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Relax and Recharge in Your Mental Hobby Shop

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Image from Pixabay

By Dan Harkey

Most people have a place they go to or an activity they engage in that helps them move into peacefulness, serenity, and resolve. They can spend time happily away from exterior societal pressures. I refer to that state of being as their Mental Hobby Shop, which will help them to exclude all the extraneous life pressures and extraneous violations of their sovereignty. Each of us needs to define where our mental hobby shop is located and conscientiously try to spend more valuable time there.

Here are a few examples of preferred hobby shops:

Image from Pixabay

  • Garage tinkering: Time spent in the garage with things like bicycles, cars, or motorcycles. There is nothing like washing and waxing a bike to take you into another world. How about repairing something, organizing useless stuff, or inventing something useful?
  • Golf and active sports: Time spent on a golf course, tennis court, or workout facility. How about riding horses or cruising on a street bicycle or mountain bike?
  • Personal activities: Time spent with individual activities such as painting, scrapbooking, reading a good novel or playing a musical instrument.
  • Family: Time spent with family and pets at a picnic or outing where life’s daily pressures are minimal, and enjoyment is paramount.
  • Outdoors: Time spent walking on a trail, park, or beach. Being outdoors has excellent therapeutic value. Getting close to nature is always rewarding. I have enjoyed walking in the rain on the beach with a raincoat.
  • Vacations: Great time to explore, whether at local parks, national parks, or leaving on a jet plane. How about a local harbor getaway or an extended cruise ship vacation?
  • Camping retreats: Time spent camping, with a BBQ, or RV with friends and family.
  • Tranquility: Reading books, listening to tapes or videos that reflect positive thoughts rather than anguish, disgust, or pain. There is no need for intensive inquiry or into searching for meaning. That includes avoiding watching news that portrays our circumstance as an inevitable Armageddon. Just positive thoughts!
  • You are helping others: Volunteering for various activities that help others without expecting a financial return.

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My Mental Hobby Shop consists of the activities.

  1. My garage: Time spent tinkering in my garage, maybe even having a beer, and listening to classic rock or country music.
  2. Out on the road: Time spent with my motorcycles and electric bicycle, washing, waxing, checking the tire pressure, or riding out on the road. Just head out on the highway, looking for adventure. Where have I heard that before? Much like being in the movie, Born to Be Wild, only with much less wild at my age. I may head out for a destination to meet my buddies who belong to the 4-B Club. 4-B stands for bikes, buddies, beer, burgers, and discussing buddy things.
  3. Walking: on the beach, around the harbor, through a delightful park, or around the neighborhood. 3 to 4 miles is my goal. I get sunshine, vitamin d, exercise, a nice breeze, and peace of mind. After a shower, I feel great.

Image from Pexels

Identify where your Mental Hoppy Shop exists and conscientiously spend more time there. Life will be more rewarding where your state of happiness dwells. Happiness creates renewed energy and motivation, stimulates creative thought, and feeds overall physical and emotional health. The key is to detach from work-related issues and societal pressures and stop reading and listening to mainstream news propaganda.

News media outlets spew news full of sensationalism followed by a barrage of advertisements. The news is designed to sell you something and to create strife about how terrible everything is. Of every one-half hour segment that someone watches mainstream news, only about thirteen minutes is considered news, although the content is always filtered through an ideological kaleidoscope. Then ad nauseam advertising segments follow for about seventeen minutes.

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Within mainstream news, the commentators and the guest experts consistently deliver the narrative as subscribed to by the media company. FOX, MSNBC, AND CNN present material from an opposite perspective. Experts will work within an approved framework for acceptance and consensus-building, rather than seeking truth. Experts will act to ensure job security, cultivate kindred relationships, expand their careers, and seek more notoriety.

Little independent critical thinking and unbiased scientific analysis can be found in the mainstream media. Those who want actual and truthful content can find alternative news sites and information sources online.

Yes, turn off the toxic tube and cell phone! Yes, turning off is difficult to do for a few of us who are extroverted, outgoing and task oriented. Those folks tend to be direct, decisive, driven and demanding. But they can also become addicted to staying connected and watching 24/7 biased propaganda news.

This article is intended for educational purposes only and is not a solicitation.

© Dan Harkey. This material’s unauthorized use or duplication without express and written permission from this author or owner is strictly prohibited. The article may be used in marketing efforts, provided that full and clear credit is given to Dan Harkey. The credit displayed when you forward any article must include Dan Harkey, Business & Finance consultant. You are not authorized to modify the articles title or the content.

