Aug 10 2015

Answers To Your Questions About Real Estate Exchange Fund

Author: admin

Chris asks…

How can I start an investment fund like Berkshire Hathaway, and how much money do I need?

I invest in many different things: stocks, commodities, real estate, small businesses....
and I want to start a fund so that I can get equity from other investors.
How do I do that and how much money do I need?

admin answers:

You have to be very intelligent, know how to pick stocks wisely, be affiliated with numerous banks, and be worth millions of dollars. Basically all you would need do is create a fund name and pool your own money into the fund and then diversify it. Once you are making money, you have your fund's name registered with the securities and exchange commission. After completion of tons of paperwork and show proof to the exchange commission you know what you are doing, then you can sell stock in your fund. Read the story of Michael Price. He created the the Beacon funds with not much money at all and sold them 10 years later to Franklin Funds. I bought stock in his company 15 years ago and have never lost money.

Aug 10 2015

Answers To Your Questions About Acreage For Sale

Author: admin

Betty asks…

Is there a cheap processing equipment for sale,that can be used to dry & cure vanilla beens?

I have a small vanilla plantation and would like to source a small & cheap, drying & curing equipment for sale.

admin answers:

I would think that Norse or Viking would be able to get that. They make alot of kitchen equiptment and you should try them. (viking.com or norse.com) otherwise try Kitchenaid or Sunbeam products. I don't know what your definition of small would be. A small acreage to me is anything less than 80 acres. Hope you find what you're looking for!!

Aug 10 2015

Answers To Your Questions About Real Estate Exchange Utah

Author: admin

David asks…

Is it possible to defer and avoid paying income taxes for several years?

Is there a real estate tax shelter of any kind that would make it possible to earn a large income and avoid and defer paying income taxes for several years and also file a tax return?

admin answers:

The only real estate deferral is called a Like Kind Exchange. It allows you to trade business property (say rental property in Utah for rental property in Nevada) and not pay the income tax until the second property is sold.

Oct 01 2013

Answers To Your Questions About Consumer Confidence 2014

Author: admin

Sharon asks…

Can you help me analyze this article?

"The updated budget projections from the Congressional Budget Office show that the nation’s finances are healing much faster than anyone anticipated. Thanks to increased tax revenues, the budget deficit will shrink to $642 billion this year, or 4 percent of GDP. That’s the lowest aggregate deficit since 2008 and less than half the size of 2009′s deficit, which was 10.1 percent of GDP.

The pace of the improvement is what’s most interesting. Since February, the CBO has knocked $200 billion off its deficit projection for this year, and $618 billion off its cumulative estimate for the next 10 years. All in three months. This is largely due to higher than expected tax revenues. Individual income tax receipts jumped by $69 billion, or 5 percent. Corporate tax receipts are now expected to be $40 billion higher, a 16 percent increase. Thanks to lower defaults, Fannie Mae also kicked in an extra $95 billion to the Treasury.

Things should keep improving over the next couple years: By 2015 the deficit will fall to 2.1 percent of GDP. Even more impressive is that these adjustments aren’t a function of the sequester’s $85 billion in cuts, nor the tax increases Congress passed in January. Those were both baked into the CBO’s February estimates. This is just plain old organic growth of private sector tax receipts, which means that neither Congress nor the White House can take credit for this. (Which, of course, means that they will.)

So while the conversation about the dire nature of America’s near-term finances hasn’t changed, the facts actually have.

But don’t get too excited—the long-term problems are still scary. As a large portion of the 76 million baby boomers pour out of the workforce over the next 10 years, entitlement spending goes parabolic and begins to eat up more and more of the federal budget. Not to mention that interest payments on the debt will double as a share of GDP over the next 10 years, from 1.45 percent to 3.2 percent in 2023.

There are slight improvements in the new estimates. The CBO says that between 2014 and 2023, Social Security spending will be 1 percent lower than first projected, Medicare will be 1.2 percent lower, and Medicaid will be 2 percent lower. So while we’re certainly not Greece, we’re also not out of the woods.

The real danger now is that a rosier short-term deficit picture throws water on an already cooling debate over the country’s long-term deficit problems. It took Congress strapping a self-made time bomb to the economy for it finally to agree to some modicum of deficit reduction in January. For now, the pressure is off entirely. That’s the bad news."

I have to write a paper analyzing this article. Now a lower budget deficit is a good thing and the economy should show it. Since the nation's finances are getting better certain prices should go down and consumer confidence should go up right? Prices go down, people buy more because their spending power goes up and they can buy more for their money. That would increase GDP but if people spend more, debt has to go up for certain people and that would get us to where we were before.
Or do you think that prices would stay the same because the problem is not 100% fixed?
Offer whatever you can. I'm trying to understand this article but I'm having a hard time and I have a 4-6 page paper to write over it. That or find a new article dated after May 1st 2013. If you have any articles that would fall into the category of Macro Economics, feel free to mention that.
Increased tax = less deficit
Less deficit = cheaper goods
Cheaper goods = consumer confidence goes up
consumer confidence up = raise in GDP.
Right?

admin answers:

Wrong. Wrong. Wrong.

1. Deficit = spending - revenue
If spending is constant, then higher revenue means a lower deficit. But with sequestration the U.S. Is also cutting its spending. That contributes to the lower deficit even if it doesn't contribute to the change in the estimate of the deficit.

