IRS and Real Estate!

Tax season is just around the corner and this year is especially intriguing because of the loss in income to many Americans.  The good news is less taxes to be paid by many of us, but our goal should be to pay taxes.  I know it sounds funny, but if you are paying taxes, it means you are making money.

In my college days, I remember getting refunds and being so excited to get some spending money.  I have noticed today, especially with people on fixed income, that they do NOT want to make more money, because they will exceed their income threshold and lose some of their social security benefits.  I often think that this is so strange.  People actually do NOT want to make more money!!!

My father falls into this category.  He gets a fixed amount from the government and if he exceeds a certain income level, he loses his benefits.  one of my goals has always been to NOT depend on the government for financial assistance.  As a result, I try and be as productive as possible.  Real estate is one of the best hedges against not only inflation, but against the worry of having to make too much money.

I have 8 investment properties in addition to my principal residence.  My goal is to either pay all of them of and live off the rental income or sell them and reinvest the proceeds into a high interest bearing investment.  I enjoy a great tax deduction on my investment properties thru depreciation, maintenance costs and interest deductions. 

The other option is to move into one of them.  I have some in Texas and the Carolinas.  The cost of living in Texas and the Carolinas is very low compared to California, so if an emergency comes up, I am protected.

Real estate is an amazing vehicle to help you climb the retirement mountain, especially in hard economic times.  If your property is not appreciating, you can always rent it out and have the tenant cover your mortgage.  Everyone needs a roof over their heads, so there be a steady pool of tenants to choose from.

If you are in Southern California, one of the best areas to invest in is www.NorthwoodPointeIrvine.com with its amazing school system, close knit and organized community and state of the art amenities, it is one of the best places to live and raise a family.

For a complete list of available properties, go to www.MichaelDunn.com and click on the “search mls” button.

Happy investing.

Mike

Posted: March 25th, 2010 under Hot Tips, Real Estate News.
Comments: none

Earthquake in Los Angeles and Real Estate!

Around 4am this morning I was awakened by a jolt and it turned out to be an earthquake.  When I got to the gym around 5:30am, there were reports all over the news. 

Interesting how the news works.  The unusual or mundane dont seem to get much coverage.  Things like teachers staying after school to help the failing student learn that one last math problem or a local real estate agent rushing to show a property with only 15 minutes notice and then the potential customer calling to say they changed their mind.  Things like that don’t make the news, yet they are the daily happenings that make this world go around.

The other day, a buyer called me and said they had wished they listened to me last summer when I have 3 listings under $800,000.  They missed out on some good deals.  Today the $800,000 market is up to $850,000.  I called the buyer to let them know of a new listing and we looked at it and they loved it.  Well I found out they put an offer on the same property with another agent the next day.

I called them to find out what they wanted to do (knowing they put an offer in already) and they said: “Well we are getting our finances together and are on hold for now. ” Remember, I knew they put an offer in already.  So I asked him again if he wanted to put an offer in and he said “no”.

So I asked him, did you put an offer in on the property and he skirted the question by saying for now he wanted to go over his finances.  I told him, why did yu put an offer in.  His response was that he did not know it was public information.  Basically I caught him in a lie.

I told him that is not the way to treat people.  I told him that I did not appreciate his lying and that he should show more respect to people.  He apologized, but the damage has been done. 

There is a prevalence for people to take people for granted and it is the wrong way to approach business and life.  Loyalty begets loyalty.  I have several past clients who I would show them good deals before others because they have proven their loyalty and friendship.

Real estate is an interesting business in that it is an investment and a very personal decision.  The physical structure of real estate is a place where family eats and sleeps but it is also a place that is an investment.  The people who help to sell or buy the physical structures are also people with feelings and dreams and should be respected as long as they treat you with respect.

In professionla sports we see athletes sometimes lose their tempers and it makes the news.  In business, when someone disrespects someone, it does not make the newsreels or the internet.  However, it is the same thing and it does not resonate well with me.

So if you are a buyer looking for a home and you lie to your agent, it will catch up with you one day.  Make no mistake.  Luckily I have only caught two buyers in a lie, but they will never get my best.  They will never get the benefit of my experionce and most of all, they shall never get the benefit of my passion!  I save my passion for those I love and respect.

So if you are serious about real estate and you want me to help you, loyalty is the key. 

In the meantime, get a taste of my passion by visiting www.MichaelDunn.com or www.NorthwoodPointeIrvine.com or www.ThePelicanEstates.com and see why I want the best for you.

Happy investing.

Mike

Posted: March 16th, 2010 under Hot Tips, Real Estate News.
Comments: none

Bing and Real Estate!

Bing (formerly Live Search, Windows Live Search, and MSN Search) is the current web search engine (advertised as a “decision engine”)^[2] from Microsoft. Bing was unveiled by Microsoft CEO Steve Ballmer on May 28, 2009 at the All Things Digital conference in San Diego. It went fully online on June 3, 2009,^[3] with a preview version released on June 1, 2009.

Notable changes include the listing of search suggestions as queries are entered and a list of related searches (called “Explorer pane”) based on^[4] semantic technology from Powerset that Microsoft purchased in 2008.^[5] As of January 2010^[update] Bing is the third largest search engine on the web by query volume, at 3.16%, after its competitor Google at 85.35% and Yahoo at 6.15%, according to Net Applications.^[6]

On July 29, 2009, Microsoft and Yahoo! announced a deal in which Bing would power Yahoo! Search.

Bing has been a top 20 search on Yahoo for the past 139 days.  While Google is the top search engine, Bing is making inroads.  That is what is so amazing about Microsoft, their continue striving for excellence and learning.  Those two characteristics are what elevated Microsoft to such a market leader.

It is a simple concept, but one that gets overlooked by the race for the almighty dollar.  There was once asurvey done by a prestigious University about the importance of money and passion.

The survey asked 1,500 people to take part in a 20 year study.  They were asked if they were interested in either money or passion.  Approximately 1,250 chose to work for money and the remaining 250 chose to follow their passion.  The ones who worked to gain the money focused on making money.  The ones who followed their passion, simply worked at what their passion took them.

After 20 years, how many millionaires surfaced?  Give me a guess!  Out of the 1,250 who decided to go for the money, only 1 became a millionaire.  Out of the 250 who chose passion as their path, 100 became millionaires.  There is something to be said in following our passion.  It gives you energy and you have a real purpose.

In my 12 years in real estate, I have never set any monetary goals.  In our office, the manager asks agents to set their financial goals for the coming year.  I never had financial goals but rather I had process goals.  I had goals of so many phone calls per day or every Monday send out my com-parables sales lists via e-mail.

I thoroughly enjoy real estate; you could say and others will testify, that I have a real passion for real estate.  Some say I am a workaholic.  While I do put in a solid schedule, I do not look at it as work per se, but rather a calling to be the best I can be.  I am sure that if I were married with a few children, I would probably be more efficient so as to spend time with my family.

As a former baseball pitcher, I am used to stressful situations an enjoy the challenge that real estate offers.  After all, from a business perspective, it is highly competitive.   It is also highly complex with changing laws affecting taxes and the pricing. 

It has been an amazing journey for me and I have been blessed to know many kind and intelligent clients thru the years.  Looking back to my len years before real estate, I see that I am exactly where I am supposed to be.  It has a powerful and soothing feeling for the soul when I think of past to present. 

In my next blog< I will write out my updated resume to see if you would choose me to help you sell or buy real estate.

Happy investing.

Mike

Posted: March 11th, 2010 under Hot Tips, Real Estate News.
Comments: none

Drudge Report and Real Estate!

The Drudge Report is a conservative^{[2][3][4][5][6]} news aggregation website. Run by Matt Drudge with the help of Andrew Breitbart, the site consists mainly of links to stories from the United States and international mainstream media about politics, entertainment, and current events as well as links to many columnists.

Occasionally, Drudge authors news stories himself based on tips. The Report originated in 1996 as a weekly subscriber-based email dispatch.^[1] It was most famous for being the first news source to break the Monica Lewinsky scandal to the public after Newsweek decided not to publish the story.^[7]

Drudge Report and Real Estate! The Drudge Report has been in the top 20 Yahoo searches for 322 days now, also very impressive.  But it is not as impressive as this:

1. A single story corner lot home on a cul-de-sac in guard gated www.NorthwoodPointeIrvine.com with 1,800 square feet, 3 bedrooms, 2 baths for $849,000.

2. A 7 bedrooms, 6.5 baths, almost 5,100 square feet home with a 4 car garage in www.NorthwoodPointeIrvine.com for $1,799,000.

3. A classic Craftsman style home in the order of Old Town Pasadena with 5 bedrooms, 5.5 baths in almost 3,750 square feet with hardwood flooring, granite counters fo only $1,499,000.

4. Amazing location at top of the hill in gated www.NorthwoodPointeIrvine.comwith 5 beds plus an office, 4.5 baths in almost 4,200 square feet with a spa and koi pond for $1,599,000.

5. Incredible backyard with golf putting green, 5 beds plus a bonus, 4.5 baths with 4 car garage in almost 4,600 square feet for $1,798,000.

6. Secret Listing and the largest lot in www.NorthwoodPointeIrvine.com5 beds, 5 baths in almost 4,000 square feet with pool, spa, basketball, golf, BBQ and almost half an acre of land.  $1,999,000.

7. Five townhomes with 3 bedrooms, 3 baths in almost 1,600 square feet ranging in price from $525,000 to $599,000.

8. Located in the exclusive www.ThePelicanEstates.comthis amazing 7 beds, 6.5 baths in almost 11,000 square feet with subterranean parking for 6 to 8 autos.  Features elevator, maids quarters, internet based security and climate control, pool, spa and custom BBQ. Fully furnished $12,500,000.

9. Incredible acre estate in Tustin Ranch Estates with 6 beds, 5.5 baths in almost 7,400 square feet with tennis court, pool, spa, BBQ center, sport court and side yard for gardening, 4 car garage.  $3,999,000.

10. Tustin Ranch Estates Plan 3 custom built in Rockinghorse Ridge neighboring $10M homes with 3 acres.  Features two guest suites downstairs, 5 beds upstairs plus an office, and includes all custom made furniture.  $3,499,000.

11. Send an e-mail to Mike@MichaelDunn.comfor information on my foreclosure investments.  I personally purchase these, rehab them and sell them for 10 to 15% profit.

In the meantime, be sure to exercise daily, eat 5 small healthy meals per day and meditate.

Happy Investing.

Mike

Posted: March 6th, 2010 under Hot Tips, Real Estate News.
Comments: none