Amazon has a new partnership with a company that is called Realogy. The gist of it is that you’ll basically be able to buy a home off of amazon with an agent from Realogy. Both amazon and Realogy work with another company named Turn Key. Turn Key is a major company and owns businesses such as Zillow and Coldwell Banker to name a couple. So they know the real estate business well and are experienced with home buying and online sites. In return you get an incentive of somewhere around 1 to 5 grand where you can buy electronics or whatever you may need from amazon that can help you with your dream home. This is a game changer for the future of home buying. They are currently testing it in the major populated cities of the United States such as New York and Chicago. There are currently 3,000 agents ready to go and work for amazons new project. So there are ample amount of realtors who can help and are seeing this as a new way to buy a home. Amazon is ready to get into the realty business and it is coming sooner than we all think.
The biggest retail disruptor enters real estate. What are your thoughts on this?
Key Points:
1. There is a merger taking place between a real estate company and Amazon.
2. Amazon is looking to get into real estate and help people buy homes.
3. Amazon services for electronics and home needs will be available with the purchase of a home.
Once the buyer purchases a home, they can redeem complimentary Amazon Home Services and products ranging in value from $1000 to $5000 depending on the home purchase price.
The biggest retail disruptor enters real estate. What are your thoughts on this?
If you are in the market for a new home why not buy from Amazon it sounds like really good deal especially with the extras that you will gain from Amazon directly
See the original at: https://thinkrealty.com/amazon-real-estate/
Real estate foreclosures continue to trend downward. Analysis of property and loan data shows mortgages and real estate loans in the United States are showing a marked decrease in the likelihood of going to foreclosure, compared to this time last year. The decrease is evident not just in completed foreclosures, where the lender goes all the way through the court process to repossess the property, but also in filings for foreclosure, which doesn’t always result in the full foreclosure occurring. This trend of property owners avoiding foreclosure is apparent across nearly every state in America, and some have seen the number of foreclosures drop very significantly. Michigan and Massachusetts, for example, are down eighty-four and seventy-four percent, respectively. Metropolitan areas are also showing declines in the rates and number of foreclosures. New York city, for example, has seen foreclosures drop over half compared to a year past. This is good news for lenders as well as owners. For many lenders, the foreclosure process can be expensive and time consuming, even if they do end up with the deed to the property at the end of it. And for owners, they’ll find lenders are less likely to be skittish about extending credit in markets where loan holders are making payments and keeping current. Over all, fewer foreclosures are a good sign of a healthy property market.
The rate of foreclosures continues to drop; good news for real estate.
Key Points:
1. The rate of foreclosure starts was largely flat from April to May 2019, but down 9 percent from May 2018, which is the fourth consecutive month with an annual decline, ATTOM found.
2. Among metro areas that saw big drops were Birmingham, Alabama (down 67 percent), New York, New York (down 59 percent), Washington, DC (down 58 percent) and Philadelphia, Pennsylvania (down 57 percent)
3. Metro areas with populations greater than 1 million that saw an annual decrease in foreclosure starts included Indianapolis (down 82 percent), Houston (down 65 percent) and San Jose (down 58 percent).
A handful of state reported precipitous drops in completed foreclosures, including Michigan, which dropped 84 percent, Massachusetts (down 74 percent), Indiana (down 67 percent), Kentucky (down 66 percent), and New Jersey (down 64 percent).
The rate of foreclosures continues to drop; good news for real estate.
Foreclosures are on the downswing, for a year now; which is great for real estate and those investing in property. Where are the ups, and few ups, and by how much? Don’t get caught out not knowing before you sign on the dotted line for your next investment property; read up and stay informed!
Often it’s not just about ability, or even resources. Many times, success in business comes down to who you know. Beyond customers and client lists, beyond the network of contacts that can funnel leads and acquisitions to your operation, that list of contacts should really start with your mentor. Who you know can lead to what they can teach you. There are a lot of ways to gather experience in business, and there’s never going to be a true replacement for being hands on and having gone through the process yourself, but the wisdom, forewarning, and preparation a solid mentor can impart to you is a key asset. Not everyone can learn through osmosis, and figure things out on their own. When you have a solid and stable mentor on your side, you never lack for someone you can turn to for advice, for perspective, or just to be there when you find the going has gotten kind of tough. Real estate is about finance, but at its core it’s really about people. Someone who knows not just loans and mortgage as well as renovations and finding the right piece of property, but who knows how to build networks and interface with buyers as well as sellers is someone who very well might have a lot to teach. If he or she is willing to teach you, listening could be the best investment you ever make in your business.
