Mike Grinnan CPA
“Your Inside Scoop on ALL of
Your New Taxes in ObamaCare”
31 Page Special Report from Mike Grinnan CPA
Mike Grinnan CPA
“Your Inside Scoop on ALL of
Your New Taxes in ObamaCare”
31 Page Special Report from Mike Grinnan CPA
Raising annual rental license fees was one thing. But when officials in Columbia, Missouri added yet another regulatory requirement, landlords cried foul.
According to a news report, the Columbia City Council proposed a law which will require landlords to complete an “occupancy disclosure” form at leasing, verifying each occupant, and placing it on file with the city.
Landlords expressed concern that not only would this new requirement be onerous, but it would force them to violate their tenants’ privacy by revealing sensitive information.
Over the past two years, landlords across the country have been slammed with a barrage of government regulatory requirements, from non-smoking disclosures in Oregon, to radon disclosures in Maine, to the most recent voter registration requirement in Madison. In 2010, Athens, Georgia adopted an “education form” where landlords are required to apprise tenants of their civic duties, including the rules for littering and the city’s occupancy standards. Landlords are challenging that law in court.
City officials in Columbia say that the intent of their proposed disclosure law is to cut down on overcrowding in rental properties.
For landlords, it’s just one more burden that falls on their shoulders, leaving them vulnerable to fines for failing to police the local laws.
The proposal to increase rental licensing fees – nearly doubling them in some situations — was placed on hold pending a study of the city’s actual costs for a rental inspection program, according to the report.
City officials say they will continue to collect comments on the occupancy disclosure form and forward the public input to the City Council.
Ignorance Of The Law
Is NOT Your Get Out Of Jail Free Card
While working my full time job as an undercover police detective, I had the opportunity to see a lot of things “behind closed doors.” One of the most powerful phrases most investors and Americans do NOT understand is the title of this short article. I can not tell you how many folks, after being arrested for a crime, would say “I did not know that was against the law.”
With the help of media and lenders and our economic market today, the word “real estate” has transformed into an almost bad word. In fact, many consumers are looking for ways to “get back” or get even, or sue the very folks who helped them graduate into homeownership. This means me and you have huge targets on our backs.
Be very careful in today’s real estate market. Always use the proper disclosures and always do things the right way, the professional way.
PROTECT YOURSELF NOW! Remember this powerful phrase.
Here’s some simple no-brainer tips and red flags to avoid as a real estate investor.
Happy Hunting and watch out for these Red Flags of Fraud.
Landlord Training – Tenant Challenges Part VI
This is a on demand preview
NOTE: there are some errors in this article such as:
– you can get Tax Free Profit & Income for Life using SDIRA. This article says all investments are “tax deferred.” ROTH IRA investments are TAX FREE
– the part about taking 3 or 4 weeks with a brokerage firm might be true; however, CamaPlan.com can get you up and running in a day or two, not weeks.
– FALSE “You can not take advantage of your IRA investments until you retire” is FALSE
– Very Misleading & Wrong… 50% has absolutely nothing to do with this statement. “Your spouse, immediate families or companies you have a 50% interest in cannot be involved.“
Here is the article from Fox Business
Difficult economic times have spurred non-traditional methods to save for retirement, and many people are using a self-directed IRA to purchase non-traded assets like real estate.
A self-directed IRA is the lesser known of IRA options and requires account owners to make active investments on behalf of the plan. To open one, an owner must hire a trustree or custodian to hold the IRA assets and be responsible for administering the account and filing required documents with the IRS.
Similar to other IRA accounts, owners can invest in stocks, bonds and mutual funds, but they can also invest in things that investment houses like Charles Schwabb, Fidelity and Vanguard don’t offer, like small businesses, boat slips, storage units, parking lots, land and homes.
Investors may still be leery of investing in the housing market, but real estate investor Scott FladHammer, says real estate can be a good long-term investment and generate higher returns than the stock market.
Investing in real-estate also provides a lot of options. “Owning real estate can be very rewarding, especially for people who are investing in what they know,” says Amy Gates, an independent advisor offering investment for Trust Advisory Group.
But the process of using a self-directed IRA to jump into investing in real estate requires preparation and caution.
“The move can make sense in certain circumstances, but only when the investor fully understands both the positives and negatives and the requirements involved,” cautions Ken Himmler, president of Los Angeles-based wealth management firm Integrated Asset Management.
