I know it is enticing .... however beware of buying a foreclosure "Bargain"

It’s an unfortunate result of the recession — many families haven’t been able to keep up with their

mortgage payments and have lost their homes to foreclosure. And foreclosed homes often sell for less-than-market rates, making them seem like a bargain to buyers who are used to the inflated prices of a few years ago.

But comparing a new home to a foreclosure on price alone is a mistake. You can’t put a dollar value on your peace of mind, safety, financial reserves and time — all of which could be in jeopardy if you buy a foreclosed home.


For example, a foreclosure could have legal issues. Before buying a foreclosed home you will have to do thorough research — or hire a title company or lawyer — to make sure there aren’t any additional financial or legal liabilities attached to the home. There may be liens on the property for unpaid taxes, home owners’ association dues, or the home may have been put up as collateral on other loans that weren’t paid. You could become liable for thousands of dollars of debt you weren’t aware were attached to the foreclosed home.

As soon as you take ownership of a foreclosed home, anything that breaks or any problems that arise are your responsibility. This could cost you lots of time and money that you may not have budgeted for.

With a new home, maintenance won’t be an issue for a while with the brand-new appliances and systems. And if something does go wrong in the first year, there is often a new home warranty that guarantees repair or replacement.  

Foreclosed homes also often haven’t been taken care of by former owners who knew they were going to lose the home. In some cases vandals, thieves or even the owners have damaged the home, removed appliances or torn apart walls to remove copper pipes that are valuable as scrap metal.

A foreclosed home could have been sitting vacant for months or years, and if it wasn’t properly secured, there could be significant damage from water, mold, weather or pest infestations. It could cost you thousands of dollars and a lot of time to bring a home that was allowed to deteriorate back to a livable condition.

You also don’t have to spend time or money changing someone else’s design preferences with a new home. No tearing down wood paneling, repainting walls, or replacing outdated flooring. Your preferences are included as the home is built, and they are there waiting for you the day you unpack your boxes.

Finally — and most importantly — don’t forget safety.
New homes have been constructed under a strict set of codes and standards, and have to be thoroughly inspected before the certificate of occupancy is issued and you are allowed to close the sale and move in.

With a foreclosure, you don’t know how many renovations or repairs have been made over the years, or who made them. There could be faulty wiring, weakened structures or other conditions that could be dangerous and costly to bring up to safe and modern standards.

When you are looking for a place to keep your family safe and to build a lifetime of memories, it may be well worth paying a higher upfront cost to get convenience, modern features and peace of mind — and avoid the potential pitfalls of a foreclosure that could turn your dreams of homeownership into a
nightmare.

Home Buyer Tax Credit Repayment Begins for 2008 Buyers

Most home buyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns.

The credit—some form of which was offered for qualified home purchases in 2008, 2009 and 2010—has different repayment rules depending on when and under what circumstances the home was purchased. As tax season approaches, this may cause confusion among home buyers who received the tax credit.

"It is important that home buyers consult a qualified tax professional to make sure they are receiving all the tax benefits as well as fulfilling the obligations of their home purchase," said Bob Nielsen, chairman of the National Association of Home Builders and a home builder from Reno, Nev. "Homeownership tax incentives such as the home buyer tax credit and the mortgage interest deduction have helped millions of American families achieve their dream of homeownership."

The Internal Revenue Service is sending a letter to taxpayers who claimed the credit that explains if, when and how they have to repay it. There are different IRS letters for different situations, including a purchase of a home in 2008, 2009 or 2010; a sale of a main home; or a change in the use of the main home.

For example, a taxpayer who claimed the full $7,500 first-time home buyer credit on their 2008 tax return will repay $500 as an additional tax on their returns each year from 2010 to 2025, or until the home is sold or is no longer used as the owner's principal residence.

The credit for homes purchased in 2009 and 2010 does not have a repayment requirement unless the home ceases to be used as the taxpayer's principal residence within three years of the purchase.

The home buyer tax credit program expired for the majority of Americans in 2010. However, the eligibility period was extended to April 30, 2011, for qualified service members who served official extended duty outside the United States between Dec. 31, 2008, and May 1, 2010.

The IRS website at www.irs.gov contains detailed information about repayment requirements for the federal home buyer tax credit. For information about the tax benefits of homeownership, go to NAHB's website http://www.savemymortgageinterestdeduction.com/.

EDITOR'S NOTE: NAHB is providing this information for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information in this release is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

I know its football season -- but ....Don't Ignore Home Maintenance Chores This Fall

The crisp weather of fall is upon us and football season is well underway. While the prospect of relaxing into a lazy Sunday schedule calls to many home owners weary from the routine of weekend lawn mowing, don’t sleep on essential lawn care and home maintenance tasks that will see you through the winter.

Autumn Lawn Care Basics      

• Fall is a great time for new grass seed to take root, so consider reseeding in selected areas. Reseeding also eliminates areas for weeds to grow in the spring. Fertilize your lawn one more time with a high nitrogen fertilizer to encourage root growth. Look for a lawn fertilizer labeled “winterizing.”
• It’s also a good idea to rake leaves and debris off your lawn in the fall. Put some muscle into it and rake out any areas where heavy thatch has built up.
• Cut your lawn one last time after it has stopped growing, but before the first snow. Adjust your mower setting to cut your lawn to about one inch. Lawn care experts suggest doing the final mowing with a bagger to pick up cut grass, stray leaves and other debris. It also leaves fewer places for Snowmold to develop.

