Section 1031 exchange for rental and investment real estate is a tool that allows investors to move the gain from one property to another without immediate income tax consequences.
An instant benefit is to postpone the tax due which gives the investor a larger amount of proceeds to invest. In the example shown, the investor has 21% more proceeds to invest and grow over time than if he had paid the... [Read more]
With interest rates lower than they’ve been in over 40 years, it may be difficult to think of a “window of opportunity” closing. However, it isn’t difficult to understand that it may very probably cost more to live in a home in the near future due to rising interest rates and prices.
Zillow recently reported results from a nationwide study that home values are expected to appreciate by 4.5%... [Read more]
IRS allows taxpayers the option to take the standard deduction or the itemized deduction. The astute taxpayer will compare to see which one will result in the greatest deduction and the election can be made each year.
The 2013 standard deduction for a married couple filing jointly is $12,200 and $6,100 for a single taxpayer. It doesn’t require any proof of actual expense and has no requirement... [Read more]
Prepaid interest, sometimes called “points”, is generally tax deductible when a person pays them in connection with buying, building or improving their principal residence. When points are paid on a refinance, they are not a current deduction but have to be taken prorata over the life of the mortgage.
For instance, if $3,000 in points were paid on refinancing a 30 year mortgage, a deduction of... [Read more]
Here is a fun video about real estate. I hope you enjoy it. Contact me if I can help you.
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The Qualified Mortgage Rule came into effect on January 14, 2014 as one of the results to the Dodd Frank Reform Act to protect consumers from predatory lending practices. This will affect the underwriting standards that the majority of lenders will use to qualify borrowers.
The ability to repay rule states that financial information must be supplied by the borrower and verified by the lender. The... [Read more]
These are some presentations I have put together. Hope you enjoy them. Please call me with any questions or if I can be of assistance.
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A water meter key is like insurance; buy it before you need it.
Imagine a pipe has burst and there is water flowing like a river through your home. There may a cut-off valve to each sink if it works and if that’s where the leak is coming from. Your home may have a master cut-off valve but if you haven’t used it before, you might not know where it is. The last resort is to cut off all the water... [Read more]
Do you have a luxury home and are looking for some enhance marketing to get your home sold? Let’s meet and discuss how I can be of service.
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Watch my latest TV show as I discuss the local Minneapolis St Paul real estate marketplace.
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Coffee should be hot. Beer should be cold. Mexican food should be spicy. However, if these things are less than the standard that you expect, there are not any lasting consequences.
As the value of the object in question rises, either in price or gravity, the expectations usually increase and decisions become progressively more important. Marriage, children, health and careers are certainly a few... [Read more]
The more things you have, the more you have to take care of. And in this case, the more that you have to store that gets in the way of finding the things that you actually use. Periodically, you need to go through every closet, drawer, cabinet and storage area to get rid of the things that are just taking up space in your home and your life.
Every item requires the decision to retain or remove. ... [Read more]
A ½% increase in interest rate may not sound like much but it is roughly equivalent to a 5% increase in price. It becomes obvious when you compare the payments.
If you financed 100% of the cost of a $250,000 home at 4.5% interest for 30 years, the payment would be $1,266.71 per month. If the mortgage rate went up to 5%, the payment would be $1,342.05. If the home increased 5% in value, the $262,250... [Read more]
Whether you continue to rent or decide to buy a home, according to recent Zillow 2014 housing projections, the cost is going up. Zillow projects home prices to increase nationally by 3%, mortgages to rise to %5 interest rate by the end of the year and rents to go up by 2.5% on average.
If it will cost a person more whether they rent or buy, the conclusion can be made that one way or the other, they... [Read more]
A certificate of deposit will generate a cash flow based on the interest rate that it pays which is the only way it generates a return for the investor.
An investment in a stock that doesn’t pay dividends, would need to be worth more than you paid for it to earn a profit. On the other hand, a stock that paid dividends could make the investor a profit even if it sold for the same price that he... [Read more]
I recently sat down with a home warranty vendor. Take a look at this video and think about if it might be of benefit to you-either a buyer or seller.
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You’ll need to earn $2.00 for every $1.00 you want to spend assuming you pay 50% of your earnings on income tax, social security and Medicare. On the other hand, you get to keep 100% of every dollar you save on your personal expenses because the taxes have already been paid.
Periodically, review your expenditures with the diligence of an exuberant IRS agent on commission. It’s an exercise that... [Read more]
Dear Lending and Real Estate Partner:
The City of Woodbury’s DPA programs have been amended both to increase the income limits and increase the maximum purchase price.
