Suffice it to say, Black Friday is just not my scene. Frankly, I don’t like shopping on the best of days. So the idea of frenzied shoppers elbowing each other to get to the $2 toasters after spending their family’s precious Thanksgiving moments queued up overnight in the megastore parking lot sends an involuntary shudder – and shiver – up my spine.
On the other hand, I like a deal as much as the next person – maybe more. My idea of a real deal, however, isn’t a $2 toaster. It’s getting a steal on the house where the toaster will live!
Fortunately, ‘tis the season for big-time real estate bargains. Whether you’re buying a new home or staying put, here are six ways you can save some serious real estate dollars this holiday season.
1. Home Buying. In most markets nationwide, prices continue to hover at levels we saw almost ten years ago. Of course, just how much of a fire sale you’re talking depends on where you’re buying. In Manhattan and San Francisco, prices actually did rise last year—but much less steeply than in years past. And while you may still have to deal with multiple offers, at least those are no longer in double-digits.
On the other hand, in locations like Bend, Oregon and Jacksonville, Florida, houses are going for half of what they sold for just five years ago (or less!).
Following conventional real estate wisdom, many sellers, especially in cold weather spots, take their homes off the market after mid-November, when people are more preoccupied with the holidays than they are with real estate. The flip side? Those who do stay in the market tend to be highly motivated and willing to deal. Take that into account when making your initial offer and during subsequent counters.
2. Sealing the Deal. Motivated sellers are often willing to sweeten the pot by helping out with all those transaction-related real estate costs (including loan origination fees, title insurance costs, escrow fees and even transfer taxes). Since lenders will often limit closing cost credits from sellers to 3%-6% of the home’s sale price, however, check with your real estate agent and mortgage broker about your lender’s guidelines before you write up your offer.
Even if your home’s sellers don’t have the wiggle room to lower the sale price or to cover your closing costs, they might be able to include home electronics, appliances or furniture in the deal. I’ve even heard stories of a seller who recently threw a Smart Car into the deal! Just make sure that to check with the real estate professionals handling your sale and mortgage to make sure any deal-sweetening seller incentives doesn’t sour your loan.
3. Interest Rates. With mortgage rates still near record lows, this is a very merry time to buy or refi, with a mortgage. Just this week, Bankrate reports that the going rate on a 30-year fixed mortgage dropped to 4.24%, and the rate on a 15-year fixed rate mortgage fell to 3.47%. Odds are that rates will remain rock bottom through the holidays (and beyond), making mortgages the gift(s) that keeps on giving in terms of long-term savings.
4. Property Taxes. Hate to pay taxes? You’re in luck! Since property taxes are usually determined by how much you paid for your house, getting a great buy on your house means great savings on your property taxes. Talk about a two-fer! (Oh – and if you already own a home that has declined in value, give yourself the gift of visiting your County tax assessor’s website and submitting a request to have your homes assessed value reduced. What you save can buy a whole lot of iPhones and Elmos.)
5. Negotiating Existing Loans. At year’s end, some banks and asset management companies who have purchased whole portfolios of second mortgages and home equity lines of credit are motivated to close out outstanding issues that are lingering on their books. So if you’re willing and able to pay a lump sum to settle a second mortgage rather than pay the full amount you owe, jump now. A friend of mine who has a $60,000 second mortgage has been in talks with her bank. If she settles the debt by the end of the year, they’ve agreed to take $12,000 and call it good.
6. Home Improvements. You can take advantage of the last of the remaining federal real estate tax credits by improving the energy efficiency of your home:
You can get back up to $500 on your federal taxes when you install approved, energy-efficient heating, ventilating, air conditioning (HVAC) systems, insulation, roofs, water heaters, and dual-pane windows, as well as skylights and doors. This particular tax credit, which only works for your existing principle residence, expires at the end of this year!
If you go whole hog and install a solar energy system, you can recoup as much as 30 percent of the cost, with a credit that doesn’t expire until December 31, 2016.
