Holding Investment Real Estate - LLC, Trust, Or Both?

The Issue: How to Hold Property in California?

Countless individuals invest in real estate every day. Some dream of becoming the next real estate mogul, while others simply wish to supplement their salary with additional income. Whatever your motivations, owning investment properties can produce big rewards, but also big problems. This is why it is important to hold title to your property in the most beneficial way. The internet is saturated with various posts and articles touting the most effective techniques to manage your property. It can often be a daunting task weeding through the mass of information in an attempt to discern what advice is reliable and what advice can get you into trouble. Our goal here is to provide a succinct and clear summary of the safest and most important strategies for holding investment property in California. We hope the result will be a valuable starting point in considering the best ways to both protect you as the owner/landlord from liability and also guarantee the best treatment of your assets.

The Risks of Owning Real Estate

Holding Investment Real Estate - LLC, Trust, Or Both?

As stated above, while property can be a valuable investment, there are also significant risks. One of the biggest risks is lawsuits. From common slip and falls, to environmental contamination, landlords and owners are easily exposed to legal judgments. Landlords have also been successfully sued by victims of crimes -- such as robberies, rape, and even murder -- that occur on their property on the theory that the landlord provided inadequate security.

Options for Holding Real Estate

Faced with the risk of lawsuits, it is crucial that you do not own investment real property in your own name. (The only real property you should hold in your own name is your primary residence.) Thankfully, there are several ways in which an individual can hold property other than in his/her own name. These include as a corporation, limited partnership, limited liability company ("LLC"), trust, and many others. While there are many options, when it comes to real estate investment, LLCs are the preferred entity by most investors, attorneys and accountants.

For many reasons, few investors hold investment real estate in C corporations. A corporation protects the shareholders from personal liability, but the double taxation of dividends and the inability to have "paper losses" from depreciation flow through to owners make a C corporation inappropriate for real estate investments.

In the past, partnerships and limited partnerships were the entities of choice for real estate investors. Limited partners were protected from personal liability while also being able to take passed through tax losses (subject to IRS rules--you'll need an accountant or attorney to sort out the issues of at-risk limitations and so on) from the property. However, the biggest downfall with limited partnerships was that someone had to be the general partner and expose himself to unlimited personal liability.

Many small real estate investors also hold property in a trust. While a living trust is important for protecting the owner's privacy and provides valuable estate planning treatment, the trust provides nothing in the area of protection from liability. However, although a trust provides no liability protection, it should not be overlooked, as it can easily be paired with an LLC.

1. Benefits of a LLC

LLCs appear to be the best of all worlds for holding investment real estate. Unlike limited partnerships, LLCs do not require a general partner who is exposed to liability. Instead, all LLC owners -- called members -- have complete limited liability protection. LLCs are also superior to C corporations because LLCs avoid the double taxation of corporations, yet retain complete limited liability for all members. Furthermore, LLC's are rather cheap and easy to form.

A. One LLC or Multiple LLCs?

For owners of multiple properties, the question arises whether to hold all properties under one LLC, or to create a new LLC for each additional property. For several reasons, it is generally advisable to have one LLC for each property.

First, having a separate LLC own each separate property prevents "spillover" liability from one property to another. Suppose you have two properties worth 0,000 and they're held in the same LLC. If a tenant is injured at property 1, and wins a 0,000 judgment, he will be able to put a lien on both properties for the entire 0,000 even though property 2 had nothing to do with the plaintiff's injury.

On the other hand, if each property had its own LLC, then the creditor could only put a lien on the property where the plaintiff was injured (assuming that they cannot pierce the corporate veil).

Additionally, many banks and lenders require separate LLCs for each property. They want the property they're lending against to be "bankruptcy remote". This means that the lender doesn't want a problem at a separate property to jeopardize their security interest in the property that they're lending on.

2. Benefits of a Trust

As stated above, an LLC may be used concurrently with a trust to provide the best protection and estate treatment for your property. There are many types of trusts, but the revocable living trust is probably the most common and useful for holding title to real estate. The major benefit from holding property in a trust is that the property avoids probate after your death. As many are aware, probate is a court-supervised process for transferring assets to the beneficiaries listed in one's will. The advantages of avoiding probate are numerous. Distribution of property held in a living trust can be much faster than probate, assets in a living trust can be more easily accessible to the beneficiaries of the trust, and the cost of distributing assets held in a living trust is often less than going through probate. [Note: One should also be aware of other ways to avoid probate. For instance, property held in joint tenancy with a right of survivorship automatically avoids probate whether or not the property is in the living trust. Consult an estate planning attorney for more advice regarding probate matters.]

