Estate Planning USA.com

Normally, what is rich people need in their total financial plan? is it more in insurance? or investment in funds? Why they still need insurance if they really have enough money to pay their medical bill, estate duty etc. Do they need to invest in fund through fund house? Please kindly provide a practical idea that I can serve high networth prospect and client. big thanks.

hey all,

i’m a 21 year old college student majoring in music (production/recording). i just purchased my 1st home cash/outright.
i lost my mom in 2001 when i was 13 and used the modest life insurance policy she left for me to purchase the home. after losing my mom i moved in with my grandmother and lost her in 2004 after a year long battle with cancer. she left me a 1400/mo inheritance which i have been using for my education and related expenses. this $ is from her interest in a family business and will continue uninterrupted until her siblings sell the 2 commercial buildings they own and rent out. unfortunately i am a silent partner with no voting power and/or the ability to borrow and/or cash out of my interest in the co.

i have 100% equity in this property and its TAX ACCESSED value is 200k. just before i purchased the property i bought (cash/outright) 50k of landscape equipment and will be self employed/full time in the spring of 09. my education is almost complete…1 more semester and will continue on a part time basis. at this moment i have 10 weekly customers (800/wk or 3200/mo) and am looking to increase that # to 20-25 by spring. my property will also generate income…it consists of a 4br house, 2 br cottage, 2 car garage and is zoned "village commercial". with this zoning, there is an option to rent part or all of the property to certain types of business… pottery shop, general store, real estate office, bar/restaurant, etc. i have a couple ready to sign a contract for the cottage (1200/mo) and 2 roommates to share the house with me (600ea/mo). i also have the option to rent out a small commercial suite on the 1st floor of the house (1000/mo). my long term plan is to use this (comm) space for my professional recording studios… not ready ($).

although i do not "technically" have a declared income (yet), can i get a 100k loan using my property as collateral? moreover, can i use the rental, inheritance and landscape as income NOW, or how long do i have to wait to "technically" be considered a landlord and/or small business owner? i know i can handle this loan without any problem just with what i make right now. sad thing is… had i closed just a few months prior, it would have been "rubber stamped" by any bank and/or mortgage co. the way i found the property right up to the closing was done unconventionally… i am UNAFRAID to think and/or act out "outside of the box". any information and/or suggestions will be greatly appreciated. hope all is well. have a good one.

I have a friend who owns a house and got in way over on her bills. She owes a little less than the house is worth but can’t pay. She has been keeping up with payments on the first but the HELOC is behind.
Since there are two houses on the lot my plan is to Quit claim on title, put some money into the second house and rent it out and just pay her mortgages, taxes and insurance and just let her live in the second house for free. When she dies I would take over the whole property.
This is what she wants. Faster the better.
Is this possible? The real estate gurus say to do this but what is the procedure?
Is it better to get on title as the main owner and keep her on title as well and do my above plan? I just don’t want to start a new loan cause of the huge jump in mortgage and property tax. This would be much easier.

Retirement planning, college, insurance, ect. What would you suggest for classes to take, is this a two year or four year to be in college? Do they teach real estate in college?

I remember hearing a financial planner briefly go over how you can establish an LLC for anything. In fact, you can create an LLC that has no business plan or method to generate revenues whatsoever.

The concept was, create an LLC, dump your [insert asset here (house, car, retirement account, IRA, trust, estate)], and it would be immune to creditor claims (so long as it wasn’t a fradulent transfer like doing a $100,000 cash advance on your credit cards, transfering the money to an LLC and then claiming bankruptcy).

He suggested either Delaware or Nevada. The cost was somewhere around $1,000 to establish and <$200 per year.

Is this true? If it is, it sounds like incredibly cheap "insurance" to get an asset protected from the more letigious a-holes in this country.

Can anyone point me in the right direction for establishing these on a budget?

