I pay double digit returns on your hard-earned money

As the real estate cycle changes I now find myself investing again in bank-owned properties. This is how I began 11 years ago at the bottom of the last cycle. What a ride that was!!! Currently the market is much more appealing to a real estate investor than it was back then. What I am buying currently cashflows at 15-20% without financing! Imagine the returns using financed money! As we all know, the banks are in a mess, and getting financed can be a long process. They are so over-whelmed that the simplest transactions take 45 days. Enter…. Private money. This is business with the people for the people! Back to basics! Most people are getting watered-down returns (if any), in part due to the fact that there are too many middlemen and also due to the fact that investments open to the general public have to be ’sanitized’. By this I mean, it has to be ’safe’ and that anyone can do it without using their brain. Unfortunately too many people rely on others to make the most important decisions of their life. We need more accountability from ourselves. Nothing ventured, nothing gained. If you don’t want to think for yourself, you are stuck playing someone elses game, by their rules, and getting paid for your involvement. If your involvement is less, you are paid less. If you really get involved, you will really get paid! This is true for many things. Why not earn more on your money? Numbers don’t lie. I know I can pay these returns day and night no matter what happens, because I do the numbers every day. Whether a property sells or not does not matter with the cash flows that can be generated by these properties. The valuations are so low right now compared to the height of the market, that to build these properties you would be paying double the current prices. I’ll get off my soap box for now, but feel free to contact me and learn how to put you back into control of your finances!

INVESTING FOR YOUR RETIREMENT

As retirement savings, 401ks, IRAs and stock portfolios have come crashing down along with home values, fear has spread throughout a large segment of the population. The fear is easy to understand. People feel that they have no control over what is happening, which is for the most part true. What isn’t true is that you can’t do anything about it. In times of great difficulty, there are always multiple opportunities for those who can recognize it. Real estate is cyclical and always has been. At the peak of the market around the middle of 2005 here in California, housing was highly over-valued. At present time it is highly under-valued. It is like a pendulum, always swinging from one side to the other seeking equilibrium. Any market in which money is made has inefficiencies whether it be real estate or the stock market. In either market to be successful an education is necessary. Being successful entails knowing how the cycle works and most critically, knowing where in the cycle you are. It also entails action. Hindsight is always 20/20. Knowing exactly where the top or the bottom of the market is impossible since the only way you know it is when it has already happened. These turning points may take a while to happen but when they do, they are relatively quick and as people realize it, everyone gets on the bandwagon. For instance waiting for the absolute top of the market to sell is risky, because as everyone else realizes this they put their homes on the market and flood the market. We all know any market is created by supply and demand. Likewise waiting for the bottom can result in missing the boat. On either end it’s like a feeding frenzy but on opposite sides; or ‘froth’ (at the top) as Greenspan coined it. At the top and the bottom many are caught either late or early to the ‘party’. Astute investors always sell before the top and also before the bottom. They are first in the market and also first out of the market. It takes alot of experience and focus to accomplish this. As Warren Buffet said (I think), when everyone is greedy it’s time to be fearful, and when everyone is fearful it’s time to be greedy. At this point fear and panic have generally taken over. Coincidently smart investors are backing the truck up and buying as much as they can get their hands on! To my point…. What are you waiting for? This has been the ‘perfect storm’. Very few people including myself ever thought the market was going to fall so far. Value will not stay this low for very long. Investors are buying properties that are half the cost of what they can be built for, and sometimes for 33% of what they sold for at the top of the market. Rental properties are now cashflowing like crazy, with values poised to climb and regain their true equilibrium. Don’t have money? Do you have an IRA? Use your IRA to buy real estate-we can show you how. If you have money in stocks and CDs, you know how they are doing if you are still even looking at your statements! 3-5 years from now there are going to be alot of new millionaires: those who take advantage of this opportunity. For those of you who don’t have the experience or the desire to be landlords we’ll partner with you to take advantage of this opportunity. Your returns will be truly amazing! For all the clouds around us, there is a silver lining. For those of you who have lost their homes, there is still opportunity for you in the form of ‘rent-to-own’ and lease-options. Just be careful about who you deal with, and realize that some of the landlords will be betting that you don’t or can’t exercise your option, and will be keeping your option money! That’s it for now! Successful investing!!!

Got 3rd grade math? Why aren’t you wealthy?