These changes will make more homebuyers and more properties eligible for our programs.
As a reminder, with the recent changes to FHA financing and increasing mortgage interest rates, Woodbury’s funds can help your clients reduce... [Read more]
“I’d wish I’d know that before I made a decision.” If you’ve ever regrettably said this to yourself, having a checklist might have prevented the issue in the first place. This list of questions can provide you with things to discuss when interviewing a moving company.
• What is the charge for packing?
• Does it include boxes? If not, what do they cost and will you deliver them?
•... [Read more]
The two most frequently quoted constants in life are death and taxes. Two more things would-be homeowners can expect in the near future are increases in mortgage rates and housing prices.
Interest rates have been kept artificially low for several years by the Federal Reserve in an effort to strengthen the economy. Policy is shifting to allow them to seek their own natural level and that will surely... [Read more]
One of the most frequent calls from homeowners to their agents is about the listing’s inactivity due to the lack of showings. The homeowner commonly believes that the home is shown only when a buyer walks through the house with an agent.
Today’s buyers are more sophisticated than in the past due to the abundance of information available to the public on the Internet. There are seemingly inexhaustible... [Read more]
If you’ve considered changing your light bulbs to energy-saving LED bulbs but decided not to make the investment because the prices were too high, you might want to investigate again. The prices have come down considerably.
An initial investment now will generate immediate returns through energy costs and because they last longer, you won’t need to replace them for years.
The life of LED bulbs... [Read more]
The energy-efficient home upgrades tax credit is scheduled to expire on December 31st this year. If you need to make improvements to your home, this could be an incentive to do it before the end of the year. If you have already made qualifying improvements without realizing the tax credit is available, it may seem like a holiday gift you weren’t expecting.
The equipment must be installed to... [Read more]
With a 2,000+ mile long winter storm affecting much of the country, there are plenty of home owners who wish they were better prepared. Even when you live in warm climates, some of these things are important to check periodically.
Preparing for the change of seasons can make your home more comfortable and protect your investment. Regular maintenance extends the various components of a home and can... [Read more]
The Winter Home Buyer Report conducted in the second week of November by REALTOR.com® revealed the sentiments of current home buyers expecting to buy a house during the winter months. It appears that there is pent-up demand with buyers who were unable to purchase a home recently.
Most cited as an impediment to purchase was the challenge of low inventory. Strong demand coupled with short supply explains... [Read more]
Most school children would probably say that Thanksgiving dates back to the Pilgrims at Plymouth as early as 1621. By the late 1660’s, it had become traditional to hold a harvest festival in New England.
President George Washington declared the first nation-wide thanksgiving in 1789 “as a day of public thanksgiving and prayer to be observed by acknowledging with grateful hearts the many and signal... [Read more]
Tonight I replaced old light bulbs with new CFL bulbs. Was I surprised at the better white light the bulb generated. In fact, the fixture requires 4 bulbs. Two were new and two were old. Boy what a difference. I also had my home energy tested this past year and I’ve started making the recommended changes as well. Are you a “green” buyer or seller? Consider some of the points mentioned in the... [Read more]
Most people are familiar with the various reasons a homeowner refinances their home which generally result in two major benefits: saving interest and building equity.
There is however another reason to refinance which may not be as common which is to remove a person from the loan. In the case of a divorce, when one party wants to keep the home and the other party wants their equity out of the home,... [Read more]
As a homeowner, you obviously pay for your mortgage but as an investor, your tenant does. Equity build-up is a significant benefit of mortgaged rental property. As the investor, collects rent and pays expenses, the principal amount of the loan is reduced which increases the equity in the property. Over time, the tenant pays for the property to the benefit of the investor.
Equity build-up occurs... [Read more]
The division of assets between the spouses is an important decision to finalize a divorce. The exercise looks relatively simple: assign a value for each of the assets and divide them based on a mutual agreement between the parties.
The challenge is to make a fair division which requires an analysis to determine their value after they’re converted to cash.
Assume the two major assets in the example,... [Read more]
Would you like to know more about the trends and what is happening in our local market? Check out my newsletter on this topic
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When you’re buying or selling, the obvious source to get your real estate question answered is your agent but where do you go the rest of the time? As a homeowner for many years to come, you’ll need reliable help and solid suggestions.
Our business goal is to have a select group of our friends and past customers who consider us their lifelong real estate professional. We want to earn that trusted... [Read more]
Lenders, like any business, have to make a profit. The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified. The variable in pricing is the type of mortgage and the credit worthiness of the borrower.
