This is an update to my previous post here:
http://www.realtown.com/ryancave/blog/developments/sotherbyhomesgone

I continue to hear that Shaddock corp. is finishing up homes started by Sotherby. So, there may be hope yet for those with homes started by Sotherby. Please comment below to let us know if you have a home in-process with Sotherby/Shaddock. Also, I heard you can still get warranty work done on Sotherby homes if it's an emergency; see below (I found this on Frisco-Online.com and, at almost the exact same time, it was submitted as a coment by David Margulies on the previous post):
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Sotherby Homes is in the process of re-establishing a procedure for warranty performance as per the HOME of Texas Limited Warranty issued to homeowners at such time that a home was closed from Sotherby to a homeowner. At this time, Sotherby is accepting calls, e-mails and faxes for warranty issues. It is currently acting on emergency items, such as plumbing leaks, roof leaks, and heating and cooling issues. In the near future, Sotherby hopes to establish and phase in procedures for warranty performance for all other HOME of Texas Limited Warranty repair requests.

For emergency warranty performance or other questions about warranty issues, please call (972) 985-7955, fax (972) 526-5645 or email customerservice@sotherby.com.

The company will place calls to contact individual customers to update them on the status of their homes. Sothereby will make every attempt to complete the construction of all sold homes.

If a current homeowner receives any notices or threats concerning liens they should contact our office at (972) 526-5645 or fax to (972) 526-5645. It is our intent to compile and remedy this issue very soon. Sotherby regrets any inconvenience that this situation is causing its valued customers and is doing everything it can to resolve the situation in a timely manner.
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However, the same forum also says that Sotherby is down to just three employees. So, I imagine that response times are slow at best. I wish all the best to those affected by Sotherby's troubles (employees, homeowners, subcontractors, homeowners-to-be, etc.). I hope Sotherby is able to right the ship and take care of their customers (both past and present) in the process.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

So you have a kid or two in college (or headed there soon). Chances are that you're going to be paying for housing of some sort, tuition, books, meals, clothes, you name it... it's not cheap. Here are some ideas that may allow you to save some money, make some money, and/or add some write-offs to your tax bill all while investing in real estate. Let me preface these by saying that I'm not a CPA or a lawyer and I don't give tax or legal advice. These aren't even my ideas, but they sounded good so I thought I'd share. Please consult your own CPA, lawyer and/or tax advisor before making any moves.:

1. Get in-state tuition prices! If you have a son or daughter headed to a university out of state, investigate the residency requirements for the state (and university) they're headed to. Sometimes just buying an investment property a few months ahead of time may allow you to pay in-state tuition rates. Why would you want an investment property in another state? Keep reading...
2. Get some rental income! Besides housing for your own kid, renting a bedroom or two to friends can help defer the cost of the home and have everyone paying amounts closer to dorm or, at least, apartment rent. Afraid the roomies are not responsible enough to pay their rent? Get their Mom & Dad to co-sign their room lease (yes, you put the room lease in writing with shared use of, and responsibility for, the common areas). The parents are often paying for the housing anyway. If they won't co-sign, this may be a red-flag for this potential roomie. You might also check credit and, as with any rental, get a month's rent as a deposit.
3. Stop paying your kids expenses! Instead, pay your property manager a salary. While tuition is tax deductible, books, food, clothes, housing, and other expenses are usually not. However, if you pay your son or daughter a reasonable salary for keeping the house in good shape, making sure rent checks are mailed, etc. you can deduct this salary as a business expense associated with your rental property. Then, let them pay their bills from their salary!
4. Take business trips! Instead of visiting your kid at college, go visit your property and property manager. Instead of paying for kids to come home for the weekend to visit Mom & Dad, pay for your property manager to come meet with the boss(es). Chances are you'll talk about the property anyway, right? This may make part or all of the trip tax deductible. How much may depend on how much business you talk (and document). Just expect your property manager to always arrive bearing laundry to wash and asking for a raise...

There you have just a few ideas on how investing in real estate can be affordable, or even profitable, for those with kids in college. I have heard other ideas too, but this will get you started. Find a good real estate agent to help find a good property in a good location and the property may eventually become a profit center as your kid moves out (let's hope because they graduate) and others move in. At that point, you can hire a professional property management company to oversee the property if you choose... keeping the Mom & Dad co-sign, credit check and deposit rules in effect if you want. Or, after 4-5 years of college, you may find that you have the equity to sell and make a little money on the house... and that's not counting the tax breaks and money making/saving ideas above.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

An update to my earlier post here:
http://www.realtown.com/ryancave/blog/developments/bennigansclosing/

Many have asked me what they can do with their gift cards to Bennigan's and/or Steak & Ale. My suggestions: Use as a shoe horn, hole punch and make into a necklace charm, frame as a memento to corporate mismanagement, etc. Ok, so this may not be the answer you were looking for. Unfortunately, best I can tell, if you have a Gift Card for Bennigan's or Steak & Ale, they are probably worthless. Technically, I've heard that you are a creditor and could file a claim against their bankruptcy (I heard you could file a claim at www.uscourts.gov. That you could download the bankruptcy form and submit form B-10). However, you'd have to get in like with their other creditors and chances of you ever actually getting anything are slim to none (and the trouble probably isn't worth what you might recoup). This is further evidence why (in my opinion) gift cards are simply not good gifts... Even if the recipient LOVES the store/issuer, they may not get to use it. If a store files bankruptcy/closes, they're probably out of luck. Though this is rare, especially with "major" companies like the one that owns Bennigan's and Steak & Ale, this shows you that it can happen to any major corporation.

While we're on the topic, you might also want to be careful of "expiring" or "diminishing" gift cards. Many places issue gift cards that "expire" after a certain length of time (often after one year) or diminish in value as "maintenance fees" are changed every few months. I think this is horrible since the store already collected the cash (from when the card was purchased) and the company is collecting interest on the money until you use the card. A perfect example: a friend gave me a gift card to Harley Davidson in Allen Texas a few years ago (I think it was $50). I used part of it almost immediately (around $25), but when I returned the next time I wanted to use the balance, I was told that it had "expired" and wasn't worth anything. So, basically, they kept around $25 and never had to make good on it. I felt like they "stole" from me (or from my friend who had paid for and given me the card). But there it was in fine print on the back of the card... it expired one year from issue. This is why I don't give gift cards from Harley Davidson (or any other merchant that has gift cards that "expire" ). If you don't know what to buy me (my birthday was just this past week), just give me the universal gift card that never expires... cash.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com