Follow Your Passion

This video was shot last summer in France.  The short clip here on the blog is just a trailer to the full length 40 minute documentary which will go live (free, and available for download) tomorrow 11.11.11 on their adventure blog Sebmontaz.com.

It got me thinking - as it will for you too - are you following your passion?  Am I working at things that stretch me, that push me, that I can be endlessly growing in?  Am I pushing?

Check out the clip and enjoy.

I Believe I can Fly ( flight of the frenchies). Trailer from sebastien montaz-rosset on Vimeo.

Google Encrypts Search to Thwart Wi-Fi Hackers | Threat Level | Wired.com

Google Encrypts Search to Thwart Wi-Fi Hackers | Threat Level | Wired.com:

Which raises an important question:

What are you doing to protect your clients?

I know that at JXN Housing (our property management business) we take very seriously the confidentiality of all our clients and customers. Here's just your reminder - be careful, keep good records, and make it clear to your customers and clients that you are diligently protecting them. Remember the seven protected classes, tape them above your PC screen.

Google just gives us a good reminder - We should all be going to great lengths to protect our clients and customers.

Keep a steady look out,

Dallis

'via Blog this'

Google

If you've ever got the opportunity to attend a Google seminar - don't miss it. The Google Adwords seminar here in Nashville has been a mind-bending couple of days, and I can't wait to get home and implement the things I've learned. The power of advertising through Google to not only manage, but maintain and analyze the incoming traffic is a remarkably perceptive set of tools. Think of the power of being able to adjust every detail of how, where, to whom and when you advertise your entire business... Pretty amazing stuff!

A preview of Gmail’s new look - Official Gmail Blog

A preview of Gmail’s new look - Official Gmail Blog

Watch out! A new look is coming to your inbox. If you're a Google Calendar user then you've seen a little preview of what's to come. There are cleaner lines and a "less is more mentality" sifting quietly through Google Think Tank - and I like it. Check out this entry from the official Gmail Blog to find out more.

The Digital Whiteboard of My Mind

Remember Everything?

Have you got so many ideas in your head, and you can't quite get them all out?

I know we've all got our own ways of keeping notes or planning our goals, but if you haven't tried the remarkable (and free) app and web service called Evernote then... you have no idea what you are missing.  It is outstanding.  I think about it as the (digital) whiteboard of my mind.  Think about it like this:

You work in an office that is one room in a series of hallways in an office building.  In your line of work (as an entrepreneur think about all the different things you do everyday) you're always traveling in and out of your office as you not only complete all the task in your day, but plan, and expound, and create, and rabbit-trail, and return to the plan, and think of a new idea...  Some of these offices that you go into in your office building each day are simply required for you to complete your duties, others you go into because you are distracted about as you begin thinking of a new opportunity.  The offices that are necessary are the ones that are part of your daily work day.  The offices that aren't part of your normal routine you end up dropping into because you're interested in what they are doing.  You get distracted because you think it will create a new opportunity.

Now, I've driven the example a little far, but you get the point.  Well, think of all those "stop-ins" (when you drop by somebody's office that isn't exactly what you need to be doing, but you know there is something there), as mind detours.  Now, they are all valuable in there own regards, but they are nonetheless distracting.  And, because they are distracting you're having trouble working through your day, because you keep "entering other offices in your building" to work on something else.

So, here's my convoluted thesis:  Evernote is this in that scenario:  It is as if you painted a whiteboard on to every surface of the hallways in that office building that you work in.  You no longer have to walk into any office that isn't part of your normal work day and you can simply scribble notes on the whiteboard wall right next to that office.  Now, imagine that it is digital, and it keeps them all filed and compatibly reliable in an order all to your own, following you night and day.  Now imagine that it can take pictures, screen images, and record your voice.  You're getting the point...

With Evernote you can let go of everything big that you're working on in your mind and move forward with your daily tasks without loosing anything along the way.  www.evernote.com

Growth

Growth isn't measured by the things accomplished, but rather by the evaluation of those involved and affected by that growth (or failure, depending on how the whole is perceived).  Not just as an entrepreneur, but as an individual I am not doing any of this because this is the "end in itself."

