Maryland

"The idiocy that I come across everyday in this business"

Yes... that is correct... the IDIOT real estate investors who somehow have seemed to survive as real estate investors in this market and are still out there making really stupid mistakes.

I am only going to relate one example... though I could write chapter and verse on the things I see and hear daily.

So... here goes... I will try to keep the story and the RANT short!

I routinely cruise a variety of real estate investor message boards to see what is happening, what's selling at what price, what questions are being asked, and who may be asking them.

Recently I have noticed a lot of questions being asked about landlord/tenant issues. Having learned the "land lording" business from the ground up I am amazed at some of the questions I am seeing.

Take for example a recent question and I paraphrase... "the lease is up within 4 days, tenants have not signed new lease and have avoided me, do I have the right to throw their stuff out... what about the security deposit? They have now left me with at least a month of having to pay the mortgage."

I read stuff like this and I want to scream... I want to scream to this person that they do not deserve to own this or any property because they have no idea what they are doing... and quite possibly could end up in jail (perhaps only there will they learn the lesson of you need to know what you are doing if you are to succeed) as a result of their ignorance. In case you were wondering there is at least one and possibly two items in this investors comments above that in most localities could get them put in jail!

Now for those of you who want to give this person a break by pointing out... But, Pete they were trying to learn the process by asking the right questions... I would say to you...

"The time to educate yourself occurs long before you need that education"

To think that you can learn on the fly in this business, in this market... is just plain STUPID!

So why am I taking such a hard stand in this blog post? It's simple... no real estate investor needs to struggle like I have seen and heard in this market. No investor needs to put their family or financial situation as risk in this market.

There are plenty of lessons already learned by successful real estate investors that can ease the way for your success... But first you need to seek out those who have learned these lessons.

Oh... and for that investor with the pressing questions... I wish them the best of luck... and hope that at the very least they hire a qualified property manager before they get themselves into real trouble.

To Your Success...

Pete

If you found this post to be of value, I would be honored if you passed it on to others who may benefit.

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Peter R, Giardini is the founder of The Club, Real Estate Mastermind a National Real Estate Investor Coaching program whose philosophy is that real estate investing coaching/ mentoring can only be provided by experenced "local" coaches in a one-on-one environment. To find out more about The Club visit http://www.theclubmastermind.com</font>or send an email to info@theclubmastermind.com</font>.

You can listen in and participate in Pete's Real Estate Investors' Mastermind radio show every Thursday night at 11:00PM on BlogTalkRadio... www.blogtalkradio.com/peter-giardini</font>. Copyright 2009, All rights reserved.

TAKE A LOOK AT MY NEW CARDS COURTESY OF DARK RISING GRAFx LLC! If you want to contact them visit their site @ http://www.darkrisinggrafx.com/index.html or via email @ darkrisinggrafx@aol.com or by phone at 443-802-1335. They can do business cards, flyers, menus, ads, postcards, and anything that you want done! Make sure to tell them where you saw their information and that I referred you to them!

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If you are considering listing and selling your Baltimore County or Harford County Maryland real estate, I can provide a FREE HOME EVALUATION REPORT also known as a Comparative Market Analysis Report (CMA). The report will detail all of the Baltimore County or Harford County homes comparable to yours that have recently SOLD in your immediate market area! CLICK HERE TO GET YOUR FREE BALTIMORE COUNTY OR HARFORD COUNTY MARYLAND HOME VALUE REPORT AND TELL ME A LITTLE ABOUT YOUR HOME!

Are you searching for a new place to call home in MD, PA, VA, DC, or WVA? Then CLICK HERE FOR A FREE MLS SEARCH AND SEE ALL OF THE ACTIVE HOME LISTINGS! They are directly downloaded from the same MLS system the real estate agents use! This database will show you ALL of the property addresses and you will also be able to search for open houses! Additionally, if you are RELOCATING TO BALTIMORE COUNTY OR HARFORD COUNTY MARYLAND CLICK HERE for more resources.

CLICK HERE TO SET UP YOUR OWN CUSTOMIZED FREE LISTINGS EMAIL NOTIFICATION! Here is your chance to be notified via email of all the new listings in your selected areas that meet your criteria, ABSOLUTELY FREE! Not only will you be notified by email of all the new listings that meet your criteria from my website, I will also enter your property search criteria into the local MLS system so you will get to SEE ALL OF THE NEW LISTINGS THAT ALL OF THE AGENTS SEE as soon as they hit the market!

FOR MUCH MORE INFORMATION ABOUT REAL ESTATE IN MARYLAND VISIT

Michael D. Klijanowicz
Top Office Individual Producer
(Top Listing Agent & Top Sales Agent)
Long & Foster Perry Hall

(800) 514-7355 X3158 Office
(410) 236-3331 Cell - Direct

http://www.isellmdhomes.com/


Serving Buyers & Sellers in the
Greater Baltimore & Harford County Metropolitan Areas

CONTACT ME FOR MORE INFORMATION - FREE CONSULTATIONS AVAILABLE!