A loan with a 3.5% down payment is riskier than a loan with 20% down payment. If the lender has to take the property back to recover their... [Read more]
One of the anxiety highpoints during the sale of a home is waiting for the buyer’s home inspection report. Most sellers willingly disclose what they know about their home to any potential buyers. The concern stems from the inspector finding something that they’re totally unaware of and that it will either cost them a lot of money to correct or the buyer will simply use it to void the contract.... [Read more]
Man’s best friend enjoys many of the benefits of his master’s home besides food and shelter and a comfortable place to live and play. In return, dog owners expect companionship and possibly, protection; after all, even a small dog can bark to signal intruders.
Few people doubt that most dog owners love their pets and treat them well. The costs associated with having a dog can include medical... [Read more]
You’ve seen lists telling buyers what to do to find the right home but knowing what not to do can be just as important. After finding the right home, negotiating a contract, making a loan application and inspections, buyers, understandably, start making plans to move and put their personal touches on the home.
In today’s tenuous lending environment, little things can derail the process which... [Read more]
Equity is the difference in what your home is worth and what you owe. Ideally, as the value goes up and the unpaid balance goes down with each amortized payment made, the equity grows from two directions.
This dynamic leads to increasing a person’s net worth much faster than many other investments.
A homeowner has minimal control over value. It is necessary to maintain the property to avoid depreciation... [Read more]
Just some information that you might or might not know or have thought of.
More often than you’d expect, homeowners refer to the person they bought their insurance from as their agent. It sounds reasonable but it’s definitely not accurate. That person is the agent of the insurance company and they legally represent the company, not the customer. Even an independent agent who can place a policy... [Read more]
Originally, in 1913 with the Sixteenth Amendment, Income Tax allowed a deduction on any interest paid by a taxpayer. Prior to World War I, most interest was paid for business purposes and very little paid by individuals. Credit cards, revolving credit, student loans and home equity loans that would charge interest would not become popular for decades.
However, by the 1930’s, the Federal Housing... [Read more]
Did you know that RE/MAX is a leader in commercial real estate as well as residential? We use a separate MLS system (MNCAR) and other resources besides the regular NorthStar MLS, of which I am a member. Let me know how I can help you-residential, commercial or investment properties.
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The profit potential in single family homes for investment has been a consistently good long-term investment. They offer investors the opportunity of high loan-to-value mortgages at fixed interest rates for 30 years on appreciating assets, tax advantages and reasonable control that other investments don’t offer.
Last year, Warren Buffett said that if he had a way of buying a couple hundred thousand... [Read more]
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It’s a common practice for buyers to make a list of what they want in a home during the search process and to explain it to their agent. However, maybe the first list they should make would have the skills they want their agent to have.
The Profile of Home Buyers and Sellers identifies what buyers want most from their agents and as you’d expect, help with finding the right home was ranked highest... [Read more]
This was an interesting story I happened to come across by accident. Did you know various people have claimed ownership of the moon? Of course, they then built a business around selling the associated real estate. Read more this at Wikipedia and then watch the video. Was PT Barnum correct? You decide. http://en.wikipedia.org/wiki/The_Man_Who_Sold_the_Moon
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I am often asked about where you can obtain a credit report. There are MANY places and most will have a charge associated with the report. The only one that I am aware of that is free is at http://www.annualcreditreport.com This site is actually sponsored by the three bureaus-Equifax, Transunion, and Experian. It is my understanding that the “annual credit report” free option doesn’t provide... [Read more]
As a subscriber to Realty Trac, I offer a monthly newsletter that they compile with local market data. Would you like to read it? Simply visit http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=754f6e36-211e-40b5-93c6-2beba87b2b46 and read the report. I can data mine the MLS and create a custom search for you should you be interested in purchasing a distressed sale. The market is stronger... [Read more]
The city of Saint Paul MN has produced some amazing videos. Check them out. St Paul is the sister city of Minneapolis.
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Some people refer to the heating and air conditioning systems as the “comfort systems.” If you’ve ever had to be without one in the dead of winter or the heat of summer, lack of comfort may be an understatement. Simple maintenance with a HVAC checklist is something that every homeowner can perform.
* Change your filter every... [Read more]
I have recently completed the OwnAmerica renting course and got their OICP certification. They have some GREAT tools and insight that will make you a better investor. Taking their online class via my link below. I forgot to mention the cost-FREE!!! You will definitely benefit from using these tools in your analysis.
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Many people have no idea this is possible. I have helped clients in the Twin Cities build a portfolio of investment properties using this strategy.