Anytime you can't put your finger on it - you're working at whatever drives you.  

It's impossible to say that we aren't doing this because we aren't seeking the some tangible "ends to a means."  Of course we are.  And, we are working (at whatever we are working at) because we see something in the future.  All of us, are working towards something in all areas of our lives.  It may be "getting better at one thing or another."  It may be a particular deal.  It may be a golf game.  In the end, what I'm working toward isn't here, and as a Christian husband, father, churchman, and business man it is that I'm working toward the Kingdom.  It is full of its test and trials, and as this week draws to a close (in this fraction of reflection) - I welcome them.  I welcome them as growth in all the areas of life, because God is using them for His glory. So, I ask you, what is your "ends to a means?"  What is the intangible thing at the end of the day, or the year, or the career or the end of this life?

Retreat

I'm just now coming home from a retreat of sorts.  I'm getting the opportunity to pull back, to survey, and to focus on more than that which is just immediately in front of me and demanding my attention.  Take a moment, slow down.  Take the 3.5 minutes to watch this video, and think about how quickly life could be passing you by.


Timelapse - The City Limits from Dominic on Vimeo.

I've spent the last two days just evaluating my performance and setting goals for the future.  I recommend that you do the same.  We are all blinded by the can't see the forest for all the trees  mentality.  I encourage you - stop for a moment.  Think about where you want to go.  Think about how you want to grow.  Personally, I've found that I do this best by going out of town.  I'm forced to stop, to think and to look hard into the future of what I long to accomplish.  I recommend it - you will come back focused, driven and with needle-point vision.

Need a tool you don't have? Build it.

My new mobile site

Building tools in order to build a business is a remarkably fun thing.  It's so much fun to be freed to work on my business so that when I work at my business I've got the tools I need to do so more efficiently.  Since childhood I've been deeply interested in building things.  (Legos!)  I've loved to understand the way things work, because since youth  I've just needed to know.  

Somewhere back in my mind is a memory of my brother and I dismantling old VCR's and an old record player.  

As an entrepreneur, things aren't much different (probably more emphasized). I'm always trying to systematize whatever it is that I'm working on so that I can do that thing more efficiently.  I love working to build a system that takes some of the administrative "weight" of my business off of my plate and makes my day, week, year run smoother.  We've all heard it said about our businesses, "If you do it more than once, make a system."  And the principle is true.  If you find yourself wasting too much time every month scribbling numbers on scratch paper to figure our your insurance payments from your commercial policy - then it's time for a spreadsheet that does that math for you.  If you feel like you are wasting your time, and can't complete anything because you're always answering the phone then build yourself a phone system.  Tired of chasing applicants?  Make a system that makes them chase you.  I say all this because the more I surround myself with systems and procedures the more capable I become to build the tools necessary to keep me moving forward.  I'm constantly tripping up, and learning from it - but all in all, the systems make my life a little easier.

I'd encourage you to do the same thing.  Quit letting the administrative tasks eat up your day.  Take control of them and build a system for them to work within, freely and independently of you immediate conscience.  The more systems you build the more you can complete each day.  In fact, you're not alone.  Others need the same systems you do.  Those systems you are building may benefit someone else, and you can help them.  You also may be able to capitalize on your systems.  You may be able to help others implement your systems and make a profit at the same time.

So, with all that said...  It has it's glitches, and we're working through them, but I'm pleased to announce the launch of my mobile site for my Property Management company JXN Housing.  If you'd like to check it out go to www.jxnhousing.com on your Android, iPhone, iPad and you will be automatically redirected to www.jxnhousing.mobi.  It's the newest system I've been working on, and it's going to dramatically streamline the advertising process for my management system.  I say this because I've watched the analytics of visitors to JXN Housing's website and a strong portion of the visitor base is arriving via a mobile browser.  The integration of being able to meet a potential buyer/tenant at the door of the house via a mobile website is incredibly powerful.  You immediately loop them into using your site to find the house that you can provide them.  You become the strongest communicator in the field if you are communicating with that individual through the mobile phone.  You become their most reachable go to real estate answer-man.  So, check out the site, report any gliches, and let me know what you think.  Once I get the kinks worked out, and I see how advantageous it really is I may be able to build one for you and your real estate business.

