February 2009


Sean Wheller




Often I get emails about this Guru and that Guru. I get asked questions and often asked to give my opinion about other peoples systems and so called Gurus.

Here is the deal, everyone wants to know what is good and what they should get involved in, but that said there is a catch to all this and I will explain this right now in the hope of clarifying the questions about all the systems and gurus in real estate and the property investing market.

If you really want to get the best out of this post or clarification you should first come to suspend your thought of “Good” and “Bad” as definition.

I know, for some this may be too much to ask, but if you can do this for the next 5-minutes (which should be short enough to mange) you may understand much more from what you are reading.

Usually, people who ask about Gurus and systems are at the beginning of their property investing journey and the field looks very much like an endless jungle.

Between market articles, real estate agents, property gurus, property systems preached by gurus, and the information available on the internet, one gets easily lost in this jungle.

When lost in the jungle and in “despair” of not knowing who is right and who is wrong, what is right and what is wrong, the risk lies in taking the first path out. In simple words, being tired of it all and traveling the jungle too much without finding the destination, all of the sudden the first path out looks like a good one, even though they may find at the end that it was misleading and hence the definition “fake guru” that leads people astray.

So how does one know if that path is good or not, or have they just taken the path of the so called “Fake Guru”. And here is the truth, which most don’t like to hear, but I like to tell it anyway. I like to tell it for those that want to hear the truth and empower themselves.

If you really want to find your way and empower yourself, read on, but if you like to listen to gurus that have “out of the box” systems, I suggest you stop reading because the rest may just strike a discord with you.

THERE IS NO RIGHT PATH or WRONG PATH, which also means that NO Guru is RIGHT, but it also means that NO Guru is WRONG.

Now, you are back in the jungle and have no path, square zero. And this is the point where you should suspend all the notions and ideas of the right way. From here you will find the right way, I will tell you right now how you can do that.

To better understand what I just said, you must comprehend that this notion of the right way is very misleading. The Gurus go out there sell a system. Don’t get me wrong, that is fine. Then they tell you how it worked for all those wonderful people and then you say to yourself this must work for you because it worked for others, right?

Not exactly. If you know you have exactly the same situation as those people, then maybe that system will work for you, but if you aren’t exactly like those people, nor in their situation, then the chances slim it will work for you because the system may not be in your context. But you want a certain way, right? That is why you bought into the idea the Guru was selling.

The truth is and always was that there are not absolutes. Therefore, some systems may work for some people and some may not for others and some part of a system may work for some other people.

What this means is that there is no RIGHT Guru nor Wrong Guru. To find your way in the jungle you must use, from whatever system, idea, teaching, information you find the elements that work for you. This means that the only way out of the jungle is by creating YOUR OWN PATH.

Yes, that is right, you will need to cut “wood” and chop the proverbial trees to find your way out of the jungle.

Think there is another way? Yes, there is. The alternative is disempowering yourself and giving your power to some Guru and follow his or her way, hoping and praying that the “system”, “idea” or “way” suits your needs. Which brings us to the beginning, tired of finding the way out, and then you just take the first path you see in the jungle, no matter what the outcome. Which brings us to the next really important point.

How do you “cut trees and chop wood” to find your way out of the jungle. That is quite simple. First you get your proverbial “compass” and you find out where you are now. Then you think clearly about where you want to get to. This you do without any other persons influence, concepts or ideas (including Gurus) of what you need; only what you want. This is your moment and this exactly the way it should be.

Some people may feel a bit of discomfort with this idea; they may not like the starting point. But here is the good news. Remember you put yourself in the place you are right now, and if you don’t like the starting place, understand that most likely you put yourself there by following paths that didn’t suit you to begin with, so now you can change all that.

Then you can start collecting data, learning about property, listening to opinions and you start “chopping”. In other words, you use what suits you and you DON’T use what does not suit you, in other words, you chop it away, step-by-step, item-by-item and you include what suits you in the same way.

