Landlord Protection Plan (LLPP) & Tax Appeal

 tax bill2013 was the first year we implemented our proprietary LLPP. The results speak for themselves in hard numbers. Our real estate tax appeals delivered terrific results and some of you can see the results by double clicking the chart below.

ESCROWED TAXES ANDS INSURANCE

 If your property was not on the list, email me at asalmeri@nationaleraservicing.com and I will get your results. Our specialist for the appeals had a computer crash and lost all of his data after the process was complete. Thus, send me an email and I will forward you your results.

 Property assessments will be aggressively raised by the county property assessors as values continue to rise in the Atlanta Metro area. It is critical to stay on top of this every year or you are certain to pay more for property taxes. The question is: How much more? If you do nothing, you are at the mercy of the county assessor who probably wants a salary raise. So, if taxes go up, more money for the county coffers. At the end of this newsletter, Jeff George our tax appeal specialist, explains in detail the property appeals process. It will be obvious to you why it is so important to have a specialist involved for this process.                      

 We file on average 10 evictions a month as part of our training of tenants. Most of these are resolved but it still costs an average of $100 to file evictions or $150 for a warm body to handle it in court.

 In case you forgot, under LLPP you never pay for an eviction as that is part of the LLPP service.

 We see a big difference as our educated tenants know that we are inspecting their home three times a year and from our side, the results are overwhelmingly positive. This service is like an umbrella insurance policy on your property and it is proprietary to National ERA Servicing.

Letter of Appeal

  •  Our tax advisor Jeff will file a Letter of Appeal on your behalf, thus disputing the value listed on the Annual Notice of Assessment. The Letter of Appeal will be filed before the county appeal deadline.
  • The county receives and processes the Letter of Appeal submitted by Jeff.
  • The county assigns a staff appraiser to review the property and the disputed value.
  • The county may issue a response to the property owner. The response acknowledges that a letter of appeal has been received by the county and that the parcel value has been placed under appeal.The county’s staff appraiser reviews the value issued on the Annual Notice of Assessment.
  •  The county’s staff appraiser reviews the property characteristics, sometimes by visiting the property.

Following a Board of Assessors’ Review

The county will issue one of two possible letters: A “No Change Letter”: This letter indicates that the county has deemed their value to be appropriate. (Jeff) will receive this letter if the county stands by the value listed on the Annual Notice of Assessment). The appeal moves forward automatically; no action is necessary by Jeff at this time.

  •  A “30-Day Letter”: This letter indicates that the county has revised their opinion of the parcel’s value. (I will receive this letter if the county changes the value of the Annual Notice of Assessment). Jeff will respond to this 30-Day Letter by either accepting the revised value listed on the letter or Jeff will reject the value listed on the letter.
  • Accept the Value: Jeff will look at the new value offered by the county. After further research, if we determine the new value is acceptable and fair, then we will accept the new value listed on the letter. After the letter is signed and accepted by the county, the new value becomes the final value that is used for the tax year bill. The appeal is completed.
  • Reject the Value Jeff will look at the new value offered by the county. After further research, if we determine the new value is not acceptable and fair, then we will reject the value offered by the county. The appeal moved forward to the next step.
  • The appeal process ends if the revised value is not rejected by Jeff within 30 days. This will ensure that your appeal moves forward.Boards of Equalization Hearing—(BOE)
  •  After the Board of Assessors’ review, the appeal is “certified” to the Boards of Equalization.
  • A hearing is then scheduled by the Boards of Equalization to establish a value for the parcel (We have almost no influence on the selection of a hearing date or time).
  • The county issues a Hearing Notice to Jeff, typically 3-4 weeks in advance of the hearing date.
  • The county’s staff appraiser prepares a case to present at the hearing.
  • Jeff prepares a case to present at the hearing.
  • The hearing occurs, and the two appraisers present their respective cases.
  • Based on the evidence which is presented, the members of the Boards of Equalization (usually a panel of three members) will establish a value for the parcel.
  • Within 10 days of the hearing Jeff is issued, by certified mail, a Decision Letter to announce the outcome of the hearing.

After 30 days, the value established by the Boards of Equalization is used to update the county records, unless the property owner wishes to appeal the value further, to Superior Court.

FAQ / Myths

“They lowered my value last year so I will not be successful with an appeal this year”

In some states the assessment of property is mandated yearly. In Georgia, for example, there is a “freeze” placed on the market value after an appeal is settled. This “freeze” in market value is only from an increase in market value. If your property has decreased in value you may still appeal and still get a reduction.

