Taxes On Investment Properties

Taxes On Investment Properties

Episode Transcript

(00:00):
The following is a pie commercial programon ninety four three WSC. The views
expressed by the host of this programdo not necessarily reflect the views of iHeartMedia
ninety four three WSC, it's advertiser, sponsors or management. This is The
Real Estate Show with Rick Willis.I show about home sales, mortgage issues,
investing in everything about the American dreamand I mean to want. That's

(00:22):
someone who enjoys radio and really enjoysyour program. And now The Real Estate
Show with Rick Willis on ninety fourthree in SC. Hello Charleston, Welcome,
Welcome to the Rick Willis Real EstateShow. Well, folks, we've
been on the air now for twentyplus years. I meet people all the

(00:44):
time in the Greater Charleston area thatdidn't know there was such a thing as
the Real Estate Show. So ifyou're listening and you know of other people
that may have an interest in realestate, let them know how to find
the shows from noon to one andSundays from nine to ten am. Well.

(01:07):
As always, in the beginning ofour show, we want to bring
you up to speed with the statusof the market. It's been kind of
steady two thousand, two hundred sevenactive residential listings. The market is still
less than number of sales last year. And of course last year at this

(01:30):
time, interest rates were going upand they continued to go up all throughout
last year and have even had raisesthis year so far. So yeah,
as interest rates go up, youdon't expect as many people to buy.
But what is what is expected wouldbe that the number of listings would increase,

(01:55):
and that's not happening. The numbertwo thousand and two hundred and seven
active residential listings as of this morningis a steady number that it is showing
that the number of active listings inspring and coming into summer is not increasing.

(02:16):
And what that means is there arepeople that are just playing, not
putting their home on the market forsale. The builders are building, and
yes new construction does get into multiplelisting, but the people that have the
two and a half percent three threeand a half percent, perhaps even up

(02:38):
to four percent mortgage, I'm surethey're just saying, you know, I
really like this house. And whatthey really mean is I like my monthly
payment. And when they even thinkabout or look at selling their existing home
and going out and buying another propertywith an interest rate as much as double

(03:00):
what they might have on their existingproperty. They're just not quite as motivated
as they might be if interest rateshad not dramatically increased so much so two
thousand, two hundred and seven activelistings. The experts say six thousand active
listings would be considered a balanced market. And yes, I get information from

(03:25):
all over the US and things thatare emailed to me and blogs and different
sources of information. And the wordis that when looking at the whole United
States, it's kind of settling intopre pandemic times that we're entering into a

(03:45):
period like two eighteen nineteen, themarket was good, the market was strong,
but we didn't have these big fluctuationsthat we've seen in the last couple
of years. It's kind of gettingdown to steady. And when we say
steady, we mean it's still aseller's market. I saw this past week

(04:06):
where approximately thirty percent of all propertysales have more than one offer on them.
And I experienced that same thing myself, whether I'm on the listing side
of things or whether I'm on thebuyer side of things. And as a
matter of fact, in the lastcouple of weeks, I represented a buyer

(04:29):
who put an all cash offer inon a property that was over the asking
price. And you ready for this. They were one of twenty five offers.
Yep, you heard that right,twenty five. Now why would there
be so many offers on this oneproperty. Well, it was bank owned

(04:55):
and number two, no question aboutit. It was underneath what should be
fair mark get value. But myclient, according to the listing agent I
was representing the buyer, my clientcame in second out of twenty five offers,
and we were told that if thefirst one doesn't work out, they'd
be back to us. And theperson that actually was awarded the purchase bid

(05:23):
fifty thousand over the asking price.And this is a property where the asking
price was in the low two hundredsand the winning bid bid fifty thousand over
the asking price. Wow. Sowhen people ask me, well what should

(05:46):
I offer on the property? Idon't care whether it's a bank owned property
or not. The answer always ishow bad do you want this property?
Now? This particular property in asubdivision, so there was nothing necessarily special
about it except that it was undervalued, under priced. So my buyer

(06:12):
did offer over asking price, butnothing even close to what the winning bid
was of fifty thousand over the askingprice. Okay, well, I've got
a lot of just little items tocover with you today, things that have
come up during the course of thelast week, people asking me questions or

(06:32):
being concerned about certain things. AndI always consider the fact that if one
person's asking me, there's got tobe ten, maybe a hundred people that
also want to know the same thing. Insurance. Every time you buy any
property, whether you're paying cash orgetting a bank loan, of course you're