Also, many contractors offer very deep discounts for off-season home improvements, like installing an air conditioner or pool upgrades in the wintertime.
complements of Trulia
Showing posts with label invest in real estate. Show all posts
Showing posts with label invest in real estate. Show all posts
Wednesday, November 23, 2011
Wednesday, July 27, 2011
FHA DECREASE
Did you know that effective September 30, 2011, FHA Maximum Loan Amount is set to DECREASE from $400,000 to $287,500.00 FHA Maximum loan limits will change for the following Nevada Counties (effective 9/30/2011)
New Loan Limit
Carson City $286,350.00
Clark County $287,500.00
Douglas County $350,750.00
Elko County $271,050.00
Eureka County $271,050.00
Lyon County $271,050.00
Nye County $271,050.00
Storey County $325,450.00
Washoe County $325,430.00
Call me today, and lets discuss how this could/will impact your wallet. As your real estate professional, coach/mentor keeping you up to date witht the most current and relevant information is what I love and live for! (702) 236-6266
New Loan Limit
Carson City $286,350.00
Clark County $287,500.00
Douglas County $350,750.00
Elko County $271,050.00
Eureka County $271,050.00
Lyon County $271,050.00
Nye County $271,050.00
Storey County $325,450.00
Washoe County $325,430.00
Call me today, and lets discuss how this could/will impact your wallet. As your real estate professional, coach/mentor keeping you up to date witht the most current and relevant information is what I love and live for! (702) 236-6266
Monday, July 25, 2011
City Of North Las Vegas Values
Last week in the news we heard of the possibility that the City of North Las Vegas, Nevada may be taken over by the State of Nevada.
See articles:
http://www.lasvegassun.com/news/2011/jul/21/north-las-vegas-mayor/
http://www.lasvegassun.com/news/2011/jul/12/north-las-vegas-finances/
In the first article: “Mayor Shari Buck stresses that North Las Vegas is not at risk of being taken over by the state, but she admits the city will have a difficult time figuring out its finances for the next two years.”
In the second article:
“But a city doesn’t reach the brink of insolvency because of one hardheaded union, or even two. Recent and past moves by city officials, the unions and residents have led to this fix. North Las Vegas, once among nation’s fastest-growing cities, has seen steep declines in tax revenue during the recession, while its operating costs have risen to pay for big projects planned in anticipation of continued growth” The article continues with the poor planning on the city councils part.
Personally, it’s time for some hard core decision making….Voters. Instead of voting in politicians that have NO experience in running businesses much less know and understand how a budget works or even know what that word means. Vote in solid business owners and entrepreneurs that have a proven track record of how to stay within budget and grow businesses.
Hearing this news, I have to wonder what will this do to the already low property values in the city. The state of Nevada is in no financial condition to take over more financial responsibility.
See articles:
http://www.lasvegassun.com/news/2011/jul/21/north-las-vegas-mayor/
http://www.lasvegassun.com/news/2011/jul/12/north-las-vegas-finances/
In the first article: “Mayor Shari Buck stresses that North Las Vegas is not at risk of being taken over by the state, but she admits the city will have a difficult time figuring out its finances for the next two years.”
In the second article:
“But a city doesn’t reach the brink of insolvency because of one hardheaded union, or even two. Recent and past moves by city officials, the unions and residents have led to this fix. North Las Vegas, once among nation’s fastest-growing cities, has seen steep declines in tax revenue during the recession, while its operating costs have risen to pay for big projects planned in anticipation of continued growth” The article continues with the poor planning on the city councils part.
Personally, it’s time for some hard core decision making….Voters. Instead of voting in politicians that have NO experience in running businesses much less know and understand how a budget works or even know what that word means. Vote in solid business owners and entrepreneurs that have a proven track record of how to stay within budget and grow businesses.
Hearing this news, I have to wonder what will this do to the already low property values in the city. The state of Nevada is in no financial condition to take over more financial responsibility.