Real estate investing is about the only field open to just about anyone who can do 3rd grade math. For the average person the entry requirements are about as low as you can get, with the rewards being almost limitless. (See Robert Kiyosaki, Donald Trump, etc.) In these trying times, it can seem like only the big hotshots with money have a chance at a great retirement. With downsizing, out-sourcing, benefit cutting, and corporate CEOs making monstrous salaries and bonuses, the average guy seems to be getting squeezed!

Luckily, there is still real estate!!! And despite the media doom & gloom routine, there is a huge opportunity right around us right now as we approach a bottom in this market. Nationally, there is still a downtrend in housing prices, which most of us would agree with, but you must remember real estate is local and there is always a good deal to be found even in the worst markets. Our local market here in the sacramento area is offering a great entry point right now, both for real estate newbies and the seasoned investor. Seasoned investors are snapping up the deals already, and here in sacramento multiple offers are becoming common again. The low end of the market, specifically the foreclosure market is hot, the mid-range is stagnant, and the high end is okay.

Cashflowing investment property in California on a 30 year fixed rate mortgage (principle & interest)! I thought I’d never say that again after the last several crazy years! The real estate market correction is a healthy allthough in many cases painfull! Many lessons have been learned the hard way.

So why isn’t everybody buying rental properties, if it’s such a no-brainer? The truth is that one of the qualities you need as an investor is financial discipline which comes through education (hard knocks school or otherwise), alot of determination, stamina, resourcefullness, and a somewhat adventurous spirit. You must be okay with alot of advice given freely by friends, neighbors, family, friends who have real estate licenses. Unfortunately most of the ‘expert’ advice you get here will come from news programs, old wives tales, one-liners, and people who have never invested in real estate (or people who invested poorly and had a bad experience). This usually creates a fear among many people, and that will be the end of that great idea! If you listen to this and/or the media too much you won’t do anything period. Most of the news is reported because it’s sensational or bad-whatever gets you to listen. It’s the same with real estate-everyone has heard the landlord horror stories. Okay… enough with the chicken little stuff!

So…. If you were to find a rental property, put 20% down, rent it out, have your tenant pay for the mortgage on it, and get $200-$500 above what it costs you every month, would that be good? Since you bought it discounted from the bank for less than it’s worth, didn’t you just make money? And 1-3+ years down the line you sold it (better yet refinanced, took out money and bought another!)and made a chunk of change, perhaps 100% return on your money? Wouldn’t that be great? Sound like a pipe dream? Some people do it all the time (and in their spare time). You must take the first step.

So… It will be your 1st home and you don’t make alot of money… Even better! You can get 100% financing still if it is owner occupied, or with 3% down, and ask for closing costs to be paid by the seller. Live in it for a year or two (or more), fix it up, sell or refinance, and buy another. That is how I started 10 years ago, and that is why I’m such a die-hard real estate junkie.

Need more to get started? You know that on average, 65% of your wealth at retirement is in your own home? The 35% of the wealth we have other than that is what we’ve managed to squeeze out of a paycheck to save over 30-50 years. With real estate investing done the right way (there are alot of right & wrong ways to do it!), your tenants pay your mortgages, allow you to hold for indefinite periods of time to take advantage of appreciation, and the IRS lets you take advantage of the tax laws to reduce your income tax on top of it!

It’s really a very passive form of investing, and can be done according to your taste-you can jump in full bore, or you can do it at an almost painfully slow and boring way and end up with astonishing results either way. By the way I’m full bore in case you didn’t notice!

Another note… Please do yourself a great favor and stay away from the real estate gurus, investment clubs, etc.. I know-I’ve been there, done that, spent money there, and to be fair did learn some things, but to be truthful, I should have just bought some more real estate instead! All you need is a good real estate agent and loan officer who are investors as well. This is my pitch in case you didn’t notice. All the gurus seemingly have this new product or secret that nobody else has (salesmanship is really what it is). There are no flashy secrets to wealth building, just repeating the same thing over and over, hopefully learning by experiences and applying new knowledge to better replicate again. Sound boring? In essence it is, but I admit I can’t help getting excited about it because it’s so simple yet soooo rewarding. Unfortunately boring won’t get you to sign up for real estate seminars! Good marketing will though- it worked on me. All the seminars had the same affect on me- I got excited, ran around in circles trying the ‘new’ stuff and then realized that I was wasting time, energy and focus-it was just another diversion sidetracking me. I guess it’s human nature to make things more difficult than they are.