But you have to differentiate between higher/lower tax rates vs. Higher/lower tax revenues. When tax rates are constant but people earn more money, they end up paying more taxes - increasing tax revenues. "increased tax" usually means increased tax rates.

2. A lower deficit is NOT "a good thing".
Http://www.ft.com/intl/cms/s/2/5097537a-a034-11e2-a6e1-00144feabdc0.html#axzz2QMDM8sC9
http://www.businessweek.com/news/2011-01-27/conservative-austerity-idea-is-failing-david-g-blanchflower.html

When the economy is booming there should be a surplus, but the economy is not doing well and the U.S. Needs a bigger deficit - more stimulus spending:
http://delong.typepad.com/sdj/2010/06/we-need-bigger-deficits-now.html
http://www.thefiscaltimes.com/Columns/2013/03/05/Forget-Spending-Cuts-the-US-Economy-Needs-a-2-Trillion-Stimulus.aspx#page1
http://capitalgainsandgames.com/blog/andrew-samwick/2237/it-may-be-broken-record-sound-still-best

3. When the economy is booming, inflation is up which means prices rise. Right now, inflation is too low!
Http://www.businessweek.com/articles/2013-05-01/why-the-fed-worries-inflation-is-too-low
http://economistsview.typepad.com/economistsview/2013/06/inflation-is-too-low.html
http://blogs.wsj.com/economics/2013/06/27/low-inflation-highlights-fed-dilemma/
http://www.bloomberg.com/news/2013-06-19/four-reasons-inflation-is-too-low-.html
for the economy to grow well, inflation should be at least 2% and as high as 4%
http://people.stern.nyu.edu/nroubini/NYT/krugeconairu.htm

4. What really affects consumer confidence is jobs. Jobs have NOT been rising at a significant rate:

Oct 01 2013

Answers To Your Questions About Cuenca House For Rent

Author: admin

Charles asks…

Moving to Ecuador with my Ecuadorian Husband?

I will be moving to Ecuador, possibly Quito, or Gualeceo. What is the current situation economically there? Also, are there any good websites where I can look for houses for sale or places to rent in the Quito or Cuenca area? Any places on the internet to see good pictures (real places), of those areas? Any information will be helpful.

admin answers:

Greetings, I have a daughter who lives in Quito. It's a huge city. Like everywhere, there are ups and downs economically. I would say the biggest concern I have is Chavez and his influence. Next would be the excellent work Colombia has done to reduce the drug traffic from their country. From what I understand more has moved into Ecuador as well as more kidnapping because of displaced people in that field. None the less, it's a beautiful city. The people are wonderful. You will not have any lack of adventure. You need to keep your eyes open all the time. I would wait to find a place to live until you get there. Where you live is going to be important for your safety. You will find it is natural and should include armed guards to protect your street. You will want to live in this kind of neighborhood. The city has grown so quickly and the roads have not kept up with demand. Find a home close to where you/your husband are going to be working. Take your time. Rent a place for a short or longer time to get you by until you find what you are comfortable with. I would not do this on the internet. This culture is much different than from the States or EU.

You will find the pace of life much slower. Get into it, otherwise you will be a fish swimming up stream and encounter a lot of problems. Keep remembering but not repeating.....This is not the States!! Enjoy your adventure and your new husband. Mo

Oct 01 2013

Answers To Your Questions About Acreage For Sale Texas

Author: admin

George asks…

Does anyone know where to find 5 acres for sale in texas?

my grandpa just moved to texas and hes looking for a place to make a home and hes looking for a atleast 5 acres near or around harris county or the maybe an hour away from harris (the furthest) he wants to buy the place not rent

admin answers:

You can call just about any real estate agent in any rural county in Texas and you will find offers galore. But you also can check eBay which currently offers 10 listings for Texas acreage, where you can bid on it it or buy it outright. Here is a link for you:

http://realestate.shop.ebay.com/Real-Estate-/10542/i.html?_kw=5&_kw=acres&_kw=texas

Sep 20 2013

Answers To Your Questions About Jim Jean Real Estate

Author: admin

Mandy asks…

What is the best and fastest way to make a millions dollars without breaking the law?

Any one out there who a self made millionaire please answer me this question.

admin answers:

There are plenty of "first-generation rich" in the United States, though if your net worth is 7-figure, it doesn't mean that you have that much in the bank... It's mostly real estate value.

Check out "The Millionaire Next Door" by Thomas J. Stanley and William D. Danko from your library (or look at the Wikipedia entry at http://en.wikipedia.org/wiki/The_Millionaire_Next_Door ) or "The Automatic Millionaire" by David Bach (Oprah's website has a smidgen of information on this at http://www.oprah.com/tows/pastshows/200401/tows_past_20040113.jhtml )

Also read books on wealth management/personal finance, including Suze Orman, Jean Chatzky, etc. And investment books by James (Jim) C. Cramer and stay in the market for the long-term.

Sep 01 2013

Answers To Your Questions About Rent To Own Houses In Durham Nc

Author: admin

Lizzie asks…

How much should I charge for rent in my house?

