September 2003
Your real estate educational resource.
The CT Real Estate Investor Association, referred to as CT REIA, is dedicated to
furthering the real estate investment industry through the education and mutual
support of its members
[email protected] • (860) 561-8821 • P O Box 270556, West Hartford, CT 06127
www.CTREIA.com
Supercharge Your Bank
Account with a Vast Wealth of
Real Estate Investing Knowledge
Monday September 29
Registration 6 PM
Marriott 4 Sebethe Dr.
Cromwell, CT
Rt. 91 Ex. 21
Members $15.00
Non-Members $20.00
At the Door: $25.00
Registration form: Last pg.
Speaker: Robyn Thompson.
Robyn is the leading expert in retailing
houses for all cash! Strategies for buying
and repairing distressed homes; then sell
them for big profits! She has made retailing
a science and knows every technique
imaginable to reduce rehab time, * minimize
holding costs, *attract
and *qualify “A” credit
buyers, and *expedite
closings…….
Learn Powerful Strategies,
Techniques, and methods to Empower
and Enrich your Life style
The Road to Success Leads to...
Connecticut 2003
Real Estate Conference & Tradeshow
the
Our Host
the
CT Real Estate Investors
Association
at the Marriott Farmington, CT. 06032
Unlike Any Event You've Ever Seen
Who Should Attend
* Real estate investors
*Real estate agents * Mortgage brokers *Title insurance agents
*Financial planners * Attorneys & CPAs *Landlords *Contractors
*Lenders Frustrated CD investors
*Property managers *Burned out
stock market investors'... Or Anyone
Who Wants to Buy a Home or Use
Real Estate as a to Create Serious
Wealth, Security & Freedom
Six of Top Real Estate
Experts Will Reveal
Their
Most Powerful Wealth-Building Secrets !
Organized by Davenport Productions
CT Real Estate I nvestors A ssociation
Membership Application
Membership Dues ________
Apartment Owners Guide $_________ Seminar Event $_________ Other $_______
• Membership Dues: $95.00_______
2nd. Member within house hold $45.00___________
•
forms, CT laws & regulation changes, required lead-paint
disclosure forms, Eviction & Small Claims court forms,
tenant screen process, Tenant application, Lease, tenant
insurance info. & more)
Real Estate Investors Guide $30.00____
Non members $40.00_______
(The CT Real Estate Investors is a 38 pg. Booklet which
includes many rental
•
Supplier membership $350.00 _____
Print Clearly
Name____________________________________________________Date__________
Address_____________________City_______________________ST.___Zip_________
Phone:_______________________________Email:________________________________
Total Amount: $________ Check____ Cash____ Visa ____ Master Card_____
Credit Card Account #_____________________________________Exp. Date__________
Signature________________________________________________________________________
Rank your real estate interests on a scale 0 to 10 (highest being 10)
2-4 Family units
Single Family Homes
5+ Apartments
Commercial
Rehab properties
New units
Gov’t & Foreclosure properties
Paper, notes & mortgages
Money to lend/borrow
Tax deferred Exchanges (IRC 1031)
Partnerships
Basics of Investing
Would you like to assist a committee and get involved with CT REIA?
We would appreciate assistance in all areas, (please check the areas of interest to you)
Library
Programs
Membership
Publicity
Raffle
Greeter
Vendor Relations
Advertising
Website
If mailing, mail to: CT REIA P.O. Box 270556 West Hartford, CT 06127
I am applying for membership in the CT Real Estate Investors Association. I agree to support, my membership, the organization. I agree
that neither the Association nor directors and individual members are liable to me, absent of willful misconduct, for any statement or action
made by the Association regarding my membership. I agree to abide by the guidelines and Code of Ethics. I expressly understand the
speakers are not providing legal advice. I will disclose my relationship to any and all property I wish to sell manage, or buy and will
request the same from those I meet through CT REIA.
New England’s Largest Real Estate Investors Organization
Middlesex Mutual Assurance
How long do I need to keep my rent landlord business records?
ANSWER: Forever.
The prudent landlord maintains files on each of
his rental units, documenting the occupants,
rent payment records, maintenance performed,
the lease agreement, rejected applications and
everything else which pertains to this unit over
its history. The question invariably arises as to
how far back these records must be
maintained and when they may safely be
destroyed.
The records are kept in the fear of litigation.