First Time Home Buyers-Your 1st REO Purchase!

If you are a 1st time home buyer looking for a deal, now is the time.  If you are at all handy even better, or in the trades, perfect! I started out as a Contractor and in 1998 bought my first fixer which was a bank-owned home (it was ugly!), for 3% down , or $7,000 total! My girlfriend bought one too for about the same. These two homes have financed our retirement plan which is based in real estate. We’ve since rehabbed , sold, kept, and rented out multiple properties, with the emphasis on buying discounted properties and putting in the sweat equity ourselves. All the costs associated with acquiring and fixing up have been paid by our properties. We’ve had alot of good experiences and bad of course, but the good far outweigh the bad. As 10 years have passed we have learned alot, and now are looking ourselves to start the cycle over again, since everything is on sale!!

Sooooooo… what are you waiting for? Let us help you find that perfect property for you! The Realtor expenses are paid by the seller, so it costs you nothing! Are you  thinking we will get all the good deals ourselves? There is so much available right now-more than there are buyers actually! Why re-invent the wheel? Learn from our mistakes and successes alike, and you will move forward faster. Check out our website! Click here

Blue Light Specials

Don’t want to repeat myself too much, but helloooooooooo! Is anyone out there? It is the time to buy!!!!!!!

Discount prices everywhere-it’s like being a kid in a candy store!

In many areas prices are 50% of what they were a couple of years ago, and in some areas multiple offers are becoming common (at least for bank-owned real estate). I know the nay-sayers are thinking (and the media) that prices are still on the way down, and to keep waiting, but I am seeing the smart money buying up homes that are 350K and under. Also wishing I had extra cash to dive in (or cash partner)!  In real estate a good deal is a good deal even in these uncertain times.

It’s a perfect time to find a foreclosure that needs work that’s at a discount price. Putting sweat equity into real estate is a great way to ensure that your great deal will make you money (now or later). You can fix it and flip or hold and rent it out-never thought prices would come down enough to cashflow in California again!

If you are a first-time home buyer, do an FHA loan (3% down-have seller pay closing costs and buy down your rate). If you are at all handy, you should buy a fixer and put your own sweat equity in it until you have enough to take money out and buy another. This is what we have done several times.

For those of you in the construction trades, this is a no-brainer! Did you know on average 60% of your net worth at retirement will be in your home?! (This is what the National Association of Realtors said just the other day).   That means just owning 1 home will provide as much savings as 60% of your working life.  If you work from age 20 to age 60, that is 40 years of work (60% of that is 24 years of work & savings labor!). I don’t know about you, but in my years of contracting I wasn’t able to create any sort of savings, let alone retirement. I paid bills and that was about it!  Everyone also knows that being in the trades is hard on your body. If you are self-employed (like we are), no-one is planning your retirement except you (hopefully!). As far as I am concerned there is no better way to do this. With construction knowledge, you have so much of an advantage over anyone else, as you can accumulate wealth through sweat equity for astonishly little cash.

Even if you are not in the trades, an average retirement is no picnic. Nobody wants to work their whole life and then retire in poverty that I know of.  These days everyone needs to take personal responsibility for their retirement-the days of secure jobs and great retirement are over unless you are a CEO and have a golden parachute or have an inheritance. Relying on somebody else to look out for your financial well-being for your ‘golden years’ involves a huge risk of ending up with potentially nothing.

Anyway…..Enough of the soapbox!!!!! I get frustrated when I see opportunity knocking and not enough people answering! This method of retirement only takes 3rd grade math! To be fair though, it takes alot of work, courage, and determination to do it, and many are not willing to think out of the ‘box’ and take the 1st step which is always the most important one!

It’s simple, and this could be why not so many will do it, because if it was so simple then why isn’t everyone doing it and retired already? It’s a natural tendency to make everything complicated-most of us do, me included! There are so many real estate gurus out there, and people like the idea that someone might have the secret answer to answer all their financial problems. Part of the problem is that you need to pay these people for their ’secrets’. I know . I’ve paid many of them and to be fair have got valuable information from them, but have always come to notice that there is no ’secret’ and that the actual actions needed are extremely simple and involve large amounts of common sense. Talking to people who are in the business and investing in real estate also, is one of the best ways (and cheapest).