Buyer Agency Protocol

Recently, I heard a question asked from a Buyer about Buyer Agency Protocol. The particular Buyer had been working with a Real Estate Agent for about a month, but without a Buyer Agency Agreement. Eventually, the Buyer found a house on his own and worked directly with the Seller to write the contract. The Agent was not involved.

Afterwards, the Buyer posed the question: "What is Realtor protocol in this type of situation, because I want to be fair?"

In that month, prior to the Buyer going out on his own, the Agent had done copious amounts of work for him. Naturally, the Buyer did not want to take advantage of this Agent.

So, Mister Buyer are you willing to pay that Agent 3% of the purchase price for that deal that you made without him. Not likely. In actuality, it is more likely that you are thinking of paying him a couple hundred dollars, if that.

Let me see if I can determine how this works.

• I have a mortgage. I will call them and ask what is protocol. Can I stop paying my mortgage? Oh, that's right; that has already been answered. Look at all of the Foreclosures and Short Sales.
• I have a credit card that I have been using. I will call and ask if I need to pay the balance. Oh, I can declare bankruptcy and not pay any of it.
• If I go to the emergency room, do I need to pay for the medical service?
• . . . .
• Can I use a Real Estate Agent for nothing?!!

Some Agents are okay with this scenario. "Oh gosh; don't worry about it; just send me referrals."

"Darn right I will send you referrals; you are the cheapest guy in town."

But now I ask, should his question have been reworded. Perhaps to something like "What is Buyer protocol . . . ?"

Should a Buyer pay for the services that he receives, for any service or product, or should he expect that everything should be free? "Let's spread the wealth around", the wealth which will not exist if everyone thinks that they are entitled to everything regardless of what it costs.

That's it for now.

WHAT IS THE NEW AND IMPROVED HOME BUYER TAX CREDIT?

The First Time & Repeat Home Buyer Tax Credit is an incredible incentive that has been included in the enhanced stimulus package which makes it EASIER and MORE AFFORDABLE than EVER to buy a home - through a tax credit of up to $8000 for First Time Buyers and $6500 for Repeat Buyers in government incentives as part of the brand new enhanced economic stimulus plan that was just recently passed and enacted into law by Congress. Couple that with Mortgage Lending Rates at ALL TIME LOWS and sellers who are willing to accept significantly less than full price offers and are also willing to contribute towards your closing costs, NOW IS THE TIME TO BUY A HOME!

WHO QUALIFIES FOR THE 1^st TIME & REPEAT HOME BUYER TAX CREDIT?

First time Home Buyers are defined as someone who has not owned a home within the LAST 3 YEARS. Repeat Buyers who are eligible to claim this credit must have owned their current primary residence for a minimum of 5 years.

WHEN DOES THE 1^st TIME & REPEAT HOME BUYER TAX CREDIT END?

The First Time & Repeat Home Buyer Tax Credits are only for executed contracts of sale between NOW and APRIL 30, 2010. You must settle on or before JUNE 30, 2010 in order to be eligible to claim the credit on your tax return.

HOW DO YOU GET YOUR CHECK FOR THE TAX CREDIT?

The simple answer is when you file your tax return. However, there are several ways you can do this:

1) If you have already filed your 2008 tax returns, you could always file an amended return claiming the credit;

2) If you have already filed your 2008 tax returns, you could always wait until you file your 2009 returns.

OTHER IMPORTANT RULES & NOTES ABOUT THE HOME BUYER TAX CREDIT!

1) Must owner occupy the property for 3 years as a principal residence. (SORRY, NO INVESTORS)

2) Maximum credit is up to 10% of the purchase price with a maximum amount of $8000 for 1^st Time Buyers & $6500 for Repeat Home Buyers (Purchase a home that is $80,000+ & you should be able to claim the full credit).

3) If you make more than $125,000 a year (or $225,000 jointly) the credit is less and eventually phases to zero.

4) The home being purchased must be under $800,000

5) Members of the military that have served outside of the U.S. for at least 90 days from January 1, 2009 to May 1, 2010 have the deadlines automatically extended for 1 additional year.

6) If you are selling your home as a REPEAT BUYER you must settle January 1, 2009 or later in order to claim the credit.

DISCLAIMER: YOU should ALWAYS consult with your own TAX PROFESSIONAL to see how this rebate affects your own situation. We are not accountants and are not qualified to give you tax advice on your situation.

STAY TUNED FOR ADDITIONAL DETAILS AS I WILL BE SURE TO SHARE THEM!

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THIS JUST IN AS SOME MORE INFORMATION TO ADD TO THIS POST! (UPDATED 11/7/09)!

