Real Estate Brokerage & Property Management Blog

Here you will find the latest real estate endeavor stuff I engage in on a daily basis.

Thursday, December 17, 2009

Home Teddy Bears

Hi Prospects & Friends,

I wanted to introduce my Home Teddy Bears for sale for $13.99 over @ my C Store on right side of my blog or by clicking http://www.har.com/acoletteharrisprpts then C Store. The bears come in designs of homes and maybe used however like. Listed below are some areas I listed that would be great for sending the bears too:

1. Churches
2. Hospitals
3. Charities
4. Schools
5. Nursing Homes

My bears need love & a home, so whether you decide to send them to places like 1-5 or just give them to a loved one do it for a good deed & cause.



Sunday, December 6, 2009

Office Condo- Investment Analysis

Hi Prospects & Friends,

First I'm trying to leverage a great location for my real estate endeavor I'm developing. I came across this office condo yesterday and analyzed these current stats:

Location- A+
Year Blt- 2009
Sq.ft.- 1,350
Rental Rate- $21.33/sq.ft./year or $1.78/sq.ft./mth
Taxes- $5,072/year
Maint Fee- $185/mth
Proposed Insurance- $250/mth
Listing price- $226,400
Depreciation Factor- 3.175 (31 years max)

So because this is a commercial property I will apply my investment analysis range stat to see if #'s work. I will use 8% & 9% since this is a commercial property & that's what rates are going for right now:


So my investment analysis range for this office condo equates to $191,677-$210,218. So I would not pay more than $210,218 for this office condo based on current stats. The current list price is $226,400 so it's not far from $210,218. Now I will discuss why this office condo caught my attention (besides the current stats).

*Currently has four large offices, restroom, reception area, storage closets, and kitchen. It also has an executive suite with it's own private entry and restroom*.

The office condo includes and "executive suite with it's own private entry and restroom" This highly factors in the conclusion me renting the other side out to another small business. Since my company is set up as a Single Member LLC, and I have no employees I really don't need the whole 1,350 sq.ft. of office. So this would be a great investment endeavor for me to prosper, I would setup as below:

Side A- Has 4 large offices, restroom, reception area, storage closets & kitchen. This would be where my company A. Colette Harris Properties, LLC would be.

Side B- Executive suite with it's own private entry & restroom. This would go to a small business I would rent too. My idea of a typical commercial tenant I would "seek" would be a Real Estate Attorney, Estate Planner, Insurance Agent, Accountant.

My investment stat gets tricky because I will be on 1 side of the building so I will not receive the full $2,400 just the $1,200 in rent per the rental rate/sq.ft. So I will have to reverse the stat to ($1,543+$422+$185+$250=$2,400 so my piti should not go over $2,400/mth instead of the $1,543 in this case. So now because the building would be considered owner/investor user & not 100% tenancy the investment analysis range would state do not pay more than still $210,218 for property and not have a piti of more than $2,400/mth. Applying the reversal with a down payment to the investment analysis range would now look like:

If you get property for $205,000 @ 8% with 25% down ($1,129+$422+$185+$250=$1986-$1,200 in rent=$786. So now the investment stat says instead of me paying $1986/mth (piti) for the office condo I would only pay $786/mth while the commercial tenant pays the $1,200 to equate to my total mortgage of $1,986/mth which falls below the $2,400/mth as noted earlier because of the owner/investor occupancy reversal stat. So the $1,200/mth I'm saving I can now apply to my small business with:

1. Gaining more & more skills
2. Invest in more real estate
3. Invest in stocks & index funds
3. Etc (get my point)?

Getting the right data to come up with my investment analysis stat range is quite tricky, because you have to apply the current facts and other stats, so if you don't know where to get such data to analyze from beginning it would be wise to not engage in this advanced kind of analysis with out someone with qualified skills to assist you. I will monitor this office condo, because it's a good small business move real estate endeavor for me to pursue once it falls in to my investment analysis stat parameters.

So as you can see applying these posts below I've written on this blog to this one can allow one to create wealth the smart way.

Investment Analysis- "Victorian Mini Mansion"
Investment Analysis- "Fourplex"

P.S. I've attached my 2010 calendar I sell over @ my Z Store with my personal real estate quotes. Check it out on right side of my blog thanks!


Framed Wall Tiles- AchEmpire Brand

Hi Prospects & Friends,

I'm introducing my Framed Wall Tiles I sell over @ my C Store for $11.99 on my AchEmpire Channel @ http://www.youtube.com/AchEmpire see them @ http://www.youtube.com/watch?v=OgI2mekRBP8
Framed Wall Tiles maybe hung in:

1. Family Room
2. Kitchen
3. Home Office
4. Living Room
5. Gameroom
6. Library
7. Guess Room
8. Dining
9. Study
10. Or hang where ever you like

They come in a variety of designs and maybe purchased over @ C Store on right of this blog!

Tuesday, November 17, 2009

"Attracting & Keeping" Longterm Tenants

Hi Prospects & Friends,

I wanted to share how important it is to have the benefits of having longterm tenants. I recently called one of my tenants who has been leasing from me since December 2004 and asked him if he was going to renew his lease since it expires 12/31/2009? He said yes and to send the renewal, so I immediately typed the renewal lease form that same day and mailed it off, his new lease will expire 12/31/2010. As I typed his renewal I started to drift back to 2004 and thought about the hard work and skills I managed to learn that allowed me to "seek" him from the very beginning. He is now on his 6 renewal with me and I know many find it hard to find longterm tenants, but in my case I apply techniques I've created myself and tailor them to each individual differently by basing such on their situation. See my "Qualified Crafted Tenant Equation" blog post dated 10/11/09 and view of http://www.youtube.com/watch?v=gdd_bhZ3bcY to see my point. Knowing the right skills to apply from the very beginning will land you a much better reward "longterm tenant" futuristically.

This recession is very tricky and having "longterm tenants" will weather you through the storm. I've owned this property since October 2003 and have gained greatly from it. I've only had 2 tenants leasing from this property. The first tenant was from October 2003-November 2004, and the second tenant was from December 2004 to present. So as you can see I've leased this property with no loss time or rent between the leases from the tenants. I have a trick to that and it involves me putting a "special clause" in all my leases. My "special clause" is something that "keeps" the longterm tenant, while the qualified crafted tenant equation "attracts" the tenant.
I will write a book soon about this, till then visit http://www.har.com/acoletteharrisprpts and click ACHP Published Books & ACHP EBooks and prosper from what I've already wrote so far.

April- Real Estate Broker

Tuesday, October 20, 2009

Investment Analysis- "Victorian Mini Mansion"

Hi Prospects & Friends,

I noticed this mini mansion last weekend on the market and I will drive by it this weekend, because it's a beautiful home and also because it has nice home stats. It caught my eye due to the seller just reduced the listing price $50,000 and is including the furniture in the package. This is a subdivision I've studied over the years and many homes don't come available often. I did my analysis on this home so see the stats below:

Original Listing Price $349,900
Seller Reduced Just Last Week: $50,000
New Listing Price: $299,900
Year Built- 1982
Gross Sq.ft.- 4,294
Bedrooms- 5
Bathrooms- 3.5
Garage- 3 car attached
Lot- 12,100 sq.ft.
Yearly Taxes With Homestead Exemption- $6,252
Yearly Maintenance- $500
Proposed Insurance- $250/mth
Rent/last 6mths- $0.54
Price/sq.ft./last 6 mths- $81.15
5 Year S.M.A. Low- Occurred 11/30/04 @ $58.92/sq.ft.
5 Year S.M.A. Peak- Occurred 4/17/06 @ $87/sq.ft.