And now for my plug! If you are going to buy real estate and using a Realtor and Lender why not use someone  (us of course!) who invests themselves  in real estate for retirement, and who will gladly help you do the same for FREE!

Thanks for reading!

Shortsales, foreclosures…

These are trying times indeed! It seems like that this all we hear about. Many people have been caught up in this mess. There is plenty of blame to go around, but that won’t help anybody in trouble. What will is a little basic information so people know their options, before the bank decides for them! All too often, we are hesitant to call on someone to help, especially when it comes to financial matters. The consequences of not doing anything or waiting too long can be unpleasant, and unnecessarily so.

So here goes! Before you are late on your mortgage payment, call a real estate professional (get a referral ideally) and discuss your unique situation to come up with the best solution. There are 3 basic options, listed from best to worst:

• Loan modification
• Short Sale
• Foreclosure

A real estate professional with expertise in these areas will start ideally by negotiating with the bank to modify the loan in order for you to be to afford to keep making the payments and keep your home-this may consist of modifying the loan amount, interest rate, or stopping the payment from adjusting up. If the bank won’t do this and you can’t make the payments anyway, a short sale might be the answer, where the bank will accept less than what is owed on the loan. Your real estate professional will handle the sale much like a regular real estate listing, except this requires more expertise in negotiating with the bank as well as potential buyers. This can result in an adverse affect on your credit, although many times it is possible to get the bank to report a short sale as ‘paid as agreed’ to the credit bureaus, thus not affecting your credit rating much. Finally, if the bank won’t accept a short sale and chooses to move to foreclosure proceedings, it will stay on your credit report for up to 10 years, greatly affecting your ability to secure financing in general. After 2 years of clean credit history following a foreclosure, you will usually be able to get a mortgage again, although because of this mortgage mess lenders are understandably extra leery of the foreclosure word!!! Sometimes filing bankruptcy can make sense as part of getting through financial difficulties-Consult a reputable bankruptcy attorney on this.

A good real estate professional specializing in this area will outline to the bank their options in resolving the problem, in their perspective (how much will they recover with a shortsale versus a foreclosure, and also how by modifying the loan terms they could mitigate their loss even better). This is all displayed in a simple effective manner in their language (numbers, sales comparisons, net recoverable dollars) and followed through with tenacity!

Your real estate professional will have you sign a ‘do not contact by phone’ form so you won’t be bothered by the bank hounding you! You will be dealing with your agent only, not the bank. Your agent will be dealing with the bank! This way you can concentrate on moving onward and upward.

The silver lining? Real estate is cyclical-what goes up comes down and vice versa. If you can save your credit you will be able to participate in the next up cycle. In the last 40 years california real estate appreciation has averaged around 8% annually. Add to that the ability to leverage financing (20% down equals multiplying your money power by 5 times), you should average 40% return on your money! Hard to beat that!!!

If you are already late on payments, a short sale is still an option and you can stay in your home in the meantime also

Why should you use a buyers agent?

Some people trip over dollars to pick up pennies… Just wanted to address a misconception that some buyers have.  Calling a listing agent will save you money-in other words maybe you can make a better deal and get the agent to cut their commission. The opposite is true actually. This is like representing yourself in court-having a fool for a client! A buyers agent is simply any agent that looks for property for you and represents you.  A good agent knows the local values and neighborhoods, knows a good deal and a bad deal, and as an agent has access to a lot of other important information such as what the seller owes, and if they are motivated, etc. All of this knowledge can be useful in negotiating a great price. Also, when a great deal comes along you need to be ready, willing, and able to move quickly before somebody else snaps it up. This is true of any real estate market whether it is up or down, because the smart money is always fast!!!  A Realtor/Lender Team is a great way to pull this off. The great news is that a buyers agent does not cost you a penny, yet can save you thousands and also keep you from buying a ‘lemon’, or getting the wrong financing. In other words you get an expert (or two)  for nothing. With a team you are leveraging talents and brainpower, like successful people do!

Loan Consultant versus Loan Salesman-what’s the difference?

