Attention Homebuyers: Double-Barrel Stimulus Deadlines
March 16, 2010 by Kenny Santos
Filed under Real Estate Investing
| By Jamie Johnson
The great author and speaker Og Mandino once said, “I will act now. I will act now. I will act now.” This is great advice for prospective homebuyers over the next 45 days, as two key government programs that have kept home ownership more affordable than ever wind down to their completion. First, the Federal Reserve’s Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher…and potentially even higher…over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result. The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers. In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%. For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards. If you or anyone you know is looking to purchase or refinance a home, waiting could be costly! Act now…so you can save later! |
I am here to assist you!!
Best regards,
Jamie Johnson
Mortgage Advocate
Security National Mortgage Company
6965 Union Park Center, Ste. 470
Midvale, UT 84047
Office: 801-748-4878
Mobile: 801-792-0583
Fax: 801-303-9232
Real Estate Investing- Save Money on Taxes
February 11, 2010 by Kenny Santos
Filed under Real Estate Investing
One of the most reliable and profitable investments you can make is to buy real estate. Whether you purchase commercial buildings, residential homes, or so-called “mixed use” property that can function as both a residence and a business location, there are many options and opportunities for a return on your capital.
And there are special government programs designed to facilitate your venture - grant programs for helping fund affordable houses, small business loans for minorities, low down payment options for veterans or active members of the military, and tax breaks for those who renovate and restore historical buildings, to name a few. Just by owning your own home, for example, you are guaranteed certain tax advantages in the form of deductions and exemptions. And those perks perform as “passive” investments, by saving you dollars that you would otherwise automatically part with each year at tax time.
Here are three of the most popular tax benefits enjoyed by homeowners:
Tax-free Capital Gains
If you have lived in your home for two years or more prior to selling it, you can qualify for a 100% exception on the profit you make at closing on your investment, thanks to legislation enacted in recent years. And you can do it as many times as you want - banking tax exempt profits on your home as often as five times a decade.
Mortgage Interest and Property Taxes Many loans taken out to help pay for a home come with tax deductible interest payments. Yes, consumers would like to see interest rates stay low, because this helps them leverage the loan into equity. But many borrowers fail to realize that as rates rise, so do deductions that are tied to those interest rates. So in times of rising rates, tax deductions related to home ownership help to offset those costs.
Home Improvement Expenses
If you buy a home as a fixer-upper, you may be able to deduct the cost of repairs at tax time. And if you decide to sell the home you’re living in, you may be eligible for deductions for things like landscaping, painting, wallpaper, and carpet purchased within a few months of the sale.
And if you want to expand your real estate investment beyond simple home ownership, you can do what many first-time investors do, which is to purchase a home that also doubles as an income-producing property. You can, for instance, buy a duplex and rent half of it while you live in the other half or create an office space in your garage and deduct it as your home office. If you purchase two houses you can live in one while leasing the other one to help pay both mortgages. Or you can simply buy a residence that doubles as a business, as many Bed & Breakfast proprietors have chosen to do. Ask your tax planner to explain the benefits of owning your home or purchasing property for investment income. You may be pleasantly surprised to learn that the benefits are some of the best in the entire tax code.
But keep in mind that investments in real estate are not as limited as they used to be. The traditional options of buying property to live in, lease to others, or barter as a time-share are still viable and practical ways to help grow a nest egg. But there are also numerous other methods for leveraging investments in real estate, and many of them don’t even require an actual acquisition of real estate property.
You can, for instance, purchase a mutual fund that invests specifically in real estate assets, and in that way participate indirectly in the real estate market through shareholder ownership of stock. Or you can trade various real estate related options, trusts, and funds, and reap benefits from property equity without ever actually owning any buildings or land.
Whatever investment approach you choose, it is wise to take help from professionals who can assist you along the way. Attorneys who specialize in real estate, tax planners, Realtors, insurance brokers, and building appraisers and inspectors are among those experts who can offer guidance and insight to investors, to help them avoid risks while capitalizing on the potential that real estate offers to both experienced and first time investors.
About the Author
Troy Fullwood, self made millionaire, nationally known investor, real estate guru, speaker and coach; would like to share with you creative ways to building your own “Money Tree.” In 1997, Troy founded a company called Pinnacle Investments. The main focus is buying first lien performing and non-performing commercial and residential real estate notes.
