High Cost for 2010 A/C refrigerant standards November 2, 2009
Posted by briankondas in Uncategorized.Tags: AC refrigerant standards, Lou Greco, R-22
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Brian Kondas here with property management expert Lou Greco – you need to know about the new A/C refrigerant standards in 2010.
R-22 and you
One thing to keep an eye on is the new refrigerant standards that take place in 2010. The current refrigerant R-22 is being replaced by 410 – A.
The new refrigerant will not work in the current condensing units (the outside part of a central air system) and it really won’t work with the existing air handlers (the inside part of a central air system) either, unless they replace coils, rx-flush the system etc.
Even the lines between them are incompatible! The new system requires 7/8” lines on the vapor side while most existing systems have ¾” lines. If you have less than 30’ of line you are probably ok, the old lines will work but with reduced efficiency. If you get into 40 -45 feet of line it probably won’t work at all.
Lou, Lou, why are you filling my head with this drivel? Because it could cost you a lot of money!!
The R-22 refrigerant will be available for some time (any guess what is going to happen to the price?) but if you have to replace equipment you could be in trouble. So, it makes a lot of sense to get your AC man (a good one) to take a look at your existing systems. If condensing units are on their last legs, it might make sense to buy one now. I don’t usually preach to replace stuff needlessly (heck I see no reason you can’t patch a roof indefinitely!) but if you have to replace equipment next year you could have to replace the entire system!
This is a case where an ounce of prevention might save you a pound of care. You can call Lou Greco at 813-610-0420 or email grecorealty@mindspring.com
Brian Kondas
Know Any Good HVAC Guys? November 2, 2009
Posted by briankondas in Uncategorized.1 comment so far
Brian Kondas here and I have a rental house in Northwest Tampa and the thermostat is set to Cool, but only hot air comes out. The compressor is working – hot air blowing out and cool pipe going into house. I think the heat strips got turned on when the tenant switched it to Heat a couple weeks ago when it was cold outside and the heat strips stayed on. Do you know any good HVAC guys that service Hillsborough County especially Northwest Tampa? Please reply with their name and phone number.
Leon’s Insider Secrets of Property Appraisals October 29, 2009
Posted by briankondas in Uncategorized.Tags: after repair value appraisal, FHA loans, HVCC, property appraisals
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Brian Kondas here with Florida State Licensed Appraiser Leon Stefanovich at Mimi’s Café on Oct. 28th, 2009. You will discover insider secrets of property appraisals.
What is an Appraisal?
It’s someone’s opinion of value. In today’s declining market, a property appraisal is only valid for 4 months.
Why does the appraiser ask to see the purchase & sales contract?
It’s not to look at the price. It’s to look at any concessions or personal property included in the sale. An appraiser must deduct for the value of personal property or concessions from the buyer’s loan amount. If you are the seller and want highest appraised value, then one insider secret is not to mention personal property in the contract and put it on a separate Bill of Sale. Also if there are some seller concessions for closing costs or other credits to the buyer put them on addendum and not in the contract.
New Law HVCC – Home Valuation Code of Conduct applies only to Single Family residences. Management Company put appraisers on a list. The company draws appraisers at random from this list. The law says the appraisal value can not be disclosed to the Mortgage Company, realtor, or seller, but can be disclosed to the buyer.
How old is the roof?
Appraisers or Buyers may ask the homeowner this question. Let’s say the homeowner says, “2 years old.” You or the appraiser can verify when the roof was put on by looking up the permit with the city – a good insider secret.
FHA loans: October 1st 2009 all FHA appraisers must be State certified. January 1st, 2010 new guidelines such as all FHA appraisers must be on the roster of approved FHA appraisers. This list is available online. If the sale price is double the purchase price and sale is within 6 months of the purchase, FHA may require two appraisals.
How to get a higher after repair value (ARV) appraisal?
Here are the insider secrets to a higher ARV appraisal: When you pay for repairs, make copies of all receipts and paid invoices. Meet the appraiser at the house and bring copies of this proof of repair cost you can even add up all these paid costs. Then give the appraiser a list the highest sold comparables in the last 12 months include the addresses, square footage, year built, property type (one story), date sold, and price sold. Some appraisers miss the high comps – don’t let them miss them on your appraisal.
What criteria for comparable sales does Leon use?
- House square footage +/- 300 Sq.Ft.
- Year Built +/- 10 years
- Same Type (one story house is not comparable with two story houses)
You can contact Leon at 727-856-2272 or email lrs@gte.net
Brian Kondas
Asset Protection Expert Tim Mockler October 27, 2009
Posted by briankondas in Uncategorized.Tags: asset protection, Land Trusts, LLCs, Tim Mockler
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Brian Kondas here with Asset Protection expert Tim Mockler.
