Top 5 Reasons Not To Sit On Vacant Land

  1. Tax Benefits.

You can not depreciate undeveloped property. The IRS code only allows for depreciation of the improvements on the property and the contents separately. Depending on the tax bracket you fall into this one advantage could save you a lot of money.

  1. Income.

Vacant land does not generate income unless can you can lease it out to a farmer or for storage or as a parking lot. When you build on the property you now have created a steady revenue stream coming in even when you are not there. Depending on the type of improvement you could even make it a business and write off even more expenses.

  1. Net Worth.

Typically it can take a year or longer to build a home or commercial structure on a piece of land especially when you take into consideration the time it takes to get all the necessary approvals from al the local authorities. By the time you get the project finished and depending on the market you are in the property will be worth a lot more than you owe on it which will greatly increase your net worth.

  1. Resale Potential.

It is usually a lot easier to sell a finished product than it is a vision of what could be. This is why building spec homes has become so popular. People just don’t have the time or the desire to make all the decisions involved with a building project from scratch. This works with commercial properties a swell as community developments and multi family like condos and town homes.

  1. Leverage.

If you own the land outright or have a good bit of equity you can typically borrow 100% of the cost to build from the bank. Once the project is complete you can pull the equity out of the property tax free. This is a great strategy. As the property continues to grow in value you can refinance and cash in. The best part about this strategy is you get to keep the property. You never have to pay any taxes unless you sell and then you do a 1031 exchange at that point and still avoid paying the taxes.…

Top 5 Qualities You Must Have to Make Money Investing in Real Estate

There is no doubt that real estate investing or flipping houses is the fastest and easiest way to make money, build wealth and ultimately become rich for the average person. In fact more people have become millionaires today through real estate investing than any other business. Now this doesn’t mean it happens overnight or that you don’t have to work at it and put forth effort. No matter how easy something is it still requires work and real estate investing and house flipping are no different than any other business with the exception of the lack of physical labor unless you choose to do the work yourself.

So what are the qualities that make a successful real estate investor? There are many but today I am going to focus on the top five.

First is integrity. You absolutely must do what you say you are going to do to be successful in this business. You have to build a solid reputation for people to want to work with you and take you serious and when you are flipping houses you have to work with a lot of different people. It is a team sport and you have to earn peoples trust.

Second thing is discipline. You have to show up every day and take care of business. Eat the bullfrog first as they say. In other words do the things you don’t want to do first. This will give you a strong sense of accomplishment and fire you up for your day. Then get up and do it over again every single day.

Third is desire. The single most important thing you will ever have to do in your life is to figure out what it is you want. Most people think they know but when you match their actions to their words you see the truth. If you truly desire something with all your being you will find a way to make it happen.

Vision is the fourth quality. You need to be able to see the hidden value of a property. What I mean is in your minds eye you need to be able to see the finished product. Once you can visualize it you can put it into a written plan of action for the project. Each project you do should have a written plan and that plan starts with a vision.

The fifth thing is persistence. You are going to have to look at a lot of houses and make a lot of offers and talk to a lot of buyers and sellers before you can make a profit. Sometimes things will line up perfectly and sometimes they won’t. Things don’t always go the way we plan but if you keep at it and never give up you will succeed and through trial and error you will perfect your technique and find what works for you consistently.


Tips On How To Protect Yourself When You Use A Household Moving Company

Regardless of which household moving company you decide to use when relocating from one area to another, accidents can always happen, even with the best movers. So it’s important that you are sufficiently protected in case these kind of accidents occur on your move.

The first thing to know is that most moving companies will prepare a document that shows all of the inventory of items that they have picked up at the origin of the trip. This document will not only list the items that they are moving, but also the condition of each item as well. Quite often there are numbered stickers on each of the stored items that correspond to numbers on the list in order to kep it all straight.

Here is where you want to be sure to take plenty of time to go over this document and verify all of the items that are listed as being taken, and make sure that the condition listed is true. Once you sign this document, it will set the liability parameters for the entire move. The next time you will see this document is at the destination where you will be required to again review all of the items listed and verify that the condition at the end of the move matches that found on the document.

