How much is an hour of your time worth? Would you think it could be worth thousands of dollars? Millions of homeowners policies are issued alongside the mountain of paperwork associated with new mortgages, and it’s easy for most first-time home buyers to overlook their insurance policies until it’s too late. Only after a catastrophic event, such as a hail storm or a flood, are people forced to pay attention to the conditions of their insurance policy. You should take an hour to review your entire policy annually and discuss any concerns you may have with your agent. Pay special attention to its exclusions section and its declarations page. The Policy Statements page is a quick snapshot of the most important policy details, which are simplified for better understanding below.

What exclusions are listed on your policy? The exclusions section of your insurance policy lists the situations that the insurance company will not pay for in the event of a loss. This section is discreetly placed on your policy pages and is not on your declarations page, but this section is one of the most important. All basic homeowner policies exclude events such as earthquakes, sewage accumulation, nuclear explosions, wars, mudslides, and sinkholes, just to name a few. Your policy will not cover flooding. Flood coverage can be purchased through your agent, but is not part of your homeowners policy. It is underwritten through the National Flood Insurance Program, governed by FEMA. You can live outside the floodplain, but the fact is, if you live within five miles of ANY water source, then you need flood insurance. The good news is that the further you are from the floodplain, the cheaper the insurance will be. There are also supplemental exclusions that are not covered except with the appropriate endorsements.

Endorsements are additions to your homeowners policy that can be added to your basic policy in a similar way to luxury options on a new car. And like the new ones because they will add to the final price, but have a relatively small impact on the monthly payment. These additions are things that most people assume are already covered in their policy. These include, but are not limited to, sewer backup, broken windows / glass, downed trees, wind-driven rain, and building code required upgrades. Be sure to read all the exclusions and endorsements in your policy carefully.

How much is your deductible for wind and hail damage? Your deductible is the portion of a claim amount that you must contribute toward your repairs. That amount is then deducted from the total payment you receive from your insurance company. A higher deductible generally means a lower premium, but many companies have consistently increased deductibles rather than dramatically increasing premiums. On most policies these days, you will have two types of deductible. A deductible will be for general perils and generally amounts to $ 500- $ 1000. You will notice that there is a separate wind / hail deductible. This deductible is where some insurance companies have decided to recoup some expenses in higher-than-normal risk states, such as Florida, Louisiana, Texas, and Oklahoma. You may think you have a $ 500 deductible when 2-inch hail crashes against your window, but you may not have realized that your insurance company increased your deductible by 1% to 5% of the limits. of your policy.

Your policy limits are the maximum amount your insurance company will pay in the event of a total loss, such as a tornado or fire. Policy limits are set by you or your mortgage company when the policy is first purchased, but after renewal, most companies will use your current county assessment amount. You should make sure your policy limits are set to your home’s value plus at least 15%. If your home is worth $ 100,000, then your policy limit must be at least $ 115,000 for your home. It generally costs 15-20% more to replace than to build a new one. What are the limits of your policy?

Do you have an RCV or ACV policy? The difference between these two policies can amount to several thousand dollars out of pocket. Replacement Cost Value (RCV) is the value of replacing your damaged items at current market rates. The insurance company will then depreciate these items based on their age and compare them based on their useful life expectancy. For example, a roof tile that is warranted for thirty years and is ten years old will have a depreciation rate of 10/30. The amount of depreciation formulated is subtracted from the RCV to reach the actual cash value (ACV). If you have an RCV policy, the depreciation withheld by the insurance company will be issued to you after the replacement of your damaged items is completed. If you have an ACV policy, the depreciation held by the insurance company is not recoverable and this amount will not be issued to you. The benefit of an ACV policy is a lower monthly premium payment, which makes it attractive for rental properties and non-habitable structures like barns. You should discuss the pros and cons of each type of policy with your agent to determine which one is best for your situation.

These are very basic insurance concepts. For more detailed answers on policies and complaints, you can visit http://www.hailandwind.com/ and post a question on the forum. You can also get more detailed information on your state’s Department of Insurance website, and you can call your insurance agent if you need to make any changes. He or she will be happy to take your call. It only takes about an hour to read your insurance policy, and you should read it every time you renew. Make sure you know what is excluded and supported. Find out if you can pay your deductible in the event of a claim. Match your policy limits to the value of your property, plus 15-20%, and determine which policy you need, ACV or RCV. An hour of your time could save you thousands!