Do you have assets to protect?
Tampa investor Tim Mockler shared his insider secrets on asset protection at the advanced SREIA meeting on Wednesday, September 09, 2009 at Sam Seltzer restaurant. This email was revised and edited by Asset Protection expert Tim Mockler.
Here are some important points regarding asset protection.
What is an asset? Anything owned with value.
What is personal charging order (as defined for instruction purposes)?
It’s when you are being sued personally.
What is asset charging order?
It’s when a lawsuit originates from an asset related liability resulting in a judgment against its owner.
When you own an asset directly in your personal name you have no asset protection.
Land Trust:
A Land Trust places title in a trust, therefore putting the name of the trust in the public record and not the owners. If you lose a law suit, they will find your assets. The Trustee will be deposed and must disclose who is the beneficiary of the trust. In a Land Trust the title ownership goes with the Trust and the beneficial interest of the Trust goes to “you” the beneficiary. A benefit of the Land Trust is it removes your name from public records. The Land Trust does not protect you from liability.
Single owner LLC:
If you own multiple assets in a single owner LLC, a personal charging order puts you at risk for multiple losses. Although the single owner LLC protects the owner/member from asset charging order if the suit stems from an asset related incident.
Multi-owner LLC:
Partnership law which originated in England makes it unfair and unlawful for a partner to be hurt because of the debts of another partner. A Personal charging order can not enter the multi-member LLC and take asset. It also protects from asset charging order the same as single owner LLC, the members, managers and managing members are liable for the debts of the LLC. Your personal bank account is safe from asset related lawsuits. Please note, that if you have multiple assets in a multi-member LLC an asset related charging order could seize all the assets in the LLC.
Tim’s Asset Protection Structure:
Each asset is owned by a single owner LLC which is in turn owned by the multi-owner LLC. If the asset is real estate owned by Land Trust, the beneficial interest of the Trust goes to the single owner LLC which is owned by the Multi-owner LLC.
Results of Using Tim’s Asset Protection Structure:
If you lose a law suit and they get a charging order against your LLC, they are entitled to only the funds removed from the organization as dividends, but are not given any management, control or ownership of the LLC. But, they do get the Federal Tax liability. The beneficiary of a charging order against an LLC gets a K1 proportional to the percent ownership. This usually means he pays tax on income he never receives.
The single owner LLC files no tax return. It is considered a non-entity by the IRS Each single owner LLC is listed as subsidiaries on a Form 851 with the tax return filed by the Multi-owner LLC.
Insider Secret You Need to Know:
You do not have to disclose your assets until after you lose a law suit. When an attorney asks you about your assets before you have lost a lawsuit, refuse to answer and nicely tell them “It’s none of their business.”
Tim recommends you use a local (Florida) Multi-owner LLC (this the one that files a tax return) and set up Single owner LLCs in New Mexico (they are cheep there and don’t require an annual filing). In New Mexico the State fee is only $50 one time. You will need a registered agent. NM ASSETS SERVICES, LLC can act as your New Mexico registered agent for an annual fee of only $50 and Tim can help you set up your New Mexico LLC for only $50. For more information call Tim at 727-485-4061 or visit his website http://www.nmassetservices.com
Brian Kondas with Asset Protection expert Tim Mockler
Loan Modification expert Sonny Collova October 27, 2009
Posted by briankondas in Uncategorized.Tags: Loan Modification, Sonny Collova
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Brian Kondas here with Loan Modification expert Sonny Collova at North Tampa TBREIA subgroup at Mimi’s Café on Wednesday Oct. 21st, 2009. Sonny has had great success with loan modifications. You will learn how loan modifications can be your back door to other real estate opportunities, how to quickly qualify leads, insider secrets of loan modification, and access to Sonny’s loan modification Do It Yourself Kit.
Who is Sonny Collova?
Sonny is the son of Chuck Collova and partner of C & C Financial Services, Inc. a local mortgage company and long-time vendor at SREIA in Tampa, FL. Sonny has 16 years of mortgage and real estate experience.
What is a loan modification?
It’s a “permanent change to the existing loan. And it’s often for a term of 5 years or the entire term of the loan.” It’s easy to get loan modification approved when the mortgage is in default and it can be years in default and you can still do loan modification.
How can loan modifications be your back door to other real estate opportunities?
You can follow up with the clients you refer for loan modification. The federal statistics say, “50% of all loan modifications end up in default within 12 months.” This means if you stay in contact with all your clients, half of them will default. When they do you can buy, option, or lease option their houses before anyone else because you already have a relationship with them. You have to continually remind them what you do so when the time comes they call you first. One easy way to do this is by sending emails out automatically every 30 days. Click here to discover how iContact autoresponder can help you.
