I Just Couldn't Help It

[Karen] Okay, I admit it. I couldn't help it. I saw this video and election day is around the corner but it is great because it doesn't matter who you vote for, you have to appreciate the spirit behind the video.

Have you seen the kids from the Ron Clark Academy singing "You Can Vote However You Like"? If not, turn up the speakers and check this out

By the way, get out and vote because

You Can Vote However You Like

The Rules Have Changed

[Karen] Yesterday, Rosa and I attended a real estate investor meeting. Although many of my friends and fellow investors are at different levels, I thought that I would post some information that is not good news in any way but something that as real estate investors, we need to know.

The rules for how many mortgages an investor can have has changed drastically. Two years ago when I began investing, the rule was that a person could have 10 personal mortgages before there would be a challenge from the bank. Even then, this could be worked out one way or another.

Times have changed and not for the best.

Granted, the subprime market is a serious issue. There are way too many who have been put into homes simply because they had a pulse. Now, the time has come and the bills are not being paid.

As is always the case, the government now wants to close the barn door. The problem arises because there are also those responsible individuals who have chosen real estate investing to provide affordable housing and supplement their incomes.

The new rule is that individuals can not have more than 4 mortgages and this is a problem. If you are an investor with more than 4 mortgages, the bank will simply say that's all folks. From our side, the investor side, that simply is not good enough.

Next time I post, I will point out a few options for life after 4 but for now, just remember that 4 is the new magic number.

Gifts from the Universe

[Shirley] I have a Spiritual Sister, who when asked, 'How d'ya feeling?' She always answers "I'm Blessed and Highly Favored". That's how I feel when I reflect on my experience at Big Apple Real Estate Investment Association (BA-REIA) and what it has done for me in the space of 1 short year. In terms of personal growth, it has been best thing to have happened to me, and continues to be. I love re-telling the story of how I found this particular REIA.

I had just finished reading "Who Moved My Cheese", and knew real estate would be the best avenue to seek out 'new' cheese as it were. A group of friends and I were planning to attend a workshop in Manhattan with Robert Kiyosaki. However, that weekend before the workshop, I had returned a rental car back to Enterprise, the driver who drove me back started asking questions about my neighborhood. It turned out he was a real estate agent, and he spoke candidly about the business, and I about wanting to be an investor. He told me it was very important that I joined a Real Estate Investment Association, and took out one of his business cards, the kind with his photo and wrote "Big Apple REIA" on the back. He suggested I go there, which I did and have never looked back.

The family welcome I received at that first general meeting was great, it was what I needed to get my can off the fence and finally do something about my dreams and goals. I signed up that very night, and within a week was on the bus tour to Baltimore, to educate, enjoy, and empower myself in the world of real estate investing. I've was overwhelmed by all that was happening around me -- meeting new people like myself, learning of opportunities, listening to educational tapes during the ride, asking questions, etc., it was great. On the way back from Baltimore, the conversations in the van was light, the President of Big Apple, Al Johnson asked how I found the REIA, I told him the name of the guy from the rental car company, but he'd never heard of him. Still I had no worries, I was happy to be there, because I could see my life taking a whole new direction.

Funny though, months later would I learned that no one within the REIA had ever seen this person who gave this card, and when I finally got around to call and thank this person, the receptionist said no one by that name worked there...

Blessed and Highly Favored!

Colin Powell Endorses Barack Obama

[Alison] A respectful, thoughtful and just plain great conversation with Colin Powell about the candidates, culminating in his endorsement of Barack Obama. Enjoy!

Sarah Palin on SNL Was So Funny

[Alison] HILARIOUS! I have now watched this clip about ten times, laughing every single time. Sarah Palin handled it with fairly good poise, although I noticed her lips thinned out significantly at times. Outstanding...

Selling That First House in North Philly

[Alison] I wanted to sell the North Philly house, the first property I ever bought, in the worst way but it felt like giving up and I was prideful. I did not want to admit that I made a mistake and needed to admit it, take my losses, and move on. Above is a picture of the first floor stripped down to be rehabbed. So I dithered. I put it up for sale on Craigslist and with my REIAs and did not get good offers so I pulled it down and looked for another solution. I did this twice, not wanting to give up, to fail. Every time I went, I had to round up a friend to go there with me because I was afraid. Not a good situation.