I am buying a house very soon and already have a friend lined up as a roommate. It is a 3bed/2bath house in a nice neighborhood in 27712 (North Durham, NC) with a 2 car garage, screened porch, hot tub, and fenced backyard. She will have one of the bedrooms, her own bathroom, full access to the rest of the house, the backyard for her dog, and storage in the 3rd bedroom/office. My mortgage will likely be right around $900/month. I'm struggling to determine how much to charge for rent! There are no available rental spaces nearby that I can look into on Craigslist, but I know that if the entire house were for rent, it would be $1200/month. Also, including utilities or should we go 50/50? Any help would be great!

admin answers:

Charge her $550 and half the utilities.

Here's the logic: You're renting more than just a bedroom (and access to the kitchen and a bath). I'm guessing--just a guess--that based on what you said, if someone were to rent out a bedroom on Craigslist they'd probably charge about $400. So that's the base. You're providing access to the rest of the house, the backyard for her dog (some places won't rent to people with dogs), and extra storage. All of that is worth more than a straight bedroom rental. I'd put the value at about $550.

The amount you're paying for the mortgage is barely relevant. The number you really have to look at is what others would charge for a similar rental. However, it's certainly OK to take half the mortgage and ask: "Is that reasonable?" And, yes, $450 is reasonable. I'd bump it up a bit because of the extras, and because you're on the hook for the entire mortgage. She's not a co-owner. You have far more responsibilities (repairs to the house, for instance).

And definitely half the utilities. If you just come up with a number (say $50 a month), that's going to be too high or too low. Why not be fair to both of you and just split them.

Hope that helps.

Donna asks…

Safe and Cheap place to live in Washington DC?

I am new to the area and am trying to find somewhere to live that is cheap and safe until I can get on my feet. Anyone have any ideas of where I can live?

admin answers:

I'll be honest with you, DC Safe and Cheap do not go together. You need to take a few things into consideration. I'm not sure where you are moving from so I can't really say what will be cheap to you. I grew up here in one of the worst parts of town in Southeast DC and then moved to Durham, NC for college. I moved back here not too long ago with my wife and now live in one of the safest parts of town so I've been all over the place.

DC is broken up into quadrants NE,SE,NW,SW and from there its broken up into wards. Ward 7 is statistically the most crime-ridden with the highest number of violent crimes. Thats where I grew up. A 1-bedroom over there will cost you around $800 a month.

I now live in Ward 2 which is in NW and is considered one of the safest parts of town. The embassies are on this side and a lot of diplomats and well to do folks live over here. My 1-bedroom costs $1370 for 530 square feet. My rent is low for this area. Most places start around 1700.

You'll need to find a compromise if that is too high to you and you may want to consider moving out of the city and commuting (but I don't recommend it if you work in the city). I also used to live in Ward 6 which has parts that are considered Capitol Hill and rent over there is about 1200 a month in some places. That area is still going through "gentrification" so you can find some cheaper places. You may run into issues however because a lot of apt buildings are turning into condos. There are a lot of row houses in this city so it isn't uncommon for people to rent out separate basements with their own entrance/exit and no interaction from the owner.

Columbia Heights is gentrifying too but in my opinion, the crime really hasnt gone down in that area so I'd avoid it for now, but there are some cheaper places again for about 1200 a month.

If you absolutely can't go that high then you can consider moving out of the city into the suburbs of MD but you will no doubt make up for it in subway fare or gas/commute time if you work in the city.

Here is the link for the DC crime map. I would suggest you first go on apartments.com and search for apartments based on your budget. Then go to the dc crime map ) and put in the address of the building to get an idea of what goes on in that area. THEN I would also suggest going to apartmentratings.com and looking up the building/complex to see what current and former tenants have to say. Whatever you do, please try to come see the place before leasing online or something like that. Having grown up here, I find it really sad the way some of these places make the worst skid-row looking neighborhoods look like "Up and coming." Don't be fooled by those little blurbs about "close to Capitol Hill" "Within walking distance of..." A few blocks can make the difference between ghetto and heaven in this city. So that will be a long "walk" if you get conned. See what the place looks like before you rent.

Thomas asks…

Where is the BEST (and most AFFORDABLE) places to live in MD/DC/VA?

Looking to move to the area in the near future and would like a realistic (and unadulterated) opinion of the places to consider where my family can be physically/mentally safe and financially comfortable.

admin answers:

Mark asks…

I'm moving to Washington, D.C. next fall, what is a safe yet affordable area to live in?

I am going to school in Washington, D.C., at American University, next fall. What is a safe, but also affordable area to live in that won't be far from the school? It doesn't necessarily have to be in D.C. If it was in Virginia or Maryland that would be fine too just as long as it isn't more then 20- 30 minutes max from the school.

admin answers:

I just answered a similar question for someone else so I'll just copy/paste here. Oh yeah, I live about a mile from American Univ and my rent is 1350. So, this will definitely apply to you:

Columbia Heights is gentrifying too but in my opinion, the crime really hasnt gone down in that area so I'd avoid it for now, but there are some cheaper places again for about 1200 a month.

Here is the link for the DC crime map. I would suggest you first go on apartments.com and search for apartments based on your budget. Then go to the dc crime map (http://crimemap.dc.gov/presentation/quer… and put in the address of the building to get an idea of what goes on in that area. THEN I would also suggest going to apartmentratings.com and looking up the building/complex to see what current and former tenants have to say. Whatever you do, please try to come see the place before leasing online or something like that. Having grown up here, I find it really sad the way some of these places make the worst skid-row looking neighborhoods look like "Up and coming." Don't be fooled by those little blurbs about "close to Capitol Hill" "Within walking distance of..." A few blocks can make the difference between ghetto and heaven in this city. So that will be a long "walk" if you get conned. See what the place looks like before you rent.