A mobile neighborhood watch patrol can make a positive contribution to the community. They are easy to get started and we have a free e-book to help you. The most important first step in establishing the mobile neighborhood watch program is designing a proper mission statement that all volunteer members can live by. Here is a sample of a good mission statement to help launch the Mobile Neighborhood Watch Program that you will soon establish in your community.

Mission status:

Help our local police department by becoming the eyes and ears of the community. Establish a presence power and thus increase the visibility of our application services. Establish a zone for criminals where the risk of being caught is too high for them to practice their profession. Unite the business community and the Chamber of Commerce with citizens and local government. Be proactive in applying the law. Empower people to stay in control of their communities. To reduce crime rates and keep property values ​​high.

People who have jobs that require extensive travel through local communities (such as delivery services, real estate agents, and utility companies) often find themselves in positions where they can see crime in action or suspicious behavior. Sometimes just by being in a particular area at the right time, they can even unknowingly act as a deterrent to criminal activity. The Neighborhood Mobile Watch program seeks to improve a community’s crime prevention strategy by providing concerned citizens, whose professions require prolonged driving, proper training, and signage materials to further deter criminal activity.

Learning to recognize suspicious behavior and knowing which local authorities to contact is one of the key components of the training. Just knowing the correct phone number, rather than dialing 911, can greatly reduce the amount of time it takes for proper authorities to respond, and it keeps 911 lines open for other emergencies. Another key component of the program is providing magnetic placards on commercial and service vehicles, and using static adhesive stickers on other vehicles that say, “We report suspicious behavior to our local police department.” This lets potential criminals know immediately that they should not risk any illegal activity; There is a knowledgeable and trained crime watchman in the area.

Each program participant attends a 30-minute seminar at the local Chamber of Commerce with a Community Relations Officer from the Police Department. They will receive a certificate and then they will be issued two magnetic signs or a set of static adhesive stickers for their car (s). We will be engaging House members to get started, and as things turn out to be effective, we will increase participation and education of the process. We will alert the media to this program and give credit to participants for helping our city or town. Participants will need some type of two-way communication, such as a cell phone, two-way radio with dispatcher, or wireless Internet access.

To download or view our free e-book “How to Set Up a Successful Mobile Neighborhood Watch Program” online, go to this web address below:

http://www.lancewinslow.org/nmwp.shtml

How many minutes or hours do you spend handicapping in a greyhound race? How many factors do you consider? They are all different in their approach, but it should come as no surprise that they are all basically looking at the same thing. How do you get an advantage when everyone works with the same information? What can you do to get the advantage?

Have a “home greyhound track”.

With online greyhound betting being so popular now, many players have abandoned the concept of having a home court. If you look back a decade or more, most of the players went to a track to play. They knew the track, the kennels, the trainers and everything related to the track. He could still play other tracks on the simulcast screens, but normally he played all the races on the start track and paid attention to every detail.

My mentor played at the Mobile Greyhound Park. I remember him telling me a story about morning races and how the sun affected them. For two or sometimes three races in the afternoon, the sun would be at an angle to shine directly into the eyes of the greyhounds on the front leg. He had begun to realize this, as well as certain greyhounds it seemed to affect. Some of those greyhounds were favorites on the track, the kind that almost always have odds of less than 2-1. My friend noticed that the effect the sun had on the puppies made them not even earn money most of the time if they drew during this time. He took advantage of this for several months by putting the races at a disadvantage as if these crowd favorites weren’t even in the race. I remember him telling me that he did several “billiard shots”, taking the entire pool of trifecta away.

My friend LJ knew “one thing”. And knowing one thing can make you profitable.

That example is an extreme example, but it points out what you can do with information that no one else has. Learning things that no one else knows is difficult. But knowing things that only a few know is easier. And these are things you don’t have to be a genius for.

How does the rain affect the track in general?

How does the rain affect the track directly in front of the pits?

What is the bias of the track for all distances?

Greyhound trends like wrestlers, railroad killers, and more.