Finally I got serious, placing online ads and reaching out to my networks to sell the house. About 25 people looked at it and placed pitiful non-serious offers. Some included taking on the taxes and water bill, as I had. Others did not. I was starting to look at other solutions again (rehab, private lender, pay down the taxes and wait until the neighborhood improved and the house value went up).

In that moment an offer came in, still low, still taking a significant loss, but I could live with it. The prospective buyer promised to bring in a deposit to the lawyer liaison, then served up four days of excuses, including why he could not close on the date he promised. By this time, I was fed up and feeling like I was being played. I told the lawyer that the price was about to go up because the low price was contingent on a very fast, easy close. The day of the close came and went. The buyer failed to come through with the money. I took a day off work for nothing. I was VERY disappointed.

In the eleventh hour, at 5 pm on the day I was supposed to close, the lawyer called me to say that another buyer had surfaced, a man who was interested before but had made a lower, unacceptable offer. He told her he would come in with a deposit and firm offer and DID. Eureka! The new buyer asked the lawyer to pull title work on the property to make sure there were no surprises I had not already revealed. As far as I know, this could all be the lawyer's manipulations of my eagerness to sell. At the same time, I am convinced that only someone from the neighborhood can get that house sold. I don't like it but I don't care. God willing, we close this week. Keep your fingers crossed on my behalf, please.

Sad History of the First House I Bought

[Alison] I bought a single-family house (3 BR, 1 BA, 1015 sq. ft.) in August 2007 in North Philadelphia from a woman with 7 children, one in her arms. It was pretty cheap but there were tax liens and a water bill I agreed to take care of when I closed. An agreement of the sale was that the appliances would stay in the house (no stealing). The day after I became the owner, the previous owner's boyfriend broke in and out they walked with the water heater, a couple of ceiling fans, the electric panel and some other stuff. They even left the door open! So that was discouraging...

I stripped the house to rehab, hired a dumpster, discovered garbage sealed into the walls and welded security bars on many of the windows. The problem is that I am not comfortable in the neighborhood (small white woman in tough, mostly black, drug-infested neighborhood). I bought the house because I could financially and it was my first. In retrospect, not a good enough reason. I had an idealistic notion of making a nice home in this rough location for a family. After the stealing, I had to confront the fact that, during the rehab, supplies could very well walk out of the house. So it sat... and sat.

I made an agreement with the city to pay down the taxes and turn on the electric. I put in another water meter. I got an assessment on a rehab which was very high and with no specific figures for the different aspects of construction, just a total number, useless. So I have been stymied about what to do for over a year. Now the market is more difficult and it's a challenge to get out but I must.

The Second New Accountant

[Karen] The saga continues. I am very happy to announce that I have come full circle and have met the accountant that I should have been using in the first place. Why, you may ask, well I will tell you. About two years ago I was out of town attending a real estate investors meeting. I had been invited by my real estate agent and she introduced me to quite a few real estate professionals. Of the group, many were wholesalers but I also met Anthony, an attorney and Rich, a CPA. The attorney stood out in my mind because I needed an attorney but at the time, I was working with another accountant so unfortunately, Rich was out of site out of mind. Later on when I decided to replace the accountant that I had at the time, I thought of everyone except Rich from out of town.

Some may recall that I mentioned that Fred, the Loser from Harrison,(did I say that? Yes!) was not sure how to handle my particular form of asset protection. I had gone back to the out of attorney A few weeks ago when that highly recommended loser decided that after going back and forth for months discussing my taxes that he now did not have time to actually do my taxes. At this point, I called Anthony and asked him for a recommendation and lo and behold, he points me back to Rich. We have since sat down and I am pleased to report that we are moving ahead. Unfortunately, not full steam, but that is because of me. Can you believe I still can't find some documents and don't even get me started on why I haven't completed my spreadsheet.

Fortunately, this time it is me. Yes, Rich is waiting for me. This time it is all on me.

Where is everybody?

