Monday, January 31, 2011
Friday, January 28, 2011
Monday, January 24, 2011
Your Daily Motivation
You don't need an explanation for everything.
Recognize that there are such things as miracles, events for which there are no explanations. Later, knowledge may explain those events away.
The fact that you plant a seed and it becomes a flower, share a bit of knowledge and it becomes another's, smile at someone and receive a smile in return are common miracles.
Your duty to yourself is to believe that for which you have sufficient evidence, and to suspend your judgment when you have not.
Any sufficiently advanced technology is indistinguishable from magic. Some things have to be believed to be seen.
Vision is the art of seeing invisible things.
Recognize that there are such things as miracles, events for which there are no explanations. Later, knowledge may explain those events away.
The fact that you plant a seed and it becomes a flower, share a bit of knowledge and it becomes another's, smile at someone and receive a smile in return are common miracles.
Your duty to yourself is to believe that for which you have sufficient evidence, and to suspend your judgment when you have not.
Any sufficiently advanced technology is indistinguishable from magic. Some things have to be believed to be seen.
Vision is the art of seeing invisible things.
RE/MAX City View
713-965-7161 Office
806-570-4387 Cell (call or Text)
shaywesley@remax.net
www.713CityView.com
Customer Service STILL means something to me!
For all your Real Estate needs, Please call me!
Saturday, January 22, 2011
Ever Wondered?..... Buying Foreclosures
There are plenty of advantages in investing in the Houston foreclosures. This city is the largest in Texas, one of the top five states leading in the sale of foreclosure properties. In a poll conducted and analyzed on the basis of job opportunities, living conditions and economy, Houston was declared in the list of “best cities of 2010”.
The city has all the conditions that are required for housing a family. Houston has received awards for high business growth, innovative technical inventions and it is coined one of the best cities for college students to graduate in. The city is also known for trade and commerce and it ranks first in the United States. Thus for all those seeking for a living and a cheap house to support residing in the country, the foreclosed properties in Houston are the best ones you can look up to.
Foreclosure properties can be bought by partnering with your Realtor and bidding at auctions or by signing personal deals with lenders and distressed home owners. There are more than 10,000 properties you can choose from the foreclosure lists. And the average price of these lie in the most affordable price margin of $100k to $200k.
2011 is a more favorable year for investing in foreclosures. There were too many foreclosure filings a couple of years back in the United States in as much as about 2.2% of the total housing units. But the number of properties that were foreclosed by the bank was very low. And the purchasers for the bank foreclosure homes were very low too. This indicates two trends. Too much of time is being taken for processing the bank foreclosure homes. Another thing is that the home owners are more willing to sell off their properties for high discounts to the potential home buyers than work out loans with their lenders or surrender their properties to the banks.
This facilitates buying foreclosures in two platforms. One is the short sale which the banks are adopting as a strategy to liquidate the clogging properties. Next are the pre foreclosures. By buying foreclosures through the above two grounds, one can sign high bargain deals. Make sure you have discussed exactly what you are looking for with your Realtor so that he/she can keep their eyes out for great deals!
Furthermore, if you have any questions about Houston Foreclosures, call me today and let's discuss them. I'm never too busy for you.
Shay Wesley, Real Estate Professional/Real Estate Investment Specialist
RE/MAX CityView
713-965-7161
shaywesley@remax.net
The city has all the conditions that are required for housing a family. Houston has received awards for high business growth, innovative technical inventions and it is coined one of the best cities for college students to graduate in. The city is also known for trade and commerce and it ranks first in the United States. Thus for all those seeking for a living and a cheap house to support residing in the country, the foreclosed properties in Houston are the best ones you can look up to.
Foreclosure properties can be bought by partnering with your Realtor and bidding at auctions or by signing personal deals with lenders and distressed home owners. There are more than 10,000 properties you can choose from the foreclosure lists. And the average price of these lie in the most affordable price margin of $100k to $200k.
2011 is a more favorable year for investing in foreclosures. There were too many foreclosure filings a couple of years back in the United States in as much as about 2.2% of the total housing units. But the number of properties that were foreclosed by the bank was very low. And the purchasers for the bank foreclosure homes were very low too. This indicates two trends. Too much of time is being taken for processing the bank foreclosure homes. Another thing is that the home owners are more willing to sell off their properties for high discounts to the potential home buyers than work out loans with their lenders or surrender their properties to the banks.