This article is an overview for a general educational purpose only. The information presented should not be relied upon without the advice of counsel.

Dan Harkey is a contributing author to Weekly Real Estate News and is a Business & Financial Consultant. He can be contacted at 949-533-8315 or [email protected].

Real Estate Money Finding Summit

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Dear Fellow Investor,

I wanted to personally invite you to our next live training event titled “The Real Estate Money-Finding Summit”.

You can RSVP at:
https://bit.ly/RE-Money-Finding-Summit-202

Over 16 of the world’s greatest real estate investors and experts are coming together to share their insider secrets for getting all the loans, lines of credit, government grants/credits, and private money you’ll ever need to fund all your deals.

No serious real estate entrepreneur should miss this…

Hope you can make it!

Bill Guting

Since 2010, REIWealthmag.com has assisted top companies expand their visibility and grow their business, contact us for a complimentary marketing session. Investors, do you have questions about real estate or need capital for your deals? CLICK HERE.

Breaking News: Proposed CA Bill Would Impose 25% Gain Tax, Plus Time Restrictions on House Flippers

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Image from Pixabay

By Stephanie Mojica

Alleging that house flipping is preventing average people from buying a home, a California Assembly member has proposed a law that would require short-term real estate investors to pay a 25% gain tax, according to CBS 8.

If passed, the California Housing Speculation Act would start on January 1, 2023. The Assembly member behind the bill is Democrat Chris Ward from San Diego County’s 78th District.

There is an “influx of short-term investors trying to get into the market, outbid San Diegans and Californians with all-cash offers, and drive the prices up for everyone,” Ward told CBS 8.

The Assembly member also cited concerns with California housing shortages making it difficult for people to find affordable housing.

Norm Miller, a real estate professor at the University of California, San Diego, said even if the law passes the odds are still favorable for real estate investors.

Investors will still get “unlimited tax write offs from the mortgage interest and the property taxes,” Miller said. “[They’ll] also get depreciation, which is something an owner does not get on their own personal residence.”

To voice your opinion on Chris Ward’s bill, call his office at 619-645-3090. Visit https://findyourrep.legislature.ca.gov to find the contact information for your representative and call their office as well.

Higher Chicago Foreclosure Activity Not A Problem

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Image from Pixabay

By Gary Lucido

I’m going to stay out on this limb that I crawled out on but apparently I’m not alone out there. According to ATTOM Data Solutions February Foreclosure Market Report the nation saw a 129% increase in foreclosure activity from a year ago. However, that percentage is kinda meaningless given that foreclosures were basically shut down last year. The graph below puts this dynamic in perspective for Chicago where there was a 328% increase over last year and a 29% increase over January. As you can see activity is probably no higher than it would have been had the pandemic never happened. As Rick Sharga, executive vice president at RealtyTrac which is owned by ATTOM, said:

This isn’t an indication of economic turmoil, or of weakness in the housing market; it’s simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially-impacted homeowners from defaulting.

In this foreclosure report both the Chicago metro area and Illinois got honorable mention for being among the top 5 metro areas and states respectively with high foreclosure rates. Of course, that’s because the rest of the country’s housing markets are so damn strong right now.

After a dramatic plunge following the pandemic foreclosure moratorium Chicago foreclosure activity has just now begun to resurge now that the moratorium has ended.[/caption] One of the reasons for our optimism is that delinquencies have dropped down to pre-pandemic lows as shown in this graph from Black Knight’s January Mortgage Monitor Report. That shouldn’t be much of a surprise given the strength of the job and housing market.

The nation’s mortgage delinquency rate continues to improve and seems to have recovered from the pandemic.

Chicago Shadow Inventory

The number of homes that are in the foreclosure process is holding pretty steady with only a 71 unit increase over last month. This pipeline of homes that might find themselves on the market sometime soon is ever so slowly trending up but it remains extremely low by historical standards.

The number of homes in foreclosure in Chicago declined with the moratorium during the pandemic and doesn’t seem to be rising since.

Gary Lucido is the President of Lucid Realty, the Chicago area’s full service real estate brokerage that offers home buyer rebates and discount commissions. If you want to keep up to date on the Chicago real estate market or get an insider’s view of the seamy underbelly of the real estate industry you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.

Multiple Properties in One Land Trust

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Image from Pixabay

By Randy Hughes, Mr. Land Trust

Many investors think, “I’ll put multiple properties into one Land Trust! That should be easy.” They could assume that managing one trust will be a breeze compared to managing multiple Land Trusts. They may also think that there is no downside.

