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One of the forums in which I participate has had stories on both sides of this issue for a couple of months… with the more conservative members saying that there is a 3.8% sales tax on the sale of homes, and those that are more supportive of the President and his policies saying that there isn’t.

Neither side was real specific about their information source… talk radio for some, blogs for others… nobody seemed to be going to the source… the 20,000+ page law signed by the President.  In all fairness, there is a LOT of room in 20,000 pages to hide a lot of little Easter Eggs like this.  And being fair to the other side, if there isn’t a tax, the bill isn’t going to say “there is not a tax” anywhere…

I have an answer…

There is indeed a tax on the sale of real estate.  It doesn’t apply to many people, but it WILL apply to some people that have profit from the sale of their homes. Starting in 2013, those with incomes over $200,000 will have to pay a 3.8% tax on profit from the sale of their primary residence or investment properties.  The exact amount will be based on a formula that includes the profit from the property and the income above $200,000.  The tax is not an income tax, but rather it is a “payroll tax”… officially it is a Medicare Tax.

It does not just apply to real estate, but also applies to investment income and dividends.

The bottom line is that both groups are right… and both are wrong.

But…

It will drive another nail into the luxury real estate market.  It has been in the doldrums for a while.  Adding new taxes will not get it going again.  And if you are thinking that this only affects ‘the wealthy’, think again.  Those homes are not built by ‘the wealthy’.  Those homes are not renovated by ‘the wealthy’.  Those consumers are more likely to hire contractors to do improvements.  And they are more likely to update more often…  They are a driver in the housing sector.  This added tax is NOT putting gas in the tank…

 

from LaneBailey.com

Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2009 Lane Bailey. 

I'd love to hear from you...

Just got off the phone with an ambitious newer real estate agent who is all fired up about selling some real estate. Some serious real estate. He has a plan. He's committed to this plan. He's passionate about his plan. He WILL meet his goal or die trying.

His goal? To have 35 listings in the next 90 days.

Impressive. And given his enthusiasm and commitment, I think he can do it.

But should he?

This agent is a follower of SWS which means, among other things, that he is committed to being the best thing that could ever happen to his clients. Which, it is understood, will result in business and referrals coming his way for years to come from all his happy, satisfied clients.

Do you see where I'm going with this?

No new agent can properly service 35 listings. Oh, I'm not saying that he can't HANDLE 35 listings (although it's questionable), but actually SERVICE them? No way. Very few agents of any experience level can provide repeat-and-refer-worthy service at that level of production. 

So, what do I mean by "service?" Well, you can bet I mean more than taking a listing agreement, hiring someone to put a sign in the yard, having the receptionist write up an inaccurate and boring MLS description, taking some awful photos, creating typo-infused home brochures and showing up six weeks later with a smile and an amendment to reduce the price. 

No, I mean overseeing all the moving pieces and parts of the complicated process of preparing, marketing, selling and closing a listed property. Really caring about the outcome. Making sure your seller knows you care about the outcome. Keeping your seller informed and involved. So many other things I've written about in the past.

Many say that most of the post-signed-listing-agreement functions can be handled by a $10/hour assistant. I disagree. But that's a post for a different day.

Anyway, I asked this agent if he really thought he could knock the sox off all 35 of his seller clients with his service... or if, more likely, he'd just find himself with 35 unhappy clients who would not use him again or refer him to others.

He's thinking about it. What do YOU think?

Stay tuned for more on the subject in an upcoming post...

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The Daily Seduction
Tips & Inspirations to Generate Business from the Very Important People Who Know You

There is no doubt in anyone’s mind that the Internet has changed the way that we all conduct business. The free flow of information and the ability to easily amalgamate MLS data has empowered the consumer more so than any time in the past.

It doesn’t take long for a potential home buyer to truly “get a feel” for an area, and most have narrowed down their selections online by the time they actually speak to a real estate professional.

And it is generally during that initial conversation, that much of the consumer’s “fact finding” is debunked. Because reading about something on the Internet and having personal knowledge about it are sometimes as opposite as night and day.

Because there are some things that are not conveyed through the electronic streams of data illuminating LCD screens across the land.

Things like the smell of pet odor or that concrete plant just down the road, or a crumbling foundation. Things that really make a difference to a home buyer that are generally not disclosed until you get there in person.

