The TrustPoint Chronicles

Bill, congratulations on your opening of TFC 2.0. After reading your blog you are a go getter. I wish you and your family the best in your RE Investor life.

Today is the first day of the rest of your life.

Michelle W
"Great Expectations"

Updated my communication products this weekend by installing a new email program (I am trying Thunderbird for a couple months)as I was having too many problems with Outlook. Installed the new ACT! program to get control of my databases and updated my cell phone to the new Droid X. Spend most of Sunday installing apps for the phone as their are currently some really good ones for real estate and just daily use.One program that is important is to sync my computer calendar with my phone calendar. It works like a charm now that I am using the Google calendar program.

Sounds to me like you're heading down the right track and your life is going the way you want it to go. Definitely made the right decision of getting back into real estate. Hope to hear more from you.

To your success,
-Gabriel Do Carmo

Our new website that showcases our "Birddog" program is now operational at www.birddogprogram.com - We are currently looking for our Cincinnati, OH location but expect to roll the program out to our other focus states/cities in a few months.

We think our program is a fantastic program as it pays people that are willing to do some work....not just compile lists of homes. If you think you fit the bill, please visit our website and start the application process today.

Just completed the streamlining process of our Private Mortgage Program. As all investors know, you can never have enough money. The good part is that we have been doing this for a decade and know how to protect our client's investment. All funds are fully secured to the underlying property and the rates are pretty agressive in today's market. Go to www.wepayhighrates.com for more information.

I've been involved with real estate investing in some capacity for about 30 years. Even when I ran my multi-state public accounting firm, I still dabbled in buying and selling single family homes. Of course, life was good and the ups and downs in real estate weren't generally outside the parameters of the normal business cycle. Sure the late 80s caused a little pain, but I survived to live another day.

When I sold my accounting practice, I decided that I would focus on becoming a full time real estate investor. The timing was perfect. All the way until 2007 it was like printing our own money. I could buy a fantastic home in Florida for $290k and could sell it within a year for $425k. Those were the days. In fact, I met many like minded individuals and my firm grew proportionally. But we know the good times don't last forever. Unfortunately, when the music stopped this time, it came to a screeching halt.

We spent so much of our time in 2007 - 2009 plugging the leaks in our proverbial dam. With investments in some of the hottest spots in the country, we were getting our butts kicked daily. While we stabilized everything for us and our investors as we went into 2010, the normality never really returned...yet.

Sellers are convinced that the real estate market has declined 40%....except for their home. Banks have money to lend..... if you have a 825 FICO and are a owner occupant. Buyers are almost non existent.....unless there is a government program promoting free money. Foreclosures are running rampant (including the ones with the bad paperwork). Short sales are everywhere (and it takes too long to complete). Unemployment is still way too high and people need jobs to be comfortable to buy homes. Government doesn't have a single voice (or a clue) on what to do about the housing market.

Therefore, like Halloween, the real estate market has turned spooky every day. Is the real estate market growing or are we getting ready to enter a double dip. After all, manufacturing and the GDP don't look very strong from my vantage point. So what is a company to do? Quit? Put their head in the sand? Just go on a long vacation? I would suggest that you consider a course of action like ours.

We are being selective regarding our markets and buying in niches that we feel still are viable in those markets. We think we are at an inflection point in the vacation condo market in some high traffic tourist zones. We think the time is right to create student housing in some selected university towns. We believe it is timely to follow the mandates of the recalibration efforts of our military bases. We are buying packages of REO from small lenders because the discount is too appealing. We are building our investor base and working for (not just hoping for) a better tomorrow.

In this environment, a better tomorrow will come only to those people who are willing to work for it. Not like last time where everybody was dragged along. So be proactive with your life, your career and your profession and be a beacon of light. Your tomorrow will thank you.

We are in the process of updating our entire family of websites and making some other beneficial changes as well. One of those changes affects the manner in which we are sending out email for our quarterly newsletter and our periodic email describing unique investment opportunities.

Starting in 2011, we are only sending our Quarterly Newsletter and periodic opportunities to individuals that opt-in (and you can easily opt-out when you wish) to our mailing list. To become registered, we have set-up a temporary gateway which will allow you to enter your information. Please click on this link below to enter your information:

http://www.trustpointcorp.com/html/links.html

Once submitted, you will then get an email where you have to confirm your choice.

We are planning for the TrustPoint Financial Corp. 2.0 website launch in early 2011. There will be some exciting opportunities revealed in 2011 so we hope you will join our mailing list so you can receive the information first.

Thanks in advance to your support.

I am so glad that I came across this today. I didn't realize you had started a journal.

You are one of the people who has good experience and not necessarily a big head to go with it. I really like hearing your thoughts.

