Every year at this time, real estate investors start thinking about all the ways they might be able to avoid paying taxes on their real estate profits.  They go to almost ridiculous extremes – from trying to rationalize a business purpose for that weekend getaway to digging through a shoebox filled with receipts.  Small expenses can help minimize a tax bill.

While you’re looking for them, keep this in mind: There are other things you could be doing that can help you build generational wealth – while avoiding the wrath of the tax man.

When you sell a property for a profit there’s a nasty little demon called the capital gains tax that has to be paid.  For years now, real estate investors have used depreciation and the 1031 exchange as a means of avoiding taxation; many times until they die.

This is a good strategy to use on leveraged property purchases, but sometimes you get a really good deal and opt to simply pay cash for a property acquisition.  Wouldn’t it be great to avoid capital gains taxes – and live to spend the money?  Before you call the men in white suits, listen up: Under the right circumstances, you can.

By using a self-directed Roth IRA to purchase real estate – and placing your capital gains back into the IRA when you sell, you can effectively avoid paying capital gains taxes.  By following a few simple rules you can avoid the tax man and live to enjoy the fruits of your labors – without the risk of incurring the wrath of Uncle Sam.

Click on over to www.REIconferences.com and see some of the other money-saving resources that are available to you.  Real estate investing doesn’t have to be a taxing proposition.  Maximizing your income for the short term and creating real wealth you can enjoy in this lifetime are available.  You can do it today.  Come learn how.

Blessings!

Charrissa Cawley

www.REIconferences.com

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Oh how the mighty have fallen.

According to Case-Shiller, the National Home Price Index dropped by an eye-popping 16.6% in the third quarter.  While that’s not exactly cause for celebration, it could be worse.  And if their predictions for 2009 are at all accurate, 2009 isn’t looking to be a banner year either – especially if you’re investing in California.

They’ve released their forecast for next year and 8 of the 10 biggest projected losers are in California.  Here’s the list, along with their best guess for how much more the market is expected to drop:

1.      Los Angeles, CA        -24.9%

2.      Stockton, CA             -24.7%

3.      Riverside, CA            -23.3%

4.      Miami, FL                  -22.8%

5.      Sacramento, CA       -22.2%

6.      Santa Ana, CA          -22.0%

7.      Fresno, CA                -21.6%

8.      San Diego, CA          -21.1%

9.      Bakersfield, CA        -20.9%

10.  Washington, DC      -19.9%

If you’re investing in any of these markets, you can still make money.  Will it be a challenge?  You betcha.  Can it be done?  Absolutely. 

If you don’t want to fight as hard to make money, you might want to jump out of your own back yard for awhile.  I know the grass always looks greener on the other side of the fence, but there are markets that look infinitely better right now.

The good news?  You can invest where the numbers make more sense to you.  Where you rest your head every night has never been less important than it is right now.  So take a look around.  There are local real estate markets that have a downright rosy outlook.  Find those markets, do your homework, and invest to your heart’s content.

2009 will be a banner year.  Stake your claim on the kind of future you’ve always dreamed of.  There are millions of dollars just waiting to be made.

The gold rush is well under way.  It’s not too late to grab your share.  All the tools you need for your very own gold mine are available at www.REIconferences.com

Blessings!

Charrissa Cawley

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You and I seek the motivation to achieve our real estate investing dreams from a variety of sources. It might be the memory of a treasured teacher who made a profound difference in our lives — or it could be a life-changing event that happened years ago.

I was inspired and touched recently by a short video that demonstrated the importance of never giving up. In this challenging real estate investing market, it’s easy to walk away before even getting your feet wet, convinced that phenomenal wealth and rags to riches stories always happen to someone else, somewhere else, at another time.

Somewhere, there’s a single mom raising a couple of kids because her husband checked out of the marriage when the going got tough. There is also a grief stricken man somewhere trying to find the strength to go on without his wife who was snatched suddenly from his life in a tragic accident.

These people manage to find the strength to pick up the shattered pieces of their lives and start living again. Slowly, piece by broken piece, they somehow summon the strength to once again smile, plan for the future, and become more optimistic that their hopes and dreams will become reality — even if their plans were altered by conditions beyond their control.

You’re a real estate investor.

Compared to some of the challenges that millions of others have successfully overcome, figuring out how to come to terms with a motivated seller is inconsequential. To you, however, it’s important. At times like these it’s important that you remember your commitment to continue trying even in the face of adversity.

You’ll hear the word “no” a lot more than you’ll hear the word “yes” — especially when you’re first getting started as a real estate investor. If your hopes and dreams are derailed by verbal opposition to what you’re trying to do, what will you do when you’re faced with a physical challenge — or even a bruised relationship? If you turn tail and run every time things in your life go awry, all anyone will ever see of you is your backside.

To reach your dreams, you have to stop in your tracks, turn, and fight for what you want. While it won’t be handed to you on a silver platter, you can overcome any challenge you face.

If you can’t think of an inspiring reason to dig in your heels and keep trying to succeed as a real estate investor, then check out this short video I saw recently. It’s about a man who loves life, kids, and golf. He’s not a real estate investor, but he does demonstrate the importance of never giving up. You can watch it by following this link to www.wimp.com/trueheart and then tell me how many times you can handle hearing the word “no” before giving up on your real estate investing dreams and walking away empty handed.

I’m guessing there isn’t a number high enough…

Blessings!

Charrissa Cawley 

www.REIconferences.com

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Have you been sitting on the sidelines watching other investors play the real estate investing game?  How many good reasons do you need to convince you that now is a great time to get started?

I can give you 2 trillion reasons why NOW is the time for you to quit sitting and start investing.  That’s the amount of homeowner equity that has evaporated so far this year.  This lost equity has resulted in a lot of homeowners being upside down on their mortgages – and looking for a quick exit.

When you factor in an economic crisis of biblical proportions, rampant job losses, and thousands of businesses on the brink of extinction, you have a nation filled with motivated sellers.

It’s true that whenever a homeowner realizes they can’t afford to keep their home, it’s a tragedy.  An even greater tragedy is knowing that the very best you can hope for is a foreclosure and credit damage that’s going to follow you around like a lost puppy for the next seven years – or longer.

This is where a savvy investor can play the part of the hero in a massive homeowner rescue effort.  But what can you do?

You can stand by and do nothing – or you can roll up your sleeves and get to work.

If you’re not sure of what to do, you need to take the first step.  Learn winning strategies for buying some of these properties.  Help homeowners find solutions for their economic problems.  The government is spending money on massive bailouts for big businesses and other entities that are “too big to fail”.  Everyone else is left swinging in the wind.

Are you unsure of the first step – or confused about how to get started?  Don’t sit there and do nothing.  As the saying goes, let your fingers do the walking…to your computer mouse and head on over to www.REIConferences.com.  Let us help you take advantage of the chance to reach your potential as a self-sufficient real estate investing entrepreneur. 

Do it now!

Blessings!

Charrissa Cawley

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Are you currently investing in the Miami real estate market? If you are and you’re tempted to buy bargain property sight unseen, you might just get an added bonus that you’re not counting on: squatters. There’s an anti-poverty group down there running around matching homeless people with vacant houses. The group, which calls itself Take Back the Land, is apparently trying to find a good use for some of the city’s empty properties.

So far law enforcement officials seem to be turning the other cheek and ignoring what’s going on. Now, I don’t know what kinds of properties these are. It’s possible they might need substantial repairs and aren’t ready to be lived in. The point is they belong to the lenders and in some cases – the government.

But what happens if an investor comes along and gets what they think is the deal of the century?

Will they have to fight to get the squatters out so they can begin the renovation process?

I’ve got nothing against finding a place for the homeless to live. I’m as compassionate as the next person. But it brings up an interesting question about who ultimately pays the cost of evicting squatters from these properties – and who’s responsible for any damages to the houses. If the properties aren’t properly secured it might be relatively easy for this group to help homeless folks to get in off the street.

But most of these places are probably locked up tight.

Without a key, how are they getting in? Are they breaking in? Or are the houses surrendering to the “will of the people” and spontaneously unlocking themselves so they can be lived in? If you’re investing in Miami – or anywhere else this kind of activity might be taking place – beware. Don’t take the law into your own hands. Be sure to research local laws to make sure you abide by the letter and the spirit of the law in the event that you buy one of these properties and discover that you have a tenant you weren’t counting on.  You don’t want to have to fight for possession of YOUR property.

Blessings!

Charrissa Cawley

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Tomorrow is the day that millions of Americans pull the plug on chasing their dreams – and the almighty dollar – long enough to spend some time with loved ones, reflect on their lives and relationships, and give some thought to all they have to be thankful for.

So what are you thankful for?

Is it a loving spouse you swore you’d stick with through thick and thin, regardless of their flaws, until your dying day? Don’t just expect that they know you’re thankful for their love and support. Make a point to give your spouse a loving embrace and tell them what they mean to you.

Are you thankful for your children? Tell them how much you love, adore, and appreciate them. I believe children are a special blessing from God, and that if we just listen to them, we can better grasp the good that exists in humanity. Whether your children are 3 or 33, embrace them lovingly and express your feelings to them with words, deeds, and gestures. We too frequently get caught up in the moment and we forget what life would be like if they weren’t here to spread their light and their youthful zest for living.

Enjoy the moment – it truly is special.

If you’re mourning the loss of a dear family member or a close friend, weep if you must. But also take the time to be thankful. Be thankful for the life that was, the time you had, and the times you shared. Life is fragile and our time together fleeting, but by remembering the good times you had and expressing your Thanksgiving for the time you had together you can do your part to keep them alive in your heart and your mind.

Be thankful for America and the fact that – for all of her flaws and troubles – this is still the greatest country on the face of the earth.

Above all else, be Thankful tomorrow.

Let that thankfulness spread every day and never forget that there are others with so much less than what we’ve been blessed with.

When you take the time every day to be thankful for what you have, you really can turn the corner from looking at Thanksgiving as a holiday for eating turkey and taking a day off from work.

When you really let Thanksgiving infiltrate every corner of your life, you can take it to the next level.

Your day of Thanksgiving can give way to a life of ThanksLIVING.

Blessings!

Charrissa Cawley

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In my last blog post, I told you about how President Roosevelt basically kickstarted the economy to end the great depression by confiscating gold which devalued our currency, before revaluing gold much higher.  I’ve done a little more reading on this subject and I see this as a possibility – maybe one of the more risky ideas out there, but one that has some interesting side-effects. 

The G-20 nations will get together for another big meeting after President-elect Obama’s administration takes over.  They’re not supposed to meet until April, but I won’t be at all surprised if they don’t get together a little sooner than expected because there’s a massive mess to straighten out. 

I’m thinking more and more that this might be the hidden solution to a lot of the problems we have.  If this is indeed the solution they select, there are some risks and rewards that will come into play.  First, there’s a chance that it might not work.  The longer other ideas don’t work, the better the chances that they’ll try to pull a rabbit out of their hat and try something radical.  And, don’t forget that so far nothing else is working either! 

Then again, this strategy worked once before – on a global basis – so I think that lends credibility to the idea that it could work again. 

One big risk to devaluing currency and then revaluing it by a fixed percentage is that it could cause hyperinflation if they don’t do it right.  And that could be a very bad thing, especially for people that have cash.  Which leads me to a very good side-effect of this idea.

If they revalue gold upward that will revalue other assets upward by a comparable percentage.  Therefore, things like real estate would increase with the stroke of a Presidential pen.  So if you have a real estate investment with no equity before the adjustment is made, you could instantly have equity buildup of 40% or more. 

Will they do it?  And what could that mean to you and your family’s net worth? 

The property-buying spree real estate investors everywhere are on right now would probably come to a screeching halt.  But, the property you have could potentially be worth a whole lot more than it is now.   In this situation, you could literally become an overnight millionaire.  

Disclaimer:  I’m not a lawyer and I’m not an economist.  Before you do anything I suggest you do some research of your own and see what the risks and rewards are for yourself.  Make your own judgment about what you think makes sense – or get the opinion of an expert.  The bottom line here is that by doing your own homework you get to take all the credit for what you ultimately decide. 

Big changes are coming.   I don’t know what will be decided in the end, but these are exciting times as we rock and roll with every twist and turn this adventure we call real estate investing decides to take.  Doing nothing will get you nowhere fast, but staying on top of current events and making smart decisions could easily set you on course for your own golden parachute – without having to go crawling to the government and begging for a handout. 

Happy Investing! 

Charrissa Cawley    

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The G-20 nations met with President Bush over the weekend trying to collectively solve the global financial crisis.  At this point, nothing much was accomplished, but they’ll be meeting again shortly after Barack Obama becomes President.  In the meantime, it looks like the short-term solution of the day seems to be continuing to throw money at the problem and hoping against hope that all that money will somehow cause the major economies of the world to catch fire.

I’m no economist, and I honestly don’t know if it will work.  But I read an article that got me to thinking about some of the more radical solutions they might decide to implement if all that cash doesn’t catch a friendly spark and a favorable wind that reignites the economy in the meantime.

In 1933, President Roosevelt used the power of his Executive Order pen to simultaneously devalue U.S. currency and confiscate gold.  He then raised the value of gold by about 70% which revalued all financial assets.  It worked back then.  Would a similar idea – implemented on a global basis – work today?

I’m not suggesting they would confiscate gold – and the author of the article wasn’t either. What he was suggesting is that if they were to simply restate the value of gold that it could have the same effect.  By skyrocketing the value of gold, they would basically be raising the value of everything of value – gold, real estate, etc.

Would it work?  I have no idea.  

What I do know is that governments around the world can’t seem to print money or IOU’s fast enough to keep up with demand.  Nothing they’ve tried has worked.  About all they haven’t tried is giving every man, woman, and child in America a check for a million dollars and ask that they please start buying stuff.

Who knows, that may be next.

Like I said, I don’t know if this will work or not.  But it will be interesting to see how it all shakes out.

Until then, invest right and invest smart.  We don’t know what the future holds, but the coming weeks and months promise to be a wild ride.

Blessings!

Charrissa Cawley

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Last week we made history in this nation by proving that hard work, an indomitable spirit, and a few lucky breaks along the way make it possible for any of us to achieve our dreams. So what can we all learn from the Obama campaign model – and how can you put a micro-version of this to work in your investing life?

• Don’t be afraid to try new ideas even if everyone you know thinks you’ll fail – Friends and family will tell you that real estate investing is a bad idea, that millions of people are staring at foreclosure right now, and that only a fool would jump into a market that is bruised, bleeding, and holding on for dear life.  Only a fool would buy real estate when prices are at the top – because there’s only one direction they can go.  Hint: It’s not up.

• Believe in yourself regardless of what the pundits think – A strong belief in yourself can help you overcome any adversity you might face.  Lack of money, credit, knowledge – these are all challenges you can overcome.  Believe in yourself and find a way.

• Surround yourself with smart people who believe in you – You recognize that you don’t know everything.  Instead of lamenting this for 40 years and treading water, find someone who knows what you don’t.  Tap into their expertise and move forward.  

Congratulate Barack Obama on his historic achievement regardless of your political viewpoint.  Use his election as an incentive to challenge your own preconceived notions of what is possible.  When success in real estate seems like a mere pipe dream, reach down deep within yourself and keep pushing forward with a mantra for success, “Yes, you can!”

Yes you can.

Blessings!

Charrissa Cawley

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The impression a lot of people have is that the average real estate investor is a fast-talking con-man (or woman) who specializes in preying on those unfortunate enough to fall on hard times.  As you know, the reality is much different.  These misconceptions are fueled in part by media perceptions and a few bad actors who call themselves real estate investors, but are — in reality — low-lifes who should be serving long stints in the Cross Bar Hotel.  

As an honest and ethical real estate investor who is interested in buying right and doing the right thing — while helping people who NEED to unload their property — I want to share a totally uplifting story I read about a truly special real estate investor. A woman who fell on hard times and lost her home was fortunate enough to run into a real estate investor with a heart.  What this investor did was enough to bring a tear to my eye.  She bought the property at auction and immediately gave it back to the lady who had lost her home.  No strings, just blessings and a great big hug.

As an investor you may not be in the position to be able to do this sort of thing, but by getting in gear now and capitalizing on the unprecedented opportunity you have to make money and build real, sustainable wealth, you still have a chance to do much more than the average person who simply shrugs their shoulders and switches the channel. You can take care of your future, but you can also do some good for other people.

Obviously, the choice is yours.  

You can pocket all of your profits if you like. But, I recommend you do some good for others.  Your contribution can be a series of small, quiet contributions to charities that you believe in, or a loud, in-your-face gift that will make others praise your name.

The choice is yours.Secure your future by building real, sustainable wealth. But don’t forget to give something back.  

Make no mistake about it.  Real estate investing riches are great.  

Even better is the undeniably electric feeling you get by making a real difference in somebody else’s life.  The beauty of this concept is you’re in charge of your destiny, but you can also play a vital role in improving the lives and the outlook of others as well.

When you do that, you truly understand the concept of being wealthy.

Blessings!

Charrissa Cawley   

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