(06:54):
going to have insurance on the property. And I just want to share a
couple of observations with you. Firstof all, let's just make an assumption
that you're buying a home and nota commercial property for a moment. When
you are buying insurance, you wantto make sure you get at least three

(07:15):
quotes from three different companies. Imeet people all the time that have a
relationship with USAA, so they automaticallygo to USAA for their insurance. Well,
did it ever occur to you thatmaybe they're the highest price in town.
Did it ever occur to you thateven though you're pro prior military or

(07:38):
current military, that there is nota price break that they're giving you.
In fact, maybe it's just theopposite. Maybe then, of course you've
got all the brand name companies,your State Farm and your Nationwide, etc.
Etc. And then you've got theindependent companies, the companies where where

(08:00):
they can shop different insurance agencies,different companies, I should be saying,
because they're not captured. There's aterm in the insurance business that talks about
a captured agent or a non capturedagent. Captured meaning if you're a state
farm agent, you can only writeinsurance on behalf of state farm. But

(08:24):
the independent insurance agent who is notaffiliated with one of these brand name,
more well known agencies can go shopthe entire marketplace on your behalf. So
I suggest you go ahead and usethe insurance company that you now have,

(08:45):
perhaps for your automobile, but goahead and also search some other independent companies.
And what I've done is I've askedthe mortgage broker that I use for
his recommend nations because he sees anawful lot more mortgages than I do,
because that's the business he's in,and he gets to see different rates.

(09:09):
So when I work with a buyer, to recommend to them what insurance company
to check out. I do recommendthe ones that the mortgage broker that I
refer people to recommend to me.And something else. On insurance, you
see, you have something called deductible, and deductible means that if you have

(09:33):
an insurance claim, you know there'sa certain amount of money that if it's
not over the deductible, they're notgoing to honor it. Well, the
more deductible you have, the loweryour premium is. Now, when I
buy insurance for myself, I alwayslook for the maximum deductible. So instead
of it being one hundred dollars orfive hundred dollars or a thousand dollars depending

(09:56):
upon the price the property, Iwant to look at a five tho dollar
deductible or a ten thousand dollar deductiblebecause my belief is the percentage of probability
of my needing that insurance is goingto be very low, so I might
as well have the lowest premium possible. Folks, my name is Rick Willis.
I am a licensed real estate brokerhere in the Charleston area. I

(10:18):
help people buy I help people sellall kinds of property, vacant land,
commercial, personal residents, second home, investment properties, and I'd like to
have a conversation with you. Ifyou are in need of a buyer's agent
or someone to talk with about themarketing and sale of your property, reach
out to me directly, Folks eightfour three three two seven three zero one

(10:41):
seven email me Rick at Rickwillis dotcom, or visit my website or Rickwillis
dot com Rickwillis dot com. Folkswill be right back after this break.
Thanks for listening to the Charleston MorningNews podcast Catch Kelly and Blaze weekday mornings

(11:03):
from six to nine. Welcome back, Welcome back to Charustin. Welcome back
to the second segment of today's RiquelisReal Estate Show. Well. I mentioned
in the first segment that I've gota lot of little items to talk to
you about today, things that havecome up during the week that people have

(11:24):
asked me questions about that I thoughtit might be of interest to you.
We just talked about insurance, andnow I want to talk about property taxes.
Real estate taxes overall in the stateof South Carolina, they're lower than
most states. And if you don'tbelieve that, ask somebody who has relocated

(11:46):
here from New Jersey or New Yorkand they will set the record straight for
you. Now that being said,there are people that come to the state
and they want to buy some investmentproperty or a property they don't live in,
and they discover that the real estatetaxes are three times as much for

(12:13):
a non owner occupied property as anowner occupied property. Three times. Well,
I got to get the money fromsomething somewhere. But yeah, and
in this state, through their infinitewisdom of the legislature, they have chosen
to tax non owner occupied property threetimes what it would be if someone occupied

(12:37):
the property. Now, there's alittle known loophole in this and that is
if someone buys a property that they'renot going to live in, let's just
say it's a rental property, andthey fill out a form. The form

(12:58):
that they fill out will have aup to a twenty five percent reduction of
what the taxes would be if theydidn't fill out the form. Let me
say it differently. Oftentimes a propertythat's been held by the same person for
quite a while is not taxed atfair market value. That the actual tax

