Here’s this week’s article for The Cherokee Scout – Murphy NC’s Main Local Newspaper. Enjoy!

Everybody knows who Rock Stars are – hugely famous and successful people in the music business. Different people come to mind depending on your generation. Some people think of Elvis, Buddy Holly, Bob Dylan, Led Zeppelin, Aerosmith, and even some new guys out today who are destined for fame.

Real estate has the same type of people – Rock Stars in their own right. Everyone knows Donald Trump, who is arguably the most famous investor of today. There are many others – Steve Wynn in Vegas, Donald Bren in California, and a list that continues on. In fact, you’ll find several billionaires who owe their fortune to real estate on the Forbes list of the 400 Richest people in America. Realistically, it’s hard to fathom a billion dollars – that’s one thousand million dollars, two hundred million Big Mac combos, just imagine that kind of money. That’s the fortune these men above have accrued through real estate investing.

The good news is you don’t need that much money to be an excellent real estate investor. They key to being a real estate investor is to buy smart, buy right, buy for the investment and not emotion, and don’t stretch yourself financially thin. There are thousands of people who have made themselves financially independent by buying one rental house at a time, and most of them weren’t their class valedictorian. Solid investments are all over the place, and you can find one to meet your own personal needs and goals.
It’s common not to plan for the future, and I find that more and more people don’t have the foresight to do so. You can easily leave the pack and plan for the future, all you need to do is have a bit of foresight, competent counsel, and act. Procrastination on something you know can positively change your future or that of your heirs is as dangerous as idle hands.

There are so many goals you can accomplish through real estate investing that are far more reliable and “real” than what most investment brokers lead you to believe. If you’ve ever been “pitched” a whole life insurance policy, you should know what I mean! STAY AWAY! Many annuities, mutual funds, and stocks are commission makers that are not in your son or daughter’s best interest. Some disreputable brokers use techniques that play on your emotions rather than your intelligence to make decisions for your loved one’s future. Diversification is extremely important, and you should consider an alternative.

Do you dream of your son/daughter going to college? How about them growing up to be a “Rock Star” brain surgeon, teacher, or fill-in-the-blank? Real estate offers so many options that can alleviate your stress in paying for their future. A rental house or a land parcel is a perfect way to invest for the long term.
Consider this simple math:

-Rental Home – $100,000 initial investment (read: purchase price), you have a $10,000 down payment (the minimum investment some whole life and annuities will take), and you obtain a mortgage loan for $90,000.  Your payment would be $594 on a 20 year mortgage at 5% – which is a 33% faster payoff than your average mortgage. Rental income – $600 would pay your mortgage, $750 would be profitable. Let’s say your son/daughter goes to college 10 years after you bought it – Here’s what you’ll have. At $600 per month on your $10,000 investment at only 8% appreciation per year – Equity of $159,892.50 – and someone else paid your mortgage. You don’t have to be the valedictorian to figure out that math works. If you run profitable rent at $750 per month (and factor in NO rental increases over the 10 years), you can stick a free-bie $18,000 in profit in your pocket or pay extra on your mortgage. If you pay extra, you’ll really blow out the formula and have a ROCK STAR amount of equity at a whopping $184,117.17. Your child can go to Yale on one stinking rental house.

-Let’s suppose you don’t want to fool with the trouble of handling renters and their problems because they “forgot” you’re actually supposed to put the shower curtain on the inside of the bath tub. That same $10,000 cash investment at, again, only 8% interest adds up to be an amazing $21,892.50. That will certainly pay for quite a bit of, well, anything.

Facts are facts, the unemotional numbers simply make sense and you too can be a real estate investor and amass your own fortune. If you don’t believe $100,000 rental houses exist or $10,000 land parcels aren’t out there, call me and I’ll have one for you. You and your child’s future depend on it.

Written By: John Poltrock, Certified Residential Specialist – The POLTROCK TEAM at RE/MAX Mountain Properties – Toll Free 1-866-Murphy-NC or 1-866-687-7496 – www.MyMurphy.com

Why is the Government doing this?