The make or break for your real estate investing career could be your mentor.
Key Points:
1. A mentor is more than a coach!
2. A mentor should be a role model!
3.The best mentor relationships happen naturally!
By being around people with attributes that don’t come as easily for you … you will improve!
The make or break for your real estate investing career could be your mentor.
Though it does take money and knowledge, usually a lot of both, to succeed at real estate investing; what it can ultimately come down to is who you know. And among all the people in your contact list, the most important is your mentor. Someone with skill and wisdom, who works with you to pass it on and help you develop into the best version of yourself you can be in this business. Finding one is key if you want to succeed.
See the original at: https://realestateguysradio.com/how-to-find-a-mentor-and-make-it-work/
Rental income taxes can be confusing for real estate investors but it is crucial for investors to understand the filing process, deductions, and tax rates in order to be successful. There are a few key points to each which can make the tax filing process easier.
1. Determine your tax rate. by Find out whether your rental business is classified as passive or non-passive, and determine whether the property owner is an active participant.
2. Deductions reduce the amount paid in taxes. They are expenses that can be subtracted from your total taxable income. Some common deductions property owners may be eligible for include repairs, interest, property depreciation, legal services, home office expenses, insurance, and employee/contractor expenses, to name a few.
3. Know how to report rental income. Investors will need to submit IRS Form 1040 along with Schedule E papers. Form 1040 is the basic tax form where investors report their personal information and earnings. Schedule E forms are where specific information for each property is reported, including income, expenses, and depreciation. It is a good idea to keep detailed records and receipts throughout the year to make finding all of this information easier at tax time. Make sure you double check all information submitted to the IRS against your records to prevent any errors.
Key Points:
1. Security Deposits are taxable income in the year they were received.
2. Property depreciation, loan interest, repairs and insurance are all deductible expenses for property owners.
3. Accurate detailed records will make income to expenditures easy to determine.
One of the biggest mistakes made by investors and business owners during tax season is believing misinformation.
What is the best way to learn about Rental Income Tax
When you start investing in property, your taxes necessarily get more complicated. That shouldn’t put you off from it though. The income you get from real estate, and especially rental income from your properties, can be a welcome form of passive income, but it can also complicate your taxes. While you should definitely consult with a tax professional, you can also prepare by keeping good records and following some simple procedures.
See the original at: https://www.fortunebuilders.com/rental-income-tax/
As income gets tighter for everyone, it becomes all the more important to find ways to keep more of your money. Keep it working for you, keep it turning over in investments, and keep it from flowing away in taxes. Capital gains taxes are a big concern for real estate investors, because property is typically a capital gain when it accrues value that is then realized in a sale. And even passive income investors, those who are investing in property for rental or ongoing income purposes, can see capital gains taxes assessed on occasion.
A key factor in the tax code is how profits, which are usually taxable, can be offset with losses. This is designed to encourage business activity, and help cushion the fiscal blow investors and companies take when financial events don’t turn out quite as well as would have been hoped for. Offsetting taxable profits with losses is called tax-loss harvesting, and is a strategy that can shield income from being turned over to the Internal Revenue Service.
Another strategy takes advantage of a provision in the tax code, Section 1031, that allows taxes to be put back if the taxable income from a property sale is instead invested back into a qualifying venture. Your tax lawyer can guide you, but generally the reinvestment needs to go into the same kind of investment; so property proceeds would be put into a new piece of real estate. This lets your profits continue to work for you.
Don’t let the tax man take all the fun out of property profits; avoid capital gains taxes.
Key Points:
Tax-loss harvesting, 1031 Exchanges and converting rental properties into a primary residence can help investors defer or avoid paying some or all of their capital gains taxes
See the original at: https://www.fortunebuilders.com/avoid-capital-gains-tax-on-rental-property/
The steady income from your real estate investments can be wonderful, but capital gains can eat into the profits. Don’t let your taxes eat away at what would otherwise be something you can benefit from. Look for ways to keep more of your income in your pocket, or at least working for you. Consulting a tax lawyer could be the smartest investment decision you ever make.