(13:22):
that the owner is paying on theproperty is significantly less than what it would
be if it was fair market value. That being said, the property transfers
and the property sells for considerably morethan what the property is being taxed,
and of course the taxing entity isentitled to get taxes on fair market value,

(13:46):
which is usually considered to be whatsomeone pays for the property, but
it can't go up but a certainamount. If the person advius that investment
property fills out a form, andit will say that the taxes can only
go up to twenty five percent upto seventy five percent of what the sales

(14:11):
price would be if they fill outthe form, but can't be less than
what the previous owner was paying.Let me say that differently. If somebody
bought a property years ago for onehundred thousand and they sell the property for
three hundred thousand without the person fillingout this form, the property taxes would

(14:35):
be based on three hundred thousand,which the new owner would be paying.
But if they fill out the form, which you have to take the initiative
to do that, and you fillin the form, you're going to be
taxed at no more than three hundredthousand minus twenty five percent of that,

(14:58):
which would be seventy five thousand,two hundred and twenty five thousand. Yes,
the taxes will go up, butnot what they would be going up
if you didn't fill out the form. And then you look at the fact
that you're not just saving money inthat year, but every year you own
the property, you're paying less taxthan if you didn't fill out the form.

(15:20):
And there is a catch, youmust fill out the form in that
year that you purchased the property.So, for example, I had a
closing yesterday. It was at theoffice of Weeks Law firm in Somerville,
and we had a conversation with thebuyer of the property. And this was

(15:43):
a property that was a multi familyproperty and it was sold for five hundred
and seventy three thousand dollars. Andthe closing attorney had the conversation with the
buyer and emphasized them that between nowand the first of the year, they
must fill out this form. Soagain, most of the people that I

(16:10):
know are buying investment property are notaware of the form. No one's telling
them about the form, and peoplearen't filling it out, so taxes.
Every now and then I'm asked bysomebody, well, what about the house
I live in? You know I'mbeing taxed at this amount. Well,
I have appealed my own taxes onmy own residence that I live in,

(16:33):
and I was successful and getting mytaxes lowered. But the initiative is on
you, and the burden of proofof showing that you shouldn't be taxed at
the rate you're being taxed, notthe rate, but the amount is on
you to do so. So inthe last couple of years, we've seen
an awful lot of appreciation, andmost of you aren't paying more taxes than

(16:59):
what the assessed value is, andthe assessed value is probably not more than
You're probably paying taxes on something lessthan what your property is actually worth.
But in the event that it's not, there is a way to challenge it,
and you have to turn it in. And I turned in the paperwork

(17:21):
when I challenged mine, and theydidn't want to lower it at all,
and it did say when they communicatedback to me, well, if you
don't think this is right, youcan produce some more information. And I
did produce some more information and theylowered it again, and they lowered it,
and then I didn't think it waslow enough, and I gave him

(17:42):
some more information and they reduced itagain. I guess they got tired of
dealing with me. Long story short, it was close enough to what I
thought it should be that I didn'twant to tempt fate again and again got
the assessed value lower than what itmight be. So anyhow, by the
way, don't try this if youknow you're really below what your value should

(18:07):
be, because it might come backto boomerang and say, well, you're
not even being taxed enough and theywant to try to increase your taxes.
So words of the wise, havean opportunity that might have an interest for
some of you listening. I hadsomeone reach out to me in the last
couple of weeks that would like tohave an investor buy a house for them.

(18:33):
Now hear me all the way through, if you could be an investor
or what I call a reluctant investoror a very very conservative investor. I
had someone reach out to me andsay, Rick, we talked to you
a number of months ago about havingan investor by a house, and we're
now ready to pursue that. Andhere's how that works. These folks have

(19:00):
a combined income of over one hundredthousand a year, husband and wife,
and they have some money that theycan put up as nonrefundable deposit. So
let's just assume for just a minutethat these people wanted to buy a three
hundred and fifty thousand dollar house,but they can't today afford that house by

(19:22):
way of the fact that they haven'tbeen employed in the same field for the
correct number of years, or theircredit score needs a little TLC to increase
it. But they've been to alender. They have the ability once they
get their credit score where it needsto be to buy the property. And
they go out looking for a houseand they come to me and say,

(19:45):
Rick, we found a house whowant to buy? Do you have an
investor that would like to get involvedwith us in this? And the investor
meets with the people. The investorlooks at the house, and the investor
rights an offer to buy the propertywith an understanding that the people that want

