Don Ald Trump Jr

Don Trump Jr.'s father and I are the same age. The famous Donald Trump, one of the greatest celebrity real estate developers in the world, is a valued friend and mentor to me. Having Donald Trump as a coauthor and friend has been one of the greatest blessings in my life. Another blessing has been getting to know Donald's two sons, Don Jr. and Eric. One night, Donald Trump and I were guests at the Quill Awards, an evening similar to the Academy Awards, but rather than recognizing Hollywood...

TIP Even in difficult economic times capital is rarely destroyed It only changes hands or changes forms

Consider how capital flows around the world. It is mind-boggling to ponder the number of individual transactions that take place every day. From the child buying penny candy at the grocery store, to international banks moving mountains of money, to balancing government currency accounts, there are billions of individual capital flows that take place every day. In its most basic definition, capital is either energy or a symbol of energy. Capital is the energy that flows through each economic...

TurninG Lemons into Lemonade

One of the most powerful forms of leverage I have accessed through equity marketing is the ability to exchange as a way of solving problems in my portfolio. For example, as a lender I made a loan against a four-acre horse property. The borrower went into default, and I eventually had to file foreclosure. My loan was junior to the first mortgage, which was also in foreclosure. That meant that I had to assume the first mortgage to protect my position in the property. I wrote a check to the first...

Rule No 6 You Must Buy Equal or Up and You Must Reinvest All of the Cash

In order to pay no tax on your exchange, you have to do two things you have to buy equal or up, and you have to reinvest all of the cash. Let's go back to Fred and Sue selling their purple duplex. Let's say that they sell it for 100,000, there is an unpaid mortgage, and closing costs associated with the sale total 40,000. This means that if I was their qualified intermediary I'd receive the balance of the proceeds of 60,000. If Fred and Sue then buy their replacement property for 90,000, they'd...

Real Life Story View from the Mountain

With confidence from my 32nd Street experience, I purchased the twenty-nine-thousand-square-foot McCune Mansion in Paradise Valley, Arizona. The monstrous mansion was built by oil tycoon Walker McCune in the 1960s for more than 3 million. The mansion sat on forty acres of hillside that overlooked the entire city and the spectacular Camelback Mountain. My plan was to change the use from a single home to a resort. The city fought the rezoning, so I decided to go with what they called preferred...

Business Pmnciple No 5 Taxes

If you want to make an immediate impact on the return on your real estate, you need to pay close attention to tax laws. TIP The fastest way to increase your ROI on a property is to take advantage of the tax laws in place to encourage real estate investment. The single biggest expense for most people is taxes. In the United States, which is routinely considered to be a low-tax country, the average business owner earning 100,000 pays more than 50 percent of his earnings to the government in some...

Or Why you want the charging order

So, finally at rule seven we are getting to the good stuff. But as I mentioned, there is so much misinformation out there that I felt it was important to first dispel the myths and outright lies. With all that completed, I can now state that LLCs and LPs offer excellent asset protection via the charging order. Before reviewing the charging order, the difference between LLCs and LPs must be explained. With an LP you must have at least one general partner and one limited partner. The general...

Problems or Opportunities

If you resolve to become a problem solver, your chances of success in real estate investing will dramatically increase. The key question then becomes What is your tolerance for problems You see, opportunities are never easy. Problems, challenges, and setbacks almost always occur. Those who shy away from the hard work needed to embrace opportunities fail. Over the years I've had friends and acquaintances come to me wanting to partner with me on various real estate projects. Often they back out....

Rule No 1 Hold for Investment

Section 1031 applies only to property held for investment, but if you meet this rule you can sell any type of investment property and buy any other type of investment property. In other words you can sell a rental house and buy a duplex you could also buy an office building, an apartment building, a warehouse, or bare land. We have clients who sell bare land, which is not income producing, and then buy rental properties, such as apartment buildings, which do produce income. In other words, they...

Automated Marketing for Foreclosure and Pre Foreclosure Investing

As you may know, foreclosure is the legal process in which a lender sells or seizes a person's property to recover and repay the debt attached to that property. Foreclosure occurs when someone borrows money to buy real estate but cannot pay the agreed-upon monthly payments. I hope that you will agree with me that none of us wish hard times on anyone else, but when a foreclosure does occur, it creates an investment opportunity. Someone is eventually going to take advantage of it, so my...

Step No 5 ForminG Your TeAmThe Reai Key to Reai Estate Investing

At this point, you may be thinking that all of this is just too much work. As I was writing this, I had the same initial reaction. But remember that you don't have to do all of the work yourself. In fact, we like to say at Provision that the three most expensive words in the English language are, Do It Yourself. While some of you will enjoy the research and the details, others will be content with a little lower return and a lot less work. The answer to this is to build a Tax Lien Team. You can...