7 Myths About Real Estate Investing That Are Costing You Tens of Thousands of Dollars
December 31, 2009 by Kenny Santos
Filed under Real Estate Investing
Copyright 2005 Alex Nghiem
Did you know that real estate investing has created more millionaires that ALL other industries combined? The question, then, is why are more people not invested in real estate? Even with the increased awareness in real estate investing, more people are still familiar with other forms of investing such as stocks and mutual funds.
In this article, I will discuss 7 myths that about real estate investing that are costing you tens of thousands (maybe hundreds of thousands of dollars). These myths persist because most people invest in real estate using conventional financing, which often requires 5% or more as a down payment. Assuming that $150,000 is average price of a house in your area (in most cities, it’s significantly more than that), you would need $7,500 as a down payment (and this doesn’t even include other fees such closing costs). The purpose of this article is to share techniques of creative real estate investing that debunk these common myths about real estate investing.
1. Myth #1: To create wealth, you have to invest stocks and mutual funds.
Fact: Real estate investing has created more millionaires that ALL other industries combined incluing Internet marketing, stock investing and mutual fund investing. In fact, according to the CEO of FNMA, in the hottest bull market in history, more people ended up creating wealth through home ownership than through stock ownership.
2. Myth #2: Real estate investing requires a lot of money.
Fact: Once you learn how to buy undervalued properties, you can find all types of people who will lend you their cash. You can find these people at your local real estate investor association or by contacting us. Additionally, you can use an option (typically $10 to $100 for the option fee) to control the property and not even need to raise any capital.
3. Myth #3: Real estate investing requires good credit.
Fact: This is related to Myth #1. Again, once you learn how to find undervalued properties, you can find all types of people who will lend you their credit, especially if the property has significant equity. Additionally, you can also use an option to control the property and this technique doesn’t require that you have good credit.
4. Myth #4: Real estate investing requires you to do major rehabs in dangerous neighborhoods.
Fact: While you can indeed make good money doing rehabbing, you can make even more money working with “pretty houses”, houses in suburban areas that need little renovation. In actuality, you can make $20,000 or more per $100,000 of property (thus, in a high priced market such as Florida, the average profit would be $40,000 or more per property).
5. Myth #4: Real estate investing requires dealing with tenants, repairs or house payments.
Fact: Again, while you can do that, you can also make money in real estate investing without ever having to deal with tenants, repairs or house payments through the use of options. One of our clients recently made $9,800 in 4 days on his last option deal.
6. Myth #5: You can only make money in hot markets.
Fact: You may believe that you can only make money by investing in hot markets such as Las Vegas and Florida. The reality is that once you learn how to buy undervalued properties, you can make money regardless of what the local or national market is doing.
7. Myth #6: You have to take huge risks when investing in real estate investing.
Fact: You actualy have more control when buying real estate than when you buy stocks and bonds. You can determine the value of the house by using the multiple listing service (MLS) and commercial databases and as long you can the properties under value, you have a significant safety margin.
These myths about real estate investing are probably preventing you from real estate investing and therefore costing you tens of thousands of dollars. By using options and other forms of creative real estate investing, you can overcome these myths and make money in real estate investing without dealing with tenants, repairs and holding costs or needing a lot of cash or good credit.
About the author:
To get a free real estate course on how you can make $10^000 in 90 days…without dealing with tenants, repairs and holding costs, visit http://www.wealthautopilot.com/course
Real Estate Investing- Save Money on Taxes
December 29, 2009 by Kenny Santos
Filed under Real Estate Investing
One of the most reliable and profitable investments you can make is to buy real estate. Whether you purchase commercial buildings, residential homes, or so-called “mixed use” property that can function as both a residence and a business location, there are many options and opportunities for a return on your capital.
And there are special government programs designed to facilitate your venture - grant programs for helping fund affordable houses, small business loans for minorities, low down payment options for veterans or active members of the military, and tax breaks for those who renovate and restore historical buildings, to name a few. Just by owning your own home, for example, you are guaranteed certain tax advantages in the form of deductions and exemptions. And those perks perform as “passive” investments, by saving you dollars that you would otherwise automatically part with each year at tax time.
Here are three of the most popular tax benefits enjoyed by homeowners:
Tax-free Capital Gains
If you have lived in your home for two years or more prior to selling it, you can qualify for a 100% exception on the profit you make at closing on your investment, thanks to legislation enacted in recent years. And you can do it as many times as you want - banking tax exempt profits on your home as often as five times a decade.
Mortgage Interest and Property Taxes Many loans taken out to help pay for a home come with tax deductible interest payments. Yes, consumers would like to see interest rates stay low, because this helps them leverage the loan into equity. But many borrowers fail to realize that as rates rise, so do deductions that are tied to those interest rates. So in times of rising rates, tax deductions related to home ownership help to offset those costs.
