Michael Bull CCIM is the President and Founder of Bull Realty Inc.

He has been successful in the commercial real estate brokerage business for over 30 years involved in over 2.5 billion dollars of sales and leases. He and his firm have extensive experience helping investors and lenders in past down cycles. Among other acquisition and recovery services Bull Realty is currently selling notes and foreclosed commercial properties for 74 lenders and servicers.

With that expertise, Michael offers his best advice on investing in foreclosures.

Top 10 Tips For Acquiring Foreclosed Commercial Properties

1. Show proof of funds with purchase offers.
2. Make offers all cash with no loan contingency whenever possible.
3. Have funding arranged prior to offer including show-me-money.
4. Include large earnest money payment with offers placed in safe escrow.
5. Illustrate past performance of acquiring properties with offers.
6. Make offers in contract form rather than letter of intent.
7. Complete due diligence before offer as is practical.
8. Offers should have the fastest closing possible.
9. Consider cram down offers as joint venture with current owner prior to foreclosure.
10. Utilize an experienced, connected broker specializing in the property type.

Michael Bull will be speaking at the October 2, 2010, “How to Profit from Foreclosure and Other Real Estate Investments” with Ilyce Glink, Andy Heller, Ricky Novak, Shannon Judd, Wes Moss and others. Make sure you buy your tickets now!

Follow Michael Bull on Twitter at http://twitter.com/bullrealty

Buy your tickets to the event here: http://howtoprofitfromrealestateinvesting.eventbrite.com/ Don’t forget our VIP ticket which includes the Podcast of the event and a special investing eBook package.

1.  You make your money on an investment property on its  purchase (the whole buy low, sell high idea); if you shop around enough, you can find a distressed property with redeeming features that will allow for a good sale price. Make sure you invest in a property that will garner you a profit upon its sale.

2.  Repairs on a rental property are deductible in the year performed  which is good news for your  taxes. Fixing a leaky faucet is a repair, deduct it! Painting is a maintenance item, also fully deductible in year performed. In short, putting the work into maintaining and improving your investment property might not be as expensive as you think and will have big payoffs in the long run.

3.  Improvements on a rental property must be amortized over the life of the property or per IRS Regulations. A new roof on an old structure must be written off over 27.5 years.  A new AC Unit must be written off over its estimated useful life.

4.  Get professional help when setting up properties for tax purposes. Remember that the IRS code states that Depreciation must be taken into account when the property is sold, whether taken or available to be taken.  If the property owner omitted depreciation, they paid too much tax every year and then they had to recapture this depreciation that they never got the benefit of, and had to pay tax on the recapture. Use an expert to sidestep hidden costs.

5.  Couples making up to $100K can take up to $25,000 in rental losses per year if they were active in this passive activity. Prorated from $100K ($25,000) to $150K ( $0.00). You won’t receive any rental losses if the taxpayer and spouse file “Married Filing Separately” and live together at any time during the year. Suspended losses can be taken in the year of sale to reduce the gain.

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Ilyce,

I was an attendee at your recent Atlanta seminar, which I enjoyed and thought was a good value.

I currently am “working the plan” of meeting with financial planners.

I met with Wes Moss yesterday and have a meeting scheduled with Kay Shirley. I am looking for a third planner so that I have at least three, as you recommend.

I wanted to let you know that your advice to take advantage of the initial consultation is absolutely on target.

The meeting with Wes was a pleasure. He is professional, easy to talk with, and knowledgeable. I felt that the recommendations he made for my situation reflected that he had listened well to “my story” and responded appropriately and with integrity.

I expect the same will occur with Kay Shirley.

I feel more confident and capable of facing these uncertain times. I plan to continue to listen and educate myself regarding financial matters, so that I make better choices of what to do with what I earn.

Thank you for what you and Sam do and for being direct and honest. I understood your comment at the seminar: (paraphrase)that they all lie, you just hope they don’t do it at the same time.