A few weeks ago I saw a greyhound at 4/5 with a minute left in the mail. This greyhound was in frame 7 and between two wrestlers. The chances of these gray clouds being affected were quite high. Meanwhile, there was a nice dropper on the railing with mediocre lines that the crowd was ignoring. If the favorite wasn’t sitting between two fighters, ignoring the pup on the railing would have been smart. But not this race. The crowd favorite rose for the show with my 7/1 shot on top and a 25/1 pump in place.

The result for me was a $ 660 for $ 1 trifecta. Nice!

Therefore, the title of this article can be a bit misleading. It is not just one thing. But it is a series of one thing. A little thing here and there can really contribute to your bottom line each month.

Have a clue from home. Know all about it. Especially that “One thing!”

Buying a home through foreclosure is undoubtedly one of the most important ways to buy a home for less than its normal market value. A great benefit of buying pre-foreclosed homes is that you don’t have to compete in foreclosure auctions that can spiral out of control. Nor is it necessary to go through real estate agents who may not offer you the best deal. This often leads to being able to negotiate a more suitable price, which can lead to large real estate resale profits. Often times, homeowners will sell their home at a steep discount to avoid having a long-term negative credit rating that comes with foreclosure territory. Often times, both parties can find a way to help each other. Finding valuable foreclosures can be tricky, so it’s important to look in the right place. Better to use pre-foreclosure experts who don’t charge hundreds of dollars for pre-foreclosure listings. Government agencies often provide insufficient data or it is too out of date.

The first day of Lis Pendens, or a notice that there is a pending legal action, begins the process. From now until the home with a delinquent mortgage goes up for auction, there is still time to act and repair the situation between the distressed homeowner and the lender. The length of the process can take three to four months before the home reaches a foreclosure auction, and even longer in certain states. Make sure you don’t forget to review all the documents and links. Plus, narrow down and calculate your options to find the best property. You may need to do some necessary repairs before selling, so keep an eye on the condition of the house. Contacting a homeowner who is losing their property can be difficult. Send letters and be sure to establish a friendly tone telling them that you understand the situation and that you can help. Follow up with phone calls, but don’t interrogate the owner by default. If you feel comfortable enough, visit. Be friendly and helpful, but walk away if the owner asks you to leave.

You may also need to hire a cleaning service to clean the property. Everything has to go. Also, keep in mind that there is a great risk of loss. Make sure you know what you are doing and are ready to start a business venture.

The resolution of a debt with the IRS can be achieved by different methods; the obvious one is full payment. If one is unable to pay in full or believes that the debt is bogus, other means are available. Installment payment agreements can be negotiated. Reductions are possible if reasonable cause can be established. Filing corrected returns may be an option. Offer in Compromise is available if one qualifies. However, if one cannot afford or qualify for another program; the temporary or “currently unrecoverable” (CNC) hardship may be an intermediate resolution. This is probably not a “final” resolution.

If you owe the IRS a large sum of money, but don’t have the ability to make debt payments right now, you may qualify for a hardship. The CNC program is not new, but the qualification is very difficult. Placing your account in difficult situations is not guaranteed to be permanent. In fact, it will likely only last 18-24 months. However, it may give you time to recover and make payments later. In rare cases, a hardship can remain until taxes expire, but don’t count on that!

To qualify for suspension of collection activity on your account by the IRS, you must have filed at least tax returns for the last 6 years. You must also be in current tax compliance. This means that you must have correct tax withholding on your job or make adequate Estimated Tax Payments if you are self-employed. Additionally, you must be able to demonstrate that your necessary living expenses meet or exceed your current income. Also, you must not have any substantial “liquid assets”. Liquid assets are things like bank accounts with large cash balances, money market funds, stocks, CDs, or non-borrowed funds in cash value in life insurance, etc.

You will be asked to provide 3-6 month documentation as proof of income and expenses (invoices). If you have medical expenses, get proof too. You may be asked to provide car note information as well as proof of rent or mortgage. Cable TV, cell phone, country club or health club fees, and credit cards will not be taken into account when calculating your CNC qualifications. The IRS considers these items unnecessary. By law, the IRS is a primary creditor for most debts.

