More Protection for 1031 Funds

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The FDIC insurance limit was increased from $100,000.00 to $250,000.00. The change in coverage limits is effective from October 3, 2008, through December 31, 2009. A link to the FDIC website gives more information: http://www.fdic.gov/news/news/financial/2008/fil08102a.html
Many investors conducting 1031 exchanges feel better knowing that the exchange funds are more protected. There are also ways to get more protection by dividing the exchange funds between multiple banks. This is good news for taxpayers!

Call me with questions 1-877-373-1031.
Jeff Peterson
Commercial Partners Exchange Company, LLC
a Qualified Intermediary for 1031 Tax Deferred Exchanges

Rental Property Owners Workshop

Community Crime Prevention/SAFE of the Minneapolis Police Department and Minneapolis Housing Inspections are providing this workshop. Attending the workshop provides owners and managers with valuable information, resources and opportunities to network with other property owners. Workshop topics:

• • The ABCs of property management
  • Working with the Minneapolis Police Department
  • Working with Housing Inspections
  • Tenant behavior issues
  • The risk of lead poisoning
  • Hennepin County Housing Court / mediation
  • Networking opportunities

DATE: Thursday, October 23, 2008
WHEN: 5 p.m. to 9 p.m.
(Registration at 4:30 p.m.)
PLACE: St. Mary’s Greek Orthodox Church
3450 Irving Ave. S.
Minneapolis, MN 55408
Cost: $20.00 — checks payable to City of Minneapolis (Includes cost of workshop, materials, DVD on Hennepin County Housing Court, and box meal.)

Pre-registration is required. RSVP by Thursday, October 16, 2008. (registration limited to 100 participants). REGISTRATION AFTER OCT. 16 WILL BE $30.

Return the registration form (http://www.ci.minneapolis.mn.us/police/outreach/docs/RPOW2.pdf)  $20.00 check payable to the City of Minneapolis by Thursday, October 16, 2008 to:

RPOW
Community Crime Prevention/SAFE
4119 Dupont Ave. N.
Minneapolis, MN 55412
Questions? E-mail ccpsafe@ci.minneapolis.mn.us or call the message line at 612-673-2812.

Update Sale of TJ Waconia Properties

It is funny how this is really a small real estate world, especially in North Minneapolis.  Johnny Northside wrote a new post about the North Minneapolis T.J. Waconia houses where he actually made a mention of my post about one of my customers wanting to buy a T.J. Waconia House in North Minneapolis.

Here is where it get’s circular.  Jeannie Hoholik, from Keller Williams, comments on this blog.  In fact, she commented about my above post.  She is also the main character in Johnny Northside’s post.  Got all that?

I encourage you to check out those other posts.

Scott

Investment Property 201 Seminar

Topic:  How to reduce your taxes by owning investment real estate.

Maybe you don’t own any investment property, but have heard about the tax benefits of owning investment real estate.  Otherwise, maybe you own a property or two, but don’t feel like you are getting all the tax shelters that you can.  Our CPA, Greg Nelson, will be explaining how to organize your business and yourself to maximize your tax deductions easily and quickly.  He will talk about how to take advantage of the tax shelter even if you “make too much money” to claim much or any depreciation.

Come see how to write more off and put more money each year in your pocket.

Register for the seminar by filling out this quick registration form or call 612-281-5419 for more information.

Tenant Application-Red Flags Example #2

I try to ask lots of questions when I meet a prospective tenant.  This will usually allow me to ferret out any problem tenants or issues.

There are so many examples of interesting tenant screening discussions that I have on a monthly basis.  I thought this one was worthy of posting, not because it was funny, but for some of the subtle red flags, that I was hearing while talking to this prospective tenant.

This prospect called about a 2 bedroom apartment in an investment property in Crystal, that I own.  It was recently renovated and is priced at a below market rent of $765.

Me:
So where do you live now?

Prospect:
I live just down the block in Crystal.

Me:
Great, why are you moving?

Prospect:
The landlord is going into foreclosure and he won’t fix anything and we can get in touch with him.

Me:
How about sending him a letter with your rent?

Prospect:
Oh, we haven’t been paying rent there since March (8 months).

Me:
Really! And no one has contacted you about that.

Prospect:
Nope.

Me:
[Joking] So you should have all kinds of money saved up for the damage deposit and first month’s rent on my apartment, right.

Prospect:
No, I am going to need to get my damage deposit and probably my first month’s rent from emergency assistance.

Me:
OK…………[explained my screening process] Do you have anything on record that I should be concerned with?

Prospect:
Well, I have an eviction from 2 years ago and my credit is bad.

[Thinking to myself-I saw that one coming!]

Informal tenant screening is nothing more than carrying on a conversation with some subtle questioning.  I was just asking questions to understand more about where she lived and worked and such.  As I heard a red flag, I steered the conversation that direction.  While I did this in person, it is a great way to weed out bad tenants on the phone, saving yourself a trip to the property.
Have you always wanted to buy investment property, but never knew where to start? Don’t Wait! Get Started now.

Scott Ficek is a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Minnesota Investment Property. He owns and manages almost 30 investment property units from single family to multi-family. Subscribe to his monthly real estate newsletter. Register for the newsletter here.

Investment Property 101 Seminar

Have you always thought about buying investment properties? Have you read all the books, bought all the tapes and watched all the infomercials, but still can’t seem to get started with investment real estate? Attend this FREE one and a half hour seminar. There is no charge at all, no contracts you sign with us, no consultation fees, no hidden agenda. The seminar simply will be an excellent opportunity for you to learn more about our process and meet a team of investment real estate professionals that can hold your hand through the finding, financing, buying, renting and owning your first investment property.

Let our experience get you started!

Register for the seminar by filling out this quick registration form or call 612-281-5419 for more information.