Yes, you have to be selfish enough to want your own good and selfish enough to stop listening to what other people or Gurus say. You do what is good for you and what suits you.

The next trick is to understand that you will have to learn and you will have to listen to as many ideas as possible to create you own path. Soon you will start to see your path and the light at the end of the jungle, the clear way to reaching your goal.

For some people this means they will only want cash flow positive real estate purchases, for some they will find out they want to trade in real estate, for some it may mean doing many things in real estate investing, but what it means most of all is that you will be doing what suits you at that point in time.

You see, there are many systems and many gurus and heaps of information. Furthermore, you haven’t seen nothing yet, because with the growth of the internet there will be more and then more and then some more. So you better start finding out what you want before you get lost for a life time in this jungle of information.

Once you know your starting point you will have to read things and collect data with a view to use what suits you and “chop away” what does not. In this way, if there is a Fake Guru out there you no longer have to worry about it, because you do what suits you.

You will be able to use parts of systems and maybe sometimes whole systems, while other times you will modify systems to suits you. Above all, you will know what you want, therefore will know if you see something that is of no help to you.

In the process you will see how both Gurus and Fake Gurus help you. Yes Fake Gurus help and they help more than you even know. They help you continuously define and re-define with time what you want and “chop away” what you don’t want by the mere examples which they give and your evaluation of those in your context. This will save enormous time to reaching your financial freedom and every other goal, because you won’t have to take a “path” that doesn’t suit you and pay the “price” in time and money for trial and error.

Once you learn how to collect data, learn to sieve though information to use what suits you all of the sudden you will use all data to your benefit. Even the data which you previously thought was “bad” because it will help you know what you don’t want and move closer to your goals by acting only on ideas and systems that suit you. As opposed to acting on everything in the hope something will work out.

Sometimes you look at a property portfolio and you really ask yourself, why did that person buy a property when they can’t afford it? Then you see someone that has acted on something that did not suit them in the first place, now they are paying the price for not empowering themselves with knowledge to make an educated purchasing decision.

You will see property investment listings in a better light, you will be able to see properties that you would like to research more and those that are not a good match for you.

To do all this, you must know what your starting point is and what your goals are. Then learn about property investing with an open mind, then take what you feel is good for you and “chop” the rest. Above all, remain non-judgmental when you collect data and understand that there are no absolutes in this world, therefore there is no Right and Wrong.

Do not think for one moment that you will not change your plans, you have to, the world evolves, once you reach your first goal, you will need to create a new path to the next goal, and then to the next and so life goes on.

In summary, there are no SYSTEMS that are GOOD as there are no SYSTEMS that are BAD.

By creating your path and using what is good for you, you will empower yourself to reach your own goals, not someone else’s goals, nor those goals of the good examples that the Gurus give. They may be good and it may be good for them, but you will need to evaluate that for yourself. And when you are in doubt, it means you may need more information before you can determine if something suits you.

You will notice that through continuous learning of many other peoples’ paths and evaluation of Gurus systems without judgment you will be able to continuously create good solutions that suit you.

Do not fool yourself for one moment that instant or fast riches exist, (that is what Gurus usually sell). Here is the contradiction: THEY DO, but those riches did not happen in that famous instance that people love bragging about. It took years for people to achieve that instant wealth, they just don’t talk about those past years much. They only talk about the instant moment of glory. This misleads people to thinking that there are instant and fast riches that where created in that moment out of the blue.

Everyone in the world teaches us something, even if that something is identifying what we don’t want or does not suit us, as through their examples we have refined our plan and moved one step closer to our goals which will one day “instantly” create wealth for us through the path that we previously created.



Estate Advisor




Women are working more, earning more and buying more than they ever did. Consequently, they have a significant influence on the American economy in general, and the real estate industry in particular.

The collective buying power of US women accounts for about 85 % of all consumer purchases. When it comes to purchasing patterns, women are estimated to make 94 % of home furnishings decisions, 91 % of new homes purchase decisions, and 89 % of travel decisions.