Without that fear, there would be no reason to
keep them. A ledger card
would suffice. For this
reason, the typical
advice is that they
may be destroyed at
the point of expiration
of statutes of limitations
on civil and criminal
legal actions, typically
three to five years,
sometimes longer, but
not usually. In reality, this
is fallacious. Whoever
doubts this statement
should, at the next cocktail party he attends
with a lawyer present, ask the attorney the
following question: "What is meant by attorneys
‘pleading around’ the statute of limitations?"
The answer may be surprising, but it will
certainly be instructive.
If a landlord were to show me a statute of
limitations of three years, I could draft a
pleading which would permit filing of suit at
four. If he showed me one which expired in five
years, I could extend it to six. And so on.
In the case of minors, the statute of limitations
usually does not even begin to run until they
reach the age of majority, typically 18, but
sometimes 21. Does this matter? Of course.
Imagine that a five year old girl occupying the
landlord’s building is sexually molested by a
registered sex offender renting a unit in a
building owned by someone else down the
street.
Reiner, Reiner & Bendett, P.C. Kelley
Donahue Foreclosure Bankruptcy, Evictions,
Real Estate, Civil, Litigation, Education 160
Farmington Ave Farmington CT 06032
(860) 255-5017 [email protected]
www.reiner.com
The girl tells no one, represses the memory,
and she and her parents move out. Four
years after that the landlord
destroys all his records of
the tenancy, including the
rental agreement,
relying on the four
year statute of
limitations on
lawsuits based on
written contracts
and the one
year statute of
limitations on
personal injury actions.
Nine years after that the girl, at age
18 (majority), assisted by hypnotic
retrogression, files suit, naming you for failure
to make the necessary disclosure under
Megan’s Law. Can she do it? Yes. Can the
landlord produce a copy of the rental
agreement showing the necessary Megan’s
Law disclosure? No, he destroyed it relying
on the statute of limitations.
The landlord is the business man. He is
expected to maintain important records. The
tenant is the defenseless consumer. As
between landlord and tenant, if records are
missing, the landlord loses.
Part of the impulse to destroy records,
something which is a fairly recent fashion, is
to emulate big companies. There may be
sound reasons for General Motors to destroy
records of $.39 transactions after the passage
of a long period of time. There is no such
justification for the small business man who
does not produce the volume of records that
the big companies do. Destruction of records is
often a prestige point, as in, "I am so
successful that I have to destroy all my records
after three years, otherwise, there would be so
many of them I would not know where to put
them. This is never a justification. A tenant file
is part of an information retrieval system. It is
not necessary to keep the extra four copies of
the rental agreement the word processor
printed out, the extra legal pads and
McDonalds napkins which somehow found
their way into the file can be eliminated. What
is left are the operative documents, the rental
agreement, the correspondence, the rent
increase notices, everything which the parties
Fairmont Capital, LLC
Jack Klagsbrun Senior Loan Officer
Commercial Mortgage Banker
(212) 937-6171 ( 917) 301-5208
[email protected]
acted upon. We guarantee that the sum total
of these will rarely occupy more than one
quarter of one inch of shelf space. This small
amount of information should be retained so
that it can be retrieved in perpetuity.
Surely, this much space can be found
somewhere. Store them in manila envelopes
labeled with names and dates and protected
in bankers boxes. You might not care much
that you did, but your heirs might later on. ©
Copyright 2000-2001 Landlord.com
Question:
What is the BEST way to find good deals?
Answer:
Sorry, but this is one of those questions that must be answered by another
question: What's a good deal? And this is not a facetious question because the
answer depends on several factors:
•
Your exit strategy
•
Your financial resources
•
Your skills
•
Your goals
•
The risk and hassle involved in a
particular property
So let's say this, I'll let you in on MY favorite
ways to find good deals after I explain why
they're good deals to me.
Your exit strategy
If I put a property under
contract, one of two things is
going to happen to it.
If it's in very poor shape or
out of my "farm," I'll
wholesale it to another real
estate investor for a quick
cash profit. If this is the case,
a "good deal" is a one-unit to
three-unit building that I can get under
contract for about 60% of its "as is" value.
The other thing I might do is to close it and
lease option it for a year or two. In this case,
my "good deal" will be a single-family house
that needs cosmetic work in a decent area
that I can buy for 70% or less of the "as is"
value.
In any case, my exit strategy determines
what I think is a good deal.
