Are the Reforms Governor Daniels Proposed Going to Affect You?

Originally posted 2009-01-06 14:07:38. Republished by Blog Post Promoter

The Indiana general assembly will be in session soon.  Governor Daniels is planning to outline several proposed reforms.  Will these reforms affect you? Let’s examine.

Below are the outline of the proposed reforms:

• Governor Daniels is proposing replacing the county commissioner with one county executive.
• Governor Daniels is proposing combining election cycles to reduce spending.
• Governor Daniels is proposing making several now elected positions appointed positions.  Those positions include the county assessor, surveyor, coroner, and treasurer.
• Governor Daniels is proposing reducing the health care department.
• Governor Daniels is proposing consolidating smaller school districts into larger ones.
• Governor Daniels is proposing consolidating the local library to a county library.

The proposals that Governor Daniels are outlining in this session of the Indiana General Assembly is according to a Ball State University study estimated to save the state $630 million dollars.  While I happy that the Governor is attempting to save the state money, I have to wonder if there safeguards in place for all the changes that he propose.

Let’s examine each proposal seperately. 

Proposed one has to do with the county commissioners being consolidated into one executive commissioners.  The concerned here is will there be equal representation for all cities and/or all citizens in the county.   Needless to say, there is no safeguard under this proposal for the equal representation of all areas of the county.  Will there be a vote or speaker for each city or town on all issues or will there be one person who decides what is good for the whole with out hearing the whole opinion?

Proposed two is about combining election cycles.  I think this is a good idea.

Proposal three is about appointing not electing certain position to include the county assessor, surveyor, coroner, and treasurer.  I feel this to is a good idea if the people who are appointed to these position are qualified for the position.  I do feel that if this is approved there needs to be an outline of the qualification of the person appointed to these positions. 

Proposal four is about the health care departments.  According to the proposal some areas have too many health care departments.    Once again, there is no safeguard in this proposal for transportation for the low income and elder to the facility that will remain open. 

Proposal five is about consolidating smaller school districts into larger ones.  There is no safeguard in this proposal for equal funding for all schools in the new combine districts.   

 Proposal six is about consolidating the local libraries into a county district library.  I think this would be a good idea if all libraries remain open and equal funding is available to all.

I am sure the officials have their collectively hands full, but it is definitely time to bring Indiana’s government from the Dark Ages.  It is time to reform.  It is time to make changes because the future of the state depends on it.

Real Estate Investing Is It a Cash Cow or Dud

Originally posted 2011-08-31 12:01:08. Republished by Blog Post Promoter

Is real estate investing still a good way to make money?  To answer this question, we will examine what occassional debt  such as credit cards can do to your financial future.

Most people use a credit card like it is a never ending money tree and spend, spend, spend.  If this occurs, you will never achieve wealth.  Here is why.  If that credit card’s interest rate is eighteen percent, you are paying eighteen dollars, for every one hundred dollars you spend.  The latter is an example of “living rich while growing poor.”

The objective in growing rich is to use the concept that the rich use.  It is, use OPM, other people’s money, to become financial free.

The steps are simple.  Reduce consumer debt.  Next, build assets through homeownership, save money, and invest.  Third, borrow against those assets to increase your net worth.

A critical requirement of OPM is that the moeny acquired needs to be used to maintain and/or improve your wealth.  In other words, it is not wise to use your newly acquired funds to purchase stock because the stock may be a higher risk proposition than real estate.

After all, real estate can reduce in value, but it will never be worth zero, unlike stock.  Yes, real estate is always  worth something even if there is no structure on the land.

The land, the dirt, the trees, the air, is all worth something.  So, next time you have some extra money do your homework and consider real estate as your

Mortgage Buy Out Will Not Work

Originally posted 2009-03-29 05:04:32. Republished by Blog Post Promoter

With the bottom not in sight according to Scott Pelley’s report, the government’s mortgage buyout will not work.

The question becomes why are we spending this money on bail out the mortgage companies. Some believe it is to unfreeze the lending institution so they will lend. I believe that bailing the mortgage companies out by giving more money to a continuing problem creates an inflation bubble that will take over 10 to 15 years to get out of. So beware before you say yes to another bail out.

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Lack of Property Taxes Tops News in Northwest Indiana

Originally posted 2008-12-27 09:35:31. Republished by Blog Post Promoter

The Times has an article named, Lake Commissioners Pledge Veto for Food, Beverage Tax.   According to this article the Lake County Commissioners plan to veto the increase in tax on food and beverage.  Alot of the commissioners state that they do not want to go back on their word of “no new taxes”.  The idea of a commissioner trying to be true to campaign pledges is refreshing in an of itself.    One of the commissioner believes that the local government still has not done enough to cut the fat.  I, too, believe that not enough fat has been cut in government. 