Fight Snowmold

• According to gardenersnet.com, snowmold is one of the most common lawn diseases and typically it shows up in the spring. As the snow melts, it uncovers a lawn that has spent several months hidden under a cold blanket of white, with little air and no sun. In its cold, wet, and dark environment, Snowmold slowly forms, leaving blades of grass dead and brown. New grasses will sprout up behind it, but unless you vigorously rake it away, the new growth will be slow and thin — so it’s a good idea to overseed.

Consider Aerating

• It also may be wise to aerate your lawn. According to Homestore.com, aerating your lawn is a great way to reduce thatch, loosen up compacted soils and pave the way for water and nutrients to reach the roots of your grass.
• Even with meticulous care, lawns can thin out and lose color due to excessive thatch buildup, hard or compacted soils, or periods of high temperature, high humidity, or drought. According to The Lawn Institute, more than two-thirds of American lawns are growing on compacted soils. These soils slowly reduce the amount of oxygen contained in the soil, thus retarding the penetration of both water and nutrients. Aerating and overseeding is recognized by experts as the best treatment to control thatch, reduce compaction, fill-in bare spots and revitalize growth.

Here are a few tips from lawnboy.com to help you determine if you should aerate annually:


 •If your lawn is more than seven years old, and rests on mostly clay soil.

•If your lawn is moderately to heavily used (walked or played on).

•If water collects on your lawn.

While lawn care is a hot maintenance item for home owners who value “curb appeal” or just want to escape the ire of neighborhood community associations, don’t forget there are plenty of other maintenance chores. Here’s a checklist of items you should address before the winter holiday season.

Exterior Tasks

1.Maintain your gutters.
Remove all debris from your gutters so water can properly drain. This minimizes standing water and slows the freeze/thaw expansion process that occurs in cold weather. Clogged gutters can cause landscaping, lawn and shrubbery, walls, foundation, basement, crawl spaces and existing gutter system damage. Consider installing “gutter guards,” which will prevent debris from entering the gutter and direct the flow of water away from the house and into the ground.

2.Trim your trees and remove dead branches.
Inclement weather can cause weak trees or branches to break and damage your home, car, utility lines or someone walking on your property. Keep an eye out for large dead branches in trees; detached branches hanging in trees; cavities or rotten wood along trunks or major branches; mushrooms at the base of trees; cracks or splits in trunks; leaves that prematurely develop unusual color or size; and trees that were previously topped or heavily pruned. If you see any signs of hazards, call a professional tree service.

3.Maintain your steps and handrails.
Repair broken stairs and banisters to prevent falls and injury.

4.Inspect your roof.
Be proactive and prevent emergency and expensive repairs. Things to look for include damaged or loose shingles; gaps in the flashing where the roofing and siding meet vents and flues; and damaged mortar around the chimney (especially at the joints, caps and washes). If you see any signs of damage, call a professional to repair the damage.

5.Inspect your home’s exterior walls.
Look for possible weather-related damage, like cracks and loose or crumbling mortar. Wood trim and siding can suffer from deteriorating paint or become loose. Windowsills may be cracked, split or decayed.

Indoor Chores

1.Check your home’s insulation.
Your attic should be five to 10 degrees warmer than the outside air, otherwise too much heat escapes and causes frozen water to melt and refreeze which can result in a collapsed roof. Don’t neglect your basement and crawl spaces, and well insulate pipes in those spaces to protect against freezing.

2.Maintain your pipes.
Wrap your pipes with heating tape every winter and insulate unfinished rooms such as garages, if they contain exposed pipes. Check pipes for cracks and leaks and have any damage repaired immediately to prevent costlier repairs later. Keep your house warm — at least 65 degrees.

3.Check your heating systems.
Be sure to maintain your furnace, fireplace, boiler, water heater, space heater and wood-burning stove and have your heating system serviced every year. Check smoke and fire alarms and carbon monoxide detectors and change your heating and air conditioning filters regularly.

4.Know your plumbing.
Learn the location of your pipes and how to shut the water off. If your pipes freeze, the quicker you shut off the water, the better chance you have of preventing pipe bursts. Check weather stripping and caulking around windows and doors and replace or repair as needed. Caulking helps keep your house weather-tight, lowers your heating and cooling bills, and can also help keep insects and rodents out of your house. Also look for chipped or peeling paint around window frames and trim. Repair broken glass and loose or missing putty. When needed, use a modern glazing compound instead of putty for a waterproof seal.

5.Clean and vacuum dust from vents, baseboard heaters and cold-air returns.
Dust build-up in ducts is a major cause of indoor pollutants and can increase incidences of cold-weather illnesses. Check all your faucets for leaks and repair any you find. Replace washers if necessary.

By setting aside a few weekend days now, you’ll save yourself from a lot of hassle later. Once your home passes your fall inspection, you and your family can relax and enjoy the coming holidays free from worry about potential home maintenance catastrophes.

Article Courtsey if NAHB http://www.nahb.org/generic.aspx?sectionID=124&genericContentID=125909

How do you get through college and get out with little and/or no debt?

College graduates are drowning in debt. The Federal Reserve recently released data that shows the amount of outstanding student loan debt has now passed the amount of outstanding credit card debt- $829.785 billion versus $826.5 billion.

Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc. advises consumers how to budget and use credit wisely, but with recent statistics proving that student loan debt is becoming an epidemic for millions of young college graduates, Dvorkin and his team of financial experts are focusing on this pressing issue and providing young consumers with tips to avoiding getting deep into student debt.

The higher education platform in the U.S. is comprised of a wide range of institutions with various and vast programs. Students and parents typically choose colleges based on fluffy rankings via top 100 lists of best colleges and universities. "Although there is merit to those rankings, I warn people not to be so concerned with where schools fall on the top 100 best lists, but to be more concerned and scrutinize the price tag of the college education," says Dvorkin, who is also the author of Credit Hell: How to Dig Out of Debt(John Wiley & Sons).