Interested investors should seek legal advice, as well as input from an accountant and real estate agent for a well-rounded picture. They should also be familiar with the rules for the type of IRA they’re using. Whether it is a Simple IRA, Roth or Traditional IRA, SEP or Solo 401(k), contribution limits still apply, and there are penalties for early withdrawals.
Here are five things to keep in mind when considering investing in real estate through a self-directed IRA.
It takes time. Gates advises devising a timeline based on the account-opening process, transferring or rollover of assets and finding the actual investment.
It normally takes two to three weeks to open an account at a typical brokerage firm, and you’ll need to find a custodian who will hold real estate inside an IRA. The down payment must come from IRA funds, so rollovers may be required.
When a real estate investment is contracted, the IRA account holder reviews and signs the purchase agreement and then the custodian must approve it and release of funds to the title company. All of this takes time, so it’s prudent to learn as much as you can before jumping into a decision.
You cannot take advantage of IRA investments until you retire. You can’t use the fund to pay off your mortgage or live in or use the property you buy as an investment in the self-directed IRA.
“You buy it because it is anticipated to appreciate in value, plain and simple,” Gates says. You also lose the depreciation tax deduction that you would otherwise receive on an investment property.
Your spouse, immediate families or companies you have a 50% interest in cannot be involved. While it is possible for the property to be held as tenants in common, an IRA is an individual account—and you must avoid any conflicts of interest.
Self-dealing or enabling a transaction that is beneficial to you on the other end is strictly prohibited. You also cannot use the IRA as collateral for a loan; it should be treated like other retirement accounts.
It’s a lot of work. “While late-night infomercials highlight the potential benefits, many investors don’t fully appreciate or understand the reporting and administrative requirements involved in using a self-directed IRA to buy real estate,” according to Himmler. For example, the investor should not be doing the work on the property, especially because he can’t get reimbursed.
All expenses, maintenance, taxes and insurance are paid from the IRA. If there are association dues or golf memberships, those all must be withdrawn from the IRA. Finding tenants and contractors may take time, and every penny in and out must be approved by the custodian. FladHammer recommends having a reputable property management company in place to navigate the day-to-day duties.
All income from the property is tax deferred. That includes rental income and capital gains, Gates says. If you plan to be in a lower tax bracket at retirement, this is quite beneficial. You can also make tax deductible contributions to the IRA.
article from Fox Business
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The New One Cut Wonder!
Your Brand New Money Maker and Extra Income for Landlords and Property Managers
Brand Spanking New for both Me & You!
After having recently wrapped up my complete business makeover for my real estate business, including property management side, once again a another simple money maker has been implemented.
Last month while reviewing all of the monthly statements and our monthly resident newsletter, Beth and Shirley made the comment about how challenging it is for new residents to enroll in our Elite Lawn Service Program. This monthly fee is built into their rent. It includes professional lawn care service, leaf removal, and gutter cleaning.
Because we live in Louisville, Kentucky and have four seasons every year, some new residents would grumble and complain that the grass does not grow all year long.
Not so fast Scooter!
In addition to the lawn service, they get their gutters cleaned every year and they get twice a year leaf removal. Either way, this did not take off like I had hoped for.
During this meeting reviewing the resident newsletter, Beth and Shirley both mentioned many residents would like to sign up for Click Here for Full Video/Article (Members Only)
Yesterday, I had an early dinner (4:15pm) at the August Moon upscale chinese restaurant, but first…
(you can reserve your slot for Thurs, 9pm eastern to see the entire Chinese Dinner Napkin Blueprint revealed)
Ok, here is what happened, blow by blow.
Beth and I were the only customers dining t this time… and then somebody screamed my name across the room. ( at first, I thought it was one of the dirtbags I sent to prison years ago)
Actually it was one of their managers who was super excited to see me! He had been to one of my LIVE investor training events and he got me cornered to ask me questions about the real estate investing business.
His excitement was contagious.
He got me fired up too and my wok-seared salmon with snow peas was ignored..
In a few short minutes, he told me his life’s story and the bottom line was this…
He was foaming at the mouth to get started in real estate, but said he could not until he gets his credit repaired.
My mind EXPLODED!!!!
I proceeded to tell him you do not need good credit to buy real estate.
