Wednesday, September 30, 2009
Bringing back the fun in Real Estate Investing!!
Stone Equity Group is here to inform you as to the hottest markets to invest in, how to invest with as little money out of your pocket, as well educate you in the arsenal of tools today’s investors have at their disposal such as LLCs, and 1031 exchanges. Our SEG Advisors will also provide information, services, tips and tricks in regards to their own specialization. We will cover many areas if interest for investors as well as people looking for information in but not limited to Asset Protection, Tax Incentives, Real Estate Investing, Commercial Investing, and Credit Counseling.
Where is the pot at the end of the rainbow?
Many investors have realized their pots at the end of their rainbows have disappeared, and are lost as to where to invest now.
In this Real Estate Market there is so much happening outside of our backyards. We have been looking at the places that are hot in this market place and we happen to see all fingers pointing at Texas. The reason why Texas is the big place to invest in is because of job growth. With so many people are losing their jobs all over the country there is a lot of people moving out of state and looking for a new place to call home. The big plus in Texas is a mix of affordability and job opportunity by what you can read in this article below.
Report: Dallas-Fort Worth has strongest job market in U.S.
Investors need to think their way of think from flipping to renting. The market is so volatile you cannot be sure that the foreclosure or rehab you’re trying to fix and flip has the equity at the end of the day to make it a profitable investment. Come over to SEG and see what I’m talking about.
In this Real Estate Market there is so much happening outside of our backyards. We have been looking at the places that are hot in this market place and we happen to see all fingers pointing at Texas. The reason why Texas is the big place to invest in is because of job growth. With so many people are losing their jobs all over the country there is a lot of people moving out of state and looking for a new place to call home. The big plus in Texas is a mix of affordability and job opportunity by what you can read in this article below.
Report: Dallas-Fort Worth has strongest job market in U.S.
Investors need to think their way of think from flipping to renting. The market is so volatile you cannot be sure that the foreclosure or rehab you’re trying to fix and flip has the equity at the end of the day to make it a profitable investment. Come over to SEG and see what I’m talking about.
DON'T TRUST THE SELLER
After over 30 million in real estate transactions, I have learned a couple things. We will talk about one right now, which must be a mindset, protocol, and over all rule that is critical when analyzing a property for acquisition. This important piece of knowledge has helped save me millions in potential losses and assisted in properly valuating properties. OK enough build up here it is…………..
DON’T TRUST THE SELLER
When you go into a real estate, transaction there is a paradox between the buyer and seller. The buyer wants to pay as little as possible for the property. The seller typically over values their property and expects you to pay the premium. So in this dichotomy of goals as a buyer in acquisition mode we must conduct due diligence with extreme prejudice and expect the seller to omit or manipulate facts and numbers to aide in accomplishing his/her plight. Now I understand this sounds like paranoia, but in real estate investing only the paranoid survive.
There are several angles that I typically see where this reality surfaces during my due diligence process but for the sake of time we will discuss two. The first is the misuse of terms actual and proforma. It never ceases to amaze me the back peddling that happens when you realize the financials you made the offer on have suddenly changed and your 10 cap, on the advertised “actuals”, is now a mere 8.2 cap. There are many reasons for this disconnection. First the property may have performed at a 10 cap last year as a fluke but this year back to normal it’s at a 8.2 cap. Alternatively, the owner may have been managing the property so management expenses and vacancies were low. Lastly and most often, it is a manipulation of numbers like excluding expenses, or including non-relevant income.
The second is the lack of disclosure. Typically, if you are searching for an undervalued property the majority will have issues hidden deep below the surface to avoid scaring you off. These problems are the reason for the sales price and can be fixable or potential nightmares. Your mission is to find these problems then assess the solution, feasibility and cost. They can include deferred maintenance, inflated rents with concessions, mis-management, transient tenants, environmental, obsolescence and declining neighborhoods.
So word to the wise when you are knee deep in financial analysis and the numbers click start digging deeper, and do not settle until you expose the dirt. Another suggestion is to join a real estate club specialized in real estate acquisition. One company Stone Equity Group offers members a deal review to help analyze potential properties along with access to due diligence on exclusive properties including condos, duplexes, fourplexes and multifamily in the hottest markets nationwide.
