All Forum Posts by: Richard Warren

Here's another thread about Monica Main:

http://www.biggerpockets.com/forums/79/topics/13370-monica-main-wealthy-heirss-scam-

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Originally posted by Ryan Johnson:

to deny someone because they are going through a foreclosure is absurd, and largely unethical.
Sheesh.... what does a foreclosure have anything to do with someone renting from you.

Absurd? Ridiculous? Unethical? Far from it. If you are being foreclosed you have bad credit and bad credit is a perfectly valid reason to deny a prospective tenant. I not saying you should be, but it is a legally valid reason.

You indicate that you are walking away from your home because it is underwater. Does that mean there is no hardship? If you are walking away just because it is worth less than the amount you willingly paid for the home, times are indeed changing. I’m amazed at how much attitudes have changed and that it has become perfectly acceptable to walk away because you people don’t feel like paying anymore because the home lost value. Would those same people have given the bank more money because the house went up?

Again, you may have a legitimate reason for losing your home but it is not unethical to deny someone because of bad credit.

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The SAFE act is new. When the books were published it wasn't an issue because the SAFE act did not exist.

The definition of a Dealer varies from state to state and any investor needs to understand and comply with the local laws. Your observation that many people don't is undoubtedly correct.

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What you suggest is not a new concept at all. One major flaw with the example you gave – you invested more in the house than you received in a down payment. If you continuously do deals like this you will eventually run out of money.

Another point: if you offer to finance the deal you can command a much higher interest rate. I have done deals as you describe but with an interest rate near 10%. People are eager to do this when they are unable to obtain financing. The interest rate is high enough that they have an incentive to refinance if they can.

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Originally posted by Rich Weese:

I figured not many would reply and figured they would be all 2's.

Sorry to disappoint - a #1 here.

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There is a flaw with your 0% strategy. The IRS assumes a minimum interest rate on transactions such as this even if you don’t charge or pay any interest. It’s called imputed interest and you will be taxed as if you charged it.

Check this article: http://yourfinishrichplan.com/blog/2009/07/16/irs-imputed-interest-rate-and-rules-tax-preparation-help-tax-debt-help/

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It depends on what other houses in the area are like. I have several rentals in rural Nevada that are 750 – 1,000 sq ft. I have no problem keeping them rented because that is the norm for the area.

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Originally posted by Rich Weese:

I watched an interview with a census worker. She stated that she was hired short term , let go and hired again. If true, those were 2 of the jobs. Gee, I wonder if there might be more of those???

Rich,

You obviously don’t grasp how our Government works. It is absolutely NOT 2 jobs. Pay attention here – at no time do the fingers leave the hand:

It’s all about jobs that were “created or saved.â€

We’ll use your example of the Census worker that was hired twice.

1st time hired = 1 job created or saved
2nd time hired = 1 job saved (the original position) + 1 job created (the new position) = 2 jobs created or saved

If the original position was previously held by a different worker it would also count as a saved job.

So you see, the Census worker that was hired twice is most likely 4 jobs created or saved.

Then there is the election factor – to be sure that everybody is accurately counted we will automatically double the results.

So the Census worker that was hired twice is 8 jobs created or saved.

I hope that clears it up for you.

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Originally posted by Bienes Raices:

The employment report today was underwhelming.

413,000 jobs were “created†unfortunately 411,000 of them were temporary Census jobs with 4-8 weeks duration. Can’t wait to see the statistics a couple of months from now.

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Census is mandatory. It is required by Title 13 of the United States Code.

However, you are only required to answer a few of the questions they ask:

1) Verify the address
2) Did anyone live there on April 1st, 2010
3) Is it a primary residence or vaction home
4) How many people lived there on April 1st, 2010

They ask about ten more questions to determine demographic information but that is optional. Any information you do share is confidential and is not released for 72 years.

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