Home Improvement Expenses
If you buy a home as a fixer-upper, you may be able to deduct the cost of repairs at tax time. And if you decide to sell the home you’re living in, you may be eligible for deductions for things like landscaping, painting, wallpaper, and carpet purchased within a few months of the sale.
And if you want to expand your real estate investment beyond simple home ownership, you can do what many first-time investors do, which is to purchase a home that also doubles as an income-producing property. You can, for instance, buy a duplex and rent half of it while you live in the other half or create an office space in your garage and deduct it as your home office. If you purchase two houses you can live in one while leasing the other one to help pay both mortgages. Or you can simply buy a residence that doubles as a business, as many Bed & Breakfast proprietors have chosen to do. Ask your tax planner to explain the benefits of owning your home or purchasing property for investment income. You may be pleasantly surprised to learn that the benefits are some of the best in the entire tax code.
But keep in mind that investments in real estate are not as limited as they used to be. The traditional options of buying property to live in, lease to others, or barter as a time-share are still viable and practical ways to help grow a nest egg. But there are also numerous other methods for leveraging investments in real estate, and many of them don’t even require an actual acquisition of real estate property.
You can, for instance, purchase a mutual fund that invests specifically in real estate assets, and in that way participate indirectly in the real estate market through shareholder ownership of stock. Or you can trade various real estate related options, trusts, and funds, and reap benefits from property equity without ever actually owning any buildings or land.
Whatever investment approach you choose, it is wise to take help from professionals who can assist you along the way. Attorneys who specialize in real estate, tax planners, Realtors, insurance brokers, and building appraisers and inspectors are among those experts who can offer guidance and insight to investors, to help them avoid risks while capitalizing on the potential that real estate offers to both experienced and first time investors.
About the Author
Troy Fullwood, self made millionaire, nationally known investor, real estate guru, speaker and coach; would like to share with you creative ways to building your own “Money Tree.” In 1997, Troy founded a company called Pinnacle Investments. The main focus is buying first lien performing and non-performing commercial and residential real estate notes.
7 Myths About Real Estate Investing That Are Costing You Tens of Thousands of Dollars
September 21, 2009 by Kenny Santos
Filed under Real Estate Investing
Copyright 2005 Alex Nghiem
Did you know that real estate investing has created more millionaires that ALL other industries combined? The question, then, is why are more people not invested in real estate? Even with the increased awareness in real estate investing, more people are still familiar with other forms of investing such as stocks and mutual funds.
In this article, I will discuss 7 myths that about real estate investing that are costing you tens of thousands (maybe hundreds of thousands of dollars). These myths persist because most people invest in real estate using conventional financing, which often requires 5% or more as a down payment. Assuming that $150,000 is average price of a house in your area (in most cities, it’s significantly more than that), you would need $7,500 as a down payment (and this doesn’t even include other fees such closing costs). The purpose of this article is to share techniques of creative real estate investing that debunk these common myths about real estate investing.
1. Myth #1: To create wealth, you have to invest stocks and mutual funds.
Fact: Real estate investing has created more millionaires that ALL other industries combined incluing Internet marketing, stock investing and mutual fund investing. In fact, according to the CEO of FNMA, in the hottest bull market in history, more people ended up creating wealth through home ownership than through stock ownership.
2. Myth #2: Real estate investing requires a lot of money.
Fact: Once you learn how to buy undervalued properties, you can find all types of people who will lend you their cash. You can find these people at your local real estate investor association or by contacting us. Additionally, you can use an option (typically $10 to $100 for the option fee) to control the property and not even need to raise any capital.
3. Myth #3: Real estate investing requires good credit.
Fact: This is related to Myth #1. Again, once you learn how to find undervalued properties, you can find all types of people who will lend you their credit, especially if the property has significant equity. Additionally, you can also use an option to control the property and this technique doesn’t require that you have good credit.
4. Myth #4: Real estate investing requires you to do major rehabs in dangerous neighborhoods.
Fact: While you can indeed make good money doing rehabbing, you can make even more money working with “pretty houses”, houses in suburban areas that need little renovation. In actuality, you can make $20,000 or more per $100,000 of property (thus, in a high priced market such as Florida, the average profit would be $40,000 or more per property).
5. Myth #4: Real estate investing requires dealing with tenants, repairs or house payments.
Fact: Again, while you can do that, you can also make money in real estate investing without ever having to deal with tenants, repairs or house payments through the use of options. One of our clients recently made $9,800 in 4 days on his last option deal.