Happy Investing ~ Joshua Host
DON’T TRUST THE SELLER
When you go into a real estate, transaction there is a paradox between the buyer and seller. The buyer wants to pay as little as possible for the property. The seller typically over values their property and expects you to pay the premium. So in this dichotomy of goals as a buyer in acquisition mode we must conduct due diligence with extreme prejudice and expect the seller to omit or manipulate facts and numbers to aide in accomplishing his/her plight. Now I understand this sounds like paranoia, but in real estate investing only the paranoid survive.
There are several angles that I typically see where this reality surfaces during my due diligence process but for the sake of time we will discuss two. The first is the misuse of terms actual and proforma. It never ceases to amaze me the back peddling that happens when you realize the financials you made the offer on have suddenly changed and your 10 cap, on the advertised “actuals”, is now a mere 8.2 cap. There are many reasons for this disconnection. First the property may have performed at a 10 cap last year as a fluke but this year back to normal it’s at a 8.2 cap. Alternatively, the owner may have been managing the property so management expenses and vacancies were low. Lastly and most often, it is a manipulation of numbers like excluding expenses, or including non-relevant income.
The second is the lack of disclosure. Typically, if you are searching for an undervalued property the majority will have issues hidden deep below the surface to avoid scaring you off. These problems are the reason for the sales price and can be fixable or potential nightmares. Your mission is to find these problems then assess the solution, feasibility and cost. They can include deferred maintenance, inflated rents with concessions, mis-management, transient tenants, environmental, obsolescence and declining neighborhoods.
So word to the wise when you are knee deep in financial analysis and the numbers click start digging deeper, and do not settle until you expose the dirt. Another suggestion is to join a real estate club specialized in real estate acquisition. One company Stone Equity Group offers members a deal review to help analyze potential properties along with access to due diligence on exclusive properties including condos, duplexes, fourplexes and multifamily in the hottest markets nationwide.
Happy Investing ~ Joshua Host
PROFIT IN A DOWNTURN
As the masses huddle in the real estate crash hysteria a hand full of new adopters introduce out of the box solutions to investing profitably in a changed market. One of these companies Stone Equity Group (SEG) has rolled out another one of their Market Exploitation Strategies (MES) offering wholesale properties to their members from distressed banks and builders.
Due to the saturation of the market SEG is able to cherry pick projects in 5 star areas with strong rental fundamentals and deep discount creating huge cash flow. One of their latest projects, SEG REO Program offers investors the ability to Buy REO properties nationwide all under 20 thousand and have huge cash flow.
“When our members talk we listen, and right now they want cash flow with little to no cash outlay, so that’s been our mission.” declared Joshua Host, a principle with SEG, in a recent interview.
American industry is boom-bust with early adopters and over investors taking their place on the S-Curve. So with this re-distribution of bank funds in the real estate down turn look for the contrarians to profit. “At SEG we look at the market factors of longer hold times, unstable prices, higher rents, and lower vacancy rates then we design turn key solutions that use these factors at an advantage for our members” Joshua Host stated.
About Stone Equity Group
SEG is an educational, consulting, and networking organization that feels the best investment on Earth is Earth. SEG has built a reputation in the industry for designing blue ocean opportunities and being dedicated to serving the aspirations of its members. For more information about SEG visit www.Stoneeg.com or email info@Stoneeg.com. ~ Joshua Host
Due to the saturation of the market SEG is able to cherry pick projects in 5 star areas with strong rental fundamentals and deep discount creating huge cash flow. One of their latest projects, SEG REO Program offers investors the ability to Buy REO properties nationwide all under 20 thousand and have huge cash flow.
“When our members talk we listen, and right now they want cash flow with little to no cash outlay, so that’s been our mission.” declared Joshua Host, a principle with SEG, in a recent interview.
American industry is boom-bust with early adopters and over investors taking their place on the S-Curve. So with this re-distribution of bank funds in the real estate down turn look for the contrarians to profit. “At SEG we look at the market factors of longer hold times, unstable prices, higher rents, and lower vacancy rates then we design turn key solutions that use these factors at an advantage for our members” Joshua Host stated.