Sandra asks…

I am moving from Ga to Washington d c?

Is Washington d c a bad place to move to. people is telling me if i go pass the capital bridge it is the hood. i want to move from Ga to there

admin answers:

Columbia Heights is gentrifying too but in my opinion, the crime really hasnt gone down in that area so I'd avoid it for now, but there are some cheaper places again for about 1200 a month.

George asks…

How do I move out of state? Has anyone made the transition and had to LOOK FOR A JOB out of state?

A little back ground: My husband and I are students at a local community college and I am currently working part time...we manage our finances well, but our funds are limited. We plan on saving money of course (so no need to mention that because it's obvious). I have heard stories of people living in their cars, living in a church etc. We want to move to Raleigh, NC from OH, and if we could we would leave everything and go this second but that's not realistic.

Is there any websites that can help or blogs? I need to know if there is some type of program in NC that will help us with the transfer or moving state to state guides including inexpensive temporary housing.

My plan was to take the bus to NC, move into a motel for 3 months and look for a job and send for my husband but our 5,000 (2 years of saving) goal is going to go fast in 3 months.

Any tips, websites or experiences that you have had or know?

admin answers:

I've done similar a couple of times, but never lived in NC.

In this economy moving without lining up a job ahead of time is a recipe for disaster.

You've already received good advise. It's best if you line up a job ahead of time. Assuming you're planning on using your education to land a professional job it's very common for people to interview remotely. Often times the prospective employer will fly you there for a formal interview, if you really think you want the job - volunteer to pay your own way down for an interview. Once again, assuming a "professional" job (vs something where potential candidates are a dime a dozen locally such as CNA, waitress, truck driver..) the employer may also be willing to pay your moving expenses or part of your moving expenses.

If you plan to move without having the job first it's best if you can find someone to live with. If nothing else maybe look for someone needing a room mate on Craigslist.org. NC State University is in Raleigh, so it shouldn't be to hard to find someone looking for a room mate. Motel will cost double or triple what it would cost to rent an apartment. I would avoid using a motel.

Try using the placement center at your school. Try using a head hunter. Try joining any professional organizations in your field, they will often have web sites that post job openings.

With the employment situation it is right now, it's unlikely that the state will have any programs to assist a non-North Carolinian find employment in NC. At least as far as education is concerned NC favors the locals. My daughter tried to get into a couple colleges in NC, the state has a law that 80% of incoming freshmen must be NC residents, at least for the UNC system. Any out of state applicants better be a future NBA HoF basketball player or one of the top kids in their high school to be considered.

Another option is to find employment in OH with a large national company that has a presence in NC. Once you've established yourself with the company, request a transfer. Companies like IBM come to mind. There are a lot of high tech companies in the Raleigh/Durham area - called Research Triangle Park. A lot of those companies have also had layoffs in the last 2 years, I'm just saying.

Aug 01 2013

Answers To Your Questions About Real Estate News 2013

Author: admin

Sharon asks…

Will there be a capital gains tax on the sale of your home inthe new health care reform bill?

I have heard that there will be a 3.8% capital gains tax on the sale of your home under the new health care reform bill effective 2013. Is that correct?

admin answers:

One of the rumors circulating around the internet is that Obama care would impose this 3.8 percent tax on all real estate transactions. In reality, the rumor is just that and has no veracity, since all residential real estate sales provide for a $250,000 profit exemption for individuals and a $500,000 exemption for married couples filing jointly. The new taxes would only affect those sellers whose gains exceed those threshold amounts.
News reported on: 9/20/2010 2:24 PM
http://www.aikenstandard.com/FeatureColumns/0918-On-The-Money

They'll figure out some other way to get you if this does not pass - don't worry.
/

Carol asks…

When will the national press investigate all the facts and financial details of Obama's home in Chicago?

Again, a press cover up for Obama---we need the details of the entire fraud and scam!

admin answers:

American's misery index is the highest it's been in 28 years.

There is no bottom in site for Real Estate value:
http://finance.yahoo.com/news/Home-sales-fell-to-2011-low-apf-682403843.html?x=0&sec=topStories&pos=8&asset=&ccode=

There is no TOP in sight for unemployment:
http://www.bls.gov/web/laus/lauhsthl.htm

There is no bottom in sight for the US Dollar:
http://online.wsj.com/mdc/public/page/2_3020-worlddollar.html

53% of Americans favor repeal of Obamacare:
http://www.rasmussenreports.com/public_content/politics/current_events/healthcare/health_care_law

And 30% of Employers say they will drop Medical Insurance for employees under Obamacare:
http://blogs.reuters.com/james-pethokoukis/

It really doesn't matter WHAT you look at economically; socially or spiritually: America's future does NOT look good, and we are living under policies instituted by PRESIDENT OBAMA.

So tell me, Elwood, are these conspiracy theories?

Am I going to wake up from this bad dream?

The Answer is Yes.

Independance day is Jan 20, 2013: The END of the Obama Regime.

And right now, I REALLY DON'T CARE who the Republican nominee is.

Elmer Fudd would make a better POTUS than what we have.

I'll bet Emer Fudd has a Birth Certificate; not a Certificate of Live Birth.