This facilitates buying foreclosures in two platforms. One is the short sale which the banks are adopting as a strategy to liquidate the clogging properties. Next are the pre foreclosures. By buying foreclosures through the above two grounds, one can sign high bargain deals. Make sure you have discussed exactly what you are looking for with your Realtor so that he/she can keep their eyes out for great deals!
Furthermore, if you have any questions about Houston Foreclosures, call me today and let's discuss them. I'm never too busy for you.
Shay Wesley, Real Estate Professional/Real Estate Investment Specialist
RE/MAX CityView
713-965-7161
shaywesley@remax.net
Tuesday, January 18, 2011
Investment New You Can Use
Section 1031 of the Internal Revenue Code permits real and personal property that is “held for productive use in a trade or business” or “held for investment” to be exchanged for other “like-kind” property while deferring capital gains and recapture taxes that would otherwise result from the sale of a property. In the context of real property, the definition of “like-kind” is so broad that almost any perpetual interest in real property of any type will be treated as like kind to any other perpetual real property interest. Consequently, one is not limited to an exchange of a ranch for another ranch or a farm for another farm. Instead, a farm can be exchanged for a commercial office property, a residential rental property or even raw land. Finally, a sale of a farm or ranch often consists of selling real and personal property. As discussed below, both may qualify for deferral in a 1031 exchange.
REAL PROPERTY
Real property held for productive use in a trade or business or for investment can be exchanged for any like-kind real property to be held for either investment or for productive use in a trade or business. When dealing with the sale of a farm or ranch, the most obvious form of qualifying real property is the actual acreage. However, land used as a farm or ranch can present additional 1031 exchange opportunities. For example:
1) In states where water rights are considered to be real property, many farmers and ranchers are exchanging their rural water rights to acquire income producing real estate, thereby increasing cash flow and reaping tax benefits from depreciation deductions.
2) Mineral rights may provide another 1031 exchange planning opportunity.
3) Some rural property owners are conveying conservation easements¬ on their land to acquire more productive property through an exchange.
4) A 1031 exchange has been extremely useful in the granting of an agricultural easement in exchange for fee simple title in different property.
5) Mitigation credits for restoring wetland property may be exchanged for other mitigation credits.
A seller of a farm or ranch may be able to take advantage of two different tax code sections to minimize capital gain tax liabilities on the sale of real property. Under IRC 121, for example, farm and ranch sellers can often qualify for a tax exclusion on the primary residence portion of their property, while most or all of the remainder of the property can qualify for tax deferral under IRC 1031. IRC 121 allows a property owner to exclude capital gain taxes if the home was their primary residence for two (2) of the last five (5) years. Couples filing a joint tax return can exclude up to $500,000 of the capital gain on the sale of their principal residence while single filers can exclude up to $250,000.
PERSONAL PROPERTY AND LIVESTOCK
Section 1031 permits personal property held for investment or used in a business to be exchanged for other similar personal property that is in either the same General Asset Class or the same Product Class. Many farm and ranch sales include significant irrigation equipment, farm machinery and tractors. The IRS has established 13 General Asset Classes along with a more detailed description of Product Classes, which are specified in the North American Industry Classification System (NAICS).
Livestock held for investment may also be exchanged, although livestock held primarily for sale would not qualify. Furthermore, IRC 1031 states that livestock of different sexes are not like-kind property. Most tax advisors believe breeding livestock that are not held primarily for sale can be exchanged. Although a bright line standard regarding exchangeable livestock does not currently exist, some tax advisors are of the opinion that a purebred registered beef cow may be like-kind to a grade beef cow because they differ only in quality or grade. On the other hand, a dairy cow might not be considered like-kind to a beef cow because they represent two different types of livestock.
**As always, review all aspects of any proposed Real Estate exchange with a competent tax and/or legal advisor.
REAL PROPERTY
Real property held for productive use in a trade or business or for investment can be exchanged for any like-kind real property to be held for either investment or for productive use in a trade or business. When dealing with the sale of a farm or ranch, the most obvious form of qualifying real property is the actual acreage. However, land used as a farm or ranch can present additional 1031 exchange opportunities. For example:
1) In states where water rights are considered to be real property, many farmers and ranchers are exchanging their rural water rights to acquire income producing real estate, thereby increasing cash flow and reaping tax benefits from depreciation deductions.
2) Mineral rights may provide another 1031 exchange planning opportunity.
3) Some rural property owners are conveying conservation easements¬ on their land to acquire more productive property through an exchange.
4) A 1031 exchange has been extremely useful in the granting of an agricultural easement in exchange for fee simple title in different property.
5) Mitigation credits for restoring wetland property may be exchanged for other mitigation credits.