Helpful tips for getting through college with less student debt:

• Graduate on time: Not many students graduate on time due to class schedule complications, working full-time in conjunction with school, or having to retake a class, many students end-up graduating in four and a half years to as many as six years. Staying in college longer than the estimated equates to needing more money for room and board, books and other living expenses. Students should take classes throughout the summer to have a better chance of graduating on time and with less student debt.
• Get a part-time job: Students should get a part-time job on campus or at a company that is willing to work with their school schedule. This will allow the student to earn extra money for additional living costs and school events without significantly increasing their student debt load. Although small loans of $5,000 here, and $3,000 there, don''t seem like much, they add up quickly. Add interest on unsubsidized loans, and those small $5,000 loans can turn into a whopping $10,000 in no time.
• Use a debit card to monitor spending: Monitor and analyze spending on a monthly basis. With free online banking, students can see where they are spending, which allows them to create a realistic budget for their lifestyle.
• Be realistic about money: If the student''s room, board, and college credit hours only cost $8,000 a semester, don''t take out a $20,000 loan. Thinking rationally and responsibly is an important ingredient to not having a future full of debt. Students need to remind themselves that they will have to pay back the money WITH interest.
• Find grants and scholarships: Students should look for grants because it is money that they DON''T have to pay back. Grants and scholarships are based on various factors including what field study, GPA, race, gender, or type of degree that is being sought. Thanks to the Internet they are much easier to find and they can reduce the total amount of student loans that are needed to survive college. Parents and students should check the Student Aid Wizard from the US Federal Government Department of Education.
• Max out federal loans first: These loans offer low fixed interest rates and better repayment options. Try to avoid private loans, which usually charge much higher interest rates. Private loans typically charge 18 to 25 percent in interest, where as federal student loans offer interest rates not exceeding 8 percent.

Not taking debt seriously, whether its credit card debt or student loan debt, can impair a student''s financial life long after they have walked across the graduation stage. Spend wisely and live within your means and only take out student loans for college credit hours, books, room and board to save financial stress in the future.
Article Courtesy of
About Consolidated Credit Counseling Services, Inc.: Incorporated in 1993, Consolidated Credit provides personal finance educational assistance, financial wellness programs, budgeting assistance, and debt management plans throughout the United States. Consolidated Credit is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA ), is a member of the Better Business Bureau and it ISO 9001 registered and accepted worldwide. For more information about Consolidated Credit Counseling Services, Inc., go to www.ConsolidatedCredit.org.

Should you leave the money to the kids? -- The Downside of Inherited Wealth

Handing down wealth to kids is often a no-win situation.

Parents work hard to make money to leave their kids. Then they have to work to offset the impact of money on their kids’ lives. Even then, the results aren’t always successful (how many Kardashian sisters are there now?).

A new study from Los Angeles-based Bel Air Investment Advisors, surveying wealthy kids and families attending a “next generation” seminar, shows that families are well aware of the the pitfalls of inherited wealth –- yet they keep on passing it down.

The survey found that 60% of the wealthy – or soon-to-be-wealthy – kids identified with the statement that “wealth created discomfort in the family.”

More than half agreed that “wealth has made it hard to live up to the success of parents or previous generations.”

Even if they get the money, the money is a cause for more worry. Nearly two out of three respondents are “very concerned” about growing their wealth.

So what’s the right strategy for money and kids? It depends on the kid, of course. But I have yet to hear a good overall answer. Leaving no money to kids creates its ownresentments (even Warren Buffett of “lucky sperm club” fame has left millions to his kids).

And leaving entire fortunes to kids can wreak havoc on their lives.

Is there a “right” amount of money to leave to kids?

Article Courtesy of
http://blogs.wsj.com/wealth/2010/05/06/the-downside-of-inherited-wealth/

Women's History Month (March 2010) - Financial Secrets from Mellody Hobson ... and it includes buying shoes ....

Her Secrets
Act like a Depression Baby: When the household bills arrive, like her phone or cable, Hobson pays more than what's due, so she won't get another bill for a while. "It may be ridiculous, but I sleep better if I'm prepared for the worst-case scenario," she says.

Aspire to ownership: Hobson takes part of her pay in company stock and saves more with each raise. "I know these days there's a big move to diversify your investments — but if you think you work for a good business that has wonderful prospects, put some of your money there," she advises. "The wealthiest families didn't get there on paychecks alone, but by owning all or part of their companies."

Splurge on something practical: Hobson admits she has too many leather blazers. But in the "very tailored" banking world, she explains, it's how she shows her personality yet stays "acceptable."

Get your $$$ worth: Hobson won't spend on "consumables." This means she avoids pricey restaurants but will splurge on her home and clothes. "I'd rather be sitting on it or wearing it than eating it

As president of Ariel Investments, Mellody is responsible for firm-wide management and strategic planning, overseeing all operations of Ariel’s business outside of research and portfolio management. Additionally, she serves as chairman of the board of trustees for Ariel Investment Trust. Mellody has become a nationally recognized voice on financial literacy and investor education. She is a regular financial contributor on ABC’s Good Morning America, a featured columnist in Black Enterprise magazine as well as a spokesperson for both the annual Ariel/Schwab Black Investor Survey and the 2009 Ariel/Hewitt study, “401(k) Plans in Living Color.” Beyond her work at Ariel, Mellody is a director of three public companies: DreamWorks Animation SKG, Inc.; The Estée Lauder Companies Inc. and Starbucks Corporation. She also serves on the Investment Company Institute’s board of governors and the SEC Investor Advisory Committee, and is a director of various professional and civic organizations. Mellody earned her undergraduate degree from Princeton’s Woodrow Wilson School of International Relations and Public Policy and is a former trustee of the University.

