MAY 2011 NEWSLETTER

MAY 2011 NEWSLETTER

Hello member

If "April showers bring May flowers" then with all the storms last month, May flower gardens should be bursting with color. Learn a lesson from Nature, and take steps to turn this 'stormy' economy into an opportunity for your business. Last month I talked about getting your property ready for sale: I hope you did because for most of the country prime selling season begins now. If you want to read more about it (or refresh your memory) check out my April Newsletter READ APRIL NEWSLETTER

Have a great month!

Paul

Greetings!

Real Estate Investing

This month I want to talk about two incidents; one that happened to me and another that one of our members has had to deal with.

Most of you know I am big proponent of direct mail. I recently purchased a list of home owners based on criteria that required the owner to have at least 40% equity in the property. I purchased this list in two zip codes. The results were great: I have been able to purchase two homes and am doing a joint venture with two more. But now to my issue.

When we go to look at a house, most of us take our own safety for granted, and the home owners do as well. We never really think how things could go wrong. I got a call from a home owner who wanted to sell her house quickly. This was a home she inherited and it

was completely furnished. We agreed to meet at the property. When the lady arrived I was already there and waiting for her. This lady is in her mid 60's and did not know me from Adam, but she let me in to her house without a second thought, AND without asking for any kind of identification or 'code word'.

Now I am an adorable fat Italian so, of course, she was safe, but what if I was a dirt ball? She came alone and did not weight more than 110 lbs on a good day. The area was not very visible from the road, and with the wrong person she could have been in real trouble.

We need to do a better job thinking about security: ours and our clients'. Make sure our clients understand that they need to think safety first. Take precautions when agents and other people come to see their house or to do repairs. We need to think of our own personal safety when we go to see a house - do we really know whom we are seeing? Just because we talk to a nice old gent on the phone doesn't mean that's who is going to open the door. I believe we need to notify friends or partners where we're going, how long we will be there, and remember to call when we are going to be late or when we're finished. I would like to hear what you, the members, think about this issue and what you suggest would be a good safety tip you would like other members to have. Just send me an email. Next month I will post some of the ideas our members have given us.

Now for issue number two. I got a call from a member who has a couple of rental homes. One of his tenants filed a complaint to the State that his security deposit money was misused. Apparently when the tenant moved out the landlord said he was keeping the security deposit because of damage. The tenant proved the place was in good condition and requested his refund. He also requested interest since he was never notified where the landlord placed his funds. After talking to his attorney the landlord paid the money since he now understood he violated the Florida Statues. I have included the Statues pertaining to how we need to handle advanced rents and security deposits.

83.49 Deposit money or advance rent; duty of landlord and tenant.-

(1) Whenever money is deposited or advanced by a tenant on a rental agreement as security for performance of the rental agreement or as advance rent for other than the next immediate rental period, the landlord or the landlord's agent shall either:

(a) Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution for the benefit of e tenant or tenants. The landlord shall not commingle such moneys with any other funds of the landlord or hypothecate, pledge, or in any other way make use of such moneys until such moneys are actually due the landlord;

(b) Hold the total amount of such money in a separate interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants, in which case the tenant shall receive and collect interest in an amount of at least 75 percent of the annualized average interest rate payable on such account or interest at the rate of 5 percent per year, simple interest, whichever the landlord elects. The landlord shall not commingle such moneys with any other funds of the landlord or hypothecate, pledge, or in any other way make use of such moneys until such moneys are actually due the landlord; or