One area that needs fat cutting is township assessors. There are over a 1000 township assessors and that is more than California, Texas, Ohio, and Florida.  Now, if you have not noticed Indiana is in some cases half the size of the states mention.  The reduction in township assessors not only save money, but it also is proposed to create fair property tax assessment.

The cutting of assessors is only one area that needs trimming.  Other areas that may need review is the amount of items that is on the property taxes.  The amount of taxes paid need to re-appropriated and it will take all of us to determine the best mode of action to get that done fairly.

Is It Possible to Save Money During a Recession

Saving Money During a Recession: Mission Impossible?

Recession is a word that fills people with dread and bad visions.  It’s a time people consider bad for finances, a time capable of magically shrinking a dollar’s value overnight.  It also automatically increases the cost of basic living.  And where money is a huge concern, people always ask, ‘Can I still save for real during a recession?’  The answer is: of course you can.  You just need to be wise and creative about the whole thing.  Here are ways how:

Plan your purchases.

By planning your purchases, you’re effectively planning your expenses.  This will help eliminate the danger of impulse buying and unnecessary spending.  Try to look at the bigger picture when it comes to your basic needs.

Plan for a week’s worth of groceries, for example, so you’ll have an idea of which items you truly need (and want) and which items you can do away with.  To make sure that you maximize your planning efforts, consider incorporating items on sale into your planning.  If there are foods on sale that week, for example, why not plan your week’s menu using what’s currently on slashed down prices?

Implement the ‘B’ word.

Budget, that is.  If you want to be able to save money during a recession, learn to discipline yourself and your family.  Using your plan as a reference, come up with a weekly or monthly budget and then stick to it.  If you must overshoot it, you should have a very good reason to do so.  Otherwise, don’t spend.

Keep an eye out for bargains and discounts.

Learn to monitor stores for seasonal sales.  You’ll save a lot of money by buying items on sale than in their regular prices.  During a recession, that’s considered wise spending.  Check out store or newspaper ads and don’t be shy about asking for cheaper alternatives, getting store rebates or using discount coupons.  Consider buying at discount stores as well.  Each dollar you don’t pay is a dollar you save.

Buy in bulk.

If there are items in your house that are often in use (paper towels, canned beans, yoghurt, etc.), consider buying in bulk.  Many stores offer items in packs, which means you’ll save money in the long run if you buy them instead of paying for individual items.

Put off bigger purchases.

A good rule of thumb is, if you can’t afford it, don’t buy it.  If, for example, you have enough money for a downpayment on a new LCD TV but will have to borrow money off your credit card just to tide you over for the next few weeks, it would be really insane to make a purchase.  Wait until you can truly, comfortably afford something.  The worst you can do during a recession is not just failing to get money saved but also going into debt.

Practice prevention, not cure.

If you look closely, there are many things you do in your home that are siphoning precious dollars from your wallet.  Simple steps such as repairing and maintaining your home and appliances, using more efficient equipment and cutting down on unnecessary consumption can do wonders for your wallet and piggy bank.  And what better way to treat a recession than to be prudent?

Earn extra money.

If, after all your efforts, the money you have saved is still not enough, don’t let recession get the better of you.  There are times when your efforts are just not sufficient – mostly because you don’t earn enough.  Instead of asking for a raise that might never occur or waiting for a promotion to drop on your lap, consider finding other means with which to earn (and save) money.

Consider getting a part-time job, work extra hours, do selling on the side or offer your skills as a freelancer.  The extra income you earn, along with your recession-powered money-saving plan, will help you make enough until after the tough times are over.

Related articles

• Simple Ways to Recession Proof Your Home (taylorbrownrealestatetalks.com)
• Tips for Buying Property During a Recession (taylorbrownrealestatetalks.com)
• Billeater: 9 Money Saving Tips to Help You Conserve Cash (savings.com)
• 7 Tips on Improving Personal Finance Post Recession (moneyning.com)

A Real Estate Broker Still Has Credit Lessons of Her Own to Share

Have you set back and determine what having money means or are you always determining what having little money means?Your view or determination may be the difference between living and dying in poverty and living and dying in wealth.

Let’s examine.

An editor of a well known magazine did this analysis of her life in hindsight.I, too, am doing this analysis in hindsight.I see some mistakes, some achievements, and all too often a need for improvement.This editor also saw the same thing, she, of course, maybe looking at this evaluation as valuable lessons as rags to riches.I am, however, looking at them as life changing lessons for the better.
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This editor’s lesson of amassing wealth for yourself involved her grandmother’s plight and a relationship she had will a man that she labeled as “selfish.”My lessons have do with not listening to my inner voice and amassed knowledge of finances until it was too late.

