All Forum Posts by: Richard Warren

To determine ARV you need to know what similar houses are actually selling for. What they’re selling for is not what they’re listed for. If you are in an area with a lot of homes and plenty of transactions it’s easier. If not, you may have to work a little harder. One thing you can do is figure out what the typical price per sq. ft. is in your area. This will only give you a ballpark figure, but it’s a start and you can see if something seems to be far out of whack in one direction or the other.

As for repair estimates you need to do some homework. Go to Home Depot, Lowes etc. Get an idea of prices for basic things. How much is carpet per yard? How much are kitchens, countertops, etc. Check the prices for bathroom fixtures. Talk to workers in the various departments and ask them what typical labor rates are. Many of them have some experience in the industry and could be quite helpful.

Do you know any contractors? If not, you should. Many people are quite happy to share their knowledge, so ask.

It’s not a solution but it’s a start. You build your house of knowledge one brick at a time.

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I received this from my accountant in his newsletter. I thought it was worth passing along.

Nine Facts about Mortgage Debt Forgiveness

If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income.

Here are 9 facts the IRS wants you to know about Mortgage Debt Forgiveness.

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.

2. The limit is $1 million for a married person filing a separate return.

3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.

4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.

5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

6. Proceeds of refinanced debt used for other purposes - for example, to pay off credit card debt - do not qualify for the exclusion.

7. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions - such as insolvency - may be applicable. Contact me for more information.

8. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.

9. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

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I’d go with option 1. If you structure the first one well in regards to interest rate, term and LTV, you have the ability to sell it to a note buyer if you want. You could keep the higher interest 2nd, 3rd, etc, for yourself.

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Not sure what companies operate in Colorado but there are several carriers that offer stand-alone umbrella policies though many, like Nationwide, will not. It will be more expensive if they don't have all of your business. Try a Google search and see what pops up.

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First off, this site is a come-on to get you to spend $39.95 for their “plan.â€

What is possible is that someone will attempt to negotiate with the lien holder to buy the lien for pennies on the dollar. This can work with the second or third lien holder if the house is about to go into foreclosure since they stand to receive nothing. The first lien holder might agree to a short sale but that isn’t what they seem to be talking about here.
While people with poor credit may pay a premium to buy a house, they aren’t going to pay several times what it’s really worth.

I would be skeptical to say the least

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I'm with Jon here. My PM has to contact me if he wants to make a change. The only reason for this to even be remotely acceptable is if you are frequently out of touch for some reason and even them there should be an agreed upon price range.

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Couple of big ones:

1- Watch for deferred maintenance - A couple of big ticket items could blow the deal.

2- Verify the rents. It looks like it's $712/ unit. That number may be high depending on where it is located.

Good luck!

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In Nevada, a state which voted overwhelmingly for Obama, it is definitely swinging right.

Harry Reid is toast, a poorly trained monkey could beat him in a landslide. The Republican field consists of 5 candidates (Primary in June) and any one of them would beat Reid by an overwhelming margin according to recent polls.

Dina Titus is a freshman Democrat that narrowly beat the Republican incumbent last time around. Her numbers, though not as abysmal as Reid's, are not good either. She's history as well.

Dean Heller is a Republican congressman who should win reelection pretty easily.

Shelly Berkeley is a Democratic congresswoman who is extremely popular here and should win reelection easily.

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Another point to remember - Greece hid the true extent of its deficit with creative accounting (lies) and the help of Goldman Sachs.

Article: http://www.spiegel.de/international/europe/0,1518,676634,00.html

Of course, that could never happen here........

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With over 15 years as a Certified Financial Planner I felt a need to weigh in here.

Jon is pretty much dead-on with his comments.

I wanted to point out a few things:

Most people will always have a need for some life insurance for their entire life. Even people who have accumulated a significant amount of wealth will have some simply for immediate liquidity needs. An insurance death benefit is paid out almost immediately in most cases. While illiquid investments (such as real estate) can take a significant amount of time to be disposed of and even liquid items like mutual funds, CDs, and even savings accounts can be tied up when it is needed most if ownership issues are in dispute.

That does not mean that someone needs 25x their income for that purpose, but a small amount is usually a good idea.

As Jon pointed out, there are times when a much larger amount is needed. Those needs are generally best covered by term insurance.

Significant Point:

I have seen so many cases where people wanted insurance when they are no longer able to qualify. A classic example is someone who has a heart attack or quadruple bypass. Insurance companies will usually deem this person uninsurable. Someone who develops diabetes, has an accident resulting in permanent injuries, or develops some other chronic condition may also have difficulty qualifying.

So even though an immediate need may not exist it may be wise for some to have some coverage. This is especially true if someone anticipates having a need in the future, such as a family, etc.

When buying term coverage the product should be convertible to a permanent plan. As the name implies, term coverage is only good for a certain period and then expires. If you are still alive at the end of that term but have become uninsurable a convertible policy can be turned into a permanent plan such as Universal or Whole Life. Of course the premium will be higher but you can have insurance if you need it.

Every case is different and you have to evaluate your own needs.

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