Karen

For your kind words. Of course, I'm not sure everybody would agree about the "big head" comment! LOL

Are you planning on opening a pipeline to private money lenders? If so, what states would you fund in? Your thoughts are always welcomed...Jan

I had the same question as Jan, Thanks

Jim Kendrick

Jan and James- I can't tip my hand right now as that would premature (and maybe illegal) as all of the framework is not in place yet. However, I can say that my different ideas should be able to help different segments of the DG audience in the near future, if things fall in place as I am working towards. Unfortunately, some things evolve slower than I would like, as there is only so much time in the day AND I am dependant on the completion of work from others. I was hoping for 4th quarter 2010 but it might be 1st quarter 2011, but I am doing my best to move the project along.

Bill, you're river runs deep! I enjoy your posts and appreciate your investing experiences. I signed up for your newsletter, sent you an email through your website re a deal of mine, and await to hear of your big funding program launch.

Talk soon and good luck with your launch!

Thanks for the update Bill, I'll be watching

Jim Kendrick

I am new here and don't know how much time I will spend here. I am taking life on a new journey.

As an Attorney, everything was all about business, all the time. Making money was never a problem as we seem to have that in common. The day my doctor said retire or die from heart issues, I chose life.

I realized today that I am on a new journey and it will be interesting to see where it takes me.

Thank you.

Keep me in the loop. Jeremy and I are in this for looooooong haul, and different avenues of financing are always of an interest to us as I am sure you have gone through in your years in the trenches. Let me know when the pieces are in place and we will do some phone time.

Thanks Bill.........Jan

I have received a large number of questions through my websites on why you should sign up. To that I answer respectfully: If you have to debate on subscribing to a newsletter in which you can easily unsubscribe; it goes a long way in underscoring why you can't make any money in real estate......you are just unable to pull the trigger. However, in the interest of fairness, I am posting the following reasons why you might want to subscribe:

Receiving our Quarterly Newsletter
Learning about some unique opportunities first
Special education on techniques
Access to our joint venturing
Invitation to attend planning sessions
And a whole lot of other things I cannot go into on a public forum

But if you sign up and then next year you think you are receiving zero benefits, you can just unsubscribe. No harm, no foul.

Hi Bill

I don't understand some people like that, they have no problem putting all their information on face book,or my space where they may end up with a whole host of problems. But something that might actually benefit them they are afraid, even though you are here everyday offering your advice for free!!!!

Jim Kendrick

Jim-
That's why you are successful. You see the difference. But quite honestly, I don't have the need to deal with the folks that are scared of their own shadow.

Bill

Thanks but wright now I'm fighting my way back up. I've been knocked down a few times, but I aways get back up. Usually a little better than the time before, a little stronger and a whole lot smarter.

So I am going to clime that mountain again, hopefully it will be easier this time.

Jim Kendrick

I, for one, want to hear what you have to say.

I always jump in with two feet--sometimes have to wade my way out, but why just live life safely? You miss a lot that way.

Karen

to see you start a journal! I can relate to a lot you are doing to restructure, that's for sure! I took a big hit as well with the downfall. I would like to get all my stuff coordinated to my phone, too! Do you have to have a droid or iphone to do that? How has your experience with Thunderbird gone (never even heard of it until now!) If I can get away from Microsoft products, its always a good thing!

I look forward to reading and following your journal! Best to you!

It is CERTAIN we will SUCCEED!

Tammie - I had switched over to a the Droid X when I originally wrote the part of the journal you refer to above. However, I went back to my Windows 6.5 phone shortly thereafter due to the fact that evrything (like tasks) wouldn't sync to a droid phone. After much research, I found there is no sane way to use Outlook and sync with Android. (And I won't even discuss the madness of trying to sync my ACT! database) My solution was to back-up everything on my computer and install a fresh copy of Windows 7 Ultimate. Now things work perfectly. When my contract at Verizon is up in May, I am going to upgrade to a Windows 7 phone too. FYI.

I only have a cheap Samsung Seek phone . So I won't be able to do anything with it! Maybe after I flip my property I can invest in a more business friendly cell phone. My first order is a GPS, as I get lost so easily!

I was wondering if you might know an answer to this. I know you have a background in accounting and taxes (heaven help me, I've had to do my taxes the last 2 years on my own YIKES!) If I am going to be regularly flipping properties I'v e heard it is better to get an S Corp than a LLC for that purpose. I want to give as little to the tax man as possible but rehabs are a whole new game for me. What are the advantages of the S Corp over the LLC for flippers? Also, are there any other legal tax loopholes?, such as particular types of trusts to use to avert taxes? What about 1031 exchanges when I flip my properties, buying another one right away using a 1031 exchange?

Sorry, I have so many questions! Take care!

