“Landlords Helping Landlords” NWCLAnwcla.com/images/news/nwcla090109.pdf · The summer recess period is over. Time to sharpen up our pencils, get ready for more homework and

NWCLANorthern Worcester County Landlord Association

“Landlords Helping Landlords”“Landlords Helping Landlords”

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Volume 58 September 2009Landlords Helping Landlords

NWCLA President’s September LetterDear NWCLA Membership,

The summer recess period is over. Time to sharpen up our pencils, get ready for more homework and get back-to-school. The education being our monthly landlord meetings! I want to welcome you all back

to the NWCLA 2009 - 2010 Meeting Schedule for this season and give you coming highlights and a preview of what we have on schedule so far this year.

Our September Meeting is September 10th, 2009 with a visit from Jamie R. Williamson of the Massachusetts Fair Housing Center. The Massachusetts Fair Housing Center will be providing our members with a fair housing training course. In this open session we will learn how to pre-screen tenants fairly, avoid the pitfalls and mistakes made in our advertising, be aware of what can be discrimination as we prepare to rent our units. Come down to test your knowledge and see if you are doing things right.

October is National Fire Prevention Month and we are in the process of lining up our guest speakers for the event. We have asked Gardner Fire Department Chief Robert Newton and Private Insurance Adjuster John P. Grenier to be our guest speakers at this October meeting event. John P. Grenier is also one of our NWCLA Sponsors, please see his ad on page 4 of this month’s newsletter. October is also the month we should be changing out the batteries in our smoke and carbon monoxide detectors. Remember to always swap out the batteries at the beginning of a new lease term with your tenants too. After a brief presentation from Chief Newton and John P. Grenier, there will be are usual open forum discussion where you can ask questions first hand regarding the proper upkeep and maintenance of our properties regarding fire prevention.

For November we have scheduled Jeff Pace and Henry Moses of Economic Enviro Techs, Inc to come in and address our members of the environmental concerns that we may face as landlords at our properties. Some of these concerns are asbestos, mold, and other toxic elements that may need to be remediated in or around our rentals. I can personally attest to the great work that Jeff and his crew have done at one of our buildings to remove an asbestos problem we had in the basement. They came in at a great price, did what they said they would do, and were very easy to work with. See Economic Enviro Tech’s business card size ad on page 6 of this newsletter.

Then, of course, December will be our annual Holiday Gala Event where the board members prepare the entrees, deserts and deck the halls. This is the must attend event of the year for our members’ meetings. Last year because of the winter weather we rescheduled three times to final get together for the holidays and enjoy a bit cheer. There are always tons of raffles and door prizes and many people won multiple times because the weather stopped folks from coming out.

This is also our opportunity to donate toys to the local charities and food banks. You will receive a ticket for each unwrapped toy for boys and girls, and additional tickets for bringing in non-perishable food items. December is always a fun filled seasonal fare.

But you don’t have to wait until December to be charitable. We are still making non-perishable food donations to Ginny’s Consignment Shop on Mechanic Street in downtown Leominster right over the railroad tracks. Your generosity in these tough times is greatly appreciated by those of us who are less fortunate.

Also again as a friendly reminder – when attending the meetings at Monty Tech, please do not park along the back corridor where the buses are parked, or take a handicapped space unless you have the proper parking sticker to do so. Parking is behind the Dukakis Performing Arts Center. You may also park near the main entrance in the front of the building and walk to the Tea Room down the hall by taking a right as you enter, then a left down the hall to the rear of the building. See you in October for National Fire Prevention Month.

Sincerely, Brian LucierNWCLA President 2009 – [email protected]

In This Issue Page President’s Letter 1

NWCLA Useful Notes 2 NWCLA Members’ Sponsor Testimonial Program 2 Upcoming Topics, 4 BUY-SELL-TRADE-FREE 4 Spotlight Sponsor Miracle Methods Surface Restoration 5 Web Site: http://www.scottcommonsense.com/ 5 6 Tips on How to Invest In Real Estate 6 Staging Your Apartment to Rent or Fixer Upper Houses to Sell 7 - 8 Testimonial for Our Advertisers Miracle Method Surface Restoration 8 Tips for Lease to Own Real Estate Investing 9 NWCLA Spotlight Sponsors 10 There are Four Major Phases to a Recession - The Short Version 10 NWCLA Spotlight Sponsors 11 Schmidt’s Smorgasbord 12


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NWCLA Membership $80 Membership Benefits Include:• Monthly NWCLA Newsletter• Local Drug Arrest List • Housing Court Eviction List• Member to Member Support• Informative Monthly Seminars• Association Attorney• Legislative Updates• E-mail Alerts on Housing Issues• Web Site - www.nwcla.com• NWCLA Blog posts at

www.realestateinvestor.com

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PresidentBrian Lucier [email protected] Vice PresidentDebbie Greelish [email protected] TreasurerTina [email protected]