Sunday, July 17, 2011
Timing verses Location
One of the things that I have found over the years in working with clients that own real estate is that people love buying real estate. With that said some make critical mistakes when doing so. The starting point in deciding what to buy and how to buy it should begin with the answer to this question: Why Should I buy and what is it for?
This question that you ask yourself may sound ridiculous, however an important one for your financial future. Timing is so important. What was the famous line in real estate? Location, location, location. Look back at the years 2003 to 2008 at the feeding frenzy. If someone bought in those years they bought at the high part of the market; thus, the foreclosure and short sale phenonumen. The rule of thumb to any investing or any business is TIMING, TIMING, TIMING.
Another questions to ask yourself what time frame of investing, expectations, do you have the cash or financing and most importantly, whether the property will cash flow. Analyze the property, take all the expenses, taxes, hoa, maintenance, property manager, vacancy, home warranty, landlord insurance policy, holding the property in an LLC, etc. Find out what the property can be rented for. Find out the crime stats in the area and then do the math.
When buying real estate for income it is necessary to look at the type of income that you purchase. Single family homes in the Las Vegas area will be a great investment, for income if done correctly. Let me give you an example: A three bedroom home in Las Vegas, Nevada that would sell for 80,000 rents for $1,500 per month. Subtracting out the annual expenses of the debt service (mortgage payment), property taxes, insurance and the other expenses I mentioned above. It would not be uncommon for this property to net $7,200 yr after expenses. Take that to another level. Invest in 10 homes with that same outcome that would be $72,000 a year. Go a little further, invest in 20 homes would equal $144,000 a year. We have not even discussed the tax advantages. Your CPA would give you that information.
Let’s take a look at commercial property. Multiunit properties, apartments, or commercial properties may be far superior in terms of income than single family homes. In today’s market, you may be able to find a 4 unit property for $100,000. Obviously the figures are larger however so the return is. If done correctly.
Using leverage (OPM or OPC) may also allow for additional income on a property.
End Result: You need to do some planning prior to purchasing a property and find a knowledgeable real estate agent that has done investing for themselves. You should consider the types of properties, how to fund the property, whether to use leverage, who will manage the property, what improvements it may need, and what annual expenses it may have, among other items. The list of considerations is long, but the outcome will be well worth the hard work and profitable. Happy Investing!
This question that you ask yourself may sound ridiculous, however an important one for your financial future. Timing is so important. What was the famous line in real estate? Location, location, location. Look back at the years 2003 to 2008 at the feeding frenzy. If someone bought in those years they bought at the high part of the market; thus, the foreclosure and short sale phenonumen. The rule of thumb to any investing or any business is TIMING, TIMING, TIMING.
Another questions to ask yourself what time frame of investing, expectations, do you have the cash or financing and most importantly, whether the property will cash flow. Analyze the property, take all the expenses, taxes, hoa, maintenance, property manager, vacancy, home warranty, landlord insurance policy, holding the property in an LLC, etc. Find out what the property can be rented for. Find out the crime stats in the area and then do the math.
When buying real estate for income it is necessary to look at the type of income that you purchase. Single family homes in the Las Vegas area will be a great investment, for income if done correctly. Let me give you an example: A three bedroom home in Las Vegas, Nevada that would sell for 80,000 rents for $1,500 per month. Subtracting out the annual expenses of the debt service (mortgage payment), property taxes, insurance and the other expenses I mentioned above. It would not be uncommon for this property to net $7,200 yr after expenses. Take that to another level. Invest in 10 homes with that same outcome that would be $72,000 a year. Go a little further, invest in 20 homes would equal $144,000 a year. We have not even discussed the tax advantages. Your CPA would give you that information.
Let’s take a look at commercial property. Multiunit properties, apartments, or commercial properties may be far superior in terms of income than single family homes. In today’s market, you may be able to find a 4 unit property for $100,000. Obviously the figures are larger however so the return is. If done correctly.
Using leverage (OPM or OPC) may also allow for additional income on a property.