At both the origin and destination you need to take sufficient time to carefully review all items and their condition without feeling rushed or pressured. Any claim that you make in the future with regard to any item that was shipped will be compared against the listed condition found in this document and whether or not you approved that condition at both origin and destination.

If a claim does arise, and it’s not a particular surprise if that happens, what happens next will depend on the kind of coverage that you have chosen for all of your moved items. This is also another area that you want to give particular attention to before the move even takes place. Essentially, most movers offer three basic kinds of item coverage or breakage insurance.

The most basic kind of insurance that is often included for little or no cost by professional movers pays only a certain amount for each pound that an item weighs if it is damaged in transit. For instance, if you have a 100 lb. item that is damaged, and the mover has agreed to pay $.50 per pound per item, then you will be paid $50 for that damaged item regardless of how much it actually cost originally. Obviously, this kind of coverage can often be wanting in certain instances.

The next kind of coverage is called cash value coverage, and it will pay for whatever an item originally cost minus depreciation. So if a damaged item that you have owned for five years originally cost $300, you will be paid the amount to replace that item that is five years old. The most expensive and best coverage is full replacement coverage, which will replace whatever items were damaged with a brand new item instead regardless of cost. Of course, this kind of insurance will cost more, and you will need to decide whether or not it is worth it.

If you then choose the correct insurance on the items you wish to move, and you actively keep an eye on their condition both at origin and destination, you will be in the best position possible to be well protected when you use a professional household moving company.…

Home Equity Line of Credit – What It Is and How It Works by The Let Your Mortgage Make You Rich! Team

A home equity line of credit (HELOC) is like a credit card that uses your home as collateral. It is not a “loan,” per se, and is very different from a “home equity loan.” Since a home is one of the largest assets most people have, many homeowners make use of their home equity credit line for major purchases, such as home improvements, education, medical bills and paying off other debts.

Once you are approved with a home equity line of credit program, you will be assigned a particular credit limit. The majority of lenders determine the credit limit by establishing a percentage of your homes appraised value and subtracting the amount you owe on your current mortgage.

There are also additional factors that will determine the value of your credit limit. The lenders will consider your ability to pay by analyzing your income, other debts, credit history and financial responsibilities.

All HELOCs are established for a fixed period. During this period, such as 5-10 years, you can borrow money so long as it is below your home equity credit limit. When the term ends, you may be able to renew the home equity line of credit. However, some HELOCs do not offer renewals and once the period has ended, you are not eligible to borrow any additional money. Other lenders allow repayment for an agreed fixed period.

Usually, the draw period is set to five to ten years with a repayment period of ten to fifteen years. However, each lender could set its own draw and repayment periods. The most common draw periods are nine years and six months. The most common repayment period is twenty years.

Once you have been approved for a HELOC, you will have the benefit of borrowing up to your limit anytime. To use your HELOC, you are given special checks and a credit card. The checks are “special,” and do not have routing numbers that allow them to be used to pay by telephone or on the Internet. They simply don’t work. But the credit card will. You pay interest only on the amount used, or “borrowed;” whereas on a home equity loan, you must pay interest on the entire loan for the full term or until the loan is paid off. For this reason HELOCs are the product of choice.

Some home equity lines of credit set limitations on the usage of the HELOC. Most home equity lines also have a minimum amount required for writing one of the special checks, such as “$300.” Some HELOCs even oblige you to draw your first advance as soon as the line of credit is set up.


Of course, just like any other investment, there may be costs in establishing and maintaining your home equity line of credit. First, there could be fees for property appraisals to calculate approximately your home value. Second, most lenders require an application fee that generally cannot be refunded if your application is denied. There are ways to avoid these fees.

In addition, you could be assessed closing costs such as title search, attorney fees, title and property insurance, additional taxes, and preparation and filing of mortgages. Once you have received your HELOC, there may also be other fees during the plan period. These may include maintenance or annual membership fees and transaction fees with withdrawals.

Although with all of these fees, you could spend hundreds of dollars, since your home is used as collateral, your annual percentage rate becomes extremely lower than any other type of credit. This interest could allow you to offset all the costs of maintaining and establishing the HELOC. Sometimes, the lenders waive a little or even most of the costs for closing the deal.…