First Time Homebuyer Tax Credit Extended Into 2010! Plus...A New Tax Credit for Certain Existing Home Owners! It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time. So Who Gets What? The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn. Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Deadlines In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Higher Income Caps in Effect The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible. Maximum Purchase Price Qualifying buyers may purchase a property with a maximum sales price of $800,000. First-Time Homebuyer Tax Credit - Frequently Asked Questions Here are answers to some commonly asked questions about the tax credit. What is a tax credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence. What is the tax credit for first-time homebuyers (FTHBs)? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000. Who is eligible for the FTHB tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500. How do I claim the credit? For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf). Can you claim the tax credit in advance of purchasing a property? No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place. Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property? Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due. You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild. You do not use the home as your principal residence. You sell your home before the end of the year. You are a nonresident alien. You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.) Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.) You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009. Can you buy a home from a step-relative and be eligible for the credit? Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed. Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit? Yes. Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years? No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA. If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

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If you are considering listing and selling your Baltimore County or Harford County Maryland real estate, I can provide a FREE HOME EVALUATION REPORT also known as a Comparative Market Analysis Report (CMA). The report will detail all of the Baltimore County or Harford County homes comparable to yours that have recently SOLD in your immediate market area! CLICK HERE TO GET YOUR FREE BALTIMORE COUNTY OR HARFORD COUNTY MARYLAND HOME VALUE REPORT AND TELL ME A LITTLE ABOUT YOUR HOME!

Are you searching for a new place to call home in MD, PA, VA, DC, or WVA? Then CLICK HERE FOR A FREE MLS SEARCH AND SEE ALL OF THE ACTIVE HOME LISTINGS! They are directly downloaded from the same MLS system the real estate agents use! This database will show you ALL of the property addresses and you will also be able to search for open houses! Additionally, if you are RELOCATING TO BALTIMORE COUNTY OR HARFORD COUNTY MARYLAND CLICK HERE for more resources.

CLICK HERE TO SET UP YOUR OWN CUSTOMIZED FREE LISTINGS EMAIL NOTIFICATION! Here is your chance to be notified via email of all the new listings in your selected areas that meet your criteria, ABSOLUTELY FREE! Not only will you be notified by email of all the new listings that meet your criteria from my website, I will also enter your property search criteria into the local MLS system so you will get to SEE ALL OF THE NEW LISTINGS THAT ALL OF THE AGENTS SEE as soon as they hit the market!

FOR MUCH MORE INFORMATION ABOUT REAL ESTATE IN MARYLAND VISIT

Michael D. Klijanowicz
Top Office Individual Producer
(Top Listing Agent & Top Sales Agent)
Long & Foster Perry Hall

(800) 514-7355 X3158 Office
(410) 236-3331 Cell - Direct

http://www.isellmdhomes.com/


Serving Buyers & Sellers in the
Greater Baltimore & Harford County Metropolitan Areas

CONTACT ME FOR MORE INFORMATION - FREE CONSULTATIONS AVAILABLE!

© Copyright 2009 By Michael D. Klijanowicz, All Rights Reserved*

The Vacant Lot

It was a listing of mine, this vacant lot of about 1.5 acres. The area was developing and it was becoming feasible to build on the lot, which was previously in a rural area without sewer systems. The lot did not pass a perc test, but with new development in the area, public water and sewerage systems were becoming available.

The adjacent lots to the right and to the left, which were of a similar size, already had houses, but up to this point these property opwners also had the benefit of an open lot being next to them. These were the first people that I approached about purchasing the property. They both declined the offer, afterall, they already had the benefit of the lot without having to purchase it.

So I opened up the marketing to the broad MLS market and beyond.

There was plenty of interest, but also plenty of discouragement from the adjacent neighbors.

Here is some of what happened.

• The back portion of the lot was a bit overgrown with sticker bushes, but was passable. Nonetheless, I came prepared with gloves so that I could push the stickers aside as we made our way to the back of the lot. I got there before my clients and fortunately so. I was out of my car for about a minute when the neighbors unleashed their pit bull, which decided to charge right for me. I could do nothing but hold my ground. You have heard how dogs can sense fear; well, I gave a stance of bravado. Remember, I had my gloves on. Keep coming pooch, you're going down. Apparently they can sense more than fear as he wussed out about half way to me and headed back to his house. Whew! That was a close one.
• On another visit, the other neighbor decided to get into the act. This neighbor's lawn was neatly trimmed, but for some reason, he thought that he should crank up the tractor. It seemed that he thought that the area that formed a circle around my car was what needed some extra trimming. This required a different tact than the pit bull. I got out of the car and got his attention. He stopped and we had a cordial conversation. This calmed him down. It seems that his heart was not really into this bullying stuff.
• The next showing came and neighbor number one was at it again. The pit bull didn't do the job, so weapon number two was unleashed. Little Naked Billy came out of the house and started dancing all around the lot. That's right, a 4 year old boy with no clothes. This was more comical than intimidating. Eventually Little Naked Billy went back into the house. Perhaps he stepped on a sticker or two.
• The next showing came and the neighbors were not out of weapons. Out came Spittin' Marge, an eleven year old or so girl, who started spitting in my direction. Actually, I could not believe it. When I left the showing, I circled back just to see if she was a chronic spitter or whether she was really targetting me. There she was at the end of the driveway spitting in my direction once again. Although disgusting, it, too, was rather amusing.

Eventually, the lot sold and the new owners put up a new house. I have not heard any horror stories, so I guess they must have been accepted.