Author: Anibal Group LLC RealtyNetWorth.com

Portfolio Real Estate Brokerage Officer - For Your Bigger Picture

The results are in …2015

January 9, 2016

So what can one actually expect when they purchase an ‘in-place’ real Image1estate investment ? Well here are actual numbers of the highest and lowest producing properties  that we’ve set up and mange for active client portfolios.

Clients, request a copy of the below spreadsheet to compare your investments against each other – it will assist in planning  ‘which to keep’ vs ‘which to cut loose’.  (Non-clients: available for a small fee) Installation and customization available from site or remotely.

FB_ad_cmpgn_2015.01.b

In pdf format BOY_Letter_RNW_2016_01_01_sideB

Passing title at death

December 18, 2015

The dad signed a deed giving property to the child, left it in his desk assuming child would find it after death.

Deed was

  1. Never delivered
  2. Never accepted
  3. Never recorded (aka perfected) although not a requirement but a good idea
  4. and is now subject to probate without a will to pass the property

Deeds undelivered until after death in Michigan do not survive death.

Lesson: See the lawyer now.

Leaving your house to the children

December 18, 2015
For future planning FYI.leaving property to children Anibal Group LLC RealtyNetWorth.com

particularly the part:
“….Joint Tenancy:……Another problem with owning property in joint tenancy is that when you add a co-owner to
the property as a joint tenant, you lose many aspects of property control. Many parents think that by
adding their son’s or daughter’s name to the property that it is a way to pass the property on without
a probate and this is generally true, but …...bla bla……. You also
expose the property to your co-owner’s debts and obligations, so by adding your son’s or daughter’s
name to the property, you could potentially lose your home to your child’s creditors if he or she is
successfully sued. There could also be gift and/or income tax problems if your co-owner is not your
spouse.
 
…….bla bla bla…..
Finally, property held in joint tenancy only receives a step up in the basis equal to one-half of
the property value at the death of the first joint tenant.
Paul’s notes:

Easiest tax wise, the spouse owns with spouse….property willed to child(ren). Child(ren) get full stepped up basis to reduce tax burden on them. Parents get ease of mind not having to worry about child being sued and attachment to parents property.

I’ve seen children added to deeds prior to passing of parent(s). Sometimes this is great, but I saw a real estate agent give advise she wasn’t at all qualified to give & it created an immense hardship ($15ooo tax bill) that could have been avoided with a 5 minute call to myself.
Please
This should involve legal AND taxation planning – if not insurable risk as well – consultation.
Other related

Water Test in Michigan

October 17, 2014

Test your water regularly and as part of a purchase offer if a home has well water. Why ? There are all sorts of michigan well water testing real estate carcinogens in most ground water – not all is at high levels, but you need to stay informed. Recent cancer diagnosis of friends have brought this to my added attention. They eat clean, and live healthy otherwise.

You can use a state or local lab, but I’ve added a link to National Water Testing, a lab I recommend.

Call me first before testing for more details if you are considering buying or selling.

Quickest way to get house information

August 7, 2014

Here it is, want Property Info and you want it now ?

Take a photo on your iPhone and thats it !

What school goes with that house? What are prices like in this neighborhood? How much are taxes on this home? ALL of these questions can be answered with the click of your camera. Use HomeSnap to take a picture of almost any US home to find out all about it.
iOS: HomeSnap (Free)
Android: Coming soon

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Free tablet to use already loaded up with real estate house hunting, buying, selling, investment applications – apps you’ll find useful and already to go !

Zillow, Trulia are not Realtors

May 12, 2014

Per Inman News article

Zillow, and other third-party real estate search sites like Trulia, have made a big push to real estate agent broker screening referral advocacy paul anibal team alloverusa__michigan_to_florida_california-to-maineget data feeds directly from brokers and MLSs because, without a direct feed, the portals face accuracy and timeliness issues with the listing data they get from a variety of sources.

A recent study by the brokerage and referral site ZipRealty, for example, showed that 16 and 17 percent of the homes listed as for sale on Zillow and Trulia, respectively, in the markets the study looked at were not listed as for sale in the MLS.

The point here is when you are ready to get to work on your buy/sell activity, there is no substitute for a licensed flesh and blood brokerage that has access to info you need – when you need it.

