A:  The decision to hold or to sell real estate should only be made after examining considerations including:

     1. Your long and short-term personal goals
     2. Your long and short-term financial goals
     3. The present physical and financial condition of the property
     4. Opportunities such as installment sale, lease option, redevelopment, etc.
     5. External factors affecting the property
     6. Investment alternatives
     7. Tax consequences

Ultimately, the purpose of a financial investment is to create maximum return in minimal time with minimum effort and risk.  You can stick with the property and watch your equity grow, enjoy the income, and take the tax benefits.  You can hold title and sell it on a rent-to-own basis for income and tax benefits without the obligation of maintenance.  Or, you can enjoy 15% on your money risk-free as a hard money lender.  Invest in tax liens and watch your money grow by 18% or more (also risk-free.)  Get into "Freehabbing" and your return will often tip triple-digits!

So ask yourself, Lev, "Could my money do better somewhere else?"  And, "Is it worth it?"

A:  My Dad and I developed "The Control and Roll Wholesaling Method" to create short-term income by 1) identifying a cash flow or equity opportunity, 2) controlling it with a contract or option, and 3) assigning it to a buyer for a fee before settlement.  But how short is "short-term?"

A successful Control and Roll transaction can put a smile on everyone's face in less than 60 calendar days.  Once an agreement is ratified, the timeline begins with three to four weeks of advertising, usually by Public Reserve Auction - the fastest way to realize true market value.  (See AuctionBrokers.net)  Should the property sell at auction, the assignee will have 30 days to settle.  Investors should strive for contract periods of 90 banking days (and at least 45 banking days) to allow for a second round of advertising in case their assignee fails to close.

Notwithstanding typical Control and Roll periods, investors with an attractive real estate opportunity and an active Buyer's List can assign contracts in a matter of days if not hours.  My students have earned $50,000 an hour using this methodology.  Even more amazing are my students who have executed assignment agreements subject to ratification of their purchase agreement; in short, they sell and then buy.  Now that's leverage.

Control and Roll transactions are fast, but sometimes prospective sellers are not willing or not able to wait the requisite four weeks to secure an assignee.  In such urgent cases, I recommend either purchasing the property outright if the numbers work, or referring the seller to an investor-friendly real estate auction firm such as Auction Brokers (410.426.2622).

The Control and Roll Method is a win-win-win.  The seller can convert their property into cash without bothering with details, the investor can walk away with a profit in exchange for their investment of time, advertising, and negotiation, and the assignee can enjoy their new real estate asset.

A:  Under the Recession of 2008, grants, incentives, and former well-springs for real estate funding have run dry.  Conventional ways of doing business are no longer working, and many first-time home-buyers, non-profit leaders, and even investors are suffering.  The financial drought has left them empty-handed and relief will not come in time.

Now, home-buyers and investors must create their own relief.  Real estate-related non-profits can no longer afford to wait with their hands out; they must learn to stand on their own two-feet.  It is out of necessity that people are turning to Creative Financing to bring their real estate endeavors to fruition.  Clearly, those who know how to structure real estate transactions in multiple ways have an advantage over those who only understand the conventional down-payment-plus-bank-financing method.

In the conventional world of novice real estate agents and mortgage brokers, Creative Financing may be regarded as some kind of prestidigitation or slight of hand, or sound like 2am infomercial babble.  In the conventional world, Creative Financing is not associated with high-finance, high-stakes real estate ventures.  But in reality, Creative Financing is at work in most large-scale real estate transactions; it is why professional real estate investors seem to be recession-proof, decade after decade.

Creative Financing refers to the funding or controlling of real estate using methods outside of the norm.  It is a body of knowledge employed by real estate investors when conventional financing is not desirable or possible.  Investors use Creative Financing to conserve capital, to lower risk, to increase leverage, to minimize tax burdens, to maximize return on investment, and to overcome financial or credit shortcomings.

Some examples of Creative Financing include: tax credits, seller-held annuities, participation loans, performance clauses, self-directed IRAs, 1031 exchanges, front porch clauses, step-up/down and rollover option agreements, subject-to agreements, and so on.  In fact, there are more than fifty Creative Financing methods that are covered in the Contract Engineering course at Investors United School of Real Estate in Baltimore.