Go Back to www.ahbcustomhomebuilders.com

Be Eco Friendly - Drive a Porsche - Yes a Porsche!

For the Sports and Entertainment Professional - A standard Builder's Contract?

You are celebrating the contract that you just signed and your signing bonus is burning a hole in your pocket. You’ve decided that you want to build a new house, renting just isn’t the same as owning.

There is no such thing as a standard builder’s contract. This is not a player’s contract where all your agent has to do is negotiate salary amounts, bonuses and incentives. While builder’s contracts vary from state to state, they always are drafted to protect the builder and not you. You have hired an agent to get you the best deal with your team, you have financial advisors looking after your investments, you have doctors and trainers caring for your body; make sure that you have an attorney, not necessarily your agent and or manager, but an attorney who specializes in real estate negotiate your purchase contract before you sign it.

Below are some items that you need to consider in your contract. Buying a new home is one of the biggest investments that you will make in your lifetime, make sure you protect yourself as much as you can.
Financing
Although you may not think it is necessary, consult with your bank or financial institution and have them pre-qualify you for a mortgage. This will help you determine how much you can afford to spend and still live comfortably. Most contracts don’t contain a contingency for financing which means that if you can’t qualify for a mortgage when the house is ready, you lose your deposit. While you probably can’t change this language in the contract, you can help yourself by understanding what it says.
Deposit
You want to keep your deposit as small as possible, preferably less than 10% of the purchase price. The builder is also going to want a deposit on your upgrades, try to keep that number to 25% or less. Make sure that whoever is holding the deposit has to keep the deposit in an escrow account, that you are earning interest, and that the builder cannot use the funds for construction. You don’t want to be financing the builder and have him go bankrupt with your money.
Inspections
Make sure the contract allows you to periodically inspect the home with your own contractor or building professional to ensure that the builder is doing a good job and constructing a solid house. I would inspect the wiring, plumbing, air conditioning ducts, and the insulation before the contractor seals them in with the drywall. This will give you an opportunity to get the builder to make some of the repairs before the house is completed.
Once the house is completed you should have a final opportunity to inspect the house and provide the builder with a punch-list of items that need to be corrected. It is very important that you carefully inspect the house because after closing you cannot to object to any item which you could have damaged moving in to the home. The contract should give the builder no more than thirty days to complete the repairs.
Default Provisions
What if you are traded or even worse released?
Make sure the contract provides that in the event that you default that the builder is limited to taking your deposit and cannot sue you for specific performance to make you complete the purchase or sue you for damages. You want to make sure that the worst-case scenario is you lose your deposit. Try and get the builder to make your contract assignable. That way if you can find someone to buy the house you will not forfeit your deposit.
Mirror Image and the Models
Keep in mind that model homes are professionally decorated, outfitted with the finest upgrades and presented to make the rooms look bigger and better than what it may look like when your home is built. The builder has the right to reverse the image of your house once it is built, that means the garage or the bedrooms may be flipped from the model. Have the contract provide that the builder must have the plans approved by you before construction can commence. Check the contract and identity what is standard and what is extra. Try and get the builder to throw in a few upgrades at no extra charge, if you don’t try, you never know.

Finally, do some research on the builder. Make sure that he has a good reputation and is experienced. Remember, once you sign the contract you are basically married to the builder until your home is built and your punch-list has been completed. Don’t let anyone tell you that the builder doesn’t negotiate the contract. Everything is negotiable. Remember that building a new home should be one of the most rewarding things you do in life.

AHB Custom Home Builders have completed many homes for sports and entertainment figures with happy results. We provide the support and expertise required to complete your home on schedule and on budget. We recognize the need for privacy and logistics that are usually required for your transaction.

For more information contact Diane Fudge 404-886-6716 or EMAIL.

Article Coutesy of Pro Athletes Only

When to invest in real estate - What about now?

THESE FACTORS MAKE FOR A GREAT INVESTOR REAL ESTATE DEAL

I know it sounds strange, but it's true. Today's dire economic circumstances have conspired to produce the perfect real estate storm. At least that's the case if you are in the market to find a bargain. Huge inventory, low interest rates, and highly motivated sellers all combine to make this an ideal time to pick up a house, or two, or even three. But before we all rush out and buy the first house we can find, let's look at the four most important factors of an investor real estate deal:

** LOCATION

If you are looking for a rental property that will pay for itself on a monthly basis, you may be best off looking in lower middle class neighborhoods where most of the owners occupy their homes and keep their homes in relatively good condition.Gang graffiti and boarded-up doors and windows are signs to avoid, while accessibility to transportation and relatively recent construction make for good rental income properties. Good public schools are also an important feature for many prospective renters.Another desirable feature related to location is a neighborhood where most of the homes are similar in size and amenities. You want to buy in a neighborhood where the other properties won't pull down your value due to wide-ranging sales prices.

** CONDITION

Try to avoid neighborhoods where most of the homes are less than three bedrooms and two baths, or where most of the construction is pre-1950. Homes more than fifty years old will eventually need almost all systems updated, and that is an expense to avoid in a rental situation.Homes less than ten years old have almost all up-to-date systems, and shouldn't need major renovations any time soon. In addition, newer homes sometimes offer space for expansion, an inexpensive way to add a bedroom or office.In an ideal situation, the home should need no work before the renter moves in. However, in today's real estate market, the condition is where you are going to find the greatest degree of variation. At no time in the past thirty years has there been such a large number of homes on the market needing significant repairs.Many of these homes are bank-owned, and some are uninhabitable. Others may need nothing more than paint and carpet. Being able to distinguish between the two extremes is critical to your success in finding a great deal. At the very least, make all offers contingent upon a full inspection of the property and a satisfactory estimate for all needed repairs.