3. Use Both an LLC and a Trust

Because an LLC and a trust both provide significant benefits to the owner of real property, a smart investor should consider using both a LLC and a trust to adequately protect himself and his property. Utilizing both a trust and a LLC creates the best combination of liability protection and favorable estate planning. To accomplish this, the owner should hold the investment property in a single member LLC, with the living trust as the sole member of the LLC. Here, the trust is the owner of the company and holds all of the interests of the LLC. This form of ownership gives you an added layer of protection from the LLC as well as the additional estate planning benefits of a trust.

A. Costs

For the most part, the costs of forming and maintaining an LLC and trust are rather minimal. For an average LLC, the costs are simply nominal filing fees and an 0 per/yr fee to the state of CA. While simple incorporations may be done on your own, it is strongly advised that you seek the advice of a knowledgeable attorney so that no mistakes are made. The same may be said for forming a trust. A little money now is worth the price of avoiding big problems in the future.

B. The CA LLC Fee

While the costs of forming a LLC are generally small, there are additional fees that may be imposed on LLCs in California depending on gross profits. The California Revenue and Taxation Code Section 17942(a) includes an additional fee on LLCs if total gross income (i.e. rent) exceeds 0,000. "Total gross income" refers to gross revenues (not profits). Under this Tax Code Section, the amount of the fee is determined as follows:

1. for LLCs with total gross income of less than 0,000;
2. 0 for LLCs with total gross income of at least 0,000 but less than 0,000;
3. ,500 for LLCs with total gross income of at least 0,000 but less than ,000,000;
4. ,000 for LLCs with total gross income of at least ,000,000 but less than ,000,000; and
5. ,790 for LLCs with total gross income of ,000,000 or more.

Although the fee is relatively small, one must consider that the fee is assessed against gross revenues, not profits. This means that the fee is due whether or not your property is profitable. For a property with high revenues but narrow profit margins, the fee would reflect a higher portion of the property's profitability than it would on a property that is highly profitable. For example, a company that owns an office building with revenues from rent totaling million, but a mortgage of 5,000, would actually operate at a loss after the ,000 fee was imposed. Furthermore, the fee would be particularly irksome for those companies that foresee incurring losses in their early stages of development.

4. Limited Partnership: a Possible Strategy if Gross Receipts Exceed 0,000

For the vast majority of investors, the CA LLC fee should not dissuade you from forming an LLC. If, however, the impact is severely detrimental, there are several potential solutions that may be explored. A competent attorney or accountant may be able to work with you to avoid this fee. One method may be to form a Limited Partnership. The partnership should be set up with an LLC as the General Partner (assuming liability) and the owner(s) of the property as the limited partner(s). By forming a limited partnership with an LLC acting as the general partner, the landlord can likely avoid the higher fee imposed on an LLC while still protecting his/her personal liability. While this may be a possible solution, it is strongly recommended that you consult with an attorney or accountant regarding the best course of action.

While there are risks associated with real estate, with intelligent decision-making and thoughtful preparation, real property can be a valuable investment. The first step though, is to make sure that you have adequately protected yourself and your property. We hope that this article helps property owners begin to discover the various ways in which one may hold investment property, as well as the protections and benefits provided by such ownership.

Holding Investment Real Estate - LLC, Trust, Or Both?
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For more information, please contact the author directly at pjavaheri@jurislawgroup.com, or visit the Juris Law Group at http://www.jurislawgroup.com

The purpose of this article is to assist in dissemination of information that may be helpful to real property investors, and no representation is made about the accuracy of the information.

By reading this article, you understand that this information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice. This publication should not be used as a substitute for competent legal advice from a licensed attorney in your state.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, any tax information contained in this site was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under federal, state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed on this site.

P. J. JAVAHERI, ESQ.
is a partner in the business and real estate division of Juris Law Group. Mr. Javaheri has represented a wide range of clients, from multi-national Fortune 500 companies to start-up companies. Some of his significant representations include CIBC World Markets and the Canadian Imperial Bank of Canada, Merrill Lynch, Deutsche Bank, Barclays, Alexandria Real Estate Equities, Inc., Golden West Trading Company, Culver City Meat Co., Alpine Corporation, Royal Poultry, Completely Fresh Foods, Mirant Corporation, Coram Energy, Sun Run Generation, LLC, Ausra, Inc., and Alfred E. Baldwin. Mr. Javaheri notes with appreciation the research and writing assistance of Zachary Shine, a 2009 summer associate in Juris Law Group's Beverly Hills office.

