Taylor-Brown Real Estate Talks

Thank you for revisiting you can still subscribe to my RSS feed. As Always Thank You for visiting!

The premium for home owner’s insurance is influenced by your credit and the replacement cost for the home.  Since your home owner’s insurance can be part of your mortgage payment it is important to know ways to decrease the premium to lower your  mortgage payment.   There are three ways to decrease you home owner’s insurance:

• Since it may take some time to improve your credit, a reduction in replacement cost is one way to decrease your home owner’s insurance.  Some insurance company can decrease your replacement cost to 80% of the replacement cost.  For instance, if the replacement cost is $100,000 it can be decreased to 80,000 as long as it is enough to pay off the mortgage and help you start over if the home is total loss.  Incidentally, this is not recommended for a long term solution to the increase in mortgage or insurance premium.
• Another way to decrease your premium is to increase your deductible.  Remember on homeowner’s insurance you do not pay the deductible before a claim is paid it is simply deduct from the claim.
• Still yet another way is to decrease your liability coverage.

There is an often overlook way to combat an increase in premium that is to find out what your home owner’s insurance when it is three months before your one year anniversary of the purchase of your home.  Your insurance agent should have your renewal premium amount.   If it is more than one hundred over your previous year premium shop for new insurance by calling other companies and get quotes or ask for the above changes to your present premium.

Originally posted 2009-10-31 05:00:47. Republished by Blog Post Promoter

• Do You Make These Mistakes When Getting a Mortgage? Often times, the buyer’s excitement about being told that he or she has been approved for a mortgage that often stops him or her from asking the right questions when applying for a mortgage.  When shopping for mortgages make sure you asking the following questions: What is the interest rate?......
• Home Insurance -Latest News The latest news in insurance from around the blogosphere: M&S launches green home insurance reinstatement optionM&S Home Insurance is claiming to be the UK's first home insurance provider to offer policyholders the opportunity to reduce their impact on the environment, should they make a claim. The company has introduced a......
• Home Insurance - Latest News The latest news in home insurance from around the blogosphere: Steps to take to Cut Your New Jersey Home Insurance Quote | All ...Many of us look for New Jersey home insurance quotes and just aren't happy with the prices that we get. Part of the reason for the rates......
• What Does the Pre-approval Mean? As a buyer, you are excited because you have a pre-approval letter, but what does the letter mean?  The pre-approval letter is determined by looking at your income to debt ratio true enough; however, are you aware that all your debt is not concerned.  What debt you ask?  The light bill, water bill, phone......
• Mortgage - Latest News [caption id="" align="alignleft" width="240" caption="Image via Wikipedia"][/caption] The latest news in mortgages from around the blogosphere: U.S. support for low mortgage rates set to end – MSNBC | Mortgage ... Mortgage News and Mortgage Rates on January 25, 2010. Latest news on mortgages and mortgage rates. 25th January 2010......

• Bad Stock Market Performance Raises Your Insurance Premium So the stock market is like a roller coaster and we're somewhere near the bottom of that big first drop....
• Introduction to Mortgages pt 5 of 5 This is part five in a five part series on what you need to know about mortgages before you buy...
• Weakon 131: Mortgages Previously, I talked about how the mortgage industry works.  Today I want to talk about how mortgages work. We must...
• Sensible and Cost Effective Green Building Green construction has to be neither cost prohibitive or complicated, according to experts at the Pacific Coast Builders Conference. According...
• Hybrid Electric Car Auto Insurance This post is a guest blog written by Travis Overby. With skyrocketing gas prices and the increasing concerns about the...

Accounting is another expense that you can evaluate to reduce cost.  You may be able to reduce cost by meeting with your accountant on a quarterly basis and  if you do some of the bookkeeping yourself.   Below is forms that can help you do some of your bookkeeping and reduction in cost.

accounting-documents

Next, copy all receipts write on top of the receipts which properties the receipts are for.   The most effective way to keep up with your receipts is to upload them to your computer.  Doing this will create less work for you and the accountant, therefore reducing cost.