            It is a pretty simple concept to understand.  If the Government can pass legislation that grants a tax credit to first time home buyers…it just might stimulate people to buy houses! When people start buying houses it starts a trickle effect on the economy and in the end helps everyone! 

Who is a First-Time home buyer?

            To be deemed as a First-time home buyer the purchaser or his/her spouse may NOT have owned a home during the passed 3 years from the date of purchase of your new home. 

How is eligible for the Tax Credit?

            If you are a first time home buyer that purchases a home between January 1, 2009 and December 1, 2009.

Are all properties eligible?

            NOL This is for primary residences only. This includes single-family homes (example stick built or manufactured), condos, town homes and co-ops.

How much is the Tax Credit?

          The maximum Tax Credit is $8,000. There are 2 factors that determine the amount First-Time Home buyers will get.  

• 1) The purchase price of your home. The Tax Credit is 10% of the purchase price of the home, up to $8,000.
• 2) Buyers Income- Single men and women with income up to $75,000 and married couples up to $150,000 can qualify for the maximum tax credit of $8,000.

What if we make to much money?

          If you are single and make between $75,000 and $95,000 or married and make between $150,000 and $170,000 your tax credit decreases but you still may qualify for a reduced tax credit.  If you make over the amounts stated you do not qualify for any credit.

Do I have to pay back the Tax Credit? 

No!!! J As long as you occupy the home or at least 3 years you do not have to pay it back.  However, if you sell with-in the first 3 years the credit will be recouped on the sale of the home.  

Since laws change every 27 seconds it seems like, if you are interested in the First Time Home Buyers Tax Credit, please call us or contact your local Certified Public Accountant to see how this affects your personal situation. Visit our Murphy NC list of local Recommended Certified Public Accountants.

-Written by Jessica Poltrock of The POLTROCK TEAM – Call us toll free at 1-866-687-7496 today!

            Perhaps Mr. Warren Buffett said it best when he said “Be fearful when others are greedy. Be greedy when others are fearful.” We could even look to Mr. Shelby Collum Davis for some insight when he said, “You make most of your money in a bear market, you just don’t realize it at the time.”

            Many legendary investment strategists are excellent at working through trying times like we are now facing in our country. Call me an optimist, blind, a fool, or anything for that matter, and no matter what you might think of my visions, I believe that we live in the greatest country the world has ever seen and that we will come out on the other end very prosperous as we have time and time again.

            There are many opportunities to come out of the recession very well! As of this writing, there are 809 homes and 2,308 tracts of land available for sale and some of them are just that – they are really on sale. Now is the time when you can buy a rental property and actually come out ahead. There are tracts of land where you can buy them and just sit on them like you would a CD, stock, or bond – the only difference is its real. You can have a garden, go check on it, and its still there. Land has a remarkable historical track record of appreciation and its something you can use and enjoy in the mean time.

            Take the time to go on our website at www.MyMurphy.com and shop what’s available out there. Look for land, look for houses, and really shop. If you have money to invest and you want to find out what’s a “real buy,” call or email and let us take the time do to the research for you and send you a few proposals. There are some great choices out there and if you have cash and/or great credit, you can really leverage yourself in negotiations and save even more.

            Now is absolutely not the time to run scared. Now is the time to be aggressive. If you have cash to invest, and many of you do, why aren’t you investing it? You can buy an investment property while folks are practically giving things away. Everyone around us is scared, and if you follow Mr. Buffett, who obviously has done very well for himself, now is the time to be greedy. Now is the time to buy. Whose advice would you rather take – Mr. Buffett or your broke brother-in-law?

Written by John Poltrock for The Cherokee Scout, Murphy NC’s primary newspaper (to be published in the March 4, 2009 edition) – Call Toll Free 877-837-3002 – JohnPoltrock@gmail.com – The POLTROCK TEAM – Murphy’s #1 Real Estate Team

With the Holiday season coming to a wrap and 2009 young and vibrant, we all are looking forward to a year of progress. President Obama’s term is getting ready to begin, and regardless of whether you are a supporter or not, I’m certain we are all hopeful for an improved economy and a prosperous nation.