So, I'd encourage you, go find yourself a system to build and have fun building it.

The Meeting is Wednesday

Jacksonians,

We still need your support.  On Wednesday of this week (4/27/11) we will sit before the City in hopes of being granted our Special Exception, so that Walt Wofford and I may use 1104 Jefferson as our professional real estate office.  We would greatly appreciate your support in this endeavor!  We're excited about the opportunity to serve Belhaven, Fondren and greater Jackson in all it's real estate needs.  We can't wait to get this building renovated and have a place to serve as a resource center for you.  If you haven't signed the petition, and you would like to: Please go to www.theneighborhouse.blogspot.com.  Thank you for your support!  And, once we have approval, please watch the NeighborHouse blog as we renovate our office...

What I'm learning about Zoning...

The text below is a direct quote from the City of Jackson's website. You can view it by clicking here.

And, I post it here, because Walt Wofford and I are applying for a special exception for 1104 N Jefferson St. Jackson, MS. We'd like to open a completely new Professional Real Estate office (called... NeighborHouse) for the betterment of the Belhaven neighborhood, the preservation and appreciation of comparable sales and to work as a resource center in real estate transactions for not only the Belhaven neighborhoods, but for the entire Tri-County area. So, here's what we are filing for - A Special Exception. And, it's safe for the neighborhood because:

• The designation only follows with ownership of the building.  So, if we sell it the Special Exception must be reevaluated.
• The Special Exception is annual-ably renewable.  In other words - If the people of Belhaven dislike the anything that is happening in this location the special exception won't be renewed.
• It's the higher use of a what is seen as a problem property.

So, here's what the city of Jackson says about Special Exception, and if you'd like to pop in and sign our petition it should be live on our blog www.theneighborhouse.blogspot.com by Saturday April 4th. 

"What is a Special Exception, Variance, or Use Permit?

Special Exceptions, Variances and Use Permits all require the same action as a rezoning. Please refer to the Zoning Action Application for additional information needed.

Special Exceptions are permitted on some properties whereby residential structures may be used for professional offices. Exterior alterations to the structure are prohibited, off-street parking can not be in the front yard, and landscaping screening is required.

How can I find out how my property is zoned?
To verify the zoning of property and uses permitted, contact the Land Development Division front desk (601-960-2037). The Official Zoning Map is available online in PDF format."


Commerce Street Overlay District
Fortification Street Rezoning Project
C-4 Down Mixed Use Zoning District Map
For More Information Contact:
Land Development Division
200 S. President St., Room 204
Jackson, MS
601-960-2037 or jwarnsley@city.jackson.ms.us

Google and Efficiency

Readers,

If you're out there - I've found that the more my work, file storage and general digital life moves forward the more it moves to the web (the cloud), and the easier all those things become. I've found that I'd like to remove anything that slows me down. The more I build a business that works on and through the web, the more it becomes less and less about specific hardware. My productivity becomes less intertwined with: software, enormous file storage, phone books or any certain chair. As I use the web the more I'm not stuck in that certain chair. The more I'm using websites and applications to complete work the less I have to "get back to my office before I can answer that question." The more I have submerged my business into Google's services the more Google works to administratively streamline my business.

And now, Google has taken the next step. With the unveiling of Google Chrome OS and the release of their first laptop, the cr-48 it has taken me and my business to the cloud. Watch the video and enjoy.

Buildium

Your mind can be free to continue building a business. Plug in and let go of your real estate accounting by clicking the link above. You will be blown away by how much can be "taken off of your plate." You can chill out because all your management billing can be done on the web by any PC/Mac and all on - total automation. You're going to love how much you can virtually unplug from the day to day of real estate accounting and let "the machine" do the work.

Enjoy.