Money is an obvious requirement in order to live and pay the bills. Without money, working for a wage is a necessary task. Unless someone is a full-time investor, it is likely that the burden of monthly expenses are limiting that individual from quitting your job and embarking on self-employment. This is called the cash we need now!
Having cash monthly will give an individual more freedom. This freedom will give that individual the power to do what he or she desires, whenever he or she wishes. Stopping a Cash Now as well as a Cash Monthly income is not advisable. However, the prospect of a Cash Later source of income is something that takes care of itself, while the Cash Now and Cash Monthly works for the immediate needs.
This source of revenue comes when an individuals elects to sell, interchange, or refinance properties at a later date. Withholding properties is an appreciating asset. Not only is it appreciating every month, but leasing tenants are paying off the property’s monthly mortgage. Therefore, an individual can invest in a property as a lucrative, cash-generating asset with nearly no monthly costs and flip/sell the property to generate a sizable cash payout.
If one is looking to generate a lot of Cash Monthly, It is advisable that he or she may want to ensure that the property cash inflow continues. In order to do so, he or she may want refinance to get cash out, but never 100% of the invested cash. Withdrawing on 100% will only lead to problems. It is advisable that an individual withdraws approximately 75% of the cash, thereby leaving 25% property equity. Doing this will offset problems in a possible market downturn. Moreover, withdrawing on 75% of the equity will still permit a positive cash flow.
Following these guidelines will help individuals increase their net worth because they will have increased equity in their properties.
The proceeds from your properties, or what you put in, has three main purposes for your portfolio.
Key Points:
Can you see how your kingdom is being created? Can you see how it can be created in a short time?
Cash isn’t just a general pool of funds. If you think of the financial assets you have available in three different terms, it helps you prepare and structure your investing operation to be more efficient. Don’t just dump it all into one category; divide the cash you have on hand, what’s coming in, and what will come in, into separate pools and plan based on that.
See the original at: https://thinkrealty.com/3-kinds-cash-build-kingdom/
A Real Estate Contract: is a legally-binding document that outlines the agreed upon terms between two or more parties in a real estate transaction and becomes legally binding when signed by all parties.
4 Types of Real Estate Contracts:
Contracts Should:
Be written in clear language (avoid abbreviations)
Include deadlines and specify what happens if not met.
List all agreed terms of sale – such as included appliances or home warranty information.
Have a written contingency that outlines what will happen after the home inspection. Can the buyer walk away? Does the seller need to fix according to the inspection report?
Include a Financing Clause – This allows the buyer to back out if they can’t obtain financing or cannot sell their current home.
Specify who pays what in closing costs.
Outline a default plan – What happens to each party if one of them walks away. Is there a monetary penalty? This can help avoid a court case.
Common Types of Real Estate Transactions for the Investor:
Finding the money and having the nerve isn’t enough for property investing; you need the right deal.
Key Points:
There are essentially four types of real estate contracts: purchase agreement contracts, contracts for deed, lease agreements and power of attorney contracts. They each have different uses and stipulations.
In real estate, everything comes down to the contract. Sure you need the money, and the gumption to invest, but at the end of the day what’s in the contract is what controls the deal. To make the right moves, and be able to profit from them, you have to do more than find great properties at amazing prices; you need to finalize the deal in black and white, legally. Don’t neglect the contract, or you’ll find the effort you spent searching out that deal goes to waste.
Flipping real estate has become mainstream; not just something investors do, but an activity done for entertainment in the same manner treasure hunters will dig through old garage sales. TV, radio talk shows, and Facebook are all full of how-to guides and tale trading of fantastic flips as well as those that turned to flops.
But the fact remains, when done right flipping a property can be a golden opportunity to turn pennies into dollars. And doing it right starts not just with the willingness to roll up your sleeves and dig into the hard work, but also taking the time to do your research, line up financing, and be willing to stick with what can sometimes be a tough turn around opportunity.
Successful real estate investors will flip properties, even if they don’t set out to do it. Not every property is perfect as it is when you acquire it. Improvements, basic maintenance, updating the appointments in the building or simply cleaning structure and lot up; it is often something previous owners will let slide until the new owner takes possession and is willing to be proactive. For investors, flipping is about profits and increasing the value of your holdings. Whether for sale or rent, when you turn a tumbledown listing around, it benefits your bottom line.