How can you do loan modification if the mortgage is current?
Homeowner must prove hardship in the next 6 months. If borrower will be broke in 6 months, then they will get loan modification. If they have retirement funds available, they won’t be approved.
Insider Secrets:
- Sonny makes the lender a proposal on what the payments should be.
- The new payment always includes principle, interest, taxes, and insurance. So if the old payment only included principle and interest (PI), then a good negotiator would argue how $1200 PI payment does not include the $350 taxes and insurance. This is why the borrower needs loan modification.
- Attorneys must have mortgage broker’s license after January 2010 if their primary business is loan modification.
How do you qualify a loan modification?
The new payment will be 31% of the borrower’s gross income (income before taxes). For example, if the borrower’s gross income is $10,000 then the new payment will be about $3,100. So if the borrower’s existing payment is less than $3,100 then it’s no deal.
Know anyone who might benefit from loan modification?
Anyone whose mortgage payment includes only principle and interest could benefit from loan modification because their new payment would include taxes and insurance and not be more than 31% of their gross income. Click here for Sonny’s Loan Modification Do It Yourself Kit.
For more information call Sonny Collova at 813-421-2663.
Brian Kondas
Sheryl Nicholson: Networking and Tools for Life October 27, 2009
Posted by briankondas in Uncategorized.Tags: Communication, Networking, Sheryl Nicholson, Tools for Life
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Brian Kondas here with Sheryl Nicholson at TBREIA general meeting on 9/3/09. Sheryl Nicholson spoke about Communication, Networking, and Tools for Life.
How do you ask for someone’s name?
You offer your name first. For example, “Hi, my name’s and you are?”
I use this approach whenever I meet someone new. For example, when a seller call on my postcard about selling their house, I say, “My name’s Brian, what’s your name?”
How do you increase your likeability factor?
Remember people’s name. Sheryl uses the following strategy:
- Say the person’s name out loud. This helps you remember how to pronounce it. For example, “Nice to meet you Brian.”
- Then say it three times under your breath: Brian, Brian, Brian.
- Then ask, “How do you spell that?” For example, Brian could be spelled Bryan. You don’t want to misspell someone’s name especially when you write them a message. Isn’t that right Brian.
- You can finally “paint pictures with the name.” Sheryl tells a story to help people remember her name: “I’m Sheryl. My son flips nickels. I’m Sheryl Nicholson.” You can help other people remember your name by telling your story. Make sure your story is G rated not X rated. Make it appropriate for all audiences.
Here’s my story to help you remember my name:
I’m Brian, blue eyed Brian spelled with an eye… (Pointing to my eye and smiling – pausing for laughter) and I wear Contacts. I’m Brian Kondas.
What’s your story?
This is the reader participation part of the email. Make your story easy to visualize, use words that sound like your name and include action if possible. Whatever your story make sure it truly represents who you are. In my story, it’s true my eyes are blue and I do wear contacts. It’s time for you to tell your story for people to remember your name. Your story must be unique for it to be memorable.
Sheryl Nicholson says, “If you are unique you have no competition.”
How do you acquire someone’s business card?
The easiest way to get a business card from someone is to first you give them your business card. Then you ask for their business card. Of course, there’s no need to collect business cards unless you have good reason. Don’t waste time collecting stacks of cards if you’re not going to do anything with them.
My reason for collecting business cards is to share information with real estate friends like you.
Sheryl offers some Tools for Life:
- Organize your cards using 3-ring binder with plastic sheets to hold business cards. You can also divide them into categories. I do this.
- Use Internet resource to stay in contact with people. Sheryl recommends sharing a series of informational articles using Autoresponders. I use the same resource she recommends and so can you. http://www.icontact.com/a.pl/505334
- Find a cheerleader and call them. Someone positive who can help you in the real estate business. [fname], can I call you?
- Stay one extra day after your seminar. Use this time to reread and rewrite your notes. Your wise peers will do the same which will give you time to consult with them after the seminar.
- Condense all your seminar notes on a single sheet of colored paper. List a number of action items on this paper and tape it to your door. Date the paper and check off each item as you complete them. When you finish the sheet reward yourself.
You can contact Sheryl Nicholson 727-729-4937 or email Sheryl@sherly.com or visit www.sherly.com
Brian Kondas
Larry Harbolt on Seller Financing and Negotiations October 27, 2009
Posted by briankondas in Uncategorized.Tags: Negotiation Secrets, Seller Financing
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Brian Kondas here with Larry Harbolt the expert on Seller Financing and Negotiations. You will be amazed by Larry’s insider secrets:
Financial Freedom –what’s in it for you? Where would you be if you had all the money you want? Go ahead and write down your answer.