Keyboard shortcuts - Gmail Help

Keyboard shortcuts - Gmail Help

If you're a Gmail user and you aren't using keyboard shortcuts - You've got to try it out. Its a pretty simple concept: Quit lifting your hands from the keyboard and just use the keys... For instance, how many times have you finished reading an email and then you slide your hand to the mouse to hit "Archive?" In essence you've had to look down to find the mouse, look up to see where you're driving it and then you click it. I know, it didn't take that long - we're talking milliseconds, but what if you just hit the letter "y" immediately archiving the message and sending you back to the inbox? Now isn't that easier? Gmail is full of these sorts of shortcuts. Click the link and check it out.

It Has No End

It's a funny thing about entrepreneurship, its just one building (block) after another. It rolls like seas. You go through ups and downs. You have highs and lows. Its the same for many professions because we all have times that are seasons of growth and times that are quiet.
And though the seas roll, you must keep your eye on your bearing. You must keep your goals in clear sight because in any business it is easy to become overwhelmed with the details, administration and project work load. For instance, take a look at the picture in this post. If I am overwhelmed I can only see a disaster zone, but if my eye is on the bigger goal I see progress.
This picture is of the basement at 1104 Jefferson. It is the bottom portion of the house on the NE corner of Jefferson and Carlisle around the corner from McDades. We're opening up this dark, dingy old basement apartment. All in all, we are consolidating several units that were just depressing, small spaces and opening it up into something desirable. It will be turned into something all together new and inviting, where it was once something drab. We bring in the light, and through doing so we can all see that "bearing" better in these rolling seas.
And with that small introduction I welcome you to come and see my next endeavor at www.TheNeighborHouse.com and at its new blog www.TheNeighborHouse.blogspot.com.
The next step, the next building (block)...

Progress.

Mike Butler

If you haven't read Mike Butler's "Landlording on Autopilot" then click on the book icon on the left and check it out.  Quite honestly, I don't know how I would have even begun building the ideals, upon which my management company is now built, without Mike Butler's insight.  It is full of tools, niches, and a wealth of general knowledge that I doubt anyone (who owns rentals) can live without.  Mike was a full time detective who was buying houses on the side.  He got to a point where he was spending a little bit of time in the evenings working on his portfolio, then, it got to where he was going to bed pretty late one night a week...  Next thing he knew he was working all day, every Saturday.  He stopped what he was doing and looked around.  He looked around and realized that he was managing 75 rental properties from his crowded basement.

Is his trail beginning to sound a little familiar?  Do you feel like you're spending every Saturday answering the phone and driving to houses?  If you do, it's time to automate.  It's time to get out of the drag of managing and streamline your business.  This book isn't a total problem solver, but it's a definite eye opener. 

Jackson, MS - Ranked 10th Best by the Wall Street Journal

Colleagues, 


Several of you have asked for a copy of the article below.  McQueen, a Wall Street Journal (WSJ) real estate journalist, wrote this article naming Jackson MS as the tenth best market for single family residential real estate investments.  It's pretty fascinating stuff.  You can see the original article by clicking here.


Real-Estate Investing: the Best and Worst Markets
World U.S. New York Business Markets Tech Personal Finance
Life & Culture Opinion Careers Real Estate Small Business

By M.P. MCQUEEN

Looking to snap up some investment properties on the cheap? You may want to consider Durham, N.C., Indianapolis and Huntsville, Ala. They are among the best places to invest now, according to a new report that ranks the best and worst markets for conservative residential-realestate investors. Hard-hit Las Vegas and Orlando, Fla., are among the riskiest.

Local Market Monitor Inc., a Cary, N.C., firm that analyzes real-estate trends for lenders, builders and investors, compiled its first Investor Suitability Report using economic data through July 31 for 315 U.S. markets. The firm is best known for its housing-market forecasts, which use "equilibrium" home prices: what home values should be in relation to incomes, job growth and population. In its new report, it uses similar data to rank communities by their investment prospects, focusing on single-family homes.