Then he said, “I do not have cash either”
This guy gave me a HUGE revelation.
This guy is hungry, he is FIRED Up, and wants
to do good for himself, his wife, and his kids…
but, somewhere, somehow, he got hooked into
honestly believing he can not be an investor until these are fixed.
So he sat down and Beth ate her melt-in-your-mouth
mahi-mahi dish while watching this exciting moment happen.
Get this, I asked him for a “To Go” paper napkin (they had linen napkins)
and i proceeded to scribble down a battle plan for his success with, what he thought, his unique situation…
His face started glowing and you could see from his facial expressions, his body language, that his low self esteem had transformed into a feeling of euphoria!
Then Beth asked me this morning… after showing me this napkin she saved, “Mike, why don’t you do a special webinar on your Chinese Dinner Paper Napkin Blueprint for Buying without Money, Banks, Credit, or Private Lenders?”
I told her I am just too busy right now (sound familiar?) Then she said, “Guess What? So is Everybody Else! This is what you solved on your Chinese napkin.. Look here.” She jerked my chain, and now I am writing you this email.
If this sounds like it might be up your alley… mark your calendar now and join me Thursday evening, tonite.
Reserve Your Slot Now for
“Mike’s Chinese Dinner Napkin Blueprint to Buy Real Estate without Money, Banks, Credit or Private Lenders”
(copy and paste in browser)
DATE: Thursday, May 31
TIME: 9pm eastern
(8 central, 7 mountain, 6 pacific)
LOCATION: Online Webinar and Teleseminar
COST: Zero, Nad-dah, Zilcho!
I was pretty impressed myself with this one.
Make sure you join me for this one I promise, you too, will feel exactly like the August Moon manager.
See you on this new webinar
To Your Continued $uccess!
25 min GOLD Member Training session with Melissa in North Carolina
Do You have a question or two?
Call Melissa at 502.252.1834
Ignorance of the Law is not Your Get Out of Jail Free Card!
An Everett, Washington landlord has been ordered to pay a $21,800 fine after failing to include a lead disclosure in his lease.
The landlord, who manages 26 units located in Bellingham, Washington, repeatedly leased properties to tenants over the course of several years without including the federally-mandated lead disclosures. The EPA brought the charges against him.
“People have the right to know about lead hazards prior to renting or buying a place to live,” said Rick Albright, Director of EPA’s Office of Air, Waste and Toxics in Seattle. “Sellers, landlords and property managers who do not properly notify the people who will live in these homes can face stiff penalties.”
The Disclosure Rule requires landlords, property management companies, real estate agencies, and sellers to inform potential lessees and purchasers of the presence of lead-based paint and lead-based paint hazards in pre-1978 housing. They must also provide the purchaser or lessee with a copy of the Lead Hazard Information Pamphlet, “Protect Your Family from Lead in Your Home” before entering into any lease or sales agreement, and keep records showing they have met the federal requirements.
The Federal government has recently changed its guidelines on refinancing.
Homeowners who are “underwater” in regards to value in their homes can now also take advantage some of the lowest rates in 60 years, regardless of your appraised value or loan amount.
The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for the FHA’s streamline refinance program, after June 11, 2012.
Since the financial crisis of 2008, more than 750,000 borrowers have refinanced their mortgages through FHA’s streamline program, according to data from the Department of Housing and Urban Development. More than half of those refinances took place in 2009 after the housing and mortgage markets collapsed.
But rising mortgage insurance premiums on FHA loans have become an obstacle for many homeowners who want to refinance. Depending on the size of the loan, the fees can eat up much of what the borrower would save through the refinance. FHA asserts that lowering the MIP rates for streamline refinances will not incur taxpayer expenses or jeopardize its mutual mortgage insurance fund.
In this streamline program, the FHA asks for limited documentation from borrowers and doesn’t require an appraisal of the home. The no-appraisal rule allows owners to refinance even if they owe more on their mortgages than their houses are worth.
The lower fees go into effect June 11 and will be available to borrowers who refinance loans that were endorsed by the FHA before June 2009. FHA estimates that there are approximately 3.4 million households with qualifying FHA mortgage loans with mortgage rates over 5 percent.
The average household could save about $250 per month or $3000 annually using streamline refinancing.
Acting FHA commissioner Carol Galante remarked that lowering the insurance premium rates for streamlining FHA mortgages “is one way that FHA can help homeowners who are doing the right thing, paying their bills on time and who want to take advantage of today’s low interest rates.”