One of the trust vendors has provided this informational outline and a video. I have also included links to other trust providers so that you can learn about this concept:
Self-Directed IRA Investing 101 – Investing Passively and Actively in Rent Homes... [Read more]
We always here that “rates are lower than they’ve ever been”. In most cases that is true. Rates have been progressively declining. Freddie Mac actually has a 10 year chart that will demonstrate this on a month to month and year to year basis. You can find the data here for 30 year loans- http://www.freddiemac.com/pmms/pmms30.htm In today’s fast market, you will find that... [Read more]
Every day I am reminded of the one thing we all must manage-it’s our TIME. How we choose to spend it is somewhat within our control. A friend of mine who runs a painting company wrote an article about “Your Weekend”-Do it yourself or hire a professional. I think it is an important read. In fact, it has applications that apply to other activities besides painting. Priorities. Choices. Quality... [Read more]
Low inventory is a relative term depending on how you’re comparing it. Would the comparison be to total number of homes on the market last year, homes in a certain price range or homes in a certain area? In some situations, it’s a combination of all of those things.
In any given market, inventories will fluctuate based on area and price range. The National Association of REALTORS® considers... [Read more]
I just returned from my first RE/MAX convention. I have been with RE/MAX for 17 of my 27 years selling real estate, but this was the first time I had decided to attend their convention. All I can say is “Wow”. The people, the events, and the information was terrific. The show “KA” at the MGM was pretty amazing as well! I am excited to be back at work and have started to apply my new... [Read more]
We’re constantly bombarded by lenders to refinance our mortgage under a variety of programs. The volume of offers can almost make you numb to the rational consideration.
There are common rules of thumbs that homeowners and agents use such as not refinancing more often than every two years or there must be at least 2% savings from your previous mortgage rate may not always be accurate. Rules like... [Read more]
This video is typical of a first time buyer I work with that has recognized the opportunity in real estate today. Many many of my friends started off with an owner occupied duplex and later leveraged that into substantial wealth. I am aware of many special loans and grants that might help you achieve home ownership. Let me help you make the right decision for yourself and family.
RE/MAX... [Read more]
Article provided by: Jerry Fancher Fresh Coat Painting
Need a painting idea for your home? Whether you are looking to freshen up a room or trying to increase your home’s resale value, a fresh coat of paint can work wonders. Once you have an idea of what you are looking for in a new look, talk to your painting contractor to work out the details to put you on your way to a dream room.
Here are four... [Read more]
If it shows better, it will probably sell faster and maybe for more money. Once your home is on the market, it’s time to look at it like a commodity and through the eyes of potential buyers. In all likelihood, you’ll need to take care of these items eventually, so do them now to help it sell sooner.
1. Make repairs – it doesn’t matter if it’s been that way since you bought... [Read more]
I have been with RE/MAX for 17 of the past 27 years. I can honestly say I work with some of the best in the business. I wouldn’t want to sell homes with any other company. From the people, the resources, the support-it really is a wonderful environment. If you are an agent or consumer, I encourage you to take a look at what they have to offer. Below are some videos from our founder that give... [Read more]
The 3.5% down payment on FHA loans could be more expensive for buyers than expected. Beginning April 1, 2013, the mortgage insurance premium will go up by .1% to 1.35% which may not even be noticeable to most would-be homeowners. The staggering increase will occur on 6/3/2013 when FHA’s policy on the duration of the required mortgage insurance will be increased for the life of the mortgage
There... [Read more]
The last thing you want to do while you’re on a trip is to worry about someone burglarizing your home. Use this checklist to add some peace of mind to your travel plans.
• Ask a trusted friend – to pick up your mail and newspaper and keep the yard free of trash and advertisements.
Stop your mail but maybe not your newspaper – you can easily handle this online by going to the US... [Read more]
WOW. Another video that makes you think. How many times have we seen people who have had more obstacles to overcome than most go on to achieve wonderful things? You may have heard the quote regarding attitude and altitude. This video once again demonstrates how we each have our own set of issues and how we choose to deal with them determines outcome. Powerful stuff. Always puts things in perspective
RE/MAX... [Read more]
I just met with a long time mortgage originator who is offering reverse mortgages for the purchase of a primary home. This is very exciting as not many companies offer this as a mortgage option. Now, a senior who is 62 years old has another financing option available to them. Attached are the information sheets that I received from the lender that will explain the program. Please contact them... [Read more]
How much evidence is needed to make a decision to get out of the rent race and become a homeowner?
Compare your rent with a mortgage payment on a similar size property. If you want a larger home than your current one, use the rent that property would require instead of what you’re currently paying. If it’s considerably cheaper, you may not need any further encouragement.