Market in last 6 months says this home is worth $348,458, seller has new listing price @ $299,900 including the furniture. So it is an enticing deal, but as a broker/realtor I have to put my hat on as a buyer/investor first. So for me this home needs to come down to my range of $$268,886-$284,643 for me to touch it, because of the recession and market trends I've studied for this subdivision. So I will use rates of 4.8% and 5.35% since the market is saying that's what rates are going for right now at this point. See equations explaining:

(4,294 sq.ft x $0.54=$2,318.76-$521-$42-$250=$1,505.76/5.29x1000=$284,643)
(4,294 sq.ft. x $0.54=$2,318.76-$521-$42-$250=$1,505.76/5.60x1000=$268,886)

So since my range is $268,886-$284,643 and seller originally had it listed for $349,900 and now it's listed at $299,900, and the low was $58.92 and high was $87 in past 5 years. I can conclude right now the price is perfect, but because I like to build instant equity, home needs to fall in my range to make numbers work for me. So seller isn't too far from my $284,643 since it's now listed @ $299,900 and if they continue to reduce the price who knows it may get as low as my other part of my range which is $268,886. The 5 year S.M.A. comes out to for this home see equation below:

4,294 sq.ft. x $58.92=253,003
4,294 sq.ft x $87=$373,578

So I can analyze from the 5 year S.M.A. this home will hit back around $373,578+ when the recession is over and max of 5 year trend from that moment, and I can also conclude this home could possibly wonder down to $253,003 if the recession still lingers, but in this case trying to see a $58.92/sq.ft in this subdivision won't be possible since the price/sq.ft. last 6 months is $81.15. So the only way to win in this case is to watch for sellers like this one and realize they are listing it at $69.84/sq.ft but it's really selling for $81.15/sq.ft as per the price/sq.ft. in last 6 months. Remember this home isn't a foreclosure, so these are rare deals when you find seller doing this. This home is already fixed up and remodeled, so buying this home from the seller right now at their price would be $81.15x4,294/sq.ft. =$348,458-$299,900=$48,558.10 of instant equity which isn't including your down payment if you homestead this home for 2+ years and didn't sell until the price/sq.ft. reverts above $81.15/sq.ft.

If you use my range of $268,886-$284,643 & wait for the subdivision to peak back @$87+/sq.ft. it will calculate to 4,294/sq.ft x $87=$373,578 & instant equity ranging from $88,935-104,692. You would need to at least stay in the home and not flip, to gain this subdivision investment rewards, since it goes through troughs and ridges. I would stay @ least 5 years then roll equity over into another one like this till I landed $500,000 in equity and proceed with next project or till I'm satisfied with what I want. Some of you are thinking how can she get $500,000 in equity? Well lets just take a refresher course, my range is $268,886-$284,643, and seller has already marked property down from $349,900 to $299,900. The $299,900 isn't too far from my range of $268,886-$284,643 which equates to $88,935-$104,692 in equity. So once I see the seller lower close to $284,643 I know I already I got $88,935 in instant equity sitting pretty for me when I sell when the peak reaches back to $87+/sq.ft. Remember right now the price/sq.ft is $81.15 in last 6 months, not $69.84/sq.ft. which is what the seller is wanting right now. So understanding all of my analysis stats in advance will further you alot quicker. So yes finding 5 sellers like this one will land you $444,675 in instant equity ($88,935x5=$444,675, and that is just the high end part of my range for this house. Low end will equate to $373,578-$268,886=$104,692 in instant equity which is $104,692x 5 sellers=$523,460, and also remember I haven't factored in down payments. So if the house alone is giving you between $88,935-$104,692 imagine just adding a measely down payment of 3%+ to all that instant equity you already got? So lets use reverse psychology, my range of $268,886-$284,643 with a down payment of 3% which equates to a down payment range of $8,067 -$8,539, says: my analysis stat range of $268,886-$284,643 will only cost you as little as a down payment range of $8,067-$8,539 to gain a range of instant equity of $88,935-$104,692, which then equates to instant equity range of $97,002-$113,231 (down payment + the instant equity)

So for this to work you have to have the subdivision investment analysis already factored, and then the sellers are the "Jewels" when they do stuff like this in these kinds of subdivisions.

P.S. If you add this article with my "Investment Analysis- Fourplex" you could actually be quite wealthy, because the seller over at that article is doing the samething, but difference is this is a home you would homestead to live in, and the fourplex would be an investment property you rent out to generate monthly income.


Wednesday, October 14, 2009

Investment Analysis- Fourplex

Hi Prospects & Friends,
I came across a property I've been watching mid of this year and wanted to share the investment analysis to understand why I'm still watching it. Currently the Fourplex is listed for sale and see stats below:

Listing Price- $279,900
Gross Sq.ft.- 5,832
Fourplex Components- Has four 2br/2ba on each side
Year Built- 1984
Yearly Taxes- $6,017
Projected Insurance- $275/mth
Price/sq.ft last 6mths- $54
Rent/sq.ft. last 6 mths- $0.54
Calculate- 5% for reserves
Misc- Location A+ (Has main drag & inferior to schools/restaurants/parks/malls/churches/etc)

Market says property should be worth $315,000 ($54 x 5,832 sq.ft.)
Market says rent should be worth $3,149 or $787 per unit ($0.54 x 5,832 sq.ft. /4=$787)

Current Owner/Landlord is renting units at $695 & $625 with long term tenants in signed lease contracts. So $695 x 2 + $625 x 2=$2,640/mth in contract rent. Well since the market in last 6 months says this property is worth $54/sq.ft. & owner has it listed for $47.99/sq.ft I still will not settle for $279,900. Price needs to come down to my investment analysis range of $215,155-$235,967, because yes as a broker/realtor the $54/sq.ft is enticing since it's really worth $315,000 and seller is listing it for $279,900, but trick is my investor hat is on right now and not the broker/realtor hat (that hat will be put on when I sell). My investor hat says see investment analysis below:

Ignore the market rent at $0.54/sq.ft, since the current owner has tenant signed contracts at $0.45/sq.ft. (by law you have to honor lease contracts, until they expire) So I will work with the $0.45/sq.ft instead knowing I know as a broker/realtor the market rent is really $0.54/sq.ft in last 6 months. So I will demonstrate at a 8% and 9% since rates are higher on investment properties, and no points were applied/involved/factored ($2,640-$501-$275-$132/7.34x1000=$235,967)

So my investment analysis range of $215,155-$235,967 on a property currently being listed for $279,900 and really worth $315,000 is a good real estate endeavor to understand and learn to apply to your investment properties. Since seller already has property marketed below market why not wait for seller to continue to reduce your "Jewel Investment Property" to your range? You cant loose in this investment scenario, because seller already has 4 plex listed at $279,900 and it's really worth $315,000. I like to build instant equity so that's why I like to use my investment analysis range equation, while I also apply these rules:

Depreciation Factor- 27 years maxium for this investment property
Maxium life Expectancy- 40 years (it can go beyond this if it's been well cared for with the plumbing & electrical)

Building is already 25 years old, so that leaves me to work with 15 years if I was to buy it now in 2009, and if it falls in my range of $215,155-$235,967 (I would keep it at least 2-5 years out of the 15 years, for capital gain tax rules and market subdivision trend analysis conclusions). So since I already know it's got $35,100 in equity (based on the $279,900 minus market) and can factor in the repairs once analyze the inspection report with inspector/contractor/electrician/plumber I wouldn't want to touch the $35,100. So if I'm told it will cost $15,000 to update the 4 plex eventually with repairs then you can see why my range makes since of $215,155-$235,967 from the beginning of analyzing the 4 plex. My range is also actually saying in hidden numbers if seller lowers to my range I can earn in equity a range between $79,033-$99,845 & that's not including my down payment, instead of the $35,100 which is based on the $279,900 which is already below market, but not below enough for me to touch. I've bought 7 properties using this investment analysis equation and it does build your equity faster if you apply your numbers correctly from very beginning. Also since I'm a broker/realtor and represent myself in my transactions I just take the commission and apply it to any needed repairs and deduct it as an expense against my salary for managing the property, as well as the maintenance expenses for the property. I will write a book in detail about this soon. Till then check out my "Create Wealth From A Foreclosure Homestead" book & ebook on right currently for sale.

Sunday, October 11, 2009

Real Estate Endeavor Tip "Qualified Crafted Tenant" Equation

Hi Prospects & Friends,

I wanted to share with you all a preview video I created about one of my real estate endeavor tenant tips. The video talks about my equation I use for tenants. Enjoy and have fun, I've listed the links below and you may also subscribe to my Youtube Channel.


Journal Preview "Video"

Hi Prospects & Friends,

I wanted to share with you all the video I created for my journals I have listed for sale. Links are listed below, and you all may subscribe to my YouTube Channel also.


Flip Mino & FlipMino HD Camcorder Preview "Video"

Hi Prospects & Fans,
I wanted to share with you all the preview video I created on my YouTube Channel concerning my camcorders I created for sale. Enjoy and have fun, sites are listed below.


Creating Wealth From A Foreclosure Homestead "Video"

Hi, Prospects & Friends,

I wanted to let you all know I decided to create a YouTube Channel, that offers my previews and real estate endeavor tips on my stuff I engage in. Visit link belows and join me by subscribing. I look forward to making new fans!

Visit my YouTube Channel @ http://www.youtube.com/AchEmpire


Thursday, October 8, 2009

Why You Should Use A Realtor

Hi Prospects & Friends,

I wanted to quickly address how important it is when you're dealing with real estate, to not go solo. As a Texas licensed Real Estate Broker, and a Realtor I don't think it is a good idea to try to engage in real estate without a licensed real estate professional. Ask yourself:

Would you practice medical on yourself without a Doctor?

Would You draw up contracts with out an Attorney?

Would you clean your teeth without your Dentist?

If you said no to any of my examples above then, why would you engage in real estate by yourself, without a licensed real estate professional to help with your assistance?

In some cases it makes sense to cut out the middleman and save money like in my post "Cutting Out Middlemen" I addressed back in July 2009. I mentioned how I cut out my Accountant friend who was going to charge me $80/quarter for consulting, and I decided to use the IRS website instead for free since you can call and speak to a rep for free and also be able to print free tax forms up to 1,000 per small business. Or how I mentioned not using a stock broker to manage my broker account, and decided to do it myself. Some things make since to go solo, but real estate I would advise is not. See the "Why use A Realtor" article below from HAR.com

Wednesday, September 23, 2009

Creating Wealth From A Foreclosure Homestead E-Book

Hi Prospects & Friends,

I wanted you all to know I've decided to create my real estate published books also as e-books. So those of you who don't want to purchase the paperback copy, you may have the option to download the book. On the right side of my blog to order the e-books I have a link as well as the paperbacks have a link too. If don't want too navigate to right side of my blog to see books you may click link below and follow instructions.

1. Hard Copy Books click ACHP Published Books
2. E-Books click ACHP Published EBooks

This link I've included will direct you to the hard copy and e-books. I look forward to new fans!



Monday, September 21, 2009

Creating Wealth From A Foreclosure Homestead

************Hi Prospects & Friends,

I've added a category in my Z- Store called Real Estate Book Accessories. So when you purchase my books you may also purchase the accessories that go with the books if want too. If you haven't already purchased my "Creating Wealth From A Foreclosure Homestead" grab your copy along with my book accessories that maybe purchased too. Enjoy and have fun! I look forward to my real estate book being a success!

Thanks, April


PS: To purchase book go to http://www.har.com/acoletteharrisprpts and click ACHP Published Books.

To purchase the book accessories that go with this book go to http://www.har.com/acoletteharrisprpts and click ACHP Z-Store

Thanks, April

A.Colette Harris Properties, LLC Camcorders

Hi Prospects & Friends,

I've just reduced my Flip Mino Camcorders & Flip MinoHd Camcorders down $30 each. Come on over and grab 1 today! No sales tax when shipping outside CA, KY, NV or WA! Click C-Store on right side of my blog to order choice of camcorders.

*Flip MinoHd Camcorder old price was $229.99, new price is $199.99
*Flip Mino Camcorder old price was $179.99 new price is $149.99

Thanks, April

Wednesday, September 9, 2009

Creating Wealth From A Foreclosure Homestead

Hi Prospects & Friends,

I published my first real estate book yesterday (September 8, 2009). The book offers me explaining my:

1. Foreclosure Homestead Technique
2. Offers 1 Case Study
3. Offers A Foreclosure Checklist

Click on the right side of my blog to order my book, and I hope it helps you create your foundation to a path for wealth.


Good Luck,

April C. Harris-Broker/Owner/CEO

Wednesday, September 2, 2009

My Amortization- Technique 1

Hi Prospects & Friends,
I wanted to quickly share one of my amortization techniques I use on some of my properties. As many of you know everyone at times faces hardship whether it's a job loss, medical crisis, loved one ill or etc these situations can sometimes cause us to be set back with in our own personal/business financial decisions if it happens sudden or unexpected. I always plan for any hardship and allow the planning in advance to assist me with bettering my decisions later down the road. One thing to address in your life is when you purchase a home if you want to pay it off sooner don't try and get a loan term that is shorter than a loan term that will benefit you better future wise, just because you feel you want to eliminate the monthly interest present wise. I say this because once you get a loan whatever term you choose you are stuck with it and will have to refinance it to get out. So to bypass all that I suggest consider choosing a term that best fits you future wise than present wise, then apply the shorter term payment to the longer term loan as please. I like to first do the amort tables for a 15yr, 20yr, and a 30yr on the choice of property I'm financing and compare the monthly payments. Next I will make sure their is no prepayment penalty on the loan I want and begin to do my technique. I create the amort tables for the 15yr, 20yr, and the 30yr, then I request the loan term that will benefit me greatly future wise, not present wise. Once I've chosen the loan term then I apply the shorter loan term to the longer loan term to cut interest for the first 2 years when I make my monthly mortgage payments. Since I have the amort tables already printed futuristically in front of me I can see many years in advance what the loan amount actually looks like. So then I apply my every 5 year rule "Technique 2" which will be eventually addressed in another blog post. See my example below of Technique 1:

I purchase a home for $215,000 and put down 20%. Loan amount will be $172,000 @ 5.5% interest. I then apply the next step to analyze the term payments. (Payments are not PITI they are only PI since I based it on 20%, if you have a PITI then just deduct everything except your PI and you can proceed) On a:

15yr payment is $1,405.38
20yr payment is $1,183.17
30yr payment is $976.60

I analyze the term payments and because the $976.60 appeals to me and I'm thinking futuristically if something happens I don't want to have to deal with being stuck with the $1,405.38 for 15 straight years and the only way to get out of the 15yr term is to refinance which is goal to avoid from beginning. So I accept the 30yr term and make sure there is no prepayment penalty and when the loan payments start coming I apply the 15yr term payment for the first 2yrs of the 30yr term. So for the first 2yrs of the new loan I apply the $1,405.38 to the 30yr term instead of paying the $976.60. Since I created the amort tables in advance for myself when the 24th month reaches I glance at the balances. I'm basing my example as if I closed in September 2009, so looking at the amort tables for September 2011 the loan amount for a 15yr will be payed down to $155,694.81, and the payed down amount for the 30yr will be $167,025.14. Remember the original loan was for a 30yr with a payment of $976.60 but I applied the $1,405.38 for the first 2yrs of the loan. Next thing I want to see is what is the price/sq.ft going for in my subdivision once I've reached the 24th month to see how much possible equity I've gained besides paying the extra payments I've already payed. If no hardship has occurred during the 24th month period paying the $1,405.38 then I glance at the amort tables for the loan amounts for the next 3yrs. So in September 2014 the loan amount will be payed down to $128,685.47 for the 15yr term and for the 30yr term for September 2014 the amount will be payed down to $158,784.33. So I go another 3 yrs paying the $1,405.38 and when September 2014 reaches my 30yr term will really be payed down to $128,685.47 since I applied the 15yr payment in advance. When September 2014 reaches I glance to see what is the price/sq.ft for my subdivision, then I proceed with technique 2 which will be discussed later. If you apply this technique 1 with the "Jewel Foreclosure", "Investment Analysis" or "Get Rich Quick 2" articles in this blog you can really advance yourself with wealth/money/assets.

PS- I opened another branch of my online store called the z store. You can view in the panel box or click on right side of my blog and grab something today!

Thursday, August 27, 2009

Framed Tiles

Hi Prospects & Friends,

I've uploaded a front and back image of my framed wall tiles I've created and have listed for sale for $11.99 each. They come in different designs and colors and maybe placed in your:

1. Living Room
2. Dining Room
3. Kitchen
4. Gameroom
5. Bedroom
6. Sunroom
7. Library
8. Family Room
9. Study
10. Guess Room
11. Home Office
12. Etc.

I put etc, because basically you can place the framed wall tiles anywhere you like. I currently have them in my home office, and will put some in my kitchen also. So come on over to my c store located on right side of my blog and get 1 or how ever many you like!



Post Cards "Blank Backs"

Mouse pad is for sale for $14.50 click my c-store for more designs!

Hi Prospects & Friends,

For me marketing the right efficient way will help minimize my business cost and at the same time allow me to put more time with analyzing other business related stuff. Last week I decided to use a particular kind of post card, "blank backs". I ordered 200 post cards for $12.99, and the post cards I ordered I made sure the backs were blank. The front part of the post card had image/design of my choice from the store's selections , but the back was blank because I wanted the ability to leverage the backs with my own verbiage. I created a post card template with my software and customized it with my own verbiage about me and my company and the services I'm providing for this particular post card. When my post cards arrived I immediately starting printing the backs with my template I created. The post cards are brilliant and great, and because I customized the backs myself I was able to re-create thoughts generated as I brain stormed how I wanted the final customized verbiage to appear on the post card back before I printed them on my laser printer. Since the post cards were $12.99 for 200, and they are still $12.99 for 200, I decided to order 10,000 more post cards, which cost me a total of $649.50. So since my customized post card template is saved, all I have to do is order the post cards as I need them with blank backs and print my verbiage from my customized template I originally created. I recommend any small business or anyone in general trying to get the word out about their services leverage using post cards coupled with their brains creativeness.

**PS- I opened another branch to my online store, the "A. Colette Harris Properties, LLC On-line Z Store. The store offers key chains, posters, mugs/cups and postage/stamps. Store is located under "April's Business Websites" to right of my blog**.

Tuesday, August 11, 2009

Jewel Foreclosure- "Bank REO"

Hi Prospects & Friends,

I wanted to share a foreclosure with you all that just hit the market a couple of days ago. The property is a bank reo, and it is priced well below market for this subdivision. The price/sq.ft. for this subdivision is $173.24 as of 8/2009, but the property is currently being listed for $102.82/sq.ft. See data below for this foreclosure:

Listed for $940,500
Sq.ft. 9,147
Lot sq.ft. 37,608
7Br/5Ba/3half Ba
4 car garage

So for a 9,147 sq.ft. house listed for $940,500, that has a market price of $1,585,000 you can't beat that deal, the house stands with $644,500 in market equity just by being a foreclosure. Great deal for the person going to buy this house, they will be of great fortune. This is one of those deals where you have to analyze the estate tax laws also which if not renewed after 2010 will cause this house to be heavenly estate taxed on top of the capital gains and other required taxes. If I bought this house I would just never sell it and enjoy realizing someday who ever I leave the house too will be of great fortune, once the home is paid off. I would make sure I've analyzed every possible tax scenario to keep the prior wealth accumulated with this house.

Saturday, August 1, 2009

Investing With Real Estate

Hi Prospects & Friends,

I wanted to share with all investing with real estate can provide valuable long term rewards, if you do your research wisely. I've been investing in real estate since 2003, but have been doing real estate since 1997. Real estate is only complicated to many when they realize the problems they run into require someone of expertise for such problems. It is always wise to learn the basics of real estate terminology first, then apply the advanced techniques afterwards, if your entering into this business as from the investment stand point. If you're just seeking real estate as a supplement to you're income, and don't want to leverage skills into your time, I would still suggest hiring a real estate professional & still learning the basics of the real estate terminology. Learning the basic terminology of real estate will lay down the foundation, and guide you to your valuable longer term rewards future wise. Once you've learned the basic terminology of real estate and characteristics, then get yourself familiar with what it is you want to invest in, will it be:

1. Condos
2. Single Family homes
3. Land
4. Multi-Family
4. High Rises
5. ?/Etc

All properties listed above come in the form of residential or commercial. Depending how you decide to structure the investment from the beginning will determine if it will be commercial or residential. Example I will note is land, will you invest in commercial land or residential land? Another example if you decide to invest in single family homes their classified as residential, but if you set them up in a corporation mortgage companies and banks will consider them commercial & treat them as commercial loans, as well as tax purposes will heavenly change also. So you can see real estate becomes more complicated as you engage in it more, but the key is continuing to learn everything it is to know that applies to your choice of investment. Feel free to navigate my websites listed on right of my blog under "April's Business Websites" to learn more about me and my real estate knowledge. As well as reading this blog, I offer posts I actually experience and apply investment techniques to help ones understand the principles needed to advance the situation.

P.S. I've included a picture of 1 of my keepsake boxes for sale listed for sale at ACHP On-line Store. Check them out and the many other products I have for sale also.

Thursday, July 30, 2009

Investment Analysis- Duplex

Hi Prospects & Friends,

I wanted to share with you all this duplex I drove by to see a couple of days ago. I'm waiting for the #'s to come down & will try to make an offer. If seller doesn't want to reduce listing price, then I will move on to the next property for my investment portfolio. I currently manage & own 7 investment properties & looking for 5 more to make a total of 12 to complete my investment portfolio, my deadline goal is to have the other 5 investment properties by 2014. I will starting explaining why I want this duplex to come down in price. First here are the #'s & details of the duplex:

Listing Price- $164,500
Contract Rent- $1,590/mth
Taxes- $230/mth
Maint Fee- $85/mth
Proposed Ins- $150/mth
Total Sq.ft. 2,770- Side 1 $795/mth, Side 2- $795/mth
Side 1- 3Br/2Ba- 1,385 sq.ft.
Side 2- 3Br/2Ba- 1,385 sq.ft.

After carefully applying my investment analysis I've come to the conclusion this property can still come down some more in list price to even give me a better opportunity. I will explain see below:

Rents are currently renting for $735/mth not $795 even though the current owner has signed lease contracts stating so. To apply my investment analysis rule to this property see analysis below:

Rents from owners current tenants are paying $795x2=$1,590-$465 (expenses)=$1,125
So $1,125x6.00/1000=$187,500 (6% interest rate)
$1,125x7.34/1000=$153,300 (8% interest rate).

So based on $1,590 rent ($795x2) range is $153,300-$187,500 this range is off because rents are not consumerate with the list price. This is where many people mess up I take it a step further see below:

Contract rents say $1,590, but current market rents say $1,470 ($735x2) so I will re-apply but work with my #'s see below:

Market rent is $1,470-$465=$1,005
So $1,005x6.00/1000=$167,500 (6% interest)
$1,005x7.34/1000=$$=136,900 (8% interest)

See how my range looks $136,900-$167,500? My range is saying I can offer as low as $136,500 or offer no more than $167,500. The current list price is $164,500, so it's falling in my range of $136,500-$167,500, but I like to keep watching people reduce the list price on a property that has great investment #'s like this one, because you can't loose! So fact is I based my range of $136,500-$167,500 on the market rent & not the contract rent to negotiate so I don't over pay, once property is bought it doesn't matter if rent is $1,590, why complain about someone paying you more in rent than market says? My investment analysis range of $136,500-$167,500 says two things:

1. I wont over pay for property currently listed @ $164,500
2. I based range on market rent which is $1,470/2 or $735/unit. So if tenants don't renew I know market rent is $735/unit & not $795/unit & when I list to lease I will always have enough rent to service the expenses @ the $735/unit because I made sure I didn't over pay from beginning to cause the mortgage to be over $1,005/mth.

I use my investment analysis equations on all my investment properties I analyze & if the #'s don't work I walk away & move to the next. Soon I will offer another helpful article about investment properties.

P.S. If decide to take notes on me navigate my ACHP on-line store to the right. The journals I have listed for sale are great for this, there only $12.99 & come with great colors. I've included a picture in this article of the journal also.

Wednesday, July 29, 2009

Get Rich Quick- Part 2

Hi Prospects & Friends,

I wrote an article prior to this one about no such thing as getting rich quick fast in real estate. Well let me re-inform you, you can earn wealth very quickly by having your investment analysis mastered along with the know where about tactics for when, where & how you want to earn your money. In this article I will give a story that is real & explain how wealth can be gained in this business. This is just one of the many stories I have, so take note on my articles because I sporadically post one. I mentioned awhile back in my "Foreclosure Trip" article I'm looking for a foreclosure in a nice subdivision that's gated. My job is to fix up the home & hold onto it for 2+ years then roll over into a bigger foreclosure until I reach my $1,000,000 house without paying $1,000,000. Please take note when I mentioned in the other "Get Rich Quick" article to hold your real estate for 8+ years, I was speaking only for investment properties. With a homestead if you live in your home for 2+ years you don't have to pay any capital gains taxes. Meaning here in Texas if your single you can keep up to $250,000 in gains & if married you can keep up to $500,000 in gains (so learn your limits for your state). This story will land anyone a real "Get Rich Quick" theory. I'm a living witness of House 1, because I went into the home to look at it to advance my investment thinking abilities. House 1 was listed as a foreclosure for $309,900 & sold for $305,000 March 2007 with only being 5 days on the market. The new owners for House 1 financed $274,500 for 30 years. House 2 was listed as a regular house on the market & sold for $380,000 May 2009 & they financed $304,000. Analyzing this situation yes "Getting Rich Quick" will happen with the abilities of mastering your niche. I'm still mastering my niche, but if it wasn't for me knowing (having my current skills) how to analyze subdivisions I wouldn't know how to pick up on these foreclosures doing this trend in certain exquisite subdivisions. There's only 70 homes in this gated subdivision & only 2 homes have sold as foreclosures in last 10 years. So this means not many foreclosures occur, & if they do you've got to act fast to be able to buy it. So what I've done is made a list of other subdivisions similar & are watching them like I've done this one, & when the time is right I will land my first exquisite foreclosure home which will build me wealthier to that $1,000,000 mansion without paying $1,000,000. If you've ever read "Millionaire Next Door" or haven't

buy it here http://astore.amazon.com/acohaprll-20 my post is actually a good example of this book. Back to post see below:

House 1- Sold as a foreclosure for $305,000 3/2007 & they financed $274,500 for 30 years.
sq.ft is 4,873

House 2- Sold as a regular home for $380,000 5/2009 & they financed $304,000 for 30 years.
sq.ft is 4,580

Price/sq.ft as of 5/2009 is $82.97 in this subdivision

House 1 explains how you can "Get Rich Quick" in real estate the real way. House 1 the owners only put down $30,500 but since 3/2007 they've earned $99,312 in equity & got back their down payment of $30,500 so their total equity is $129,812. House 2 the owners only put down $76,000 & have earned nothing since they put down $76,000 5/2009, what is wrong with this picture? House 2 will take longer to recoup their $76,000 down payment back, because the peak in the last decade for this subdivision is $425,000. The most House 2 will ever earn on their investment for profit is $45,000 ($425,000-$304,000=$121,000, but remember they put down $76,000 so they will only earn a max of $45,000 in profit for the trend in this subdivision)

House 1 is the "Get Rich Quick" winner!- Learn & educate yourself about money/assets. If House 2 people were asset smart they would not of put down $76,000 for their house. So even people with money aren't educated correctly on building wealth quick & preserving their liquid (cash). Stay tuned I will right a pamphlet about this & offer it for sale at my ACHP on-line store soon.

I write down my strategies in my task journals I'm selling over at ACHP on-line store. Click on link to right to see them. Enter the contest to win 1 for free for post below this one also.

Tuesday, July 28, 2009

~Free Journal Contest~

Hi Prospects & Friends,

This post is only for the ~Free Journal Contest~. Leave a comment below explaining what you will do with the journal & the winner will be the commenter who comments first with all the F, J and C letters somewhere in their comment name or with all the A, C and H letters somewhere in their comment name. Either group of letters can be anywhere in your comment name, but you have to be the first commenter above others who may have same group of letters to win! So if 10 people leave a comment & they all satisfy either the F, J & C or the A, C & H letters somewhere in their comment name, then the first person who commented first in the 10 qualifying group would win. The journal will be delivered as a gift to place where winner wants to receive it, & the winner will also have the opportunity to choose their color & journal style. Click on ~Free Journal Contest~ title above journal picture to be re-directed to journal styles of choice. I will tweet the winner on Twitter & remember if you don't win, continue to follow me on Twitter because I will sporadically continue to give a contest offering a free random product from my on-line store. Good Luck!

Thanks Much,


A.C.H.P., LLC New Products

Hi Prospects & Friends,

I wanted to inform you all I have launched some more products at my on-line store. The Travel Mug, Flip Mino & Flip MinoHD. Here is a glance of what the products look like. Click A. Colette Harris Properties, LLC On-line Store on right of my blog to see different designs/colors & to order. I look forward to continuing to endorse my products within my business empires globally.



Get Rich Quick

Hi Prospects & Friends,

I wanted to say something about this "Get Rich Quick" scenario with real estate. There is no such thing as getting rich quick in real estate. People who are selling you their books & cd's about getting rich quick are just fooling you into the metaphor ~Rich Quick~ phrase & hoping you buy into it, which many people are. I've been doing real estate since 1997 & know you need more than basic knowledge to earn any money with the real estate business. My philosophy is get your education, continue to advance your education & develop a niche mastered surrounding your education. Nothing in life is ~Quick~ you have to earn the results, if anything remember this:

~A true successful business entrepreneur isn't in business just to make money & get rich, that is actually the by-product from ones learning & experience. It is the mastering of ones skills & staying ahead of your competition that make you a true successful business entrepreneur~

Also if you can't analyze investment equations, advance your skills, know the tax laws or hold onto your real estate at least 8+ years, then choose another career. Leveraging your skills & continuing to advance them will get you wealthier with real estate & any other business you pursue.

Sunday, July 26, 2009

Business Text Messaging

Hi Prospects & Friends,

I wanted to share with you all how business texting has found it's way into my company A. Colette Harris Properties, LLC. permanently, & how valuable of a row it is to allow it. I manage tenants & with everyday company duties I handle, one would think a simple phone call would work. Well my conversing with my tenants has shifted from phone calls/emails to texting for repairs, to when was rent received & general questions about the rental property. I have adopted the texting, because many of the tenants work at companies where they can't use company email for personal use or restricted to making personal phone calls while at work. I get text messages throughout the day/night concerning questions the tenants may have or want to ask me. I reply quickly & get the needs of the tenant accomplished while their at work. For example I had a tenant text me last Friday, saying the bathroom sink has a leak & could a plumber come out to fix it? I texted tenant back asking what is causing the sink to leak, & tenant explained. I said I would have a plumber out Monday, & tenant texted back , "OK thanks". I would say about 5-8 texts were sent back & fourth with I & tenant to converse the repair problem. Another example is most of my tenants want texts with me saying "Received Rent" with the date included in text message. I get texts now from many of my tenants & have accepted it as part of my business & think it's a great business strategy to keep everyone happy I manage. This may not work for many of you who run businesses, & many of you may think I have adopted a un-professional communicating strategy. Well at first I thought I did, and wanted just the email/phone calls during normal business hours, but as I continue to grow the communicating continues to change with technology & people, & in my case I'm accepting the best strategy that works for my tenants. I always thought I would only received texts from family & friends, but now when my phone goes off, it will be a tenant texting me too. My rule for tenants is I will take texts until 10:00 p.m. Monday-Sunday after that the phone gets turned off.

P.S. Picture is 1 of my mouse pad designs offered for sale at ACHP online store. Check it out on right of my blog, along with the other stuff I have listed for sale within the ACHP online store site.

Saturday, July 25, 2009

"Cutting Out Middlemen"

Hi Prospects & Friends,

I wanted to quickly share with you all why it's important to cut out unnecessary middlemen in your business. Foremost it saves you money with your business & advances your brain by understanding the many complications why many businesses get cheated with not knowing how to research basic principles of the purpose of using middlemen. Many of you are wondering if you don't already know, "What is a Middleman"? My definition of a middleman is anyone who is costing you unnecessary money with your business (you can do yourself by using your brain & Internet). Anyone who runs a business even me, know you want to minimize your costs by most definitely choosing the best efficient way to go about saving money for your business situation. To reason this further, I wrote how I cut out my Accountant friend for the quarterly consulting I was doing by email, & how I didn't hire a stock broker by handling my own brokerage accounts in my blog. Read those articles they will explain the middlemen scenario I've approached today. If anything many of you are thinking many of the middlemen you use (banks, insurance agents, stock brokers, lawyers, etc.) you can't cut out & do yourself. In any case when you run across a business situation ask your self "Can I cut some of the duties this middleman is doing by doing myself to save money"? In any case you can for me see below:

1. I cut out the unnecessary consulting my accountant friend was going to charge me $80/quarter, by using the irs.gov for free.
2. I cut out hiring a individual stock broker by researching various stock stuff to manage my own brokerage accounts as I please I opened online by using Fidelity & leveraging their free service.
3. I cut out the company that was charging me a $35 fee to receive credit reports each time I got a prospect/tenant by getting myself setup through this same company to run my own credit reports when I approve tenants. I saved myself paying the $35 & at same time receive the $35 as income for my business since I'm the one running the credit now

I could go on and on about cutting out middlemen to save money, & what I've done to accomplish such, but it only works if your a serious business entrepreneur who is trying to save your business money. I speak the truth through my articles only because I experience this stuff in real business life. I've learned as I continue to grow, no one teaches you much about anything unless their benefiting first. Learn to benefit yourself first when it comes to saving business money with middlemen, & learn to also apply my rule you only benefit yourself second when it comes to your customers, they come first. Check with my online store on right side of my blog to see when I will offer a pamphlet about "Cutting out Middlemen Techniques"

P.S. Check out my journals in my ACHP online store. There great for writing down great stuff you learn throughout your journey. (They can be used for anything, I use them to log in my tasks I do daily with my business/personal life).

Thursday, June 25, 2009

Stocks/Index Funds/ETF's/Brokerage Accts

Hi Prospects & Friends,

I wanted to share another business experience with you all, that might help many of you who may have thinking abilities like me. Back in November of 2006 I had a friend shout out wow I just made $700 off of a stock in 1 day. Well with me at the time being naive about stock stuff, I went to her and said how did you make $700 off of a stock in 1 day? She said my stock broker actually made me the money, & I have know idea what he did. So she then said April don't you have stocks & I said no & don't know much about them. She said you should hire a stock broker and start investing into stocks and grow your wealth besides just having real estate. I left her office and started to think, she has a point & then I started to research stocks myself. I started with searching the word stock on the internet and came up with various stock websites, but none of them were helpful until I ran across Investopedia.com which helps you with stock terminology. As I furthered continuing to research stocks more websites started to appear that appealed to me like Marketwatch.com or Smartmoney.com or Morningstar.com. I realized after all the researching I was doing I wanted to go ahead & spend about a year analyzing stocks. So in all of 2007 I did all my researching, printed articles from various business websites and calculated the equations needed to analyze stocks and created a stock binder. In my stock binder was:

1. Lists of all the stock websites I found that would help me greatly
2. Articles from Forbes, Smartmoney, Marketwatch, etc. explaining stock analysis from different billionaires who have made money over the years.
3. Definitions of the basic terminology needed to understand stocks (alpha, beta, return on equity, gross profit, etc)
4. Line graph charts describing upward & downward trends (y intercept/slope)
5. Examples of stocks billionaires bought & printed them from the investment websites to see the analysis trend and match against the stocks I'm interested in buying.
6. The tax rules & regulations with concerns to stocks/index funds/etf's/annuities

I then after creating my stock binder decided to research Warren Buffet since he appealed to me the most and decided to add a section to my stock binder with his articles from various investing websites like Forbes, Bankrate.com, etc. I remember I came across a article on Bankrate.com quoting Warren Buffet mentioning if you don't know anything about stocks invest in index funds. So I realized I was ready to buy this stuff, but didn't have a stock broker. Well with all the fraud that was going on back in 2007 about stock brokers hiding the investment analysis data from their clients, I decided to research how to open an investment brokerage account myself. After analyzing information from various websites and calling Fidelity & Vanguard I decided to come to the conclusion to make Fidelity Investments my main brokerage account since it worked better for my stocks/etf's/index funds & make Vanguard my retirement account for only my fixed/variable annuities. So after all of the calling from Fidelity & Vanguard reps constantly and asking questions I came up with the conclusion:

1. I will do my own stock/index fund/etf/annuity purchasing
2. I will use Fidelity as the (stock broker since I don't have to pay them nothing) & I've called them various times with my stock data in front of me & asked them questions & they have helped me greatly. They only charge if they purchase stocks/etc for you, but in my case I do my research first then get a little more analysis from them, then purchase myself after they helped me understand.
3. Use my stock binder as a go by
4. Use Warren Buffets book Interpretation of Financial Statements, which I use every time since he uses equations for calculating gross profit, etc. See http://astore.amazon.com/acohaprll-20
So in conclusion it took me all of 2007 to be able to analyze my own stock purchasing and I was able to open my very own brokerage account in 2008 with Fidelity, Vanguard I opened in mid 2008. My point is I'm saving myself stock broker fees by just doing the analyzing myself and purchasing my own stocks/etf's/index funds/annuities. I make it mandatory to glance at my brokerage account once a day by getting online and looking (since Fidelity only sends the statements when activity occurs/quarterly) and also I put in about 10 hours monthly with the analyzing/researching/staying up to date. I like the fact since I manage my own brokerage accounts:

1. I can buy & sell as I please
2. I don't have to rely off of a stock broker to send me data just quarterly, because I want to see data everyday or when I feel like just seeing it randomly without paying extra.
3. I'm saving stock broker fees
4. It's not locked in a 401k or IRA where the control is still being stipulated by the employer
I know all this may sound like alot of work in the beginning, but if you want to avoid fraud in the stock business it's best you learn all the basics and work independently the rewards are greater.

FYI- My friend who earned the $700 in 1 day asked me awhile back so did you ever talk to a stock broker about opening up a broker account? I said no, I decided to do it all myself, & told her thanks for suggesting anyways. She then said April do you realize the risks of what your engaging in? I said what risks you mean where I can get full control of buying/selling my own stocks/etf's/index funds/annuities & not pay stock broker fees, that's not called risks in my vision but rather called entrepreneurial investment smarts. She then looked at me & said April you should get your stock broker license and open up a brokerage firm & manage funds & mind I will be you first client. I said at this time I don't want to go public with managing other peoples funds/broker accounts I like my hobby I've created for just handling for me, which is less risky. She then said April you've used risky different than way I used the word with what your doing for yourself., and that I have the ability to take something out of something someone else recommends & actually engage in carrying out the results to benefit me greatly. I said you really think so, because I had this same situation with my CPA friend see "Tax Forms/Service" article in my blog. I told her honestly I just like saving money & doing my business stuff myself if I can. She then said no April I don't think you realize your research/stock websites are actually an equation you've developed for yourself & that's more than an average person would think of doing just as a hobby. Will offer another article soon.
P.S.- I have so many stock websites I use for my research/investment analysis I couldn't list all of them in this article, so I only listed a couple.

Tuesday, June 2, 2009

Tax Forms/Service

Hi Prospects & Friends,

I wanted to share a business experience I had awhile back with one of my friends who is a CPA. As a small business owner I try to minimize my business expenses by carefully analyzing the situation/costs. I ran into a problem last year where I was emailing my CPA friend every month asking tax questions about 1099 misc forms, and other related tax forms. He told me April your a good friend, but I'm going to have to start charging you because your causing me to actually engage in consulting, than just a short email answer. So I said ok what is your consulting price, and he said $80/quarter (every three months) with unlimited email questions. So I then said ok I will send you the check, as I said that my brain started thinking there has to be a way to figure this stuff out by myself. So I started surfing the web and came across the Internal Revenue Site. After surfing the site for an hour I came across these things:

A. They offer free tax forms with maxi um of 1,000 for small businesses, and will deliver to your office or home for free.

B. They offer free samples of tax forms, so you can use that as a go-by when trying to fill in your own tax forms.

C. They have a free tax # to call for your tax form questions, and a rep will assist you

D. They offer business seminars to small businesses
E. There link is http://www.irs.gov/ favorite/save it on your computer so will have

So after analyzing after an hour of the Internal Revenue Website, I decided it didn't make sense to pay my friend who is a CPA $80/quarter for tax questions, when I could get what I needed from this site for free & talk to a rep for free. I called him back the next day and said why didn't you tell me about the Internal Revenue Website? He said April I have to make a living just like you and mentioned he was upset with me for going on my own to get my tax question stuff answered for free. I realized I wasn't wrong for what I did and realized he has to make a living just like the rest of us, but my personality trait of being a curious small business owner/entrepreneur caused me to go on my own to get my tax form solutions myself. So my summary is I've replaced my CPA friend with the Internal Revenue Website as my consultant which is free, and saved my company $80/quarter for tax form questions.
"Don't get me wrong my CPA friend was actually a great friend and allowed me to get away without paying all in 2007 and mid of early 2008, but it was around April 2008 he said the recession started to affect a bit and decided to charge me $80/quarter consulting fees. So I then thought because I never paid him anything for the consult emails I was use too getting for free, I had to think quick/fast. My idea about leveraging the Internal Revenue Website was generated the same day he said he would start charging me after I hung up. So I never ended up paying the $80/quarter consulting fee".

FYI- I only leverage this site for my free tax forms and tax related free questions with rep for those forms, because it's saving me $80/quarter than with my friend CPA. *My biggest gainer is I'm saving my business from paying unnecessary consulting money* This site allows me to get my tax questions answered for free unlimited and tax forms free also. I'm just not paying anything, and all its costing me is my time. The site will benefit each business differently, so can use however like.

PS- Picture in article is 1 of my journal designs I offer for sale in my on-line store. Click on ACHP on-line store to the right to see the many other design colors for sale if interested. I use the task style journal for my small business when logging in my tax form question answers I get from free tax rep. Will offer another helpful article soon.

Wednesday, May 20, 2009

Asset Equation

Hi Propsects & Friends,

Wanted to quickly share an asset equation I use when I analyze my assets needed for my age. This equation will work for anyone, and is greatly needed to determine where you need to be with your financial assets. Meaning what you would need in assets based on your age and income. See equation below and examples:

Yearly Income X Age/10= Assets needed

So let's say I'm 49 and make $125,000/year. Equation would be $125,000X49/10=$612,500. So you would need at least $612,500 worth of assets to satisfy this equation. So if your 49 and make $125,000/year and don't have $612,500 worth of assets, your in deep trouble!

Lets say I'm 25 and make $25,000/year. So $25,000X25/10=$62,500. So if your 25 and don't have $62,500 worth of assets then your in deep trouble!

It's recommended you take equation seriously, and start making it a habit to calculate your numbers ASAP. I have equation on my refrigerator and calculate my asset worth once a month to see where I stand with numbers, as well as what I need to do, if I'm not close to what equation says I should have in assets for my age. A trick I like to do with this equation is calculate futuristically my age and asset worth and act on it at current age so when reach futuristic age, the assets have been already accomplished and may have alittle more than planned since it was orginally calculated futurisitcally from beginning. See example of my trick:

So if I make $150,000/year at age 33, but calculate using age 55 instead, I would need $825,000 worth of assets to satisfy equation. So if I'm 33 this will be a no brainer since this is being calculated on being 55 instead of me calculating the equation based on being 33. So I know at 33 I got 22 years to gain $825,000 worth of assets to satisfy asset equation for 55. This trick just makes you work harder in the years you don't need too, because if I calculate on being 33 I would only need $495,000 worth of assets, but if I'm 33 and calculate as if I'm 55 I would need $825,000, get my point? (you get ahead faster thinking this way, well for me anyway) Also remember to don't let the asset equation scare or discourage you if number you get is no where near what you already have acculmulated in assets. Treat equation like it is a state test you have to pass (attorney/real estate broker/teacher/nurse/doctor/etc) you know if you don't pass state test you won't get license to practice, and you also know if you fail by a merely 2 points you have to retake whole state exam again, not just questions you missed. So treat this equation like that, and good luck. Check with my online store regulary to see if I've posted a book for sale about the asset value equation.

PS- Assets can be liquid or non-liquid or a mixture of both, when trying to figure out once get asset value where to start. **If like clock picture, actual clock is for sale in my A.C.H.P., LLC online store, click link and check it out on right part of my blog***

Monday, May 18, 2009

Recession Business Decision

Hi Prospects & Friends,

I wanted to share a real life business experience with you all that just happened recently, and hope you all learn from it. I recently had a tenant contact me by phone and said he loss his job of two years and would not be able to pay rent anymore. At first as a business owner I went into shock and told my tenant I would have to call him back so I could figure out what I needed to do to work our such a situation. I immediately pulled his file from my filing system and glanced at his lease and saw he would still owe me $8,500 since he signed a 13 month lease this year. After careful consideration I called back my tenant and said their is no need for me to hold you accountable for the remaining $8,500 you will owe me, or me start the eviction process because at that moment I felt sad that he was going through so much. He was taking care of his ill mom, dealing with a divorce, loosing his truck, & at that second I put myself in his shoes & told him I understand as a individual & not analyzing the whole situation based just as a business. I told him he could leave out of the lease without owing me the $8,500 and to stay with a friend or family member until he found work and not to tie himself down to another lease, and I wished him luck. He told me he didn't understand why I didn't put a landlord lien on his credit for the $8,500 he owed me because he's seen his friends go through same situation with other places they've rented and their property managers started the eviction process with no concern of their personal situation. I told him just think of me at this point as someone assisting you from the work of an angel, and not a business at this time. He told me thanks and he would never forget how I helped him in this bad recession. I realized as a business owner no matter what my business mind said was the normal thing to do, which was start eviction process, it was my heart as an individual that realized what if this was me? I know there's not many businesses out their that will take a lost first, because it's not business smart, but I guess in my case no one is telling me how to run my business, since I'm the owner. It is always wise no matter what to look at every situation as a business owner very carefully, because you never know when something major will happen to you. Many of you may see me as taking a major loss for not collecting the $8,500 from my tenant, but I see it as a gain, because I know somewhere someday God will look back on my decision and be very proud of me.

Monday, April 27, 2009

Foreclosure Trip Tip

Hi Prospects & Friends,

I went by to see this foreclosure last Saturday. The house is nice in size being it is 4,654 sq.ft. & listed for $209,900. The only thing I don't like about it, is the color & design style, other than that the house is perfect, because all the #'s work. I'm on a destiny to find myself a foreclosure to fix up & live in for myself that has an elegant style & rich in taste, as well as priced right & #'s work in my equation like this house. What I mean by #'s is calculating the taxes, maintenance fees, & insurance to estimate what my p&i mortgage payment/sales price should be. See example below based on this foreclosure:

Yearly Taxes- $7,810
Annual Maintenance- $400
Proposed Yearly Insurance- $3,300
Monthly Totals- $959.16 (Taxes, maintenance fees, insurance)
Monthly rents in this subdivision are going for .52/sq.ft. So this house is @ $2420.08
Mortgage p&i payment for this foreclosure only should be no more than $1,460.92/mth., based on my analysis.
CMA Value- $73.92/sq.ft (this foreclosure's value is really worth $344,000, based on CMA in last 6 months for this subdivision)

A interest rate will make or break your situation, so let's compare 6% & 8% interest rates on my example & investment analysis equation.
Listing Price $209,900
Interest Rate 6%
Down Payment 20%
Allowed Maximum p&i $1,460.92, expenses $959.16
.52/sq.ft. say value should be at $244,000 ($1460.92/6.00x1000)
So in this case with 6% interest your p&i is $1,007.52 which is less than the $1,460.92 I said was your maximum amount you shouldn't go over with p&i mortgage payment, add this to $959.16 & your safe @ $1,966.68, which is less than $2,420.08. #'s work @ 6% interest & in this case prospect can settle at list price of $209,900 or lower if want.
List Price $209,900
Interest Rate 8%
Down Payment 20%
Allowed maximum p&i $1,460.92, expenses $959.16
.52/sq.ft. say value should be at $199,000 ($1460.92/7.34x1000)
So in this case with 8% interest your p&i is $1,232.53 which is less than $1,460.92 I said was your maximum amount you shouldn't go over with p&i payment, add this to $959.16 & your safe at $2,191,69, which is less than $2,420.08, but CAUTION your .52/sq.ft. says you shouldn't be paying more than $199,000 for this house!
So conclusion is the 6% & 8% interest rates both have total monthly payments falling below threshold of $2,420.08, but both have different value analysis based on the .52/sq.ft. investment equation. 6% is safe because it says current list price is ok for this buyer & should be @ $244,000, but 8% says for this buyer list price isn't ok & should be @ $199,000. You don't want to over pay for any property, not even a foreclosure based on your interest rate. So play smart & raise your financial smarts!

I will offer a book about my investment analysis equation I use. So check regularly under April's business websites in the online store to see if it's for sale or not. Will offer another helpful article soon.