When you hear the mortgage company ads on radio or TV, most people would say mortgage companies consist of loan salesmen/women. It’s pretty obvious from the language used that they would be correct in this opinion, and they are most of the time. This creates confusion for the consumer and in effect trains the consumer to shop for the lowest rate, which is what everyone wants, correct?! Yes and No!! I guarantee that if you shop around you will always find a lower rate, by simply asking! What invariably happens is that you get what you ask for on the surface, but you will be penalized somewhere else, usually before you realize it, and end up with a loan that could be completely wrong for you. This situation usually results from obtaining a loan from a loan salesman not a consultant. A consultant asks alot of questions, (other than the obvious-what do you make?, what is your credit score?) such as what your short and long term goals are, how long are you going to be in the house, are you trying to make money on this? (a flip,etc), how close to retirement (are you satisfied with your retirement plan & amount), do you want a pre-pay penalty (which will usually lower your interest rate), do you want to pay points (with an explanation why you might or might not want to), etc, etc. Anyone can quote rates without these questions (which is what a salesman wants because it’s an easy sale!),but this is like going in for surgery before the doctor has met with you, done tests and consulted with you! Who would do that!!?? In the loan business, many people get a loan in just this manner!!! This is great for the loan salesman and terrible for the consumer, and creates a bad environment for the true loan consultants. There is so much B.S. flying around that it’s hard to see. It’s like a snowjob!

My background as a General Contractor, Real Estate Investor, and Mortgage Professional, brings a more comprehensive knowledge to my clients. My own experiences and successes in all these professions is what motivates me to help others, since I know what I’ve been able to accomplish myself utilizing what I’ve learned. My mission is to show others how to use mortgage financing in particular to create extraordinary wealth. This entales a thorough understanding of each client’s unique circumstances and their goals, in order to lay out options to attain these goals. I need to know exactly where they are now and where they want to go, to be able to offer any value. As advertising essentially trains the consumer that a mortgage professional is not the person to seek financial advice from, most people are surprised that I ask the questions I do ask. They end up being pleasantly surprised that I care enough to really help them!! What a concept!!!

How many dogs are pulling your sled?

Most people own one home. At retirement age 50% of a typical person’s net worth is in their home. The other half they worked for over 30-35 years! The net worth that is in their home has got there mostly from time going by, some of it by payments to principle, and some of it by remodeling and other ways of increasing value. Most people understand how much real estate has increased over the last few decades, especially if they decided to sell it!! The average appreciation over the last 25 years has been 6.5% annually in California, around 2% more than the national average.  If we accept the premise that real estate has been an appreciating asset for a long time and that it will continue to do so, then having more than 1 property would seem a great idea. The largest contribution to appreciation is the passage of time. Normally, time going by doesn’t seem like a good thing, since we’re all getting older! However with real estate it is the greatest thing! As long as you can hold onto it and not have it adversely affect your income and life, then it is a win-win game. Rentals are great in that you are able to control property, yet not pay for it, as your tenants are doing this for you. There are many loan programs out there that allow a positive cashflow with 20% down. These go by many names such as Option ARMS, Cashflow ARMS, etc. These have gotten a bad rap from some, especially the media. In the wrong hands they are a recipe for disaster, in the right hands & with professional guidance they are a powerful tool to gain extraordinary wealth. So… How many dogs are pulling your sled? Let’s add some dogs so we get to our goals and dreams faster!!! Even if you don’t have any dogs now, with good credit you may obtain your first with 100% financing and a low pay rate. A $400,000 loan can be had for as low as $1320/month for the first year. With 100% financing it is important that you have a plan for creating equity by creating value in a financially conservative way-doing the work yourself for example, doing cheap improvements like painting, putting in plants, etc. The goal is to create 20% equity as rapidly and cheaply (this doesn’t mean tacky by the way) as possible, in order to refinance into a lower and more stable interest rate. This particular program offers the lowest pay rate I’ve found and thus is the least monthly cash outlay to the lender, allowing the borrower to create their own equity faster. Lenders reward borrowers for having more equity, as it means less risk for them. I guess that’s it for today!

Mortgages in your Toolbox

Banks make money using your money-lots of it! Are you???

Banks love savers. Banks loan out about 10 times the amount of their deposits (or more correctly, your savings), to make a better return than they are paying you.

Your home and or rental properties can be viewed as a personal bank. Just by being able to hold onto them for a time period results in their growing in value. In California, during the last 25 years, the average appreciation has been 6.5%, around 2% more than the national average. Now… a 6.5% return on your money doesn’t seem very exciting does it? Of course not! That is a miserable return on your investment (ROI)!Now comes the exciting part, which is using leverage. A mortgage is a tool that has been typically seen as a necessary evil involved in being able to own your own home. The by-product of this is a powerful way to leverage a small amount of money, to create extraordinary wealth!! People who have used this knowledge to their advantage have reaped incredible rewards, transforming their own lives as well as many others.

