How To Find The Right Painter!

A Real Estate Investor can quickly add value by painting the exterior of a distressed property. If you are like us, hate painting (long story), we hire someone.

While painting to add value to the distressed property, dealing with contractors are going to be one of your biggest headaches. Last year over 3,000 complaints and lawsuits were filed against painting companies in South Florida. Remember, you get what you pay for!

Below are questions you need to ask to protect yourself and guarantee the paint job is without unpleasant surprises!

Before - When we Bought It!

Here we go:

• INSURANCE
  • Do they have an insurance policy with an insurance company or are they "self-insured"?
    • Very few moving companies carry genuine insurance. All other painting companies are "self-insured" even though their advertisement might say that they are "insured for your protection".
    Almost There!
    • Estimate should include FREE full-coverage insurance - up to $10,000.
• BONDING
  • Are they bonded? If they are, it should be on their "Certificate of Insurance". Most companies are not bonded. Don't accept any excuses why they are not. You won't be protected.
• BUSINESS STANDING
  • Is the company a member of the Better Business Bureau?
  • If so, call and request a report of their standing.
  • Will they provided you with 3 current references upon request?
• PRICE
  • Ask for two comparison quotes.
    • Get one quote based on your entire job.
    • Get a second quote based on a calculated "real-time" hourly rate.
  • This way we are assured to always get the better price!
Finished - Yeah Baby!
• Do they subcontract their work or perform it themselves?
  • We hired a paint contractor and he subcontracted the job. Job was finished and we paid the contractor. Found out later the contractor never paid the subcontractor. Be careful because you may be liable to the subcontractor.
• Do they offer written guarantees of their work?
• What products do they use?
  • Type of paint and sheen, stains,...
  • Are they environmentally friendly?
  • Types of brushes and rollers.
• Are they specific by providing in writing the job specifics? Like:
  • About which surfaces you want to have painted (walls, trims, moldings, ceilings, etc.)
  • The paint colors and finishes you want used.
• Do they provide a written contract?
  • Review it carefully.
• Dis and re-connect of items as a result of painting?
• Provide references upon request?
  • At least three.

Painting can be a tedious task and as a homeowners and investors ourselves, we understand the concerns and worries that come with it.

Related Links, Blog Postings, Presentations or Articles:

• Good Social Media Site: About.me
• Real Estate Info Videos RSS feed playlist.
• Hash Tags: #realestateinvesting
• Profile + Tags: +realestatepaintingjobs
• Real Estate Investing Tip: Looking for an owner? Look up on the internet the property tax roll data for that asset. The address they have on file is where the tax bill is being sent.

Written by +Bob Burns.

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Why so Serious? +Real Estate Investor about.me/RobertKBurns Tel: 305-586-5280 sec8@planocho.com

Follow US Baby!

Section 8 Waiting List Openings in other Regions. Uh?

Should we cover Section 8 waiting list openings Nationwide?

We have been wrestling with this question for a while now! REIC is pretty connected to Section 8 Wait List openings in the Southeastern region, since a majority of our clients / readers are from South Florida. Should we care about other regions of the US concerning Section 8 Wait List Openings? YES! We should cover the whole US, Section 8 office by Section 8 office.

Here is our Justification!

Why is this important to our investors, blog readers and tenants? Miami Florida is the gateway to Latin America and the Caribbean. As a result, we have every nationality from these regions calling Miami, Florida their home. This does not mean they don't have relatives living in other parts of the United States.

Look at my background! I was born in Germantown, Philadelphia, Pennsylvania but I am calling Miami, Florida my current home. The rest of my family lives in New Jersey, Pennsylvania, Rhode Island, California, etc.

A Section 8 or Plan 8 Wait List opening in New Jersey may not be important to the folks living in Miami but maybe their relatives in New Jersey could act on this information. Word of Mouth, Baby!

