Vote Online for Charity to WIN $10K to Transform Neighborhoods -Time is Running Out

Transform a Neighborhood is a non-profit start up designed to improve lives and neighborhoods. Many of our neighborhoods today are suffering as a result poverty and crime,and these problems are being exacerbated by the foreclosure crisis and houses sitting empty. In many of these neighborhoods, it is nearly impossible for those empty houses to be sold because lenders do not want to lend in these neighborhoods. Unless there is a collaboration of residents, governments, charitable organizations, and investors, this problems will only become worse. Transform a Neighborhood's mission is to facilitate that collaboration, as well, as take an active role in the neighborhoods by bringing volunteers and investors. You can visit the website where there are a couple of videos if you like http://www.transformaneighborhood.org/ .


Transform a Neighborhood has been entered in an idea contest to WIN $10K, which will provide start up capital for the organization. Your vote can potentially help many many lives and neighborhoods!

Yesterday I was reading Bruce Wilkinson's Prayer of Jabez. Bruce talks about the part of the prayer where Jabez pleas for more territory. This part of the prayer is where you ask God to enlarge your life so you can make a greater impact for Him. I love the next part as Bruce writes, "...we can see that there was more to his request than a simple desire for more real estate. He wanted more influence, more responsibility, and more opportunity to make a mark for God."

I have always prayed to be given the opportunity to positively impact lives and am thankful that I have been given the privilege to do that personally and through my profession as a coach and speaker. Transform a Neighborhood is bigger calling and it's definitely about more than a simple desire for more real estate. It's about answering the call to do something bigger and helping change lives in a big way.

Winning the Ideablob Contest would jump start this organization and mission, but there's a stiff competition to win the $10K. Today we are in 2nd place, we were in 2nd a few days ago and then fell to 3rd and then went back to 2nd. We only have until tomorrow, Thursday 8/21 to receive votes to help the idea to the finals. Every vote makes a big difference. This week has been so incredibly exciting as friends, family, colleagues and clients have not only shown their support by voting but many have also spread the word to their other contacts. It is fun watching the votes roll in over email as the days progress. Every time I hear the email sound, I say, "Hope it's a vote." Wow, there's one now -just as I write this.

I'd appreciate your vote and/or advice on Transform a Neighborhood, which you can give at
http://www.ideablob.com/ideas/2927-Transform-a-Neighborhood-TAN-

There's a quick email and user name sign up required but the company does not send you a bunch of junk email. However, if we make it as one of the sprint winners this week then we will make it into the finals. I believe that if we make it to the finals, you will get an email next week letting you know to vote for your favorite finalist.

Thanks to everyone for your support!

Please, VOTE to help Transform Neighborhoods

I am working with a group a people to start a non-profit to bring investors, communities, other non profits and government together to transform neighborhoods. The Transform a Neighborhood idea has been entered in a contest to win $10K. The prize is awarded based on votes.

Would you help support a great cause by voting? Just click the link below!



Thank you!!!

Loans -Risk Based Pricing/Loan Level Price Adjustments

Allow me to introduce you to the latest in the mortgage business for 2008 - Risk Based Pricing or Loan Level Price Adjustments. Basically, the concept is that additional points are being added to loans based on how risky the borrower is. These are not the discount points used to buy down the interest rate, these are additional points making the loan cost more. The lower the credit score of the borrower, the more points and cost.

Yesterday I was chatting with a lender at First Horizon about a potential "refi" on an investment property. Here's the scoop or an example on what the points are looking like now based on the offerings from First Horizon:

Full Doc
680 & Above - no points
679-660 - 1 point
659-640 - 1.5 points
639-620 -1.75 points
under 620 - 2.5 points

Stated Income Loans -Must have a minimum of 680 score
720 Score - .5 point added for stated income
680-720 - 1 point added for stated income

This is a far cry from the old days when as long as the borrower had over a 620 credit score, loan costs were basically the same.

Thankfully, real estate investing provides creative ways to invest even without having great credit. However, when you are ready to refinance those deals that didn't require credit to purchase them, credit becomes very important. If your credit is not the best and even if you are successfully investing without credit, begin working towards improving your credit score. There's tons of great information at www.myfico.com.

Transform a Neighborhood

I’ve had this little idea for a while about a way that investors can unite to make a positive difference in lives, neighborhoods, communities and more and make money while doing so. The idea is called “Transform a Neighborhood”.

It started with my thinking, “Wouldn’t it be nice if someone spearheaded a project of getting investors together to go into a neighborhood that needs improvement where properties can be purchased inexpensively and a big positive impact can be made together?” I have thought that thought many times. Then one day it hit me that maybe I am the person to spearhead the initiative. Now with all of the mortgage fraud and foreclosures–especially in certain neighborhoods, I really see a need and an opportunity here.

