Quote:
Originally Posted by stunna954
I know Stephen Moore has been on record saying he wants to see them raised from 15% to 31%. What impact if this were to occur do you feel it will have on the REI market? Would you be better off paying capital gains now if you are going to sell then trying to do a 1031 exchange and possibly being hit with a greater tax in the future?
I dunno. Personally, I'm not going to live my life in fear of what might happen. I think that if you're concerned about the tax implications of an investment the best thing to do is take to a qualified CPA.
To answer your question, I don't know of anyone that invests in RE primarily for the delayed exchange benefit. IMO, delayed exchanges make an already desireable investment type even more desireable. I don't think that a change of the capital gains tax rate will have a huge impact on RE as an investment. However, I'll also say that the tax implications of an RE investment are really important to understand. A LOT of RE investors went broke in the 80s when congress changed the tax implications of owning property. Could that happen again? Sure, of course. But that could happen in ANY investment.
Also, I don't believe that its a huge risk that cap gains will go from 15% to 30%.
Quote:
Do you do very much marketing for your properties or do you have any creative marketing ideas? Also do you ever offer any incentive lease rates if you’re having trouble filling properties? Like maybe offering a discounted lease rate for a year or two if they sign a long term lease. Sorry I know that’s a bit more geared towards commercial which I know you said you don’t do but I’d love to hear your ideas for marketing and incentive offers for both residential and commercial.
Well, I have waiting lists for my properties. It is typical in my area for leases to automatically switch to month-to-month leases at the end of the 12 month term. So when I have a vacancy I just call my waiting list and get a new tenants.
I've found that the regular newspaper works the best for attracting tenants. When I started out I'd ask neighbors for referrals and give them $50 or so. That seems to work. But no, you don't need to do much creative.
Quote:
I ordered “Wheels on Deals” and I’m sure it will go into this but have you personally ever had to foreclose on a note? How difficult is the process when are dealing with mobile homes and is there a high rate of foreclosure dealing with lower income individuals? I’m assuming it’s no different than foreclosing on a single family home where it is quite a lengthy and can be expensive process. Is that correct?
You dont' foreclose on a MH, you repossess it. MHs are technically vehicles and are regulated by the DMV. Check with your state DMV to learn how to do it. It should be something like: send letter to buyer asking for payment; send letter of repo to DMV; DMV puts title back in your name; (if applicable) evict; clean/paint/rehab; resell.
I don't do a lot of these deals, but I've taken one home bakc. They called me and explained that they got moved (miliary couple) and asked if I'd take the home back. I said I would if they left it clean. They did. No problem.
Quote:
Last question, sorry, if you don’t mind sharing but what do you feel you biggest mistake you’ve make in REI has been?
I don't know. I've made lots of mistakes. By biggest mistakes have always been paying too much for property.