(20:07):
to live in the home and occupythe home are going to put up a
nonrefundable deposit paid directly to the investor. They're going to sign an agreement to
cover all the principal interest, taxes, insurance, and a couple hundred more.
They're going to be responsible for anymaintenance and repairs and they're going to
have up to three years to buythe property back at a guaranteed profit to

(20:32):
the investor. How does that sound. You don't need to find a tenant.
Somebody's putting up nonrefundable money to youas good faith that you can use
when you buy the property, andthey're going to buy it back from you
at a guaranteed profit and take careof all the maintenance and repairs along the

(20:52):
way. I've done this successfully almostevery year that I've been in the real
estate business here, and it's goodway to go if you are what I
call a reluctant investor or a conservativeinvestor, and yeah, you're not going
to own a long term, butyou're going to get a fifteen percent and
you will return on all your moneyinvest at fifteen percent. So if you've

(21:15):
got any money sitting around not earningfifteen percent, and you'd like to get
more informationalness, reach out to meand we'll have a conversation. Okay,
the real estate business, there's lotsof ways of being creative. Whether you're
buying, selling, investing, owna piece of vacant land, commercial property,

(21:37):
thinking of buying or selling anything,reach out to me. You might
find a creative solution for what you'relooking to do. Folks, call me
directly. Let's have a conversation aboutwhatever it is you have an interest in
real estate, Call me directly,Rick Willis eight four three two seven three
zero one seven, Email me Rickat Willis dot com. Visit my website

(22:03):
Rickwillis dot com, learn more aboutme, and you can access directly into
multiple listing Folks. Will be rightback after this break. If you have
real estate questions, or if youneed a market analysis on your property,
call Rick right now at eight fourthree three two seven three zero one seven,
or you can email them at Rickat Rickwillis dot com. Check out

(22:23):
Rick's bio and access all properties onthe MLS at Rickwillis dot com. Welcome
back, Welcome back, Charleston,Welcome back to the third segment of today's
Rickwillis Real Estate Show. Well,when I get halfway through the show,
I always glance at my notes,see all the different things that I've written

(22:47):
down that I could be talking aboutin the good news is I have more
things written down than I have time, so I won't have what you call
dead airspace. I'll have something tosay that hopefully you'll want to hear about
real estate. You know, theinteresting thing about real estate from a realtor
point of view, You know,you've got the ability when you're a realtor

(23:08):
to work with buyers. And thereare some agents that only work with buyers,
they're called buyers agents. And thereare some agents that by choice only
work on listings and helping people thatwant to sell their property. And then
there's people like me that work withboth buyers and sellers. And then there's

(23:32):
a choice of residential property and commercialproperty and vacant land and investment cash flow
properties. So we've got choices oftypes of properties that we can specialize in.
And I've been in the business longenough to learn pretty much the ins
and outs of all of it.Does that mean I know all there is

(23:56):
to know? Of course not.I'm still learning and constantly learning. Not
only am I required and every realtorsrequired to get continuing education to renew our
respective real estate licenses. But inthis day and age, you get a
lot of coaching opportunities from individuals aroundthe country that can help individually or in

(24:18):
a group situations. Realtors do whatwe're supposed to be doing to expand our
business and offer better service. You'vegot blogs and podcasts and different other ways
of learning, And yeah, thepandemic kind of changed how we did things.
But at the same time, it'snice to be around other people.

(24:41):
I don't know about you all,but I have looked forward to being in
some training classes with other human beingsaround me after spending a couple of years
on Zoom and other mechanisms online.It's kind of nice to be around other
people and the ability to have aquestion answered or talk to somebody on a

(25:03):
break. But here we are twentytwenty three, and the real estate market
is stabilizing, and I mentioned thatin the very beginning we've kind of reverted
back to where things were twenty eighteennineteen before the pandemic. And you know,
yes, there still offers, multipleoffers coming in on properties, and

(25:27):
yes there are still people making offerssite unseen, and there are people that
want the house badly enough that they'regoing to accept it and as his condition
and not get a home inspection.But for the most part, you know,
we can go back and treat thereal estate business right now as quote

(25:48):
normal, and normal means that buyersare asking the question, what should I
offer for this property? It's notautomatically how much over the asking price do
you need to offer? Yes,there is the ability to still negotiate.
I was representing a buyer here seeyear, it would be last week,