Lizzie asks…

Should the Government confiscate gold and make it illegal to own like they did in 1933 under FDR?

http://en.wikipedia.org/wiki/Executive_Order_6102

admin answers:

New Tax on Gold Is Hidden in Obamacare ( Gold is being taxed ! )
Money News .........President Barack Obama’s healthcare reform legislation reportedly contains an added provision that would tax gold coin and bullion transactions.

The tax comes in an obscure section of the tax code that deals with purchases by self-employed people and small businesses, ABC News reports.

Starting Jan. 1, 2012, small businesses and self-employed people will have to issue 1099 forms, which are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals, for every vendor with whom they do more than $600 business in a calendar year. The new regulation is designed to gain more tax dollars to finance some of the healthcare bill’s other provisions. According to ABC News, dealers in gold coins and bullion are among those most rankled by the change. Unlike businesses with a comparatively small number of vendors, coin dealers frequently buy from members of the general public as well as from other dealers. Pat Heller, who owns Liberty Coin Service in Lansing, Mich., deals with around 1,000 customers every week and estimates that he will be filling out between 10,000 and 20,000 tax forms per year after the new law takes effect. "I'll have to hire two full-time people just to track all this stuff, which cuts into my profitability," Heller told ABC. Read more at moneynews.com ...

-------------- 20 Hidden Taxes In Obamacare ------------
Hidden Real Estate Sales tax in Health care bill – Surprise!There are already at least 20 hidden taxes in the Obama Health care plan coming down upon us the next few years. So, along with rationed care for seniors and forced health insurance, we now find there is a Real Estate Tax snuck into the Health care plan. You may ask, what in God’s green earth does health care have to do with Real Estate taxes??? Absolutely nothing, that is precisely why one got snuck in there.

There has never been any rhyme or reason to this administration other than redistribution of wealth, socialism and inserting cradle-to-grave control. Using Health care as an excuse for seizing control of accounts and businesses is just one strategy. Obama has also planned all along to use the ‘environment’ i.e. Cap and Trade to take even more. This will do more than take. It will flatten American business and destroy our sick economy. Who cares what the American people think and what the constitution says! We are just in the way…..take, take, take.

I was forwarded this latest tax scheme by Van Hipp, President of American Defense International and the former Deputy Secretary of the Army under Bush senior and Ronald Reagan. He recommended the well known accountant and expert witness on tax matters, Paul Guppy who wrote a commentary on the various hidden taxes in the Spokesman Review paper, “Health Law’s Heavy impact.”

Starting in 2013, not only will you pay the closing costs and real estate fee when you sell your house but now you will pay a 3.8% Sales Tax. So, if you sell your home for $400,000, perhaps wanting to down size if you are a senior you will pay $15,200 in Tax.

Here we have another assault on our seniors again. Many downsize their homes as retirement comes closer, so along with long lines and rationed care that is substandard, seniors and anyone will have to pay more tax on the home they just sold.

Penalties for individuals: We will pay 2.5% of our annual income as a fine/penalty if we don’t purchase the government approved health care plan.

Penalties on families: Parents will pay a yearly $347 per kid if they don’t purchase a government approved health care plan.

Penalties on employers: If you are a business with 50 or more employers you will get fined at least $2,000 per employee if you don’t provide, once again the ‘government approved health care plan.

Other special taxes and fees:

Investment income: Anyone making $200,000 or over gets to pay 3.8% of their annual investment income. Start adding up them apples, folks.

If you have a fancy health care plan and pay as an individual, $10,200 or $27,800 for a family, you get to pay a 40% annual tax on those health care plans.

Medical aid devices have gotten hit hard as well. They will see a 2.9% tax hike. Sorry if you have an artificial limb….you are screwed.

Medicare gets more money because if you earn $200,000 or more you pay a special Medicare tax of 3.9.%

Then there is the 10% tax on tanning….on and on. Perhaps you should consider an ‘Albino’ beauty treatment.

This Health care bill is nothing but an orgy of controls, tax schemes and rationed care. Now add Real Estate tax to the ridiculous list.

Aug 01 2013

Answers To Your Questions About Owner Financing Vacant Land

Author: admin

Lisa asks…

How do I get other property owners or the county to contribute money towrds building a bridge over a ditch?

I own property that is currently not accessible by public roads. To get to the property (that is zoned residential) I have to build a bridge or culvert over a county owned canal. Can I get a grant from the county to build it or do I have to finance the project. If I have to self finance, can I charge other vacant land owners who, once the bridge is built will have access to their property? It doesn't seem fair.

admin answers:

The road is not ppublic, it is private. Therefore you pay for your private road.

If your neighbors have easements to use the road it is a felony to charge them money to access their property.