Originally posted 2009-11-01 05:00:44. Republished by Blog Post Promoter

• 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......
• 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......
• What Involved in Purchasing a Property as an Investor If an investor is interested in an investment property that is 60,000.  The investor acquires a loan for 90% of that amount. By the way, if the property is located in an area that is deemed declining then the mortgage company will require more down, so you may have to do......
• Good Indication that You Need to File a Property Tax Appeal It is often difficult to determine the indication of needing to file a property tax appeal, but there are signs. The following are a few good indication that a property tax appeal is necessary: One indication is when the description of the property does not match.  An example of such an......
• Surviving a Recession in the Real Estate Business (Part 1) To survive a recession, you have to do as many businesses do reduce your expenses.  When you have a portfolio of properties you may be wondering what expenses you can reduce.  There ae a least two major expenses tha you can reduce with a little work and research.  One of......

• Do You Really Need Home Accounting Software? Life is becoming more and more complicated.  If you have a family then you are will know just how much...
• 10 Reasons You Should Hire an Accountant I consider myself to be a fairly smart guy, but for the life of me, I've always suffered from performance...
• AARP Condemns EEOC's Health Benefit Ruling  The Equal Employment Opportunity Commission gave a Christmas present to corporations Wednesday with a ruling which states health benefits for former...
• Some Powerful Ways to Minimize Global Warming Lots of studies have reported that global warming has lots of negative effects that reduce the quality of life. The...
• Do You Need an Accountant? The average person usually tries to struggle with their finances year after year and only visits an accountant a few...

Reducing cost on maintenance is accomplish by planning major repairs.  If the property needs a roof, plan and budget for that repair.

Each month that you receive the rental payment the money should be divided by expense then the remaining would be considered profit.  For example, if the annual property taxes are $1200 then the monthly property taxes are $100 a month.   If the annual insurance premium is $850, then the monthly insurance premium is $70.83 month.  If there is a mortgage, the principal and interest payment maybe $250 a month.  The real estate investor needs to account for maintenance, as well.  Most real estate investors that I spoke with and including myself use $75.00 each month for maintenance.  The investor may want to consider setting aside some money for accounting and legal fees from the monthly rental amount, as well.  Fifty dollars for both should be sufficient.  This amount will give you more than enough to cover the additional income tax preparation fees when filing income taxes.

To recap, the monthly expenses are:

$50.00 accounting/legal

$75.00 maintenance

$250.00 principal and interest (mortgage)

$100.00 property taxes

$70.83 insurance

$545.83

This example has a three bedroom home that currently rents for $750.00 a month, after expenses, the investor has a profit of $204.17 a month or $2450.04 annually.   Pretty good, huh.

Well, this too may need to be evaluated for cost reduction so that your profit margin can be increased.  You may want to consider refinancing for a lower rate this one change alone may save you hundreds monthly,  and thousands in interest payments, annually.  You may want to consider an area where the rental values are higher when purchasing your investment property.

You may want to increase your insurance deductible, thereby reducing your annual insurance premium.  An important note here, unlike your auto or health insurance, the deductible for landlord insurance or home insurance is taking out of the claim payment.

• Indiana Property Tax Appeal On or before May 10 of the year that you feel that you received an unfair tax assessment, you will need to file a written appeal.  Once the assessor gets notice that a property owner would like to have their property tax re-assessment, the assessor must forward the appeal documentation......
• Indiana Property Tax Appeal (Part 2) To get the forms needed for filing your property tax appeal visit for Form 130 also called Form 11 CI www.in.gov/icpr/webfile/formsdiv/21513.pdf For Form 11 RA visit http://www.in.gov/ibtr/files/DavidandPatriciaSullivan.pdf For Form 113 visit http://www.in.gov/icpr/webfile/formsdiv/46725.pdf Below is a video for filling out the form if your property is located in Porter or La......
• Good Indication that You Need to File a Property Tax Appeal It is often difficult to determine the indication of needing to file a property tax appeal, but there are signs. The following are a few good indication that a property tax appeal is necessary: One indication is when the description of the property does not match.  An example of such an......
• 3 Reasons Why It Would Have Saved You Money to File Your Property Tax Appeals Months Ago Property taxes have been in the headlines for at least the last two years.  With high property taxes being at the forefront of the homeowners' mind.  Realtors the state over are encouraging homeowners to file property tax appeals. To help you determine if a property tax appeal is right for......
• Are You Serious, Property Tax Cap is Not Working Visiting and revisiting the property tax issue has become a pet peeve of mine for many reasons: Property taxes are too high Cities, towns, and states rely to heavily on property taxes so there is no incentives to lower property taxes As a result of the property taxes being......