By the time you... [Read more]
Have you ever picked a color from the myriad of paint samples available, put it on the wall and decided that it was all wrong? It shouldn’t have to be that difficult but trying to pick the perfect color from those little swatches is just not that easy.
Painters and decorators suggest you buy a small amount of the colors you’re considering. Your paint store should be able to mix them in... [Read more]
Hope he’s right. Sounds very encouraging:
CFP CLU ChFC CEBS MBA MS CMB
7300 France Ave S #410
Edina, MN 55435
How Can I Help You?
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Buyers who have delayed purchasing a home due to concerns about what might happen to the tax laws affecting home ownership should feel comfortable about getting back in the market. The recent legislation passed by Congress and signed by the President continues to value homes as a favored investment.
For a summary of specific real estate provisions in the “Fiscal Cliff” bill, click here... [Read more]
The attached report will cover some of the highlights of the extended program. If you find that you or someone you know is in need of some information regarding options that might be available for them if they are “underwater” on their loan, then share this report. EVERY situation is different. Please call me to discuss yours and I will try my best to help wherever I can. There might be... [Read more]
As the market shifts from a buyer’s market, it’s good to know how to improve your chances to have the seller accept your offer.
Once you decide on a home, don’t waste time; write an offer and submit it as soon as possible. Competing with another buyer happens more frequently than you’d expect. Multiple offers are a seller’s advantage but here are some tips to level the... [Read more]
One of the things I try and do is monitor the various city programs for opportunities for my clients. I just got the email from the City of Bloomington announcing some of their home improvement funding. More can be learned from visiting their site at http://www.ci.bloomington.mn.us/cityhall/commiss/hra/hra.htm
It might be worthwhile looking into this if you have an upcoming project you’d like to... [Read more]
Have you ever wondered “will property increase in value in the future”? Here is one metric to consider-the unemployment rate. Here is a link to Minnesota’s information. http://www.deptofnumbers.com/unemployment/minnesota/minneapolis/
You need a job to buy a home. More jobs=More people who can purchase a home. The Twin Cities employment markets are healthy. We do have unemployment, but we have... [Read more]
Yipee. Mortgage insurance is going to be deductible again in 2013. See the rules and see if you qualify, as not everyone or every type of insurance is eligible. Here is a link: http://www.mgic.com/ordering-mi/tax-deductible.html
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Yes it is true. Under CERTAIN instances, you may have a short sale or foreclosure and not incur the tax on the amount of mortgage debt that was forgiven. NOT everyone can qualify. For those that can, what a relief. Tucked in the Fiscal Cliff negotiations was this provision. So, you still have one more year. If this is something that you’d like to discuss as it may relate to your situation,... [Read more]
If you are a tenant or a landlord, you will want to get on the CRP forms for 2012. Here is a link to the state of MN department of revenue where you can find the forms. These need to be delivered by end of January, 2013 for 2012 rental year.
7300 France Ave S #410
Edina, MN 55435
Google... [Read more]
After spending the holidays with family and friends, this is a time of the year to start thinking about changes to make in our lives, both personal and in business. We wanted to share one of ours with you.
Our goal is to become your REALTOR® for life. We want you to think of us first when you need to buy or sell and that you’ll recommend us to your friends too. That kind of trust has to be earned... [Read more]
This showcases the cites that we know and love-from a few miles high in the sky. I think you will enjoy it.
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It’s common for sellers to consider offering and buyers might find it an incentive, but a growing number of homeowners are purchasing the home warranties themselves to limit the unexpected expenses of repairs and replacements.
A home protection plan is a renewable service contract that covers the repair or replacement of many of the components in a home. Some homeowners especially like the convenience... [Read more]
I recently received this video from a client. It is a creation of “Jib Jab”. They have awesome videos that you can create. I had to make one of my family and share it with you. Here it is. I hope you like it. Wishing you all the best throughout 2013!
7300 France Ave S #410
Edina, MN 55435
Google Voice-... [Read more]
1031 Exchanges-MAY be the way to grow substantial real estate wealth by deferring taxation and compounding equity
1031 exchanges allow you to sell an investment property and exchange it into a different property. If done CORRECTLY, you will not report the transaction as a taxable sale. Instead, the exchange allows you to defer taxation until a future date. For more information, you can call me.... [Read more]
It is always a question I get when I list a home-”what should we do to present our home in the best light” ? Everyone wants to sell their home faster for the highest possible price. One way to do that is to take some time, and “stage” a home. What does that mean? It can mean many things. It can be as simple as cleaning up or removing clutter to make a room bigger. It can also... [Read more]