Secretary/ClerkTheresa [email protected]

Membership DirectorBrenda [email protected] Newsletter DirectorRick Dupuis [email protected]

Welcoming CommitteeTheresa [email protected]

Marketing DirectorLaura Schmidt [email protected] Web Site DirectorBrian Lucier [email protected]

Oil Program DirectorJay Johnson [email protected] Food CommitteeLaura Schmidt [email protected]

Program ManagerJeff Landry [email protected]

Legislation DirectorJamie Merrill 978-407-7174 [email protected]

Board MemberMatthew Moore 978-345-7971 [email protected]

Board MemberRon LeShane Jr. [email protected]

Board MemberJay Johnson [email protected]

NWCLA Board Members “NWCLA – Landlords Helping Landlords”

We are proud to serve the following communities:Ashby Ashburnham Athol Clinton

Fitchburg Gardner Harvard Hubbardston

Lancaster Leominster Lunenburg Phillipston

Princeton Sterling Townsend Westminster

Winchendon

P.O. Box 276 – Fitchburg, MA 01420 – 978-345-1887 – http://www.nwcla.com

NWCLA Members Testimonial Program Every month we are going to extend to you an opportunity to highlight the positive experi-ences you’ve had with any of the vendors in our newsletter. Please take a moment to e-mail me a few words describing the work that was done for you and the name of the contractor who completed the job. Your affirmative input will let other property owners in our group know that working with our advertisers can be a positive experience. This is also a great way to say “thanks” to the business men and women who contribute to the Northern Worcester County Landlord As-sociation and our goal of being the best landlords that we can be!

Laura’s e-mail is [email protected] or mail her stories to:NWCLA, ATTN: Laura Schmidt, P.O. Box 276, Fitchburg, MA 01420

NWCLA Useful Notes• Summary Process Summons &

Complaint Forms are available for $5.00 NWCLA meetings

• The newsletter committee needs you to E-mail your stories, ads, helpful hints, to [email protected]

• The Successful Landlord is avail-able to purchase at our meeting. Cost is $40.00. While supplies last

• Anyone seeking past eviction lists please go to our web site to download the latest copy.

24-Hour Heating & Plumbing Emergency ServiceFREE Estimates • Residential & Commercial Work

Senior, Active Military AND Volume $$DISCOUNTS$$Pre-Pay & Budget Plans • Online Bill Payments • Energy Saving Products

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Full BURNER ServiceFull PLUMBING ServiceFull AIR CONDITIONING Service

“Why Make More Than ONE Call?. . .When COUNTRY FUEL Does it All!”

212 West St., Gardner, MA978-632-1100 • 800-995-6395

MA LIC #10588


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You have the right to choose the LOWEST COST Eviction Mover / Public Warehouser

See our web site at:www.evictionmover.com for information and licensing or call

1-617-966-6684

DON’T GET RIPPED OFF!

NWCLA MEMBER DISCOUNTS

Aubuchon HardwareGroup # 1000501 – Membership card required

20% off Glidden paint 10% off merchandise

Grand Rental StationCash Acct. # *195 – Membership card and

Photo ID required 10% off

Maki’s Building Center Cash Acct. # *195 – Membership card and

Photo ID required 2% - 10% off

Sabourin HardwareMembership card and Photo ID required

Advanced Electrical Contracting 10% discount for any job above $125 for members

Quality Drywall 10% OFF to NWCLA members

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Please Note: The information in this newsletter is not intended to be construed as legal, accounting, or other professional advice. Seek legal advice from licensed professionals for answers relating to your particular questions and circumstances.

Michelle Schmidt Realtor Cell: 978-828-0817 Email: [email protected]

“Call me today!

I’m glad to help with allof your real estate needs!”


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FOR SALE 2 Stoves 2 Refrigerators1 Washing Machine1 3-bay metal sink1 plastic utility sinkGreat for your apartments! Starting at $100.00Call Tim Damon @ 978-297-5254 __________________________ http://www.forrentorsale.net/ 3 different Ken Roberts training videos, and tapes complete with the manuals. Call Mark @ 978-502-5723 or e-mail: [email protected] __________________________NEW, sliding glass door unit for a 4 foot tub enclosure. Hard to find. Paid $200., Will sell for $100. Call Marria @ 978-534-5982 ___________________________ 1.) Used HP MX.70 17 inch desktop monitor color grey apx 4 yrs old not used for 2. Complete with box manual, pwr cord Excellent condition like new.Asking $65.00 or BO. First $50.00 takes it2.) Also have HP 845c color ink jet printer (grey) excellent condition like new with pwr adapter, no ink. Asking $35.00 or Bo. First $25.00 takes it.