** PRICE

The glut of bank-owned homes has, in my opinion, kicked the floor out from under the Atlanta residential real estate market. We don't know what anything is worth, because so many of the comparable sales that appraisers use are distressed sales.But if you can get a price discount in the 40% to 50% range, it really doesn't take a great investor to see that there is plenty of room for upside profit, both in the monthly cash flow and in the long term resale price.I believe that most lenders had, until recently, hoped for a "Resolution Trust Company style" bailout from the federal government. But now that the Obama administration has indicated that troubled bank assets will not be purchased directly, pressure to sell is mounting on a daily basis. Seller motivation is growing.Investors making initial offers on bank-owned homes should be especially careful to stay in touch with the current market of bank resales. Discounts of 25% are not uncommon, and sales at 50 cents on the dollar are being seen by investors. My advice is to start low, then be prepared to negotiate up.

** FINANCING

This is the big wildcard for investment property, because the current Fannie Mae "four property rule" has kept many veteran investors on the sidelines. But if FNMA were to return to the "ten property" limit, or if banks began offering any kind of reasonable seller-financing, the floor under housing prices in Atlanta could be re-established fairly quickly.All but the most ardent "doom and gloomers" believe that the current condition of variable home values will end sooner rather than later, and anyone who can lock in a low price now will be glad they did. But the real key is how to finance that low price.A super-low price combined with a great financing makes for a fabulous real estate investment opportunity. And I believe the solution to this problem is seller financing. I am already starting to get reports of banks selling their houses and agreeing to carry back some sort of financing.The key for investors is not necessarily a 30-year fixed rate loan at 6% interest with nothing down, although that would be nice. Instead, the key is for banks to be able to convert their non-performing assets (the vacant houses) into performing assets (loans requiring a substantial down payment and reasonable qualification guidelines).These loans can be good for the banks and good for the borrower, and they could still be attractive with terms as short as five to seven years. The investment community is ready, but needs the financing to act. Once the banks make this leap of logic, the huge oversupply of vacant houses in Atlanta can begin to disappear, and we can get on with the business of re-establishing a market for real estate.

Article Courtesy of http://money99.com/content/view/134/1/

Comments or questions? Send e-mail to
InsideAdvice@gmail.com

Do you feel wealthy? - It just may depends on how much money you make and where you live.

A year ago, Wealth Report readers told me how much money it took to be considered “rich” in their town. The answers ranged from a $500,000 income in Manhattan to $1 million to $2 million in total net worth in Kansas City.

The point, of course, is that wealth is relative. Being “rich” depends on where you live.
Now, the folks at U.S. News & World Report have come up with a more scientific process of defining “rich” in various towns. Basically, they used census data to calculate the top 20% of earners and top 5% of earners in 40 metro areas. Then they did some division and multiplying to calculate top-wealth levels for childless couples and families of four (methodology fanatics can click here. Be warned, as readers astutely pointed out to me, the numbers are averages, which can be highly skewed by extreme earners).

Here is how much household income it takes to be in top 5% in the following communities:

Atlanta–Couple (no kids), $268,264. Family of four, $536,528.

Colorado Springs, Colo.–Couple, $207,472. Family, $414,943.

Dallas–Couple, $267,344. Family, $534,688.

Honolulu, Hawaii–Couple, $235,190. Family, $470,380.

Kansas City, Kan.–Couple, $219,300. Family, $438,600.

Las Vegas–Couple, $240,359. Family, $480,718.

Los Angeles–Couple, $315,996. Family, $631,992.

New York–Couple, $359,494. Family, $718,989.

San Francisco–Couple, $359,061. Family, $718,123.

Washington, D.C. –Couple, $347,917. Couple, $490,436.

I don’t doubt the tabulations. But I would bet that people living in these communities with the above incomes don’t feel “rich.” Americans always look up when it comes to wealth. So if you asked someone in Colorado Springs with a household income is $414,943 or more, they probably would think of themselves as upper middle class. And they probably wouldn’t guess they were in the top 5%.

Then again, in the current crisis, maybe those with incomes of $400,000 or more would consider themselves rich.

To read complete article:
http://blogs.wsj.com/wealth/2008/10/15/what-it-takes-to-be-rich-in-your-town-part-2/

What about trust? --- I mean a family trust.

Not Bob Johnson, Oprah Winfrey, or Shaquil O'Neal --- you may still benefit from a family trust.

It used to be that only the extremely wealthy set up trust funds for their children and grandchildren. Today, with ordinary people becoming millionaires through the increased property value of their homes, stocks, and retirements accounts. Trust funds are becoming more commonplace. Parents and grandparents in this category are undertaking estate planning to preserve their wealth and minimize death taxes.

The term family trust refers to a discretionary trust set up to hold a family's assets or to conduct a family business. Generally, they are established for asset protection or tax purposes.

A family trust:

• is generally established by a family member for the benefit of members of the 'family group';
• avoid unnecessary stress by dealing with inheritance issues before death.
• gain peace of mind in the knowledge that property will pass upon the terms of the trust after death.
• avoid delays after death. Properties in Family Trusts may be sold without a Grant of Representation. The trustees can sign all the paperwork.
• can be the subject of a family trust election which provides it with certain tax advantages, provided that the trust passes the family control test and makes distributions of trust income only to beneficiaries of the trust who are within the 'family group';
• can assist in protecting the family group's assets from the liabilities of one or more of the family members (for instance, in the event of a family member's bankruptcy or insolvency);
• properties in Family Trusts may be sold without a Grant of Representation. The trustees can sign all the paperwork.
• provides a mechanism to pass family assets to future generations; and
  can provide a means of accessing favourable taxation treatment by ensuring all family members use their income tax "tax-free thresholds".
• benefit from tax advantages. In most cases, there is no Capital Gains Tax or Income Tax payable by transferring your home into a Family Trust. Inheritance Tax will remain unaffected.

