About Clallam County, WA

Port Angeles Real Estate Tips & Tricks!.....

The first years of my real estate investing in Port Angeles WA, I ran my business as a sole proprietor because I really didn't know any better. Luckily, I survived with only minimal damages, but there comes a point when it is time to assess the best legal structure to use for Port Angeles real estate investing.

If you ask 10 experts you are likely to get 10 different opinions. With that in mind, I'll share my opinion and experience. Remember: free advice is always worth what you pay for it.

If you are a beginning investor, it's probably best to not worry about asset protection until you actually have a few assets to protect. Why spend time and money setting up a business entity and creating tax reporting requirements unless you need to? It's like buying full coverage auto insurance on a beat--up Gremlin...what's the point?

Once you have assets and something to protect, then it's time to set up your business structure. Question # 1: what is your net worth? Question # 2: do you have assets that are at risk? If the answer to either of those questions is, "Yes," then you need to take the next step.

Assuming you want to set up an entity for wholesaling Port Angeles properties, the most popular are an LLC (Limited Liability Corporation) or a C Corporation. There is much debate about which one is better, but I prefer the C Corporation because the first $50,000 is taxed at 15% and you can have a kick-butt employee welfare plan to write off many expenses. With an LLC, the income is passed through. If you start making money, you'll wish you could pay only 15% on some of it! Trust me on this one.

Why is the tax issue such a big deal?

Here's a simplified example. If you make $100K personally you are taxed on the full amount (35%) and have $65,000 left. Anything you buy for yourself comes from after-tax dollars. However, with a C Corporation if you could make the same $100K on paper, but have $50K in allowable expenses that you can write off. So you get taxed on that $50K at 15% and only have to pay $7,500 in taxes compared to $35,000 on your personal income.

What type of expenses can you write off in a C Corporation? It depends on how your Port Angeles Company is structured (see your accountant/attorney for details), but you can often write off basic expenses of things like a bed or even a swimming pool. You're thinking, "No way!" Let me explain how it's done. If you have an employee welfare plan that covers your medical expenses and your doctor gives you a prescription for aqua therapy, it's possible to write off the cost of the swimming pool. Yes, it's crazy, but I don't make the laws. Another more common example is a prescription for a new bed if you have a bad back. I have a "Sleep Number" bed myself, just like Paul Harvey J.

A very wealthy man once told me "It's very hard for a C Corporation to make any money!" What he was trying to illustrate was that C Corporations can expense pretty much everything and look like there is little or no profit. You still can buy the same stuff, but you are taxed less if you structure things correctly.

There is a lot of free information available to you about buying, selling or investing in Port Angeles real estate. For complete information about the Port Angeles real estate market including, current homes for sale, property values, foreclosures, short sales, relocating information, .....Really..... Providing everything you need to know about Port Angeles Washington Real Estate ....

Please visit my website at: http://PortAngelesRealEstateServices.com

Please feel free to contact me (Steve Edwards) at anytime. I'll be happy to answer / address any questions or concerns you may have. Call me... I can be reached on my cell at: 360-809-3064 or by email at steveedwards@olypen.com

Port Angeles Real Estate Tips & Tricks....

Before you sell yourself short, talk to a Port Angeles mortgage company. Many lenders are more than happy to lend you money for a lucrative project, because it means profitable business for them too.

Construction loans are the backbone of many Port Angeles mortgage company portfolios, and if you own a vacant lot that has market value, lenders will normally lend you money based on the collateral of the vacant lot. You get cash to build a new house in Port Angeles, and after you sell the completed project you can pay back the loan and pocket the profits.

Other construction loans allow you to borrow money from the Port Angeles builder's own sources, in the same way that you might borrow money from an auto dealer to pay for the car you buy from them. Construction companies with their own mortgage sources may charge you higher interest rates, however, than conventional lenders.

Shop around for construction loans available to you here in Port Angeles WA. More often than not, deciding on a builder and the best source of funds will take longer than it actually takes to build the house, but it is time well spent. A few interest rate points can make a difference of thousands, or hundreds of thousands of dollars. Talk to lots of Port Angeles lenders and builders before you make your decision on whom service to use.

There is a lot of free information available to you about buying, selling or investing in Port Angeles real estate. For complete information about the Port Angeles real estate market including, current homes for sale, property values, foreclosures, short sales, relocating information.....Really..... Providing everything you need to know about Port Angeles Washington Real Estate ....Please visit my website at: http://PortAngelesRealEstateServices.com

Please feel free to contact me (Steve Edwards) at anytime. I'll be happy to answer / address any questions or concerns you may have. Call me... I can be reached on my cell at: 360-809-3064 or by email at steveedwards@olypen.com

Port Angeles Real Estate Tip & Tricks.....

Port Angeles WA. Commercial real estate is distinctly different from residential real estate. The terminology is very different and here is a list of new terms from A to M.

Commercial Terms

According to Value: The value of the property when computing property taxes.

Build to Suit: A customized design and build approach for a single tenant space usually resulting in a single occupant building which is then leased or sold to the Port Angeles tenant.

Certificate of Occupancy: Issued by our local Port Angeles city building department and is a necessary requirement prior to moving into the space.

Common Area Maintenance: Typically an annual charge assessed to tenants based on their percentage of occupancy to pay for maintenance of parking lots, bathrooms and open areas.

Demising Wall: A wall between two separate suites in a building with multiple Port Angeles tenants. In many states, the demising wall must meet specific fire safety standards.

