How to Tell When you’re looking at a Bad Investment Property

When you’re researching any investment property, it’s critically important to be able to spot trouble before it happens. One of the most difficult, and most dangerous, problems for property investors is the occasional risk of acquiring a bad investment property. These things can cost a fortune, and can do serious damage to other financial interests as money has to be moved around to cover costs and losses. The only way to avoid these problems is to ensure that you’re able to instantly identify bad risks.

Being able to identify a bad risk easily also creates a very reliable quality control for your investment options. You can discard inferior options quickly, saving a lot of time, and often a lot of money.

Defining a bad investment property

The best way to ensure that you avoid bad risks is to use a set of characteristics which will instantly identify bad or even substandard properties. You’ll literally be able to recognize a bad risk on sight.

The definition of a bad investment property is:

Any indication of over valuation- Indications include high valuations for obviously low grade premises, and a price that really doesn’t stack up against comparable properties. The vendor may have put a high price on the property for negotiation purposes, but the property is still seriously overvalued and priced for unwary buyers, not a good sign under any conditions. Avoid like the plague.

Any sign of poor maintenance- Lazy and unscrupulous sellers don’t put a cent into maintenance, and signs of covering up defects like paint jobs and tacky internal or external work are another sure giveaway. Real costs of upgrades and maintenance are likely to be very high. These properties are real sucker bait, whatever their price. Don't touch any property if you’re not 100% certain of its condition.

Sales pitches- Ironically, one of the most certain signs of a truly lousy investment property is the overdone sales spiel. A typical sales pitch for a bad investment property is usually along the lines of “great first investment opportunity” “bargain investment in a great location” or similar clichés. In practice, the investment opportunity is for the seller, not the buyer. Location is irrelevant if you’re stuck with a high cost property. You can do a lot better for much less outlay.

Fittings- Very reliable indicators of a bad investment property are the fittings, usually overlooked by sellers. Ancient wiring and plumbing is a guarantee of major problems. The old wiring is likely to be a major fire hazard and will need replacing. The plumbing can cause serious issues, particularly in terms of property structure and in apartments, the risk of causing damage to other apartments is a virtual guarantee of lawsuits.

To put the real costs of buying a bad investment property into perspective- You can buy a top quality investment property off the plan that has no defects and is brand new for less the real cost of buying one of these awful, black hole investment properties. Your capital gain will be a lot better; your rental revenue will be much higher and you won’t need to practically rebuild the place.

Minimizing costs means making more money. Avoid the bad risks and focus on the high quality properties.

Apple Founder Steve Jobs Dead At 56 - Modern Day Edison

Apple founder Steve Jobs died today. Some of us use his products and love them. They have made a big impact on computer users and enthusiasts around the world. People love their Apple computers. Only Steve Jobs could get you to love a box of wires.

He was the type of person who was larger than life. His focus was laser sharp. He knew what he wanted and always set out to get it, everyday. He was so interested in making wonderful products that he came across as arrogant and impatient. But as the visionary maybe he knew time was short. He accomplished much in his life, but you always looked forward to what else he had to give us. We will never feel that way again.

He brought the computer industry from the days of stone knives and bear skins to elegant, machined, works of art. They do amazing things for us that were only the dreams so few years ago. But his dreams were built and are now in the homes of millions.

To some people computers are just tools to do an assigned task. To many they are a ways and a means to make dreams come true. Steve Jobs wasn't the only one to build computers that do work. But he made computers and electronics that changed lives. That changed the world.

You may think I am stepping out there, in my title, by comparing him to Edison. I don't think so. Like Edison, who's invention of the light bulb, changed the course of human kind. Job's contribution to software and hardware has set a path that will be followed for many years to come. His ideas are now foundational for all computer hardware and software. Just like Edison's invention is still basically the same idea 100 years later, so will Jobs be.

With the passing of Steve Jobs, a life cut short in it's prime, we will never see what Steve's next big idea would have been. It's one of the saddest things for the world to have such a great mind cut off and not be able to give more amazing things to the world.

Bank of America, Your New $5 Fee Doesn't Scare Me

Image via WikipediaBank of America is initiating a $5 monthly fee on people who want to use their debit cards for purchases. Customers using their card just at the ATM will not have to pay the fee. Already Wells Fargo, the other giant mega bank, has said it plans to test a $3 fee, which they say is because of new federal rules that made the cards less profitable for banks.

Out of all the banks, Bank of America has the most financial problems. It has more problems with bad mortgages, fallout from the sales of bonds made from those loans and questions about how it serviced its home mortgages. So it was inevitable they would be the first bank to try and recoup some of those losses.