Ask me about the house they ‘valued’ at $184k then $93k just after I’d sold it for $150k! The seller pointed me to a similar house listed a block away – ‘Zillowed’ at $160k – eventually sold for $85k. Take it from there.

More <|> Meet & Discuss Further <|> Share Your Wish List

Selling: Does the Brady Bunch still live there ?

April 28, 2014

Good article on selling the `ol family home. Other houses are selling, yours isn’t – but why ?faqs2-300x225[1]

At this point I’ll switch to a quote from the MI Assoc of Realtors magazine article: “….“See, it’s like this,” he says. “The house looks as if the Brady Bunch still lives here.” What he means is, the house hasn’t been updated since you and your siblings have moved out….”

If you haven’t heard it a million times:

  • Neutral colors
  • NO personal items on the counters/tables/walls
  • Front door has fresh paint and lockset
  • Bath and kitchen are updated
  • Any storage areas 60% occupied at max
  • Mow lawn/ wack down the shrubs/ fresh mulch/ and flowers
  • Clean clean clean clean

Option #2: Empty the house of all but a minimal amount of furniture and discount it by 30-40% and let the buyers make the upgrades. Caution, the house still needs to be clean and mostly empty so they can easily evaluate or prepare to discount even further.

What about HUD homes ? Investor vs Owner Occupant

April 9, 2014

Often there are some seemingly good deals you may see either in the MLS ( Realtor.com ) or on HUDHomestore.com.

Sometimes they appear on one but not the other.

There are general guidelines:

  1. Most often the deed listed buyer must occupy for at at least 1 yr and cannot buy another for 2 yrs. subject to $250k fine and jail time.
  2. They are as is period. You pay to turn on/off utilities and rewinterize any plumbing inspection.
  3. Since they are as is – your min. $500 – 1000 deposit will not be returned.
  4. Bids are usually open for 10 days, then decided on daily for the next 5 days.
  5. At 15 days on market, there is a possibility for investors to bid.

For more reading: http://investfourmore.com/2013/04/06/owner-occupants-guide-to-purchasing-hud-homes/

 

Local large city property taxes are often far over assessed.

February 13, 2014

According the Detroit News, there is a large inequity from property to property. This is true in most large cities in MI. Further, the local board of review personnel often doesn’t know how to or refuses to assist you, the taxpayer they work for, in the process. The article leaves out important details of interpretation. Don’t assume the house you buy will change property taxes for the better – DO assume they will change with ownership change. We can chat further.

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Detroit— Detroit is over-assessing homes by an average of 65 percent, leading to higher tax bills, according to a Detroit News analysis of more than 4,000 appeal decisions over the past three years by a state board.

Why use an ALTA

September 29, 2013
ALTA Title Policies

Exactly which defects are covered under the insurance depends on the type of insurance policy. A standard coverage policy normally insures the title as it is known from the public records. It also insures against such hidden defects as forged documents, conveyance by incompetent grantors, incorrect marital statements, and improperly delivered deeds. An extended coverage policy, such as an American Land Title Association (ALTA) policy, gives more coverage. For instance, it will protect against defects that may be discovered by a property inspection, rights of parties in possession, examination of a survey, and certain unrecorded liens. Most lenders require a lender’s ALTA policy.

ALTA’s expanded coverage policies cost about 10 percent more, but offer significantly more benefits. For example, the policies will pay up to 125 percent of the original insurance amount in case of claims to help account for inflation. Other expanded coverages include:

  • encroachments on the land made by neighbors after the date of the policy,
  • inability to access the property by vehicle or a pedestrian, and
  • zoning violations made by previous owners that must be corrected by the insured owner.

Complete list of the expanded coverage benefits: www.alta.org/forms

Port your Florida Homestead Exemption

September 28, 2013

Portability of the “Save Our Homes” (SOH) benefit is available for homeowners who had homestead exemptions on their old home after 2006, and who purchase a new Anibal-Group-Realty-Net-Worth-beach-at-sunset-floridarealty101.jpghomestead. Homeowners can transfer their SOH benefit to a new home if they had the homestead exemption on the old home in either of the previous two years.

The maximum benefit a homeowner can transfer is $500,000. A person who moves to a more expensive home will transfer the dollar amount. A person moving to a less expensive home transfers the percentage value.