(26:12):
found a property that he wanted tosee. We made arrangements to go look
at it, but on the marketabout ten days at the time that he
reached out to me to see theproperty. We looked at it. He
liked it. Unique property under fivehundred thousand dollars with over an acre of

(26:33):
land in a good location for thisparticular buyer close in for an acre of
land. And it got to thepoint of, well, what do you
think I should offer? And althoughthis person was asking me my opinion what
I know about this particular buyer,at the end of the day they were

(26:55):
going to tell me what they weregoing to offer. My opinion probably wasn't
going to sway them. Now thatbeing said, an agent who's doing their
job in adequately representing a buyer won'tjust automatically come up with a number off
the top of their head of whatthey should offer. I did communicate to

(27:19):
this particular buyer, I said,you know the asking price of this home
is only one hundred sixty eight dollarsa square foot. And for those of
you that aren't into business and don'tgo out there looking at buying property or
selling property, that may not meananything to you, but post pandemic may

(27:47):
of twenty three one hundred sixty eightdollars a square foot for a brick home
in excellent condition on one plus acres. I told the buyers that is cheap.
I haven't seen a property that lowone hundred sixty eight dollars a square

(28:10):
foot in a long time. Andthis isn't a great location and in great
condition and with the amount of landthat would satisfy you. Well. Long
story short, this particular buyer andI agreed, let's offer twenty five thousand
less than the asking price. Twentyfive thousand less. Now we had a

(28:37):
little inside information. And when Isay we had inside information, here's what
I mean. I met this particularbuyer client at the property, and very
unusual for this to be a showinginstruction, but this particular seller said they
would open the door. It wasn'ta lock box situation, and it wasn't

(28:59):
the list the agent that had tobe there, but the owner of the
property was going to be there tolet us into the property. I pulled
into the driveway ahead of my buyour client. The owner of the property
was idling in their vehicle right nextto where my car was parked. I

(29:21):
rolled down my window, she rolleddown her window and we started chatting.
And we started chatting, and Itold her that I was representing an all
cash buyer, and she said,well, I just want to let you
know ahead of time that we're notin any hurry to have to get this
sold, but we do have ahome that we need to buy and we

(29:41):
haven't found one yet. Okay,long story short. We look at the
house, he likes it, andwe know that they're selling and have to
buy another house. So this particularbuyer said, and we had a conversation
about this. We put an offeron the property, willing to close in

(30:06):
three weeks all cash, and givethe seller the opportunity to remain in the
property for up two six months upto the first of the year before they
had to vacate, in which casethat would mean that they could go out

(30:29):
shopping as a cash buyer not contingenton the sale of their property. Isn't
that interesting, but obviously the buyerwas looking for a discount of twenty five
thousand dollars as a consideration for thatoffer, comes back with a counter offer

(30:53):
that was fifteen thousand less than askingprice, by counteroffers the counteroffer and comes
up a little bit long story short, the buyer did end up paying the
seller what their initial counteroffer was becausethey agreed to other considerations that are not

(31:21):
relevant in this conversation with you aboutwhat to offer for a property. But
the buyer was happy, the sellerwas happy, listing realed or happy,
buyer agent happy, everybody's happy.But it boils down to when you say,
what should you offer for the house? Yes, you do look at
what the square foot value or priceis. Yes you do look at the

(31:47):
condition of the home. Yes youdo look at the uniqueness of the property.
And if I'm representing a buyer andthe buyer doesn't get this, how
hard is it to find something atthat price point that was that price per
square foot in that good a condition, in that location. And the answer
really was virtually impossible. So thiswas a unique property, and you know

(32:13):
what, you need to take thatinto consideration. If you're looking in a
cookie cutter neighborhood subdivision where all thehouses are the same, and there'll be
another one pop up next week orthe week after that. Hey, maybe
it doesn't matter if you lose thaton one. But at the end of
the day, when you see whatyou want, particularly if there's any uniqueness

(32:36):
about it, and the uniqueness couldbe the size of the lot, the
location, the floor plan, thecondition, get it. I mean,
if you're financing a property, andmost of you listening will be financing a
property, you're only talking about somewherebetween six and seven dollars per month per

(32:58):
thousand, if you're per thousand dollarsthat you finance. So the difference in
ten thousand dollars in price of whatyou actually pay versus maybe what you wanted
to pay is maybe sixty or seventydollars a month, And of that sixty
or seventy dollars a month, maybeten to fifteen dollars of that is principle,