Here are several other reasons we feel we should cover all the Section 8 or Plan 8 Wait list Openings:

• Section 8 Vouchers are Portable.
  • See our posting about Section 8 Portability.
• People don't like South Florida and want to move to another state or region.
• Family Issues like death, health, divorce, empty nest, etc.
• Better Jobs and Salaries.
• Economic Hardship.
• The Weather in South Florida! Hurricanes, Heat, Humidity…
• Competition for the available Section 8 Vouchers and Wait List Openings.

We are sure you can add several other reasons why you want to move away or to South Florida.

So in the future we will be announcing Section 8 Waiting List Openings throughout the United States.

If you hear about any Section 8 Waiting List Openings please contact us at our email address below. We could use your help!

Oh by the way, below is a Section 8 Wait list Opening:

• Arizona
  • Section 8 Wait List of Cochise County, Arizona is currently Open

So starting today, we will TRY to cover all the Section 8 Wait List openings Nationwide.

Related Links, Blog Postings, Presentations or Articles:

• Check out our new blog:
  • Section 8 Miami: http://www.section8mia.com
• Section 8 Power Point Slide Show on Slideshare.net
• A REIC blog posting with a Section 8 Podcast

Written by +Bob Burns.

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Going Nationwide Baby! Real Estate Investor about.me/RobertKBurns Telephone #: 305-586-5280 email: sec8@planocho.com

Our Internet Footprint:

Ten Reasons Why Your Real Estate Deal Fails at the Closing Table!

Having bought and sold many properties I can tell you that deals can blow up right at the closing table.

When I decided to buy my first home in Miami, Florida due to my wife's pregnancy the deal blew up in less than 45 minutes into the closing. I was going to sell my 1 bedroom condo on Brickell Avenue and purchase a 3/2 home in Coconut Grove on the same day! What could go wrong?

Mistake!

The Buyer of my apartment came to the closing but could not close the deal due to late arrival of the bank funds. The Tile Company refused to close that afternoon and wanted to do it the next morning.

Well needless to say, I was MAD!

I was going to use the excess monies from that Brickell Avenue deal as a down payment on the Coconut Grove purchase.

The current owner of the Grove House threatened to take my $12K deposit since we couldn’t close on the contracted date.

Thank God I had an attorney draw up the contract. There was a "subject to funding" clause in the contract

Note: Always have a Real Estate Attorney review your contract template. Check our Service Providers List for our preferred real estate attorney in South Florida.

The next day we closed but I couldn't sleep that night.

Soooooo….just because you have a contract doesn't mean you're going to close!

Below is a list I put together with help from Joseph F. Suarez that provides Ten Reasons Why Your Deal Fails at the Closing Table! (Sellers Beware):

1. You Contract is not Correct – Too many mistakes can occur right here like wrong Platt numbers, improper property description, wrong dates, etc.

2. No Financial Commitment By the Buyer
   1. No Money in Escrow

3. Title Problems
   1. More/Different Sellers on Title
   2. Seller Not on Title
   3. Illegal Title Transfer

4. Buyer has Collections & Judgments
   1. Check out the Buyer

5. Deteriorating Market – Current Real Estate Market
   1. Deteriorating Market Value
   2. Deteriorating LTV Ratio .
   3. Deteriorating Interest Rates

6. Open Permits and Liens – Hurricane Andrew caused a lot of problems with Open permits in Southern Dade County. I can’t tell you how many times I have been nailed on this item!

7. Fraud/Foreclosure/Google – Again, Buyer Beware!

8. Water & Waste Lien – This problem appears a lot with commercial properties that only have one water meter.

9. Property Doesn't Qualify for Financing – Tax rolls list it as a 2/1 one but you think you are buying a 3/2 Uh?!

10. Uninsurable Property – Property in a Flood zone, property not up to current code, etc.

Related Links, Blog Postings, Presentations or Articles:

• Can't Find a Good Real Estate Attorney? Check out this list of Real Estate Service Providers.

Written by +Bob Burns.