It seems to me that investors are often “lone rangers”; and, I often wonder what would be possible if we were united. I see this as a project where investors would collectively mastermind the idea, recruit resources and collaboration from the city, county, police force, drug task force, corporate sponsors such as banks, and so forth. However, each investor would individually purchase their own property or properties within the neighborhood that is being transformed.
Thus far, I’ve created a file folder titled, “Transform a Neighborhood”, where I jot down notes and throw them in there, stuck a little sticky note on my dream board with “Transform a Neighborhood” written on it, and had a long conversation with one of my coaches about it. Now, I figure it’s time to take the next step, put it out there for exploration and ideas from other investors, like you, to see what’s possible when we unite. Emily Dickinson said, “I dwell in possibility.” Well, I do, too; and dwelling in possibility creates all sorts of amazing things! If you are interested in the possibilities surrounding this idea, you can get involved by posting your comments and or emailing me at nspivey@transformit.net .

The Impact of Fraud & Foreclosures on Real Estate Investors

Fraud and foreclosures have a huge impact on investors. On one hand, foreclosures as a result of mortgage fraud and the sub prime fall out create huge opportunities for investors to buy at deep discounts. This is low hanging ripe fruit. On the other hand, the reality is that there are numerous negative ripple effects from fraud and foreclosures, which is causing the tightening of standards on investors and making it harder to do business. This is the rotten fruit; and it really stinks!

Certain zip codes have really been hit hard with fraud and foreclosures creating issues for neighborhoods and for real estate investors. The neighborhoods are sitting with vacant and boarded up houses. Normally, this would be great for some investors, who love to buy these types of properties; but the problem is that due to all of the fraud and issues around values of these properties, lenders do not want to lend in certain zip codes. Ethical quick turn investors and wholesalers sit with an inventory of properties in these areas with no means of their clients obtaining funding for them to move the inventory unless they take a loss. Neighborhoods with high vacancy rates and boarded up houses usually have issues with criminal activities such as break ins, theft, drugs and prostitution. How does this change when there are no funds available for these certain zip codes to begin repairing the problem?

Another big and growing issue is identity theft, which has an impact on landlords. With all of the identity theft, the big credit reporting agencies are now requiring tenant screening companies to perform a much more thorough inspection on any company or landlord who applies for tenant and credit screening services. The tenant screening company must now check your credit before providing services and perform an inspection of your office to ensure that you have the proper security measures around applicant’s credit information kept in your office. By the way this inspection is done at your expense.

Fraud and foreclosures displace tenants, causing agencies such as the Atlanta Housing Authority (formerly Section 8) to require more paperwork and thorough investigation of landlords. In addition to all the former requirements, now requirements include an authorization to release information regarding the mortgage on a property (to verify that the mortgage is good standing), proof of incorporation if you are incorporated and/or using a management company that is incorporated, and authorization to check your credit as a property owner. Although this is a reasonable effort to protect tenants, it seems a little invasive for landlords.

Legislation is another issue for investors. Unscrupulous investors using creative investing techniques in unethical ways are taking advantage of people. These people end up in court and the next thing you know, states are trying to outlaw the creative investing techniques all because they have been used in an unethical manner. This is unfortunate especially considering the fact that these same techniques are great when used properly.

For real estate investors, the ripple effects of fraud and foreclosure are long and wide. Although there are negative effects, there is also a very positive side and an opportunity. The key is in being prepared. Prepare your investing business for the rotten and the ripe fruit, the costs and the benefits of today’s real estate investing market. “Luck is what happens when preparation meets opportunity.” ~ Elmer Letterman

How Does Real Estate Investing Work?

How Does Real Estate Investing Work?

Real estate investing works best with a strategy. In determining how you would like for real estate investing to work for you, it is important to first determine the results that you desire from real estate investing. Are you looking to build wealth or to create quick cash or both? Depending upon your desired results, you can choose a short term strategy, a long term strategy or a combination of the two.

How does real estate investing work to make quick cash?
Quick cash can be created with a short term real estate investing strategy, which includes quick turning or flipping property. Quick turning property (buying and selling right away) can provide big and quick cash if you buy right. Typically, the property is put under contract at a low price and then marketed at a higher price to include a profit. The property may be sold with or without improvements depending upon your strategy. Quick turn deals can easily generate from $2K to $30K plus depending upon the deal and whether it is a wholesale or retail quick turn.

Wholesale Quick Turn
Wholesale quick turns involve finding a deal below market value and quickly selling the deal at a wholesale price. By selling wholesale (below retail), you are giving your buyer, typically another investor, the opportunity to make a profit. If you negotiate the right deal upfront and turn the deal quickly, you can make good money this way.