End Result: You need to do some planning prior to purchasing a property and find a knowledgeable real estate agent that has done investing for themselves. You should consider the types of properties, how to fund the property, whether to use leverage, who will manage the property, what improvements it may need, and what annual expenses it may have, among other items. The list of considerations is long, but the outcome will be well worth the hard work and profitable. Happy Investing!
Monday, January 31, 2011
Real Estate Workshop
What a great workshop on Saturday, January 29, 2010 in Las Vegas.
We discussed fitting the puzzle pieces together in order to invest in real estate.
We heard from a CPA and a loan officer and asked the hard questions.
The agenda
How to create a business Plan for investing
How to stay committed to your plan
What is the definition of KASH and how to implement in your business plan?
How to any analyze property
How the buying/loan process works
How does the escrow process works
To receive the information contact Dawn (702) 236-6266
We discussed fitting the puzzle pieces together in order to invest in real estate.
We heard from a CPA and a loan officer and asked the hard questions.
The agenda
How to create a business Plan for investing
How to stay committed to your plan
What is the definition of KASH and how to implement in your business plan?
How to any analyze property
How the buying/loan process works
How does the escrow process works
To receive the information contact Dawn (702) 236-6266
Tuesday, November 30, 2010
Real Estate Buzz.....
Bank of America, the nation’s largest mortgage service company since acquiring Countrywide in 2008, announced that they will resume foreclosing on homes Wednesday, December 1st. This comes after the banking giant self-imposed a foreclosure moratorium in the wake of the “robo-signing” scandal that received wide spread media attention in 2009. While this news is undoubtedly another blow to beleaguered homeowners, it comes none too soon for investors looking to purchase post foreclosure properties. In the final quarter of 2010, investors have found slim pickings at Trustees’ Sale auctions across the country.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
The last several years have seen several cessations and moratoriums on foreclosure proceedings that have caused the pool of available investment properties to dry up until the next wave of foreclosures begins. Many agents have struggled during these times to find suitable properties for their clients. My unique approach to securing homes for my investor/clients has insured that we at Share Builders Inc/The Force Realty have actually thrived during these past several years of market flux.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
The last several years have seen several cessations and moratoriums on foreclosure proceedings that have caused the pool of available investment properties to dry up until the next wave of foreclosures begins. Many agents have struggled during these times to find suitable properties for their clients. My unique approach to securing homes for my investor/clients has insured that we at Share Builders Inc/The Force Realty have actually thrived during these past several years of market flux.
Fannie Mae and Freddie Mac also made an announcement on November 24th that they will resume the auction sale of homes that have loans serviced by Bank of America, Chase, PNC Financial and others.
Tuesday, November 16, 2010
10 Overvalued Global Real Estate Markets
10 overvalued global housing markets
I found a great article about the real estate market globally. Take a look by clicking the link below.....
U.S. market considered 'fairly valued'
BY INMAN NEWS, THURSDAY, OCTOBER 28, 2010
http://www.inman.com/news/2010/10/28/10-overvalued-global-housing-markets
I found a great article about the real estate market globally. Take a look by clicking the link below.....
U.S. market considered 'fairly valued'
BY INMAN NEWS, THURSDAY, OCTOBER 28, 2010
http://www.inman.com/news/2010/10/28/10-overvalued-global-housing-markets
Thursday, October 7, 2010
The Real Estate Buzz......
Real estate prices in our area continue to remain steady. After the tax credits for home buyers expired last May, there was concern that the market could tank. Yet, existing home sales have stabilized over the past year. Lawrence Yun, Chief Economist for the National Association of Realtors, reports that the housing market continues to recover on its own power without the homebuyer tax credit. The NAR reported in September that existing-home sales rose by 7.6% in August following a big correction in July.
I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.
So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.
JUST ASK
Q: What is a CMA?
A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.
MY TOWN
Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.
The Internet offers some free resources to find school ratings. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the Academic Performance Index results.
FYI
With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.
Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.
Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.
Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.
I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.
So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.
JUST ASK
Q: What is a CMA?
A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.