I, always want to hear what you have to say.Thanks For All You Shared so far. I'm fighting my way up. I've been knocked down a few times, but I always get back up.In 2008 and 2009, I really got kicked off Mt EVEREST, Really tumbled to the Ground. Thank God The Earth Still consider accommodating me. Like You, I never Know What it is to give up. Always, I get up a little better than the time before, a little stronger and a much smarter.
I am climbing that mountain again, It is a lot easier this time.
I don't understand some people. they have no problem putting all their information on face book,or my Space where they may end up with a whole bundle of problems. But, something that will actually benefit them they are afraid, even though you are here everyday offering your advice for free.
Success, Success, See you at the top,
Best Regards,
VEronica.

Tammie-
Obviously, not knowing your particular in depth tax situation, I would be unable to give you tax advice. However, in a general sense, here are the answers to your questions. Please talk to your local tax person for how things go for your personally. An S Corp and an LLC are tax entities that both allow the flow of profit and loss items to your personal tax return. Personally, I have chosen multiple LLCs which flow into my C Corp. This allows me to place a wall around each property for legal reasons and then allows the profits/losses to combine in a single entity. It also allows me to easily joint venture with different investors in each property. In this manner, only the TrustPoint portion of the profit/loss flows to my company. For me, LLCs are a more efficient way to handle the real estate business instead of S Corps, but I know some people would rather use S Corps because they are unsure of how to use LLCs. For the most part, they are both treated the same way and give much of the same benefits. Just craft your overall strategy to what you are attempting to do and the direction your tax advisor gives. As for as loopholes are concerned, from my perspective, loopholes don't exist. Either the law allows you to do something or it doesn't. With that said, all different taxing entites have diffferent rules. LLCs, C Corps., S Corps, LLPs, Partnerships, Sole Props, Revocable Trusts, Irrevocable Trusts, etc. have been given different attributes from Congress and have different rules and benefits. There isn't enough space in this forum to delineate all of the differences, but please read http://www.irs.gov/newsroom/article/0,,id=183918,00.html as it describes the basics of the most common entities you can use. Next, you asked about trusts. There are special trusts that can help your tax situation, but probably not the type of trusts you would want to use for a real estate transaction to benefit you. The most common type of trust with tax benefits would be the charitable trust, but that changes the game of why you are in the real estate business. Lastly, as far as 1031 exchanges are concerned, that special section can be used for the sale and purchase of like kind real estate, but it has to be completed precisely and in a timely fashion. 1031 exchanges are usually used for multi-family, commercial and industrial properties as there is great benefit for tax deferral for larger projects. There is not the same cost effectiveness for small transactions because of the additional costs involved with managing the 1031 transaction. Hope the info helps.

Just thought I'd drop in to say hello and let you know that I find your journal to be very fascinating and quite a story!

I have noticed your comments on many of the threads I've visited or participated in. I quickly realized you to be a professional with words of advice that are given from your experiences and not done so "lightly". As a new investor; you have my utmost respect and any advice you may give in the future is more than welcomed from me.

Thanks for all you do for us here.

Just registered for the news letter. Send it my way....Jan

Thanks for all your great posts.

I'm in that awful state of CA (I chuckled when you made a comment about CA somewhere, but I can't remember the exact term you used). I appreciate the info so much! Best to you!

It is CERTAIN we will SUCCEED!

There is an old joke that goes like this:

Q: What do you call 10,000 bureaucrats on the bottom of the ocean?
A: A good start!

That adage has come true for me today as I received notification that my plans to begin offering specialized financing (transactional, HML, etc.) on a national basis has been delayed because of all of the red tape at the various state levels and the exorbitant state fees and bonding requirements. I was hoping to have this ready by the New Year, but it is not going to happen as I cannot humanly jump through all the hoops needed by then (We had already jumped through a large number of hoops but there is always ONE more rule that they seem to find for you to comply!) Since everything in some states are time sensitive, if you don’t have EVERYTHING completed by a certain due date, you have to start all over….and you have to repay all your fees again for the privilege of starting over. It is a wonder that our government functions at all. (Well, I feel that they don’t but that’s another story)

Anyway, it is amazing to me what you have to do to be able to lend your own money. I’m not talking about being a broker and making deals with other people’s money, but actually setting up your own company to be able to LEGALLY lend your own money across state lines and/or lending money to projects that you have no equity interest in. (Yes, we are researching the process of lending money to projects in which we own a percentage, but that isn’t where we wanted to go with our plans) Anyway, we will continue to work on this project, but I honestly don’t believe that we will have anything ready to go before Summer 2011. I am swamped with all the other things we are doing and can’t devote more time to it as it will just detract from other things we are doing.

However, I will be delivering a second post tonight which will include good news (well, at least for us!) as three of our projects are ahead of schedule, and I will be posting information regarding one of them tonight.