The only way around not paying the fee is to have your mortgage with them or have more than $20,000 in account balances. So for the average customer, the fee will have an impact.

What should you do?

You can change banks and find one that doesn't have the fees. Many people are looking not to other banks but to an alternative thats been under the radar for many years, credit unions. These institutions main purpose is to serve the community. They are mostly local and sometimes regional. They are run under a non-profit business plan. So the fees are low or non-existent. The interest rates charged on loans and mortgages are lower than normal. Also the interest rates they pay are higher. They run the business totally for the benefit of the customer. In the U.S. you have the choice of many credit unions.

Go to CULookUp.com to find a credit union near you

Why not just pay the $5 fee?

If you have been at a bank for many years the hassle of finding and moving to another bank is just not worth the hassle over $5. I spend that much on one Starbucks coffee. Many people already have a bank they are happy with. They know where every branch is, the hours of operation, the ATM's, etc. It's not like they are charging you a exorbitant fee. For the price of a movie rental, you have the convenience you are already use to.

How Bloomingdale's Ruined My Weekend

Image via WikipediaYou never know how a trip to the mall could go so wrong. Well, one weekend my wife and I were planning a trip to the mall. My wife's goal was to go over Bloomingdale's. She had been wanting to buy a watch for quite a while. She is very careful how she spends her money so planning is step one in any purchase. She saw in the Bloomingdale's Sunday ad a watch that look very nice. She did some Internet research and concluded with the sale they were having, the price was right. Also the gift card she received from her boss along with a previous credit would make the purchase even more desirable.

The day of the sale came and we went down to the store to make the purchase. She has a Bloomingdale's store charge account and if she used it she would receive another 10 percent discount on the sale. The stars were aligning for the glorious purchase. But little did we know all would soon go very bad.

Credit cards are not you friend. 

The watch was selected, checked over, and ready to purchase. The discounts were in place and the price was the bargain of the decade. As the clerk rang up the sale she mentioned my wife's card is not being accepted as an open account. We were informed that the account was closed for inactivity. This was hard to believe because we still received advertising monthly from them in the mail. If it was closed why weren't we informed.

Things were looking very bad, we were informed, after a phone call to the company, that it was true; the account was really closed. But no worries the clerk said, just open a new one. And with the new one you will receive a new card discount on your first purchase. The clouds parted and the sun shone through again. Immediately, she filled out a new application. All vital information went into the clerks register and the process continued. The clerk had been happily chatting with my wife throughout the whole process until a look of disbelief fell on the clerks face. She exclaimed in horror, " You have been denied new credit." Well I can tell you this didn't go over very well with my wife. She is very protective and proud of her credit and credit score. She was mortified and quite upset.

Help! Get me out of here!

How would we get out of this situation and how could I get out of this mall as soon as possible? The clerk came up with the bright idea that I use myself as the Guinea pig and apply for the card under my credit. My wife agreed that there was no other choice for this problem. As she was hyperventilating I handed over the necessary information for the application. The whirring, clicking and flashing lights of the cash register soon produced a positive response. I passed, credit would soon be mine. The purchase was completed and we started to leave when the clerk said, "For being a new Bloomingdale's customer we would be receiving a $25 gift card in out first bill. My wife was strong and didn't go back to slap the clerk.

You may think the whole adventure was over then, it wasn't, my wife saw there was no reason to deny her credit so she was going to get to the bottom of this situation. She made calls to the Bloomingdale's credit card 800 number but never heard a satisfactory explanation. She was told that she would be receiving a letter in the mail from Experian explaining the reason why.

The letter soon came and indicated that she had "an excessive amount owed on accounts" nothing more. We went online, got her Experian credit report. There were no bad marks. All accounts paid on time and up to date. Besides a leased car, only $8000 in credit being used. Still no red flags.

Was all this hassle worth it? For me, I take it all in stride. But for my wife it was a problem. Was saving more than 60% on the watch worth all this hassle? It was for my wife.

Credit cards make you jump through a lot of hoops sometimes to save money. Their use can save you money, when not abused. We may feel we are using them to our advantage. But, whether it's reward points, purchase discounts, or other incentives it feels like we are slaves to them anyway. See you at the mall.

The Top Eight Reasons to Get a Seasonal Job

Image via WikipediaThe holiday season will be arriving soon and with money in short supply it's just what the doctor ordered. You may of been out of work for a while, this is a good time to get your foot in the door and maybe turn it into a permanent job. Sure it's only September but companies are now hiring for the up coming season. Don't be shut out, start looking today. 

You may already have a job, but having a seasonal job has many benefits. 

Here are eight reasons why a seasonal job might be a good idea.

