Real Estate Windfall

Short Sales: Will Obama's New Incentive Program Help Investors?

admin — Tue, 09 Mar 2010 03:38:10 +0000

Short Sales just got a small incentive from the government. Or at least that is what we're being led to believe. Will this new treasury program really help speed short sales up?

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Exactly how will it affect real estate investors? Will housing inventories move faster? How are we supposed to believe banks will actually go along

Here are some very strong opinions from around the net.

New Treasury Program to Encourage Short Sales | Ryan and Schwarz LLP

Up to now, the Obama administration has had a pretty clear goal of doing whatever it could to keep struggling homeowners in their houses. Today, however, the.

Housing: More Short Sales Coming? | www.bullfax.com

John Lounsbury submits:David Streitfeld has an interesting article this morning in The New York Times discussing the outlook for an increase in the number of housing short sales and government efforts to facilitate these. …

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Great Article About Short Sales in New York Times by David …

I have done a number of short sales and I do believe we will have a lot of them over the next few years but my experience has been good, it takes patience and time but all of mine has worked out well for both sellers and buyers. …

Foreclosure.com Blog · The $1500 short sale incentive for sellers

The U.S. Department of the Treasury will soon offer lenders and distressed homeowners $1000 and $1500, respectively, motivating all parties to consummate short sale deals and, in the process, stem the foreclosure tide, according to the …

Will Short Sales Help the Housing Market – The Curious Capitalist …

I was taken aback this morning when I read in the New York Times that there is a new federal program that will look to put many thousands of mortgages-gone-bad back to the banks through a short-sale process.

Housing: More Short Sales Coming? (seekingalpha.com)
NYT: Plan to pay homeowners to sell at loss (msnbc.msn.com)
Will Short Sales Save Housing? (curiouscapitalist.blogs.time.com)

Dr. Housing Bubble Talks About Foreclosures

admin — Thu, 04 Mar 2010 00:12:24 +0000

Dr. Housing Bubble, the blogger who correctly predicted the current housing crisis, has a detailed report in which he compares the national housing crisis to what Southern California has been going through.

He point out "lenders have backed off on forced evictions, allowing many to remain in their homes, essentially rent-free."

He thinks the government is putting pressure on the banks not to foreclose and to modify loans. He says this hurts everyone who is paying their mortgages.

Could he be right?

One point we have always made is that real estate is local, not national. However, with Washington getting more and more involved that could possibly be changing the local landscapes concerning the banks.

Roth IRA: They're Still Very Popular

admin — Tue, 02 Mar 2010 02:56:15 +0000

Do you have a Roth IRA? If your IRA is a traditional one, are you being advised to transfer to a Roth?

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What about a 401K? Can you use that for investing in real estate?

One of the biggest advantages for a Roth is that the taxes have already been paid.

(Always seek professional advice before you make a move, but these articles show some of the possibilities.)

Distribution Rules for the Inherited Roth IRA – Financial Web

The estate tax applies to all inheritance, including any funds inherited in a Roth IRA. Roth IRA's are not exempt from taxes, but there is one reason why they may be preferable to traditional IRA's in terms of taxes owed upon …

Real Estate Investing With Your IRA | Life & Money | Minyanville.com

Low-risk opportunities abound, you just have to know where to look.

How To Benefit From 401 And Real Estate Investing | Viva Blog !

Another option for using 401K and real estate investing together is to put the money into an IRA, or individual retirement account. Sometimes this is not allowed, but it if is allowed, you have more flexibility on what you can do with …

Will Obama Delay All Foreclosures?

admin — Fri, 26 Feb 2010 02:14:53 +0000

Obama may not only delay all foreclosures, but he may ban them, until they've been screened by the Home Affordable Modification Program or HAMP.

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Wwhat? Is this for real?

Apparently, but it hasn't been made public yet, officially. That's according to Meg Reilly, Treasury spokeswoman.
Okay, so how did we find out about it?
Also- what will happen next? Will the banks balk? How far can the government really go on this? Why have only a little over 100,000 distressed homeowners been helped by HAMP so far?

Here is some more news and reaction from around the Net.

Obama Foreclosure Program Shows Slight Gains, Though Troubling …

But with another 754000 homeowners enrolled in temporary plans, nearly three out of five homeowners eligible for the Home Affordable Modification Program have received at least temporary help in staving off foreclosure. "HAMP is doing …

Obama's HAMP Misery Continues | Mother Jones

Now while HAMP wasn't created to address all kinds of foreclosures (which is arguably one of its flaws), a program with $75 billion in taxpayer funds behind it should do far more than help a meager 116000 homeowners almost a year later. …

The Jawa Report: Obama May Prohibit Home-Loan Foreclosures Without …

Obama May Prohibit Home-Loan Foreclosures Without HAMP Review. Isn't this interferring in a private contract? Bloomberg. – The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans …

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Dubai: Where Are Its Real Estate Values Now?

admin — Wed, 24 Feb 2010 00:05:41 +0000

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Dubai's real estate has had a hard year. Has the real estate market in Dubai bottomed out?