I enjoy your show on WSB.

Sincerely,

XXXXXXXXXX

Did you attend the How To Invest Your Money in 2010? What did you think? Have you followed up with any of the advisers? We’d love to hear from you!

Each Sunday morning for the past seven years, I’ve hosted the “Ilyce Glink Show” on Newstalk 750 WSB/Atlanta.

Since the show’s inception, I’ve started each show discussing the economy. As we moved from boom to bust, my economic segments have focused on how today’s news affects investors and consumers.

The interesting thing about hosting a radio show is hearing what’s on my listener’s minds. They’re quick to call in and let me know whether they agree with what I’ve been saying or not. Their questions tell me what’s going on in their lives.

This week, I discussed how a new study is showing that homeowners who are underwater with their mortgages are defaulting at an even faster rate. I also regularly discuss the coming commercial real estate collapse, long-term unemployment and other news items.

So much of the economic news of the week (this week, it was the pending inability of countries like Greece,Spain, Portugal and others to pay back their debt, plus a “sneeze” from China) wreaks havoc in the stock markets – it’s tough to shrug it off and say, “Today’s news doesn’t matter.”

I think the economy and each week’s economic news matter quite a great deal – to consumers, to investors and to anyone else connected to business.

This week on the show, Wayne’s call struck me the most. Wayne is an attorney with decades of experience. Even two years ago, attorneys were doing well. Today, there’s no work, and Wayne is considering finding another line of work. He told me that the Atlanta Bar Association has a networking meeting each month for unemployed lawyers. The number of attorneys who attend each month is growing.

My husband, Sam, is a real estate attorney and he sees the same thing going on in Chicago. More attorneys are finding there is less to do. Many firms have “de-equitized” their partners, cut their salary and benefits, and fired hundreds of attorneys and support staff. When the $150,000 to $500,000 attorney jobs go away, that’s a lot of lost income not being pumped into the economy.

Wayne can’t quite believe that he is at this point in his career – and his life.

I could sense the anguish as he asked me the real question on his mind: “Ilyce, how close do you think we were to another Great Depression?”

My answer: “We were on a knife’s edge. And, we’re still very close.”

It’s clear to me that the chasm between Wall Street and Main Street in increasing and is unsustainable.

The good news? This could mean another “once-in-a-lifetime” opportunity for investors.

How To Invest Your Money in 2010 Schedule Of Events

Introduction: Ilyce Glink: Top 5 Mistakes Investors Make

Panel 1: Setting Your Personal Finance and Investing Goals

Top experts and financial planners share how to set goals for your financial future and the best ways to meet those goals.

Speakers:

Kay Shirley Ph.D., CFP, LPL Financial: Kay approaches investing from an educational viewpoint and works with her clients to become a decision making partner.

Rob Goshen, Mesirow Financial: Read Rob’s  thoughts on how to evaluate risk in your portfolio.

Rob Eichner, Raymond James

Panel 2: Risk and Asset Allocation in your Portfolio

Learn how to evaluate risk and how your portfolio should be diversified, for every stage of your life.

Speakers:

Rob Goshen, Mesirow Financial

Wes Moss, Capital Investment Advisors: WSB Radio host and financial planner Wes Moss works closely with his clients to help them achieve their financial goals.

John Haag, Raymond James

Panel 3: How to Analyze Mutual Funds

This special lunchtime speaker will help you understand the terminology and ins and outs of investing in Mutual Funds.

Speaker:

Christopher Davis, Morningstar. Christopher is Senior Mutual Fund Analyst Editor, Morningstar Fidelity Fund Family Report Morningstar, Inc.

Panel 4: Mutual Funds, ETFs, Stocks and Bonds

This panel will focus on pros and cons of different investment vehicles and how to use them to structure a portfolio.