When you call the IRS, be ready to give them a complete estimate and fax or mail proof of your situation. At http://www.irs.gov, you can download Form 433F. This form will help you organize your budget in a format that the IRS accepts. In some cases, you may need to complete Forms 433A and 433B. If you catch them off guard, they may put you on a payment plan that you can’t afford. Even with testing, the IRS has set “national standards” for many items and in many cases you will not be allowed costs in excess of that amount.

If your account is placed in a CNC due to financial hardship, you still owe taxes, interest continues to increase, refunds will be maintained, and a federal tax lien may be filed. You will not be required to make individual payments while the case is at CNC. There will be no bank lien or salary lien while you are at CNC. However, unless you exploit the Statute of Limitations, the tax will revert to IRS Collections at some point.

If your debt with the IRS exceeds $ 25,000, seek professional help. A good CPA, enrolled agent, or tax attorney can help you deal with the IRS. The fees you pay will be well spent if you hire a competent and experienced professional. If you can’t afford professional help, the IRS has free help through the Office of Appeals and the Taxpayer Advocate Service. If you think you are not being treated fairly, you can file an administrative appeal or Form 911 with the Advocate.

You can contact the IRS at 1-800-829-1040 for general questions. You can contact the IRS Automated Collection Service at 1-800-829-7650. The telephone number of the Taxpayer Ombudsman Service is

1-877-777-4778 or TTY / TTD: 1-800-829-4059.

A tenant mix analysis should be conducted regularly on any retail property and on that basis at least every 6 months as part of the property’s business plan. This way, you can see how things are for tenants, anchor tenants, and property clients. Identifying problems in the mix early can help you prevent major property problems over time.

Since a retail property is geared towards sales and customer interest, the tenant mix will be very important in your annual property business plan. When you establish the right strategies for the mix, you can market the property to the customer base and the local community, thereby strengthening sales results for all stakeholders.

The success and performance of a retail property are closely related to the success of the tenants. A successful retail property will generally have consistently low vacancy factors and good market rents, even in tougher retail cycles and real estate markets.

A professional and experienced retail center manager will have their ‘finger on the pulse’ when it comes to tenant mix. They will have in mind the plans and changes that allow to improve the property. The owner and tenants of the property get positive results with their vested interests.

These are the main reasons why you should focus on the tenant mix and get it right.

1. Low vacancy rates will be evident on the property. Renters won’t want to leave because they know they are participating in a property where the owner and property manager are really shaping the property in a positive way.
2. Higher market rents will be achieved as the property is outperforming nearby competing properties. That will then extend to a higher property value for the owner.
3. With existing tenants, your renovations will be less complicated and negotiations will be easier. Tenants really won’t want to move out of the property and lose their income or business stability.
4. Rental reviews on the property will be easier to negotiate since you will have many other ‘market rental comparables’ to use on and from the same property. It will be more difficult to justify or dispute any dispute or disagreement about the rents.
5. A good tenant mix will give you the ability to move tenants around and into better positions when the opportunity arises.
6. Renovation strategies and relocation strategies can be incorporated into lease negotiations, making it easier for you to set up the property and merge at the right time in the future.

When you focus your efforts on the tenant mix of the property, you can lead to a better financial outcome for both tenants and landlords. Use the above factors as part of a checklist to shape the tenants and the negotiations you undertake.

Rooftops may not be the final frontier, but they provide wide fields to grow solar panels.

So says Al Weinrub, who has written “Community Power: Decentralized Renewable Energy in California.” Weinrub is a member of the Sierra Club California Energy-Climate Committee and is a member of the Steering Committee of the Bay Area Local Clean Energy Alliance. He said it depended a lot on the work of both.

“Decentralized generation means that residences, businesses and local communities become producers of electrical energy,” he writes. “Businesses with large rooftops or parking lots can become small energy companies that feed electricity into the grid.”

The beauty is that these buildings are already connected to the electrical grid and have an existing footprint, benefits that a remote solar installation does not always have. Industrial solar energy on vacant land requires extensive permits, studies, and environmental impact review, especially if it is federal. Those panels can definitely change a picturesque landscape.

The buildings offer many acres of alternative energy opportunities. Just take a look at John Majoris’ work on solaraerials.com for a King Kong look at some pretty amazing projects.