Still both my lessons and this editor’s lessons will make for great warnings and financial victories for you.
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The editor’s grandmother had amassed great wealth with her life long male partners but when he died she was kick out of the home that her and her partner brought because the home and all other accounts was in his name only.Therefore, even though she had amassed wealth because she did not have insight to get joined ownership or at least joint tenancy with the right of survivorship on the home, as a result of this oversight, the editor’s grandmother died in poverty.

The editor’s second wealth lesson was that of a “selfish” lover who taught her the importance of acquire your own wealth.

My lessons were not far from these.My lessons included not having an emergency fund, not having a business nest egg, and not having a little personal savings and the effect of not have the above items.

To make the lessons that the editor and I learn become your personal victories, you must:

• Spend less than you earn
• Value your time; remember time is money.
• Be strategic; create a plan
• Build a retirement nest egg or business nest egg
• Purchase property.Unlike some stock, land, houses, buildings, will never depreciate to zero; it will always be worth something.

I pray that these life lessons that this editor and I learn along our journey can offer insight and improve your financial choices from now on.

 

It Is A Good Time to Refinance

Good News in This Economy

According to CNNMoney.com’s article http://moneyfeatures.blogs.money.cnn.com/2009/02/13/how-to-score-a-low-rate-loan/ it is a great time to refinance.  With the falling interest rate, you can save thousands on your mortgage. 

Caution on Your Refinance

The article goes on to caution the consumer that because everyone is trying to refinance at the lower rate it may take a lot longer to secure the lower rate because it is taking longer to close deals.  However, Amerisave offers $1000 to the consumer if the loan does not close when promise.  In addition, Amerisave offer the lowest rate and fees guarantee or Amerisave will pay you $500.

AmeriSave.com

Thinking of Becoming a Real Estate Investor

Thinking of becoming a real estate investor? The first thing that will make this endeavor achievable is that the investor must understand his or her market. There are two different types of markets. One type of market is a seller’s market, and the other type of market is the buyer’s market.

 

The Buyer’s Market

In a buyer’s market, the buyer must be aware that being in a buyer’s market doesn’t make the buyer’s job any easier. It just gives the buyer more flexibility. Remember in a buyer’s market, there may be several buyers for one property or only one buyer for a property. If there are no other buyers for a property by virtue of the length of time the property has been on the market then a low offer may come in to the seller. Sorry sellers. However, sellers that do not mean that the property has to given away, but it may mean that the seller could have to settle for less than the seller anticipated selling his or her home for.

 

Another thing that makes a buyer’s market advantageous to the buyer and not to the seller is that there are a lot of homes to choice from that may meet the buyer’s criteria.

 

The Seller’s Market

In a seller’s market, on the other hand, the seller has the upper hand. The seller can price his or her home significantly above market value and negotiate the purchase price to exact what the seller wants the purchase price to be. Sorry buyers. If the buyer really wants a home in a seller’s market, the buyer must succumb to the seller’s terms in order to get the home. As a matter of fact, in a seller’s market the inventory of homes for sale that may meet the buyer’s criteria are fewer.

 

Choosing the Property

Once the investor has ascertained the type of market he or she is in then the investor is ready to buy. Now, the investor must determine what type of properties work best for him or her. That means does the investor want to purchase single family homes or multi units? With single family homes, it is very important to determine what will happen if the property is vacant. The investor must determine if he or she can pay the mortgage if there is a mortgage on top of other expenses if there is not a tenant or the tenant is not paying. In those calculation must be the upkeep of the building to include utilities and maintenance not only the mortgage, taxes, and insurance. If that is affordable then move forward. If not, then look at those options with a multi unit and determine which scenario works better for the investor’s financial situation if there are vacancy. Do not be fooled that there will not be vacancy during sometime of the investor’s ownership, so it is best to look at that now rather than later.

 

Now, that the investor has determined which property type works better for his or her financial situation, the investor can now move forward. Another thing that the investor must consider is that it is always must easier to rent three plus bedrooms than a two or one bedroom.

 

Buy and Hold

Up until now, the suggested scenario for the investor has been about the possibility of buy and hold. What is buy and hold? Well, buy and hold is when the investor buys the property and hold it to rent it for a pre-determine number of years. It is important to note that in order for this to be successful the investor must consider the area in which the property is located. The investor wants to purchase a property that is desirable to both renters and homeowners. By doing this, it makes it easier to sell for a profit when the investor determines that he or she wants to sell.

 

Fix and Flip

There is yet another way to be a real estate investor and it is called fix and flip. Fix and flip is fixing up the property to flip or sell it to someone else. Under the fix and flip, if the new buyer is acquiring financing to purchase the property then the investor will have to have owned the property for at least six months to be able to sell. Be aware that some lenders may require that the investor owned it longer. Incidentally, due to recent market changes the latter is no longer true.