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Yeah Baby! Real Estate Investor about.me/RobertKBurns Telephone #: 305-586-5280 email: rkburns@investmentpropertiesmiamiflorida.com

Our Internet Footprint:

7 Reasons to Use a Land Trust

I was cruising my directory for articles that I have been collecting and I came across this one about Land Trusts. I can't tell you how many times a Land Trust has saved me while taking ownership of a property. If you are a serious real estate investor, YOU MUST master this asset protection method. You will reap many benefits, financially and legally.

The land trust is a very powerful tool for the savvy real estate investor. A land trust is a revocable, living trust used specifically for holding title to real estate. Each property is titled in a separate trust, affording maximum privacy and protection.

Here are seven reasons to use land trust for titling property to real estate:

1. Privacy: In today’s information age, anyone with an internet connection can look up your ownership of real estate. Privacy is extremely important to most people who don’t want others knowing what they own. For example, if you own several properties within a city that has strict code enforcement, you could end up being hauled into court for too many violations, even minor ones. Having your real estate titled in land trusts makes it difficult for city code enforcement to find who the owner is, since the trust agreement is not public record for everyone to see.

2. Protection From Liens: Real estate titled in a trust name is not subject to liens against the beneficiary of the trust. For example, if you are dealing with a seller in foreclosure, a judgment holder or the IRS can file a claim against the property in the name of the seller. If the property is titled into trust, the personal judgments or liens of the seller will not attach to the property.

3. Protection From Title Claims: If you sign a warranty deed in your own name, you are subject to potential title claims against you if there is a problem with title to the property. For example, a lien filed without your knowledge could result in liability against you, even if you purchased title insurance. A land trust in your place as seller will protect you personally against many types of title claims because the claim will be limited to the trust. If the trust already sold the property, it has no assets and thus limits your exposure to title claims.

4. Discouraging Litigation: Let's face it, people tend to only sue others who appear to have money. Attorneys who work on contingency are only likely to take cases which they can not only win, but collect, since their fee is based on collection. If your properties are hard to find, you will appear "broke" and less worth suing. Even if a potential plaintiff thinks you have assets, the difficult prospect of finding and attaching these assets will discourage litigation against you.

5. Protection From HOA Claims: When you take title to a property in a homeowner’s association (HOA), you become personally liable for all dues and assessments. This means if you buy a condo in your own name and the association assesses an amount due, they can place a lien on the property and/or sue you personally for the obligation! Don’t take title in your name in an HOA, but instead take title in a land trust so that the trust itself (and thus the property) will be the sole recourse for the homeowner’s association’s debts.

6. Making Contracts Assignable: The ownership of a land trust (called the "beneficial interest") is assignable, similar to the way stock in a corporation is assignable. Once property is title in trust, the beneficiary of the trust can be changed without changing title to the property. This can be very advantageous in the case of a real estate contract that is non-assignable, such as in the case of a bank-owned or HUD property. Instead of making your offer in your own name, make the offer in the name of a land trust, then assign your interest in the land trust to a third party.

7. Making Loans "Assumable": A non-assumable loan can become effectively assumed by using a land trust. The seller transfers title into a land trust, with himself as beneficiary. This transfer does not trigger the due-on-sale clause of the mortgage. After the fact, he transfers his beneficial interest to you. This latter transaction does trigger the due-on-sale, but such transfer does not come to the attention of the lender because it is not recorded anywhere in public records. This effectively makes a non-assumable loan "assumable".

As you can see there are many creative and effective uses for the land trust, limited only by your imagination!

William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990 www.legalwiz.com

P.S. If you need a good Land Trust attorney for South Florida, contact Paul B. Woods, Attorney at Law, (305) 559-9060, mobile: (305) 803-1818, email: pwoodslaw@gmail.com

Written by +Bob Burns.

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cya MREIA's President about.me/RobertKBurns Telephone #: 305-300-6242 email: rkburns@investmentpropertiesmiamiflorida.com MREIA's Web Page: www.miamireia.com

Hypersmash