All Forum Posts by: Account Closed

Congratulations! It looks like you took the red pill and can see through the guru babble.

There are valid reasons for using an entity or a series of entities but for the average investor just starting out, a good liability policy is all they need. In many cases, it is all they will ever need.

Our line with Amex has not changed. It is still open and accessible and there has been no change in terms. We tapped it for short term money in late November and paid it back a week ago.

There is one big thing I have noticed about Amex over the years. I have been using them since 1989 and they do not like real estate investors who are not diversified. I have seen it happen over and over again. Those with well demonstrated diversification usually do business with Amex over a long period of time on great terms. Those who aren't, well...

That is not to say there is anything wrong with the way anyone who has problems with Amex does business. It is just an observation noting their "ideal customer" profile does not match you and your business operation.

Interestingly, over the last year or so I have noticed other lenders starting to follow the Amex lead in this area.

There are companies and individuals who perform this service. As far as I know there are no licensing requirements but it is imperative you have the training and experience to do it right. The potential liability is very high if you miss something during the process that later surfaces causing the investor/developer to lose money.

Some of the skills you should have are a firm grasp on financial concepts and forensic accounting because sellers lie and they will cook their books too. Great interpersonal skills to continue to dig deeper and deeper until you find the truth in the numbers. Ability to find and identify areas of improvement and analyze the cost/benefit equation of each.

The fees can be great on a large deal, but as I said so is the potential liability.

Jenny lobbying government to do the right thing is like asking an alcoholic to put down their drink.

The only way is to reduce your dependence on debt. The only way is to do business in such a way you are not being forced to carry the load of the dead wood they keep piling on top of the backs of the productive members of society.

The only way is to let the socialist experiment happening right now to collapse under its own weight. It will, it is just a matter of time. A few more 1Trillion+ welfare, uh I mean stimulus packages will just about do the trick.

Chris,

Understanding the basics is always a good thing. I don't tend to get too heated on the licensed vs non-licensed debate. There are pros and cons to each. I have never held a re license and can't imagine a scenario where I would but for others it is different.

Understanding property management and financing will help you. Finding deals to invest in is really much easier than people make it. However, making those deals produce good investment results is a lot more work and requires a lot more knowledge.

It never really was an investment and now everyone is learning that.

When you buy a car, no one ever tried to convince you it would be worth more next year than this one. Everyone understands cars are consumable goods and unless you are talking about classic cars, they are not "investments".

Just having the license won't cut it, the "contractor" would have to be a completely separate entity.

For example, suppose you owned the properties in XYZ Holdings, LLC and you had an established GC of We Do Building Stuff, LLC and they are two completely different businesses (ownership aside) both actively engaged in for profit activities, then We Do Building Stuff, LLC could be hired by XYZ Holdings, LLC to do the repairs.

But, be careful. Insurance companies are very sensitive to things like this and might choose to make sure everything is on the up and up.

Anyone else?

Maybe, it would depend on the language in the contract he signed. What does your lawyer say?

Each year we hire a company to conduct a telephone survey of investors to measure their outlook for the coming year. As I was reading the report on Friday before its release, I wondered how the investors here view the upcoming year.

So, from an investor point of view, do you see 2009 as Better, Worse or the Same as 2008?