Regions that rank highly for investment suitability are those where there is a low probability that home prices will fall further, says Local Market Monitor President Ingo Winzer. They are places where income is growing moderately; where employment is relatively stable because of a large percentage of jobs in health care, education or government; and where a relatively small share of jobs is in construction or financial services, which have been volatile. (Job losses in government and education tend to come later in an economic cycle, so some areas could be hit harder incoming months.)

The report, which excludes towns with fewer than 200,000 residents, focuses on price appreciation potential instead of rental income, since falling home prices usually result in higher vacancy rates in apartment buildings and lower rents overall, Mr. Winzer says.

Good markets for conservative investors are those that already have stabilized and should yield average returns, Mr. Winzer says. Dangerous markets probably will see further price declines and have little potential for a turnaround because of poor local economies.

So-called speculative markets, by contrast, are those where prices could fall further, but which also have potential for greater appreciation of 3% to 5% annually after bottoming out—making them more suitable for investors with stronger stomachs. Local Market Monitor identifies Hagerstown, Md.; Jacksonville and Port St. Lucie, Fla.; Modesto, Calif.; and Myrtle Beach, S.C. as speculative areas.

In the best markets, home prices already are stabilizing. Durham, N.C., for instance, is home to Duke University and is near the University of North Carolina-Chapel Hill. Big companies like International Business Machines Corp., GlaxoSmithKline PLC and Nortel Networks Corp., as well as numerous biotech start-ups, have facilities at the nearby Research Triangle Corporate Park. About 40% of area jobs are in health, education or government, according to Local Market Monitor.

Haywood Davis, owner of a Century 21 real-estate brokerage in Durham, says home-sales volume in the area increased 13% last month over July 2009, though prices rose only slightly.

Some other metro areas with large percentages of relatively stable jobs and moderate growth include Knoxville, Tenn.; Lexington, Ky.; and Indianapolis.

Jason Moore, a 34-year-old auto-sales manager in Baltimore, took advantage of plunging home prices in his hometown of Indianapolis to snap up an investment property there—a brand-new four-bedroom, two-bath home—for $56,000 late in 2008.

Prices in Indianapolis were falling because of foreclosures and rising unemployment.  Disappointed with their stock-market investments, Mr. Moore and his wife, Keisha, 32, decided to buy an investment property to add to their portfolio. The Indiana house is generating a positive cash flow of about $300 a month in rent after mortgage, insurance, taxes and fees, he says.

"It has been adding income, and the tax benefit has been helpful," Mr. Moore says.

Yet in gambling-and-tourism-dependent Reno, Nev., home prices slid 50% from their market peak in 2006—and don't seem to have bottomed yet. Mr. Winzer calls the city "frankly dangerous" for investors, along with Las Vegas and Naples and Orlando, Fla., because home prices are still tumbling and local economies are shaky.

John Burns, chief executive officer of John Burns Real Estate Consulting Inc. of Irvine, Calif., says he thinks Reno and Las Vegas have "overcorrected," but he agrees prices could fall further.

Dana Hall-Bradley, a real-estate agent in Florida's Orlando-Kissimmee area, near Disney World, says sales were up 39% last month over July 2009. But prices are still sliding because most sales involve so-called distressed properties—bank-owned homes or short sales, where lenders agree to sell properties for less than they are owed.

Investors, especially those from Canada, the U.K., Brazil and Venezuela, are buying vacation and retirement villas, condos and townhouses in the area, Ms. Hall-Bradley says, because prices already are 40% to 50% below what they were as late as 2007. Many are paying cash.

Condos are even cheaper. "Right now you can get a condo for $30,000 that was selling for $150,000 to $200,000 in 2005 or 2006," she says.

Eamon Lavin of Locust Valley, N.Y., recently purchased three condo units and a single-family home in Celebration, a planned community outside Orlando designed by Walt Disney Co. Mr. Lavin, 43, says he knows prices could tumble further but he isn't worried because he plans to rent out the properties for 10 or 15 years.

"I love the area, and I think it is going to come back," he says. "I get more of a return on investment than putting it in a bank or anywhere else."

Rental Property... What now?