[Karen] Thinking back, I begin to wonder, where did all the people go that were in my new member orientation class at the real estate investor association? We were all so excited and ready to learn. The class ended and we moved on. Some went back to watching TV. After all, it is more fun and much easier. Some people moved on to learn even more and are still professional real estate students traveling from one boot camp and workshop to another and never stopping to actually do a deal. There are people like this in every field of interest. Think about your friend who keeps signing up at the gym or buying the latest and greatest piece of exercise equipment only to use the treadmill as a clothes hanger. Of course, there are still others who are trying every day to take their first step to the investor side. Some know what I mean, it is the step where you go from theory to a real life situation where you sign your name on the dotted line and suddenly you are a real estate investor. It doesn't matter if the person is going to assign properties, wholesale, property manage, etc, it all just takes the first step.

I for one think it feels really good and can't wait to see more and more take the step from employee to investor, no matter how long it takes, it is worth the ride. We know, there is never a point of no return so what's holding us back? We owe it to ourselves to try something new. The government wants us to start businesses, so why not get into real estate. If necessary, we can sell the house and go right back to watching TV as if it never happened. This is all just another form of life's education. We should all try to learn something new every day and if it just happens to be something that can build wealth, why not. We just have to remember that sometimes we just have to take that step away from the comfort zone and take a chance in life.

A New Kind of Life

[Karen} Someone asked me what I gained from my volunteer service with the real estate investor group and I had to think past the usual "it feels good to give" and when I did I realized how much I have learned. I really had started to take it for granted because the truth is that it does feel good to give a hand to those trying their hand at investing.

In the last two years I have met some extraordinary individuals, a small group with which I am involved on a regular basis and many great people who have come and gone. As I have learned, real estate investing has a great deal to do with relationships. You have to get out an network. You might walk into an event and meet someone new only to find a year later that you have partnered with each other on that four family property that you just could not pass up but could not swing on your own.

I know I said that it is work. After all, real estate investing isn't for everyone. It is hard work. As with any type of business, for the most part, it is harder to get up every day and work for yourself than it is to get up and go to work making someone else rich but isn't that the whole point. If you work for yourself, aren't you worth it? For me, I think about what I hear from those going to work every day and what I usually hear is that they are comfortable. I was too, to a point. Fortunately I have seen the light and I don't want to go back. A friend asked me, will I go back to the corporate arena and I can easily say, not if I can help it. There are no guarantees but I love it much better, even with all of the work, on the other side of, dare I say, Robert Kiyosaki's Cashflow Quadrant. I have tried employee for way too long, I want to try my hand for just as long and an investor and business owner. To me, a job is a place to kill time until you can leave and go do things that you really want to do for you and your family. I don't want to go back. If I click my heels, I guarantee, it won't take me back to a 9 to 5 job.

As a real estate investor, I have gone through my fair share of tenant issues. Usually, it comes back to the only real issue, which is where is the rent. Although I don't get the calls from tenants in the middle of the night, I have had a potential tenant call my office on a Sunday night at 11:00 PM looking for a place to live. Not exactly a broken toilet bowl but...I guess the early bird catches the worm. Or was she really late?

Freedom into Wealth

[Karen} I can't wait. I know that there will be a time when my time will be just that, mine. Right now, I look back at the last few years and think about all of the time that I spent volunteering with my local real estate investor group. I had a ball, I really did but I think that the time has come to take a step back and put more of what I have learned into action. I know it's time. I was buying properties and then stopped. Something is definitely wrong. I know there is too much on my plate and as has already been posted on this blog by one of my colleagues, it is time to stop, regroup and spend more time on me.

It isn't that I don't have enough time in the day, I think that it is more that there are too many things that need to be put on the back burner. Everything can not be that important or at least that is what I have to start telling myself. The houses are there just waiting to be picked up. The banks will wise up and this credit crunch will eventually cease to be an issue.

After all, as an investor, whether equity or real estate, we can’t build a strong house of wealth if we don’t start picking up some more bricks.

Fear and Hate As Political Strategy

[Alison} Watching TV, I am appalled to see the Ayers connection and Arab, Muslim characterizations dominating McCain's campaign. The Republican tactic of dusting up fear and hate to try to win again rears its ugly head. I can only hope Americans have become more interested in the issues this time around. The question is who can get the job of President done best, not all this other garbage. Nobody wins this way.