If I find a 40-unit apartment building for
pennies on the dollar, I won't
necessarily consider it a good deal,
since I have no desire to be a
landlord and know few wholesale
buyers who will buy them. Ditto for
commercial real estate or historic
rehabs.
Your financial resources
Your financial resources, including
the cash and credit you have
available to you, also determine what is a
good deal to you.
Heating Service
Monitor Heating Systems
(800) 317-2906 Hot air/gas/oil Direct vent “landlord
friendly” Email: [email protected] www.ctbike.com
Imagine you have no cash and poor credit,
but find an owner who will finance with no
money down if you pay 100% of the value of
the property. But his terms are such that you
can still rent it out for a $300/month positive
cashflow.
Is this a good deal for you, despite the fact
that you have no equity? Could be. Is your
time well spent looking for these types of
investments? Yes, since they are what you
can manage. Is mine? Probably not, since I
I've noticed that my wholesale buyers will pay
70% of the after repaired value of a junker
property less the cost of repair as long as the
cost of repair doesn't exceed about $15,000.
More than that, and you're talking really
major rehab. Buyers of these types of
properties typically want a
higher overall profit.
Similarly, people who buy rentals in war
zones often look for yearly returns
approaching 50% of the purchase price. Why?
Management hassles, rent collection hassles,
hassles with the city...you get the picture.
My favorite ways to find good deals
can find lots of deals that cash flow AND have
30% equity the day I buy them. What's the
difference? I know how to offer owners cash.
You can't.
So, in light of what I consider a good deal (a
one-unit to three-unit family property that I
can get for 70% or less of the "as is" value by
offering cash), what are my favorite ways of
finding good deals?
Your skills
In order of importance:
Your skills also matter. If you don't
understand repairs, looking for properties that
need major mechanical work in order
to rehab and resell isn't the best use
of your time.
And for heaven's sake, don't start
looking for "good deals" in large multi-family
properties until you've taken at least one
landlording seminar!
If a deal doesn't meet your goals, it's not a
good deal no matter how cheap or how good
the financing.
If your goal is to hold properties long-term for
the tax advantages and avoid major rehabs,
no junker should ever turn your head.
If you flip it, you've created a
capital gain that you don't
want. If you rehab it, you
haven't met your own goal of
avoiding rehabs.
Risk and Hassle
Finally, the risk and hassle
involved in a deal affects
whether the price and terms
are good or not.
•
Direct mail
•
My ad in the paper
•
Referrals from other
investors and wholesalers
•
The MLS
•
Door-to-door flyers
There you have it!
About the author...
Vena Jones-Cox has been a full-time
real estate investor since 1989. She focuses
on purchasing single family, bread-and-butter
homes and selling them on lease options to
tenants who hope to become homeowners.
Vena is a frequent guest lecturer at real
estate investment groups throughout the
country and particularly enjoys working with
new investors. She will be a guest speaker
at the CT Real Estate Investor
Association/Davenport Productions on
November 8, 2002. For additional info
please contact the association at: (860)
561 8821 or visit their web site at
www.ctreia.com
Mackinnon & J. Tavano LLC. Real Estate closings, LLC, Evictions (860) 528-8400991 Main St.
East Hartford, CT 06108 and 1559 Post Rd. Fairfield, CT 06430 Email: [email protected]
Service
Directory
Branford (203) 481-5521
Email: [email protected]
www.hdsegur.com
Public Insurance Adjuster
Corporate Sponsors:
Douglas LaFaive & Associates
(860) 231-8994
For the insured. (800) 501-8119
www.claimshelp.com
Middlesex Mutual Assurance
Attorneys
Mackinnon & J. Tavano LLC.
Real
Estate closings, LLC, Evictions(860)
528-8400991 Main St. East Hartford,
CT 06108 and 1559 Post Rd. Fairfield,
CT 06430
Email: [email protected]
Scott A. Wilson, J.D.
(860) 678-8255 Estate & Business
Planning 195 Farmington Ave.