My co-worker Sandy Nax and I came to a similar conclusion over the past year. Actually, our former governor said the same thing and we agreed: Roofs on otherwise unused warehouse acres in Fresno / San Joaquin Valley provide a great spot for easy-to-afford solar power and an extra harvest. cheap to grow on those that are quite ugly. Asphalt covered fields.

I apologize in advance to the owners of such structures who have added white “cool roofs”, which dramatically reduce cooling costs by reflecting sunlight.

Some California companies are already moving forward with industrial solar power in commercial warehouses. IKEA, for example, plans to install 7,980 panels at its Tejon distribution center off Interstate 5 at the foot of Grapevine south of Bakersfield. The facility will generate 2.8 million kilowatt hours per year, enough to power 251 homes. The retailer also plans solar systems in stores in Burbank, Costa Mesa, Covina, East Palo Alto, Emeryville, West Sacramento and San Diego.

At the San Joaquin Valley Clean Energy Organization, we also discussed the concept of acting as an information conduit between municipalities and private business owners to install solar power in their buildings to defray energy costs.

It is not clear how the service would be provided, but the concept involves providing overhead costs, explaining options, and facilitating projects in our sunny region. We started the discussion after several of our client cities, Delano, Atwater and Corcoran, asked us what we knew about how to make solar power lower their electricity costs.

At a recent Atwater City Council meeting, the concept of using solar panels to defray the intensive costs of pumping water to meet the demands of the summer was raised. All small jurisdictions in the San Joaquin Valley, like many across the country, are severely affected due to reduced income due to the dramatic drop in real estate values.

For example, my house in Clovis is now worth $ 120,000 on a good day. I bought it in 2005 for $ 269,000. Such declines in value cut the income of cities and counties that rely on property taxes in half and result in tough challenges when budget time comes.

Solar energy is not perfect. But it offers a much cleaner path to power generation than fossil fuels. Our mission would be to detail costs, find the best sites, and interpret the volume of data available, making it easier for overworked municipal staff.

Weinrub doesn’t say it’s easy. Quite the opposite. “Achieving this vision will require overcoming the hurdles of the energy and utility industries, public agencies and other interests vested in the century-old model of investor-owned utilities,” he says. The potential is a 2010 commercial ceiling capacity of 19,323 megawatts, he says.

The solution? Weinrub suggests new policies and programs. One is community choice energy, “which allows a city or county to aggregate the electricity demand of all customers,” and the other is a more controversial concept called a feeder tariff, which is used in Germany and elsewhere to reduce the cost of alternatives. in line with conventional energy on the grid.

The US Environmental Protection Agency also likes the idea of ​​using an already occupied space. It is soliciting applications from communities and other government agencies that want to assess potential renewable energy development on potentially or previously contaminated properties.

The National Renewable Energy Laboratory will make the call, determining what works best in each location. The plan is to create jobs and increase renewable energy.

Maximize alternative energy opportunities while minimizing impact. It sounds like a great idea.

Even if the housing market is low, it is not easy to search for the best deal. But that doesn’t mean you should stop looking for the best deals. Many established businesses buy houses to ensure that homeowners make purchases at the correct price. Apart from this, they can simplify the entire home sale process. In this article, we will look at some tips that can help you find cheap houses for sale. Keep reading to know more.

1. Find out how long a house has been listed

It is important to note that the house may have been re-listed after the expiration of the first MLS contract. What this means is that the protected property may have been on the market for quite some time. If a property has been on the market for several months, the seller is likely to agree to a lower price.

2. Ask

You can ask to find out if a neighbor is looking to sell their house. If you learn that a neighbor is going to put your house on the market, you can contact them to reach an agreement without involving any agent. Therefore, it is better to ask as it will be easier for you to find the right house.

3. Call

You need to build your courage for this approach. All you need to do is knock on the door of the house that needs a lot of repairs. You can ask the homeowner if they are interested in selling their property.

4. Look for less expensive options

If you are on a budget and want to live outside of the city, we suggest you consider a mobile home. The good news is that this type of home can be as good as your regular home. In addition, they can be a great investment, since they can offer as much rent money as a normal home.

