learn how to manage the terrain and in the process you will carve out a strategy that works for YOU not the strategy that worked for the guru. Really folks, that’s what it’s all about -what works for YOU! The only way to find that out -is to take action and start learning those real world lessons! The path of perseverance, although tough to navigate at times, will teach those lessons needed to take you to that state of glory!

I do lots of things to keep my thoughts in the right place. One of those things is subscribe to this little newsletter that sends great thoughts into my email box.

Below is the email that I received today (and the details on how you can sign up if you want to do so).
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It’s not the dazzling voice that makes a singer, Nancy. Nor clever stories that make a writer. And it’s not piles of money that make a tycoon.

At which point, of course, Nancy, failure becomes impossible, joy becomes the measure of success, and fitting into the jeans you wore back-in-the-day, inevitable. Hubba, hubba.

Left to Right: Me, Anne Lackey, Mark Lackey

Today, I was honored to be Mark & Anne Lackey’s guest on their real estate radio show. We talked a bit about the market, a few deals and how coaching can boost your real estate investing business. If you missed the show and are interested in hearing a recording of our conversation today, just email me at nspivey@transformit.net!

Mark & Anne are not only radio show hosts but they are great assets to investors. They are agents and property managers offering turn key solutions for real estate investors. They will help you find property and then they can also manage it for you. The really neat thing about Mark & Ann (besides the fact that they are just great people) is that they are also active investors so they understand the needs of investors. You can reach them at Solid Source Property Management 404-886-8789.

Be sure to listen to the show. Along with Mark and Anne, my friend and host, Mary Ann Pine provide great information every Saturday from 10 AM - 11 AM on Love 860 AM.

Listen to the “Real Estate Investing Hour’ every Saturday morning at 10-11:00 AM on LOVE 860 AM hosted by Mary Ann Pine, Mark & Ann Lackey. You can listen online at www.love860.com. Call in with you questions or comments at 404-355-8699.

Uncle Sam at the 4th of July parade in Atlanta.

Remember the old saying, “If you don’t stand for something, you’ll fall for anything”? As Americans, we are blessed with the freedom to stand for almost anything we believe in. The American flag stands as our symbol for freedom.

The colors in our flag represent the values that serve as the foundation of our country’s belief. Red represents valor, zeal and fervency. White represents hope, purity, cleanliness of life, and rectitude of conduct. Blue represents the color of heaven, reverence to God, loyalty, sincerity, justice and truth.

What about you?
What do you stand for? Personally? Professionally?
What values serve as your foundation?
What is your mission?
If you had your own flag what would it look like?
What would it stand for?

Deciding what you stand for in your real estate investing important because this is certainly an area where you don’t want to fall for just anything. You want to have a strategy, a direction, a plan – make a stand!

So, what do you stand for in…
Your real estate investing strategy?
Buying deals?
Working with sellers, buyers, vendors?
Managing your business?
Ethics?

July is Social Wellness Month. It is a month to improve one’s social and communication skills in order to be prepared in any situation. Having clarity on what you stand for in business and personally makes communication and negotiation a much easier process!

Make a pledge of allegiance to yourself - your hopes and dreams. No one believed the Colonists would defeat the mighty British Empire – except for the colonists. No one but Americans believed this country would survive. Each of us has within us the ability to transform our hopes and dreams into realities. Pledge to turn your hopes and dreams into plans and your plans into actions.

Let the spirit of our country and what it stands for be your example. Make a stand, make a pledge to yourself, design your own Bill of Rights, declare your independence and begin a transformed life! When you see the American flag let it be a reminder not only of what it stands for, but what you and your business stand for!

Have a Happy 4th of July!

My 4th was great fun this year as it was spent with some of my favorite people! The day started with celebrating freedom at the 4th of July parade in Atlanta and finishing the day at the fireworks at Lenox. From left to right, Taylor (my girl), Me, Eric (nephew), Karen (friend) & Hunter (nephew).

Mypropertywealth.com offers great investing information. I especially love statistics - visit their website for the Top 20 Metropolitan Statistical Areas in Appreciation!

http://www.mypropertywealth.com/IGOR3/itemDetail.php?itemId=1146

This month’s Atlanta Market Update

http://fasthome.info/june%202007%20Newsletter/index_files/Page295.htm

is provided courtesy of Scotchie Cochran at Keller Williams. Scotchie is a real estate agent and investor. He loves working with investors! You can reach him at Scotchie@kw.com.