(c) Post a surety bond, executed by the landlord as principal and a surety company authorized and licensed to do business in the state as surety, with the clerk of the circuit court in the county in which the dwelling unit is located in the total amount of the security deposits and advance rent he or she holds on behalf of the tenants or $50,000, whichever is less. The bond shall be conditioned upon the faithful compliance of the landlord with the provisions of this section and shall run to the Governor for the benefit of any tenant injured by the landlord's violation of the provisions of this section. In addition to posting the surety bond, the landlord shall pay to the tenant interest at the rate of 5 percent per year, simple interest. A landlord, or the landlord's agent, engaged in the renting of dwelling units in five or more counties, who holds deposit moneys or advance rent and who is otherwise subject to the provisions of this section, may, in lieu of posting a surety bond in each county, elect to post a surety bond in the form and manner provided in this paragraph with the office of the Secretary of State. The bond shall be in the total amount of the security deposit or advance rent held on behalf of tenants or in the amount of $250,000, whichever is less. The bond shall be conditioned upon the faithful compliance of the landlord with the provisions of this section and shall run to the Governor for the benefit of any tenant injured by the landlord's violation of this section. In addition to posting a surety bond, the landlord shall pay to the tenant interest on the security deposit or advance rent held on behalf of that tenant at the rate of 5 percent per year simple interest.

(2) The landlord shall, within 30 days of receipt of advance rent or a security deposit, notify the tenant in writing of the manner in which the landlord is holding the advance rent or security deposit and the rate of interest, if any, which the tenant is to receive and the time of interest payments to the tenant. Such written notice shall:

(a) Be given in person or by mail to the tenant.

(b) State the name and address of the depository where the advance rent or security deposit is being held, whether the advance rent or security deposit is being held in a separate account for the benefit of the tenant or is commingled with other funds of the landlord, and, if commingled, whether such funds are deposited in an interest-bearing account in a Florida banking institution.

Subsequent to providing such notice, if the landlord changes the manner or location in which he or she is holding the advance rent or security deposit, he or she shall notify the tenant within 30 days of the change according to the provisions herein set forth. This subsection does not apply to any landlord who rents fewer than five individual dwelling units. Failure to provide this notice shall not be a defense to the payment of rent when due.

(3)(a) Upon the vacating of the premises for termination of the lease, if the landlord does not intend to impose a claim on the security deposit, the landlord shall have 15 days to return the security deposit together with interest if otherwise required, or the landlord shall have 30 days to give the tenant written notice by certified mail to the tenant's last known mailing address of his or her intention to impose a claim on the deposit and the reason for imposing the claim. The notice shall contain a statement in substantially the following form:

This is a notice of my intention to impose a claim for damages in the amount of ____ upon your security deposit, due to ____. It is sent to you as required by s. 83.49(3), Florida Statutes. You are hereby notified that you must object in writing to this deduction from your security deposit within 15 days from the time you receive this notice or I will be authorized to deduct my claim from your security deposit. Your objection must be sent to (landlord's address) .

If the landlord fails to give the required notice within the 30-day period, he or she forfeits the right to impose a claim upon the security deposit.

(b) Unless the tenant objects to the imposition of the landlord's claim or the amount thereof within 15 days after receipt of the landlord's notice of intention to impose a claim, the landlord may then deduct the amount of his or her claim and shall remit the balance of the deposit to the tenant within 30 days after the date of the notice of intention to impose a claim for damages.

(c) If either party institutes an action in a court of competent jurisdiction to adjudicate the party's right to the security deposit, the prevailing party is entitled to receive his or her court costs plus a reasonable fee for his or her attorney. The court shall advance the cause on the calendar.

(d) Compliance with this section by an individual or business entity authorized to conduct business in this state, including Florida-licensed real estate brokers and sales associates, shall constitute compliance with all other relevant Florida Statutes pertaining to security deposits held pursuant to a rental agreement or other landlord-tenant relationship. Enforcement personnel shall look solely to this section to determine compliance. This section prevails over any conflicting provisions in chapter 475 and in other sections of the Florida Statutes, and shall operate to permit licensed real estate brokers to disburse security deposits and deposit money without having to comply with the notice and settlement procedures contained in s. 475.25(1)(d).

Dori's Corner

Dori 1

Hello Members!