MY TOWN
Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.
The Internet offers some free resources to find school ratings. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the Academic Performance Index results.
FYI
With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.
Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.
Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.
Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.
Thursday, September 9, 2010
73% of all homes in Clark County are down at leat 50%. And rents have held up well because the homeowners that are short-selling or vacating homes due to foreclosure must begin renting.
Choose the property wisely and you can get steady income and a good chance of solid appreciation over the next ten years. Seek out places that were growing before the recession and have something compelling to offer that will drive future growth. If you need a mortgage, make sure your monthly income will be enough to cover you loan payments plus a 20% cushion to cover repairs, vacancies and property management.
Real Estate is the only investment that gives you: Cash Flow. Appreciation, Depreciation and Equity Build Up.
Call for more information (702) 236-6266 or www.sharebuildersinc.com
Choose the property wisely and you can get steady income and a good chance of solid appreciation over the next ten years. Seek out places that were growing before the recession and have something compelling to offer that will drive future growth. If you need a mortgage, make sure your monthly income will be enough to cover you loan payments plus a 20% cushion to cover repairs, vacancies and property management.
Real Estate is the only investment that gives you: Cash Flow. Appreciation, Depreciation and Equity Build Up.
Call for more information (702) 236-6266 or www.sharebuildersinc.com
Thursday, September 2, 2010
The Real Estate Market is HOT
Although the news may sound like the world is coming to end. The real estate market and the individuals who are in the "know" are CASHING IN!! This is the best time to purchase whether a owner/occupant or as a real estate investor. If you are wanting to get into the market as an investor here are a few rules to live by:
RULES TO INVESTING IN REAL ESTATE
1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?
2. Have a criteria and stick to it.
3. Do your research on the properties.
4. Always put your investment property in an LLC. Get legal advice.
5. Have a good CPA and Attorney
6. Always have CASH FLOW. Without the cash you will not be able to make it work.
7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.
8. Never rent to FAMILY or FRIENDS. This is a business not a charity.
9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.
10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa
Visit my website www.sharebuildersinc.com or call (702) 236-6266
RULES TO INVESTING IN REAL ESTATE
1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?
2. Have a criteria and stick to it.
3. Do your research on the properties.
4. Always put your investment property in an LLC. Get legal advice.
5. Have a good CPA and Attorney
6. Always have CASH FLOW. Without the cash you will not be able to make it work.
7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.
8. Never rent to FAMILY or FRIENDS. This is a business not a charity.
9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.
10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa
Visit my website www.sharebuildersinc.com or call (702) 236-6266
Tuesday, August 3, 2010
Defense for you Asset
I have had a discussion on this topic a few months back, however It seems I having the same conversation with many investors, homeowners, and business owners.
An important discussion is keeping your asset protected.
Living trusts are used by millions of people who wish to keep their assets from going through probate when they die. Most living trusts, however, are not adequate for protecting assets from creditors because the trusts are revocable. This means that the person setting up the trust can revoke or change the terms of the trust at any time. If you have a revocable trust, and you can get control of the assets, the courts have consistently held that your creditors can also get control of those assets.
Trusts that are irrevocable can be more successfully used to protect assets. Once you set up an irrevocable trust, you cannot change the terms or revoke it. In essence, you have given your assets away; they are no longer available to satisfy claims against you. A judgment creditor cannot get to these funds. These are just two trusts that are avaiavable, there are many more.
What about LLC's, S, Corps, C Corporations are another way of protection.
Real estate asset protection do you need it? Well, considering that real-estate is risky enough as it is, if someone gets killed or hurt you are likely to be sued by the injured victims or family members. That is a given as accidents do happen but lawsuits are more likely to happen when people know you own property. Particularity in this age where someone can sue a business because the coffee they were drinking was too hot or where a lady was awarded 12 million dollars in a foiled suicide attempt on the train tracks.
Consider this scenario you are sued for $2,000,000, your insurance will cover $1,000,000 but guess who is left with a $1,000,000 problem. The day before life was rosy but today you are in the poor house. You could of avoided that issue all together if you had real estate asset protection that is if you didn't have the property in your name.