Things like the retention pond in the back yard or the functionally obsolete floor plan. There is always a reason that these houses are priced the way that they are, and those reasons are not readily apparent online.

And while compensation models will likely change over time, the VALUE of engaging a competent professional will always be there.

And it could end up saving a lot of time and money in the end!

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park.

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100 Ways to Create Real Estate Leads.

How effective is your marketing? Until you start this important element of your business, your business will not really get started...

The key fundamental element in the first level of your real estate investing business is creating systematic and consistent lead generation. Have you focused on that area yet? If not, you do NOT have a business, you have a hobby and a dream. Your commitment to this area of your investing career is critical to your success. There are many different ways to create leads.

Here are about 100:

Accountants and CPA Firms: They have clients with financial problems where an investor can be of help.

Advertising: Never stop. Use simple ads with a USP, Unique Selling Proposition: Quick Closing, All Cash etc., Buy Houses Ads, Newspapers, Flyers.

Attorneys: Attorneys know when people need money, often to pay their fees! Not just probate but divorce, family law and real estate attorneys.

Auctions: Do your homework in advance. Auctions move very fast and a single mistake can be costly. Visit your local auction a few times to just observe. Know values and repair costs before bidding. Foreclosure: Very risky, not for the newbie Sheriff Sale: Same as Foreclosure IRS Sales

Apparel with Logos: Hats, T-Shirts, Golf Shirts, Hand Bags

Appraisers Bandit Signs: Check your local sign ordinances. Some places have no issue with them others do. We Buy Houses Stop Foreclosure

Bird Dogs:These people can be very valuable to your business. It is important to know your local laws about compensating unlicensed people.

“Blue Tarp” Houses: often blue tarps on roofs

Boarded up windows: or visible disrepair

Business Cards different types: one for seller, one for buyers, one for professionals (banker, attorney, CPA)

Builders Models: Frequently builders will sell a model home at a discount.

Building Inspectors Car & Truck Loans: Some folks would rather keep the wheels than a roof over their head. Buy here, pay here dealers can be a good lead source.

Car Repos: If the car is going the house isn’t far behind.

Carpet Cleaners: Many of their customers are preparing a house for sale.

Charitable Groups: Frequently receive gifts of real estate, but they’d rather have the cash.

City & County Inspectors: Code violations and red tags. If you develop a reputation of buying distressed properties and improving them, you become an asset to the community.

Classified Ads: For Sale: Look for Key Words - transferred, motivated, divorce, owner financing Want to Buy For Rent by Owner: Look for burned-out landlords

Condemned Houses: Many counties will provide you a free list.

Consumer Loan Companies: When their loans go bad they are frequently willing to deal rather than foreclose.

Courts: Eviction Filings, Probate Court, Divorce Cases, Tax Liens, Code Violations

Credit Repair Agencies & Counselors: Many times the only way someone can get their spending under control is to sell a house they can no longer afford.

Direct Mail: Pre-Foreclosure Letters, Probate Letters, Out of Town Owners, Post Cards, Bankruptcies, Divorce, Delinquent Taxes, Military Owners

Door Hangers: You can also use pre-printed post-it notes to leave messages at target properties. Be sure to advertise on both sides, you can even sell the back side and recover your advertising cost!

Door Knocking: Distribute flyers and go door-to-door asking residents if they know of anyone planning to move because you'd like to buy a house in their neighborhood!

Drive or walk Neighborhoods: Get to know them well and take notice of changes.

Estate Sales - often the real estate will also be available and perhaps with owner financing

Eviction Court: great place to find landlords

Expired Listings: Connect with an investor friendly Realtor

Family Members: talk about what you do and ask for referrals

Farming Local Areas: Become the local neighborhood expert.

Flyers: Cut your cost in half, print two to a page and distribute: Shopping Centers, Wal-Mart, Home Depot, Malls. Put on car windshields or pay someone to do it for you.

Friends: “Do you know anyone who wants to sell?” Most people know 2 people who will be buying or selling a home this year.

FSBO Signs: for sale by owner

Funeral Homes: Can be a good lead source before information on a decedent becomes public.

Garage Sales: Are they moving?

Hair Salons: Lots of talking going on during hair cuts!

