How should one go about investing a substantial inheritance in real estate?

Investing an Inheritance in Real Estate

I highly recommend that you assemble your investment team. A reputable tax attorney is an absolute must. You don’t want to make any acquisitions or sales without consulting your tax professional. Your tax pro will assist in determining your ROI , return on investment before and after taxes.
A lender knowledgable in investment properties is another very important team member. Leverage provided through financing  is a critical factor  when maximizing ones investment returns. Leverage simply means making a  down payment instead of paying cash. If one can break even or have a positive cash flow after putting say 20% down on a property, why pay cash? A good lender can be of invaluable assistance. Read More


Delays in Short Sales

The market has improved significantly.  Home values across the nation are coming back very quickly. Lenders are not only responding to the higher prices they are driving them. I spoke with Sandra Thompson, manager of North American titles short sale department. Sandra manages a short sale processing department in one of the hardest hit regions


Investing in REITs (Real Estate Investment Trusts)

This is where a trust is formed and shares are sold to individual investors for the purpose of acquiring and managing real estate. Those individual shares qualify for favorable tax treatment such as a 1031 tax deferred exchanges. If the shares are sold out right one would be subject to capital gains or losses As


Economic Conditions & Forecasts in the Sacramento Region

“The stock market has doubled in the last five years, corporate profits are strong, historically low interest rates have helped the bond market and inflation is benign.” Reported Glenn Kenes, managing director of investments for Barber and Kenes, Wells Fargo Advisors. “While it may not feel like it with the aftermath of the dreaded  fiscal


What Must You Disclose When Renting or Selling After Repairing Tenant Caused Damage?

State law provides tenants with the basic right of non-discrimination, the right to privacy and a livable home. The rental  or lease agreement must also spell out the proper use of the security deposit. It’s the landlords duty to inform tenants of important state laws and individual landlord policies such as no smoking, no pets


What’s a Good Way to Handle Sale of Depreciated Property Tax-Wise?

With the sale of depreciated commercial property recapture of your depreciation could be significant. I have a couple of thoughts. You may want to consider doing a 1031 tax deferred exchange into a residence that you would move into in a year or two. If the value of residence that you exchange into is equal


Should a Seller Always get a Pest Control Report?

Listen to your Realtor. The lender will not require a pest clearance unless the appraiser calls for one. The lender will automatically call for a pest clearance if the buyers agent made it part of the contract. In any case the lender will rely on the appraiser. If there are obvious signs of dry rot


Does It Make Sense to Have Two Termite Inspections?

You can get a hundred different inspectors and probably get a hundred different variations on the reports. When you have inspections from more than one inspector my recommendation would be to have the inspector that your most comfortable with read the other inspectors report. If he’s in agreement, fine, he can amend his report. If


What is the Effect of the ‘QM’ Rule

The CFPB mandated by the Dodd -Frank Wall Street reform and consumer protection act issued its final QM rule on January 10, 2013. Yes, borrowers now have to show their ability to repay a loan. The Final Rule affects all creditors of residential mortgage loans subject to the Truth in Lending Act and goes into


Research Foreclosures

Buying a foreclosure can be financially rewarding or it can be your worst nightmare. I would suggest that you do your homework. You can buy them on the court house steps or on the open market. If you are thinking about the court house steps, sign up on foreclosureradar.com. The local foreclosure sales take place