We had another exciting month! I picked up a great home at auction and we are under contract with a closing scheduled for early May. Lover boy's direct mail campaign is a big hit: so many calls my paws are sore getting packages ready for the meeting. We have a couple more condos in Atlanta that need rehab and are perfect for investors looking to add cash flow properties to their portfolios. Send me an e-mail and I will get you some info

E-MAIL DORI

Also looking to sell a couple of rental homes that need rehab work. I would love to do a JV with someone; just send me your info and I will get lover boy right on it. Talk to you next month! Dori

And Now A Moment With Dan

If You Want More, Make Yourself More Valuable

Dan Kennedy, The

"Millionaire Maker"

The mayor of a small town once wrote to Benjamin Franklin asking for a donation so the town could buy a bell for its town square. Franklin sent money with a note suggesting they forego the bell in favor of buying books for the town library. It is at the library we might find an answer to why so few succeed and why most fail - at anything, at everything.

Most people do not apply themselves to acquiring know-how nor apply the know-how they acquire. In short, they have the attention span of a gnat, the diligence of an idle, random breeze. They certainly don't study.

I have become quite rich and somewhat celebrated, reaching the pinnacle of success in not one but three different fields. At each required skill-set, I once sucked. For me, there has always been a crawl to competence, then a fast rise to superiority. Part of the process is getting through of a lot of information in a hurry but also continuously. For nearly 25 years, I read a book a day plus newspapers, trade journals, newsletters, visited the public library weekly; took on a needed skill and so thoroughly and intensely studied it as to become a world class expert. When I was teaching myself to be an advertising copywriter, for example, I studied no less than an hour everyday, listened to recorded material on the subject constantly, sought out and got to know the top people in the field, and when one told me to take great direct-response ads and write them out longhand 21 times each, to teach my subconscious the rhythm of such writing, I did that with 100 ads. I collected over 200 books on the subject and immersed myself in them. I built organized files of samples that fill a room. I traced one master back to his teachers, they to theirs, thus even knowing the genealogy of the field. When I am asked by fledgling or journeymen copywriters how they, too, might have clients waiting in line to pay them $100,000.00 fees when there are thousands of copywriters advertising their availability for 1/10^th that or less, and I tell them this answer, they reject it. They seek rewards out of kilter with their value and are unwilling to do what is necessary to build up their value.

The same answer could be given by the top earners in insurance, real estate, retail store ownership, dentistry - name the business or profession. The answer is the same.

I am told by people all the time that they simply do not have time to read and listen to all the material they have purchased or subscribed to. But time is democratic and just. Everyone has the same amount. When I choose to read with my mid-morning coffee break and you choose to blather about trivia with friends; when I choose to study for an hour sitting on my backyard deck at day's end but you choose to watch a TIVO'd American Idol episode, we reveal much. When someone says he does not have the time to apply himself to acquiring the know-how required to create sufficient value for his stated desires, he is a farmer surrounded by ripe fruit and vegetables, whole grains and a herd of cattle on his own property who dies of starvation, unable to organize his time and discipline himself to eat.

Incidentally, success in every business, including yours, depends on mastery of a handful of critical competencies (one of which is always marketing). The individual who sets out earnestly and diligently to acquire a wealth of know how in each winds up with wealth in his bank account. All others watch with envy and cry in their soup, two activities they do seem to find time for.

The WHY PEOPLE FAIL articles are provided by Dan S. Kennedy, serial entrepreneur, from-scratch multi-millionaire, speaker, consultant, coach, author of 13 books including the No B.S. series (www.NoBSBooks.com), and editor of The No B.S. Marketing Letter. WE HAVE ARRANGED A SPECIAL FREE GIFT FROM DAN FOR YOU including a 2-Month Free Membership in Glazer-Kennedy Insider's Circle, newsletters, audio CD's and more: for information and to register, visit

ARRANGED A SPECIAL FREE GIFT FROM DAN FOR YOU including a 2-Month Free Membership in Glazer-Kennedy Insider's Circle,

newsletters, audio CD'sand more: for information and to register, visit:

FREE GIFT FROM DAN

Listen To Clip From My Radio Interview

Sincerely,

Paul J. DaCosta

Paul J Da Costa and Associates INC

Monthly Quotes Intellectual growth should commence at birth and cease only at death Albert Einstein Whoever undertakes to set himself up as a judge of Truth and Knowledge is shipwrecked by the laughter of the gods. Albert Einstein "There are two ways to live: you can live as if nothing is a miracle; you can live as if everything is a miracle." Albert Einstein