A typical home purchase would involve usually a 20% down payment, and financing the other 80%. Thus, a $500,000 home would only require $100,000 of your money. The appreciation would be gained on the $500,000 amount not just your money, thus multiplying the power of your money by 5 times. 6.5% times 5 equals 32.5% return on investment (ROI). Try that with a mutual fund!! This is a still a pitiful return in my view. It is based on averages and does not take into account some of the best features of real estate, such as:

1. We’ve all heard of LOCATION LOCATION LOCATION!!! It doesn’t take a rocket scientist to pick a good location, just common sense! You can beat the averages easily here!!

2. Control. (not like the stock market or retirement plan!) A home is a readily marketed item at the right price-everyone needs a home!

3. Financing through mortgages. You can invest anywhere from $0 (100% financing with seller paying closing costs-very easily done) to paying 100% cash. Using averages, 80% financing would give you 32.5% ROI, 90% financing would give you 65% ROI, 100% financing would give an infinite return!

4. Management of equity. Extremely important and often overlooked. You can manage the amount of equity that you are putting into your real estate by the use of different types of loan products. This is a little more sophisticated and requires planning, financial responsibility, and a true commitment to your goals. One of these tools is the “Option ARM” also known by many other names. It allows for paying a lower monthly payment than the interest-only payment to decrease the amount of monthly cash outlay. This is another form of leverage. It is an adjustable rate mortgage and therefore must be used with care. As with many great tools (of any kind), the misuse and misunderstanding of them can result in disaster!! Everyone has heard of people who have lost their shirts in real estate! There has been a fair amount of bad publicity about adjustable rates and particularily Option ARM mortgages. I would just say that the products are not the problem, instead the person who is using the product in the wrong way, or does not understand how they work (more of this another day).

5. The simple fact that there is no more land being made, and that the population continues to grow exponentially, results in the inevitable increase in value of residential properties.

6. 3rd grade math is about all you need to know for real estate!!!

7. You can start from nothing and create massive wealth over time.

8. Did I mention leverage?

9. Timing. Another very important factor. Usually we think of ‘buy low sell high’. That is fine, but to me, the real power of real estate is being able to hold onto it for as long as possible (generations). You must buy real estate and have it make financial sense the moment you buy it. Many people will buy anything in times of great appreciation, and disregard their own rules for investing by getting caught up in the frenzy-this has happened a lot recently!!! They will buy it now for too much, banking on appreciation to turn a normally bad investment into a good one. This does work for awhile, but sooner or later they will be caught in a market correction (as we have been experiencing for about the last year), and risk losing everything. As a mortgage professional and a real estate investor, I have seen a lot of people getting caught in this latest correction. Timing is about buying the right investment at this point in time. In this type of market there are many deals to be had, simply because many people didn’t see this correction coming. As the great real estate investor/author Dolf de Roos said, “the deal of the century comes around about once a week” (this is as I remember it!)

10. Tax advantaged! This is also a big one! On residential property, the IRS lets you ‘depreciate’ the structure only over 27.5 years, meaning that in 27.5 years, it is considered for tax purposes to be worthless. We all know by now that property in fact appreciates! On rental property, this means you can recieve a substantial monthly income or cash flow and not pay tax on it. Also, if you recieve enough cash flow to be taxed on it, the rate is less as it is regarded as passive income, not earned income. Remember to consult your CPA as they are the experts!!

11. Refinance it!!!! As you make money, you can pull it out tax free as this is a loan (from your personal bank), and go buy another house/bank.

12. With the right mortgage your renter should cover all expenses on your property, plus give you a small positive cash flow every month! Each house/bank should support itself by itself, none of this negative cashflow that makes you slave to support your properties!!!

13. If you must sell rental property, use a 1031 tax-deferred exchange to roll into another or several properties. This means not putting your hands on your profits, but rolling them tax free into another house/bank. You may take some cash and pay tax on it if you wish-this is called ‘boot’.

….. I could go on and on and on and on,etc.,etc.-but I think I have made my point! This is what I practise and preach, so I can get a little carried away!