I used to think I owned rental property. It was fun to work "about the task of building a portfolio." Endlessly cutting around town - never a dull moment... Buying rentals is great... I love it. If you've done it aggressively, you know what I mean. And you'd probably agree if you've done it for any length of time that: If we're worth an "ounce of salt" in this business - we all are. We're all good at it. You didn't get this far being silly or uneducated. You've gotten this far because you work at it, and you work at it hard. Hard.

Working tenaciously to acquire rental property is a delightful task. The deals were abounding (then very much so, but now more than ever) and I was "just eatin' it up" how my day to day business life felt as though it was growing in depth everyday. The hustle was finally getting a little bustle and I was getting into a groove. Building a rental portfolio is exhausting work - As I'm sure many of you know. You're doing everything you do (to keep doing what you're doing as a dentist, house-flipper, school teacher, etc.) and yet, you're picking up a new assignment with every hour:

• Pay this insurance bill
• Transfer this amount to your "Property Taxes Account" - (more on this later if you don't have one)
• Field applicants for tenancy

Even if you don't have rental property yet you can imagine how overwhelming this could be. You're dropping the hammer everyday in whatever it is you do every day, and yet your days are drowning you. You must endlessly be doing something. You're always at Lowes. You're always drafting a notice "of change of utilities." You make u-turns in traffic to put out "For Rent" signs, and then when you get to the house you endlessly search for a sharpie somewhere in your truck to scribble your number on the sign only to realize as you drive away... that you can't even read your cell number on it. You keep driving, because you've got something else urgent to do... because some tenant called (as you were hammering in that sign in the yard) about how "their sinks' been drippin' for 2 rr 3 monssz an itz rottin' the cabinet out." All this, and you've been unable to work on anything that would make you any money.

Sound familiar?

What? You think you're days aren't drowning you?

Are you at a place where you think you've virtually got it all under control?

Well, then just think of all the task you aren't accomplishing... How many things didn't get done today. Better yet, skip an interval. How many task weren't accomplished this month? I'm not kidding. Stop and think about it.

This is a huge business. It's enormous, and if you don't have any help you can't make it.

So, now you ask "What should I do?"

Well - find a property manager. Even if you don't use my property management business then please use one of the many management companies that are available. Search them out. In fact, if you need a list that could help you then click here to send me an email. I'd be happy to help you.

Don't loose heart. Jackson, Mississippi is still rated by the Wall Street Journal as the 10th best place to purchase single family residential investment real estate in the US (email me if you want that article). Hold to it - I can help you do it, because I'm living in it.

Keep your chin up.

Google Analytics

If you have a website(s) and you aren't using Google Analytics - Wake Up. Google Analytics (GA) is a Google product that analyzes the traffic at your websites. It is the "meat and bones" of how visitors search for, locate, navigate through and truly convert on your sites. And, remarkably, like most things Google, it is free. Think of harnessing the power about "what other people think about your web presence." GA pulls back the veil and lets you see what the masses think about how you're doing business on the web. Once you begin to use it - it will blow your mind, simply because it answer questions you didn't even know you had. How does Google do it? It's amazing. Absolutely amazing stuff.

You now have the opportunity to see what your conversion rate is without having to subscribe to a consulting's service. GA is user friendly (and of course it's geared to get you buying more and more adwords), but it can change how you present information on the web - and it doesn't cost you anything. Did I mention that part?

If you're interested click here, but before you do please read this very small illustration: On my property management website www.jxnhousing.com I use lots of video for various reasons

• Video tours of available property
• Education
• Introduction of ideas, ie. our application process, etc.

So, by using GA I'm able to quickly see that the visitors who arrive at the squeeze page (where you will arrive by clicking the jxnhousing.com link above) stay on the page for an average of 96 seconds. Adversely, I have a video on that squeeze page that is only 28 seconds long. Now, not because of GA, but because of web-marketing research I thought that I only had 30 seconds or so to speak to those people. What did GA show me?

Wrong.

I was dead wrong. I now know have an extra have an extra 68 seconds to speak to the masses who visit my website that I didn't know I had. I now have the ability to actually articulate what it is that this property management business does.