Wholesaling is often a method of no, or little, money down deals. This is a way that real estate investors get around the need for financial backing for flipping houses. Let’s say that you find a motivated seller, who is willing to sell you their house at $100K. You put the property under contract with the seller for $100K and then find another buyer who wants the deal and is willing to pay $110K. You would then assign your contract with the seller to your buyer for a fee of $10K. Your buyer actually closes and purchases the property from the seller; and at closing you are paid a $10K assignment fee. An option is another method used to wholesale. You can put an option on a property and then sell your option to another investor for a profit. In fact, with assignments and options, you never even have to purchase the property to make money.

Retail Quick Turn
Retail quick turns involve finding a property well below market value and getting it market ready for retail sale. With retail quick turns, your target buyer is a home owner rather than an investor. You may purchase a property that needs a little work, a lot of work, or possibly needs no work at all because you purchased it from a motivated seller at a discount. Once the property is ready, you market and sell it at a retail price.

How does real estate investing work to build wealth?
Wealth is created through longer term real estate investing strategies, which involves buying and holding property. In this scenario, the investor buys a property and then rents it to a tenant or leases it to a tenant with the option to buy.

Renting
Renting involves finding a property, getting it in rent ready condition and marketing it for rent. The rental real estate investing strategy offers a number of profit opportunities. Cash flow is created when the monthly rental income exceeds the mortgage and other expenses. Long term wealth is created through appreciation of the property, the tenants paying down the mortgage, and tax advantages.

Imagine having 10 houses paid in full and rented for $1,000 a month for a monthly cash flow of $10,000. If the houses were only worth $100K each, you would have $1 million in assets plus a $10K per month cash flow before expenses. This financial position can be fairly easily accomplished in your own timeframe. Some people buy one or two houses per year and others buy a number of houses right away.

Lease Option
Lease options are created by offering a property for lease (usually for twelve months or more) with the option to buy. There are a number of profit centers with lease options to include income from the upfront option fee, monthly cash flow from the lease, profit from the sale when the option is exercised and tax advantages.

In conclusion, the answer to the question, “How does real estate investing work?” really depends on how you want real estate investing to work for you. Whether your goal is to build wealth, leave the 9-5, an early retirement, financial freedom, or quick cash, you can obtain it through real estate investing. There are numerous benefits to investing in real estate such as buying at a discount and creating instant equity, equity created through tenants paying down a mortgage, appreciation, cash flow, leverage and tax benefits. Determine your strategy –long term, short term or a combination of the two and make real estate investing work for you.

Nancy Spivey, known as The Real Estate Investor’s Resource, is an active investor, speaker and coach. Through her training and coaching programs, she helps new and experienced investors create profitability, productivity and prosperity. Nancy serves on the board of directors for the Georgia Real Estate Investors Association, the largest investor association in the U.S.

For a free copy of the eBook, The Science of Getting Rich and a list of Nancy’s Private Rolodex Resources, go to http://www.transformit.net/ezine.html and sign up for her free ezine, which is loaded with free tips, resources and tools that will help you create profit, productivity and prosperity in real estate investing!

© 2007 Nancy Spivey

IRS & Real Estate Investors - Passive Loss

The IRS is cracking down on real estate professionals.
It's questioning loss deductions. Real estate pros are exempt
from the passive-loss rules if they spend over half their working hours
AND at least 750 hours per year materially involved in real estate.
IRS agents are checking returns of people claiming to be real estate pros,
such as builders, landlords, managers and brokers. It wants to make sure
that the time tests are met. Thousands of tax returns have been pulled.
For more information, go to....
http://www.kiplinger.com/members/taxlinks/070309/IRS-rental-losses.pdf

Shared by ....

Roger T. Herring

Managing Member

Investor's Accounting, LLC

678-287-8503

Real Estate Investing Ideas - Don't lose 'em -Use 'em!

All achievements, all earned riches, have their beginning in an idea.
Napoleon Hill


I find it interesting that March has been become International Ideas Month. I feel blessed that most of the people that I know are full of ideas! Being in the real
estate investing arena can really generate a lot of ideas. In fact, successful real estate investors are usually those people with creative and innovate ideas. The problem is often what to do with all of those ideas, how to channel them, how to put the idea into action.


Here are a few ways to make the most of your ideas:


Start an Idea Vault - This is simply a file or folder or notebook where you put your ideas until you are ready to work on them. It is a safe place to keep them so they don't just float away as fast as they arrived.


Use Mindmaps - The concept behind Mindmaps is that people don't think in a linear fashion. Our thought are all over the place. Mindmaps help you visualize a project. They allow you to see the big picture and the details. To see a Mindmap and how they work, check out www.mindjet.com - you can even download a free trial version of the software. However, you don't have to have software to create a Mindmap, you can draw them.


Mastermind Groups - A Mastermind group is a group of people that get together to support each other, usually in business. The dynamic of having a group of people together providing brainpower and ideas is absolutely amazing!


If you would like more information on any of these tools or are interested in participating in a mastermind group, email me at nspivey@transformit.net.


Man, alone, has the power to transform his thoughts into physical reality; man, alone, can dream and make his dreams come true.
Napoleon Hill