In this country, we need someone who can bring people together, not drive them apart. That's Obama. These divisive tactics are despicable. McCain is now backtracking to mend the divide which is honorable of him. He may pay from the conservative right. Good for him, anyway.

Ebay Anyone?

It seems like forever since I last posted anything here, for the simple reason that the time and energy it takes to get my family (all of 'TWO') in agreement to actually and physically do something in the house leaves me completely depleted of all energy. Besides, I view this blog as a place where I share with my comrades the baby steps of I've made in my goals and accomplishments, you know -- forwards and onwards, not giant steps backwards.

Initially, the proposition to detox the basement was met with the usual groans and moans, all of which I had expected, but I was armed Ladies, with pictures, ideas and possibilities this unused space of 13 years held, and welcomed all their suggestions. "A 42" flat-screen would really go great down there", says Hubby; "so would one of those pullout couches for sleepovers", my daughter chimes in. Great they were on-board. Still it would take several failed weekend attempts, before Hubby and I actually descended into the basement, leaving my daughter at the top of the stairs to hand off those precious pieces we'd keep. We were so surprised at the amount of 'stuff' that was down there, it took us a few minutes to take it all in, undeterred, we started under the stairs, and uncovered a red Radio Flyer go-cart, a snow-sled that resembles the one from the Orson Welles movie "Citizen Kane" -- Rosebud; An old wire basket that held eggs in its former life, a Milk Maiden Can in pretty good condition, three old wooden Printer's Boxes all these were buried beneath seven picnic lounge chairs, picnic tables, an antique mahogany bed headboard, a Shabby Chic window framed mirror, and several pieces of wood that once held the promise of an ambitious project. Hubby relished this time recalling how most of these items made their way into our household by my say-so, and since this was one of those rare occasion where he is absolutely right, I let him have his fun. We had been detoxing beneath the stairs for almost two hours, when Hubby finds a large oval gold-leafed mirror (I swear that was there when we bought the house), he stops laughing for minute "You know, I bet we've got enough stuff here to help fund our 401K!"

Ha! You see Ladies, I know what I'm doing -- Craigslist, Ebay here I come!!

Gospel Singing Joy

[Alison] For 10 years, I sang in a gospel choir. In fact, for 3 years, I sang in two of them. I had a chance to sing at places like Carnegie Hall and the Apollo Theater and churches in Bedford Stuyvesant and the Bronx. What I most love about singing is standing in front, looking at everybody as many come in with life dragging them down, revealed in their faces and postures. All the thoughts of money, jobs, family, children, school, home and other stresses flicker through their heads as distractions from being present.

We begin to sing songs of uplifting joy, love, hope, peace and, looking out, I can see the faces lighten up. The lines drop away. Everything, all the worries, are still there but, for a moment, we are linked in community and in love so tangible that it rises like waves all around us. Some places we went, I was one of three white people in the choir and young children pointed and stared. Both choirs I sang with were very diverse with people from lots of different backgrounds, races and religions.

In 2002, we sang "Bridge Over Troubled Water" as one of the choirs to rededicate the shell by the World Financial Center with light and song. My heart soared and tears pricked in my eyes. I was smiling so wide my mouth hurt. Seeking joy in all things and sharing it with others is my key to happiness. Remember...

Professionals

[Karen] This is an update to my post from September 10th. I had met Fred for the first time that day at his office where he does the books for a computer sales company in Harrison. I had accepted the recommendation because where he works, he supposedly works for a real estate developer and so I thought he was capable of handling anything that I could possibly bring to him. Prior to April 15th, we had spoken on several occasions and he had filed an extension for me. At this point when we were going to finally meet, it was time to get down to serious business to be ready to make the October 15th deadline.

Well, let me first reiterate that he was recommended by a very, very good friend. For this reason, I waited a suitable amount of time before I posted my reaction to what occurred on September 30th, which is in fact this post. If I seem calm, I am now. Of course, you or Fred would not have wanted to be in my office on September 30th but now, I have had the time to calm down.