6. Myth #5: You can only make money in hot markets.
Fact: You may believe that you can only make money by investing in hot markets such as Las Vegas and Florida. The reality is that once you learn how to buy undervalued properties, you can make money regardless of what the local or national market is doing.
7. Myth #6: You have to take huge risks when investing in real estate investing.
Fact: You actualy have more control when buying real estate than when you buy stocks and bonds. You can determine the value of the house by using the multiple listing service (MLS) and commercial databases and as long you can the properties under value, you have a significant safety margin.
These myths about real estate investing are probably preventing you from real estate investing and therefore costing you tens of thousands of dollars. By using options and other forms of creative real estate investing, you can overcome these myths and make money in real estate investing without dealing with tenants, repairs and holding costs or needing a lot of cash or good credit.
About the author:
To get a free real estate course on how you can make $10^000 in 90 days…without dealing with tenants, repairs and holding costs, visit http://www.wealthautopilot.com/course
Real Estate Investing- Save Money on Taxes
September 13, 2009 by Kenny Santos
Filed under Real Estate Investing
One of the most reliable and profitable investments you can make is to buy real estate. Whether you purchase commercial buildings, residential homes, or so-called “mixed use” property that can function as both a residence and a business location, there are many options and opportunities for a return on your capital.
And there are special government programs designed to facilitate your venture - grant programs for helping fund affordable houses, small business loans for minorities, low down payment options for veterans or active members of the military, and tax breaks for those who renovate and restore historical buildings, to name a few. Just by owning your own home, for example, you are guaranteed certain tax advantages in the form of deductions and exemptions. And those perks perform as “passive” investments, by saving you dollars that you would otherwise automatically part with each year at tax time.
Here are three of the most popular tax benefits enjoyed by homeowners:
Tax-free Capital Gains
If you have lived in your home for two years or more prior to selling it, you can qualify for a 100% exception on the profit you make at closing on your investment, thanks to legislation enacted in recent years. And you can do it as many times as you want - banking tax exempt profits on your home as often as five times a decade.
Mortgage Interest and Property Taxes Many loans taken out to help pay for a home come with tax deductible interest payments. Yes, consumers would like to see interest rates stay low, because this helps them leverage the loan into equity. But many borrowers fail to realize that as rates rise, so do deductions that are tied to those interest rates. So in times of rising rates, tax deductions related to home ownership help to offset those costs.
Home Improvement Expenses
If you buy a home as a fixer-upper, you may be able to deduct the cost of repairs at tax time. And if you decide to sell the home you’re living in, you may be eligible for deductions for things like landscaping, painting, wallpaper, and carpet purchased within a few months of the sale.
And if you want to expand your real estate investment beyond simple home ownership, you can do what many first-time investors do, which is to purchase a home that also doubles as an income-producing property. You can, for instance, buy a duplex and rent half of it while you live in the other half or create an office space in your garage and deduct it as your home office. If you purchase two houses you can live in one while leasing the other one to help pay both mortgages. Or you can simply buy a residence that doubles as a business, as many Bed & Breakfast proprietors have chosen to do. Ask your tax planner to explain the benefits of owning your home or purchasing property for investment income. You may be pleasantly surprised to learn that the benefits are some of the best in the entire tax code.
But keep in mind that investments in real estate are not as limited as they used to be. The traditional options of buying property to live in, lease to others, or barter as a time-share are still viable and practical ways to help grow a nest egg. But there are also numerous other methods for leveraging investments in real estate, and many of them don’t even require an actual acquisition of real estate property.
You can, for instance, purchase a mutual fund that invests specifically in real estate assets, and in that way participate indirectly in the real estate market through shareholder ownership of stock. Or you can trade various real estate related options, trusts, and funds, and reap benefits from property equity without ever actually owning any buildings or land.
Whatever investment approach you choose, it is wise to take help from professionals who can assist you along the way. Attorneys who specialize in real estate, tax planners, Realtors, insurance brokers, and building appraisers and inspectors are among those experts who can offer guidance and insight to investors, to help them avoid risks while capitalizing on the potential that real estate offers to both experienced and first time investors.
About the Author
Troy Fullwood, self made millionaire, nationally known investor, real estate guru, speaker and coach; would like to share with you creative ways to building your own “Money Tree.” In 1997, Troy founded a company called Pinnacle Investments. The main focus is buying first lien performing and non-performing commercial and residential real estate notes.