5. Consider Fixer-Uppers

Generally, houses that need repairs are priced lower. So if you’re not afraid to deal with contractors or DIY jobs, we suggest you consider a top repairman. So, you may want to get over your fear and check out these options as well.

6. Take a look at the properties in the surrounding cities

You can save thousands of dollars if you choose to buy a home that is only 30 minutes outside of the main city. Apart from this, you can consider areas where property prices fell due to the housing collapse 12 years ago. You can get great deals in some of these cities.

7. Look at foreclosures

Some landlords throw their properties away before they leave, but not all tend to. Banks often have a lot of foreclosed properties that they want to sell as soon as possible. The good thing is that you can buy these properties at a much lower price.

Simply put, these are just some of the tips that can help you find cheap houses for sale. Your search will be much easier if you follow these steps.

Isn’t it great that today there are so many ways to obtain financing for real estate investment projects? That’s important since sellers want to get paid for their houses when they sell them … right? Now, just because there are what appears to be an infinite number of funding sources, it doesn’t mean that those funds are easy to get … or when you can get them … they are easy to pay for. The borrower must, in many cases, “jump through hoops” to end up with the funds he needs. Credit approval, Appraisals, LTV / ARV … and even so, they do not usually receive it. All they need is “skin in the game”.

Good debt vs. Bad debt

Most real estate investors are familiar with the term “good debt vs. bad debt.” The problem is that most do not fully understand the difference. My daughter knew the difference when she was 8 years old. I remember when we went to lunch and she went from asking me to do “pros and cons” to doing story problems. So, in the interest of “training her early in life,” I told her about business-related problems. She would accidentally learn about everything from expenses to profits … including the differences between good and bad debts. His understanding was so complete that he was able to recite the definition and, more importantly, explain it when prompted.

Unfortunately, we are not taught any of this at school today. We are taught how to spend / save rather than how to be investors / entrepreneurs. In other words, we are never taught how “money works”, but we are certainly taught how to “work for money.” Knowing the difference between good and bad debt is not brain surgery, but the negative effects of ignorance can be enormous. The difference is very simple. Bad debt costs you money, good debt makes you money. Yes, it is that simple.

What banks know that we don’t

Banks are well aware of the difference. Just look at the difference between what you are “paid” (and I use the word “pay” very freely) for your deposits and what you are “charged” when you “sell” your credit. Understand that the business of banks is to sell credit. They also know and understand the saying: “Own nothing, but control everything.” They live for it. What’s fun is that with the use of non-taxable debt, the real estate investor can do the same. They can almost become their own bank.

Bad debts cost you money as the net result is that you end up with less than you originally had. Good debt makes you money as the net result is that you end up with more than you started with. In business, you are comparing profits and expenses. In our personal lives, we are comparing income to, well, “income substitutes” … sometimes referred to as credit cards.

Obvious examples of Good Debt would be things like SF rentals, multi-family rentals, commercial properties, and other appreciable cash flow assets. Examples of bad debts would be the credit cards, boats, RVs, etc … mentioned above. Equity in our own home is not an investment. It doesn’t give us money, it costs us money to build it. Now, if we take advantage of it in the form of a loan, it becomes debt … what kind of debt depends on what it is used for. Note that I am not saying that we should all go out and refinance our homes, withdraw equity, and invest. If you decide to do that, you don’t have my blessing. You are putting your home at risk. Not intelligent. Especially since there are many other safer ways to obtain funds to invest.

The power of multiplication … duplication of steroids

Banks understand all this. They take advantage of their assets / deposits in credit / debt. That is, their credit and debt to you. They do not own anything and, in fact, they can take advantage of the credit, in fact, sell you “virtual money” many times the “face value” of your asset deposited with them. That topic is for another time. For this discussion, understand that the bank is harnessing the power of duplication. In reality, they are taking advantage of what Albert Einstein called the “greatest invention of the 20th century” … compound interest. He went even further by stating that those who understood it (the banks) live off those who didn’t (the rest of us).

Do you want a very powerful example? Start with a penny… just 1 cent. Then for the next 30 days, duplicate it. So day 1 would be 2 cents, day 3 would be 4 cents, day 4 would be 8 cents, and so on. Get it on paper. It will have a much bigger impact on you. Which is the answer? Try it. You will be amazed. What you will see is an example of composite at its finest.

