I'm not wealthy but the wealthy have always provided me and everyone else with a job. I like my job and my wealthy boss. Also the more wealthy people there are providing jobs the better off the rest of us are that are not wealthy. Let's stop hurting the wealthy because we want a hand out rather than going to work. Get up and be American, work for the betterment of your life. Don't ask the government to do it for you. Congratulate those that have great success - not tear them down. I work very hard and have a plan to be successful and if I make it no one will have the right to say I didn't earn it or that I have to give some of it to others simply because they want it and they think I have too much. In a capitalist society each person can create their own wealth. There is no limit on how many people can be wealthy. Wealth does not need to be distributed out and never should be. Hurting the wealthy will only dry up their resources for the jobs they provide, and to produce new and better products for us all to enjoy and to make them unable to afford the many charities they do. If you think the government will be able to do these things in-place of the wealthy and make all our lives better you are ignorant to the realities that are around you every day.

• The government has forced retirement planning on all of us as a program called social security. That plan is going bankrupt and, on its own, never did provide enough for anyone to live on. But it sure is a big chunk of money out of each paycheck - Thanks for the "great plan" government.
• The government has forced us all to pay into Medicare and that program is going bankrupt and never really was much of an insurance plan because after you die your home, estate, and savings are all taken by the government leaving nothing for your loved ones - Thanks for the "great plan" government.
• The government has recently spent over $1 trillion dollars to spur the economy. What's the big news? The $1 billion for Cash for Clunkers actually worked and increased car sales. Where is the rest of the money? Are they really unable to do better than that? That is a huge failure rate. - Thanks for the "great plan" government.
• The government can't figure out how to secure our country from illegal immigration. We've all heard the many plans and billions spent to fix this problem. Is anything different? NO. - Thanks for the "great plans" government.

Here is a great idea. Let's turn our health care over to the government. I'm sure after completely failing on so many levels with so many other things they'll get this one right. We'll let's call a spade a spade. The government needs to do their job not everyone else's jobs. Government get out of my wallet, out of my home, out of my medical decisions, out of retirement, out - out - out.

There is no doubt government has a roll but when government reaches out of that roll it hurts us all, even the poor. The bigger government gets the less American our country becomes.

What Does a Trillion Dollars Look Like?

Last week the Federal reserve decided to inject ANOTHER trillion to buy treasury bonds and mortgage securities. In another words they simply decided to print another trillion dollars. So I thought you would really enjoy this graphic illustration to help you put that number into perspective.

$100

Start with a simple $100 bill.

$10,000

A packet of $100 bills worth $10,000 is less than 1/2 inch thick.

$1,000,000

This little pile of cash can easily fit into any backpack and weighs just about 22 lbs.

$100,000,000

$100 million fits neatly on any standard pallet, weighing in at a little over one ton.

$1,000,000,000

$1 billion is ten pallets worth of cold, hard cash.

$1,000,000,000,000

Finally, here's one trillion dollars:

Sources:
Deliveries Galore March 18, 2009

The Guardian March 25, 2009

Here is a letter I sent to my congressman:

Dear Sir,

I am writing you regarding the recent proposed Auto Industry bailout. I was in favor of the distasteful $700 Billion bailout but the American people need to stop there. We can not fall down this slippery slope of bailing everyone out that has a failing business. I relate this to terms that I understand better. I am a Landlord. Sometimes I have tenants that don't pay rent. When I first started as a landlord I'd try and help those in trouble and I found it was a bad idea. Helping them never fixed the problem it only enabled them to continue to live beyond their means and eventually rent would come due again. When I make the tough and painful decisions upfront my tenant would either be able to solve the problem on their own or downsized to a more affordable place. This is not only financially better for me it is better for them because they don't have a dark cloud hanging over them knowing that rent will be coming due again. The same principle applies to the auto industry. Figuratively speaking, cutting them a check will not solve the problem that "rent will come due again". Cutting them a check is not a solution. It enables the problem.

Utah Apartment Association Journal: Volume 76, No. 3 (July-August 2008)

Choosing a Property Management Company

(pages 12-13)

There are a certain percentage of people every year who find that their schedule or their

life is too hectic to continue managing rental property. If they don't want to get rid of

their investments by selling, a property management company can be a good option. It

can also be a good option that can allow you to own more real estate than you could find

time to manage yourself, and still experience the wealth-building power of real estate.