About Stone Equity Group
SEG is an educational, consulting, and networking organization that feels the best investment on Earth is Earth. SEG has built a reputation in the industry for designing blue ocean opportunities and being dedicated to serving the aspirations of its members. For more information about SEG visit www.Stoneeg.com or email info@Stoneeg.com. ~ Joshua Host
Escaping Retirement Poverty
As the wealthiest country in the world you would imagine after 45 years in the work force your retirement would be comfortable….Unfortunately statistics show 95% of Americans at the age of 65 cannot retire or have to depend on family and social systems. Additionaly more and more of the rare 5% that do retire comfortably are living longer so are forced back into the work force in their later years. When I ask most clients about their retirement plans the question is typically met with a dazed look and shoulder shrug. For some it seems retirement is a distant twinkle, and for others it is becoming the 600 pound gorrilla. The difficulty with these extremes is the first needs only slight attention to obtain future security but the idea is often shelfed because there are currently bigger fishes to fry. The latter usually need to make larger investments to secure financial security but now risk adversion and fear of failure cause analysis paralysis. There is no snake oil or secret sauce to escape retirement poverty. There is a three step process that will aid in hitting the hammock:Make a plan: This is often easier with a mentor, counselor, or friend that has the fortitude to keep you accountable. When ever I am assisting a client in making a plan it includes their current financial picture, forecasts, and future necessity. With these components we find the end term financial consideration in achieving the goal. Once this number has been established alond with the period of time til retirement we can work backwords in producing a plan to build a profitable real estate portfolio.Find a team: In any pursuit a team does not add to the likelyhood of success but rather multiplies the odds in your favor. So on the road to financial freedom to decrease your risk and speed the results make sure you have specialists in tax preparation, asset management, real estate finance, real estate acquisition, real estate management and again a mentor, consultant or friend to hold you accountable.Take Action: For most taking action can be very uncomfortable due to the unknown. A smart man once told me you have to do what’s uncomfortable until it’s comfortable, that is the only was to grow. The fact is there will be bumps in the road and it will probably be harder than you expect but isnt your family’s future securtiy worth putting in a little elbow greese? One group in particular, Stone Equity Group, is a real estate network specialized in assisting busy professionals build profitable real estate portolios in changing markets. SEG has a board of advisors that cover areas from tax strategy, asset protection, residential investments, reos, foreclosures and many other areas important in building and protecting your nest egg. Regardless of your dream remember one thing. “He who aims at nothing will hit it every time” Ancient Chinese Proverb. ~ Joshua Host
Houston is BOOMING
It was said at 55-60 a barrel Houston thrives....at over 100 a barrel Houston is on fire. But if we only wanted to focus on areas specialized in the petroleum industry Lafayette, LA or Tulsa, OK would be great candidates as well. What separates Houston from the pack is the diversification among energy, health care, tech, and financial industry that give an economic buffer to energy fluctuations. As the second largest city nationwide, with an affordability index, job market, and cost of living that rival any city in America to date Houston offers the investor's paradox of cash flow and potential appreciation like no other market.
While opportunity is vast, speculation can lead to unsatisfactory results. So to maximize the environment SEG led a market analysis to identify profitable markets. Through research two were identified, being multifamily and Duplex/Town homes in the inner Beltway. As gas prices soar and traffic worsens property values in the inner Beltway of Houston will have little way to go but up. In a search to capitalize on these findings we have negotiated discounts for SEG members on duplexes with a Houston based builder. Due to the hot market finding discounts has proved difficult, but SEG established a long term relationship that allowed these discounts on sixteen duplexes in Houston at only $94 a square foot for a nicely finished product. At the purchase price alone they are a deal, but with a $30,600 lease back they are a steal. In addition the Federal Government approved the "Tax Stimulus Act: Section 179" that allows accelerated depreciation on materials with less than a 15 year life span*. Other purchasers of these duplexes have been able to write off $100,000 year one by completing cost segregation which SEG can help to facilitate.
While opportunity is vast, speculation can lead to unsatisfactory results. So to maximize the environment SEG led a market analysis to identify profitable markets. Through research two were identified, being multifamily and Duplex/Town homes in the inner Beltway. As gas prices soar and traffic worsens property values in the inner Beltway of Houston will have little way to go but up. In a search to capitalize on these findings we have negotiated discounts for SEG members on duplexes with a Houston based builder. Due to the hot market finding discounts has proved difficult, but SEG established a long term relationship that allowed these discounts on sixteen duplexes in Houston at only $94 a square foot for a nicely finished product. At the purchase price alone they are a deal, but with a $30,600 lease back they are a steal. In addition the Federal Government approved the "Tax Stimulus Act: Section 179" that allows accelerated depreciation on materials with less than a 15 year life span*. Other purchasers of these duplexes have been able to write off $100,000 year one by completing cost segregation which SEG can help to facilitate.