A family trust has many other potential benefits, including avoiding issues such as challenges to the will following a death of a senior member of the family.

Important note
This page contains only the briefest of summaries relating to Family Trusts. It is not a substitute for full legal advice. Advice can only be given after consideration of all relevant facts. This is a complex area of law and therefore any planning should be done on the advice of an expert, in order to ensure as far as possible the protection of the estate.

From whom should one receive real estate advice? -- well maybe Terrell Owens.

Throughout his NFL career, Cowboys receiver Terrell Owens has collected touchdown passes, including four this season. Now, he's also collecting Dallas real estate.
T.O. owns six townhouses and condos in the city, valued at more than $2.5 million based on tax records. He acquired five of the properties within the last year, most of them as investments.

"Those are going to be worth a lot of money someday," he said, when asked after a recent practice about his holdings near the eastern end of Commerce Street. "I think it's going to be a big area in a few years."

The units are a short distance from the Fair Park Station, scheduled to open next year, on the DART Green Line. It's a transition neighborhood with a mix of older buildings, newer residential buildings and vacant lots.

Owens formerly lived in one of the units and acquired three more in nearby projects. They range in value, according to tax records, from $356,000 to $405,000.
Britt Fair, executive vice president at Hexter-Fair Title Company, closely follows local sales trends. He said there is risk, as well as potential reward, in pioneering an area. I'm not sure I'm going to take investment advice from Terrell Owens," Fair said. "But he may be on to something."

Patience is critical, especially in a slow market like this, advises Realtor Jerold Smith, who blogs about Dallas and Plano real estate. Smith said an investor such as Owens should plan to hold the units "for a minimum of five years to see a return."
Owens now lives at the Azure, a high-rise building in Uptown. His home is on an upper floor, where one of his neighbors is Cowboys running back Marion Barber. Former Cowboy Deion Sanders owns a penthouse unit, according to tax records.
Owens also owns a smaller unit on a lower floor, valued at $346,000. He is disputing the assessed value of the larger unit. Condos in the same position on nearby floors range in assessed value from $719,000 to $1.2 million. Assessed valuations often are lower than market values.

"I don't want to talk about my stuff," Owens said, when asked why he decided to invest in Dallas real estate. In a telephone interview, Jeff Rubin, Owens' financial adviser, acknowledged that the townhome purchases are investments. He said that rents are covering mortgage payments and that the holdings are being put into a limited liability corporation, a common practice for tax purposes. He declined to give further details.

Rents in newer buildings in the neighborhood near Fair Park run about $1 a square foot per month, according to current listings. Owens' units range from about 2,200 to 2,600 square feet, according to tax records.

In T.O., Owens' 2006 book, he wrote about his realization that, despite his big football contracts, he didn't have the financial security he thought he had. Pro athletes need to plan for when their playing days are over.

With the Eagles at the time, Owens fired his agent and hired Drew Rosenhaus as well as other advisers, including Rubin.

"I now had an effective, powerful machine working for me," Owens wrote. He added: "Although I respected their advice, the final decision was to be mine, not theirs."

The Cowboys signed Owens to a new contract this summer, a four-year, $34 million deal, which included a $12.9 million bonus.

Based on the contract amounts he details in his book and the terms of his new deal, Owens has earned about $67 million from NFL teams to this point in his career. If he completes his Cowboys contract, he could earn an additional $21 million through 2011.
Owens, who has 133 career TD catches, also owns homes in New Jersey and Georgia and condos in Atlanta and on the beach near Miami, according to online tax records.
The New Jersey home is listed for sale at $2.96 million, less than Owens paid in 2004With 20 percent down and a 30-year mortgage at 6 percent, the monthly payment would be $14,197, according to an online site that lists the house.

Tom Granese, a developer of one of Owens' units near Fair Park, said he anticipated that the area would develop more quickly than it has, but the economy has put everything on hold. However, Granese said, with the DART line opening, city investments in Fair Park, and a new bike trail, he expects substantial growth over time.

"I'm glad that someone like him is investing in a neighborhood like that," Granese said of Owens.

Article Courtesy of By GARY JACOBSON / The Dallas Morning News

Play golf with Tiger Woods ....well maybe just on a Tiger Woods designed golf course - The Tiger Woods Dubai project.

Tiger Woods Dubai Residential Golf Development Launches Sales Center

This coming Sunday will see the launch an exclusive sales center for the Tiger Woods Dubai residential golf community development

The Tiger Woods Dubai comprises an exclusive golf community which includes a professionally staffed golf academy, a 14,000 square meter clubhouse with premium amenities, and the Al Ruwaya, the first golf course designed by Tiger Woods. The project is schedules to be completed in 2009.

For complete article:
http://blog.luxuryproperty.com/tiger-woods-dubai-residential-golf-developement-launches-sales-center/trackback/

So -- what is the price per Sq. Ft. ? ---The 10 Most Expensive Streets in the World

The Wealth Bulletin (a Dow Jones site) has come up with a list of the 10 most expensive streets in the world. Granted, this is an inexact science, but the list includes some jaw-dropping price-per-square-foot numbers for some of the richest blocks on earth.

Topping the list is Monaco’s Avenue Princess Grace, the palm-lined street named after Grace Kelly that overlooks the water. Forget buying a house there — just getting a beer at Jimmy’s Bar on the Avenue will set you back more than $100. But living on the avenue gets you a chance to rub elbows with Russian oligarchs, Middle Eastern oil sheikhs and the occasional Monaco royal.