A seller of a farm or ranch may be able to take advantage of two different tax code sections to minimize capital gain tax liabilities on the sale of real property. Under IRC 121, for example, farm and ranch sellers can often qualify for a tax exclusion on the primary residence portion of their property, while most or all of the remainder of the property can qualify for tax deferral under IRC 1031. IRC 121 allows a property owner to exclude capital gain taxes if the home was their primary residence for two (2) of the last five (5) years. Couples filing a joint tax return can exclude up to $500,000 of the capital gain on the sale of their principal residence while single filers can exclude up to $250,000.
PERSONAL PROPERTY AND LIVESTOCK
Section 1031 permits personal property held for investment or used in a business to be exchanged for other similar personal property that is in either the same General Asset Class or the same Product Class. Many farm and ranch sales include significant irrigation equipment, farm machinery and tractors. The IRS has established 13 General Asset Classes along with a more detailed description of Product Classes, which are specified in the North American Industry Classification System (NAICS).
Livestock held for investment may also be exchanged, although livestock held primarily for sale would not qualify. Furthermore, IRC 1031 states that livestock of different sexes are not like-kind property. Most tax advisors believe breeding livestock that are not held primarily for sale can be exchanged. Although a bright line standard regarding exchangeable livestock does not currently exist, some tax advisors are of the opinion that a purebred registered beef cow may be like-kind to a grade beef cow because they differ only in quality or grade. On the other hand, a dairy cow might not be considered like-kind to a beef cow because they represent two different types of livestock.
**As always, review all aspects of any proposed Real Estate exchange with a competent tax and/or legal advisor.
Monday, January 17, 2011
Investment New You Can Use
One of the many challenges of investing in real estate is finding the time to manage and oversee your properties while still holding down a full time job. Of course hiring a property manager is an option, but for many investors with a small number of units it is not always cost effective. Investors with only a few properties can probably keep up with the management duties and maintain a full time job with little trouble, but for those with multiple properties this can be more difficult. In an effort to increase your customer’s satisfaction and reduce the amount of time you have to spend on property management duties you should consider taking rent payments through your website with credit card, debit card, and e-check.
There are several companies that will provide the service for you just make sure you compare the cost based on the amount of business you do in a month. The tenant can either set up their payments for the whole year in advance and the money will be taken on the day they choose or they can go on line and make the payment each month. The rent then automatically goes into your business account and the tenant gets a confirmation email that it has been paid. Your tenants enjoy the convenience this service gives them.
You will love the service because it allows you to track rent payments received each month regardless of where you are physically and also allows you to pull up an electronic copy of when a particular tenant paid rent for the past year. This comes in handy when you are getting ready to renew a lease and can show the tenant how many times they paid late over the past 12 months. It is also an easy way to see who always pays on time, or early, which allows you to send them a little gift to recognize their promptness. In addition it eliminates the over used excuses “the checks in the mail.”
To increase the number of tenants who will use the automated system you can offer a discount off their rent because you don’t have to have someone process their payment. You can also make it mandatory for all new tenants. Obviously, you could make exceptions for those who have no computer access. Accepting electronic payments will defiantly make your business a little easier. As I have heard many times, work smarter not harder. I continue to look at ways to automate my business and increase my cash flow. No Excuses in 2011!
There are several companies that will provide the service for you just make sure you compare the cost based on the amount of business you do in a month. The tenant can either set up their payments for the whole year in advance and the money will be taken on the day they choose or they can go on line and make the payment each month. The rent then automatically goes into your business account and the tenant gets a confirmation email that it has been paid. Your tenants enjoy the convenience this service gives them.
You will love the service because it allows you to track rent payments received each month regardless of where you are physically and also allows you to pull up an electronic copy of when a particular tenant paid rent for the past year. This comes in handy when you are getting ready to renew a lease and can show the tenant how many times they paid late over the past 12 months. It is also an easy way to see who always pays on time, or early, which allows you to send them a little gift to recognize their promptness. In addition it eliminates the over used excuses “the checks in the mail.”
To increase the number of tenants who will use the automated system you can offer a discount off their rent because you don’t have to have someone process their payment. You can also make it mandatory for all new tenants. Obviously, you could make exceptions for those who have no computer access. Accepting electronic payments will defiantly make your business a little easier. As I have heard many times, work smarter not harder. I continue to look at ways to automate my business and increase my cash flow. No Excuses in 2011!
**As always, review all aspects of any proposed Real Estate exchange with a competent tax and/or legal advisor.
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