Home Builders: Need to sell their buyers houses so they can close on the new place.

HUD Foreclosures: Internet: Rent Clicks, EBay, Craig’s List, Wholesale Sites, Lead Services, USLeaseOption.com

Insurance Brokers: Policy changes from owner occupant to landlord or vacant house coverage.

Investor Packages: Investor who's ready to retire and cash out their portfolio. May be able to negotiate seller financing as well as a discount.

Judgments: Check the public record or hire someone to do it for you.

Large Employers: Let them know you buy properties because if they need to transfer an employee, they don’t get stuck carrying the house. This can be good for renting executive properties for short-term transferees, too.

Lenders: Banks / REO’s: - Mortgage Brokers, Private Lenders, Hard Money Lenders

Liened Properties: Mechanics Liens, HOA Liens, Tax Liens

Lis Pendens: Notice of a law suits, usually a foreclosure.

Magnetic Car Signs and Wraps: Check with your auto policy carrier as to whether or not this will affect your coverage. A rider may be required.

Market Bulletin Boards: Grocery stores, coffee shops, restaurants

Military Transfers: Military bases provide an excellent transient market for those needing to sell and buy off base housing

Mobile Homes: Get to know park managers. Banks don’t like mobile homes but they can become little cash cows. A special license is required if you’re going to get into the mobile home business.

Moving Companies Neighborhood Newsletters Networking: Other Investors, Call We Buy Houses ads & signs, Churches, Public Speaking, Investment Associations, Work, Clubs

Newspaper Carriers: Who see the vacant houses everyday?

Nursing & Retirement Homes: Frequently residents need to sell a house.

Pens: Buy cheap ones and leave them everywhere you go.

Pet Odors: If your home has housed a number of pets we may be the buyer for you.

Pizza Boxes: many sell advertising or sponsorship spots

Postman Public Speaking: Rotary, Lyons and Kiwanis Clubs, Realtor meetings and other associations

Quit Claim Deeds: Are a sign that something has changed with the property.

Radio Ads or Show Real Estate Agents Referrals Relocations: Great for Subject-to or buying on lease option

Rent Credit: Trade rent credit for a down payment

Rental Agents & Property Managers: Let them know you want to buy and also find a local manager. You buy, they manage…win/win!!

Retirees: A growing population with free and clear homes. Excellent prospects for seller financing.

Section 8 Landlords: Each county maintains a list

Short Sales Social Media: A new way to get your message out: Facebook, Twitter, YouTube

Structural Damage: Once you know what you're doing, you can buy at a rock bottom pricing.

Tax Deed Sale Properties: These do not come with title insurance so do your home work.

Tax Lien Certificate Properties Termite & Pest Control Companies: Write a check and the termites die. Write another check and replace the damaged wood. May find great deals.

Title Companies: Not all transactions close like they are supposed to. Let the title companies know you can help in a pinch, for the right price.

Trading Up: Trade your newly renovated property at retail for a property down the block that you can buy wholesale. Try a sign that says “Will Take Your House In Trade”

TV and Radio: Cable companies may have community service spots for free.

Vacant Properties - look for tall grass and neglected houses

Web Sites Wholesaler Lists: A good wholesaler can find you multiple properties.

Withdrawn MLS Listings: Easy to get from a friendly real estate agent.

As you can see there is no shortage of ways to generate leads.

To start, pick out 10 ways for consistent lead generation for your real estate investing business and focus on those. In the beginning of our investing career, Jim & I walked neighborhoods with flyers and put magnetic signs on our cars. Why? Inexpensive and effective! Not glorious marketing techniques but we got leads and our very first seller called from our magnetic car signs!

The number one common element of failures in a real estate investing business is not treating it like a business. And, the most important step to establish in ANY new business is LEAD GENERATION! Without customers, there is no business.

Whether you are looking for foreclosures, REO's, owner-finance, HUD, wholesale, free & clear, rentals, fixer uppers, spread investing, etc, it all revolves around having leads. Get busy and NEVER EVER stop marketing for leads!

Anything you've tried that's not on my list?

**UPDATE** So many of you are leaving great addtional ideas that I'm adding them to the comments section on my blog so the list will continue to grow! Thanks!

Karen Rittenhouse | www.karensperspective.com | 336-834-0614 | karen@karensperspective.com