The two streets to make the list from the U.S. are New York City’s Fifth Avenue and Carolwood Drive in Beverly Hills.

Here is the complete list, with some sample property prices as tallied by Wealth Bulletin:

1. Avenue Princess Grace, Monaco — $17,750 per square foot.

2. Severn Road, Hong Kong — $11,200 per square foot.

To see the complete list
http://blogs.wsj.com/wealth/2008/08/05/the-10-most-expensive-streets-in-the-world/

Is now a good time to invest in real estate? -- in Atlanta that is a YES!

Metro Atlanta ranks No. 3 on HomeVestors of America Inc.'s new list of the top 10 U.S. markets for residential real estate investing, released Tuesday.

For complete article: http://www.bizjournals.com/atlanta/stories/2008/07/14/daily32.html

Do I really need to give?

"As I give, I get." Mary McLeod Bethune African-American educator (1875-1955)

"If you want to lift yourself up, lift up someone else." — Booker T. Washington

Jackie Robinson Foundation

Warrick Dunn Foundation

Deshawn Snow Foundation

Magic Johnson Foundation

Bill Cosby - Hello Friend/Ennis William Cosby Foundation

Opran Winfrey - Oprah's Angel Network

Tyra Banks - T-Zone

What difference do you want to make in the community?

Today donors are driven by personal quests and a desire to make a difference. They are more focused on the root causes of issues rather than just providing relief to problems. They are also looking or opportunities to learn and grow through their involvement with the charities that they support.

As part of their more focussed approach to giving, today's donors are creating long-term relationships with the organizations that they support, becoming knowledgeable on the issues involved and advocates for these causes. While they are supportive, they nonetheless hold the charities accountable: they want to be able to see the difference that their donations are making. Not only is this typical of individual donors, but also families who create private foundations or endowment funds at their local community foundations.

Many non-wealthy persons have dedicated – thus, donated – substantial portions of their time, effort and wealth to charitable causes. These people are not typically described as philanthropists because individual effort alone is seldom recognized as instigating significant change

So -- How much should you spend on lunch?

Lunch with Buffett Costs Record $2.1 Million
Warren Buffett is becoming an expensive lunch date.
An auction for a chance to have lunch with Mr. Buffett fetched $2.1 million on Friday night. The bid, by a Hong Kong-based investor, was the most-expensive charity auction ever held on eBay and set a new record for the annual lunch.

For complete story: http://blogs.wsj.com/wealth/2008/06/30/lunch-with-buffett-costs-record-21-million/trackback/

My neighbors' home is purple! -- The benefits of a Homeowners' Association (7 to 1)

An HOA provides people with shared neighborhood values an opportunity to enforce regulations, consistent with overriding statutory constraints, to achieve a community representative of such values. In doing so, an HOA inherently restricts the freedoms that would otherwise exist for its members based on municipal codes. For instance, a degree of conformity is often required in exterior appearance of single family homes and there are often time limits and/or restrictions to activities generating noise. There are pre-existing rules in the form of CC&Rs and bylaws that a buyer has a right and an obligation to view before entering such a community, that also prescribe methods for modification of these regulations. These bylaws are largely limited in various degrees by state laws, with some overriding federal judicial or statutory limits. For instance, based on a Supreme Court decision, no HOA can prohibit signs advocating political positions, however, such signs may be limited to private property display and may not be displayed in common areas. On the other hand, HOAs do have authority to prohibit the display of commercial signs, both on community property, private property and often on private vehicles. In every association, board members and officers are chosen by election from its property owner-members, with the ability in some states for the membership to remove board members even during term.

Many homeowners' associations include management of a community's recreational amenities, maintained for exclusive use of its members. This can allow an individual homeowner access to a maintained pool, clubhouse, gym, tennis court or walking trail that they may not be able to otherwise afford or desire to maintain on their own. Each member of a homeowners' association pays assessments that are used to cover the expenses of the community at large. Some examples are landscaping for the common areas, maintenance and upkeep of community amenities, insurance for commonly-owned structures and areas, mailing costs for newsletters and other correspondence, employment of a management company or on-site manager, security personnel and gate maintenance, and any other item delineated in the governing documents or agreed to by the Board of Directors.

While many criticisms of HOAs are made, everyone living under the jurisdiction of such a governing body has made a decision to do so, and many are happy to have the governing body in place to enforce shared values and community standards. A survey by Zogby International showed that for every one owner-member who rated the overall experience of living in a community association as negative, seven rated the experience as positive.

Coutesy of http://en.wikipedia.org/wiki/Homeowners%27_association

Finally making the cash --- How do I become wealthy?

