Property Tax and Escrow tip…
Here is my tip of the week for you.

I have a fairly new house that I bought straight from
a builder back in 2007.
Originally intended to sell it on a lease option
and had someone already signed up for it before
purchasing the home.

Well, the guy was transfered out of state
before he even moved in.
So, we tore up the contract and I refunded
his option fee.

It was the right thing to do.

However, that house has been a tough pill
to swallow for the last year.

As you may know, when you build a new house
the property taxes are based on the price paid for the lot.
They are not readjusted for at least 1-2 years AFTER
the home is completed.  At least that’s how it is in Ohio.

Well, I thought I already took the big hit on my
escrow payment last year, as it went up by nearly $300.

Not cool at the time but the property still cash-flowed so
I didn’t pitch too big of a fit since I knew it was coming.

Since then, I sold the home on a land contract and based
most of the downpayment on the First Time homebuyer tax credit.

A great deal by the way and I highly recommend it to help find
a buyer quickly.

If you need a resource to learn how to do that program,
shoot me an e-mail and I’ll send you some info.
(You only have until the end of April to take advantage
of the tax credit as an incentive.)

But I digress…

About a month ago I received my newest escrow analysis
from my lender.
Guess what, my payment is going up by ANOTHER approx $225/month.

Ouch!!! That is going to cause me to have negative cash flow
on that house.  To quote Michael Scott, “Nope…Don’t like that…”

What do I do now?
Actually, 3 things could happen here.
I can go back to my buyer and adjust their escrow payment.
I can pitch a fit with my bank but they aren’t going to help much…
I can go bitch at the auditor’s office and try to get them to lower
my property taxes.

Or… a combination of all three.

Here is my game plan.
1) I will go back to my buyer because I clearly stated
in the land contract that this might happen.
However, that is NOT going to be my first step.
I will likely warn them this weekend about it but I will not give them
any firm numbers.  I will probably tell them the current number
but tell them I’m going to do everything I can to get that number down.

2) I did call my bank and was a very nice, but confused guy for about 30 minutes with them. (I actually was confused because I couldn’t understand how they so grossly underestimated last years taxes to put me like $1600 behind in the escrow account).  After my lengthy discussion, I managed to get them to agree to allow me to make it up over two years instead of one year.  That will cut the increase in half, so that will help.

3) I will try to call the auditor’s office, but I sort of missed the deadline for that.  Usually they cut those off in February or March.  Oops.  I will still call, as they may have some provisions to allow for exceptions with our current economy the way it is.

4) I am going to coach my buyers into how they can improve their credit score more quickly and get them qualified for a loan faster.  That will get this deal closed quicker and give me the bigger payday faster.

I have about $40,000 of equity tied up in this deal right now that would be better off used elsewhere.    Still taking a hit profit wise, but I will not take a loss on this house because I bought it right… sort of.  I bought it with enough profit… but clearly not with enough cash flow.  Otherwise, I would not be in this situation. 

My big lesson here for you is, when you have a problem come up in your business, map out who is involved and what ALL of your possible solutions are.  Then, go down your list one by one and start negotiating.
You never know what ANYONE is going to say until you ask.  That is why I will be calling the auditor’s office on Monday.

Back to the cash flow topic.
I have decided that I will not be focusing my efforts on single family homes going forward.  Actually, I decided that about a year ago and have laid off them completely.
I’m only looking at multi-family properties where the cash flow is higher and I can more easily afford a property manager to take over the daily crap that I don’t want to do.

I have always known that this was the area of real estate I wanted to focus on, but felt I needed to build up a single family portfolio.  Well, I’m busy trimming that portfolio down a bit now to free up cash and get less headaches. I’m subsequently boosting my efforts in the multi-family and small commercial markets where I can leverage my time and money MUCH more efficiently.