 

The investor may be wondering how the financial institution of the buyer knows how long the seller/investor has owned the property well the lender requires a clear chain of title. The chain of title will show if there is any liens and/or judgment, but it also shows the chain of ownership. The chain of title shows the dates of transfer of title or ownership. The chain of title also let’s the lender know if the property is marketable and free to transfer ownership. The investor may also be wondering where the chain of title comes from? The chain of title comes from an abstract of the title. An abstract of the title is a condensed history of ownership of the property which is gathered by the abstracter through public record.

Once the Title Company and lender determine that the property is free and clear to sell. The lender needs to know that the buyer is free and clear of liens and judgments, as well. The reason is that the liens and judgment that the buyer may have may attach to the property, so a search is done on the buyer by their name and social security number. By the way, the liens and judgment are a concern to the lender is that those liens or judgments can super succeed the lender’s mortgage; the lender wants the mortgage to be first on the property. If judgments or liens do show up for the buyer because the buyer has a common name, then buyer completes a name affidavit that can clear up most information that may come up. The name affidavit has the buyer’s name, social security number, marital status, last five years of addresses, etc. This information is used to rule out judgment or lien that may appear.

 

Ways to Sell the Investment Property

Let’s discuss different ways to sell the property under a fix and flip scenario. The seller/investor may consider a lease option. Under a lease option, the seller must do a judgment search on the potential buyer/tenant before attaching them to the property because the judgment and or liens on the potential buyer/tenant may attach to the property. As a seller, it is apparent that the investor do not want to pay someone else bills, so pay to have the search done.

Once the search is complete and it is determined that the potential buyer/tenant does not have any judgment and/or liens draw up the lease/option contract. Consult an attorney when doing this to ensure all options of ownership and releasing option are examined.

Under most lease agreement, the buyer pays a non-refundable deposit. This deposit is negotiated between the parties and credited to the buyer at time of purchase. Under some agreement, the deposit is credited to the buyer only if the buyer does not default on the lease agreement and exercise their option before the expiration of the lease agreement.

The seller will also credit the buyer a certain portion of the monthly lease payment that the buyer/tenant makes in a timely manner to the buyer at time of closing. However, the buyer/tenant shall not receive any credit for monthly payment made after the due date specified in the contract.

Incidentally, it is important to note that the buyer/tenant can only exercise their right to purchase in writing. It is also important to note that the option to purchase is not transferable.

It is important to work with the potential tenant/buyer to help them clear their credit issue by referring them to a professional that will help the tenant/buyer determine what need to be corrected on their credit and keep up with the tenant/buyer progress on doing what is required to correct the tenant/buyer’s credit. The reason this is important for the life of the lease the investor can not sell the property without proper notice to the tenant/buyer.

 

Getting Back to the Basics

Now, that the investor’s option have discussed let’s get back to some basics. Let’s say the investor buys a fixer upper. With a fixer upper, there are not many insurance options or so the investor may think. The investor may go to one insurance company and the company may tell the investor that the insurance can not insure the new purchase until after repair, and the investor still decides to move on with the purchase. The investor does not have his or her interest in the property insured. Well, there are companies that offer the insurance the investor needs. The investor just needs to know what companies offer it and what that type of insurance is called. It is called builder’s risk or a vacancy policy. The companies that offer these policies are Allstate, American Family, and Farmers Insurance. Allstate’s policy covers the property for a year, but it does not cover the investor once the investor has a tenant in the property. Once a tenant is in the property you must have a landlord policy.

American Family’s policy covers the property for three months, and then at the end of the three month the investor either buys another three month policy because the property is not ready for occupancy or gets a landlord policy.

Once the investor’s insurance is in place or even before purchase find out about permits for the jobs needed for the fixer upper. The investor needs to do this so that jobs will not be stop by the city inspector and the investor loses money as a results. This is very important in a fix and flip scenario because the investor stands to have to pay expenses that the investor did not calculate for. This is also called holding cost, so do research that can not be spoke to enough research, research, research.

 

 

What Has the IRS Done For Me Lately?

Paying Taxes Does Good For Us

Typically, when most of us think of the IRS, we get an unpleasant taste in our mouth or a pain in our stomach, but we do not think about what paying taxes provide for us.  The Gov Gab  blog did a great article http://blog.usa.gov/roller/govgab/entry/thanks_to_the_folks_at about all of the departments that our taxes provide our hard earn money too.  Those departments of the government make our lives better. 

What departments you may be asking yourself?  Well, the US Postal Service do a lot for a 42 cent stamp including getting our mortgage payments to the mortgage company, getting our pay check and social security checks to our door, etc.   Another department is the social security, no matter what we think of whether the money will be there when we retire or not we are grateful for the opportunity to worry if the money is available.  So you see the IRS is doing us some good.

Therefore, we all need to have a better outlook for the IRS because of all they do to help us have a better life.

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