“Tough times never last, but tough people do.”  - Dr. Robert Schuller

Your new mortgage company sticks you with high interest. The best credit cards are out of your reach. You finally found that great new car and your loan application comes back with a big fat DENIED. None of these are situations anyone wants to find themselves in.

And feeling like you have the plague when it comes to people lending you money or trusting you to pay your bills stinks (just like your credit).

But, you CAN fix it… if you start putting time and money to the right uses...

Know the score
First, do not jump to use a credit repair company. A lot of what they do, you can do for free. Save your money, at least initially in your repair process. You’re going to need it.

Second, don’t be
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The real estate purchase contract (REPC) is the basis of just about every deal you do. Yet, very few investors really understand it fully. This blog will teach you some key aspects of the REPC that can make a big difference in your next deal.

The REPC is a binding contract between a buyer and seller of real property. They are the only “parties” to the contract. Your agent, title officer, lender and etc. are not bound by this document. Only the parties may sue to enforce it or for breach of it.

You’ve heard that “everything” in real estate needs to be in writing. While there are other ways to buy and sell real estate without a written document, don’t rely on those! Always put it in writing!! This means not just the REPC, but all addenda. It does NOT matter what someone promises, only what is in writing AND signed.

In the event of lawsuit, texts and emails, in certain limited circumstances, can be evidence to substantiate your position. BUT DO NOT RELY ON THIS! If you want it to happen, put it in writing and get it signed! And a title company cannot go off texts or emails to change terms of the REPC. Don’t trust other agents or investors when they say, “Yeah, I’ll sign it and get it to you.” That is meaningless and you don’t have an agreement until it’s actually signed. They can be
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"Most people give up just when they're about to achieve success." - Ross Perot

Using Sec. 1031 has long been handy as a tax-deferral tactic (aka “a 1031” or sometimes, “a Starker exchange”). It basically lets real estate investors avoid capital gains taxes when they sell property if they invest the gains into the purchase of more property. (There are many other conditions, which we’ll get to in a sec).

The 1031 has been especially good for landlords who juggle side-gig properties and who want to do their taxes a favor at the same time.

A kind of special swap

If you sell an investment property (residential or commercial), you typically must pay capital gains taxes on the profits. You can defer these taxes -- notice that I said “defer” -- by doing a special like-kind exchange under Sec. 1031 for another  property.

These exchanges are available no matter if you file taxes as an individual or as an LLC, C or S corporation, or other type -- pretty much any taxpaying owner of real propert
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We’re going to finish up our discussion of short-term rentals with a real estate investing topic called arbitrage. What is arbitrage?

Arbitrage, basically, is the simultaneous buying and selling of an asset. For example, if you lease a property from the owner (the “buying” part) then turn around and lease the property to a tenant (the “selling” part), that’s arbitrage. You are simultaneously buying and selling an asset. The terms “buying” and “selling” have a more broad definition that actually purchasing and selling real estate. In our world, what I just described is commonly known as a lease sandwich.

Another term you might be familiar with is wholetailing. This is where you actually do buy a property (you become the owner) but immediately sell it. In fact, it’s common that the investor will put it under contract for sale before she buys it. This is also arbitrage.

So why are we talking arbitrage, lease sandwiches and wholetailing? Because that’s how many real estate investors are picking up both short- and long-term rentals, and other deals. In the long-term rental world, that’s a lease sandwich. But you can do the exact same thing for short-term rentals.

The process is mostly the same and doesn’t matter how long you’re renting out the property fo
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If you’ve been following along, we’ve discussed the regulatory side and an introduction to the tax side of doing short-term rentals. Today we will discuss how to hold title and save on the self-employment taxes we mentioned last month.

First, hopefully you now understand that the rent you make from short-term rentals is taxed differently as active income. That means it’s taxed more like your flip projects that you run through an s-elected LLC. (We’ve done other blogs on s-election and tax savings! Go back and review some of those if you don’t understand how the s-election saves on taxes on ordinary income.) While is it totally fine to own your flip in an s-elected LLC, it is NOT good to own a rental property in an s-elected LLC. This is because there is a “sale of asset” tax that can apply when you transfer or sell an asset you’ve held for a long time. You don’t want to pay this tax!