Flex Space: A Port Angeles building providing mixed-use space such as an area combining an office and warehouse.

Gross Square Feet: Usually refers to gross footage of a building. GSF is typically arrived at by calculating the footage from the outside of exterior walls multiplied by the vertical footage.

HVAC: Refers to the climate control systems for a building's including heating and air conditioning.

Mechanic's Lien: A legal claim typically filed by a subcontractor to obtain payment for services rendered. The claim arises under our WA. state law and is dependent on each states particular law.

Unlike Port Angeles residential real estate, commercial real estate is primarily considered a business transaction. Learn the terms and you're well on your way to moving smoothly through the process.

There is a lot of free information available to you about buying, selling or investing in Port Angeles real estate. For complete information about the Port Angeles real estate market including, homes for sale, Land for Sale, buyers and sellers info, home values, relocating information ...Please visit my website www.PortAngelesRealEstateServices.com There you'll find everything you need to know about Port Angeles Washington Real Estate

Feel free to contact me (Steve Edwards) at anytime. I'll be happy to answer / address any questions or concerns you may have. Call me anytime ... I can be reached on my cell at: 360-809-3064 or by email at steveedwards@olypen.com

Here the term "Real Estate Investing" and the typical Port Angeles buyer or investor probably imagines some Herculean figure who has tons of cash, guts, or both. The truth is real estate is blown way out of proportion for some in terms of its sheer mystique. The bottom line is real estate is the number 1 way for the average Joe and Jane to add to their bottom line in a big way.

The first thing you should do is think differently. Instead of looking at someone like Donald Trump and say, "Wow, I can never be as smart as that guy." Transform your mind to say "What do I need to learn and do to achieve the levels of success in Port Angeles real estate that I deserve!" Don't be a lemming (that's what got you in the financial rut in the first place!) by using the same exact words. Feel free to carve your own personality from that same bold statement.

Oh man, do I really have to go to the library as well as go meet people. Yes! Real estate is a people business. And knowledge will help make you more effective in working with people in the context of the business you select. You can start by joining a Port Angeles real estate club with like minded individuals. Look around, what are they investing in? Chances are, it's in residential properties. And if you speak with some of them, you will realize not all of them were millionaires to start off with.

Owning a residential property in Port Angeles WA. can be a good first step because it allows you to gain appreciation in value over time, which thereby increases your net worth as well. Your ability to leverage that value increases as well via methods such as refinancing which can provide additional investment capital for you.

Overcoming the mindset of negativity or impossibility in investing in Port Angeles real estate is the first step. If you decide you want to build long term wealth, and feel real estate is a good place to invest in, and then keep at it, and it's only a matter of time and effort before you become one of those Herculean figures that everyone feels daunted by. Perhaps you can educate them on the reality then.

There is a lot of free information available to you about buying, selling or investing in Port Angeles real estate. For complete information about the Port Angeles real estate market including, homes for sale, Land for Sale, buyers and sellers info, home values, relocating information ...Please visit my website www.PortAngelesRealEstateServices.com There you'll find everything you need to know about Port Angeles Washington Real Estate

Feel free to contact me (Steve Edwards) at anytime. I'll be happy to answer / address any questions or concerns you may have. Call me anytime ... I can be reached on my cell at: 360-809-3064 or by email at steveedwards@olypen.com

I know your time is valuable and I'll make every effort to respond to you within the hour. As always, your privacy is - "100% guaranteed".

Thank you for your time!

Steve Edwards

Port Angeles Real Estate Tips & Tricks!....

The single most common mistake that a note holder makes when creating a note is that they fail to check their Port Angeles buyer's Credit Report. It seems so simple, but it is worth repeating "Most people fail to check the credit report of their prospective buyers!!" Can you believe this? Just by doing this one simple step can save you a bunch of money now and in the future.

How so? First and foremost by checking your potential Port Angeles buyers credit score can help resolve your worries of your buyer's ability to repay their future debt to you. Heck, I don't know of any local Port Angeles bank that would not check the credit score of any one of their customers seeking a mortgage. So why shouldn't you?

The second benefit of checking your Port Angeles buyer's credit score is what if you should ever decide to ever sell your real estate note, trust deed, or owner financed mortgage for all cash? By knowing your buyers credit score would not only benefit you now, but it would also make your real estate note more valuable in the future.

Here's why. The first thing a promissory note buyer/investor is going to require to sell your note is your payer's credit score! Your Port Angeles buyer's credit score is paramount to how much money you will ultimately receive for your real estate note. Of course the higher the credit score the less risky it is to a perspective promissory note buyer, thus making your note more valuable to them and ultimately you.

So, just what is an acceptable credit score concerning a real estate note? That is entirely up to you, but if it was my note I would not accept a score of less than a 550. The credit score counts for 40 percent of a total of 100 percent in rating your real estate notes value. So whether you are creating or selling your real estate note it pays to get your Port Angeles buyers credit score in more ways than one.

There is a lot of free information available to you about buying, selling or investing in Port Angeles real estate. For complete information about the Port Angeles real estate market including, homes for sale, Land for Sale, buyers and sellers info, home values, relocating information ...Please visit my website www.PortAngelesRealEstateServices.com There you'll find everything you need to know about Port Angeles Washington Real Estate

Feel free to contact me (Steve Edwards) at anytime. I'll be happy to answer / address any questions or concerns you may have. Call me anytime ... I can be reached on my cell at: 360-809-3064 or by email at steveedwards@olypen.com