Don’t let real estate flipping just be something you watch on TV; invest and enjoy the profits!
Key Points:
1. Short term, high yield investment for you if you pair up with an investor.
2. Wholesalers can be met locally and may be willing to fund or help with funding and give advice.
3. A large group of people with the money can do it with ease, or hire a team to do it for them.
The truth is that many people have the assets available to buy rental homes, but they’re not doing it because they don’t have the time or the inclination to be an active investor.
Don’t let real estate flipping just be something you watch on TV; invest and enjoy the profits!
House flipping, turning real estate around for resale, has become a fixture on television and some Facebook groups. But it doesn’t have to just be entertainment. Anyone willing to work hard and do their research can update a neglected property, or fix up a down and out house. The profits can be sizable, whether you’re turning it around for sale or just getting into the rental market. Wholesale investing is a path to profits.
See the original at: https://thinkrealty.com/wholesaling/
Kevin Ortner and Greg Rand have recently merged their two rental companies to create an all-purpose platform for rental property management. Although the two are on close terms now and working toward the same ambitious goal, they started out on opposite sides of the country with very different visions. Rand started OwnAmerica in 2010, a flagship company that provided a comprehensive marketplace offering investors an easy way to view statistics on and analyze different rental properties. Meanwhile, across the country Ortner had started Renters Warehouse with the aim of providing management services to new rental property owners that needed assistance figuring out how best to manage their properties after the housing bubble burst. It only took a few years for Rand and Ortner to discover each other and come to the realization that their separate companies were actually two sides of the same coin. It was in 2018 that Rand had the idea to merge the two, and in early 2019 Renters Warehouse acquired OwnAmerica to create a new and more innovative platform for investors to buy and manage rental properties. As of today, Renters Warehouse has plans to greatly expand their workforce and take on even more properties. Although it may seem ambitious, real estate trends in the U.S. offer an optimistic view for the future of Renters Warehouse and the rental market.
It’s less expensive to lease than claim a home, which is astonishing, shifting the tides in the US.
1. Market crashes can present opportunities to buy assets at low valuations.
2. The time to sell an asset is often not at the bottom of an economic cycle because cycles rebound (i.e. are cyclical).
3. It is often cheaper to rent than to own a home.
Rent Estate is essentially using real estate over the long term to create wealth
It’s less expensive to lease than claim a home, which is astonishing, shifting the tides in the US.
This article does a fantastic job at reinforcing the strategy of using patience and calculation rather than panicking when crises strikes. Using the most recent housing market crash, Ortner and Rand describe how their patient and lng-term mentality helped those who were most affected by the recession survive financially by staying calm and managing what they did have rather than make up what was lost. A great way to view life, don’t you think?
See the original at: https://thinkrealty.com/going-for-billions/
A real estate closing is more of a process than a step in the buying process. A “closing” can also be called “escrow”, “completion” or “settlement”. This is the last bit of work in home buying process.
The seller and the buyer have agreed on a deal and now the closing process starts. You must first put money into an escrow account. A third neutral party will handle the escrow account money to protect the buyer and the seller. Then a whole list of things needs to happen:
A title search needs to be conducted.
Insurance for the new owner needs to be purchased.
A closing agent needs to be obtained.
A home inspection needs to be performed. At this time if any issues a rise a new agreement must be reached by both parties.
On the date of closing you will sign all paperwork and transfer ownership.
There are at least 12 steps in the home “closing” process.
Before you own a real estate holding you’re investing in, you’ve got to close the purchase.
Buyers Closing Responsibility:
1. Bring a photo ID
2. Bring a Cashier’s Check or Purchase Funds.
3. Bring Proof of Insurance for the New Property
By getting pre-approved for a mortgage early in the home buying process, buyers can assure sellers that they can indeed obtain a mortgage loan from their lender in time for closing.
Before you own a real estate holding you’re investing in, you’ve got to close the purchase.
After you’ve made the deal, but before you can take possession and start looking for tenants, a real estate purchase has to be closed. While transferring an asset as large as most property holdings can be a daunting task, and does contain some legal and administrative requirements that must be adhered to, studying the process and following the steps, along with involving a lawyer to help finalizing the deal’s closing, will get you safely through to ownership.
See the original at: https://www.fortunebuilders.com/real-estate-closing/