Nine Truths That Can Set You on the Path to Financial Freedom

#1: Change the Way You Think About Money
The general population has a love / hate relationship with wealth. They resent those who have it, but spend their entire lives attempting to get it for themselves. The reason a vast majority of people never accumulate a substantial nest egg is because they don't understand the nature of money or how it works.
Cash, like a person, is a living thing. When you wake up in the morning and go to work, you are selling a product - yourself (or more specifically, your labor). When you realize that every morning your assets wake up and have the same potential to work as you do, you unlock a powerful key in your life. Each dollar you save is like an employee. Over the course of time, the goal is to make your employees work hard, and eventually, they will make enough money to hire more workers (cash).
When you have become truly successful, you no longer have to sell your own labor, but can live off of the labor of your assets.
#2: Develop an Understanding of the Power of Small Amounts
The biggest mistake most people make is that they think they have to start with an entire Napoleon-like army. They suffer from the "not enough" mentality; namely that if they aren't making $1,000 or $5,000 investments at a time, they will never become rich. What these people don't realize is that entire armies are built one soldier at a time; so too is their financial arsenal.
A friend of mine once knew a woman who worked as a dishwasher and made her purses out of used liquid detergent bottles. This woman invested and saved everything she had despite it never being more than a few dollars at a time. Now, her portfolio is worth millions upon millions of dollars, all of which was built upon small investments. I am not suggesting you become this frugal, but the lesson is still a valuable one. Do not despise the day of small beginnings!
#3: With Each Dollar You Save, You Are Buying Yourself Freedom
When you put it in these terms, you see how spending $20 here and $40 there can make a huge difference in the long run. Since money has the ability to work in your place, the more of it you employ, the faster and larger it will grow. Along with more money comes more freedom - the freedom to stay home with your kids, the freedom to retire and travel around the world, or the freedom to quit your job. If you have any source of income, it is possible for you to start building wealth today. It may only be $5 or $10 at a time, but each of those investments is a stone in the foundation of your financial freedom.
#4: You Are Responsible for Where You Are in Your Life
Years ago, a friend told me she didn't want to invest in stocks because she "didn't want to wait ten years to be rich..." she would rather enjoy her money now. The folly with this school of thinking is that the odds are, you are going to be alive in ten years. The question is whether or not you will be better off when you arrive there. Where you are right now is the sum total of the decisions you have made in the past. Why not set the stage for your life in the future right now?
#5: Instead of Buying the Product... Buy the Stock!
Someone once asked me why they weren't wealthy. They always felt like they were putting money aside, yet never seemed to get any further ahead. The answer is simple. I told them to stop buying the products companies sell and start buying the company itself! A survey of America's affluent (those who make over $225,000 a year or own $3,000,000 in assets) revealed that 27-30% of all the income the wealthy earned went into investments and savings. That isn't a result of being rich, that is why they are rich. When the pain of getting out of the bondage of financial slavery is greater than the pain of changing your spending habits, you will become rich. Either change, or be content to live as you are.
#6: Study and Admire Success and Those Who Have Achieved It... Then Emulate It
A very wise investor once said to pick the traits you admire and dislike the most about your heroes, then do everything in your power to develop the traits you like and reject the ones you don't. Mold yourself into who you want to become. You'll find that by investing in yourself first, money will begin to flow into your life. Success and wealth beget success and wealth. You have to purchase your way into that cycle, and you do so by building your army one soldier at a time and putting your money to work for you.
#7: Realize that More Money is Not the Answer
More money is not going to solve your problem. Money is a magnifying glass; it will accelerate and bring to light your true habits.
If you are not capable of handling a job paying $18,000 a year, the worst possible thing that could happen to you is for you to earn six figures. It would destroy you. I have met too many people earning $100,000 a year who are living from paycheck to paycheck and don't understand why it is happening. The problem isn't the size of their checkbook, it is the way in which they were taught to use money.
#8: Unless Your Parents Were Wealthy, Don't Do What They Did
The definition of insanity is doing the same thing over and over again and expecting a different result. If your parents were not living the life you want to live then don't do what they did! You must break away from the mentality of past generations if you want to have a different lifestyle than they had.
To achieve the financial freedom and success that your family may or may not have had, you have to do two things. First, make a firm commitment to get out of debt. To find out which debts should be paid off before you invest and those that are acceptable, read Pay Off Your Debt or Invest?. Second, make saving and investing the highest financial priority in your life; one technique is to pay yourself first.
Purchasing equity is vital to your financial success as an individual whether you are in need of cash income or desire long-term appreciation in stock value. Nowhere else can your money do as much for you as when you use it to invest in a business that has wonderful long-term prospects.
#9: Don't Worry
The miracle of life is that it doesn't matter so much where you are, it matters where you are going. Once you have made the choice to take control back of your life by building up your net worth, don't give a second thought to the "what ifs". Every moment that goes by, you are growing closer and closer to your ultimate goal - control and freedom.
Every dollar that passes through your hands is a seed to your financial future. Rest assured, if you are diligent and responsible, financial prosperity is an inevitability. The day will come when you make your last payment on your car, your house, or whatever else it is you owe. Until then, enjoy the process.

Article Courtesy of
How to Become Wealthy
From Joshua Kennon,Your Guide to Investing for Beginners.FREE Newsletter. Sign Up Now!

So you have burned your credit -- Bad Credit Refinance

What makes a bad credit refinance different from a regular refinance loan?
A bad credit refinance will typically have a much higher interest rate (2-6% depending on the borrower's credit) than a loan for someone with excellent credit.
People typically do a bad credit refinance for one of the following reasons:
1. Bad credit refinance to consolidate bills. Someone who has high balances on several high interest rate credit cards, car loans or other forms of installment debt. A bad credit refinance loan with an interest rate of 12% is still better than paying 21% on multiple credit cards. Since the loan for a bad credit refinance is spread out over 30 years, the monthly payment for the loan (even at the higher interest rate) would still be lower than the total of all of the individual monthly debt payments.
2. Bad credit refinance to get a lower mortgage rate. A person may have decided 2 years ago to get a mortgage after filing a recent bankruptcy. The interest rate on this loan is likely to have been extremely high. After making some improvements to his/her credit, the borrower may try to get a new bad credit refinance in an effort to get a lower interest rate than they are paying on the current loan. If a person was paying 13% interest, a 10% interest rate could help lower the monthly payment and cut interest costs dramatically.

Lender fees for a bad credit refinance will also be higher. Keep in mind however, if you consistently make your payments on time for two (2) consecutive years for a bad credit refinance and take continued steps to improve your credit, you should be able to refinance into a much lower interest rate.

Bad credit refinance information brought to you by LocalLender.Info