I will take you back a moment and remind you that my first and last appointment with Fred had concluded by Fred taking some important documents from me in an effort to clarify how one aspect of my taxes should be handled. Yes, I know, I should have ran at that point but again, Fred was highly recommended. Also, my companies investment properties are out of state and not every accountant would be expected to know the details of what I brought for him to decipher. At least that is what I told myself. In hindsight, I think that the poor man was dazed, confused and overwhelmed. Or maybe he was just dazed, confused and dim. I drift.

When we ended our first meeting on September 9th, Fred told me that he had to find out how to handle my particular situation but that he knew exactly who to speak to and that he would call me. I should have ran but when you have so little time, you make allowances. My mistake going forward was believing him and expecting him to behave in a professional manner. I was wrong in my assumption, dreadfully wrong.

On September 29th, almost three weeks later, I had an appointment at another company in Harrison and although I wanted to call Fred and maybe stop by for a moment while I was in town, my appointment ran late and so I had to leave and proceed directly to another meeting. After all, we sat down on September 9th and he said that he was going to call when he had answers, I thought that he just wasn't ready but that everything would be just fine.

Should I have assumed that he would not live up to his word on something so simple as a return call? On September 30th, I called his office and when he picked up the phone he led with "I was going to call you". Actually, yes, he had been like this since before April, never ever actually calling when he said that he was going to call but again, his work was highly recommended and in my mind, I can see it will take a little work just dealing with him but he is supposed to be very good. As he spoke, it was with a weak, muttering tone and so I knew I was in trouble. He proceeded to hem and haw and beat around the bush until he finally said what anyone in my position would never have expected or wanted to hear. "I have no time to do your taxes." Can you believe it? Among other questions, one of my most obvious was when was he planning to call and tell me. After all, half of the time we had been communicating since before he filed my extension I was "waiting" for him to call when he was ready.

As I sat on the other end of the phone listening to him mumble and stammer as he attempted to answer my questions on how he could do this, I could only think of what a terrible business man Fred turned out to be. Fred mailed my documents, which I received a couple days later. Any decency would have brought him to the realization that he should have sent them overnight but again, what could I possibly expect from him at this point and I knew that I could not go to pick them up the next day so this was the next best alternative. Would I have wanted to see him anyway? I think not.

What has this reinforced in me? To remain a professional in my word and deed. To never treat anyone in this manner. If I need to simplify my business and personal life so that I can always do what I say when I say that I will, that is what I need to do. There is a saying that we have all heard, treat others as you would want to be treated. We may not be able to keep the "Fred's" from crossing our paths but at least if we are professional in manner, there will not be someone posting a note saying that we are the "Fred" who crossed their path.

Decluttering Our Apartment

[Alison] Entropy rules in my house. It's amazing how much stuff can fit in 600 square feet. I hired my sister to help me clean and release things. I had gifts from over 30 years ago that I never even liked, like a white terrycloth robe my brothers and I stole from the Hassler in Rome when we were children. My father was furious when four robes turned up on his hotel bill but by then we were back in NYC and it was too late. Truthfully, it was pretty ratty by 2008.

My sister said, "No, you don't have to keep that." I'm very grateful she didn't laugh hysterically at some of the things we turned up.

I notice that each thing I let go, each area that gets really clean, makes me feel lighter. Still I get to a certain point and then stop cold. Things build up again. I struggle on again with the cleaning. I don't know if I am afraid to finish because it would be such an unfamiliar state for my home. At the same time, I don't like feeling uncomfortable having people over and, when I walk inside, I am immediately exhausted. I know I have to resolve this but I don't know how. My husband doesn't care about it and that makes the work even harder. If my labor was appreciated, I think it would make a difference. Tomorrow was my promise to my women entrepreneurs' group but I'm not going to make it. I recommit again until I am finished... forward into the breach. Oy vey!

A Knot In My Stomach

[Alison] I was dismayed when Sarah Palin made a decent showing during the vice presidential debate although her colloquialisms made me repeatedly cringe. I woke up this morning with such a knot in my stomach. What was causing it, a sore back, thinking about too little work, bills? No, Sarah Palin as VP candidate with John McCain. I told my husband, "If that ticket wins, we're moving to Australia." He thought I was overreacting but I don't think so.

