Vacation Time

It's been a long time, People.

I want to grab your ear a bit on an investment that won't be for everyone, but some will dig it. Vacation rentals.

I was introduced to vacation rental possibilities back in '05 when my sister bought a nice little cabin in Idylwild, Ca. Cute 1 bed, 1 bath log cabin that was decked out with all the modern amenities.

It was cheap, so she bought it with cash (Part of an inheritance that her & I split). I told her (In the most condescending voice that I could muster) that she had lost her mind. "You won't get any appreciation out here" is what I told her.

Like siblings are supposed to, she ignored my advice and bought the cabin. I bought a Miami condo that I couldn't rent out (HOA rules) for a year.

We all no that I lost a ton of loot in Miami. Her property value did go down, but she rented her cabin out by the weekend & the week, getting up to $300 a night. When it's not being rented she goes up there with her family, occasionally inviting me so I can see my mistake up close. I sold my condo and lost money and self respect. My sister still makes money on her cabin and still uses it. Who's dumber than me?

Some goodies about vacation rentals:

Can be bought as a 2nd home (Better % rates).

Renters give credit cards instead of deposits. If any damage happens, you have them by their froot of the looms.

No eviction notices. When their done, their done. It's a temporary rental so their are different occupancy rules.

You get to use it too!

You can change rates any time you want. Christmas time, rates go up. Valentines, up. & so on...

You can actually end up getting a better return. It will be rented less days out of the year, but at a much higher rate.

Get with me if you want to hear more about this type of investment. 619-507-7449.

God Bless

2nd Hour Of Talking Smack

Hi People.

Here's the 2nd half of my radio show from last Saturday. We talked about the current San Diego home market, soup, George Washington & loan mods (The Unicorn of real estate).

Try not to make fun of me.

God Bless

Inspection? My Dad's A T.V. Repair Man.....

What's kickin' People?

I've been doing this real estate thing for awhile and it never ceases to amaze me how cheap people get at the wrong times.

My wife accuses me of this. "You've been wearing that shirt since I met you" or "Why are you only putting $5 in the gas tank"? I need money for my .99 cent tacos....

The point is, when you're buying a $250K, a $300K, a $400K (Low prices for San Diego) home do NOT worry about a $350 home inspection.

The inspection is there to protect you and is good for you (Like .99 cent tacos). It is the smallest of most of your expenses when buying a home and probably the most important. On a $300K home purchase using a FHA loan you will come out of your pocket approx $18K. Are you really worried about that $350?

People, certain things are not o.k. to skimp on. Your health, your child's education, your wife's birthday present (Trust me), your plastic surgeon (Trust me), your accountant (Ask Nicolas Cage), your teeth (Ask Dave Letterman or English people), your hair stylist (That's put in for the ladies and the metros), your car (Toyota? Cheap shot), and for crying out loud, anything to do with the home you buy!

It's o.k. to be cheap (I are one), but be cheap in a good way.

God Bless

3.8% Of Your Booty

Hello People.
Lots of scaredy cat talk out there re the new healthcare program and how it's going to be funded. One of the stories floating around is a new 3.8% tax on American's income. Fractionally true.
The tax is for "unearned" (I hate that verbiage. Even if I win $$ in Lotto I earned it. Who bought the scratcher & who actually scratched it?) income of people who's yearly income is considered high ($200K for singles & $250K for married folk. Guess married folk will be doing the heavy lifting...). N.A.R. (National Association of Realtors)  says "Unearned is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business". So, passive investments. You give your money to someone else to invest & manage it, like a stockbroker or drug dealer.
Landlords get a little bit of a break because it is the net rents that get taxed.
Other good news is:
Appreciation is not taxed until sold.
Home owners still get the exclusion of taxes on the gain of there house ($250K for singles & $500K for married types)
If your job is real estate investing than that is considered "Earned" as opposed to "Unearned" and the tax will not apply to you.
This is NOT a real estate sales tax.
So, click on the title or the highlighted "N.A.R." to find out more about how much you're getting screwed. It might be less than you think.
God Bless.
Jack Rowell

Radio Junk

Hi People.
Here's the first hour of last Saturday's show. Argued about loans, real estate, investments and ethnic food. A little bit of a clash of opinions.
God Bless

Gots To Hustle

Hey People.
I just wrote 12 offers for a client who is desperately trying to buy a San Diego home. Obviously, he's not that picky. He just wants a home to retire in. Too much to ask? Even for a Veteran? Hopefully not, but this is what he's fighting.
Not enough homes for sale under $400K. Anything out there on the market (Unless it's falling down, haunted or was owned by Al Davis. We San Diegans really hate Al Davis) that is properly priced will have several offers on it within a week, often as much as twenty offers. But, the unemployment? The multitude of foreclosures? The overall recession/ depression (Depending who you ask)? How can there be that many people buying? 3 main reasons. The tax credit for 1st time home buyers (Usually the full $8,000 for us San Diegans) is about to expire (Have to be in escrow by 4/30 & close by 6/30). Next is the prices are really low. There are a lot of people thinking we are at the bottom of prices & they want to get in while the gettin's good. Last, the interest rates are at a all time low and they are starting to creep up. Folks are trying to luck the good thing down.
The other thing working against my client is he is a Veteran who is going to use his V.A. loan. They're great loans for the Veterans because they are 100% financing, the only type of loan that still does it. The problem with loan is that they tend to take a little longer than most loans and the V.A. appraiser (BOO) is usually a little tight on the appraisal (Tight like my grip on a candy bar). Both of these factors make this loan less attractive to the seller. So, in a multi offer situation my client would get beat like Al Davis at a Charger tailgate party (We really do hate him).
The good news, my client is a hustler and that's why we wrote 12 offers at once. Sooner or later he will have his house.
God Bless the Veterans.