Women’s earnings have accelerated over the last few years and they have emerged as the Chief Purchasing Officers in their households. According to IRS data, women constitute 39 % of the top wealth holders in the country. This means about 2.5 million women possess a wealth of $4.2 trillion put together. Notably, the IRS estimates that by 2050, 42 % of these women will be single or widowed. The IRS further estimates that more wealth is bound to be accumulated among women.

Another growing trend that emerged in a December 2006 study by the National Association of Realtors (NAR) was that about 22 % of homes purchased between July 2005 and June 2006 were by single women who were in the 25 to 34 age range. Women accounted for a record number of 1.76 million home purchases (1 in every 5 homes), a significant increase from 14 % a decade ago. Women’s growing success in their careers, higher education, financial independence and a desire to build an early nest on their own, are some of the reasons that have spearheaded this home buying trend.

Among the vast demographic spectrum in the real estate industry, women have become a force to reckon with. Real estate agents are increasingly taking note of their female clients and the power they wield in home buying decisions. By the influence that they bring into play in home buying decisions, women form a significant and growing market that simply cannot be ignored.

If you are considering buying a home, condo, or any other real estate, be sure to seek out the services of a local real estate agent to guide you through this complex process.



slider_20012003


I have been seeing allot of John Beck infomercials lately on, how to buy real estate “free and clear” through tax lien certificates. It has caught my attention. How easy is it to buy real estate this way? There is obvously a catch, otherwise everyone would be doing it.

Mommy12345


I am a college student and need to interview a real estate agent for a class. If anyone could please answer these questions in detail I would greatly appreciate it! Thanks

How long have you been involved in the real estate field?

What types of property do you sell?

How many properties do you sell a year?

What is the most awarding part of the job?

What is the most difficult part of the job?

What was one of your most difficult closings and why?

Have you encountered any unethical real estate agent, buyer, or seller? What was the situation? What was the final outcome?

What advise would you give someone who may be contemplating entering the field?

anonymous




No matter where you live, state taxes are a part of life. States use the taxes collected from homeowners to pay for vital community infrastructure. In Florida, the state collects approximately $36 billion per year in general tax revenue, which is used for schools, health care assistance, environmental protection, and numerous other state-funded programs. Taxes on businesses, large corporations and merchandise, rentals and services make up the majority of this revenue, but Florida homeowners also make a significant contribution.

A clear understanding of Florida property taxes is an asset to any Florida home buyer. If you are considering a new home purchase in Florida, knowing the amount of tax you will need to pay, both at closing and on an annual basis, is an integral step in establishing a realistic housing budget. Certain taxes are assessed at the time of closing on your new home, while most annual taxes are deducted from your initial escrow account. An additional tax payment added to your monthly mortgage is used to replenish this escrow account each year.

Taxes due at closing

Whenever real estate is transferred in Florida, either by quit-claim deed, warranty deed, or a written obligation to pay (such as a mortgage) is filed, a Florida document tax must be paid to the County Clerk’s Office if the document is files, and directly to the Florida Department of Revenue if the document is not filed.

The Florida home buyer will be assessed a Florida mortgage tax, which is typically $0.35 per every $100 of the home’s value. A Florida State Mortgage Intangible Tax may also be assessed at an average rate of $0.35 per every $100 of the home’s value. Taxable home value is calculated by using a fair market price estimate.

Ad Valorem (property) taxes

All Florida residents are required to pay an annual Ad Valorem, or property, tax. The amount of tax due each year depends on the taxable value of your home, and on your county of residence. A comprehensive list of property tax rates among Florida counties can be obtained from the Florida Department of Revenue.

Tax exemptions

For many Florida residents, tax exemptions help to lower their annual property tax bills. The primary exemption available in the state of Florida is the Homestead Exemption, but there are many others available. The Widow’s and Widower’s Exemption, The $500 Disability Exemption, and the $5,000 Disability Exemption, to name a few. Tax exempt amounts are deducted from the fair market value of the home.

