Ric Inting Cebu City Real Estate

Real estate has traditionally been a good opportunity for women. More than 65 percent of real estate agents are women. The flexibility and higher than average income was a draw to career-minded mothers long before flex-time and family benefits were even considered in other industries. Yet, historically, the top management spots were held by men. All of that has changed.
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Another situation stemming from the deteriorating housing market in the once-hot housing market in South Florida is a case against a group of real estate practitioners for the three percent commission paid them on 24 condos prior to the sale. (Prior to the sale? That certainly wasn’t happening here in Ohio.)

The sales failed to close or the buyers defaulted and the condo developer is suing for the money paid to these brokers. The brokers are countersuing saying that it was the developer’s fault that the sales fell through. To make the situation even murkier, the contract with the brokers doesn’t spell out what happens to the commission if the event the sale does not materialize. In addition, many of the individual agents to whom to money was distributed, no longer work for the brokerages.

To read, the whole story, see this post by “Realty Magazine.”

Well, All Property Management, LLC was audited by the Washington Real Estate Commission yesterday - and it wasn’t awful at all! I knew an audit was bound to happen sooner or later, but hadn’t expected it this soon (I just got my broker’s license in December 2006).

Just hearing the word “audit” sent a shock wave of adrenaline into my system when I got the call to head into the office because the auditor was on-site (it’s summer, and I was at home with my seven year old daughter) . Of course, to say I tend to worry a wee bit too much about things would be an understatement. That’s why I’m not a lawyer anymore. (more…)

Here’s a practical problem we at allpropertymanagement.com face everyday:

We do advertising and marketing for property management companies, and we want our site to be a credible and reliable one. So, while we’re not aware of any print media, such as the Yellowpages, doing this, we require our client’s advertising on our site to sign a statement that they have met all licensure requirements for their business.

Despite this assurance, we strongly recommend that anyone using the site check with their local real estate commission to make sure the company they work with has the proper licensure and that there are no disciplinary actions against them. (more…)

credit: Jeff Belmonte
Taxes are tricky. Are you taking advantage of all the breaks you’re entitled to as a real estate owner? Everyone knows you can deduct your mortgage interest from your federal taxes, but property owners can also take advantage of a number of other breaks.

• Points: The IRS consider those hefty fees paid to lenders as a form of prepaid mortgage interest. So if you bought a home in 2007–or refinanced your adjustable rate mortgage you get a break.
• You may also qualify for a mortgage interest deduction on a second vacation home as well as any second mortgages or home equity loans you hold.
• Owners of investment property can deduct expenses related to the property, so keep receipts for repairs, upgrades, or real estate management fees.
• If you rent out your vacation home when you aren’t using it, you might be able to deduct the cost of travel there and routine upkeep.
• Home improvements made for health reasons are deductible from your taxes, if they’re made for the chronically ill or disabled and don’t add value to your home.
• Tax credits can also be deducted for “green” improvements, such as energy efficient windows and doors and solar energy systems.

If you sold your home and moved because of a job, you may be able to deduct some of your moving expenses. You must move at least 50 miles and you must have moved in order to take a full-time job. You can deduct the cost of packing and transporting your household goods. You can also deduct travel expenses for yourself and your family, which includes lodging, but not food.

You cannot deduct:

• Any part of the purchase price of your new home
• Expenses of buying or selling a home
• Expenses of entering into or breaking a lease
• Home improvements to help sell your home
• Loss on the sale of your home
• Losses from disposing of memberships in clubs
• Mortgage penalties
• Pre-move househunting expenses
• Real estate taxes
• Refitting of carpet and draperies
• Return trips to your former residence
• Security deposits
• Storage charges except those incurred in transit and for foreign moves

If you invest in real estate good record-keeping is essential. Keep the purchasing contract and closing statement, which establish the basis on which you’ll calculate depreciation as well as capital gains. Also keep track of capital improvements you’ve made, which you can depreciate; rental income records, including vacancy periods and security deposits received; and operating expenses.

If you work from home, you can deduct expenses that are related to business, including real estate taxes, rent, insurance and maintenance and repairs. Those expenses are based on the amount of square footage you use exclusively for business.

If you have a lot of complex real estate investments, or even if you just own your own home, it’s a good idea to read up on what the IRS allows you to deduct and when.