GO ZONE specialist Karla Dennis joins Stone Equity Group Board of Advisors
United States of America (Press Release) May 19, 2008 -- Orange County, CA – Stone Equity Group started receiving numerous requests for Karla Dennis shortly after Ms. Dennis was a co-speaker at a recent seminar sponsored by SEG. One attendant responded “Karla was so thorough and down to earth; she simplified the GO ZONE tax benefits in a way that was easy to understand”. After numerous inquisitions and discussions SEG extended an offer for Ms. Dennis to sit on the Board of Advisors. “We have been blessed in building a Board of Advisors that are innovators in their perspective fields and parallel our company’s beliefs and values” Said Joshua Host, CEO of SEG.
SEG is tireless in their pursuit to help busy professionals build profitable real estate portfolios in changing markets. Ms. Dennis will aid SEG members in both tax consulting relating to real estate investing and tax preparation in all 50 states. The addition of Ms. Dennis to the SEG Board of Advisors and the SEG dedication to progressively add value and make financial freedom more accessible to the masses has set them aside from would be competitors.
Karla K. Dennis is a licensed Enrolled Agent. An Enrolled Agent is the designation granted to a select few who have exemplified expertise in the field of taxation and have passed a rigorous exam administered by the U.S. Treasury Department.
Ms. Dennis holds a Masters of Science Degree in Taxation from Golden Gate University and a Bachelor of Science Degree in Business Administration from California State University Dominguez Hills.
In addition to being a SEG Advisor, Ms. Dennis is the President and Founder of COHESIVE– a professional tax firm that employs distinguished tax professionals who specialize in complex tax situations, tax preparation and resolving tax issues.
Karla Dennis offers a complete tax and accounting service
to individuals and businesses. Because she has been working with clients and businesses for over 15 years, she has unsurpassed expertise in the field of accounting and taxation. Her track record includes not only preparing tax returns, but also representing clients in audits and collections issues before the Internal Revenue Service. The expertise of knowing what the IRS or other taxing authorities are looking for when your return is prepared is an indispensable benefit that she offers to her clients. Her expertise coupled with personalized service is the number one reason why clients come to her again and again. Her goal is to build a relationship with clients so they may have someone they know and trust to handle their tax and accounting needs.
Stone Equity Group (SEG) is a real estate network that is focused on assisting busy professionals build profitable real estate portfolios that cash flow. Over the last few years SEG has negotiated millions of dollars in discounts on behalf of their members and created a turn key system that takes care of everything from negotiations to property management. For more information on SEG visit Stone Equity Group.
SEG is tireless in their pursuit to help busy professionals build profitable real estate portfolios in changing markets. Ms. Dennis will aid SEG members in both tax consulting relating to real estate investing and tax preparation in all 50 states. The addition of Ms. Dennis to the SEG Board of Advisors and the SEG dedication to progressively add value and make financial freedom more accessible to the masses has set them aside from would be competitors.
Karla K. Dennis is a licensed Enrolled Agent. An Enrolled Agent is the designation granted to a select few who have exemplified expertise in the field of taxation and have passed a rigorous exam administered by the U.S. Treasury Department.
Ms. Dennis holds a Masters of Science Degree in Taxation from Golden Gate University and a Bachelor of Science Degree in Business Administration from California State University Dominguez Hills.
In addition to being a SEG Advisor, Ms. Dennis is the President and Founder of COHESIVE– a professional tax firm that employs distinguished tax professionals who specialize in complex tax situations, tax preparation and resolving tax issues.
Karla Dennis offers a complete tax and accounting service
to individuals and businesses. Because she has been working with clients and businesses for over 15 years, she has unsurpassed expertise in the field of accounting and taxation. Her track record includes not only preparing tax returns, but also representing clients in audits and collections issues before the Internal Revenue Service. The expertise of knowing what the IRS or other taxing authorities are looking for when your return is prepared is an indispensable benefit that she offers to her clients. Her expertise coupled with personalized service is the number one reason why clients come to her again and again. Her goal is to build a relationship with clients so they may have someone they know and trust to handle their tax and accounting needs.
Stone Equity Group (SEG) is a real estate network that is focused on assisting busy professionals build profitable real estate portfolios that cash flow. Over the last few years SEG has negotiated millions of dollars in discounts on behalf of their members and created a turn key system that takes care of everything from negotiations to property management. For more information on SEG visit Stone Equity Group.
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