Real Estate is a huge opportunity for investment prosperity as our economy continually shows signs of improving. Not only that, there are many choices for homes and land.  The hardest part is just picking which is your favorite! As Donald Trump said, “It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.” You’ll always be able to stand on it, touch it, enjoy it, and ultimately sell something that is real – not just a paper investment.

Real Estate is a low cost opportunity right now as interest rates are continually dropping. You should be certain to contact one of our many local lenders to find the opportunities in place right now. Feel free to visit our “Gotta Guy” list to find several local lenders (that’s our local recommended contractor list). Cost of ownership is extraordinarily low with very favorable county tax rates. For example, current rates for a home assessed at $200,000 will be in the neighborhood of $800 for the year. Homeowner’s insurance runs in the same neighborhood as well. If you purchase land, you shouldn’t need to pay insurance for it since your current homeowner’s policy should protect you for most things under personal liability coverage (be sure to check your own policy to see what specific coverage is offered).

There are many different types of real estate investments in Murphy NC available suitable to practically every budget. We have land opportunities as low as $10,000 and with sizes ranging from lots to parcels with thousands of acres. Looking for a home you can enjoy now or don’t want to build? We have brand new cabins and homes in the low 100’s, and from there, the sky is the limit. You can also search the Murphy NC MLS for free.

The investment standpoint is always a good way to look at it, and with a degree in financial planning, I tend to look that way first. Truth is, that’s only a very small portion owning a property in the mountains. Waking up with a warm cup of coffee overlooking a stunning mountain view is something you cannot even begin to put a price on. Living on a cool mountain river watching trout swim around catching flies is something that simply can’t be replaced. Sitting on a soft leather couch in the evening watching the sunset on the Appalachian Mountains right beside a crackling fireplace is of no comparison.

Now is the time to move from dreaming and to start planning. Come to Murphy! There are many great cabin rental companies and hotels to choose from so you can come and truly enjoy yourself. Curious about the area and want more information about weather, what to do, and more? Contact us and we’ll send you our FREE Murphy NC Information Packet; it’s filled with tons of information about the weather and climate in Murphy NC, things to do, and much more! And until you get here, keep dreaming of mountain views, comfortable weather with four seasons, and great people!

***Be sure to read this article in the January 2009 Edition of our local Cherokee County Newspaper, The Cherokee Scout. You’ll find it and our full page ad in Country Roads.***

John Poltrock, Certified Residential Specialist – Murphy NC – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us Toll Free at 1-866-Murphy-NC or 1-866-687-7496.

            Have you ever bet your life’s savings on the craps table? How about taking a weekend to Vegas with everything you’ve worked for? Would you ever bet everything on one spin of the wheel?  Although Ashley Revell sold everything he owned, traveled to Las Vegas and bet it all on one spin of the roulette wheel, it’s simply not a smart idea. (See below for Ashley’s Vegas Adventure)

            Right now, the stock market looks like a good investment – yet you simply don’t know. This year alone, the Dow has lost 5,228.04 points, or an astonishing 37.1%.  This past Friday it dropped a whopping 1.41% in one day! So I pose my question again – have you ever bet your life’s savings on roll of the dice?

            This past week, a couple who are very good clients of ours wanted to make a pretty sizeable investment – and it accounted for a very large portion of their savings. Where did they put their money? Real Estate. What did they buy? Land. Why did they buy it? Because it was a smart, safe bet. We found two tracts of land that works perfectly for them and are very likely to provide a safe, reliable place to put their money.

            In watching properties on the market, the best properties are getting snatched up at record rates. We sold one of the properties as an investment to the couple above 84% faster than the market average! Why? Because it was a phenomenal opportunity that simply doesn’t stay on the market and you have to act fast for opportunities like it.