Will sell all items above for $75.00 cash. All items are in working order and sold as is. I have all boxes; will deliver for slight fee w/i 30 mile radius of Fitchburg. These are my sons units - I need the room, he needs the money. Call Ken @ 978-342-0639 or e-mail: [email protected]___________________________36” x 80” outside door, hardwood with 6 windows, with frame. Dead-bolt lock included. $50.00 or BRO call Ken Anderson at 978-534-9533 or 508-641-1559 ___________________________ 3 COLOR MONITORS!!! 19”& 20” VIEWSONIC Each in excellent condition. Left overs from recent professional graphics studio upgrades. Asking $80 each or BRO call Brian at 978-448-3873 or [email protected].

REAL ESTATELOOKING FOR INVESTORS!!!Seasoned real estate investor seeks other like-minded investors to partner on large apartment complexes. Call Brian at 978-448-3873 for more information or e-mail. [email protected] ___________________________Looking for Property in Gardner, Leominster, Athol Areas. Any and all calls welcome for 10+ multi-family units. Have financing approved and ready to go. Call 978-448-3873 and mention this ad from the NWCLA Newsletter for more information. Ask for Brian. [email protected] ___________________________Time-shares Available For Rent in Aruba, Florida, Las Vegas. Any and all calls welcome 978-448-3873 and mention this ad from the NWCLA Newsletter for more information. Ask for Brian. [email protected] ___________________________Ad listings are free to members. There are three ways to submit your ad: (all ads are subject to review and editing)1.) Bring your classified ad(s) to the

meeting and post on the bulletin board

2.) E-mail your classified ad(s) to: [email protected] 3.) Mail your classified ad(s) to:

Attn Terry NWCLA PO Box 276 Fitchburg, MA 01420

a.) State classification – Wanted, For Sale, Free, etc.b.) Describe the item – color, size,

condition, age, model number, price, etc.

c.) Contact name – first and last name please (must be NWCLA member)

d.) Contact information – telephone and or e-mail address

All ads subject to space limitations in our newsletter.

BUY-SELL-TRADE-FREE

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NWCLA Program Schedule 2009 Sept 10, 2009 The Massachusetts Fair Housing Center

will be providing our members with a fair housing training course.

Oct 9, 2009 Fire Prevention Month with Special Guest Speakers

Nov 13, 2009 Jeff Pace and Henry Moses of Economic Enviro Techs, Inc.

Dec 9, 2009 NWCLA Holiday Gala Party Event Make sure to bring unwrapped toys and non-perishable food items


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Useful Web Site of the Month http://www.scottcommonsense.com/The SCOTT® Common Sense Community is the sensible place to read articles, get tips and share your solutions for life’s everyday challenges. Join thousands of members across the country and exchange real-life Common Sense wisdom for saving time and money, cleaning and organiz-ing your home, staying healthy and handling everything your busy life throws at you.

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NWCLA Members – Did You Know?... That Legislation Director Jamie Merrill has been tracking pending legislation that effects all of us as land-lords including helping members deal with out of town landlords? Be sure to visit the Legislation page on the NWCLA Web Site for this information and more related legislation topics. Take Action!!! http://www.nwcla.com/

NWCLA Septembers Spotlight Sponsor Miracle Methods Surface RestorationMiracle Method- they can resurface your life!

Miracle Methods started approximately 5 years ago.Philip and Jane Sokol own the company. Phil (along with three other techs) do the actual work and Jane runs the office and keeps the books as well as being a busy buyer’s broker.

Phil has done three tubs for me, one at our place of resi-dence and both in our two family (See before and after pictures at September meeting). A Testimonial we wrote last December is being re-printed along with this letter. In a moment, I am going to take you through their process. They can resurface almost anything including, tubs, show-ers, counter tops, ceramic tile and sinks to name a few. They also install grab rails where needed.

Miracle Method’s just over 24 hour Restoration process-You may use the tub or shower the day of arrival. The first day they will remove any caulking around the perimeter of the tub. They chemically clean the tub using a special two-step process. They do a little light sanding to remove soap scum that has accumulated through the years. In-cluded in the price is one half hour of labor to repair and chips, nicks or scratches that you may have.

They then apply a “Special” Bonding Agent, MM4; this chemically welds the outer surface creating a bond on the tub and or tile. This was developed exclusively for Miracle Method and is much more effective than the “acid etching” that most other refinishing companies use.

Then they spray the primer and coats of specially formu-lated Acrylic Enamel coating. You may not use your tub or shower that evening.