That is why I’m so interested in the Student Housing market.
It offers much higher cash flows in the right markets.
This is not something I’m going to just jump in blindly though.
I’m learning everything I can.
If you are interested in jumping into that niche, Doug Fath’s coaching program is closing down tonight from what I’ve heard.  In fact, he only had about 19 spots left earlier today.

They already had their first coaching call yesterday.
If you don’t want to be left out of the coaching program,
go check it out here.

http://rapidreiresults.com

Not only that, he has a way for you to get in for just $299 today.
That will give you a chance to get in if money is tight right now.
Start learning the program and earn some money in it.

Have a great Easter weekend if you celebrate Easter.
If not, have a phenominal weekend with your family and friends.

To your success,

Marshall

P.S. Don’t forget about the guaranteed funding Doug has for you
(if it’s still available), the iron clad lease agreement, and the
opportunity to wholesale your deals to Doug’s network of buyers.
What more could you ask for in a coaching program?

http://rapidreiresults.com

P.S.S If you have been looking for your shot to really make it big
in real estate, perhaps this is why you joined my list.  THIS might
be your shot… will you take it?  At least go check out those
videos before he pulls all of them down.  I hope I got this to you
soon enough and that you didn’t already miss them…  If you did,
I’m sorry.
http://rapidreiresults.com

Disclosure: I am an affiliate for Doug’s program.  I firmly believe
in this program and it gets my highest recommendation.  I do NOT
recommend products lightly.  This is a niche that I feel very
strongly about myself and thought you might be interested as well.
It’s clear to me that Doug knows what he is doing and this program
is strong.  With that said, if you decide to purchase Doug’s
program through my link, I will be compensated for the referral.
Regardless of whether you buy it or not, you should check out the videos (If they’re still available) and learn from this guy.  He is the real deal.

Technorati Tags: Wholesale real estate

OK, this is going to fill up fast so enter  your name and e-mail address here and
register  while you can . . .

Here’s what this is all about . . .

On Wednesday night at 9PM EST (6PM PST)
my friend Doug Fath is holding a special webinar,
where he tells the full story and reveals his
complete system for making Six Figures A Year
(while working just six hours a week) with
Recession-proof Student Housing.

If you’ve watched Doug’s videos (and if you haven’t, you SHOULD . . . they’re AMAZING training) you know that Doug is an OVER DELIVERER and always teaches you stuff you can use in your business . . . (The “Magic Lease” and “Guaranteed Funding” videos are my favorite.)

A LOT of people are going to be trying to get on this Webinar and I don’t want you to miss out . . .

So follow this link and register while you can . . .

Hurry. This is not a call you want to miss.

To your success,

Marshall

P.S. Doug’s also giving away a Full Boat Scholarship to his program . . . but you have to be on the call to win. Go Register NOW:

P.P.S. As Doug says over and over, “Everybody thinks investing in Student Housing is a NIGHTMARE . . . and that’s EXACTLY why it’s going to make you really, really rich.” . . . Doug’s totally blown my mind on the whole “Student Housing” thing . . . Learn from this guy. Enter your name and e-mail address and I will send you over to the webinar page as soon as you confirm your e-mail.

Disclaimer: I am an affiliate for Doug’s program.  I firmly believe in this program and it gets my highest recommendation.  I do NOT recommend products lightly.  This is a niche that I feel very strongly about myself and thought you might be interested as well. It’s clear to me that Doug knows what he is doing and this program is strong.  With that said, if you decide to purchase Doug’s program through my link, I will be compensated for the referral. Regardless of whether you buy it or not, you should get on the webinar and learn from this guy.  He is the real deal.

Technorati Tags: Doug Fath, real estate investing

Doug Fath just posted his new “Guaranteed Funding”
video and I wanted to make sure you were one of the
first to see it . . .  There is no opt-in or e-mail address required.

Just go watch the video at my link below.

====>  http://rapidreiresults.com/shfund

This is the video that shows you how to get
Guaranteed Funding for your Student Housing
deals even if you’re credit sucks and you don’t
have any funds . . .

And you’ll never even have to talk to a bank.