Speakers:

Kay Shirley Ph.D., CFP, LPL Financial

Wes Moss, Capital Investment Advisors

Ben De Haan, Lighthouse Financial Partners: Ben is President of Lighthouse Financial Partners and the Chief Investment Officer of DeHaan and Company Financial Partners, Inc. Read some of Ben’s thoughts on investment options for different stages of your life.

Panel 5: Tax Consequences of Investing

How does your portfolio affect your taxes? Are you missing out on tax benefits?

Speakers:

Bill Nemeth, Georgia Association of Enrolled Agents: Bill is an Enrolled Agent and  the President of the GAEA.  He also co-owner of seven Jackson Hewitt franchises in the Atlanta area.

Merry Brodie, Georgia Association of Enrolled Agents: Merry is co-owner of seven Jackson Hewitt franchises in the Atlanta area.

Ricky Novak Strategic Exchange Advisors: Ricky specializes in 1031 exchange structuring for real estate.  Read some of his 1031 exchange tips.

Panel 6: After Hours Master Class – Real Estate Investing

Become a successful real estate investor in 2010.

Speakers:

Andy Heller, Realty Join

Ricky Novak Strategic Exchange Advisors

Mike Rose, Bank of America

Event Attendees, be sure to download your copy of the final schedule of events on Friday, March 26, 2010. We will not have paper copies on hand, so you’ll need to bring your own copy with any last-minute additions and changes. We look forward to seeing you there.

Ben DeHaan is the President of Lighthouse Financial Planners, a fee only investment firm in Buckhead Atlanta. He is also the Chief Investment Officer of DeHaan and Co. Financial Partners, Inc. DeHaan caught up with us recently to share some of the insight he’ll be sharing as a speaker for our How to Invest in 2010 event.

Q: What are some of the top mistakes you see investors making, and what advice do you give on how to avoid these mistakes?

A: A lot of times people just don’t complete the financial plans that their financial planners tell them to complete. The other issue which is a close second is that people don’t have a strategic plan on how to get out of the market. Some have a buy and hold strategy but we advise clients to put a bottom line limit on their portfolios of when to get out. We’re trying to get people to take a 5 to 10 percent loss rather than riding down to a 30 percent loss.

Q:  Can you talk about how people at different stages of their life should be evaluating potential investments for risk level?

A: I would say probably between the ages of 20 to 30 years old, what we call the pre-accumulation phase, that more risk is easier to take because the time horizon is so long. Once you go into the heavy spending phase, from 30 to 60 years old,  during that time we would advocate people have a little less risk and put a tremendous amount of at least a year’s worth of cash in CDs or money market accounts and then after either in stocks or mutual funds. Save first and grow second.

Q: What’s the best investment for educations savings right now? 529? Gift to Minor? Other option?

My opinion is the Roth IRA, but it depends on how much money a person wants to contribute.  With a Roth, you can access the money the same way for educational accounts, tax-deferred. If you don’t use the Roth you can keep it and use it for retirement. The child would have to declare it on the Free Application for Federal Student Aid whenever they apply for college, but since it’s titled as a retirement account, the Roth doesn’t hurt chances for aid as much as a specific education fund would like a 529 would.

Q&A with Rob Goshen, Senior Vice President, Investment Advisory for Mesirow Financial

Q: How should people at different stages of their life should be evaluating potential investments for risk level?

A: What is risk? Risk is both the temporary and permanent changes in value of one’s portfolio over time. Clearly as we get older, we have less time to recoup the temporary reduction in value so as we age, we need to focus more closely on the variances within our portfolios. However, as was learned in 2008, the reduction in portfolio values can be drastic even to a younger investor. Investors who thought they had a higher risk tolerance quickly learned that they needed to lower their risk tolerance. In addition, through the plethora of Ponzi Schemes uncovered over the last 2 years, unfortunate investors learned that permanent loss of capital is an all too real possibility.

Q: How should investors be allocating their assets in their portfolio to manage risk?