• Top Ways To Lower Health Insurance Premiums With increasing budget restraints, I have been struggling with health insurance premiums just like many others in the current economic...
• Losing Employer Sponsored Health Insurance? “...if Americans like their doctor they’ll be keeping their doctor, you like your plan, you’ll be keeping your plan.” -...
• Medical and Health Insurance Premiums: Finding Deductions As we age and pay off our mortgages, it seems that baby boomers and retirees are less likely to itemize...
• Property Taxes and the Paid-Off Mortgage If you have paid-off your mortgage (as we did earlier this year), you have some new tasks to takeover from...
• The World's Most Expensive House Anyone remember Apprentice winner Kendra Todd? No, I didn't think so. Anyway Donald Trump (aka "The Donald") used her previous...

Another useful professional is a Realtor on your quest to appeal the property taxes.  The Realtor can give you more useful information on the recent changes in the neighborhood, market trends, market value, etc.

Still yet another useful piece of information is newspaper articles, magazine articles, and news reports of information pertaining to the impact that foreclosures and short sale properties have had on the local real estate market.

Armed with the above information and any evidence that you deem necessary to prove that the property is over assessed, you should be successful.

• Property Tax Appeal Review (Video 1 of Section 1) The objective of the series of videos that follows in the next couple of days is an evaluation of the the findings of property tax appellate court. This evaluation is not a guarantee that you will be successful with your appeal for an assessment in your property taxes, but it......
• Good Indication that You Need to File a Property Tax Appeal It is often difficult to determine the indication of needing to file a property tax appeal, but there are signs. The following are a few good indication that a property tax appeal is necessary: One indication is when the description of the property does not match.  An example of such an......
• Real Estate Auctions. What is it? What Happens If I Win? A real estate auction is the norm in this market that is why it is important to understand what a real estate auction is and more importantly understand the risk of the auction. "You are the winner." Those words are something that most people love to hear, but what does......
• Evaluation of Property Tax Appeal Findings Image by esagor via Flickr The objective of the series of videos that follows in the next couple of days is an evaluation of the the findings of property tax appellate court.  This evaluation is not a guarantee that you will be successful with your appeal for an assessment in your......
• Mortgage - Latest News Latest News in the mortgage industry from around the blogosphere: <a href="http://www.pdxpole.com/choosing-the-right-mortgage-basic-mortgage-terms-and-features/">Choosing the Right Mortgage – Basic Mortgage Terms and Features ...</a><p>Choosing the Right Mortgage - Mortgage Basics There is an astounding range of commercially.</p> <a href="http://www.usmortgagerates.com/how-do-i-compare-mortgage-rates-184/">How Do I Compare Mortgage Rates</a><p>These must see steps will guarantee that you get......

• Being Hybrid is not Necessarily Being Good In today's day and age, hybrid has become a synonym for what is good in the eco-friendly movement. Not all...
• Weekend Links - Things Aren't Always What They Seem Edition I'm a member of a diverse group of people with a common interest. I've found that situation often leads to...
• Top 10 free iPad apps [/caption] Many upcoming iPad apps are shaping up to be significantly more expensive than their iPhone counterparts. But a quick...
• The True Cost of the G20 Protest (in Daffodils) G20 UK Protests - an Appraisal Following on from this post about the protest(s) the other day and the obviously...
• Review of Millionaire By Thirty Douglas Andrew’s book reads like a rejected first draft of Rich Dad, Poor Dad and right off the bat, it’s...