Seller Financing:
- Marketing is the key to finding deals.
- Analyzing the deal: creating great deals where no deal seemed to exist. Do you know how? I will show you an example.
- Buy High and Sell Low – seem like no deal, but wait you can make a profit doing just this… Buy at $150K and 6% interest, Sell at $140K and 8% interest. How much is your profit? $250/month positive cash flow. And you thought it was impossible, right?
- How do you approach a seller? Your attitude is very important. Larry says to talk to them “like a family member” and “pretend in your mind they are your family member.” Now I hope you treat your family members kindly and with respect.
- Structure the deal for maximum profit. Let me give you an example.
- You inherit $100K and there’s a house for sale for $100K. What should you do? You could buy one house, but would you be maximizing your profit? No. How could you maximize $100K? Larry suggests you purchase 10 houses with $10K down on each. Now this is called leverage. Didn’t you just multiply your profit ten times? How’s that for maximizing your profit.
- Keep the house or flip the house. Larry says, “You are the secret to your success.” Do you know which houses to hold it and which to sell?
Negotiation Secrets:
- You must “get either price or terms.” There are 19,000 listed properties on MLS (Multiple Listing Service). Larry says, “Don’t waste time on non-deals.”
- Write your offer on yellow sheet of paper. Have the seller and buyer sign it.
- When the seller thinks they are lending you money, tell the sellers, “You’re not lending me money. I’m buying your equity in monthly installments.”
- Does the seller have an existing mortgage payment? Here’s a great question to ask the seller, “Would you rather get a check each month or write a check?”
- Always leave on good terms. You may come back later to buy when they’re ready.
Where are the best seller financing deals?
- Hardmoney Lenders have become owners of houses. You can send letters to these individuals.
- Free & Clear Houses – 40% of nation have free and clear houses. You can get this list and send postcards.
- You create the deals as Larry says, “You are the secret to your success.”
Larry Harbolt hosts Monday night Real Estate meetings at 7pm at Piccadilly Restaurant (1900 34th Street North in St. Petersburg). For more information visit Larry’s website at http://www.larryharboltrei.com or email LarryHarbolt@gmail.com or call Larry at (727) 420-4810. Larry provides training through seminars and courses.
Brian Kondas
Robyn Thompson Selling Houses in Down Market October 27, 2009
Posted by briankondas in Uncategorized.Tags: Queen of Rehab, Robyn Thompson, Selling Houses in a Down Market
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9 Types of Homes You Never Buy
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Maximum Allowable Offer (MAO) in a unstable “declining” market
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How to determine the After Repair Value (ARV)
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What to expect from mature grown up contractors
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11 Wow’s to make your house the best in the neighborhood
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#1 Selling Strategy
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Marketing to Sell
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Qualifying Your Buyer
Probate Expert Arcado Diaz October 27, 2009
Posted by briankondas in Uncategorized.Tags: Arcado Diaz, Probate Investing
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Brian Kondas here with Arcado Diaz who spoke at the North Tampa TBREIA subgroup meeting on August 12, 2009. Arcado gave some insider secrets about probate investing. Before he spoke I Chris from the Dream Factory shared an real estate educational resource that pack full of free downloadable videos at www.askrealtalk.com
Acardo’s the man for probate investing. In fact, Donald Trump is putting his label on Acardo’s probate informational product. Acardo moved to Florida in 2003 and lives in Wesley Chapel. He’s been in real estate since 1994 was in the Airforce, was a portfolio manger, and sold $18 million information productions. He is partner of Eric Stevens.
Here’s what Acardo said, “The biggest winner is the best marketer.”
“Probate is the liquidation of assets to pay creditors.” Which occurs at death when assets are not contained within a trust – whatever assets are not contained in trust go into probate. After probate and the payment to all creditors, the reminder goes to heirs.
“There’s big opportunity in probate because of the Baby Boomers. They are the largest generation – the largest group of people and many are 62 years old. This is a big funnel of leads. $10 trillion in assets will change hands.”
“There are 3 paydays in probate: (1) Real Estate, (2) Personal Property, and (3) Cash Advances to heirs” – visit www.inheritancefunding.com for more info
If you buy the property, you can ask for all the personal property. Sell it yourself on the Internet, hire an auctioneer, or have an estate sale. You could make an extra $1,000.
Documents:
- Petition of probate
- Name of personal representative “PR” is “Executor” if will or “Administrator” if no will
- Name of decedent (dead person)
- Name of attorney
- Order of probate –Is the petitioner the personal representative? In most cases it is.