 The assessor will correct my market value if they find that if it is incorrect”

Legislative statute in many states prohibits the assessor from “arbitrarily” changing market values. The value that is placed on your property is assumed to be correct unless you appeal the value. In Georgia the taxing authority must prove their value when that value is appealed.

Final Note from Jeff:

Lower Property Taxes

Fighting local government about your property tax valuation is more complicated than you think and most investors/property owners have neither the time nor the expertise. Most taxing jurisdictions have a complicated and time consuming process that must be followed to ensure the correct valuation is achieved. That is why property owners are encouraged hire a professional like Jeff to review and audit the valuation created by the county.

Most counties use a mass appraisal methodology in their valuation models. There is no conspiracy by the counties in this approach. The methodology simply creates a more favourable cost vs. benefits result. Counties do not have enough resources to review each property and simply use templates to apply to other similar type properties.

 

 

 

Higher Home Prices But Fewer For Sale

house 4 saleWe are in the best season for rentals in the U.S. and we rented over 20 properties in March and expect to rent 40+ in April. We are already over 35 houses for April and it’s only the 16th of the month.

 Buy Cash Flow Properties, our only turnkey operator that we manage for, continues to provide us 15 – 25 houses per month that get placed into property management.

 The real estate market continues to go up in Atlanta as the supply of houses shrink and the demand continues to grow. Look at the article published in the Atlanta Journal Constitution on Wednesday March 26, 2014 with the headline: Higher Home Prices But Fewer For Sale

http://http://shar.es/TzuXr

Click Here

There is an old saying we cherish: “Business is good or bad in between your ears”. We live in the greatest country in the world that is ripe with opportunity for those that have the initiative to take action and create a better life for themselves. We have many investors that have replaced their income from a job with rental houses. Last week one of our French investors closed on an executive type house for $257,000 and we had a cash offer from a home buyer within 24 hours for $335,000. He sold it and is buying two more.

 Now that’s exciting, especially if you’re the investor.

 If you would like to increase your holdings in the Atlanta area, simply email RJP@BuyCashFlowProperties.com or call RJ direct @ 813-495-3006.

Changes you should know about:

  1. Beginning this month, April 2014, we are using a cutoff date of the 25th of every month for reporting purposes as well as distributions. Any funds not collected by that time, will be reported and or distributed in the following month or quarter.This was necessary for us to become timelier in our reports to you.
  2.  Emergency Repairs – These will be handled without your approval to avoid personal injury to tenants or others. Regardless if the repair is over $500, we cannot afford to wait for your approval if a tenant’s AC goes out in summer or frozen pipes in winter. This past winter was one of the coldest in decades in Atlanta and on one crisp 8 degree day, we had 46 broken water pipes! They were all repaired within 3 days because we used Buy Cash Flow Properties crews at their costs. Thus, if one of these houses were yours, we saved you a lot of money by preventing much bigger repairs by getting there fast and getting it done at actual cost without any mark up in fees to you.

            

 

 

Team Atlanta

If you’re going to build team atlantaa building, you must have a solid foundation to build upon.

 Likewise, if you’re going to build a company, it is imperative to have your core people in place for sustainable growth.

 Candidly, our growth came about so fast that we imploded with more work and not enough bodies to go around to get everything done in our self-imposed time frames.

In our effort to serve you better, we’ve made significant changes to improve efficiencies for lease ups, collections and distributions. The implementation of our new methodology will impact every investor in the long run. Change is never easy but it is always necessary to stay relevant in any business.

 Sometimes you have to take one step backward to leap 3 steps forward and we are in the process of leaping forward right now.

 In Tampa, we now have 3 full time bookkeepers and 1 personal assistant for all sorts of important details. Kim is the senior bookkeeper, Elsa is the investor liaison, Melissa assists both Kim and Elsa and Beth supports the entire team with clerical type work, like typing this newsletter.

 The biggest and most far reaching change we’ve undertaken is the addition of 5 portfolio property managers. These portfolio managers have the responsibility and accountability for a specific portfolio of properties. All 5 of them have worked for us in different capacities or are known to us and all share a positive attitude and the love for this business. Most of them have prior investor experience and they realize how important the service they deliver will impact the bottom line for you, our investor. Their role is to take phone calls, process applications, handle lease ups, collections, evictions and they are responsible for specific territories.

The picture above has most of the team plus a few International Promoters that sell our properties.

 The picture below is of Eric a Portfolio Manager, Jim Case, who personally oversees all rehabs and turnovers and yours truly, Anthony Salmeri.

anthony,jim,eric

 

team atlanta 1team atlanta 2