• Investor wants to maximize wealth and will reinvest positive cash flows.

• The investor's tax bracket will remain stable throughout the holding period.

• There will be a constant appreciation rate during the holding period.

• Current federal tax laws are considered and only applicable straight-line depreciation will be used.

• The mortgage on the property is considered to be an interest-only loan with no principal reduction.

• Rent and operating expenses will remain stable throughout holding period.

• If negative cash flows result, an interest charge will be made at the same reinvestment rate to offset the opportunity cost of being able to use that money elsewhere.

• The marginal tax rate of the investor is used to determine the impact of this investment regardless of what else the investor may do in this tax year.

One of my local favorite pubs in downtown St. Louis.  This place has a shuttle that will pick you up prior to the baseball game, offer you a beer and pick you up after the game for FREE.  How could it be FREE?  Brian McGowan that runs the Green Sheet advertising route is an awesome tour guide and enough entertainment to miss the game and just ride the bus.  Check out Flannery's prior to the St. Louis Baseball Cardinals Games.

My favorite furniture store downtown.  The last time I walked into this place I laid down on one of their couches and almost fell asleep.  Be sure to pop by and see their trendy furniture at reasonable prices.  If you live in a loft downtown St. Louis then you will definitely want to see what is in store.

Downtown St. Louis is Alive!

Download this episode (33 min) 
Downtown St. Louis is ALIVE! Check out the downtown living tour this May 3rd and 4th noon to 5pm to see all of the available residential units for sale or lease. Cost is only $5. Start at either 9th and Olive or 20th and Washington. Listen to Jim Cloar, President and CEO of the Downtown St. Louis Partnership, talk about all of the exciting things that are happening downtown. He mentions transportation, the new grocery store, perception of crime and more. This is a show you do not want to miss.

Everyone deserves a break.  Especially those who keep the streets clean.  I am happy to say that they have done a wonderful job making Downtown St. Louis a clean place to live. 

There is nothing better than walking to your car after a baseball game and find that your friend the parking meter had expired by 2 minutes.  Good thing these suckers are free on the weekends.  If you can find a friend who lives downtown in one of the lofts then see where there are free spots in the alley.  Save some quarters for your gas tank instead.

• "Another Agent said it was worth more." – It isn’t an agent that puts a price on a property. It is established by the market which includes what similar properties have sold for recently and what the supply and demand is currently.

• "Our home is nicer than those houses." – This is a subjective opinion, generally, from a biased individual (the seller). What is “nice” to one person may not be to another.

• "People always offer less than asking price." – This makes the assumption that everything is over-priced and that isn’t the case. There are lots of properties that sell for full price or sometimes even higher. By over-pricing a property to allow for the buyers negotiations actually encourages lower offers.

• "We can always come down on our price." – Studies have shown that the longer the home stays on the market, the lower the price will be. Sometimes, it can be lower than what it would have sold for if it had been priced properly in the beginning.

• "We have to get that much out of our home." – There is no rational reason why a buyer should pay more than fair market value for a person’s home just because the seller has a need for the money. The buyer usually thinks that they have a good need for the money also.

• "My neighbor was able to get his price." – “His price” may be less than he was asking and the only way to know is through examination of the MLS or county records. Many times, this objection is a misunderstanding about what the neighbors “thought” the property sold for.

• "Let's try it at our price for a month or so." – Trial and error is generally not an acceptable way to price a home. The initial price enthusiasm of the market generated by a new listing is lost and can’t be regained.

• "The buyers can always make an offer." – Unfortunately, the correct buyers who might make an offer won’t even be looking at it because it is out of their price range. Buyers don’t want to look at homes they can’t afford just to get their hopes dashed and have to downsize their realities.

• "We paid more than that for our home." – Regardless of the reason, ignorance of value or downturn in the market, appraisers don’t care and neither do the buyers.