Farmington, CT 06032
Reiner, Reiner & Bendett, P.C. Kelley
Donahue Foreclosure Bankruptcy
Evictions Real Estate
Civil Litigation Education Litigation
160 Farmington Ave
Farmington CT 06032 860
255-5017
[email protected]
www.reiner.com
Credit & Tenant
Reporting Agencies
Heating Service
Monitor Heating Systems
(800) 317-2906
Hot air/gas/oil Direct vent “landlord
friendly” Email: [email protected]
www.ctbike.com
Insurance
(203) 756-3902
Plainville (860) 793 1300
Kitchen Cabinets
Viking LLC
(860) 223-7101
Michael Fried
33-39 John St. New Britain, CT
Email: mfried~vikingkitchens.com
www.vikingkitchens.com
Leasing
Leasing Masters
203 269-9991 x102
Your Apartment Leasing Specialist
[email protected]
Mortgages
Tenant Credit Reporting
(800) 999-5603
Email: [email protected]
www.tenantcredit.com
William J. Morris H.D. Segur
Sabel & Associates Ins.
800 462-5646
Jeff Sabel, Assistant VP
Insurance Loss Consultants
782 Clinton Ave.
Bridgeport, CT 06604
Waterbury
Fairmont Capital, LLC
Jack Klagsbrun
Senior Loan Officer
Commercial Mortgage Banker
(212) 937-6171 ( 917) 301-5208
[email protected]
Gobal Home Loan & Financing
Errol Mesquita
(860) 463-7987
[email protected]
Real Estate Services
Roger DiPiano/Agent
Prudential CT
(860) 667-4775
(860) 559-1258
(860) 561-8100
Laundry Equipment
Service
Coin-O-Matic
1800.381-1000
coin operated Laundry equipment sales
service and leasing
www.coinomaticsercives.com
Email: info @coinomatice.com
Fieldstone Properties
Robert Kremp, Dir. of Acquisitions
Buyer of multifamily properties
Are you looking to sell your property?
Brokers protected. Fax (973) 584-8700
(973) 584-3737 Email:
[email protected]
GlobalTech, Inc.
(860) 233-0688
(973) 509-9456
David Goldschmidt
Lead based paint, mold & mildew
Licensed Home Inspection
(203) 877-4736
(203) 430-5148
Steve Matyasovsky
19 years experience
Email: [email protected]
State Marshals
Lisa H. Stevenson
(860) 643-6141
P.0. Box 1738
Manchester, CT 06040
Email: [email protected]
John Johnston
(860) 289-6728
58 E. Burnside Ave.
E. Hartford, CT 06108
Tax Deferred Exchanging
Denis R. Caron
(860) 635-5566 x 131Vice President
and Connecticut Counsel Lawyers Title
Insurance Corp. Email:
[email protected]
1031 America/Erik Olsen
877 966-4449 x 14
1031 Exchange
41 Grove St.,
New Canaan, CT. 06840
Email: [email protected]
www.1031america.com
P.O. Box 270556
West Hartford, CT 06127
Phone: 860-561-8821
www.ctreia.com Email: [email protected]
In this issue:
*How long do I need to keep my rent landlord
business records?
*What is the BEST way to find good deals?
*September 29, 2003 Seminar
Welcome
to the Connecticut Real Estate
Investors Association (CT REIA) – your premier
real estate training, motivation and networking
opportunities,
your
real
estate
investors
educational resource.
Our mission is to provide
our members with the education, that will further
their ability to successfully invest in real estate and
achieve financial freedom. Whether you are a seasoned investor or a
beginner, we at CT REIA are your partners in attaining your financial
goals.
www.CT REIA.com [email protected] • (860) 561-8821 •
P O Box 270556, West Hartford, CT 06127
Corporate Sponsored: H. D. Segur Insurance
“Bill Morris” 800-336-4496
September 29, Seminar November 8th. Conference
Registration form
--------------------------------------------------------------------------------------------------------Name: _____________________________________ 2ND Attendee:____________________________________
Address: _________________________________City: ___________________________St: .____Zip: ________
Phone:_______________________________Email:____________________________________________________
ƒ
ƒ
Please register me for: _____1 attendee
____ 2 attendees
I am not a member of CT REIA, however I would like to attend: __________
Payment Method: Checks_____ (payable to DAV. Prod.)
Card No: _______ _______ _______ _______
Visa _____ Master Card_____
Exp. Date: ____/____
Signature:
____________________________________
Sept. 29th. Seminar:
Members $15.00________ Non-Members $20.00________
At the Door: $25.00_______
November 8th. Conference
Members $49.00______ Non-Members $59.00______
At the Door: $79.00_______
CT REIA membership $95.00_______ 2nd. person in house hold $45.00________
Total Amount: $_________
Mail to: CT REIA PO Box 270556 West Hartford CT 06127-0556
P