For example, timing is everything. If you sell your home but immediately reinvest the windfall in a better property, you may be entitled to defer the taxes on those capital gains. On the other hand, homeowners who have lived in a house that served as their primary residence for two years can exclude up to $250,000 of the profit from their reported income–twice that for married couples. Investment property, on the other hand, has a whole different set of rules.

There are a number of places on the Web with information on real estate taxes, starting with the IRS:

• IRS: Selling a home looks at when you can avoid paying capital gains on the sale of your property.
• IRS: Rental Income and Expenses details how to report income and what expenses are deductible.
• IRS: Passive Activity Losses covers rentals.
• IRS: Residential Rental Property is the IRS’ guide to preparing your 2007 return if you own a vacation or rental home.
• Financial Web: A few investment real estate tax tips.
• Motley Fool: Trump Your Taxes With Real Estate.
• Field Guide to 1031 Exchanges by the National Association of Realtors looks in depth at the rule that investors to defer capital gains taxes on the exchange of like-kind properties.
• Financial Web: Taxes and Your Investment Real Estate.
• Smart Money: Taxes when you sell your home.
• Federal Real Estate Tax Rules for Property Owners.

If your tenant is diligent about paying the rent but still violates your rental agreement you have a legal right to evict this person.

If your tenant is doing something that is illegal, an annoyance to other tenants, or dangerous but not specifically prohibited in the lease, check with your city ordinances as they keep a list of violations that are just cause for termination. Make sure you document all of the violations so you have a record for the courts.

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You have just bought your first investment property and you are ready to dive in to being a landlord. The to-do list is surprisingly long: advertise rental property, create rental forms, figure out how to do credit checks, set up bank accounts for deposits, make repairs, and on and on. Make sure you add to the list gaining an understanding of the many federal, state, and local laws, governing your actions with your tenants. (more…)

credit: broomvondle

If you’re interested in the environment and you’re looking to a buy a home, you can combine your needs by working with a real estate agent that specializes in green real estate. This term refers to real estate agents who take an all-around eco-friendly approach to their work. On the consumer end, they assist you in finding a home that is energy-efficient. On the business end, they implement green practices in the office.

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credit: Micah Taylor

If you pay attention to the real estate trends happening in the United States today, you know that the whole nation is in the midst of a housing slump. However, you wouldn’t think that was the case if the only media you were exposed to was that being promoted by a group of home builders in Albany, New York.

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credit: JOE M500An interesting trend is coming out of the housing slump that has seniors reaping some unexpected benefits. Developers, whether out of greed or generosity, are offering a variety of services to the elderly to help them sell their old homes and move into the developer’s new buildings.

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The British government unveiled a new housing strategy this week, designed to help their aging population stay in their own homes longer. UK Housing Minister, Caroline Flint said the new policies are “about giving all older people a better choice.” Highlights of the new program includes:

• Requiring new homes to meet age-friendly design guidelines, including wider doors, improved bathroom designs, and stairways wide enough to accommodate lift chairs, by 2013.
• Requiring new social housing to meet those standards by 2011.
• Suggesting developers of new housing projects follow age-friendly guidelines, including better paving and curb design, convenient public rest rooms, disabled parking bays, and good street lighting.

For existing housing, the British government proposes to:

• Adopt a national rapid repair and repair service which will enable an estimated 125,000 older citizens per year to get the repairs and modifications they need to be able to support themselves at home independently.
• Establish a dedicated National Housing Advice and Information line to provide expert advice for older citizens about home repair.
• Increase funding for disabled citizens to be able to make home modifications to accommodate them in their exisiting property.

Although these policies apply to England, similar measures are likely to make their way across the Atlantic. What do you think?

photo via residentialcruiseline.com

Imagine spending the winter in the Caribbean, the summer in the Med, and the fall amid the fall foliage of the St. Lawrence Seaway. Residential cruise ships make all of this possible, with owning just one home. A growing concept, residential cruise ships are luxury vessels that offer buyers a floating home with all of the comforts of a five-star hotels.
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What is a real estate broker and do you need one? In general the term is used to describe someone who works between the seller and the buyer of property. Usually they not only help find a buyer or seller, but they’re also involved in making sure all the legal documents are signed and finalized and that the end deal is legal and binding. A more common term is real estate agent.

