Hello fellow real estate investors,
Some of you are well versed with the term “1031 exchange” and others may have very little knowledge on the process. In this article, I will begin by defining what 1031 exchange is. Then explain some of the basic requirements and procedures for using a 1031 exchange. Finally, I will walk you through a hypothetical example to highlight the major tax advantages of utilizing a 1031 exchange to build and maintain wealth in real estate. If you ever have more in-depth questions about the process, please reach out to our team and we can provide more information and put you in touch with the right experts. *I am personally not a cpa, all the numbers included are simplified and estimated*
Believe it or not, negotiating the purchase price of a home and opening escrow is often the easy part of the transaction; it’s the challenges that arise during the escrow process that cause the wheels to come off! I remember one escrow several years back where I literally thought the whole deal was going to fall apart over a little poop. The escrow started off o.k., the buyers offer came in under asking price but wrote a very compelling letter to the seller about how badly they wanted the house and they were offering the very max they were qualified for. However, they understood they were buying the home ‘As-Is’ and wouldn’t nitpick repairs (famous last words). So sure enough, we get through inspections and there is a rather lengthy Repair Request. As often happens the ‘As-Is’ part of the initial negotiations had been completely forgotten by the buyers! To add insult, one of the items on the lengthy list was to remove ALL dog poop from the back yard!
The experts have been predicting for several years now that rates were going to rise. . it’s finally happening. Gone (for now!) are the 3% mortgages. We have now inched up to 4.5%. Sound high? Historically, that’s still a great rate, but unfortunately predicted to rise. If you are thinking about buying, but want to wait until prices drop, you might want to think again! Interest rates have a huge impact on the affordability of your home.
Human nature is ‘funny’ and, as Realtors, we come across all kinds. ‘Did the home inspector find too much?? ‘ ‘They must be making things up.’ ‘Did the home inspector find too little??’ ‘Obviously, they’re incompetent!’ It can be a no-win situation depending on what side you are on, buyer or seller.
It is that time of the year again and hopefully you have your taxes done early like me. One day early to be exact this year, but hey, that’s still early! Depending on what has transpired in your life since the start of 2017, there are numerous tax ramifications that will ultimately determine what your refund or check to the government will be this year. Personally, I have been taking advantage of not only the compounding power of real estate investing but also numerous tax benefits along the way. There are several real estate investment strategies in the tax code right now that could help you out in a big way today and down the road.
You have likely heard the term, but do you know what Escrow really means? Whether you are considering buying or selling a home for the first or the fourth time, every buyer and seller go through “Escrow”. We try to take any mystery out of the equation when you work with us. Here is a quick, easy summary of Escrow.... The actual dictionary definition is:
The primary purpose of an escrow for a real estate title transfer or closing settlement is to have a trusted, neutral stakeholder hold the seller's deed to the property, which will be delivered to the buyer upon payment of the sales price and fulfillment of other sale conditions.
We are thrilled to welcome Michael Prezioso to our Moving Chico Real Estate Team! Michael is an experienced agent that both Carolyn and I worked with before when he was starting his real estate career. Michael has a wealth of experience representing buyers, sellers and investors. He is also an investor friendly agent and personally owns, rehabs, and manages investment properties in the local area. Our Moving Chico Team is operating smoothly and it was going to take a very special person to fit the model of excellence in client service that we have developed. Michael’s experience, integrity, work ethic and genuine dedication to his clients make him that special person to round out our team! You can read Michael’s full bio here.
It’s that time of year. . Diets have begun, the gym parking lot is full and sellers are getting ready for the Spring listing season! So is it a good time to sell? To buy? The 2017 Statistics are in, and (drumroll. . .) for the 6th consecutive year, homes in the Chico have appreciated. There is a “BUT” coming though. The rate of appreciation has slowed dramatically, and this Realtor thinks 2018 will be relatively flat in terms of home values.
What a rollercoaster ride 2017 has been 😊 and we just want to say Thank You.
Shane, Natalie, and I sit down every November/December to analyze our business for the last year and to plan for the coming year. One important factor really struck a chord, and that was that over 80% of our business comes from referrals from you. Our past clients, our friends and family, and our social connections have given our names out to the people they care about so we can help them with their sale and/or purchase.
Seriously, did you feel that? The real estate market here in Chico just shifted! The question is constantly asked, “How’s the market?” When you’re a Realtor, it’s a more common topic than the weather! For the last several years, the story has been low inventory, low rates and rising prices. Sellers have been able to price their home above the last sales comp and still get multiple over asking price offers. I would describe this past spring and summer as a FRENZY. A new listing would hit MLS and within hours the showing requests would roll in and there be multiple offers with only a few days on the market.