Here are some very interesting reports coming in.
It's intriguing that the experts seem to disagree on what is really going on. However, that isn't surprising.

George Soros Dubai is the Biggest Real Estate Bubble in The World …

dubai won't rebound, not at all mary, it is about to bust now, and that is good, dubai based itself onto investments in real estates, and did't take care of a what i call a “intelligent market mixture” therefore they can't lean onto the …

TheBull.com.au

Dubai's battered real estate prices have nearly bottomed out and should start to recover, but probably not until at least next year, the head of one of the troubled emirate's most prominent property developers says. Prices in the Mideast sheikdom … Chief executive Markus Giebel told reporters on Monday that while he did not expect a dramatic recovery in Dubai's property market, prices were unlikely to fall significantly further. "Dubai has reached a bottom phase," …

Price spread tightening in Dubai Marina

Price spreads for Dubai Marina apartments are likely to tighten further this year, with the current average gap between the first and fourth quartiles at Dh400 per square foot, according to a real estate consultancy. … Though the proportion of apartments sold with a value of less than Dh1m dropped to as low as 25.7 per cent at the peak of the market, this segment now represents significantly more of the Dubai Marina market at close to 40 per cent," Hansra added. …

Dubai World

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Dubai was in full boom and its market was just out of the world and after this six year bloom Dubai's real estate market was declined. Dubai government took the action and they give some instruction to the company in order to control …

Stop Bad Landlording Laws

admin — Fri, 19 Feb 2010 20:06:50 +0000

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You can stop bad landlording laws. That's if you are aware of what is going on with your local legislative sausage making process. You can also join other real estate investors and landlords as well as investor clubs. Larger numbers can stop stupid legislation that can cost your profits and sometimes even your properties.

Here's an example.

The Tennessee legislature is considering a bill, SB2814, sponsored by Sen Diane Black and HB2894 by Rep Gary Moore which will allow a utility district to file liens on a property for non-payment of bills for garbage collection.

Why is this so dangerous?

There have been some problems having the liens removed after payments were made.

The local REINtn is fighting this and it will be time and effort well spent to make sure this bad legislation doesn't see the light of day. That's the whole point. You need to be on top of this stuff and that will save you and other landlords a lot of grief down the road.

Here are some more somewhat strange landlord/tenant laws from U.K.

propertytalk Live! – Local Housing Allowance paid direct to …

As a Buy to Let Landlord I automatically refuse any applications from people who are on benefits. Before this legislation I was quite happy to take on the unemployed knowing that the rent would be paid from an official source. …

No let up in regulation for landlords

Landlord Assist has something to say about the level of regulation (existing and proposed) in the buy-to-let sector. The eviction and rent recovery specialist has spoken out regarding new measures outlined recently by housing minister, …

5 Key Steps for Real Estate Investment Planning

admin — Fri, 19 Feb 2010 02:33:40 +0000

There are still plenty of opportunities to make money in real estate. We may be in a recession, but real estate investors are still out there buying and selling.

With the help of online tools, websites and resources you’ve got a tremendous amount of the right kinds of information at your fingertips.

Whether you’re an experienced real estate investor or a part-time newbie just getting your feet wet, the following five key steps will aid you in reaching your goals.

Key #1 Define Your “Target”

Clearly list and explain what you want to accomplish with your real estate investing.

Naturally we think about what we want to accomplish with America’s #1 Millionaire- Maker business.

But did you ever list specifically in terms of money, flipped rehabs or buy and hold appreciation properties?

This principle and simple activity applies to a fixer-upper rehab, a pre-foreclosure, foreclosure, REO, or a buy and hold appreciation property.

Key#2 “Define the Cost”

You must “define the cost” in terms of tools, recourses, and people you need to reach in order to accomplish your real estate investing goals.

How much will your investments cost per hour, per day, per week, and per month?

Also, if you are a buy and hold investor, how much will it take in terms of cash flow to operate your rentals?

Sit down and put all your ideas on paper before buying a rehab or foreclosure so you won’t be taking a direct hit to your wallet.

Key #3 “Make a List”

To create your own tailor-made real estate business system, you must list off every distinct or moving part connected with your investments, from the first ideas to the profits.

Listing helps you solidify your goals so that you can flesh them out. The more realistic they become the easier it will be for you to reach them.

Key #4 “Prioritize”

Put all the items from #3 in order staring with the most important ones.

If a furniture maker is building a table, he must work in planed order or all will be chaos.

Now you’re ready for another person to look at your plan. See it your friend or mentor has any suggestions on what you may have left out.

It’s amazing how another person can zero in on some obvious crucial components you might have overlooked. A fresh perspective can often make a big difference in the success of the investment.

Key #5 “One Step at a Time”

Where do most people miss it? Why is it many would be real estate investors quit before they can actually get started?

They are trying to do too much.

You have to proceed in order and you can’t do everything yourself.