            How many times have you heard people, friends and families say, “When this election gets out of the way, things will really turn around.” Mentality of the people you know and of the nation makes a tremendous amount of difference as to when fortunes are made. The election is less than a month away. Would you like to be ahead of the curve and buy an investment while the market is at the bottom or buy when prices are on the way up?

           If you want to find the best real estate investments, call us or your Realtor today before the election and market upswing.  Find out what properties are available, look at them, size them up, and decide what’s best for you. Don’t see what you want? Ask to be set up on automatic notification so you can be alerted as soon as a property hits the market before anyone else has time to find out about it. We would be happy to do this for you for free of charge and start getting your investment portfolio where it should be – well diversified and profitable!

Written by John Poltrock, Contributing Writer for The Cherokee Scout. Be in “the know” by visiting The Cherokee Scout’s Website to have their paper delivered to your door.

Now is without a doubt a great time to invest in mountain real estate in Murphy, North Carolina. Start searching and see what real estate is for sale now in Murphy NC or sign up to get automatic updates of properties for sale in Murphy NC. See what’s out there, make the leap, and know that America has a positive outlook that’s brought to realization only one person at a time.

John Poltrock, Certified Residential Specialist – RE/MAX of Murphy, North Carolina – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us toll free at 1-866-Murphy-NC or 1-866-687-7496 and get The POLTROCK TEAM today!

            It’s easy to question whether now is the time to make the leap and buy or sell real estate in Murphy, North Carolina right now. If you are in a position where you have to buy or sell a home in Murphy right now, you’ve got an easy decision. Fact is – you have to sell because your personal circumstances say you do. Perhaps you’ve got a job relocation, move to get closer to family, health conditions, or whatever the case, it’s a good reason. Where the question really comes in to play is if you don’t have to do anything right now.

            It’s easy to get caught in the mainstream news – look out!! The sky is falling! Albeit a favorite fable, we’re living in a world with a lot of Chicken Little’s.  Every time I watch, read, or listen to the news, there is a good reason to crawl into a concrete bunker and never come out. Between the so-called housing market slump, the presidential election, consumer confidence, and anything else you can throw in, it’s a good time to be nervous about buying or selling real estate.

Here’s the truth: sometimes it pays big dividends to be a naysayer. Depending on your situation, market corrections are the best time to buy and sell.

If you are planning on upgrading to a new home, there’s no better time. Here’s why:

• You have to sell your current home which has a worth of $250,000. Because of high inventory and fewer buyers, you must reduce it 11.74% (Percent change from 2006-2008. Please read our last article in Country Roads for more details.). You sell for $220,650. You “lost” $29,350.
• The home you want to upgrade to costs $400,000. Those sellers too have the same impact from high inventory and fewer buyers. The 11.74% reduction brings it down a whopping $46,960. That means you “gained” $46,960.
• So if you “gained” $46,960 and “lost” $29,350, weren’t you able to buy $17,610 more home than you could buy in an appreciating market? This holds true for any move up, no matter how small or large the sale and purchase is.

Or if you want to buy and don’t need to sell a property, think of this: if rates go up, you won’t be able to buy as much home. FACT is, for every ½ point increase in interest rates, you loose $25,000 in purchasing ability. The Federal Reserve is constantly watching inflation and wants to make sure it doesn’t spiral out of control. With that said – have you bought, well, anything lately? Virtually everything is getting more expensive and that alone may force the Fed to increase rates and therefore cut back your purchasing power.

          When it comes to selling property, now really is a great time to sell. Buyers are getting more active, and more importantly, your equity in your property is still quite healthy. If you’ve owned for a number of years – say 5 years or more, you have great opportunity. You can still profit from your investment because your property has had a great appreciation rate! The most recent one I evaluated appreciated at 4.88% per year since 1998 – and that was on an older, less desirable property! You won’t find rates like that at your local bank, and believe it or not, that’s one of the lowest I’ve seen in some time.