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credit: Gold Coast Real Tours
Selling your home can seem impossible in today’s tight market, but it’s not and the savvy sellers will be able to move their property faster by following the guidelines below.

Price for the Market
Research your market and what similar homes around you are selling for, this is a good guideline. Then consider any repairs you need to make or upgrades you have added to come up with your target price. This may not be the number you had hoped to get, or even the number you could have gotten a few years ago, but you have to be practical for the market today.

Fix the Flaws, Leave the Rest
If your home is in need of some repairs, especially ones that will show up on inspection, go through the added hassle and expense of having it repaired rather than letting it deter prospective buyers. If you?re thinking about redecorating, leave it alone and let the buyer do it their way.

All the World’s a Stage
Staging your home is key to making a sale. Just as a new wall color can change the feel of your home, a fresh, white wall can give it an illusion of space. And you want to make your home feel more spacious and less stylized.

Basically, you want to create a great first impression. Let people see that you cared about your home and that it’s a good sized home that they can picture themselves living in.

It’s not surprising when a wealthy celebrity buys a fantastic piece of real estate, or when they make a killing by selling one already swank abode and buying another. Like Kelly Ripa did when she traded up on her apartment.

But occasionally, a celebrity shows a real genius for real estate.

Merv Griffin was such a celebrity. Griffin, who entered show business in the 1950s as “the young romantic voice of radio” and hit the big time with the Freddy Martin band, singing “I’ve Got a Loverly Bunch of Coconuts,” is probably show business’s most successful real estate investor.

Griffin, who netted $50 for his first record, became rich as the inventor and producer of “Jeopardy” and “Wheel of Fortune.” After he sold the shows for $250 million, Griffin became involved in real estate out of boredom.

“I said, ‘I’m not going to sit around and clip coupons for the rest of my life,’ ” he recalled in 1989. “That’s when Barron Hilton said, ‘Merv, do you want to buy the Beverly Hilton’ I couldn’t believe it.”

 

Griffin bought the slightly passe hotel for $100.2 million and completely refurbished it for $25 million. Then he made a move for control of Resorts International, which operated hotels and casinos from Atlantic City to the Caribbean.

That touched off a feud with real estate tycoon Donald Trump. Griffin eventually acquired Resorts for $240 million, netting a reported paper profit of $100 million.

“I love the gamesmanship,” he told Life magazine in 1988. “This may sound strange, but it parallels the game shows I’ve been involved in.”

Griffin, who died last year, went on to become a billionaire who was perennially among Forbes’s richest.

Earvin “Magic” Johnson has been as successful off the court as he was in the years he was leading the Los Angeles Lakers to victory more than a decade ago. Johnson’s Johnson Development Corporation has been building retail/entertainment complexes in urban neighborhoods since 1992.

The company has formed partnerships with AMC Theaters, Starbucks, and TGI Fridays to develop previously untouchable neighborhoods in Los Angeles, Harlem, west Las Vegas and other underserved communities. The company recently announced plans to finance and office building and a condominium project in Nashville.

The company’s Canyon Johnson Fund is one of the nation’s largest urban real estate funds. JDC operates five multiplex Magic Johnson Theatres with 60 screens across the country. Since 1998, it has opened 57 Urban Coffee Opportunities stores in 38 cities. There are two Magic Johnson T.G.I. Friday’s restaurants in Atlanta and Los Angeles, and more than a year ago, the company teamed with Washington Mutual to open 15 home loan centers in five cities.

Johnson’s success as a real estate developer has changed the way other athletic superstars invest their money.

Basketball star Shaquille O’Neal has invested in urban real estate in Newark, New Jersey. Football player Keyshawn Johnson has been similarly inspired.

Johnson followed Magic into South Central Los Angeles and invested more than $1 million in real estate projects near where he grew up. He helped to fund the first new shopping center to open in the area since the 1992 riots, the Chesterfield Square Mall, where one of Magic’s Starbucks franchises leases space. Partnering with Los Angeles developer Capital Vision Equities, the former Tampa Bay Buccaneers receiver recently invested in a $123 million retail project that will connect to one of Magic’s 12-screen movie theaters.