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Gifting Real Estate Under The Annual Gift Tax Exclusion

We know that you can give up to ,000 per person per year and never pay a federal gift tax - thanks to the annual gift tax exclusion. That's fine if you're writing out a check or just giving cash. But, how can you give someone a house or a business or anything else that is not money and still have it come under the annual gift-tax exclusion?

Let's say you're parents have a condo in Florida that they bought several years ago for 0,000, and it's now worth 0,000. Now, they want to give it to you and your two sisters because they're concerned about the new Medicaid laws and their estate taxes.

Qualifying the entire 0,000 condo under the annual gift tax exclusion is not easy. First, it's hard to gift real estate in ,000 increments. Sure, you can do it by simply dividing the value of the condo (0,000) by the annual exclusion amount (,000 in 2006). In our example, ,000 is equal to a 1/34th interest in the condo, which means that each of your parents could give you and each of your sisters a 1/34th interest in the condo each year. At that rate, it would take roughly 6 years to complete the transfer. If spouses were included in the annual gifts, then the time needed to transfer the entire condo would be reduced to about three years. [Careful planning could reduce that time to 366 days by making the first transfers on December 31st, the second transfers on the following January 1st, and the final transfers on January 1st of the next year.]

Gifting Real Estate Under The Annual Gift Tax Exclusion

Seems pretty cumbersome though, doesn't it? And, it is. Besides, every year your parents would have to prepare a new deed for each gift and would have to record each deed on the land records. Plus, they'll probably need an attorney to take care of all that for them. The costs for all that work, including the recording fees, can be quite substantial. Then, when all of you decide to sell the condo, you'll have to put 34 different deeds together, with every owner signing off on the sale.

There's still another problem - that is, you have to make sure that your values are all correct. You see, if you give money, there's no queston as to what the value of the gift is. With anything besides money, whether it's real estate, stock, bonds, collectibles, etc., there is often no readily ascertainable value. So, you need to have the property appraised by a qualified appraiser so that the value comes under the annual exclusion. There are rules for doing this and, if you don't comply, then the IRS can always challenge your value. If the value is found to be more than the annual exclusion amount, then you'd have to file a gift tax return each year and possibly pay a gift tax. Appraisals cost money and have to be done every time a gift is made.

Is there a better way to transfer real estate under the annual gift tax exclusion? Sure there is! No one wants to transfer real estate in the manner we just discussed. It's just too cumbersome, time consuming, and expensive. The preferred way to transfer real estate under the annual gift tax exclusion is to use a separate legal entity, such as a corporation, or a limited liability company, or a family limited partnership to facilitate the transfer. My preference is a limited liability company (LLC) because it is easy and inexpensive to set up, and does not create the need for additional on-going expenses.

Here's how it works: First, your parents would create a limited liability company. Let's call it the Smith Family Condo, LLC. The LLC would be created with 34 membership units (0,000 / ,000). Your parents would then transfer their condo to the LLC in exchange for all 34 membership units (each parent would receive 17 membership units). Only one deed is necessary when your parents transfer the condo to the LLC, and only one recording is required. Likewise, only one appraisal is necessary to establish the value of the condo at the time of the transfer.

Now, whenever your parents wish to make a gift to each of you under their annual gift tax exclusion, all they have to do is transfer one membership unit in the LLC. No further deeds are required, no recording of deeds is required, and no attorney's fees are required. The transfers have to be reflected on the books of the LLC, but that's it. Not only does the LLC make it very easy to transfer the property in the first place, it also makes it very easy to manage the property and eventually sell it when the time comes.

That's the preferred way to transfer real estate or any other type of property to multiple beneficiaries under the annual gift tax exclusion.

Next time: Is it so terrible if you go over the annual gift tax exclusion amount in any year?

Gifting Real Estate Under The Annual Gift Tax Exclusion
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Attorney Michael P. Pancheri is a practicing attorney and the founder and CEO of the Living Trust Network. You may contact him by email at info@livingtrustnetwork.com. You may also contact him at the Living Trust Network's web site. Its URL is http://www.livingtrustnetwork.com.

Copyright 2005. LivingTrustNetwork, LLC.