- Letters of Testamentary – defined by www.investorwords.com as documents issued by the court of proper jurisdiction indicating what person, bank, or organization has been appointed as executor or administrator of an estate.
“They can not sell without the Letters of Testamentary. Insider Secret #1: You can get a contract before Letters of Testamentary are issued by including the following clause in your agreement, ‘Subject to letters of testamentary naming the executor or administrator to be issued.’ If the seller has any questions regarding this clause refer them to their probate attorney.”
Where to find Estate Deals?
- Out of State personal representatives
- Rental properties – tenant problems
- Title in name of Trust – ask what’s in the Trust?
- Rehabs – property that needs work
- Contents left to charity
- Ancillary Probate – property outside the state where the decedent was registered to vote
How to be the FIRST to find a Probate Deal?
Not in the legal newspaper – you will be 3-4 weeks behind.
Insider Secret #2: Probate case #s are serial – for example, Case#1245, 1246, 1247… The secret is to keep requesting the next case number until you find the last one. You can do this at the clerks office or online. Then you find the decedent’s name, personal representative “PR”. Then you search the decedent’s name at the appraiser website to see if they owned property. Then you call the PR search their name at www.zabasearch.com to get phone number. Then do your normal marketing: series of postcard or letters to the PR.
Arcadio did offer a real estate course on probate investing for $1497 but it’s currently SOLD OUT. If you’d like to get on his list to be notified of special pricing and when it will be available again, visit www.buildingwealthwithprobates.com and enter your name and email address and click submit.
Do you have a question? You can call Arcadio Diaz at 813-731-1098 or email arcadodiaz@aol.com
Brian Kondas
Peter Fortunato and Creative Real Estate October 27, 2009
Posted by briankondas in Uncategorized.Tags: Creative Real Estate, Door Knocking, Jack Griffin, Peter Fortunato
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Brian Kondas here with Peter Fortunato “Creative Real Estate Genius” who spoke on win/win deals and creative real estate transactions at SERIA general meeting at the Double Tree Hotel on Tuesday, October 6th, 2009. Before Peter spoke the wisest investor I know Jack Griffin spoke to and gave us “A Winner’s Creed” You are welcome to download this one page document of wisdom.
Jack Griffin:
What is POOR? Passing On Opportunity Repeatedly. Here’s a quote from John Wooden, “Don’t let the things you can’t get in the way of the things you can do.”Jack says, “Every house that must sell will be sold.” And it’s not about facts. It’s about feelings. Jack is talking about effective communication. Feelings are stronger than facts.
Peter Fortunato:
The deal must be win/win for the seller and buyer. “Find out what’s in it for the seller” It’s not about money. “Value is subjective.” For example, Peter talked about deals he did involving trading a computer for a lot (vacant land), trading a truck for a free & clear house. Peter talks about finding out “what’s making the seller uncomfortable.” This is also called “hot buttons” the non-financial reasons why a seller is selling. Seller could not afford payment on his $250K house so Peter gave the seller $10K down for an option to buy the $250K house. The seller used the $10K to put down on a $70K house with payments he could afford. Everyone wins.
Peter tells about setting goals and sharing them with others and asking for help. You “knock on doors to make friends.” You “don’t want to be another solicitor.” You ask, “How long have you lived here?” You listen to them. You leave with “If you find a house for sale, will you please call me?” Then you look them in the eye and wait for their answer. You are enlisting their help. When they say, “Yes,” you write down your name and phone number on a sheet of paper with the message “looking to buy a house.”
Peter says always ask, “Why are you selling?” to find uncomfortable reason for selling. The seller has a new house in Clearwater, FL. You say, “Tell me about your new house in Clearwater.” This is the “hot button” reasons for the seller to sell. You keep pressing these buttons in your negotiation.
Peter says be clear about your goals. Peter buys a house at a payment his tenant can afford and the owner can afford. It’s win/win.
Peter says, “Every deal you make is a future you create.” Peter is from Boston. He advises if you buy real estate outside your state, then it’s best to partner up with real estate pros. Peter did deals out of state with John Schuab, Jack Miller, and Denis Koelsch. Pete says he wasn’t investing in Florida he was investing in Jack Miller. You are advised to deal with experts if you invest out of state.
Good Negotiation:
Are you happier and better off having done the deal? If yes, than the negotiation is good.
Successful Negotiation:
Both parties are happier and better off having done the deal.
Pete says, “The secret is in the people not the market.”
You can reach Pete Fortunato by email Peter@PeterFortunato.com
Brian Kondas