A: Investors should hold diversified portfolios made up of many different asset classes, not just many different stock positions. Keep leverage down to a minimum, don’t overpay for an asset, hold some percentage in Gold and/or bearish bets in case we see a repeat of fall 2008.

Ricky Novak is the President of Strategic 1031 Exchange Advisors, a consulting firm in Atlanta that specializes in 1031 exchange structuring for real estate investors and developers. Ricky also currently serves as Chair of the Board of Directors for the Atlanta Bar Association Real Estate Section for 2009 to 2010, as well as on the Board of Advisors for several Atlanta-based real estate developers or businesses. We’re happy to have Ricky as a speaker for March 27 event, and recently talked with him about real estate tax tips and investing advice for 2010.

Many speculate that the Fed will have to raise interest rates by late this summer or early next fall. Most of Ricky’s clients are real estate investors, so he advises them to be cautious about how rising interest rates could affect the cost of their investment properties.

The current economy altered the kinds of things Ricky emphasizes to his clients. The firm has been talking to their clients about re-evaluating their portfolios to really understand why they’re investing in real estate and adjust their investments accordingly. Whether real estate is a short-term or long-term investment for a client should also be considered.

“For the first time in a long time people are now looking at real estate as a long-term investment strategy. People before looked at it in the short term as a liquid asset, but people are now going back to the fundamentals of real estate,” Ricky said. “No matter how sophisticated or simple the investment is, whether it’s a single family rental home or a 1000-square-foot office space, make sure you can properly underwrite the property and make sure it’s a sound investment from the start.”

Ricky also talked about the tendency for real estate investors to overlook the benefits of a 1031 exchange. Understanding how the exchange allows investors to defer the potential taxation on the gain from a sale is something investors should look into. Above all, Ricky notes that 2010 is a transition year that will surely include lots of ups and downs. It’s a great time to reflect on where you are in your real estate portfolio, Ricky said, and have a strong long-term strategy with short-term goals within the plan.

Wes Moss, the executive Vice President/Chief Investment Strategist of Capital Investment Advisors (CIA) in Atlanta.  Wes works directly with clients providing investment strategy and guidance to help them meet their financial objectives, and will be joining us for our How To Invest in 2010 event March 27. Wes talked about a column he wrote for the New York Daily News on 10 tips for creating an efficient money strategy in the new year, and shared more insight with us today on investing in 2010.

Q: The first point in your article is “don’t give up on stocks.” What advice do you have for people who have money in stocks?

A: Part of what I’ve talked about is that we’ve lived through a difficult period of time in equities, and the decade of the 2000s is the worst decade that we’ve lived through since the 1820s.  It’s very frustrating. We’ve had very difficult periods of time where the S&P 500 has been taken back to same levels it was at in 1998. My message to investors is that profits for S&P profits were about $45 for overall earnings, current estimates for S&P will be about $75. The market’s at the same level back in 1998 but profits are up by nearly 60 percent. Don’t give up on stocks, because companies are actually relatively healthy.

Q: What should investors consider when looking at the possibility of investing in the global market?

A: Countries like Brazil and China have growth rates double or triple the U.S. on the margin. If that continues, that’s a good place to invest. I encourage people to cautious in these investments. Within your 401(k) plan most have an emerging market fund option and I think it’s tempting to put a lot of money into that. Some returns have made well over 100 percent returns, but you still don’t want to have 50 percent of your portfolio in those risks. A more conservative option would be to look at larger cap, multi-national companies that do business all over the world.

Wes also talked about the top mistakes he sees investors make: that many investors are overly concerned about always searching for the new “hot” investment, are always hoping to perfectly time the market, and don’t place enough emphasis on maximizing income production from current investments. One of his biggest recommendations he has for investors to create an “all-weather” asset allocation strategy that divides a person’s assets into the percentage of stocks, bonds and cash that a person can live with no matter how the market fluctuates.