Investors who think like this have not thought their plan through. The reverse can be the case. Managing multiple properties in one Land Trust is a snap (especially when you use my exclusive Trust Tracker, included with my Basic Course). It’s having all your properties in one Land Trust, or one basket as I like to say, that things can get tough, very tough, fast.

Welcome to the New Year

Image from Pixabay

Before I continue, permit me to point out that I started writing about Trust Trusts twenty-two years ago. My students requested it. They wanted to learn more about the scores of benefits of using a trust to hold title to their properties.

When I speak in front of an audience or teach a Land Trusts Made Simple® class, the question of whether to hold multiple properties in one Land Trust is sure to come up. My basic answer is “you can hold multiple properties in one trust, but I do not suggest you do that.” Why not? Read on my fellow real estate investors.

Here’s Why Not

First, there is a basic principle to asset protection that says, “keep all assets separated.” This applies to all types of investments (cash, stocks, bonds, real estate, precious metals, etc.). The theory behind this is that if liability occurs against one of your assets, it will not directly affect all your other assets. For example, if you titled ten single-family rental houses in one LLC and you had an uninsured loss or legal claim against the property/owner, any lien or judgment against the owner/LLC would tie up ALL the properties inside the LLC. Dumb, huh?

Image from Pixabay

However, if you hold the title to each of those ten rental houses in separate Land Trusts and a contingency-fee attorney and their deadbeat client attack one of them, any potential judgment would be rendered against the property itself and there would be no effect on your nine other properties. Therefore, the smart real estate investor puts each property into its own separate Land Trust. I encourage investors to take asset protection a step further by making the Beneficiary of the trusts one or more LLCs.

Hunting Expedition

There’s another benefit to NOT putting multiple properties into one Land Trust. If a subpoena is issued to the Trustee in search of information about the trust and its assets, the subpoena would apply to ALL properties inside the trust (not just the property involved in the litigation)! Double dumb, huh?

Furthermore, any assignments of Beneficial Interest or contingent beneficiary provisions in your trust will apply to all properties held in that trust. This removes one of the best reasons to use a Land Trust. For example, if you wanted to sell one property on an installment contract, you could not do it effectively when holding more than one property in one trust.

It does not cost anything to form a trust. Therefore, it makes sense to always put each property into its own, separate trust.

I encourage you to learn more by going to my FREE online training at www.landtrustwebinar.com/411 and text the word “reasons” to 206-203-2005 for my free booklet, Reasons to Use a Land Trust. You can also reach me the old-fashioned way by calling me at 217-355-1281. (I actually answer my own phone, unlike most other businesses in America today!)

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Did Biden’s Tax Proposal End Up Affecting 1031 Exchanges?

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Image from Pixabay

By Clinton Lu, TFS Properties

Earlier this spring, Biden proposed a number of tax law changes in regards to his Build Back Better program. Aimed at freeing up more money for the little guy, the program divided itself into various parts, one of which was the American Rescue Plan. Within this plan, Biden proposed to do away with the benefits received by performing a 1031 exchange, also known as a “like-kind” exchange, but was this portion of his proposal signed into law?

Section 1031 Like-Kind Exchanges

The IRS Code is divided into sections, one of which details the tax break individuals can take advantage of when it comes to the capital gains taxed on real estate. This particular section, allows investors to roll their profits from a real estate sale into the purchase of another property of the same, or like, type. In doing so, investors defer the capital gains tax that they would typically incur, and are able to reinvest all of the money from their sold property (downleg) into different investment property or properties (upleg.)

Possible Effects of Biden’s Tax Proposal

While it might sound like a good idea on paper, increasing taxes on real estate profits has serious consequences. “The White house emphasizes that its tax increases would affect only the top 1% to 2% of individual taxpayers,” but doing away with 1031 Exchanges would seriously impact both big AND small investors alike.

Image from Pixabay

Both big and small investors can benefit from performing a 1031 Exchange and according to the Congressional Joint Committee on Taxation, investors could save over $40 billion in taxes in the next three to four years if it were to remain in place. That’s money that could—and in many cases, will—be reinvested into other real estate properties and further drive the economy.

This cycle within the real estate industry was so important that the Mortgage Bankers Association and the National Association of Realtors appealed the proposal to halt the exchange. As a result, it seems their efforts, as well as the voices of many others, prevailed.

The Final Verdict

Many feared that ending Section 1031 exchange benefits would have a profound effect on the real estate market. However, this particular part of Biden’s tax proposal was not signed into law. Investors can still defer their taxes on capital gains through a 1031 Exchange and preserve their capital while doing so.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

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