1. Make money for the holidays. Whether you already have a full-time job and you want to work part-time to supplement your income, or you just need extra money for gifts, you’ll definitely have more green in your wallet after your first paycheck of the season.
2. Flexible scheduling. Are you a student on winter break? A parent who has to watch your kids now that school is out? Holiday jobs offer a variety of scheduling options, and because stores and restaurants are open later, there’s bound to be a shift that fits your needs.
3. Get a great discount. Don’t want to wait until Christmas Day to wear that sweater you've had your eye on all season? Many companies offer their workers employee discounts on merchandise, even if they’re only on the staff for the holidays. So you can get gifts for everyone on your list—including yourself—at cheaper prices.
4. Learn a lot in a few weeks. Though holiday jobs can start anytime in October, November or December, most are over sometime in January, making seasonal employment a great way to test the skills you already have, as well as pick up some new ones to use in your next job search.
5. Find your next job. A seasonal job is a great opportunity to get your foot in the door and make a good impression, which can turn into part-time or full-time work after the holidays. Some employers ask superstar seasonal workers to remain on the staff once the holidays are over, so if you do your best, you could have a spring and summer job as well.
6. Test drive a new job. A part-time job during the holidays allows you to try out a job you're interested in to decide whether or not it's really right for you. Whether you end up loving or hating it, your pockets will be fuller either way.
7. Make new friends. Most businesses are fully staffed during the busy winter months, so you'll have plenty of opportunities to meet new people and bond with coworkers. Suggest a company Secret Santa drawing and you could even get yourself an extra gift.
8. Get a reference for your next job search. When the hustle and bustle of the holidays is over, ask your boss if he or she would be a reference for you when it comes time to search for summer jobs.

Why Does Warren Buffet Want To Pay More In Taxes?

Image via WikipediaWarren Buffet, the "Oracle of Omaha, thinks the rich are not paying their fair share of taxes. He announced that he pays less taxes than the people that work for him, like his secretary.

 "Last year my federal tax bill -- the income tax I paid, as well as payroll taxes paid by me and on my behalf -- was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income -- and that's actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent." says Warren Buffet.

 Some claim that his calculations are off. The money he receives in dividends has already been taxed once at the corporate level. So his personal taxes are the IRS’s second taxing of the income. And that's why he takes his income in dividends only.

 Warren Buffet and the wealthy like himself are the exception and not the rule. He has control of a vast amount of wealth and capital. He isn't rich, he is super-rich. His company and many other prosperous companies are sitting on billions of dollars in domestic banks. Add to that the billions kept in overseas banks of American companies profits that will not come back to this country because of high taxation.

 Mr. Buffet is in the position to pay higher taxes. But the so called rich, those making $200,000 - $500,000 range are not being paid in dividends like Mr. Buffet. They are most likely being paid a salary with some bonuses. Are they the rich he is talking about. They are the ones that already pay high taxes and don't want the ideas of Warren Buffet to come into fruition.

 I compare Warren Buffet to the Henry Ford's, J.P. Morgan's, and John D. Rockefeller's of the last century. They were wealthy enough to bailout failing companies and do the right things to help this country before their were bailouts. It was done right at that time when fiscally healthy companies stepped in and bailed out failing companies.

 In 1907, during a vicious stock panic that threatened to engulf the U.S. financial system, J.P. Morgan single-handedly stepped in. "This is the place to stop the trouble, then," he said, while putting his own funds at risk to orchestrate a bank bailout. Amid the panic, John D. Rockefeller loudly deposited money in a troubled bank and pledged to buy stocks. In 1914, at a time of rising labor unrest, Henry Ford shocked his competitors (and the establishment) by announcing he would pay assembly line workers the above-market wage of $5 per day. These moves may not have seemed economically rational at the time. People who commit big sums to equities in the middle of crashes generally lose money, and businesses that intentionally pay unskilled labor above-market wages tend to go out of business. But they were actually very shrewd investments in the system. If U.S. markets ceased to function, J.P. Morgan's firm would have been among the biggest losers. Ford reasoned that his company would prosper if he could turn the automobile from a luxury product into a utility for the working- and middle class. He wanted to pay his workers enough so they could afford to buy his products. It worked out pretty well for Ford and his heirs.

My View:

 Mr. Buffet should forget about his tax ideas and concentrate on what he knows best, building companies and making money. We should of put him in charge of the so called bailouts. He could of done the whole thing in less time and at half the cost. It should of been left to the private sector to heal itself. The government is pathetic at anything financial or business.

 Warren Buffet should use his goodwill and knowledge to lobby the administration to think like a business man.