So, just like any other rental property, you should “own” the property in an LLC that is taxes as either a single member or partnership. And if available to you in your state, a Series LLC. This will be the same LLC that you own all your other rental properties in. So that’s good news! You will own your short-term rental the same way you own all your rentals.

But what about the tax savings on thi
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As A Real Estate Investor, This Is  Where The Rubber Meets The Road

Usually, keeping track of numbers is tedious.

Check it out! What are the bene’s that make this task more attractive than the usual alternative…”Oh Geez. I’ve got a closing on Monday and I need financials.”

Your business obviously makes and spends money. The pluses and minuses add up (you hope) to being able to stay in business, and a look at the books tells you if your business is doing okay or headed for trouble.

What are your books telling YOU?

In our experience, it’s often the company’s financial system (or lack thereof) that makes the answer easy to discover or downright difficult.

Have you looked at your own business’s financial system lately? Would you know how to read between the lines to interpret what you see there?

Because a financial system for business s
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“Discussion is an exchange of knowledge; an argument an exchange of ignorance.” - Robert Quillen

No matter what industry you're in, or how far you go in your career, the ability to effectively negotiate can make the difference between success and mediocrity. You may have heard me quoted, "Be World Class At ONE Thing, Rather Than Mediocre At Everything!"

Whether it's a multimillion-dollar contract, a job offer, or a luncheon, here are some trenches-tested business negotiation skills that will bring you closer to your ideal outcome:

In the last blog, we talked about short-term rentals and the need to confirm the licensing and zoning issues that may apply. Here we are going to talk about the taxation of short-term rentals. What follows is a summary of some tax issues. This is NOT meant as tax advice. Please consult your own tax professionals.

Rented for Fewer than 15 Days During the Year – When a property is rented for fewer than 15 days during the tax year, the rental income is not reportable, and the expenses associated with that rental are not deductible. Interest and property taxes are not prorated, and the full amounts of the qualified mortgage interest and property taxes are reported as itemized deductions (as usual) on the taxpayer’s Schedule A. This would only apply if you rented out your residence or a vacation property on occasion.

The 7-Day and 30-Day Rules – Rentals are generally passive activities. However, an activity is not treated as a rental if either of these statements applies:

“Efficiency is doing things right. Effectiveness is doing the right things.” -Peter Drucker

When you go through hard times, financially, it's easy to believe that there's no light at the end of the tunnel.

But did you know that most people of great wealth were previously bankrupt at some point? (Just Google it. You'll see.)

In fact, it's often the "fire" of these times of trouble which serves to clarify things -- and get you into the place of making smart decisions, perhaps for the first time.

So, if you're feeling the financial heat right now, look out for the blessings in the midst of pain. I know it's hard -- but chances are, you're being reminded of what's REALLY important ... and often, seeing this again can be a launching pad for living the kind of life you really want to live.

How To Think About Growth
Money has no value unless you've got the time and good health to enjoy it. In fact, if you have to be p
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“Focus on being productive instead of busy.” -Tim Ferriss

Often, as we strive to keep our heads above water in these culturally crazy times, it's easy to lose sight of why we're all working hard each day. What is the goal? What is it we're trying to accomplish by earning wealth? For me -- and for many others -- the answer is cashflow independence.

Now, I would define this as "having an income sufficient for your basic needs and comforts from sources other than paid employment." Independence implies freedom. It's the condition of having saved and invested money so you can do whatever you choose. Whether you elect to keep working doesn't matter -- you have enough saved and invested to follow your dreams.

But is independence (in the monetary sense) just a pipe dream? Is it something only for the lucky and the strong? No, it's a goal that anyone can reach, if they're armed with some basic knowledge and make some smart choices.

As I see it, there are four keys to accumulating wealth:
1
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