They return the following day to detail the tub. The pur-pose for this is to remove any dust that might have settled onto the wet finish and to ensure that the finished product is smooth and glossy. Most other refinishing companies do not take this step. They then neatly install new caulking around the perimeter of the bath tub. You may use the tub or shower that evening, usually after two hours-as soon as the caulking has dried. The entire process from the time of arrival to the time the tub is usable usually takes just over twenty-four hours.

They can also change the color of tile, bathtub or counter top. This process is a much more affordable solution verses replacement. Call for an estimate on changing the color or your bath tubs, counter tops, etc. Miracle Method offers a five year warranty, your tub, shower or tile should last 15 years and they will teach you how to care for them, what to use and what not to. Please feel free to call them for more information or any questions you may have. Remember, being a “Spotlight Sponsor”, we (The NWCLA) WILL PAY YOU IN NWCLA Bucks with a copy of receipt from busi-ness done with Miracle Method.

Miracle MethodPhil and Jane SokolWestminster, MA 01473978-874-1440www.miraclemethod.com

OFFERING A $100.00 RAFFLE PRIzE ON ANY TUB RESURFACE AND AN ONGOING DEAL TO MEMBERS OF $50.00 OFF ANY TUB REFINISHING


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6 Tips on How to Invest In Real Estate By Colin Egbert, CEOReal Estate Investor.com

Investing in real estate is not as difficult as it would seem to the average per-son. You’ll have to take the time to find the right investing method for you and decide how you want to go about the investing process. Though, you may also want to devote some time to calming your fears too!

I’ve compiled a few simple steps you can work on to learn how to invest in real estate. Everyone should hit on these steps at some point during their first real estate deal or purchase so don’t worry too much about getting it exactly right.

1. Pick Your Personal Real Estate Investing Method

I’ve said it before and I’ll say it again. There are a lot of ways to start investing in real estate. It’s not the simple buy a home and sell it scheme that it looks like on the outside. You can become a short sale investor, you can wholesale property or you can even rehab property if you like to get your hands dirty. Well, you can rehab property even if you don’t like get-ting your hands dirty.

Start yourself off by looking at some of the methods of real estate investment that are available. Then decide which one best

suits your personality, schedule and the amount you can invest. If you find that you just want the security of knowing that you money is in real estate, you can go with something as simple as joining a real estate investment group or investing money in someone’s real estate business.

2. Examine Your Budget and what you can Afford

After you’ve decided that say.…short sales are the real estate investing method for you, you’ll have to pick up your ac-count books and start calculating. Even a short sale property is a big investment for the first timer. You’ll want to keep an eye on the budget at all times from the search for the right home to the closing of the deal and after.

There are other investing methods where it is very important to keep an eye on the budget. Rehabbing and house flips are notorious for making investors lose money. It’s easy to go over budget when hiring multiple contractors and dealing with unexpected repairs. When an inves-tor goes over budget it’s hard to make any profits, let alone break even on a sale.

3. Look for Property that Fits Your Criteria

Based on the method you’ve decided on for investing in real estate and your budget, you’ll want to start looking for property that fits the investing criteria. These criteria are different for each invest-ing strategy.

Some investors will want to look for homes that are small and super cheap so they can flip them for just a little profit. While other investors will be looking for pre-foreclosures that they can close short sale deals on. Finding these pre-foreclo-sures often involves heading down to your local court house to search through foreclosure listings. Many investors save themselves time and effort by subscribing to foreclosure listing services.

The importance of this step is simply to decide what criteria your ideal invest-ment property has and to narrow down a list of the potential candidates in your area.

4. Start thinking Exit Strategy

Before you purchase any property you should start thinking exit strategy, as in what are you going to do to make a profit on this house? Don’t worry. There are also plenty of ways to make money on real estate.

In brief you can; • Sell the house • Rent the property out • Lease to own the property

Selling the house is the quickest and simplest way to make a return on your investment. You don’t have to invest a lot of money put a home on the market either. If you are going to invest in a short sale, you might want to look up other lo-cal investors in the area. Contact them to see if they are looking to buy any particu-lar type of property. This is also an easy


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way to find the criteria for your potential investment home.

If you find a home that the matches the criteria of another investor you know will buy from you, then you’ve easily found a potential sale!

Renting the property out, involves becom-ing a landlord. This can be an easy way to build up your portfolio of property while also getting some return on your investment. Just remember, you’ll also be responsible for keeping the property well maintained.

Leasing-to-Own a property can be an easy way to solve your buyer problem if you have a lack of them. Lease out the property to homebuyers who are on their way to being able to get a mortgage. They can make monthly payments to you to purchase the home for themselves and in a few years get a mortgage to make a balloon payment on the rest of the home price. By leasing-to-own you can also ar-range it so the homebuyer is responsible for maintenance on the property.