Not surprisingly, Oprah Winfrey, the first first African-American woman to join Forbes’ list of the World’s Richest People, has put some of her money into real estate, including:

Oprah has actually been blamed for rising real estate prices in Hawaii. An urban legend has it that Oprah told her viewers to buy land on the Big Island. What Oprah actually recommended was that viewers invest in real estate.

The truth is, Winfrey, who owns 102 acres on Maui, never mentioned the Big Island on the show in question. Her guest was real estate mogul Donald Trump on April 8, 2004, when she mentioned Hawaii.According to transcripts, Winfrey said she likes investing in land because “God’s not making any more.”

 

“So if you get oceanfront property in Hawaii, a couple thousand acres … right along the beach. God’s not making any more land in Hawaii,” she said.

One of the people who Oprah helped to make famous, personal trainer Bob Greene, has been dabbling in real estate for years. Long before his association with Oprah made him famous.

Greene got his start in Miami in the 1980s buying foreclosed properties in Coconut Grove, as rental properties.

I found a house that had a guest house and it had a lot that could be separated and sold. This was 20 years ago, and it was $52,000, which I didn’t have, but I knew in my gut it was such a great deal: Oh my God, I could fix it up and I would have a rental and I could have income and a house and I could have a lot I could even sell out. It was my first experience, I tried to beg, borrow and steal and just didn’t have enough for the down payment and wasn’t able to get it. A year later, when I was finishing grad school, I visited the house and it was for sale for over three times that price. And from that day on, I said, the next time I know it in my gut that it’s a good deal, I won’t hesitate, I’ll do whatever it takes to buy the property.

Some celebrities, like Martha Stewart, have lent their name to developments as brands. A North Carolina community called Twin Lakes features homes decorated with Stewart-designed products from her Martha Stewart Living line. Other such partnerships include:

• The Jade, a 57-unit building in Manhattan whose design was influenced by Jade Jagger, a jewelry designer and daughter of Mick.
• Andre Agassi and his wife, Steffi Graf, formed a partnership with Exclusive Resorts to develop high-end vacation communities in the United States and abroad.

And some celebrities

, have just made good deals, including:

• Lindsay Lohan, who bought a condo on Hollywood’s Sunset Strip last year for $1.9 million and sold it, untouched for $2.5 million a few months later.
• Gwen Stefani, who bought a 5,000-square-foot home in Los Angeles for $1.4 million in 1998 and sold it in 2007 for almost $4.8 million.
• Paris Hilton, who sold her Spanish-style Hollywood home for $4.25 million three years after she bought it for $2.9 million.

A short sale, in real estate, is when the mortgage lender agrees to settle a mortgage for less than is owned on the property. In today’s market of dramatically falling housing prices, a homeowner may find his house is worth less than he owes on the property. Such situations, combined with escalating adjustable mortgage payments, have made short sales much more common than ever before. Short sales are expectedly to reach record levels in 2008. Some basic facts about short sales:

• Generally, the homeowner must be in default before the lender will consider a short sale.
• Short sales differ from foreclosure in that the bank agrees to not pursue the borrower for the difference between the sale price and the amount owed on the mortgage.
• A short sale is not a credit saver. Any money a lender “writes off” will be reported as income on a 1099 form to the IRS and the write off will remain on a borrower’s credit report for at least seven years.
• Short sales are not a way for investors to buy a house under market value. For a short sale to be approved by the lender, the seller has to prove that they could not sell the house for more (using comparable house sales, time on the market, and other factors).

   

A growing and disturbing new real estate trend is homeowners simply walking away from their property and their loans. Consumers who put little or no money down, who live in an area where their house is now worth less than what they owe on it, and are facing their mortgage payments being adjusted upwards are deciding that they are better off to just leave the house with the bank. Of course, such a move remains a black mark on your credit report for up to seven years. Still to some beleaguered consumers, it’s worth it.

So prevalent is this trend that a website has cropped up, “Walk Away Today,” that guides families through the process and helps to use the stress and fear of facing foreclosure proceedings.

Are such “services” beneficial to consumers or so they prey of homeowners who are down on their luck and encourage them to make disastrous financial decisions? Personally, I would feel more kindly towards this Web site if it didn’t have a “We’ll buy your home” button on the front page.

(photo credit flickr cc)