All Forum Posts by: Account Closed

Well, it depends on what your locality requires. Some require disclosure even after it has been cleaned up. Some areas require a professional test the mold to see if it is toxic black mold, if it is then professional cleanup is required, if not, DIY is allowed.

Even if it is not required, I would get the mold tested. Your health is not worth what you would save. If it is toxic black mold, don't even think about doing it yourself, it is waaay too dangerous.

In fact, I'd make the current owner have the mold tested prior to closing on escrow.

First, go clear the ice, today. You might want to take pictures before and after. You want to be able to demonstrate you address safety issues as soon as they come to your attention.

Second, show the tenants where the melting salt is kept and demonstrate how to use it properly. Tell them to let you know when the bag is half empty so you can bring another one over and place it in the storage area.

Third, get with your attorney as soon as you can to make him/her aware of the situation.

Fourth, review your lease to make sure the party responsible for clearing the walkways of ice and snow is clearly spelled out.

Fifth, remember, THIS is why you bought insurance.

The good news? Be thankful it was not a guest of your tenant. When you meet with the attorney they can explain why.

It's not just that the 10% penalty doesn't apply, you don't pay taxes on the withdrawals either. Then later in life any unused amounts and any income earned on it is still yours and still tax free.

I encourage you to talk to a local independent agent and look into a Healthcare Savings Account. You buy a policy with a very high deductible with very cheap rates. Then you bank the difference in an IRS approved savings account. The amount contributed each year is tax deductible and it grows tax free. You pull from that when you need to pay for something and you have not met your yearly deductible.

It is a great option. We have a group offering for our employees but I opt out of it to do the HSA.

Exactly, Tom.

And make no mistake the current tinkering the government is doing with loan modifications is not going to solve this problem, just prolong it.

There were some good bargains six months ago, some great ones today and there will be some phenomenal ones in 2009 and into 2010.

This is a great time to be an investor.

Originally posted by Phil *:

Unfortunately, the law gives criminals all the rights ..

I know that is the popular perception but it is not the actual reality.

People have rights by virtue of being people. To take away those rights certain standards must be met and procedures followed.

In the case of the squatter, I suspect Mike's experience is tainted by the areas his properties are in.

We have had squatters in properties in every state we do business in and the police arrested them in every single case.

Make the offer. They may want 80% of FMV but they aren't likely to get it in this market.

Yep, currency trading is another good equity market. I haven't done anything with it but am considering dipping my toe into it in 2009.

Originally posted by Jon Klaus:

Control--you get it in REI, you don't in stocks.

The control is different but it is there. For example, you can't set a stop loss on real estate to limit your losses when the market tanks like it did recently. You can with stocks/ETFs.

In REI, you can add value to the investment with your knowledge, work, and creativity.

In stocks, those things can help you, but they can't add value to the investment itself.

That is true, but you can't reinvest income from your real estate and have more of it without altering your risk position like you can stocks/ETFs.

That is true if you stay local.

I am not arguing they don't have any differences. If they were exactly the same, one would be redundant and have gone away. The fact that they are different is why I am in both. It provides diversification.

In my opinion, you should be in both. I am and have been since the beginning.

Originally posted by REIJourney:

Mostly it has to do with your comfort level, education and tolerance for risk.

Personally - we prefer real estate (obviously) for multiple reasons. We've been burned twice in the market (once during the dot com bubble and another recently). The markets move too quickly - a crash could theoretically happen in minutes. A real estate crash typically takes months or years giving you time to think, strategize and react.

It's true that the stock market historically has more volatility but as many have learned when the real estate market crashes some times you can't get out in time.

What is fundamentally true with any asset market is those who try to time them get burned.

This is a common misconception. Stocks generate an income stream in two ways. First is via dividends. Many companies and all ETFs throw-off cash on a regular basis as dividends. The second and even better source of income is via options. Holding the right stock or ETF and then selling covered calls on them will generate anywhere from 1% to 15% return EACH MONTH. It depends on how vigorously you want to work them.

I don't day trade. I usually sell my covered calls early in the cycle and that's it. Unless something really unusual happens, like a stop loss triggering, I just leave it alone. I am consistently generating 4% to 8% returns each and every month. It works so well, that is where I park capital expense reserve funds for all of the rentals.

All income from your stocks is passive. That is not always true of your real estate holdings. As to the tax advantages, some are better than others. I am amazed at how people think it is a good idea to trade a dollar for a quarter. That is what is happening with many of the tax deductions, not all, but many.

Actually, I think they are both great and encourage everyone to diversify and be in as many asset markets as you can. Real estate and stocks are just two of the asset markets to consider.