5. Make Offers and Close Your First Deal

By the time you’ve researched real estate investing to the point where it’s making you nauseous to think about, you are ready to make offers. Don’t just make offers on one property. Not every hom-eowner is going to accept your money or want your help in closing a deal. Plus, as long as you haven’t signed any contracts you can change your mind about pur-chasing any one home.

Also, take as long as you need to pick your first property for investing in real estate. This is not a race and there will always be good deals out there. The real estate market is big enough to support everyone who even has a thought about investing.

6. Initiate Escape Plan!

Once you have your first property you need to get moving! Start working your exit strategy as soon as you’ve signed the contract. If you need to get contractors out to the property, get them out there. If you need to place classified ads or put up signs, do it.

There is one thing you should never do in real estate investing and that is rest on your laurels once you actually have a property in hand. If it’s sitting there, then it’s not making you money. That prop-erty can actually be costing you money in the form of carrying costs. Make sure you close that deal and initiate your exit strategy as quickly as possible to ensure a profit.

Any good investor is going to tell you that there is a lot more to learn about how to invest in the real estate market. These are just the simplest, broadest steps in every investor’s process. You’ll find that there are specific steps for each specific real estate strategy and you will need to know them in order to be successful. Good luck in your search for the perfect real estate investment!

Staging Your Apartment to Rent or Fixer Upper Houses to Sell By Colin Egbert, CEOReal Estate Investor.com

Now that you’ve got those fixer upper houses, or rental units all fixed up and have an exit strategy in place, it’s time to start staging houses. Real estate rehab-bing involves more than just remodeling houses; you have to sell that house to a potential buyer or renter.

Buyers love homes that look classy, clean and comfortable. You’d be surprised how difficult it can be to strike the right chord with a homebuyer’s sensibilities. They just don’t want anything that seems the least bit garish or ugly. Yet, everyone has a different opinion on just what is classy, so you’ll have to go with styles and staging that appeals to a wide range of audiences.

Fixer upper houses in particular can be difficult to stage because every single improvement you make to that property has to appeal to the homebuyer. From the new cabinets in the kitchen to the paint on the exterior of the home, it all needs to appeal to the average homebuyer.

When you get started in real estate rehab-bing you’ll be paying a lot of attention to how those fixer upper houses look in the final equation. Here are a few tips to help you on your way to the perfectly staged fixer upper house.

Story continued on Page 8


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NWCLA Members Testimonial for Our Advertisers Miracle Method Surface Restoration Submitted By Laura & David Schmidt

We had met Phil through a company where he and my husband worked. Phil had hooked us up with his wonderful wife, Jane, as a buyers broker. She helped us find exactly what we were looking for except for one of the bathrooms had a very blue tub, toilet and sink (of course). A short time after moving in, we got a call from Phil’s wife asking about the tub (she remembered how much I loved it). She told me that Phil had recently re-turned from Restoration “School” and could make that Blue tub and color I wanted and it would be like a brand new tub without and other work (i.e., plumbing). Well, I am happy to say that five years later, my tub is still a stunning white and still looks brand new.

Just recently we purchased a two family home with decent quality tubs with surrounds One Mustard and the other yellow. Both our tenants believe they have brand new bath tubs thanks to Miracle Method Surface Restoration. They stand behind their work and deliver what they promise. As a home owner and landlord, I would recommend Miracle Method to anyone who is looking for a beautiful tub without the “too beautiful cost”. Well Brian, I hope that was OK. Feel free to copy into newsletter, I’m so happy that I can help them advertise a little, they are some of the nicest and honest people I have ever met. Again, we are really looking forward to meeting you and everyone else on Thursday night. Fellow Landlord,Laura Schmidt Happy Investing!

Good Looking LawnsEvery real estate rehabbing project needs the aid and services of a good landscaping company, or at least a local guy with a lawn-mower. Before you start bringing in those potential homebuyers you should mow the lawn, prune the hedges, and trim the trees and so on.

Fix up the Front DoorDon’t neglect the front door when fixing up your property. It’s just the window dressing sure, but the potential homebuyers get their first impressions of a property from the front of the home and its front yard. They want to feel like they are walking into a nice looking home. Put new hardware on the front door, new paint, even a new front door. Freshen up the paint, and make sure the trim looks nice.

Show off New Carpet/FloorMost real estate rehabbing jobs involve replacing old carpet and flooring. Pick a nice neutral color for carpeting. It also helps if the carpet is stain resistant. Pick lighter warm tones for wood flooring and white or light colors for linoleum and tile. Then, make sure you point out that all the flooring is new in your fixer upper houses.