She looks to me like a female George W. Bush and these last eight years have been VERY painful in so many ways - politically, economically, socially, globally, environmentally... Here are some of the similarities:
Palin: unwillingness to think about issues (What Bush doctrine? Georgia?).
Bush: went into Iraq against Colin Powell's advice and all the evidence that Iraq had NOTHING to do with 9/11, no weapons of mass destruction.

Palin: cronyism (putting friends at high salaries in political office, hiring for loyalty instead of competence, firing everyone from the previous administration).
Bush: remember Brownie and Katrina and LOTS of other conflict of interest appointments.

Palin: cluelessness about people, the world, the economy, pretty much everything.
Bush: completely disconnected from reality, judging from his comments.

Palin: creating a protective political environment where nobody disagrees with her opinion (extremely scary trait in potential world leader).
Bush: Ask Colin Powell or Valerie Plame, among others.

Palin: no engagement or interest in anything outside of the USA (no passport at 44 until last year).
Bush: plummeted world opinion about the US to an all-time low internationally and appointed unacceptable UN representative in a sly way, during a recess.

I could go on as I differ in my values from Sarah Palin in too many ways to count. She is probably a nice enough woman and clearly spunky BUT TOTALLY UNQUALIFIED TO BE EVEN A VICE PRESIDENTIAL CANDIDATE IN THIS ELECTION. Sorry but that's really how I feel. Finally, I am so insulted as a woman by this choice. With all the extraordinarily competent women in politics today, that McCain chose Sarah Palin, who isn't (in my opinion) just blows my mind. I will do anything in my power to see Obama and Biden win in November because the world McCain and Palin would create is too horrible to even consider. OK, rant over for now.

We don't usually talk politics in my entrepreneur women's group so please forgive me if you, my friends and colleagues, disagree. Freedom of speech is an American right (1st Amendment) that Sarah Palin would not support as VP (judging from her attempt to ban books from the library in her town).

I Finally Made It

[Sherba] Friday October 3rd was the day I and my brother were to fly to Dominica to spend 2 weeks with our father, as he has retired there. We were to leave JFK at around 6:55 am but we left a little after 7 am. Our connecting flight in San Juan, Puerto Rico was to leave at 11:35 am. We landed in San Juan at around 11:10 am enough time to catch, I thought our connecting flight even though I was nervous we left late from JFK. When we arrived at the counter we were told the flight was closed. I could not believe it. We made it in enough time.

People were furious. There was yelling banging, especially when the American Airline lady told one person that they were getting a $10 voucher for meals, then it really exploded. She stated she would call the police, a man yelled "call the police", "call the police" she did and left with the attitude I'm don't need to take this. I was truly frustrated.

I went to baggage claim to see if I could get my bag and was told there were no more bags for flight #769. I was so upset. Now I have no clothes. This has never happened to me before and I was...I can't put it into words. When I came back there was the policeman, and a few American Airline workers helping us with food vouchers, $7 for lunch and $10 for dinner. My brother and I were confirmed for Sunday, but this was Friday. The gentleman said for us to go get on stand by for the next day, Saturday and that with his experience not to worry we would probably get on. I told him that my bag was not in baggage claim, he said it is probably there go check again. I did check again and again it was not there. I said let me try baggage services when the gentleman called they found my bag, where was it? Sooooooooooooooooooooo frustrating you have no idea.

We did get on the plane, thank God. If things could not get worse as I am going through immigration after we landed in Dominica, and they are checking my papers and passport ( I have a Dominican passport) the gentleman tells me that I will not be able to get out of the country with the passport I have. I said "are you kidding me?" , he said "no, there is a new passport that supercedes this one and you will have to apply for a new passport" and he gave me an application. My father, who did not tell me about this, said that this went into effect as of February of this year.

I get to my father's house and somebody is there that is not supposed to be there because I made it very clear to my father, over and over again, that we, my brother and I, wanted to have the 2 weeks with just the 3 of us, but this is another story. What a start to my 2 week vacation.

WHEN You Pay the Mortgage Matters

[Alison] I was crunched financially on paying my two Syracuse mortgages in September so I paid one mortgage and called up the bank to ask if they could refrain from reporting a 30-day late if I got the second mortgage in within a week. Some of my tenants have not been paying on time and so I've been having trouble getting it done. No sympathy!

