|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
|
|
September 2010
|
|
| S |
M |
T |
W |
T |
F |
S |
| |
|
|
1 |
2 |
3 |
4 |
|
5 |
6 |
7 |
8 |
9 |
10 |
11 |
|
12 |
13 |
14 |
15 |
16 |
17 |
18 |
|
19 |
20 |
21 |
22 |
23 |
24 |
25 |
|
26 |
27 |
28 |
29 |
30 |
|
|
|
| | |
|
|
| Where Do You Want to Invest This Year? |
|
|
|
 |
Real Estate For Busy Professionals Blog
Jerry Jones
Welcome to the Members-Only Blog Area.
| Tuesday, Nov 04, 2008 |
| Depreciation - How to Use It to Your Almost Unfair Advantage |
| By Jerry Jones |
| Tuesday, Nov 04, 2008 02:52 |
| The last couple of posts I've written, I've talked about depreciation some.
You know what BAD depreciation is (see last two posts).
So what is GOOD depreciation?
Answer: The kind that is associated with Real Estate Investments!
OK, so smarty, here's the real definition for Depreciation associated with real estate investments...
Checking my handy-dandy Barron's Real Estate Guide, here's what if says:
"Realty that is subject to deductions for depreciation. Depreciation here, is allocating the cost of an asset over its useful life."
What that means is that every year, you get to DEPRECIATE your property and take a DEDUCTION OFF YOUR TAXES for this depreciation.
How cool is that?
I'll tell you...but you have to wait for the next BLOG post. But, trust me, you'll like it even more, and then, all this depreciation stuff will tie in together.
Oh, BTW, if you've bought a new car in the last 2 weeks AND have been a reader of my Blog, SHAME ON YOU!
Adios, Jerry |
|
Permalink
|
| Wednesday, Oct 15, 2008 |
| Follow-up to last Blog Post...BAD Investments So what is the definition of a Depreciating Asset?
|
| By Jerry Jones |
| Wednesday, Oct 15, 2008 02:42 |
| In my last blog post I mentioned them.
To define, let's first define 'Depreciation.'
1) Depreciation in accounting terms means, "allocating the cost of an asset over its estimated useful life."
2) Depreciation in tax terms means, "an annual tax deduction for wear and tear and loss of utility of property."
3) Depreciation in automobile terms means, "a decrease or loss in value due to age, wear and tear or market conditions."
Believe it or not, there are more definitions. Would you believe it also means, "an instance of disparaging or belittlement?"
OK, so what are we talking about?
For the conversation yesterday, let's focus on 3.
Do you have a new or newer car?
In the last 5 years, I've had 6 new (to me) cars. The cheapest one, a new Dodge truck, cost just under $40,000. I owned if for 3 years. I just sold it for $21,000. I put 39,000 miles on it. Can you believe I spent, after tires, maintenance, insurance, etc. are considered, over 70 cents a MILE just to look cool and feel good?
I just bought back a 2004 Lincoln Navigator I originally bought new for $59,000. I sold it for about $28,000 after 2 years. I just paid $13,000 to buy it back. It has only 72,000 miles on it and is in great condition and runs very well with a 2 year warranty remaining.
In an estimate of fast math just now, I figured I have spent over $250,000 on worthless sheet metal with motors and brakes attached in the last 5 years.
If I had that invested in 12% student loan notes which my dental assisting school sells, any idea how much I'd have made over a period of just 24 months? A lot.
The lesson here: DO NOT BUY NEW CARS. Stupid people with small brains and a personality disorder buy new cars. I can say that because I am a reformed New Car Buyer. If you're buying new cars, THINK before doing. THINK about your kids or grandkids or spouse or favorite non-profit...heck, even your retirement plan!
Instead, buy used. 2 year old or older. Let some other moron swallow the depreciation.
You know, I even KNEW I was the moron at one point, but my ego didn't care.
Financial literacy, as Robert Kiyosaki says, is the beginning of your wealth education. Get literate. Figure out what terms like DEPRECIATION mean and USE that to your advantage.
Next Blog Post: Depreciation and USING it to your practically UNFAIR advantage in... REAL ESTATE Investments!
Adios, Jerry |
|
Permalink
|
| Wednesday, Oct 15, 2008 |
| The Worst Investment Every Dentist is Guilty of... |
| By Jerry Jones |
| Wednesday, Oct 15, 2008 10:34 |
It's been too long and I've been too distracted with other 'stuff' to BLOG, but now I'm back.