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Due Diligence For Real Estate Investors

Do your due diligence when investing in real estate. You've heard that before, but what is due diligence? A simple definition: "The investigation and verification of the details of a particular investment." Start the process before the offer, but in the offer you also will want to include clauses that allow you to have inspections done, look at certain documents, and review the books.

Due Diligence

Due diligence should always include a look at the books. Review the last 24 month's income and expense statements, and watch for anything unusual, like expenses that are too low or income that seems higher than usual. Look at the rent roll, and investigate whether rents are over or under the market rates for the area you are in. Check the payroll records if there are employees, and watch for surprises, like accrued vacation time that you'll have to pay as the new owner.

Due Diligence For Real Estate Investors

Always verify income. You want to see rental agreements signed by the tenants, as well as rental histories, which might show if there are any problem tenants or late payments still due. Documents for rental deposits should show amounts and where the deposits are (which bank).

Look at the service contracts and agreements. Ask if they transfer, or if you are free to change to better (possibly cheaper) services. Among others, you're looking for property management, landscaping, snow plowing, pool cleaning service, and heating and cooling system maintenance agreements.

Do your initial exterior inspection. Walk around with pen and paper, and note anything unusual or in need of repair. Arrange for professional inspections where needed. Be sure that the electrical and plumbing systems are up to date and meet current codes. Estimate of how many years of use the roofing has left, and look at driveways, landscaping, and the condition of exterior paint.

Your due diligence should include an interior inspection. Meet some of the tenants if you can. Look for any problems you'll have to fix in the coming years. Watch for water damage or fire damage, pest problems, and obvious "problem tenants," or "problem apartments." Are there empty units that are listed as occupied? Get the necessary pest inspections and safety inspections. Some Fire Marshalls will do a free inspection to verify that the building meets current codes.

Call local authorities. Ask about any zoning or encroachment issues, or permit problems. Have there been any fire code violations, and were they fixed?

It is usually best to use professional help when doing your due diligence. Your accountant can decipher the books better than you, and notice anything that doesn't add up. A lawyer can review your offer and other documents. She can also tell you what other things you should be doing.

Take notes. Do something about serious issues (have them fixed or adjust your offer). Most problems you'll run into when buying income properties are not entirely unforeseeable. They can be avoided or resolved if you use your due diligence checklist diligently.

Due Diligence For Real Estate Investors
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Copyright Steve Gillman. See the page: Due Diligence Checklist for a good checklist, and visit the home page for a free real estate investing course: http://www.HousesUnderFiftyThousand.com

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Craigslist's Farm and Garden For Sale Section - What You May Find

If you want to use Craigslist.org, you will find a for sale section. There are many different categories listed under this heading, including one for farm and garden. In that particular section, what are you likely to find?

Farm animals for sale - Common farm animals listed for sale or even for free on Craigslist include horses, cows, goats, chicken, ducks, rabbits, and more. Many times, a current farmer wants to make room for new animals or eliminate them altogether. Buying farm animals on Craigslist.org is a great alternative to attending local auctions. You may also find pet listings for household pets, such as cats, dogs, birds, and fish.

Farm services extended to the public - It is common for farmers to offer services to the general public. These may include ground tours, summer camps for kids at horse stables, horse boarding, or animal renting. Animal renting is generally reserved for kids. They get an animal to care for on site. They can then use that animal to participate in local 4-H programs and to attend shows. Most services offered to the general public require the payment of a small fee. Ask if a fee is not listed on Craigslist.org.

Craigslist's Farm and Garden For Sale Section - What You May Find

For sale farm equipment - Unfortunately, many farmers across America are closing down their businesses or decreasing in size. Others regularly update their farm equipment, like John Deere tractors and John Deere lawn mowers. To help offset the cost of a new purchase, they resell the older models. Whether you are a current farm owner or just need equipment, you can find quality equipment and good prices.

For rent farm and garden equipment - Not only can you find equipment for sale, but for rent too. Gardeners regularly need tillers to treat the ground, but only once a year. It isn't worth it to buy the gardening equipment, but it is to rent it for a day or two. Many equipment owners know this, so they list their equipment for rent or even free borrowing on Craigslist.

Whether you are looking to buy or rent farm or garden equipment, buy farm animals, or use services open to the public, you can find what you need on Craigslist.org. To search more than just your local page, but the surrounding area too, download and use a Craigslist search tool to save time and find what you need. Perform multi-city searches with ease.

Craigslist's Farm and Garden For Sale Section - What You May Find
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Click here to search farm and garden on Craigslist with ease; try the Craigslist Reader.