"Sorry! It's the law. We have to report it." the bank official on the phone told me. I said that policy did not give me much incentive to race to get this payment made faster.

Now this month, October, I will have paid my two mortgages ON TIME for a year. I was unwilling to give that record up so I raced around and took money I had wanted to use for other purposes (health care, phone/internet/cable, water bill etc.) to cover that second mortgage. I'm trying to sell one of my houses for greater liquidity but the market is so bad, it has not been easy. Once I have made on-time mortgage payments for two years, I will be considered a seasoned investor with added credibility.

Anyway, the bank official told me that the bank has a 5-point system for the payment of mortgages that I did not know about. If the mortgage is paid by the 1st of the month, that's 1 point. Between the 1st and 15th is 2 and 3 points. After the 15th until the last day of the month is 4 points and a late penalty. I was aware of the penalty. After the last day of the month, the next month is also due so that is a 5-point internal bank rating, both months plus one month's penalty are owed, and the bank reports the 30-day late to the three credit bureaus (Experian, TransUnion & Equifax) which causes the individual's FICO score to drop. This ding on the credit score record lasts seven years and affects applying for favorable mortgage rates, buying a car, getting a job and a host of other unpleasant consequences. I don't know how this 1, 2, 3, 4, 5 internal bank track affects future financing with this bank or any another lender, although I'm certain it does somehow. The following month, this 1 to 5 rating system begins again, each and every month.

Wild, right? Do you know what your bank's policies are? What do these numbers mean in real life (higher or lower interest rate offers, internal coding as a bad, fair, good, great client, who knows what else)? What are the penalties exactly? Are there rewards at 1 and 2, and what are those? Do banks and other lenders share this information with each other? You may want to find out for yourself on your own mortgages. I feel like this policy is a stacked deck for the bank against the property owner since it isn't transparent. However, if the deck is stacked against me, it's even more vital to know the rules we are playing by. Knowledge gives us greater power to make informed choices as individuals, families and investors, and to be aware of future consequences. Let the good times roll!

Friendship

[Karen] Today was a very long day. A group of people and I began the dismantling of an office that we had quickly come to know as home. It was a very long grueling day. There were some people from this group, some others from the real estate investor association and then others, who were simply trying to lend a helping hand to those in need.

This post came about because I was so touched by a couple members from this group that came by and lent a hand. Although we were short handed most of the day, Lynn and Rosa stepped in to help get the job done. The fact is that I know that this group is comprised of a very special group of people and that had you all had the knowledge of the event and could have been there, you would have, because you all are very special

Lynn had actually mentioned the Women Entrepreneurs group early on in the day and in fact, there were not only us three, but also Natalie, who although invited to join, has had to decline to be a member due to scheduling challenges but also Michelle, who we are patiently leaving the light on for in hopes to one day see her come through our meeting door.

Lynn, Rosa, Natalie and Michelle, I want to say thank you to you all. This is not because we were the only people there, for we know that this is farthest from the truth. What would we have done without Michael, Tony, Doug, Donald and Natalie's friend Snapper. This is because you are the movers and shakers who provided the means to make it work and get us through the day. We all were very blessed that when there was a need and a call, there was a response by some very special individuals.

To take this a step further, I wanted to say a simple but heartfelt thank you to those very special people that I have met as a result of my foray into the world of real estate investing. I met you all as I joined the real estate investor association in an effort to build financial wealth and yet in the interim, I have gained much more. Friends.

Cleaning out before year end

(Lynn) Last time I spoke about time management. I have realized that one of the main reasons I do not have enough time is because I am doing too many things. And 90% of them do not bring in any money. So I have decided to get rid of the activities that do not help my family or bring us any money. And let me tell you I feel GREAT!!!!!

Getting rid of the dead weight in your life is hard, but so rewarding. And with the few activities I have gotten rid of, I can tell you I will be getting rid of some more pretty soon. I say why wait until the beginning for the year clean out our closets or change things in our life, DO IT NOW. DON'T WASTE TIME. ACT NOW BEFORE YOU GO CRAZY!!!