Jeremy Higginson, a real estate agent, mortgage broker and investor, says he is too busy

to manage his own property and it isn't really his niche, so he always hires a property

manager. "I find a good manager makes me more money in two ways," he says, "First,

since I don't spend time dealing with the tenants or the maintenance I can devote more

time to my primary businesses and make more money there. Second, I invest in property

for the long term. A good manager knows how to maintain that property and offset my

holding costs on that property so in five or ten years when I go to sell it, it will be worth a

whole lot more than it is today."

"My philosophy is set it and forget it," adds Higginson (about rental property).

Preparing to Hire a Manager

If you are a hands-on person who has managed your property for years, or if you tend to

micromanage, property management may not be for you. Owners who want to be

involved in every detail should probably not be using a property manager. There are great

companies out there, but the truth is you will probably not find anyone who would

manage your property exactly the way you would. Instead, you can find management

companies with good systems in place to manage and maintain your properties for the

long run.

Many conflicts between owners and managers arise over unrealistic expectations or

inability to let go and let someone manage. Before you pick a company, make sure you

are the kind of person who would not nag or interfere with your manager, and make sure

you give your manager enough authority and flexibility to be successful.

Be Realistic About Cash Flow

If the very most important component for you of owning property is cash flow, a property

manager may not be a good idea. Typically they will take a percentage of rent, and will

wish to spend a reasonable amount of money on proper maintenance and resident

retention. If you are so tight that you would stress about sitting empty for a month or two,

or that you would balk at making an appropriate repair, you may wish to reconsider.

Selecting a Company

When you begin to look for a company, remember to look first at companies that give

back to your industry by supporting your local apartment association and its government

affairs efforts. Next, you will want to look for someone who has a good track record and

can provide you with references of other owners they have worked with. Third, you will

want to find out their system for maintaining your property and retaining tenants. Lastly,

you will want to have a comprehensive understanding of how they make money, and

what charges you will pay for their services.

Systems and Service

Some owners make the mistake of thinking the most important service property managers

provide is to the owners themselves. While that is important, taking owners golfing or

providing amazing reports and updates means very little if the property itself is not being

well taken care of, or/and if there aren't good tenants receiving excellent service. So

while it would be nice to find someone who gives you good service, it is better that they

first provide good service to the property and the tenants.

Fees and Charges

To really understand how property management companies make you money, you need

to review how you make money off rentals. A very small portion of your return is your

cash flow. Other portions are your principle reduction and your tax savings. Probably the

biggest portion of your return comes in appreciation and your overall gain from owning

the property.

It has been said that good managers don't cost money, they make you money - and it

would be best to take this perspective when looking at a company's fees. Don't focus on

what they cost; focus on what value they provide. A low cost company that puts in

destructive tenants who beat up the property and lower its overall value actually costs you

more than a high cost company that puts in good tenants, properly maintains your

property so it appreciates ahead of market conditions, and keeps your tenants longer (so

you have less cost and down time).

Types of Charges:

 Setup fees - These are fees to set you up as a client.

 Management fee - This is usually a percentage of total revenue a management

company will take right off the top.

 Maintenance surcharges - A percentage of any bills paid or for handling

maintenance.

 Maintenance fees - Some companies have in-house maintenance, landscapers,

etc. which you are required to use that they may or may not have ownership

interest in.

 Leasing, marketing and advertizing fee - Many companies charge you a fee to

show or lease apartments.

 Service of notice/eviction fees - Some companies will charge you for serving

eviction notices.

 Tenant retention fees - These are incentives to a company to keep tenants longer

and therefore reduce your overall costs.

In addition to fees, management companies have other revenue sources - from tenants.

Many keep a portion of deposits renters pay, application fees, and service of notice fees.

Make sure you are clear on who gets what.

Avoiding Conflict

There are three things you can do to reduce the likelihood of conflict:

1. Make sure the company you use has a good management contract thatMost companies will want a specified initial term,

specifies charges and duties.

like a year, since they spend time and energy setting up and getting to know your

property. Many conflicts are created because there is not a good management

agreement up front.