Let in the LightAvoid dark areas in your fixer upper houses. Dark spots with lit-tle light are uninviting for the homebuyer. Open all the windows to let in the light. Make sure you have lamps or fresh light bulbs in areas where there is little window light and turn them on.

Appeal to the SensesNever underestimate the appeal of good scents in a home. Take the time to pick up some potpourri or fragrance oil to place in the house. It’s been shown that the right fragrance can influence a person’s mood. Try something refreshing like citrus in the bathroom and comforting like vanilla in the kitchen.

Stage Rooms in SetsIf you are the kind of real estate rehabbing investor that likes to bring furniture into the property more power to you. You may even be selling that furniture with the house as part of the pack-age. When you do bring in furniture to stage rooms think of each room as its own separate entity. Staging different rooms in differ-ent styles is an excellent way to show a homebuyer what can be done with the property and it gets their decorating plans started.

Light Window DressingWhen you use curtains on a window in those fixer upper house make sure they are hung properly and that they are clean. Drapes should be light or neutral in color and not made of really heavy material.

Closet SystemsThis isn’t necessary to sell a house, but it sure adds some appeal to the home for the buyers. Think about investing in some shelv-ing for the closets in your fixer upper houses. They make storage a lot easier for whoever decides to buy the house.

Finally, you’ll have to pull together a floor plan to help refresh the memories of your homebuyers after they visit. You can usually make up a simple home floor plan on your computer’s drawing program. If you hired a general contractor for the work, he may have created a floor plan for your real estate rehabbing project on his own. If so, you can snatch that and print up sev-eral copies for potential homebuyers. These floor plans will go nicely on the back of the information sheet for your house.

These above tips for staging fixer upper houses will help you in the long run to create the perfect look. Of course, now you’ll have to decide whether you want to sell or rent your home? It all depends on what you want to do – whether you want to rent the apartment unit or sell the home you have.

Story continued from Page 7



Tips for Lease to Own Real Estate Investing By Colin Egbert, CEOReal Estate Investor.com

Lease to own real estate investing is a great niche in the market. This rarely explored and previously underutilized strategy involves getting tenants to start making payments towards purchase of the property that are currently leasing from you. Ideally, a tenant moves into a property on lease to own basis and starts making monthly payments to you. Within a year or a few years that same tenant manages to secure a mortgage with a lender and makes a balloon payment to you for the remaining purchase value of the property.

In theory, lease to own real estate invest-ing is simple. Yet, there are some prob-lems that can prohibit your financial suc-cess unless you are aware of them. Let’s take a look shall we?

Not all tenants end up buying their rent to own house

In reality, it’s only a small percentage of tenants who actually follow through with the balloon payment on a property. Most often they move into a rent to own home because they want the benefits of owning a home, but can’t yet afford or qualify for a mortgage. By the time they do qualify for the loan, tenants are usually in the

mood for something new or different and will look for a different home to actually purchase. If you are looking forward to that balloon payment for your profits this can leave you in the lurch when your tenants turn in moving notice when the lease is up.

Insure that you start getting a return on that property as soon as the tenants move in by adding interest to their payments until the balloon payment is made on the property. This interest is your profits. In addition, you’ll want to increase the asking price of the property by 3 to 5% from your current market value. This is to account for inflation over the next few years that can cause house prices to rise. Of course, this isn’t always the case, espe-cially now in the housing market, so don’t go overboard in your estimates.

Create Two Con-tracts; one to lease the property and one for the option to buy

Having the tenants sign two separate lease to own real estate contracts helps to protect you in court. This is just in case the tenants don’t want to leave, but also don’t want to make that balloon payment. If you are fine with the tenants continuing to pay you directly for the property until it’s paid off some decades in the future, that’s alright.

However, if you want to get someone in there who will actually make a bal-loon payment to you within the terms of the lease your case is stronger for evic-tion. This is especially if the relationship between you looks as much like a rental arrangement as possible. Create a sepa-rate contract with the tenant agreeing to ‘lease’ the property from you for a certain number of years. Then, create a second contract that offers them the option of purchasing the house with a balloon pay-ment at the end of the lease terms. It’s just like leasing a car from the dealership.

Check out State and Federal Laws

It’s easy to forget that you’ll be legally re-quired to disclose on the property just as if you were selling it traditionally. When you lease to own real estate you still have to disclose a lot of items such as earth-quake dangers, lead poisoning problems, and any known defects in the property.

Your legal responsibility extends to other areas too. That real estate contract needs to be in compliance with state, local and federal laws, especially when it comes to lease options. So, check out your govern-ment’s websites for detailed information on what you need to be legal when leas-ing to own.