(33:21):
which is your money that's lowering thebalance. So maybe you're really not
talking about that much difference anyway,Get what you want when you see it,
and at the same time, youwant the realtor that you work with
to give you their opinion and justification. And you might say, well,
I don't want to overpay for aproperty. Well, if you're financing it,

(33:44):
you have a third party appraiser,don't you, so maybe you can't
overpay. And you know what thedefinition of fair market value is. Fair
market value is what a willing buyeris willing to pay and a willing seller
is willing to sell. Neither partyunder any due rests. Well, how

(34:08):
much deposit should you put up?I meet people that don't want to put
up hartly anything. How about onehundred dollars? They're trying to buy a
three hundred and fifty thousand dollar house. It's customary, not policy, not
the law, but customary that adeposit is one percent of the purchase price

(34:30):
one percent. In this particular case, the property was under five hundred thousand
dollars, so we got a fivethousand dollar deposit. It's okay to be
more. I had someone contract fora six hundred thousand dollar property and they
wrote a ten thousand dollars deposit.But you know what, if you're trying

(34:53):
to buy a property for five hundredthousand and you want to put up a
thousand dollars deposit. It make youlook non serious, makes you look like,
oh maybe i'd maybe if i'd defaultand don't follow through, I've only
got a thousand dollars up. Folks. If you don't get the house,
and if you doesn't pass a homeinspection with the right due diligence contingency,

(35:17):
you're going to get you deposit back. So show some good faith. Write
a deposit check that's strong enough toget the seller's attention, and it applies
towards your purchase price. Lots oflittle things, folks, when writing offers.
If you're listening to me and you'rethinking of buying any kind of property

(35:37):
you want, your own buyer's agentdoesn't cost you any money. I'd be
honored and privileged to have you interviewme to consider having me as your buyer's
agent. I know how to representyou well, negotiate well, and I'm
very experienced at writing offers that benefityou the buyer. So call me,

(36:00):
folks, let's have a conversation,whether you're looking to buy or sell.
Eight four three three two seven threezero one seven email Rick at Rickwillis dot
com. I'll look forward to hearingfrom you and we'll be right back for
our final segment of the day.If you have real estate questions or if
you need a market analysis on yourproperty, call Rick right now at eight

(36:22):
four three three two seven three zeroone seven, or you can email them
at Rick at Rickwillis dot com.Check out Rick's bio and access all properties
on the MLS at Rickwillis dot com. Welcome back, Welcome back, Charleston,
Welcome back to the final segment oftoday's Rickwillis Real Estate Show. Well,

(36:44):
folks, if you're hearing this onSaturday between noon and one, it's
important that you know that the showwill repeat tomorrow morning, Sunday morning from
nine until ten am, and it'sthat way every week. So if you
normally listen on Saturday and you can'thear the show and you want to hear

(37:04):
it, you can hear it thenext day Sunday morning nine to ten.
And also iHeartMedia. They have podcastsand on my own website, Rickwillis dot
com. If you want to goback and hear some past shows, you
can find it at Rickwillis dot com, which is my website. So different

(37:24):
ways that you can hear at differenttimes that you can hear the show.
We've been doing the show again fortwenty years, and an awful lot of
collective information is available to you.Well, it wouldn't be as radio show

(37:45):
if I didn't talk about investment property, would it. Those of you that
listen consistently and constantly to the showknow that I have a passion for educating
you and teaching you about the safestpossible place to have your money where you
can get both income and growth.Wouldn't you say that was ideal safety,

(38:10):
income and growth. So many ofyou hear these words, but you've never
taken action to do anything about it. And when I say take action,
I'm primarily referring to reaching out tome to have an hour to an hour
and a half conversation individually about yourparticular situation. You see, last week

(38:36):
I spent a reasonable amount of timetalking about other financial experts outside of the
real estate field, specifically talking aboutthe volatility in the world, the unknowns
in the world, the things thatare different now and will be in the

(38:57):
future than the past. Many peoplethat you talk to, particularly people that
are involved in financial advising financially planning, we'll talk about, well, yeah,
the market's down, but sit tightbecause it always comes back. Well,
that's a historical statement that is accurate. It always comes back. The