====>  http://rapidreiresults.com/shfund

A lot of folks have been asking Doug for this
video, and I really think it’s the best video he’s
EVER made…

====>  http://rapidreiresults.com/shfund

Check it out now and see for yourself…

Marshall

Disclosure: I am an affiliate for Doug’s product.  I fully believe in what he has put together for you and I would NOT be referring you to him if I didn’t think it was a quality product.  Do your own due diligence before purchasing anything from anyone.  With that said, if you decide to purchase training from Doug or anyone else I may refer you to in the future, my company will likely be compensated.  Fair enough?

Technorati Tags: funding solutions, real estate investing, student housing investing

If you haven’t checked these videos out, you are really missing out.
The comments on the video site are going crazy… hundreds of people weighing in on the videos.

The latest is going over Doug’s ironclad lease agreement for his “Nightmare niche” that keeps his business out of trouble and keeps his mostly hand off approach intact.

Go check out the videos. You have to sign up for them first though.

====>  Click here, enter your name and e-mail and

I will send you over to the video page.

Technorati Tags: funding solutions, investing education, real estate

For the past couple of years I have been watching the real estate market in my local college town to see what might be a good fit.

Most of my research has been done online and I was seeing some pretty decent deals just on the MLS. Now, obviously (or maybe not so obvious to newer investors) looking on the MLS is not necessarily a great way to find investment real estate.

This is especially true during normal economic times. Usually, a good real estate investment deal will get snapped up rather quickly if it is on the MLS.

However, we are not in normal economic times right now are we?
So, you can likely find some decent deals even on the MLS. This is due to the fact that lending is tight and that means fewer real estate investors in ALL markets.

So, if you are looking at possibly buying a rental property as an investment and have considered owning student housing as your investment vehicle, I encourage you to start looking at deals now.
2010 will be a year with many more bank closings and many more foreclosures. This will impact the pricing of student housing and you will likely be able to find a very good deal.

Don’t go put a contract on the first property you look at though, even if you think it is a good deal. You should really analyze the market and know what you are getting into.

If you have more than one college town nearby, look in both or all of the towns and see where you may get the best ROI (Return on Investment). It may be quite different from one town to the next.

I will be hosting a free webinar in about a week or two with an expert in the area of student housing. He has a portfolio of close to $3 million right now and is a full time investor in the student housing niche. Get pre-registered below and I will send you the webinar invitation as soon as the date is set.

The webinar won’t cost you a dime and could save you a ton of money before you go out and get hooked up in the wrong student housing real estate investment.

We will be covering the following:

• What the minimum amount of return on investment you should be looking for.
• What should you have in your lease agreement to protect you?
• How to attract the right tenants?
• How do you find the best locations to invest in?
• How to spot a bad deal?
• What repairs are common?
• How to deal with unruly college student tenants?
• Should you have a lease per house or per bed?
• Plus, I will try to work some of your questions in

It’s going to be jam packed and I hope you enjoy it and learn a ton.

Don’t forget to take notes, as I don’t know if we will get a good recording of the webinar.  These things tend to be hit or miss.  I have had several that the audio was so bad we had to scrap the recording.

So, get signed up right here and make sure you are there on the live call.

As soon as you enter your name and e-mail address, I will send you a confirmation e-mail. 
Make sure you click the confirm link and whitelist the e-mail address that it comes from.  
Otherwise, you might miss the webinar info.

Also, don’t forget to leave a comment below. I love to read comments from you guys and so do the other readers. It makes me want to share more with you and keep writing.
You can also use that bookmarking tool down below to mark the page and share it with your friends.
Don’t worry, they are NOT going to be your competitors. Very few people are even thinking about the student housing market right now to invest in.

Plus, there is a ton of opportunity out there.
So, have an abundance mindset and share this with as many people as you can.
You will be happy you did when they thank you later.
(why are you still reading this?… seriously… go sign up for the webinar)

Technorati Tags: Invest in student rentals, real estate investing