Realize when you start offering the lease option that a majority of your tenants won’t close, but the option is there for those who do want the property. Plus, you’ll want two separate lease to own real estate contracts; one for the lease and one for the option to buy. This way you’ll have a good strong case should you have to go to court someday. Speaking of court it’s doubly important to ensure that you are compliant with all local, state and federal laws or you’ll find all kinds of problems popping up with your investing process.


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NWCLA Spotlight SponsorsBy Laura Schmidt

Dear NWCLA Members, hopefully your summer was well.

We have an exciting new program that I would like to tell you about. It is called “Spotlight Sponsors”.

What are “Spotlight Sponsors? They are regular advertisers who offer some kind of ongoing deal for our members and donate a raffle prize. Wait, it gets better.

If you use the services/purchase from any of the “Spotlight Sponsors” and bring a copy of the receipt to the meeting (**or mail), we will give you $5 (five) NWCLA Bucks good towards membership, books or anything else that may be available.*** For Retail locations, purchase must be at least $100.00

We ARE MAKING AN EFFORT TO GET OUR MEMBERS AND OUR ADVERTIS-ERS (Sponsors) together. Every advertiser is used by landlords. We need them as much as they need us

Don’t forget to bring a non-perishable food item for Ginny’s and receive an extra Raffle ticket.

If you know someone who you use for the running and maintaining of your invest-ments and they might like to advertise with us, please let me know at [email protected]. If they do decide to advertise with us, we would love a short testimonial from you or any other cus-tomers in the organization that uses their services.

Thank You and WELCOME BACK!

Board or DirectorsNorthern Worcester County Landlord Association.

There are Four Major Phases to a Recession - The Short Version By Jeff_TumbarelloReal Estate Investor.com

Simplest “phases”, though the effects/thoughts differ as the distance from the damage changes (Ivory Tower vs. Street View):

From the Executive Government and/or large Corporate perspectives (they’re similar in many ways).

1. Ignorance of the event (early). Life is good, “This will go on FOR-EVER” is the key phrase. (Everybody claims credit for the “Good Times”.)

2. Denial of the obvious oddities some see coming. Discussions abound as to cause of the sudden small downturn, though denial is STRONG as to the existence of a REAL problem for which any simple fix will be found. (2006-07 and half of 08)

3. Recognition/Action - Everybody ELSE is to blame, each party/person is absolutely CERTAIN about “the right thing to do RIGHT NOW - SOMEBODY ELSE MUST be thrown from the

balcony immediately, with MY TEAM as the obvious replacement to SAVE THE WORLD FROM “THEM”. NOBODY wants to discuss the real problem or the fact that NOBODY has a real solution. (Jul 08 to now, ANY evidence of “recovery” is claimed by all, far before any real effect is seen. The “effect” is gener-ally negative, so everybody blames somebody else again and begins a “new” plan of action.)

4. Resignation to “IT” inside the “circle”, hopes are quietly dashed for any man-made “fix”, but the now-aware “lead-ers” will sing the song of yet another fix “on the way”. Everything that didn’t work before WILL be tried again (at Gov’t and Corp levels), none of what they can or WILL do is politically pos-sible - blame comes with the REAL “fixes” - that whole notion is off the table because someone would have to bear the pain (the pain they’ll bear anyway). “Recovery” begins at the ground level in stealth mode during this stage unless a Depression is the next “phase” (“they” call these “green shoots” today, but they call EVERY-THING green shoots so far). Most early recoveries are crushed as the most-recent flood of “fix” costs come to bear on any surviving producer... “Fits and Starts” - the best descrip-tion of a LONG slog through the most amazing rulings and their dam-aging effects from on high you could imagine - PANIC is what drives it, but the smiling faces belie the inner awareness of the futility of former attempts. Blame runs in the street like wildfire, “that last guy” is forever called on the carpet to save “the current guy” from the masses.



Ginny’s FOOD DRIVE Bring your canned goods or non-perishable food items to the next NWCLA meeting Get involved and make a difference to what Ginny has been doing for years for the local community. This is also another way to get the word out about how our landlord association is helping our community By participating in the food drive at the monthly meeting, you also get a free raffle ticket for our monthly member’s incentive program raffle for door prizes.

Invite NEW MEMBERS to Join Do you know someone thinking of becoming a landlord or property manager? If so, invite them to become an NWCLA member. It is the mission of the NWCLA to educate, inspire and assist landlords in their business. The membership of the NWCLA is filled with knowledgeable, ex-perienced and helpful people. Meetings are held the second Thursday of each month at 7:00 PM. Contact Brian Lucier via e-mail at brian @bhbgroup.com or call (978) 448-3873 for more info.

