This program will “partner up” with individuals on a new house or a residence already owned and shares in the appreciation or depreciation of the house. REX™ Agreements are only for primary, owner-occupied residences.  It is not for rental or investment properties.

The contract can be written in REX™ Agreement for up to 50 years, and it ends at the earlier of the expiration date or when the house is sold. When buying a house, the funds can be used towards the down payment, and if the house is already owned, the money can be used for whatever purpose the homeowner chooses.

There’s no minimum income or assets requirement, but the credit requirement is a credit score of at least 680.  If you want to terminate the agreement, you can “buy out” the REX™ Agreement for the appreciation or depreciation difference at the time of the buyout.

According to Brooke Southall, in InvestmentNews, consumers don’t pay taxes on the money that they receive from a REX™ Agreement, and many use the funds to hedge their investments from just real estate. As the article says “In 90% of the cases, customers used fund received to reinvest in securities or additional real estate.

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A quality contractor will welcome bids on a job.  He will give you his bid and justify it.  I have not always gone with just price.  There are other value added services a quality contract will provide, and he knows it.

He will guarantee the quality of his work.  If the work does not pass inspection, a good contractor will usually redo anything that is not up to code that he was responsible for fixing originally at no additional cost.

Once a business relationship is developed, a quality contractor will offer a thirty-day net or grace period to pay invoices.  I would be very suspect of one that wanted all the money upfront.  I would even think twice if one asked for fifty percent to start the job.  Everyone needs to protect themselves in business, but if you check out financial and have equity in your property, there is little risk for the contractor.

Should you always use the same contractor?  I will take that up next time.  If you have an opinion, please let me know.

Later, I got to know him rather well.  We collaborated on business ventures and even partnered on a transaction.  When asked him he used this approach to find clients.  He stated that in actuality the seller of the property paid the real estate commissions.  That the competition for listings was very competitive thus he wanted to choose the road less traveled.  He also felt that having the buyer in any given transaction was most important.  If he had buyers he believed he could always find them a property.

I was very fortunate to work with such a competent and creative real estate agent in the early years of my investing career.  Are their still agents that focus on catering to the buyer?  I have not met any recently; maybe I will meet more in the months to come.

David Bach provides 3 Basic Rules for Hiring a Great Real Estate Agent, and The Big Picture provide some statistical data concerning the number of Real Estate Agent in A Bull Market of Real Estate Agents.

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Now, the default rate is high. On Tuesday, March 13, 2007. The anxiety over mortgage lenders, particularly the sub prime lenders that make loans to people with poor credit, pushed The Dow Jones down by more than 240 points according to stock market experts. This is the second-biggest drop in nearly four years.

As an investor, should you buy, sell, refinance or build? Let us know your thoughts.

Speaking from personal experience, I have found it hard to focus on both at the same time.  I have done both, but have either focused on one or the other.  One thing you want to make sure to avoid if you decide to flip is a Flipping Scam that has victimized new investors.  Currently, I’m a Landlord, but I’m dreaming of flipping again.  What type of Real Estate Investor are you?

Online real estate tours are becoming popular.  Realty Thoughts has done a review of three real estate video services that can make an impact in 2007.  Currently many individuals and real estate professionals are using YouTube.

Real Estate Agents have found very effective ways to sell real estate.  They are the professionals.  Since success leaves clues, I would suggest real estate investors attempting to sell their own properties in ways that mimic what has been successful for agents.  Listing the property with the MLS, holding open houses, networking with other agents and sharing commissions.

The technics that agents use can be modified in one form or another to work for investors too.  There are flat rate brokers who will list the property in the MLS on your behalf, you can hold open houses, you can network with agents and other investors to find buyers.

Here are a couple of tips that have worked for me:

1. Post your property for sale on eBay.  There are many buyers that have first been exposed to properties on eBay.  One can get exposure for their property to potential buyers from around the world.  Ebay Real Estate.

2. Yahoo Real Estate Groups are an effective way to network with other investors and find buyers. Yahoo Real Estate Groups.

Best of luck in selling your property, and remember, “success leaves clues.”

http://www.youtube.com/watch?v=9NmhDFUlJME

I have noticed that the taxes associated with different entities
will differ. Therefore, you want to research what entity will meet
your tax strategy best. For example, there are franchise tax fees
associated with a LLC and Corporation. Here in California, it is
$800 per year minimum. Therefore, I would need to calculate that
into my property cash flow analysis if I were to use a California
corporation to buy an out-of-state property. I would not need to
do that if I bought it as an individual. On the other hand,  I could
lower that expense by incorporating in the state the property
was located, etc.

In addition, I have noticed that different cities have different
taxes associated with property ownership. I have been in
situations where there were property user taxes that were not
included in the Property Tax. I have an additional one or two local
tax bills associated with property ownership in some cities. Make
sure to ask what are the different taxes associated with property
before purchasing. You will not be surprised when the City sends
you a bill stating that — your potion of the Table and Park Bench
Beautification Project is $84.35. Do your research before you buy.

Taxes I have paid associated with owning property differ greatly
depending on where it is. My job is to calculate that cost prior to
buying in that city. Can I make a profit is the bottom line. I have
not noticed any different in income taxes once I have made the
profit or loss. This is my personal experience.

For personal tax advice, you should consult a CPA or Tax Attorney.

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http://www.youtube.com/watch?v=Hk_gNEehdKI

Does anyone know of any other program that you have work with successfully?  If so, please share them here.

How have you found tenants in general, that has worked for you? Any bright ideas?  As investors, we need this information to get the job done whether the market is strong or weak.