2. Let the manager manage. Many owners think they know more than the manager

and insist on setting the rent and monitoring the tenants. A good manager is closer

to the front line and will have a better feel for rents. It is not uncommon for an

owner to insist upon a certain rent that is unrealistic, and then get mad at the

manager that the unit sat empty. Giving a manager the leeway to set rents at the

market rate and get good tenants is essential to success. Also, many owners refuse

to allow managers to spend the money necessary to keep and attract good tenants

by properly maintaining and improving the property. Make sure you allow the

manager enough money to make basic repairs, like fixing a furnace or A/C or

doing plumbing work, without having to get your authorization first. There have

been major problems when a manager can't get a hold of an owner and, say, a

furnace is out, something that can become a violation of Utah law. Don't allow

tenants to call you first. Require that they deal with the manager to resolve their

issues first.

3. Look to the long term. Don't panic if a manager can't rent a place immediately.

Sometimes it takes time to find the right tenant. Don't panic if a manager doesn't

pick perfect renters all the time. Sometimes even the best landlords get fooled and

have to evict. Make sure your manager is inspecting on a regular basis, and try to

attend one of those inspections at least once a year.

Picking a good manager may take time - time to conduct a thorough review of their

systems and management agreement, and check references. Allowing them the authority

and flexibility to effectively do the job is essential. Finally, having reasonable

expectations and recognizing that properties aren't always full, expenses happen, and not

all tenants are perfect will help you "set them and forget them," and ultimately be

successful in owning rental property.

With all the news going on about real estate lately, I have been asked, multiple times, if I am concerned about my real estate investments. My answer is always no. Utah is a great place to invest in real estate. Currently Utah is the envy of the rest of the country. The former Director of The Division of Real Estate for the State of Utah published a great article that gives a lot of valuable information to those of us that love and invest in real estate.

Reading or watching the news is rarely what one would call a positive or uplifting experience. Re­cent headlines are no exception. In fact, you might think the world is falling apart if you focused on the terms used to describe the real estate industry and housing market - words like crisis, deteriorating and collapse. While it is certainly true that many parts of the country are experiencing serious and in some cases even severe market adjustments, those doom and gloom headlines don't necessarily apply to our state.

So, while you may have read in recent news articles that "foreclosures are skyrocketing" you might be interest­ed to learn the fact that in Utah the number of foreclo­sures actually decreased. Yes, DECREASED. Maybe it doesn't make for the kind of eye-catching headlines that reporters are looking for, but it is a fact nevertheless.

Here are some more facts you may be interested to learn (and may even surprise you when contrasted to recent headlines). According to economic data re­cently released for 2007, Utah experienced population growth of 3.2%, which equates to over 85,000 new in­dividuals in our state. A telling sign for our economy is that over half of that 85,000 moved to Utah from out-of-state (anyone know of a good agent that could help find these people a home, or an appraiser, or mortgage broker?). The high number of move-ins is no wonder given that our state added almost 50,000 new jobs last year. Even though our economy has slowed somewhat recently, job growth for the end of December was still a healthy 3.6% (which is four times the national aver­age). Pay growth in Utah for 2007 surpassed the na­tional average at 5.5% and we had an extremely low unemployment rate of 2.7%. Given these numbers it is no surprise that Utah continually receives awards and accolades for our strong economy, including re­cently being named by the Beacon Hill Institute as "the most economically competitive state in the nation."

Besides the strong overall economic numbers, our state continues to post solid real estate numbers. Foreclosures are down and a recent quarterly re­port from the Mortgage Bankers Association showed Utah with the lowest foreclosure rate in the country for subprime ARMs. Like all things in the free mar­ket, real estate and housing rely on a healthy bal­ance of supply and demand. With some of the lowest rates in recent history and real estate on the market, supply is not a problem. Based on economic esti­mates that Utah will add another 85,000 people to our state this year, we can expect continued demand.

That said, it would be ridiculous to ignore the fact that real estate markets have tightened somewhat, even here in Utah. However, the economic indicators in Utah remain strong and the best way to overcome some of the ‘psychological' factors contributing to the slowdown of sales in Utah is to continue to grow our economy, so that people feel assured that this is still a great time to buy a home and invest in real estate.

It's a great time to invest in real estate. Contact my office about all your Property Management, Real Estate and Mortgage needs. I'd be happy to discuss any questions you may have or strategies you may be thinking of to get started in real estate or to improve and grow your current portfolio.

Sources: "Utah Division of Real Estate News" March 2008.