Now to answer your question, Nick, the easiest way to avoid any 2009 DPA cut-off is to buy now.  As an alternative, try a Front Porch Clause.  Virtually every property needs some kind of repair, so negotiate the completion of that repair by the seller; then, agree to perform the repair yourself in exchange for a down-payment credit.  Have the seller write you a check, endorse it back to him or her, and get a receipt.  In short, any flaw in the property can become your down-payment!

You can also try the "Seller Refi. For Takeover" method.  Ask the seller to refinance the property for the purchase price subject to a one-time qualified assumption with release of liability.  You assume the seller's refinance loan just as soon as it is approved, and the seller walks with cash.  I used this method just a few months ago to acquire a million-dollar personal residence with no money down.  It can work for you too!

"Uncertainty" is the word of the day, but with knowedge of Creative Financing it does not have to be.  Real estate is a recession-proof investment for those who understand how to invest outside of the conventional realm.  Increase your knowledge and you'll soon learn to make the best of tough times.

A:  Everything begins with Inspiration; verily, one definition of the word is "the drawing of air into the lungs."  Like inhalation or inspiration of air, fuels the bloodstream with vital life-sustaining oxygen, inspiration on a personal or spiritual level is the fuel that motivates us to take action.

As a boy, I was inspired by the ideal of freedom - the ability to do what I want to do, when and how I want to do it.  I abhored the idea of limitations on my time and ability, and I knew that money could solve many of those limitations.  Thanks to my Dad, a successful real estate entrepreneur, I also knew that real estate investing is the best way to obtain the money I needed to achieve my vision.

In time, I realized that my vision was not unique, it was as simple and selfish as a cell's genetic instructions to divide and reproduce.  I realized that virtually everyone strives to be free, and suddenly my inspiration changed.

I believe that every person deserves to be happy and prosperous, and has an obligation to give something back.  Today, I work not only to have the things I want in life, I work so that my family, my friends, and my community can have those things too.

Success is available to anyone, but you must be willing to work for it.  Just like pulminary "inspiration" is a repetitive action, so too must our inspiration be regularly reaffirmed.  First, define what inspires you.  What is your vision?  Your passion?  Your raison d'etre or reason for being?  Accept your vision as the only possible outcome.  See it not as a goal, but as a reality that is about to happen.  Next, pen your vision on an index card and laminate it.  Keep that card in your pocket, separate from your wallet.  Carry it with you at all times so you can never forget why you work.  Work hard and work smart, and your vision will become reality.

So breathe and inspire your lungs with air; mediate upon your own personal inspiration and the actions you can take to achieve it.  Life - and living - begins with inspiration!

A:  "Location!  Location!  Location!" bellowed one of my fellow presenters at a recent real estate event at the University of Baltimore, his fist syncopating on the lecturn.  The gentleman represented the Maryland Department of Economic Development, but he misunderstood a basic tenet of real estate investing.

Location determines the price of real estate, in part, but cash flow and/or equity determine one's return on investment.

Whether in a "bad" neighborhood or a high-income neighborhood, the presence of cash flow or equity means that a real estate investor can profit.  Investors who understand this lesson have the ability to create income (and positively affect neighborhoods) anywhere, while investors who aren't in the know follow a herd mentality and end up over-paying for properties in trendy areas, hoping for appreciation.

So, "where are the hot areas to flip?"  Anywhere - as long as there is cash flow or equity.  To answer the question "where are the best areas to buy and hold?" begin with cash flow and/or equity.  Also consider your strategy - do you intend to hold and "rent" or "rent-to-own."  It makes a difference.  Being a landlord in a low-income neighborhood can be difficult and even scary.  As for me, I prefer to lease my commercial and upscale properties and sell by installment sale my properties low-income areas.

By implementing the rent-to-own (installment sale) option to the low-income tenants, I enjoy regular income, help the tenant become a homeowner (which low-income neighborhoods need,) keep the tax benefits (because the property stays in my name until 40% of the purchase price is paid,) and pass on the costs of taxes, insurance, and maintenance to the tenant/buyer.  It's a beautiful thing for everyone.  Now that's "hot!"