Homestead Exemption

The largest tax exemption for Florida home owners is the Homestead Exemption. A Homestead Exemption allows you to deduct $25,000 from the fair market value of your Florida home. To qualify, you must be a Florida resident, the home in question must be your primary residence as of January 1st.

Applying for this exemption is relatively simple. First, you must obtain a Homestead Exemption from your local property appraiser’s office. Standard application questions include: Name on property’s recorded title, street address of the property, length of time title holder has been a Florida resident, confirmation that title holder has a Florida license plate and driver’s license, and whether title holder resided at the property address as of January 1st.

Tax exemptions for disabled persons

The state of Florida offers several tax exemptions for those with permanent disabilities. Any Florida resident who is totally and permanently disabled may qualify for at $500 exemption. Residents who are ex-service members and who sustained at least a 10% disability in war or service-connected injury may apply for a $5,000 exemption on any property they own.

If you are an ex-service member who sustained an injury in wartime or service-related activities which let to a total and complete disability, you may be entitled to a complete tax exemption on your primary residence.

Property tax exemptions in the amount of $500 are available to blind persons residing in Florida.

Additional exemptions

Finally, property tax exemptions are available to widowed residents and residents over the age of 65. Florida Residents over the age of 65 who have an annual income of less than $20,000 may be entitled to an additional $25,000 Homestead Exemption.

Any widow or widower who can show permanent Florida residency is entitled to an additional $500 tax exemption. This exemption is revoked upon re-marriage.

For additional information on tax exemptions, qualifications, residency requirements and application forms, Florida residents can contact the county property appraiser, tax collector, or Florida Department of Revenue.



Estate Advisor




On any given day, people can easily find articles and news stories describing an impending bust of the so-called real estate bubble. Despite this gloomy prediction, many experts believe that the recent slowdown in housing will be a gradual and modest readjustment rather than sharp bust or decline. These experts believe that factors that lead to a sharp decline in the real estate market are just not present in the current economic outlook. In fact, a recent study by the Joint Center for Housing Studies at Harvard University noted that “despite the current cool-down, the long-term outlook for housing is bright.”

The rise and fall of the real estate market is subject to the forces of supply and demand, and these factors point to stable and positive growth in the real estate segment.

SUPPLY FACTORS

Limited supply of real estate makes it scarce and usually pushes home prices up. In contrast, an oversupply of real estate tends to put downward pressure on home prices. Despite the current slow down in the real estate market, factors that impact limited supply favor continued growth in the real estate market. Some of these factors include:

1. Builders have readjusted growth plans in regions that have an oversupply of new housing. Over time, any excess inventory is likely to be depleted and equilibrium achieved between supply and demand.

2. The availability of land in certain regions, as well land use regulations and associated compliance costs will continue to restrict the supply of new homes.

DEMAND FACTORS:

Housing located in regions with high demand tend to be more expensive than homes in regions with low demand. Factors that impact the demand for housing suggests a favorable long-term housing outlook. Some of these factors include:

1. No current evidence of significant and across-the-board job losses; forecasts of relatively low unemployment rates.

2. Long-term increased demand for second homes, vacation homes and senior housing by baby boomers.

3. Long-term increased demand for entry-level homes by the children of baby boomers.

4. Long-term increased demand for entry-level homes by immigrants.

5. Long-term increased demand for entry-level homes by second-generation Americans.

6. Forecasts that the outflows and inflows of the U.S. population in and out different regions will not significantly impact the overall U.S. real estate housing market.

7. Relative stability in interest rates.

8. Continued stability in long-term home appreciation rates.

9. Overall, rising rate of wealth across all age groups.

SUMMARY

In summary, strong household growth, overall rising incomes and wealth, and a stable economy all bode well for continued long-term growth in the real estate market. While the overall housing outlook is favorable, affordability will continue to be a challenge, as wages, especially in the lower income levels, have not kept up with housing costs.



Carrie


I cant seem to decide between all the real estate companies. Is there one that somebody would recommend? Shorewest, Century 21, First Weber, etc. ?

Thank you.