Do you know how much info you can fit into 68 seconds?

Now, I'm a fast talker and I could probably cram a lot into a minute plus, but imagine the possibilities because of this one piece of info... What if I spent the time to make it a funny video, or beautiful, or winsome. Just dream up the possibilities when you realize that you have an additional 200% + of the amount time you thought you did to be in front of a possible customer/client? (Stop and go back, read that last sentence again. Really, please go back and read that again.) How business growing; game changing is that? So, whatever it's worth - check out GA. What could it cost you, 96 seconds?

Phantom Income

In today's market, more and more investors are selling property on land contracts or through seller financing. Now, I believe that considering the present market condition - it is a great idea. Savvy investors will especially evaluate these two options this time of year for several reasons. 1) It's the way to "build a little warmth" in the time of year when the market goes cold. By using the LC (land contract) or SF (seller financing) you're able to generate that small piece of cash on the front end, at closing. In this time of year, it can be very helpful to generate even the smallest piece of downpayment cash in order to hold out for the warmer seasons when more properties are moving. 2) Investors with large asset loads and potentially large debt loads are looking down the barrel of that creepy part of the year know as Property Taxes. Boo. Ahh... These tax bills have probably started to roll in, and investor's are scratching their heads as to how to tackle them. Often times, if former years were lean, then they are trying to figure out how to cover more than just one year's tax burden. So, all in all, it is a very useful tool to have both the LC and SF in your quiver of real estate tools, but you need to be aware of one particular item: (But first, my disclaimer:)

***My disclaimer: I am not a tax professional, and this isn't advice. It is simply info for you.***

If you sell a house on an LC or SF you could possibly create for yourself a taxable event at the point of sale. As I'm sure you're aware, this event is most often referred to by investor's as "Phantom Income." Check in closely with your CPA about this, but here's how it works.

If you sell the house on a land contract or if you seller finance it you will be taxed on the the entire amount of your profit from sale in the same year that you close. You will also be required to pay capital gains tax since you did not live in the home as a personal residence. Illustration: If you've owned the property for over a year, you have 50K invested in it and you sell it on a LC or you SF to an owner for a purchase price of 80K - then you would be required to pay taxes on the $30K in profit (which is considered phantom income) even though you did not collect 30K. You wouldn't have collected the $30K at point of sale, because the buyer (in today's market in JXN) would have only put down probably some smaller amount like 2.5 or 3.0% at the closing table. It's something you need to be very careful about - especially if you plan on doing this with 10 or 15 houses all across the nation.

Lastly, there is one loop hole. You can sell this house on a LC or SF it and break up the experience of a taxable event if you sell the house on an installment sale. Ask your CPA about this. You can break up how you receive the profit to better line up with how you will be taxed in passing years.

I'm sure you're aware of these principles. I just wanted to be a helpful reminder of what to watch for. Now, If you need some help or you have a house you'd like to sell using these tools please contact me. I've packaged quite a few deals like this for my clients, and using my website (www.jxnhousing.com) it makes things easier. Contact me if I can help you. I welcome the call.

The Time Has Come

Considering that this blog has no followers, I begin this journey like I have begun most of my real estate endeavors - with a quiet decision to do so. I begin it with a clear vision for the future and strangely uncertainty about exactly how to get there. I begin this blog with the intention to only sharpen myself and to further the grow and develop that which I pursue. It may or may not be read, but I'm (at least at this point) only interested in forcing myself to narrate my "travels" down this road of Real Estate Entrepreneurship. By writing it down it will keep my constantly evaluating the past and the steps I've taken each day to pursue my ever-growing vision in Jackson. Clearly noting the past not only shows us our successes and failures, but it helps us figure out the next step to take. Quite honestly, I'm amazed at what the last 5 years of single family residential entrepreneurship have brought me through. It amazes me with ever increasing opportunity. The opportunity I see in the next five years is overwhelming. If the last five have been like this - the next five will be twice as much fun. It's amazing - thank You, Lord. So, readers (if you're out there) thanks for dropping by.