All Forum Posts by: Daniel Stewart

Sorry I didn't explain the rankings better.

Here is how to read it:

Rank is the probability for foreclosure by city.
Annualized Home Price Appreciation is just an estimate of the change in home prices in this city.

I don't know if it violates the forum rules, but here is the link to FACL's webpage discussing the risk monitor:
http://www.corelogic.com/pressroom/core-mortgage-risk-monitor/200801-core-mortgage-risk-monitor-html/#top10

Basically, what FACL does is help banks adjust interest rates based on statistical analysis.

Did you still accept the partial payment when you handed him the 3-day? Be careful about doing that, better to not take the money at all. In most states, the court will find against you for accepting partial payment and then trying to evict. In other words, you cannot begin eviction at that point but have to wait until the tenant is late on the next month. He could legally continue to live there on a partial rent payment until the next month's payment is late. Then you can issue the 3-day, but only for that month, not the previous in which you accepted the partial.

Bottom line? Don't ever accept partials.

That's why you need to write into your lease what constitutes a guest and an occupant, as well as no animals are allowed in the premises at anytime whether owned by the occupant or not. My leases stipulate that anyone staying more than 3 days within 12 months is an occupant and must be added to the lease.

First American Core Logic released it's foreclosures forecast this last week, figured everyone would like to see some of the rankings by city.

Basically, what First American Core Logic does is rank cities on their likelyhood of foreclosures. It is based on job growth and loss, fraud, etc.

Rank City Annualized Home Price Appreciation
1 Bakersfield CA -16.9%
2 Stockton CA -18.7%
3 Fresno CA -16.2%
4 Warren MI -7.1%
5 Grand Rapids MI -5.8%
6 Riverside CA -16.8%
7 Sacramento CA -15.1%
8 Detroit MI -0.8
9 McAllen TX 2.6%
10 Youngstown OH -9.6%

Looks like it might be a buyer's market in California and Michigan this coming year.

Kramer is no idiot. His stock picks average an 18% return (almost hard to believe, but very impressive).

Given the fact that the man knows investing, how could he not recommend purchasing something using "buy low, sell high"?

Real estate is a buy right now. Solidly.
Median home prices have fallen a record percentage in the last FIFTY years.
Existing home sales have fallen a record percentage in the last TWENTY-SEVEN years.

Being a landlord, I can't help but buy all I can this year. I make my profits by keeping my overhead low. Buying property cheap means I make more monthly profits. Lower price means less available depreciation on the old tax book, but the bottom line is still much better.

You really need to talk to a LAWYER before you jump on the LLC or Corp bandwagon.

The BIGGEST mistake the layman makes in forming either is assuming that their assets are automatically protected. The fact is that a court can AND WILL declare your assets ripe for picking in a lawsuit if the plaintiff can prove that you manage the day to day operation of the business. The judge in the case will declare that your business is, in fact, a sole-proprietorship and make your assets available to liquidation in judgement.

The thing to protect your assets in that case isn't a LLC or Corp, but LIABILITY INSURANCE. When you purchase a policy, though, make sure it not only covers the investment directly involved, but the value of all your other assets as well.

[Edit] Forgot to add this little most commonly unknown fact about LLC's and Corps...

Think you might have to go to small claims court or municipal court to get a judgement against a tenant or file an eviction? In most states, you can't represent a LLC or Corp in any court unless you are an attorney. Expect to pay handsome fees for these simple filings in which a sole-proprietor can do himself.

I read a couple of the books. I will admit, he is good at motivational speeches. But, there are huge mistakes in it (like using a 1031 exchange into a mini-storage.....flatly illegal per Section 1031...this sort of caught me by surprise as the co-author is supposedly a CPA). Not someone I would take advice on "technical" information. Some of the advice is just plain stupid while others are pretty good.

Bottom line....

Read it for motivation, but seek other resources for "how-to".

Just be sure to check the laws in your state regarding it. In some states it is considered brokering and you must have a broker's license.