          Despite all the negativity and uncertainty floating around out there, there’s a lot of opportunity right now for both buyers and sellers. Are you considering buying property in Murphy, NC and want to know what properties fit your wish list? Contact us or your local Realtor today! You can get daily or weekly email updates letting you know what’s going on in the market. Want to sell your property in Murphy, NC? Get a complimentary evaluation on your investment and make an educated decision! Call The Poltrock Team or your local Realtor today to find out why this is truly a great time to sell!

John Poltrock – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free at 1-866-687-7496

Everyone seems to be talking about how “bad” the real estate market is right now. For those of you who like to gossip about it, I hate to break it to you. No the sky is not falling!  In fact, now is the time to buy real estate.  Interest rates are still at a historically low rate.  Remember back in the 80’s when the interest rates were around 18%? Your $150,000 mortgage payment would have been a whopping $2,260.63 as apposed to today’s much lower $923.58. How’s that for a difference?

 Many of our local banks and mortgage brokers are true professionals. There are so many mortgages products available today compared to even ten years ago.  First time home buyers have it great with many of the incentive packages being offered right now – such as no PMI (read: fancy acronym for mortgage insurance) and 100% financing. Be sure to do your research and find out which bank offer you the best product BEFORE you fill out their credit application. Want good local bank references? Call me. I’ll be happy to point you in the right direction. You can also visit our Recommended Mortgage Lenders on our Gotta Guy List.

If you think now is the time to sit on the fence – you’re wrong. Ben Bernanke (Federal Reserve Chairman) is considering raising rates to cool rising inflation as a result of the stock market boom and other economic factors. What good is saving $1,000 up front when you’re paying that much or more every year for thirty years on your mortgage? Think long term and you’ll be better off than ever.

Not only that, there’s a lot of choices on the market. Finding and buying your new home is much easier than you think. Call me today at (828) 837-3002 to arrange an appointment to go over all the excellent options you have available. In less than 30 minutes, you can be well on your way to owning your own home.

John Poltrock – REMAX Mountain Properties- www.MyMurphy.com – Call us toll free at 1-866-687-7496

Consumers – there’s something you’ll never hear from most real estate agents. Selling For Sale By Owner Works! Did you know that it works only 20% of the time? You can sell your property on your own and be successful, but the 80/20 rule is stacked against you. Regardless of whether its in my town of Murphy, North Carolina or the heart Washington state, 80% of sellers are unable to successfully sell their home.

Why do you ask? Think of your personal shopping experiences. Think about your largest investments. When you bought an engagement ring, where did you buy it? Where do you have your 401(k) or IRA? Did you buy your ring at a jeweler? Does a well recognized stock brokerage firm keep safeguard over your retirement portfolio? Most of you reading this will agree you work with professionals when looking to make a large purchase or investment. Some of you won’t. Either way, it is the difference between shopping at the Mall and shopping at the Flea Market.

National Association of Realtors (NAR) Statistics show 90% of buyers work with an agent. That’s a lot of buyers. The others look FSBO because they’re looking to buy cheap just like you would look on eBay. They don’t go to FSBOs to spend top dollar because they want to save money just like they would at the flea market! You should want quality buyers who are willing to go to the jeweler to find the perfect diamond. With a Realtor, you won’t have to worry about marketing, signage, market statistics, deed preferences, contracts – any of that.

For Sale By Owner does work. You must ask yourself – do I want top dollar? Do I want to sell as quickly as possible? Do I want help from someone who knows the tricks of the trade? If the answer is yes, find a qualified Realtor. I’d be happy to refer you to a great agent in your area if you don’t know one.

Now ask, Do I want to give someone a good deal? Sell cheaply? Go through all the marketing process? Price my home by what the neighbor says he sold it for? Hope the buyer who might come up doesn’t walk because there’s nothing to hold him? If you answer yes to that, try to sell your home yourself. Try it for a while, but when you see a poker player, ask him or her if they’d go all in on a 20% chance.

John Poltrock – The Poltrock Team – REMAX Mountain Properties – www.MyMurphy.com - JohnPoltrock@gmail.com – Call us toll free at 1-866-687-7496