Jul 04 2013

Answers To Your Questions About Investment Property Refinance Rates

Author: admin

John asks…

need help understanding the principles of owning a home financially...?

i recently bought my 1st home, or rather got a loan (mortgage) for it and i get the basics of owning a home like taxes and insurance, etc. but a few things i am a little unsure about
1. equity what exactly is it and what is a loan against your equity?how many times can you take out your equity and when is a good time to do it, of course i know you have to add to the value of the home to build equity...
2. what does homestead mean when filing taxes? and why does that have an effect on getting your equity out of your house?
3. what is refinancing? and when is a good time to do it? and what factors are considered or help you in refinancing?
4. i have only had my house 14 months but already my loan has changed 3 times from the original lender, is this normal and what is it all about?

admin answers:

Congratulations on buying your first home! Owning a home is a good, if major investment. The key to it value is equity. In terms of home ownership the equity in your home is the difference between the market value of your home and the outstanding loans on your home. For example, let us say you bought your house a year ago for $200,000. Let's say you made a down payment of $40,000 and got a mortgage for the remaining $160,000. Now, during the last year lets say that real estate prices in your neighborhood rose 10%, plus through your monthly mortgage payments you have reduced your home loan by $6,0000. So lets put this all together; due to the rise in real estate prices your house is worth $220,000 (remember they rose in your neighborhood by 10%,) and outstanding mortgage is $154,000 (you have been paying it off,) so subtract the mortgage from your market value (220,000 - 154,000 = 64,000/
so your equity (answer to #1 - the monetary value of difference between the market value of you home and outstanding debt on the home) is $64,000. This equity is what you can use to get a second mortgage. Sometimes people do this in order to undertake major improvements to their home. For example, if you wanted to add a solar heating system to your home, this could cost about $50,000. Very few people have $50,000 sitting in the bank, but as we noted above you have $64,000 in equity in your (imaginary) home. You can use this equity to go to a bank and get a second mortgage for $50,000 (this is called a loan against your equity.)
Now once you sign a loan agreement, you are borrowing money against the value of your home and paying interest on that money. But interest rates change. So perhaps 3 years from now, interest rates have dropped. Your original mortgage was (we will pretend) at 6.5% and your (imaginary) second mortgage (that you used to install solar heating) was at 7%. But over these last three years interest rates have dropped (because we elected a Democratic president who rebalanced the budget and began to pare down the National Debt,) so now home loans are offered at 6%. You go to the bank and "refinance" your house by getting a new loan (at a lower interest rate) that allows you to pay off your two older loans. Sometimes, when owners refinance they also "take out" equity by increasing their mortgage, ( remember on your "imaginary" house you added your solar heating which adds value, you continued to pay off your mortgage, which decreases your debt, and, perhaps, real estate values continued to rise in your neighborhood, so when you come to refinance, the market value of house may have grown to $290,000 when you refinanced, so you may decide to have a $200,000 mortgage on your home.)
so in conclusion:
1) equity is the difference between the market value of your property and the outstanding debts on your property.
2) homestead is the legal term (from the old Homestead Act of 1862) for your title to your property.
3) refinancing is when you want to get a new loan (usually at better terms) on your property in order to: a) retire older loans at higher interest; b) "take out" some of the equity you have built in your home by paying off your loan and having property prices rise.
Here is a site for California (I don't know where you are) for preparing your homestead declaration:

And finally, yes it is normal for loan papers to be "sold" at discounted prices among financial institutions (this is exactly how a lot of giant finance house like Lehman Brothers or Goldman Sachs started out buying and selling loan papers.) This sale cannot change the terms of your loan, only the final receiver of the loan money. There is an especially big market in second mortgage papers. Companies like Fannie Mae make a lot of their money in this trade. Anyway, sorry for being so long, I hope this helps you a little, one word of advice - for your own economic interest, do not totally mortgage your property (always keep a margin of equity) this leaves you some "emergency" collateral, and helps ensure your title to the property. Good luck.

Susan asks…

Has anyone here ever gotten a hard money loan?

I've been told about this program and a little weary about it. I'd like to hear from people with experience with this that have invested in homes.

admin answers:

A hard money loan is usually done by a private individual or a company that specializes in investment property financing or poor credit financing. You will pay a very high rate and high closing costs. Most of the time it is a good idea to refinance these loans as soon as possible. Usually hard money lenders can make loans at higher values than traditional lenders. I would ask for refrences and be prepared to get hit on rate and costs. Most of the time it is not a scam...they just do loans that no one else can do.

If you are looking to rehab a property this may be your only choice unless you have some money to put down. If you have some $$ to put into the transaction you need a bank rehab loan ...probably from National City or IndyMac. Call those banks or a local broker depending on where you are located.

Ruth asks…

Does an ex need to sign paperwork to refinance even if her name was never listed as an original buyer/owner?

Me and my buddy are trying to refinance our investment home in Texas that we purchased in 2006 and we live in California. When we purchased the home, the title went under our name. A year later he met his ex-wife. Just last year, they got a divorce and now we are trying to refinance to get a better rate and lower our monthly payment. Is there a law that states she needs to sign refinance paperwork even if her name is no where to found on any paperwork for the home? This is what Bank of America is saying. I find it weird because my parents are divorced and when I refinance my house with my mother, my father didn't need to sign anything. Any knowledge you can instill in me is greatly appreciated.
Also, they signed a pre-nup through an attorny stating that anything belonging to him prior to the marriage is his.

admin answers:

California is a community property state. That usually means that everything he owns is half hers, without a per-nuptual agreement. See a divorce attorney.

For budding attorneys: see Lee Marvin's case.

Thomas asks…

I'd like to know besides moral reasons, what damages reducing the prime rate will do.?