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Foods to Avoid With Gout

People always have the mentality that as long as one does not eat junk food, one can be considered to have a healthy diet. Actually a diet that is considered healthy to one might be unhealthy to another person, it can be quite subjective in this context. Gout patients are usually advice to go on a special diet, which will help to alleviate the pain cause by gout attacks. This diet will require one to avoid food that will increase the uric acid in the body. The list of food to avoid will also include certain food, which are considered healthy by most standards and definitions.

Gout, which is a common form of arthritis especially among man of age 40 to 50, is caused by the deposits of excess uric acid in the bloodstream on the joint connections area. By avoiding food that will cause the body to generate more uric acid than necessary in the body is very critical. Food items containing high purine level is found to increase the production of uric acid in the human body. It is essential for people with gout to avoid such food completely. [http://www.arthritis-pain-cure.com/article_info.php/articles_id/267]The list of high purine food is actually quite long thus it is very important for gout patients to be wary of the food they consume daily. Some of the common beverages, which gout patients should avoid, include coffee, tea, cocoa and even chocolate. Some of these beverages are already part and parcel of ones daily life that it is seriously a bit different to imagine having to abstain drinking them. If you think it is really no big deal to indulge in it once in awhile, you will really have to think twice. Is the pain from a possible gout attack really going to be worth it from your indulgence?

The second list of food gout patients should avoid includes gizzard, kidney, seafood, heart, gravy and red meats. Alcohol should also be place in the list of food to be avoided. Any form of alcohol including wine or beer can trigger attacks of gout. It is significant to memorize the list of food to avoid as it can help to reduce the amount of gout attacks controlling drugs one will have to take.

Foods to Avoid With Gout

The third and somehow the list which most people consider as the most healthy choice is simply a bit hard to comprehend why it should be avoided by gout patients. Peas, spinach, lentils and beans are vegetables that should be avoided if one is diagnosed with gout.

It is seriously important for people with gout to bear in mind the types of food items that are harmful and beneficial to their gout conditions. Since you now have a better knowledge of the food types that should be consumed, it might be a good habit of what to buy and what not to buy when you do your grocery shopping the next time.

Example of Shopping List

Food items to Avoid

1. mushrooms

2. offal foods (heart, kidneys, liver, tripet, tongue)

3. game meats

4. red meat

5. fish roe

6. mussels

7. sardines

8. anchovies

9. herring

10. mackerel

11. scallops and shrimp

12. sweetbreads

13. peas

14. spinach

15. lentils

16. beans

17. asparagus

18. alcohol

19. gravy

20. yeast

Food Items to Buy

1. rice

2. cherries

3. strawberries

4. raw fruits

5. cheese

6. white breads

7. seeds

8. nuts

9. cereals

10.vegetables

Even though choosing the correct food to consume is important for people with gout, drinking plenty of water is also essential. Drinking lots of water will help the body to remove the excessive uric acid in the body through the urinal system. Exercising regularly will also help gout patients to improve their overall gout conditions.

By restricting your diet and only sticking to food that are low in purine levels will definitely help to reduce complications associated with gout and the need for medication to help control the pain due to an gout attack. To completely be free of the tortures of gout, one will have to bear in mind all the above mention method and pointers.

For more information on gout treatment, food to avoid for gout patients and natural remedies for gout, please visit Gout Treatment And Remedy.

Foods to Avoid With Gout
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Sky Joe is a well known author, website publisher and owner of the website gout.mygeneralknowledge.com.

©Skyjoe. All rights reserved. This article may be freely distributed as long as it remains unchanged.

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What About Real Estate Deflation In The Greater Depression?

Real estate deflation will be the most damaging asset to the average American due to the widespread ownership of real property in the coming GREATER DEPRESSION. A sick housing sector means fewer jobs for construction workers, realtors and others tied directly to the industry. In addition, homeowners "under water" - who owe on the home more than they could sell it for - are not likely to spend any money fixing them up or even buying furniture. Almost 70 percent of Nevada homeowners are in this boat. In Arizona the number is half and in California it is 33 percent. Foreclosures spiked in August of 2010 with Nevada again leading with one in every 84 households receiving a foreclosure notice. Here is the latest sad real estate deflation economy statistics as of September 26, 2010:

More than 1 million Americans will lose their homes this year. 1.7 million homeowners got foreclosure warnings in first 6 mos. 7.3 million home loans are in some stage of delinquency. 1 out of every 17 received a foreclosure notice in Nevada. Arizona, Florida, California,(UT, GA, MI, ID, Il, CO)were next. 64 percent of Nevada property sales were foreclosures. New York had the biggest REO (bank owned) discount - 52% over properties not in foreclosure - KY, IL, OH & CA were 35%. Foreclosure sales increased 2,500% from 2005 to 2009. It takes about 15 months for a home go through the foreclosure process. 28 million homes in America are "under water" - their value is less than the loan. Existing home sales dropped 27% in June of 2010 the largest drop ever. More evidence of real estate deflation. For October 2010 the number of home sales in the San Francisco Bay Area fell by 20% from a year ago. Foreclosures increased 25% in June of 2010 to a record 95,304.12.October 2010 - Unemployment increases in 27 states Existing home sales in California dropped to 6,698 an eighteen year low not seen since 1992. A new wave of home foreclosures is coming in the second half of 2010 as the unemployment rate remains high, mortgage-assistance programs fail, and the economy stalls. Many variable rate loans sold with low "teaser" rates are to be reset. Most commercial loans are often sold with a short due date and many of them will have to be refinanced. The properties and/or the owners may not qualify for a new refinance when the loans become due putting new pressure on commercial property prices.

You can expect a 90 - 99% real estate deflation in prices at the 2016-2018 low.

What About Real Estate Deflation In The Greater Depression?

I bought my first real estate, 60 acres for 0 an acre, while still in high school. This was with money my two other bothers and I made by selling 4-H cattle at the local county fair. We then ran 15 black angus cows and a bull on the land and paid for it with their offspring in 5 years.

I went to an agricultural college, but changed to a business major half way through. While in college I passed the California Real Estate salesman license exam. In 1968, at the age of 19 home sales was my summer break profession/job. I sold 10 houses in 2 months that first summer and bought a house, a 1962 chrysler imperial car with creamy ivory colored leather seats and paid for the rest of my college. Now you can see why I changed majors. The summer before I worked like a dog at a cattle feedlot for .46 an hour, 10 hours a day. I have been an award-winning agent in good standing here in the San Francisco Bay Area of California ever since (license CA DRE # 00330978).

Don't be afraid to own a house. Just as long as you can get it free and clear or as long as you can afford the payments. You have to live somewhere. You have to have a roof over your head. You would have to pay rent anyway. Most landlords don't allow dogs and cats either. Do they? The best strategy right now is to own real estate outright or have a high loan balance and little cash invested.

Don't think real estate will ramp back up in value any time soon. This is the big real estate deflation bust liquidating the crazy credit expansion bubble we experienced. All prices will go down so everything is relative. A house free and clear worth 0,000 in 2006 will become a house free and clear in 2016 worth ,000. Remarkably, that ,000 will probably buy the same goods and services as 0,000 did back in 2005. You see, it's just a numbers game. Although, if you had sold the 0,000 and PRESERVED YOUR CAPITAL and waited 10 years you could be BUYING 10 HOUSES at the 2016 bottom. FREE AND CLEAR! So, the house (three bedroom, two bath, 2 car garage with 1,250 square feet of living space on a 6,000 square foot lot) I sold for ,000 in 1968 became the bubble inflated 0,000 property in 2006. It was financed with a nothing down "liar loan" in which a person with good credit was allowed to state (not prove) his income. I am here to tell you once again that we have had our runaway inflation. That house is now 0,000 and heading for ,000 and maybe even back to that ,000 number in year 2016 - 2018 or so - a drop of 90% plus. We will have a very large pernicious real estate deflation. It will wipe out trillions of dollars in value worldwide.

The greater fool theory is selling to a bigger fool at ever higher prices. We all have been players in the game. Now, even rent prices will fall. Banks, insurance companies and REIT's (real estate investment trusts traded as stocks) will... Next, go to my website

Copyright 2010 - http://www.deflationeconomy.com Reprint rights allowed with attribution back.

What About Real Estate Deflation In The Greater Depression?
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What is deflation? How to survive and get rich in the coming GREATER DEPRESSION. Get FREE 60 page DOWNLOAD "What Is Deflation" eBook at: http://www.deflationeconomy.com.

Delwyn Lounsbury THE DEFLATION GURU He is an Eagle Scout. He has been an award-winning real estate agent in California since 1968. He published The Economic Survival Letter in the late 1970's.

Email: delwynlounsbury@aol.com Phone: 925-575-1735

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