The biggest mistake you can make is to put your real estate in your own name as it all a part of public record. Anyone can look at what you have determine its current market value and deduct what you owe to see what they can take you for. Putting your name out in public land registry is equivalent to painting a bulls eye on your back to prying eyes such as attorneys, creditors and even tenants.
But what entity is the real estate asset protection? What entity or corporate structure do I use to buy and sell to hold real estate? How can I limit my liability exposure? These are very good questions to ask and a good place to start.
Certainly your first protection is liability insurance, but should judgments exceed your insurance or should your insurance not cover you for whatever reason you need real estate asset protection.
A land trust is a form of an irrevocable living trust used to take title to real estate so the beneficiaries cannot be easily discovered. However the land trust is not considered to be a separate taxable entity and there are no tax benefits of transferring property in or out of it.
A corporation is an effective device to buy and sell real estate so if the beneficiary of the land trust is a corporation one can have the tax benefits of being taxed after expenses at a corporate rate rather than before expenses and at the higher rate of an individual. As an individual you may also be taxed as a dealer at 15% for buying and selling.
Depending on your tax situation you might be better off with a C Corporation rather than a S Corporation. A corporation is a C Corporation by default and files a separate tax return whereas a S corporation is specially set up so that it splits up its profits to its shareholders as dividends. The shareholders then report their income on their own personal tax returns. In most cases its better to start out as a S Corporation and later change into a C Corporation when the tax advantages become evident.
A LLC or limited liability company allows the shareholders to participate in the running of the company without sharing its liability. Like a S Corporation the profits and losses flow to the owners. Buying and selling may subject the owners as an active activity to a dealers tax of 15% making the C corporation a better choice. If the business is primarily rents the LLC may be better. Its conceivable that one can form an LLC for every property and file one personal income tax if there is only one owner.
In any case get as much insurance as your entity can sustain to cover your real estate and business activity. Insure the entity is the names insured. Making sure the entity holds title to all your real estate to insure you won't be named the defendant in any potential lawsuit.
Those are some areas to consider before you obtain further professional advice for getting the best real estate asset protection
An important discussion is keeping your asset protected.
Living trusts are used by millions of people who wish to keep their assets from going through probate when they die. Most living trusts, however, are not adequate for protecting assets from creditors because the trusts are revocable. This means that the person setting up the trust can revoke or change the terms of the trust at any time. If you have a revocable trust, and you can get control of the assets, the courts have consistently held that your creditors can also get control of those assets.
Trusts that are irrevocable can be more successfully used to protect assets. Once you set up an irrevocable trust, you cannot change the terms or revoke it. In essence, you have given your assets away; they are no longer available to satisfy claims against you. A judgment creditor cannot get to these funds. These are just two trusts that are avaiavable, there are many more.
What about LLC's, S, Corps, C Corporations are another way of protection.
Real estate asset protection do you need it? Well, considering that real-estate is risky enough as it is, if someone gets killed or hurt you are likely to be sued by the injured victims or family members. That is a given as accidents do happen but lawsuits are more likely to happen when people know you own property. Particularity in this age where someone can sue a business because the coffee they were drinking was too hot or where a lady was awarded 12 million dollars in a foiled suicide attempt on the train tracks.
Consider this scenario you are sued for $2,000,000, your insurance will cover $1,000,000 but guess who is left with a $1,000,000 problem. The day before life was rosy but today you are in the poor house. You could of avoided that issue all together if you had real estate asset protection that is if you didn't have the property in your name.
The biggest mistake you can make is to put your real estate in your own name as it all a part of public record. Anyone can look at what you have determine its current market value and deduct what you owe to see what they can take you for. Putting your name out in public land registry is equivalent to painting a bulls eye on your back to prying eyes such as attorneys, creditors and even tenants.