NWCLA Bucks Up for Grabs For each new member that you refer to NWCLA , You will receive $10 (ten) dol-lars in NWCLA bucks. You may redeem these dollars at our monthly meetings to buy items that will be available for sale or… you may save them up towards your yearly membership fee.

The Successful Landlord Is a must have for your landlord library and is now available to purchase at meetings. Cost is $40.00.

Do you have a story, question, or topic you want to see us cov-er in the NWCLA newsletter?

Drop us a line via e-mail to [email protected] with your question or topic for discussion.

To contribute stories or articles for the newsletter or the web site contact Brian Lucier [email protected]

Brian Lucier also maintains online forums, blogs, and posts at http://realestateinvestor.com/brianlucier and at http://brianlucier.wordpress.com/

Our NWCLA group can be seen at http://www.realestateinvestor.com/groups/69/

4 Signs Your Home Is About to Lose Value by AnnaMaria Andriotis

1. Foreclosures in Your Neighborhood

The quickest way to end up underwater is to live in a neighborhood that’s plagued by foreclosures.

When one home on your block goes into foreclosure, your home’s value drops by 1%, Zandi says. But that isn’t a one-to-one relationship. If two homes on a block go into foreclosure, your home’s value will drop by more than 2%.As homes go into foreclosure, they create a domino effect, lowering home values throughout a neighborhood in a cascade beyond homeowners’ control.

2. Homes Lingering on the Market

When “For Sale” signs linger in a neigh-borhood for three or more months, that may mean buyers and sellers can’t agree on a price. In that environment, homes are unlikely to sell unless the seller lowers their asking price.

“The time on the market is always a good barometer of demand for homes and for the price homes are transacting at,” Zandi says. “The longer it appears that neigh-

bors are taking to sell their home the more likely it is they’re not getting the price they want and that prices are falling.”

Compare the time it took for homes to sell in your neighborhood three years ago vs. today; if it’s taking weeks or months longer to sell, the prices homes can fetch are dropping, Zandi says.

3. Increasing Unemployment

In most cases, the cities where homes have lost the most value during the past year also possess the highest unemploy-ment rates.

Homes in Merced, Calif., have lost 40.2% of their value year-over-year, the biggest loss of home values in the nation, accord-ing to Zillow.com. The city’s unemploy-ment rate is the fifth-worst among 372 metropolitan areas at 17.6%, according to June data from the Labor Depart-ment. El Centro, Calif., where home values plunged 37.6% year-over-year (the second-biggest drop in the country), has the worst unemployment rate at 27.5%.

Individuals living in areas battered by high unemployment are likely to see their home values drop further, especially if they live in areas dependent on dwin-dling industries – like Central Valley, Ca-lif., and the mortgage lending business or Detroit and the auto industry, Zandi says.

4. Homes in Disrepair

Dented siding, peeling paint and broken porches could be signs that neighbors are having trouble making ends meet and can no longer pay to take care of their home, Zandi says. Or they may have gotten an appraisal and discovered their homes have dropped in value and are no longer worth the cost of repairs. Inevitably, as the condition of homes in your neighborhood worsens, home values are likely to drop.

“The mere fact that they’re not investing in their homes will affect you too,” Zandi says.

May 2008Landlords Helping Landlords

NWCLAP.O. Box 276Fitchburg, MA 01420

Association of the year for 2003


NORTHERN WORCESTER COUNTY LANDLORD ASSOCIATION

Schmidt’s Smorgasbord NWCLA Monthly Meeting Menu

Sept, 2009 Perdue Ham, Herb and regular Roasted Turkey Breast sandwiches. A Routine and Veg side dish. Fruit Cups and cookies with the usual beverage selection.

Oct 2009 Smoked Turkey Breast for sandwiches, Vegetable Beef Soup w/crackers. Fruit cups and Jello cups for dessert with the usual beverage selection.

Nov 2009 Schmidt’s Smorgasbord Surprise

Dec 2009 NWCLA Holiday Party Laura Schmidt is our Food Director as well as Advertising Director and she want to hear from you. If you have menu suggestions or ideas, kindly talk Laura at the food table! We welcome your comments.

NWCLA MEETING NOTICE SPECIAL GUEST SPEAKERS

September’s NWCLA meeting will feature Jamie R. WilliamsonExecutive Director

Massachusetts Fair Housing Center.

Thurs., Sept 10th, 2009 7 PM – 9 PM ALL Members are welcome to

attend the meeting atThe Monty Tech Cafeteria located in Fitchburg, MA

Documents

“Landlords Helping Landlords” NWCLAnwcla.com/images/news/nwcla090109.pdf · The summer recess period is over. Time to sharpen up our pencils, get ready for more homework and