Category Archives: Return on Investment
The economy in 2015 continued to improve complete with existing home sales hitting nine-year highs due to job growth, rising consumer confidence, and low interest rates. Individual micro markets vary from zip code to zip code and consistent year over year gains are everywhere, but there may be flattening on the horizon with the potential for interest rate increases in 2016 along with buyers wanting to take a breather and wait for another pullback in prices.Read More »
Palo Alto’s Real Estate, Businesses and Top-Rate Education Attract People Nationally and Internationally
Californians have known forever that Palo Alto is a world-class city. This status was cemented in 2015 when one renowned study named the city one of the top 100 best places to live on the planet. Palo Alto is the beating heart of the Silicon Valley with legendary companies like Facebook, Tesla, and HP launched here. Palo Alto attracts not only movers and shakers but innovative thinkers, thanks to the world-renowned Stanford University. The city’s educated populace, amazing arts presence with Bing Concert Hall, world-class cuisine such as Evvia and Tamarine, state-of-the-art bike paths and commuter rail options are just a few reasons homes for sale in Palo Alto get snatched up in record time. Palo Alto real estate is limited but the desire to live here is decidedly unlimited!
Do You Want To Shoot Yourself In The Foot? Sell Your Home Off-Market Or Don’t Expose It To The Multiple Listing Service With An Open House – That Will Do The Trick Every Single Time – Guaranteed!
No matter what you call it, “off-market, private, or pocket listings” are on the rise again as sellers are somehow being persuaded again to keep their properties off of the Multiple Listing Service and out of the stream of commerce during this “red-hot” real estate market. The typical “song-and-dance” they are told is that by keeping their property listing ‘private’ their privacy will not be invaded by troops of public gawkers walking through their homes, and that they will not have to hassle with signs, lock-boxes, and agents showing their property, etc. Whatever the rationale that is being sold to sellers it is unfortunate because they are actually unknowingly leaving large percentages of potential profits on the table.Read More »
Attention Downsizing Baby Boomers – Sell Your House, Protect All Your Equity, and Pay NO Capital Gains Taxes with this Simple Strategy Using Tools Congress Gave Us
Many of my parent’s friends who have fortunately accumulated significant equity in their homes over the last several decades are faced with a dilemma of downsizing into a smaller home because they can no longer conveniently or adequately take care of their properties. Importantly, many of them desire a simpler-smaller property, usually all single-level, accessible and easy to maintain. The problem exists because if they sell their home with substantial equity they face significant capital gains exposure even with the IRC Section 121 exclusion in place.Read More »
Cost Value Ratio 2015 – What Are The Best Improvements Sellers Can Make To Improve Return-On-Investment?
Last year I wrote an article on “Cost-Value Ratio” or more appropriately what improvements are the best return-on-investment for homeowners or sellers – see link right here – http://shellyrobersonrealtor.com/home-improvements-critical-now-more-than-ever/. Home improvements are critical for sellers and buyers alike, but are sellers getting the right advice? Consistently I see mistakes by sellers, usually at the advice of their realtors. Here is some factual evidence that sellers can use, despite their realtor’s advice, which have real data to back up the recommendation.Read More »
Importantly, hard money loans are not for first time home buyers. Hard money loans are typically loans of “last resort” for borrowers who can’t find a conventional loan to accomplish the debt bridge between the down payment and the purchase price of real estate. Hard money loans have sharply higher interest rates and usually are expensive to originate – much greater than traditional real estate financing. Hard money loans are often used to bridge financing between undeveloped land and construction or to take advantage of a great deal that has to close quicker than they could get traditional financing.Read More »
Investing In A REIT Is Participating In The Commercial Real Estate Investment World Without Actually Buying
Real Estate Investment Trusts or “REITs” are companies or corporations or other entities that owns, and most commonly operates a portfolio or income-producing real estate or real estate-related assets. REITs are designed for individual investors to earn portions or shares or fractions of the income produced through commercial real estate ownership. The beauty of which is the investor is not required to actually go out and purchase the commercial real estate themselves as others have already done that. REITs come in all categories and may include office buildings, shopping malls, resorts, apartments, self-storage facilities, hotels, warehouses, and mortgages or bundled mortgage loans.Read More »
In Your Retirement Quest Put Real Estate Investments In Your IRA And Watch It Grow
Over the years I have had many clients ask me if it was possible to put real estate investments inside of their IRAs. The answer is “Yes” but the IRA has to be specific and has to not have certain restrictions. Thinking outside the traditional investment box can reap many rewards for you and your family. Here are some IRA basics and some ideas for getting real estate investments inside of your IRA.Read More »
Due Diligence Will Reduce Mistakes For Real Estate Investors
Any time of day you turn on your television you can find several infomercials or shows which depict investing in real estate as an easy path to riches and wealth. Every day you get in front of your computer screen you will run across ads and coy and clever marketing programs which also suggest that you should quit your job and begin a high-powered career in real estate investing. The truth is that real estate investing, like every business requires significant education, due diligence, and perseverance. Importantly, most new real estate investors make many mistakes along the way which are sometimes avoidable, but do help with the education process and learning curve. Here are some very important topics which you need to become familiar with before you begin your journey down the path to real estate investing.Read More »
If You Are Buying A Home Just For It’s Square Footage Think Again
How does the real estate marketplace calculate and represent square footage of listed homes in marketing materials and in the multiple listing services? To be honest there are several common practices and it is quite possible that a home might have two or three square footages which are all close, but not the same. Some people may include the garage square footage, some may include the basement, some may include unpermitted covered patios, and others may not include any of those areas. To compound things there is no standard by which the entire real estate community utilizes, thus there will always be some ambiguity and lack of clarity as to the precise square footage of a home.Read More »
Tax and Estate Planning is Critical to Avoid Unnecessary Tax Burdens and Consequences
I have clients ask me all the time if it makes sense to give their property to their kids or should they wait to die and let their kids inherit it. The practical answer from a tax planning perspective is to allow the property to transfer at the time of death. If you haven’t spent any time planning your estate or your property succession strategy you should sit down and think about how you would like things to pass, and who should be the recipient of the properties. If you have a substantial estate with multiple properties chances are you already have done this, if not an estate planning or trust attorney can help you through this process. Planning now can prevent unnecessary taxes or burdens being placed on your loved ones.Read More »