The program is providing an inexpensive method of refinancing, which can prevent foreclosures and provide homeowners with additional cash for paying bills and meeting essential household expenses.
The FHA Streamline Refinance is a unique mortgage product, available to homeowners with existing FHA home loans only. The program was built to be the fastest, simplest way for an FHA-insured homeowners to refinance their respective mortgages. The FHA Streamline Refinance’s big attraction is the leniency of its underwriting standards.
But In Order to Qualify, You Must Meet This Criteria…
Your current FHA mortgage must have been assigned before May, 2009
You must be current on your mortgage and not been late over the last 12 months consecutive.
If you meet these two criteria, you may be FHA Streamline-eligible and below are a few other items to consider,
If you had a bankruptcy, you are most likely eligible, but please call expert Loan officers and other mortgage professionals for more information about your particular situation.
There are many options available, including a “no-closing cost” option where you won’t have to come out of pocket for the refinance.
And remember: you may “not” need an appraisal to qualify.
The Federal Housing Administration will reduce mortgage fees significantly for borrowers who qualify for the FHA’s streamline refinance program. Again, the lower fees go into effect June 11 and will be available to borrowers who refinance loans that were endorsed by the FHA before June 2009.
The new, lower fees will make streamline refinances much more feasible to borrowers, as some estimates when the new fees take effect will be, a borrower refinancing $200,000 will pay $20 — instead of $3,500 — in upfront mortgage insurance. The borrower also will pay about $92 — instead of $208 — per month for annual mortgage insurance.
That’s because the FHA reduced the upfront mortgage insurance premium for eligible homeowners to 0.01 percent of the total loan and the annual premium to 0.55 percent of the loan.
In comparison the borrowers who are “not eligible” for the reduced fees under the streamline program, the cost of upfront mortgage insurance is 1.75 percent of the total loan and 1.25 percent of the loan per year.
Loan officers and other mortgage professionals say they have lists of clients who are waiting to refinance in June with the lower fees which could create a mini-refinance boom in June after the fees are reduced.
Remember that “No appraisal required”, except some lenders have overlays, if you are going from a 30-year to a (15-year mortgage) and your payment is not decreasing, or if you are removing one person off the title,” you’ll need an appraisal
As long as your mortgage payments decrease by at least 5 percent with the refinance, the lender does not have to order an appraisal of your home.
These guidelines are to help homeowners who are upside down on their mortgages.
Generally, lenders want a FICO score of 640 or higher for streamline refinances, Some lenders are willing to accept 620 and a few will go lower than that, but they usually charge higher rates on loans with lower scores.The FHA does not require a minimum credit score for streamline refinances, but the lender that is refinancing your mortgage will likely have its own requirements, as an additional “overlay”
With the streamline program, the FHA allows borrowers to refinance without having to show proof of employment and income. Although some states have laws that require lenders to verify borrowers’ income on all mortgages regardless of what the federal program allows. And in some cases you will likely be asked to present documentation that shows you can afford the mortgage payments.
In the last few years Lenders have been reluctant to underwrite mortgages without asking for full documentation and minimum credit scores, especially when many of the mortgages they are being asked to refinance have lower values and are underwater.
So these new guidlines should encourage lenders to embrace streamline refinances, since the government has changed the way it evaluates lenders’ FHA loan portfolios. The FHA has a scoring system based on the performance of each lender’s FHA loans. If a particular lender has too many delinquent loans compared to other lenders, the FHA may stop doing business with that lender.
Historically, the FHA Streamline Refinance has been an excellent program with lots of success stories and it remains the fastest, easiest refinance loan program in the country.
The FHA will start accepting these new streamline loans after June 11, 2012 but borrowers can begin the application process now in anticipation of the new program.
Everyone needs to be sure to find the ethical honest “Real Estate Industry Professionals” willing to assist the “American Homeowners” who are “underwater” in regards to value in their home, be sure to educate yourself, and beware of the mortgage fraudsters. Mortgage fraud is a material misstatement, misrepresentation, or omission relied on by an underwriter or lender to refinance, fund, purchase, or insure a loan.
If you have questions or need to know if you are dealing with a ethical or reputable lender, send an e-mail and I will attempt to assist you in the order the e-mails are received.
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