But what entity is the real estate asset protection? What entity or corporate structure do I use to buy and sell to hold real estate? How can I limit my liability exposure? These are very good questions to ask and a good place to start.
Certainly your first protection is liability insurance, but should judgments exceed your insurance or should your insurance not cover you for whatever reason you need real estate asset protection.
A land trust is a form of an irrevocable living trust used to take title to real estate so the beneficiaries cannot be easily discovered. However the land trust is not considered to be a separate taxable entity and there are no tax benefits of transferring property in or out of it.
A corporation is an effective device to buy and sell real estate so if the beneficiary of the land trust is a corporation one can have the tax benefits of being taxed after expenses at a corporate rate rather than before expenses and at the higher rate of an individual. As an individual you may also be taxed as a dealer at 15% for buying and selling.
Depending on your tax situation you might be better off with a C Corporation rather than a S Corporation. A corporation is a C Corporation by default and files a separate tax return whereas a S corporation is specially set up so that it splits up its profits to its shareholders as dividends. The shareholders then report their income on their own personal tax returns. In most cases its better to start out as a S Corporation and later change into a C Corporation when the tax advantages become evident.
A LLC or limited liability company allows the shareholders to participate in the running of the company without sharing its liability. Like a S Corporation the profits and losses flow to the owners. Buying and selling may subject the owners as an active activity to a dealers tax of 15% making the C corporation a better choice. If the business is primarily rents the LLC may be better. Its conceivable that one can form an LLC for every property and file one personal income tax if there is only one owner.
In any case get as much insurance as your entity can sustain to cover your real estate and business activity. Insure the entity is the names insured. Making sure the entity holds title to all your real estate to insure you won't be named the defendant in any potential lawsuit.
Those are some areas to consider before you obtain further professional advice for getting the best real estate asset protection
Monday, August 2, 2010
How to Raise Financially-Smart Kids
There is a great article on how to raise fincially smart kids. I thought I would share it with others.
http://www.foxbusiness.com/personal-finance/2010/07/29/raise-financially-smart-kids/
http://www.foxbusiness.com/personal-finance/2010/07/29/raise-financially-smart-kids/
Tuesday, July 27, 2010
Investing In Las Vegas = CASH FLOW!!
It is truly amazing the deals that are here in Las Vegas. Investors can cash flow like crazy!!! Another property 2 bedroom, 2 bathroom for $25,000. This unit can be rented out for $795.00 a month. Now that's what I call CASH FLOW. Just think if you had 10 of these properties. Laughing all the way to the bank $7950.00 coming in each month. I will be going on some incredible trips!! Any one want to join me. Where would you go first. Since I am a scuba diving, I will be going to the South Pacific.
Monday, June 28, 2010
Wealth Creation through Real Estate
I have found many people wanting to know how to create wealth through real estate but have not done anything about it. Reasons are many:
1. Scared and/or Fear
2. Do not know how or where to start
3. Have a mentor to show them
4. No Credit or Money
5. No time
The list goes on.
There is an easy way to create wealth through Real Estate!
Check out www.sharebuildersinc.com
1. Scared and/or Fear
2. Do not know how or where to start
3. Have a mentor to show them
4. No Credit or Money
5. No time
The list goes on.
There is an easy way to create wealth through Real Estate!
Check out www.sharebuildersinc.com
Monday, June 7, 2010
Sprint into Action! Real Estate Investing
I pride myself in sprinting into action to get things done. Yes, I make goals and reach them. However if you just keep making and creating goals and doing nothing it will never happen.
So I ask these questions
Have ever wanted to invest in real estate?
Have you ever wanted to purchase your first home?
Do you have good/bad credit?
Do you have enough down payment?
How soon do you want to achieve you goal?
I say SPRINT INTO ACTION, find someone that assist you and do it.
So I ask these questions
Have ever wanted to invest in real estate?
Have you ever wanted to purchase your first home?
Do you have good/bad credit?
Do you have enough down payment?
How soon do you want to achieve you goal?
I say SPRINT INTO ACTION, find someone that assist you and do it.
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