So how do we, as real estate investors, do the same? Can we do the same? The answer to the second question is overwhelming. Yes! The answer to the first question is, you guessed it, with the use of non-lien debt.

The Power of Non-lien Debt … Getting Worse on Steroids

How do you ask? Simple. First of all, remember that the typical financing used in real estate investments is a debt subject to lien. There is a link of some kind on the asset … the property that we are buying. When we use non-lien debt, there is no lien on the property. In fact, there is no link to the property. This is essential. This is what makes this work. This is what makes us our own bank. How?

What’s the first thing that happens when closing, after the mountain of paperwork is signed? The answer is that the seller’s original lender is paid. In other words, the Link it’s paid. The seller doesn’t even see the money. Wouldn’t you like to at least touch it when you sell … even for a minute? How about we do more? How about power re-use And again? If you can. That answer was for all those who read this and say “you know you can’t.” Here’s why … and how.

Let’s take a look at financing a typical property. First, a loan is acquired and we buy and rehabilitate the property. We turn the house around and, by selling it, we do two things: 1) We return the original financing (link); 2) We make a profit (hopefully). Now, to move forward, we need to get new funding and get back to “app triplets.” You know, new application, appraisal and approval. All expensive, slow and without guarantees.

Now, if this were a non-liable form of debt, we wouldn’t have to pay back the money we borrow … at least not right away. This also means that instead of just leaving with only our earnings to use, we walk away with all proceeds from the sale. We sell a home for $ 75,000 with a taxable debt of $ 50,000 and walk away with only $ 25,000 … the profit. Sell ​​that same house with a non-lien debt, and we walk away with the full $ 75,000 … minus closing costs. What would you rather do?

Convert “bad debt” to “good debt”

Okay, before I continue, I need to respond to all the readers who say “I still have to pay the debt.” In fact, I have monthly payments that are generally very high due to the nature of the terms in most NLDs. So what I do is finance a cash reserve as part of the NLD. Tea cash reserve is your silent partner whose sole role is to make the monthly payments until you can develop your system to become self-sufficient and self-sufficient. Combine the earnings from the first couple of pitches and buy / rehab a second “Flip House”, which will also reuse those funds over and over again as there would be no debt on that second house … you bought yes for all the cash . The idea is NEVER to use the principle for anything other than the cost of the next Flip House. You are working with two “casement houses” now, after that second change

Flip these two houses over, combine the two earnings, and buy / rehab a third swing home. Again, you will reuse the costs of the three houses to buy / rehab the next 3 Flip Houses online. You now have three lines of Flip Houses. No matter how many times you treat spend the principle … they keep giving it back to you. Now, this is where the real fun begins.

While you’ve been developing your system, your cash reserve is shrinking to zero. So, it’s about time you paid it back, don’t you think?, And “buy” longer. Keep in mind that these payments you are making out of the cash reserve are actually paying off the debt … or it’s not working, so when figuring out how much to put in the cash reserve, keep that in mind. Now for the real fun.

Like I said, the cash reserve “no more”, so return it … with one of the winnings from one of the three swing houses. What do you do with the other two winnings? Buy / Rehab a “Waiting House” for Cash Flow … with all cash. Then just keep flipping the three Flip Houses, over and over again, using “profit only” to buy more “Cash flow” houses, with all the cash, and occasionally repaying the cash reserve until the debt is paid … and you are completely debt free.

The story of the tape … Einstein was a pretty smart guy

Question # 1: How many times do we pay for these funds?

Answer: Ounce… we simply did not pay it all back at once, as we would have done if it were a lien-susceptible debt.

Question # 2: How many houses can we use these funds for (remember, we’ll only pay for them once)?

Answer: I don’t know. I’ll let you know when I stop reusing them.

We simply become our own bank. We are now leveraging our own money for ourselves, at no additional cost. Every time we reuse these funds, at no additional cost, we lower the cost of home debt. This means that we have also just made the initial cost of this type of financing insignificant.

Einstein was right. Compounding is a beautiful thing. When combined with non-lien debt, it can be a “gold mine” for real estate investors.