Who's pocket will get hurt? Will that affect Wall Street? If the index rate goes down below... let say 5%. Everybody will start refinancing and since the banks already learn about sub-prime... All those new loans would be "safe". People will start buying investment properties, the Real Estate Industry, the Mortgage, the Construction, Furniture, Paint, Wood, etc, would regain strengh, and Banks will be able to survive. The government wouldn't even have to think of subsidice people that if nothing get's done will face forclosure. Please no politics. I want to know statistics, and financial investments opinions.
I'm not wory about the banks. Nor about the people who got in trouble. I like to know why the Gov. havent act lowering the prime rate and get the economy back in the tracks. Banks already learn their lesson, so for a lmited time... They will be cautious.
Dear Russ,

1. It wouldn't be the firts time the Gov. drop the prime, therefore there are statistics out there. You may no knoe them, but there are.
2. Projections would do the tric for my question, but instead of expressing them, you answer as if you where teaching us the difference between Statistics and projections. (turn off).
3. You missed one simple fact. The prime was raised about 17 times one after the other, and you are quoting a one time almost insignificant.
4. Everytime the prime goes up or down is artificialy. It's a desition made by a person or etity of something that is not natural.
5. The only time you got close to really answer my question you mentioned the fine print, and that my theory was flawed. Well it worked after Sept. 11th. Dem are asking the Gov to subsidice, and Rep to stay put. There is when the real middle class suffer the consecuences.

For the record... I want answers that gives pros and/or cons to my theory. Not a controversy. Thanks!

admin answers:

Who's pocket will get hurt? - My pocket will. People like me who work hard, and want to invest in safe securities, like certificates of deposits and bonds. A higher interest rate will help my future.

Will that affect Wall Street? - These past few weeks have proved it affects Wall Street. They are steady trying to manipulate the Fed to lower the rate to their advantage.

I am not an expert, but i believe we have a strong economy, and lowering the rate will bring the value of the dollar down.

Lisa asks…

Will the consumer ever win in the big American mortgage scam?

The start of a new "truth blog". I thought I'd try it out here on answers. Let me know what y'all think.

Why do greedy banks and mortgage brokers always win when it comes to average Americans who only own the house they live in? Do you think you've got a deal? Think again. Here are some statistical facts.

a) CLOSING COSTS

With almost NO exception, hidden or not, closing costs are always to be paid on a mortgage. The only question is how much and it's usually a LOT and I'll tell you why. Lenders and mortgage brokers seem to be experts at "sizing up" their prey ... I mean customers. If you are like 90% of clueless Americans who simply look for the lowest rate and pay any closing costs, the lender will simply charge you thousands upon thousands in closing. There is no limit on what can be charged and seems to be no limit into how the costs can be sliced, diced, and hidden within a good faith estimate. Note that when rates are "low" and there is buying frenzy ... people typically
pay MORE in closing costs on top of getting shorter term more expensive loans which brings me to my next point.

b) ISN'T THAT INTEREST RATE ALWAYS AT LEAST A LITTLE HIGHER THAN MARKET NO MATTER WHAT?

Interest rates and mortgages have become nothing but a pawn in the great scam played by lenders and mortgage brokers. When they are "low", that increases the lenders business. Sure, you'll get a "lower" rate when interest rates are "low" but you can be certain that it will never be market or as low as it supposedly should be. No, the lender is armed with at least 2 good reasons to hike your rate and guess what? You can't win. First reason is your credit. You have great credit? So what? It's not perfect (hardly anyone is) so ya know what ... you don't get the best rate. You have bad credit?! WOO HOO Now, you will just get the highest possible rate the lender think you could ever possibly afford - plus an extra point for good measure.

If this wasn't enough, or even if it were we mo
move on to the next and almost final blow ....

c) LENDERS REALLY DON'T WANT ANYONE TO GET A 30 YEAR FIXED MORTGAGE

In fact, they want to get you the shortest possible term so they can force you to refi or just squeeze you on an ARM. Either way, they win. Here is how it works. You go out shopping and see the various mortgage types all over. Maybe you've even researched it, but that doesn't matter if your conclusion is that you want the longest common term (30 years). Of course you want a 30 year term - IT's THE BEST DEAL FOR YOU and that's why you aren't going to get it for the best cost.

No, if the higher rate on the 30 year isn't enough to convince you to get an ARM ... then the lender will hit you with additional closing costs on the fixed. Go ahead and talk to them if you'd like to be more insulted. In a great market with "low" rates (aka 3 years ago) your broker will tell you how an ARM or other variable rate product is really OK since your house is going nothing but up
Pay no mind to that higher interest rate, ridiculous closing costs, or the fact that your house is anything but guaranteed to go up in proportion to your mortgage and terms. In a "bad" market (aka now) the lender will tell you that you don't have a chance of getting anything better than ARM for less than your arm and leg. See, you lose no matter what and don't believe what your friends tell you. They are of the 90% of America who doesn't pay attention or have a clue.

d) ROLLING CLOSING COSTS IS ONE OF THE FINAL NAILS IN YOUR COFFIN FOR THE REFI

When people get desperate or even if they just start asking about closing costs on a refi, one of the first words out of broker's mouth is "hey, who cares because these costs won't come out of your pocket". No, they won't come out of your "pocket" ... they'll come out of your loan and INCREASE the amount of money you already owe and will likely not have a chance of paying off unless you work like a dog for the bank for the next 40 years!
The lender knows this, and they also know something else you might not know. If they can INCREASE the amount you owe in one day with a refi. You know what this means? You've just INCREASED your loan to value ratio. That's right, you now owe more on your house than what you originally mortaged it for and you didn't even get any "cash out". You know what else? At the rate you are probably paying down on the principal you'll probably still owe all those closing costs and then some come time you need to refi or sell. NOW, it will not only come "out of your pocket", but it could be worse. Those rolled up costs will be used against you if you are trying to get a new loan with a greater than 80% LTV. Enjoy paying PMI and a few most closing costs on top of closing costs on top of interest while your broker tells you he just can't work a better deal because your LTV is too high on a house you've been already been paying on for years!

admin answers:

Wow, you must have been a victim of predatory lending! Unfortunately, it's up to the consumer to educate themselves before they enter into a transaction of obtaining a mortgage for a home or anything else.