(39:22):
question to ask yourself is is thefuture going to be like the past?
It always comes back? And ifso, how many years will it take?
How many decades will it take?What language will we be speaking?
What will the currency be? Willit be the Chinese yen? Will it

(39:46):
be cryptocurrency? I mean, we'retalking about some rather large unknowns, folks.
We've got a deficit of over thirtytrillion dollars, we're spending money,
We've got inflation, we've got alot of corruption in government. These are

(40:07):
certain things that are not so goodfor the future of stability of paper currency.
And I was emphasizing last week thatthe experts are saying, be very
concerned about paper assets, and youwant to convert paper assets to physical assets

(40:29):
or hard assets. And people whenyou hear the physical asset or hard asset,
think in terms of precious metals.They think in terms of silver and
gold primarily. Yes, those arehard assets. My question to you is
this, how much income is generatedwhile you're holding the hard asset versus real

(40:55):
estate. If you own the rightkind of property, the asset is probably
stable to going up in value andyou have income. Now, people that
I know that are looking for returnon investment will often say, well,

(41:15):
yeah, but I can do betterwith certain paper assets than hard asset called
real estate. Well, sometimes thatis true. But here's what's important to
know. Number one most important criticalcomponent about investing money is not the return

(41:36):
on the investment, but return ofthe investment. Making sure that wherever you
put your money it's safe. AndI'm suggesting to you there is no safer
place to put your money than GreaterCharleston area real estate. Yes, property
values are still going up. Yes, corporation are still relocating and the ones

(42:01):
that are here are expanding. Employeesare following the employer. People are retiring
and coming to the state. Thereis a long term trend started by the
pandemic of people working remote that willnot change. It is a permanent change

(42:22):
that's not going to be going backto the way it used to be.
That allows people to live in aplace where there's a lifestyle, and that's
the Greater Charleston area, that's SouthCarolina. So I'm suggesting to you that
for the long term, if you'reconcerned about the safety of your money.

(42:45):
It's not going to be any betterthan Charleston area real estate. And folks,
when I say local Charleston area realestate, that might be going out
an hour in driving time from downtownon Charleston. The greater Charleston area takes
into account three, four or fivedifferent counties and they're going to continue.

(43:10):
There will continually be people wanting tolive here, relocate here, have their
businesses here. So number one,you want to be concerned about stability of
your asset. And folks, don'tfocus on what's easiest, focused on what's
best. And remember something, younever have to manage your own property.

(43:31):
You never have to deal with atenant to own real estate. See right
now, somebody's got your four ohone k ira invested in companies and there's
people to get paid to manage thosecompanies, and they have salaries. You
can own Charleston area real estate andpay someone to manage your property and just

(43:53):
deposit money in your account and takecare of any expenses that come up.
But your money safe and secure.And here's the important part. Not only
is it secure, you're getting anincome while you own it. Income income,
income, income, stability, safetyand income and oh yeah, it's

(44:19):
probably going to continue to grow andvalue. Can't sign a promise that says
that it's just what's happened in thepast and it's happening now. And unlike
the world of paper assets, youcan count on the fact that the hard
asset where people have to live,people have to live somewhere, is going

(44:39):
to continue to increase in value becauseit's governed by the law of supply and
demand. It's not your opinion,it's not my opinion. It's a law,
the law of supply and demand.So I'm suggesting to you that you
want to own come property, anddon't confuse the word income property with a

(45:02):
rental property. Most people go outthere and say, oh, I'm going
to buy just a nice property ina nice area that's going to grow and
has low crime and a nice schooldistrict. Folks, maybe you have no
idea what you're doing. Maybe youshould consult someone who does. People that
invest for a living make their livelihooddoing this. Number one criteria is income.

(45:29):
Number two is growth, and ofcourse always along the way automatically included
in that is safety of your principle. Well, I can help you create
income. I can help you createsafety, and I can help you create
security. And oh, by theway, you get some tax benefits along
the way called depreciation. And folks, strategy wise, maybe you never sell

(45:53):
it. Maybe you just go toyour grave owning this property. Maybe you
set up a trust for your kids, your grandchildren are cause you believe in
because real estate income never stops andit never ceases. Folks, reach out
to me. Let's talk. Callme directly eight four three three two seven

(46:13):
three zero one seven. Email meRick at Rickwillis dot com. My email
address is excuse me my website Rickwillisdot com. Thanks for listening, enjoy
the weekend, and I look forwardto speaking with you.