I know, I know, you're so excited you can hardly keep yourself from hitting DELETE.
But, hang on...The next couple of BLOG posts will be well worth your time, especially in THIS economic climate.
Why?
Well, because now seems like an appropriate time to mention the worst investment ever:
It's not necessarily stocks. It's definitely not real estate (contrarily, now is about the best time EVER to be an investor).
It's NOT your home.
It's not your ex-wife. (Although some clients I know have no choice!)
Quite honestly, it's...
Vehicles.
Yes. Cars. Trucks. SUVs. (Note: I am not talking antiques.)
Most of us are involved in this really, really stupid trap.
And, I'm super guilty.
We buy depreciating assets, like cars.
You know: Crap that devalues the instant we take possession.
Granted, sometimes it can't be avoided.
However, my experience tells me most of time it can be.
Where does the problem start?
Simple. MOST folks out there don't understand the word 'depreciation' nor do they understand how to COMBAT it.
My next couple of emails will speak to both these subjects.
We'll get into what depreciation can mean (bad and good).
And, I'll hit the easiest things you and I can do kick the crap out of it.
After all, it's robbing us blind; most of us ignore it. Smart people USE it to their advantage!
Adios, Jerry |
|
Permalink
|
|
|
|
|
 |
|
|
|
 |
|
|
|
 |
Here's what people are saying ...
A Nice $40,000 Profit...
"Jerry, Matt and I just wholesaled another house that we had
an option on. Optioned it for $135,000 two weeks ago. Needs about $40,000 in
rehab that we do not want to do. Matt ran an ad in the classifieds last week and
put a For Sale Handyman Special sign in the front yard. Also talked it up at the
REIA meetings. Had over 60 responses and 4 offers. Sold it for $175,000. Close
next Tuesday. Nice $40,000 profit for doing virtually nothing. I love this
business."
-Greg Sneyd , Salt
Lake City, UT
$30,000 to $40,000 For 6 Hours Work...
"I’m a member of Jerry’s Over the Shoulder Program and
have done a few deals with Jerry himself, and I can go on and on. This week I’m
about to finalize on two preforclosure properties that will net me about $15,000
to $20,000 on each property. That’s $30,000 to $40,000 for 6 hours work. I
currently have about 16 deals going on at some level with more being added each
week. Just do the math and see what kind of income can be made here and have fun
at the same time. I never dreamed about doing this a year ago."
-Larry K Litman DDS, Champaign, IL
Real Estate is Something Every Person Should Know
About...
"To obtain another stream of income to give piece of mind.
Real estate is something every person should know about. Knowledge is power!"
-Dr. Thomas Zafiratos, Las Vegas, NV
Net Profits in Excess of $200,000...
"Jerry, We’re about to close on several real estate deals that
will net us in excess of $200,000.00. What we learned at your Real Estate Boot
Camp for Busy Dentists was the kick-off point. This truly is an amazing business
and incredibly lucrative. The best part is, I have my kids involved, too, and
they are developing and using skills to earn very substantial incomes that will
last a lifetime...even through good and bad economic times. THANK YOU!"
-Dr. Larry & Mrs.
Gail Litman, IL
There is Huge Opportunity...
"Jerry, I believe that to be successful that you have to be
counter-intuitive. This is not for everyone. It is only for people that can
be open-minded and take massive action on this information. There is huge
opportunity for us to help other people (get out of a bad situation) which
is the same reason we become dentists to begin with. Thanks Jerry and
staff!"
-Dr. Daniel D. Finn, Perry, IA
$4.8 Million Dollar Commercial Property...No Personal
Money Down...
"We applied one strategy that
we learned and successfully negotiated a Letter of Intent for a $4.8
million dollar commercial property that only required us to put down
$50,000 (and not even use our money for the down payment!). You and your
instructors are all experts in the varying aspects of real estate
investing, and I highly recommend your training to any dentist and their
spouse, business partner and friends who have the desire to create
wealth and supplement their current income and add to their retirement
portfolio. I’ve been a perpetual student of real estate investing for
over 20 years and your training is perfect for anyone who has an
interest in furthering their education and knowledge base. Whether
they’re brand new to real estate, or a seasoned investor, your Real
Estate training is a valuable asset that continues to payback
infinitely."
-Frank William Wolf, DDS, Cave Creek, AZ
| | |
|
About Jerry Jones
Back