I have recently (6 months ago) started investing in real estate, doing rehabs, and renting them out. There has also been a string of arsons in the area, and I thought I’d ask a couple questions here. I do plan on talking with an insurance agent btw. But my questions -

1. If a home is vacant, and arson occurs, will an insurance company pay?
2. If a home is being rented, can the renter make a claim with their renter’s insurance as well to get compensated for their belongings, or will my insurance for the home itself cancel that out?
3. How is the value of a home (or mobile home!) determined? Do I need to submit an appraisal, or can I insure for the amount that I want covered?

Thanks for the info!

I have a property in Michigan I live in Chicago, and the property assessed value is 6,000. I did a little research and found that the market value could be anywhere from 6,000 to 12,000. I really just want to get rid of it even if I have to sell it for 6,000.

More detail:
-I have a Quit Claim (I plan to get title insurance to insure the title is good)

-Piece of land in Marquette County

-Bought at a very low price so if I lose money I haven’t lost alot of money, just a lot of time.

I would like some advice this is my very first purchase and first sell. Please Help! thank you.

People who are experienced Real Estate Investors preferably.

Every Property Doesn’t have to be purchased using an agent. Especially a piece of land. No agent in there right mind is going to want to collect a commision off of a 6,ooo or 12,ooo dollar property.
I love these answers, thanks!

I am planning to buy a house.
But very confused with the possible fees.
So far I know there are closing fees.
Is there any other fees I will need to pay besides the mortgage?

How about the Real estate agent fee? How much they charge for their service?
I know I will have to buy house insurance? How much they could cost?

If there are any other fees you can think of, please let me know.

thank you so much,
Cindy

I am a 26 year old single teacher in Atlanta with some credit card debt that is going to take 2-4 years to pay off depending on how much I can hustle and supplement in my income. I am debating on whether to rent a one bedroom apartment for 800-900 a month, or buy a gorgeous brand new 3 bedroom townhome, which will cost me a total of 1100 a month, which includes hoa, pmi, and insurance. Owning will give me the tax write off and I know it will make me very happy to pull into my own driveway everyday. Plus, i’m pretty sure this area will be prime real estate when I’m ready to sell and if not, I can take a hit because I’m buying it for 30k less than the sticker price based on grants I’m receiving. Anyhow, should I suck it up in a tiny apartment and put the extra 200 a month toward my credit card debt, or just get the townhome? BTW, having a roommate is out of the question (bad, bad bad experience). I will, however, be getting a slight raise and plan to take on a second job. Thanks a lot.
Okay - the 30k is a GRANT from the Atlanta Development Authority for people who are first time home buyers in Atlanta (see http://www.atlantada.com/buildDev/HomeAtlanta.jsp). The house has been appraised at it’s sticker price already. Plus, the builder is knocking 15k off price. It is a brand new townhome with a 10 year warranty. Also, I can only look in southwest Atlanta/East Point/College Park because I want to be close to the city and I still work in south Clayton County. So, I can’t go north of 20 because that would put me too far from where I work.
Even with two jobs, I’m a teacher which means I still get a great deal of time off (Thanksgiving, Xmas, Summer). I’m only working 25 hours a week during the summer. Because it’s a townhome, there will be no lawn maintenance. I’m completely set on furniture and most of my decor, plus I don’t like a lot of clutter anyway. As far as heating and cooling, it has dual zoned thermostats and the water bill is included in hoa which I’ve already included in the total price. Main thing I’ll just have to spend money on is paint.

My sister put money down on a home that was listed as residential property, it was infact a duplex that she planned on moving into both halves and eventually making it into one home. She got approved for the loan, sent the check to the insurance company, and put the money down, and when she got it appraised, the guy told her that it was commercial property and couldn’t get the house unless she put 20% down. She cannot do that, and the insurance company and real estate places have already cashed their checks. She is very interested in owning this home, what can she do?

The house is listed as residential-multifamily, and the appraiser came in and said it was commercial. It is located in eau claire, so is there anything that she can do?

And will she be able to get the money back from the insurance company and real estate place, i told her yes, be she thinks that they wont do it. What do you think? And what do you think she should do?