Here is the Nelsonian Theory on things to do RIGHT NOW….

1.  Evaluate your investment portfolio

a.  What is your ANNUAL YIELD:

i.  for each property

ii.   for the entire portfolio

b.  What is each property doing for you?

Restated: Why own it?

c.  Would performance be enhanced by refinancing it?

Restated: Do you have any interest only loans or variable rates loans that will adjust soon and have an impact on cash flow

d.  What is the “runt of the litter”?

i.  Should you hold it or trade it off?

ii. Can use it as a “down payment”

2.  Evaluate your LIQUIDITY (“staying power”)

a.  Make sure you can survive

b.  3-6 months of “survival number” or an extremely safe life of credit

3. Consider buying “foreclosures” and “the walking wounded”

Fannie Mae (FNMA) has a special program called Home Paths which allows an Investor to purchase a FNMA repossessed property and finance it with as little as 10% down payment. Special restrictions apply so check with you a knowledgeable lender regarding the financing options.

These special financing programs will not last forever!!

Reporting Large Transfers at Death: For estates of decedents dying after December 31, 2009, and before January 1, 2011, the federal estate tax is repealed. Accordingly, no United States Estate (and Generation-Skipping Transfer) Tax Return (“Form 706”) will be required for estates of decedents dying during that period. Does this mean, then, that no information return is required to be filed with the IRS for the value of decedent’s estate? The answer is NO!

Read the full report.

Just a note to say thank you for sharing your knowledge and inspiration regarding real estate investment.  We now own eleven units and I know that is largely due to your classes and seminars.  See you soon at the upcoming ROA meeting.

Sincerely,