Don’t’ try to do two jobs at the same time, even though multi-tasking is all the rage.

For example, taking care of a tenant’s roach infestation on your cell phone while you’re waiting to see a banker about a loan or a REO and then attempting to do due diligence on your laptop is an overload.

Also, flipping one property while rehabbing another don’t usually mix well. It can be done but it’s not for beginners.

The best way is to get things done and out of the way before moving on to the next task.

Investing in real estate efficiently and productively is not rocket science.

The secret is to do it carefully with step-by-step planning while paying attention to details. This will greatly increase your chances for success in America’s #1 millionaire making investment.

Real Estate Tax Answers: A 1031 Exchange

admin — Thu, 18 Feb 2010 19:09:01 +0000

We all need solid real estate tax answers. The 1031 Exchange often comes up when real estate investors discuss tax saving strategies. Many real estate investors have been using this tax break for years. Is it still worthwhile? Or do we need to rethink our tax strategies?

Here is some valuable information from across the web as experts and real estate investors discuss this explosive issue. (Please note: Always seek legal advice from a professional attorney. These links are for information purposes only.)

2010 Tax Strategies Every Investor Should Know

D. 1031 Exchange-When purchasing/acquiring a property by more than a single investor, partners should consider whether it would be worthwhile to incorporate more than one legal entity to hold the property. … E. Finally, real estate investors should be aware that in 2010 there is a one-year moratorium on the estate tax exemption. This means that a trust or family limited partnership can leave an unlimited amount to heirs without concern that any amount of the bequest …

Need An Alternative To The 1031 Exchange? Consider A CRT …

The CRT strategy includes several benefits that often outweigh those of the 1031. This strategy also provides substantial income and estate tax benefits and the potential to receive an increased income compared to selling property, …

1031 exchange 7 options

If you, as a real estate investor, do a traditional 1031 exchange, you must buy a property of at least the same value as the property which you sell. Yes, you do defer the capital gains tax owed, but this often means obtaining a new …

Real Estate Glossary – 1031 Exchanges Explained

The number 1031 refers to a section of the internal revenue code that deals with real estate tax issues. Specifically, this code deals with the exchange of property based on the deferred recognition of capital gains or losses when the …

1031 Tax Exchange Frequently Asked Questions | fiftiesparties.com

Is there a disagreement between facilitators? Most definitely. As in any professional discipline, the capability of facilitators will adapt based ahead their exchange data, experience and very estate and/or tax familiarity. …

Commercial Real Estate Losses and Risk to Financial Stability Report Recommended for Insomniacs

admin — Wed, 17 Feb 2010 23:43:39 +0000

The Commercial Real Estate Losses and the Risk to Financial Stability February report is in and it's perfect for those folks who can't sleep. It is guaranteed to put them and any body else who is unfortunate enough to read it into slumber land fast without sandman assistance.

Let's face it. We're not the only ones who think it's boring.

Here are two of our favorite reviews.

Subprime Mortgage Fallout Expected To Continue For Years …

Here's a report that you have to have a strong stomach to be able to read: "Commercial Real Estate Losses and the Risk to Financial Stability," prepared by the Congressional Oversight Panel, which was created to oversee the expenditure …

Tough years ahead for commercial real estate – and community banks …

The title of the report says it all – “Commercial Real Estate Losses and the Threat to Financial Stability.” The problem is that there is over $1.4 trillion in loans coming due within the next four years. Over half of those loans are “ underwater. … And get this: “Community banks, unlike the largest Wall Street banks, face the greatest risk for insolvency due to mounting commercial real estate loan losses.” Some other quips from yesterday's news release: …

Property Taxes Hotting Up

admin — Tue, 16 Feb 2010 15:27:29 +0000

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Property taxes are hotting up across the country because it's that time of year again. Many of us have just written "the check" to our county or city and we're physically sick.

We have pointed out we think property owners have to bear entirely too much of county and city tax burdens. We don't think the load is fair because many large companies manage to get their taxes reduced in a variety of ways.

But where is the saturation point?

From what we're reading it seems many areas are getting close to meltdown. At some point, cities and municipalities are going to have to come up with other ways to generate revenue. If they don't they risk people moving out, or properties becoming run down because there isn't enough money left to fix them up properly.

Here are some news stories from across the country.
Debra Medina: Eliminate Property Taxes | Journal-Post

We've surrendered private property ownership to the ever-growing state – we lease our property in the form of ever increasing rents known as property taxes. We've forgotten that ownership is an essential element of freedom; …

Homeowners Fight Back Against Property Taxes – Video – WNEM Saginaw

A forum was held in Mid-Michigan Monday night, showing homeowners how to fight back.

Why Did We Pay Our Property Taxes When the Alerus Managment …

Why is it that this city contractor, who pays NOTHING to the city in property taxes gets let off the hook when the citizens of Grand Forks are required to pay what we owe. Venuworks willingly agreed to the terms of the contract. …

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Property taxes to rise 4% (thestar.com)