This is taken from the HUD (Housing and Urban Developement) website:

Buying or refinancing your home may be one of the most important and complex financial decisions you'll ever make. Many lenders, appraisers, and real estate professionals stand ready to help you get a nice home and a great loan. However, you need to understand the home buying process to be a smart consumer. Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud.

Don't let this happen to you!

11 Tips On Being A Smart Consumer

Before you buy a home, attend a homeownership education course offered by the U.S. Department of Housing and Urban Development (HUD)-approved, non-profit counseling agencies.
Interview several real estate professionals (agents), and ask for and check references before you select one to help you buy or sell a home.
Get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
Hire a properly qualified and licensed home inspector to carefully inspect the property before you are obligated to buy. Determine whether you or the seller is going to be responsible for paying for the repairs. If you have to pay for the repairs, determine whether or not you can afford to make them.
Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
Do NOT let anyone persuade you to make a false statement on your loan application, such as overstating your income, the source of your downpayment, failing to disclose the nature and amount of your debts, or even how long you have been employed. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and may result in criminal penalties.
Do NOT let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert "N/A" (i.e., not applicable) or cross through any blanks.
Read everything carefully and ask questions. Do not sign anything that you don't understand. Before signing, have your contract and loan agreement reviewed by an attorney skilled in real estate law, consult with a trusted real estate professional or ask for help from a housing counselor with a HUD-approved agency. If you cannot afford an attorney, take your documents to the HUD-approved housing counseling agency near you to find out if they will review the documents or can refer you to an attorney who will help you for free or at low cost.
Be suspicious when the cost of a home improvement goes up if you don't accept the contractor's financing.
Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.
What is Predatory Lending?

In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:

Sell properties for much more than they are worth using false appraisals.
Encourage borrowers to lie about their income, expenses, or cash available for downpayments in order to get a loan.
Knowingly lend more money than a borrower can afford to repay.
Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
Charge fees for unnecessary or nonexistent products and services.
Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.
"Strip" homeowners' equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.
Use high pressure sales tactics to sell home improvements and then finance them at high interest rates.
What Tactics Do Predators Use?

A lender or investor tells you that they are your only chance of getting a loan or owning a home. You should be able to take your time to shop around and compare prices and houses.
The house you are buying costs a lot more than other homes in the neighborhood, but isn't any bigger or better.
You are asked to sign a sales contract or loan documents that are blank or that contain information which is not true.
You are told that the Federal Housing Administration insurance protects you against property defects or loan fraud - it does not.
The cost or loan terms at closing are not what you agreed to.
You are told that refinancing can solve your credit or money problems.
You are told that you can only get a good deal on a home improvement if you finance it with a particular lender.
Remember:
If a deal to buy, repair or refinance a house sounds too good to be true, it usually is!

Housing counselors working at HUD-approved agencies can help you be a smart consumer. To find a counselor near you, call (800) 569-4287 or go to HUD's housing counselors list online.

Donald asks…

What does "to take out a new mortgage"?

I found that expression as it is showed here:

1.- If my first and second home mortgages are completely paid off, can I refinance or take out a new mortgage against my home to purchase an investment rental property?
2.- Unemployment also has an impact on demand for new houses with people less likely to take out a mortgage if their job is in jeopardy.
3.- European mortgage markets are of vital importance for millions of European citizens: the decision to take out a mortgage is one of the most important financial decisions an individual can make

Thanks in advance

admin answers:

Lets look at the examples

1.) you use to have a mortgage, actually 2 mortgages at the same time. The first mortgage holder would have priority if the house were to be foreclosed on and the 2nd mortgage holder has second right.
Since both mortgages have been paid off a NEW mortgage means that you would borrow money.

This is the same as taking the loan out for the first time when you purchased the home

2.) Take out a mortgage is similar except that the potential borrower sees that there is a lot of homes on the market so would be hesitant to buy now but perhaps buy later when they suspect that housing would go no lower.

3.) Mortgage markets are vital for millions of people regardless where you live. Taking out a mortgage is an important financial decision rated as most important because the length of the loan extends well beyond the foreseeable future. You can minimize your risks by taking loans at a shorter term but that will increase the monthly payment.

Home Staging – Ready For Showing Now!

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need help understanding the principles of owning a home financially...?

admin answers:

Has anyone here ever gotten a hard money loan?

admin answers:

Does an ex need to sign paperwork to refinance even if her name was never listed as an original buyer/owner?

admin answers:

I'd like to know besides moral reasons, what damages reducing the prime rate will do.?

admin answers:

Will the consumer ever win in the big American mortgage scam?

admin answers:

What does "to take out a new mortgage"?

admin answers: