Major Modifications Italicized

February 2009

find out more….

For this and other Real Estate Information visit Venture Companies Website

Contact Larry Thompson – Charlotte’s Only Billion Dollar Real Estate Expert

You will be intrigued to see how the market is really responding.
To see the:
1. Average days on the market
2. The average list price,
3. The average closed price

Just follow the link below…

Cabarrus and Iredell projected to lead with double-digit jump in percentage of households.

Despite the economic downturn that has slowed home building locally and nationwide, Cabarrus and Iredell counties in North Carolina can expect solid housing growth over the next five years, a Bank of America official said.

Cabarrus is expected to lead a four-county region with a projected 18 percent increase in its number of households through 2013, said Ken Bernardo, a senior vice president with the bank. He is the bank’s Cabarrus County market president and a mortgage sales manager.

Iredell will have a healthy increase of slightly above 17percent, well ahead of projections for Rowan and Gaston, the two other counties for which Bernardo released projections at a gathering of about 100 members of the Lake Norman Home Builders Association last week.

Gaston County can expect a 6percent increase in its number of households and Rowan County a 4percent increase, Bernardo said. He didn’t say what his projections were based on. Efforts to reach him later were unsuccessful.

Bernardo told the homebuilders that Cabarrus and Gaston will lead the study area in projected housing purchases this year; he projects there will be 6,500 home purchases in Cabarrus, 4,800 in Gaston, 3,900 in Iredell and 2,200 in Rowan. He said 40percent of sales are projected to be in the $50,000-to- $100,000 price range.

Bernardo told the Observer the projections were good news for an area that’s no longer immune to the national housing slowdown.

Several homebuilders at the gathering said many in their profession are relying on remodeling projects to stay afloat.

Elliot Eisenberg, senior economist for the National Association of Home Builders in Washington, urged those attending to contact their congressional delegations to assist the industry.

Too much is at stake for local communities, he said, to forgo federal action.

Eisenberg, keynote speaker, said the new-home construction industry, taken as a whole, generates more jobs in the Charlotte region – 18,300 – than anything but Carolinas HealthCare System and the former Wachovia, now Wells Fargo.

“Had I done this report a couple of years ago, that number would have been double,” Eisenberg said of the new-construction jobs.

Source – Joe Marusak of charlotteobserver.com
jmarusak@charlotteobserver.com

Visit Venture Companies and Larry Thompson – North Carolina Real Estate and Mortgage Experts

8 Ways to Improve Your Credit

Credit scores, along with your overall income and debt, are a big factor in determining if you’ll qualify for a loan and what loan terms you’ll be able to qualify for.

1. Check for and correct errors in your credit report. Mistakes happen and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year

5. Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

To obtain a complete copy of the publication, “knowing and understanding your credit” visit http://www.homebuyingguide.org

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.

1. Your payment history. Whether you paid credit card obligations on time.

2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.

3. The length of your credit history. In general, the longer the better.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit – installment loans, credit cards and a mortgage, for example.

For more on evaluating and understanding your credit score, go to http://www.myfico.com

Click Here to Visit Venture Companies Today for ALL Your Real Estate needs – Servicing North Carolina

Here is how:
Purchase Price = $250,000

Selling Realtor—Tells the seller to expect to pay $3,000 to $5,000 in closing cost for the buyer because they are going to ask for it.

Buying Realtor—Gets the buyer to get pre-qualified and tell them how much to expect t in Closing Costs. The Realtor says, we can ask for this to be paid by the seller and they will pay it if they want to sell.

The costs between a regular 1% origination loan and a true NO COST Loan is usually 3/8th to 1/2% difference in rate. This means that if you could have gotten 6% with $5,000 in total closing costs, you could get 6.5% for $0. Why would you take a higher interest rate? If you don’t take the rate, you are saying that you know the mortgage market is at the lowest it will be in the next 5 years and it will never be any lower than it is now. The reason 5 years is important is because that is your PayBack period. That is how long it is going to take you to make up closing cost you paid $5,000 with the monthly difference in payment of about $81/month.

If you take the higher rate, then if the rates drop the day after you close, you can refinance and float down with the market for p and then Go Down and then Go Up and then Go Down), you will win.

So with the example above:

Seller—loses $5,000 off the asking price because an inexperienced Mortgage Broker or Banker told the buyer that this is what I can do.

Buyer—although they think they didn’t pay for it, they really did because they could have bought the house for $5,000 less. That means they are paying interest on $5,000 extra for the time they own the house and they have to pay it back when they sell.

Buyer—could have refinanced in the next 6 months and received the 6% they were willing to pay $5,000 to get for Free 6 months later when the market does what it normally does and that is (Go Up and then Down)

We have know this for years and this is why we bring so much value to all of our customers. We keep track of your mortgages for you for life. We do what makes sense. Even if you have just paid $5,000 for financing, we will still be able to put you in our system and call you when it is possible to save you money.

Call me directly for free consultation.
Phone: 704-597-9077
Contact Larry Thompson Click Here

Visit Venture Companies Website – Charlotte North Carolina Real Estate Experts

For the most part, the fact was that the “gurus” made their money selling books and tapes! Few had real experience to make it in the real estate market. Many of the most famous and most visible of these filed bankruptcy more than once! However, many of the things they taught were truthful, and some apply more today than they did back then.

Real estate is indeed a good investment and can be a significant part of your financial well being. You must, however, have a plan. Many who made real estate purchases based on the recommendations of “gurus” found themselves in unwanted situations, much to their dismay! Hopefully, you don’t know anyone who has had any of these situations.

We invest our resources in the anticipation of receiving some financial benefit for those dollars. Investment real estate is generally bought for one reason, financial benefit (If you know of another reason, please tell me). The purpose of this article is to evaluate the different benefits of investment real estate and apply those benefits to the objectives of the investor. In the ‘70s and ‘80s it was possible to make a mistake and wait for inflation to bail you out. Today, that would be a long wait.

What are the benefits that make real estate the I D E A L investment?

I = Income

D= Depreciation

E= Equity Build Up

A= Appreciation

L= Leverage

As we will see, these benefits may work independently or in harmony to achieve real estate investment goals. The specific benefit that you are seeking will give greater emphasis to some parts of the formula and less to others. It should be mentioned also that the use of these to avoid taxes and increase our net worth dramatically!! Let us proceed with Income!

I = INCOME

Please allow me to introduce you to our friend IRV.

IRV is an acronym for Income, Rate of Return, and Value.

The formula looks like this: I / R x V

If you know 2 of these, you can solve for the third. Should you consider an investment, apply this formula to see if the proposed investment meets your requirements.

First, look at the NOI (Net Operating Income). That is what is left of your income after all expenses. Apply the Rate of Return you require for your investments to that number and you will know the value of that investment to you. For example, a 4-plex that has a NOI of $7,124 per year, can be worth $90,000 to someone looking for an 8% Rate of Return, and $71,250 to someone looking for a 10% Rate of Return, and $59,000 to someone who is looking for a 12% return.

The formula is (I/R=V). Other applications are (VXR=I), and (I/V=R). The value of these calculations is in the reliability of the Net Operating Income figures. If you do not properly calculate income and expenses, you will not get an accurate representation of value. However, if you make a thorough investigation of the property data and verify the accuracy, IRV will establish a solid foundation for your valuation of a particular investment property.

Many investors do not look at expense items such as management, maintenance, and vacancy as being applicable to their investment. This increases the NOI on the property and may cause the investor to pay more for the property than is warranted. Such expenses should be factored into your calculations even if you do not pay them on a current basis. Even though you do the work yourself, the work has value and the price of the investment should reflect that fact.

NOI can be calculated by using the APOD (Annual Property Operating Data) form included in this booklet. Please use real numbers. Check the income and expense report for the investment you are considering and verify as much as possible these figures. Get accurate information of what the taxes and the insurance will cost. Credit and vacancy should be estimated based on the best information available from management companies, ads, etc. Repairs will be estimated from looking at the condition of the property. Remember to be accurate!!

D = DEPRECIATION

Depreciation is the non-cash expense part of the real estate equation. It is taken on the part of your investment that is not land. Land does not depreciate, but all improvements do. IRS rules allow you to expense the “wearing out” of the asset over the life of the asset. So, if you pay $32,000 for a rental property and the land is worth $4,500, then you would have $27,500 to depreciate. Current IRS rules state that the residential rental property must be depreciated over a 27.5-year life span. Do the math and you find that you can deduct $1000 per year on your 1040 Schedule E as an expense, even though you spend no money! Obviously, if you had $275,000 in depreciable real estate, you would have $10,000 to deduct. That can make a nice break in taxes due. Be aware that you should check with your tax advisors for current limitations on deductions according to your current situation.

Current tax brackets are in the 15% to 33% range; the benefits are not what they used to be when depreciation limits were 15 to 18 years and tax brackets were as high as 90%. As they say, all good things must end. Maybe that will go for all bad things as well.

On the other side of this gift from Uncle Sam is pay back time. IRS lets you take the expense every year on your property. However, that expense reduces the BASIS in the property. The $32,000 property above has a depreciable basis of $27,500. If you own that property ten years, you would have depreciated that property by $10,000 leaving your basis at $22,000. If you then sold your property for $42,000, what would your gain be? If you said $20,000, you are correct. You must subtract your BASIS from the sales price, not what you paid for the property. You must recapture the depreciation. That means you pay taxes on your gain now.

E = EQUITY BUILD UP

Equity build up is the “silent saver”. Each mortgage payment you make is separated into principal and interest. It is the principal part that makes your net worth grow, because it is savings that you can’t withdraw!

This part of your investment plan can often be overlooked. It is not as glamorous as a big positive cash flow. However, over time, it can be a powerful part of your wealth accumulation. For example, when you purchase a new property, consider different ways to structure your financing for equity build up. Will the owner of the bank give you a better interest rate for a quicker pay out? Let’s look at a $10,000 loan and see how different payouts can affect our equity build up. Assume a ten percent interest rate for different payout periods.

Months Pmt Principal Interest

360 $87.76 $4.43 $83.33

120 $132.15 $104.37 $27.78

60 $212.47 $198.59 $13.89

As you can see, we can have more cash flow or less cash flow. Now we have to apply our investment objectives to the equation. As a younger person, you might benefit more from the 30-year financing. You get more current income and less equity build up. As a person more advanced in your investment program, you might consider giving up current income in order to have the property free and clear in a shorter period of time. Your investment goals will determine which is the best approach for you.

A = APPRECIATION

Appreciation is every property owners delight! It is an increase in your net worth that is not taxed. At least not yet. When the value of your property increases, you have experienced appreciation of an asset. It does not matter what caused the appreciation, you get the benefit. So how do we achieve this desirable circumstance?

1) Inflation. The effects of inflation are well known and documented. When too many dollars are chasing too few

goods, when there is less supply than demand, prices go up. And they go up across the board. If you remember the 70s and 80s, there were many years that prices increased in the double digits. Those who owned assets experienced an increase in net worth.

2) Forced appreciation. William Nickerson taught this in his book “How I turned $1000 into Five Million in Real Estate”. By improving the property and increasing the rent, you force the property to increase in value.
(See the IRV discussion).

3) Neighborhood. Location, location, location. If you know the paths of progress, you can often benefit from an appreciation of the location. As an area becomes more desirable, the price goes up. By that same token, a location could experience negative growth.

4) Buy low. Obviously if you can buy a property at below market value, you have just had appreciation. A $100,000 property that you buy for $80,000 just gave you an increase in net worth of $20,000 tax-free dollars!

L = LEVERAGE

A lever is a tool that used properly can help you achieve great results. Leverage in Real Estate involves the use of OPM (other people’s money) to help you reach your goals. In the event you had to use all cash, all the time, real estate investments would be available to few. There are many ways to use current resources to leverage your way into profitable investments. Your good credit is a lever that may allow you to partner with someone who has a great opportunity but has more than his allowed number of loans! You furnish the credit to make your partner’s deal work. Your handy man skills can be traded as down payment on a property. Veteran’s benefits can get you a duplex for no money down. Personal property such as cars, jewelry, boats and a lot more can leverage you into investments.

For many people, buying a principal residence is a terrific first choice for real estate investment. A small house or duplex in the $100,000 to $125,000 range will provide shelter and offer investment benefits at the same time. Current availability of 100% loans for principal residences makes it easy to leverage into a home of your own. With little or none of your own money you can control a major asset. Once you control the asset, managing it is critical. Getting the maximum return makes your net worth grow at a disproportionate rate for the amount invested. For example, remember A=Appreciation? In the event the house increased in value only 3% a year, that increase is based not on how much money you put down, but on the value of the asset you controlled!! In other words, you just added $3000 to your net worth! Not a bad return.

Now for the best part. When you sell your personal residence, and you have lived there at least 2 of the last 5 years, any profit you make is tax free up to $500,000 for a married couple. (IRC Sec 121).

You may also use a personal residence to get started on a leveraged plan of investing by not selling but renting that residence when you buy another home! The idea is to control assets and reap the benefit of untaxed earnings. Does leverage have a downside? Yes. It is called payments. The more you leverage, the higher the payments. If the money spent exceeds the money coming in, the property is called an “alligator”. Alligators eat. These kind eat your $$$$’s. Do not kid yourself about income and expenses when you are borrowing money to buy real estate. That has caused many investors to lose sleep; trying to make payments with no money coming in and no cash reserves.

Leverage can help your overall investment program, but it can also be your downfall in the event you do not plan and carefully implement your plan. Make a written list of income and expenses BEFORE you buy any rental property. If the income is not sufficient to cover all costs and put back a little for reserves, then you need to take a closer look at the leverage. Maybe put a little down to reduce the payment. Or perhaps seek a lower interest rate before you commit to purchase. Maybe commit some of your current income to the property, if the deal is good enough.

CONCLUSION

Altogether, real estate is the IDEAL investment. The biggest decision is what makes it ideal for you? What are your needs and goals? What resources do you have available to help you reach these goals? How can these resources be applied? The answers to these questions can help you focus on the best path and plan for your investment program.

One of the best explanations of financial plans is as follows:

You are You plan

Here to be here

*________________________________________________*

Number of periods to accomplish goals

N %I PV PMT FV

Financial planning is a matter of determining what PV (present value) you have to use, PMT (payment) that you can add to PV, the %I (interest rate) you can apply, and N (number) of periods to wait, and applying all these to get to the FV (future value) that you want to achieve.

Once you have determined what it is you want real estate to accomplish for you, your education begins. Now you must learn about management, maintenance, accounting, taxes, leasing, and the other responsibilities of being a successful investment property owner. In order to be a successful property owner, you must stay up to date on the changes in the laws and the requirements that go with owning real estate.

Failure to plan for your goals and to educate yourself for their accomplishments can cause serious harm to your financial well being. That is why you need access to those who can competently advise you on accounting, legal, and other professions pertaining to your investments. You would be surprised at how many investors never consult with anyone!

Thinking about Investing in Real Estate, ask a professional….contact us at Venture Investments or call us at (704) 405-9079. We have a dedicated Investment Director whose sole duty is to search for investment properties that have instant equity in them. To make sure you are protected, we disclose everything we have access to so you fully understand and are educated about the property before you invest. We provide access to information that only just professionals investors know about buying and selling investment properties.

Contact John Turner with Venture Investments today and let’s get started.

prepared by John Turner.
author “unknown”

Hello again, and thank you for taking time and allowing me to share with you who we are at Venture Companies. Here is part 3 of this 4 part series on (Who We Are and What We Do). If you missed part 1 (Venture Realty) or 2 (1st Metropolitan Mortgage) please take some time to read the posts and understand everything we can offer you.

Venture Investments

On our Investment side, we have a niche in Charlotte. I got my start in Real Estate when I bought my first Investment Property. Through my experience I realized the amount of money that could be made when buying at a discount. I wanted to offer the public access to what only Professional Investors knew about buying and selling of Investment Properties, thus Venture Investment was created. We have a full time Investment Director, who is constantly looking for Foreclosures every day.  We actually go out and take pictures of these properties and upload then to our website and email them to our members in the Exclusive VIP buyers club.

What we have done is make sure that YOU are protected. We disclose what type of house, which neighborhood, subdivisions, or area that the possible property is located in. Our staff performs title searches, appraisals, inspections if possible, up to date rental rates, and other comps.  We fully disclose everything we have access to, so YOU fully understand and are educated about the Investment you will make.

When purchasing one of our Investment Properties, everything happens on a first come first serve basis. Whoever calls us first is the client we work with on that one property. The only way we can take everyone serious when dealing with this much opportunity for profit is make sure that anyone who shows consideration in making a offer for one of these property is pre-qualified by us.

There is money to be made and let us show you how to get your hands on it. Whether you want to earn instant equity or you want to generate cash flow, give us a call.

Thank you again for your time, and keep looking for Part 4 to follow shortly. Please don’t hesitate to call myself or any staff member at Venture Investments – Charlotte North Carolina’s Real Estate Experts  (704) 597-9009 or Visit the Venture Companies Website Here

Hello again, and thank you for taking time and allowing me to share with you who we are at Venture Companies. Here is part 2 of this 4 part series on Who We Are and What We Do. If you missed part 1 (Venture Realty) please take some time to read it and understand everything we can offer you when Buying and Selling a home. Here is Part 2

1st Metropolitan Mortgage

We are a branch of 1st Metropolitan Mortgage and have access to every lender in the country. We are a wholesale broker, which allows us to get better pricing than any retail bank. We know the best loans available and pride ourselves with the ability to fit our clients into the loan that’s best for them. In some cases where you can not qualify now, we can coach you on what to do in order to qualify in 6 months.

We have a program that assures you will always get the best rate available. We manage your loans and if the rates do drop, we call you and drop your rate for you… and it is all FREE!!!! That is just part of the service we will provide for you.

We don’t believe in unnecessary fees or closing costs when they aren’t needed, so it is easy on you. We still make money on the loan, but more importantly you make a lot of money by not paying up front costs or any costs whatsoever. When the rates go down your rate goes right along with them.

Thank you again for your time, and keep looking for Parts 3 and 4 to follow shortly. Please don’t hesitate to contact us at Venture Companies or 1st Metropolitan Mortgage. (704) 597-3009

Hello again, and thank you for taking time and allowing me to share with you who we are at Venture Companies. By first explaining who we are, I felt I should tell you why we started. Venture Companies was started originally because I had a vision that Real Estate and Mortgages should all be together, and that they should all support one another. I created Venture Companies to be a One Stop Source for all your Real Estate, Mortgage Financing, and Investing needs. Under the Venture Companies umbrella, we have Venture Realty, Venture Investments, and a branch of 1st Metropolitan Mortgage all together. As we grew I found that Attorneys should be close by and that every division should work closely together to provide the convenience of having everything in one place for our clients. I feel the Venture Companies is so blessed to have the customers we do and I wanted to let all of you know every service we offer our customer. In this four part series I will go into detail about every division of our company below.

Venture Realty

Like anything, if you don’t have a good supporting cast, you will fall flat on your face. I am very lucky to be surrounded by some of the best agents and staff in the Charlotte area. With this staff I feel we can provide the services that will beat your expectations.

In our Realty Section, we offer more than anyone else. Through our marketing side, special photography, TV / Radio Commercials, and websites, your listing will be seen by more people, sell faster, and for the most money. When it comes to buying a home we will go the extra mile to help you get into the home of your dreams. We can help you if you feel stuck in your current home or feel like you don’t have any money to put down.

We pride ourselves being the best Real Estate Company in Charlotte, not to make the most money or the most sales, but just being the best. I have said it before you can either quit using out of date “old school” selling techniques or you can end up being the laughing stock of the neighborhood. While many home sellers are dropping prices again and again in hopes of attracting a buyer, I use innovative offers to attract buyers. You need to know what you are getting into when you hire an agent. When you hire Venture Realty, we put all of our services in writing right up front so you always know exactly what we are going to do to get your home SOLD. Check us out at www.VentureNC.com if you want to find out more information about us.

Thank you for your time again, and keep looking for Part 2, 3, and 4 to follow shortly. Please don’t hesitate to contact us at Venture Realty. Contact us Today (704)597 -9009

Investment properties seem to be hot topics these days. Every night you can tune into the latest infomercial showing you how to make millions with “No Money Down”. I have purchased these programs and studied the industry and I am here to tell you that it DOES work, but NOT the way they tell you to do it. As the Owner and Founder of Venture Investments, I believe that there is a right way and a wrong way to Invest. I show people the RIGHT way.

Here is my story on how I got started…

I invested in my first Investment Property in 1999 in Charlotte, NC. My goal was to pay for my child’s college education with one house. I was a finance major in college while working on my MBA. I became interested in Investments after speaking with a lady who had moved a home that was scheduled to be demolished because of a new road being built. She paid movers to move the home onto land that she bought nearby. After all was said and done, the home appraised for over $200k and she has less than $150k invested. I WAS HOOKED. I researched the process and bought my first Investment Property the next month. I had No Money, and had to use a bridge loan for a down payment. I bought the house for $65k and it immediately appraised for 98K. I then refinanced the home for $78k and took out $13k and pain my student loans off. I got a 15 year loan on the property at 7.5%. This is how the numbers worked:

Purchase price $65,000

Loan Amount $78,000

Appraised Value $98,000

Interest Rate $7.5%

Term 15 years

Payment $723/month

Taxes and Insurance $150/month (Total Payment $873/month)

Rental Rate 1998 rental rate $1000/month 2006 Rental Rate $1200/month

I sold this property last year for $111,000. If I would have kept it, it would have been paid for in 7 more years. That is how you pay for College with one property. I had no personal money invested and over a 15 year period, it is paid for. The house when sold should be worth enough to pay for college for one or maybe two children.

We are constantly asked how to Invest in the Real Estate. Here at Venture Investments, we give YOU the same opportunity to be able to buy like I do and help you through the process. Venture Investments is the only company that I know of in the Charlotte Area that offers a way to teach people how to buy Investment Properties with Safe and Proven methods.

To learn how you too can participate in what I know to be a Great Way to Pay for College, give us a call and ask to speak to one of our Investment Specialist. We will teach you everything you need to know and how to avoid the mistakes that I made along the way.

704-597-7187 or visit Venture Companies Website Here