Each applicant for the transfer must complete Form DR-501T “Transfer of Homestead Assessment Difference” and submit it to the office of the property appraiser in the county where the new homestead is located. For more information, refer to the following chart.

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Flipping profits more than triple from 2012

July 19, 2013

Here’s the bullet points:

  • Flipping is risky business.
  • Just two years ago during the January-to-June period, flippers lost an average of $13,206 per home. Last year they turned an average profit of just $5,321.
  • And although flipping continues to increase in the nation as a whole, activity dried up along with the bargains in 32 of the 100 markets that RealtyTrac examined…. like Las Vegas, Phoenix, Southern California and Atlanta
  • flippers continue to find big bargains in one state that was hit hard by the housing crisis: Out of the nation’s 15 most profitable metropolitan markets for home flipping, almost half were in Florida.

Yes we assist investors           http://AllOverUSA.com

Story:

http://homes.yahoo.com/blogs/spaces/flipping-profits-more-triple-2012-042258187.html

Institutional buyers are buying distressed properties,…gigantic hoards

April 5, 2013

……If you think rapidly rising home prices is a good trend, you might want to think again.

………….Institutional buyers are beating owner-occupied traditional home buyers to the market. With gigantic hoards of cash at their disposal they are buying distressed properties, mostly those in foreclosure or through lender facilitated short sales, one at a time and in bulk where they can.

  • …. Blackstone Group (BX) has already spent more than $3.5 billion to amass a portfolio of more than 16,000 single-family homes. Chairman, CEO and Co-Founder of Blackstone recently said the firm was spending about $100 million a week buying homes.
  • Silver Bay Realty Trust Corp (SBY) is a newly spun-off  real estate investment trust, shed from its REIT parent Two Harbors Investment Corp. (TWO), that owns 3400 homes and is adding to its inventory of purchased-to-rent properties.

…but conceivably…. the first-in money will try and create a floor and push prices higher to sell out as high as possible……

story

Open House Marketing ~ caveat:

March 1, 2013

You’ve heard about “disclosure”… well, I believe that a Guest at an Open House needs to disclose if:

Anibal-Group-RealtyNetWorth-Selling-Open-house-brown-wooden-sofa-set-with-lighted-table-lamp

  • They are only being nosy – looking for decorating ideas
  • They’re hungry and looking for a cookie
  • They need to use the bathroom
  • They’re casing the joint  for goodies
  • They have ever been, or intend to be, rapists, murderers or other deviants

How does your broker attract well qualified serious buyers? How are they screened once in your home. Are your ‘smart house’ tools up to date and your valuables out of reach?

A good start: use ‘ID verification’ and get ‘proof of funds’.

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10 Rental Home package coming to market

January 30, 2013

Not formally listed/ not in MLS, here’s a ready to go set of rental homes in good condition with a long history of care and occupancy. Contact for showing and cash flow information.

REAL ESTATE DEPRECIATION
Acquired Rented for:

 Taxes
yr.mo
FLINT ADDRESS RENTAL Portfolio —— ——
149 Linsey Flint Aug-87
3368 Springvalley o/s Apr-88
2715 Eaton Pl Flint Jul-88
2814 Eaton Pl Flint Feb-88
3030 McCollum o/s Feb-89
2814 Gibson Flint Nov-89
3062 Raywood o/s Feb-90
1131 Fulsom Flint Jul-90
2908 Eaton Pl Flint Feb-91
1489 Maria o/s Apr-93
——
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Investment Landlording Concerns

January 16, 2013

You want to invest but are afraid you won’t get paid. You also realize that a lawsuit against that mean `ol landlord can make the most honest look for ways to sue. Enter the Self Directed IRA.

Lets summarize:

Concerns:

  1. Not get paid
  2. Lawsuit lightening rod
Strategies:
  1. Have prospective tenant get a Section 8 commitment before purchasing investment
    • &/or make offer on property subject to expected tenant getting Sec 8 approval – works with non foreclosure properties.
  2. Invest not as individual but as SD IRA / LLC holding title: actions would potentially be limited to the insurance policy related to that property –
    • Make sure you do not manage the property during occupancy of tenant or when they are home or tell them all the wonderful things you preformed on the property, then liability may be added to you as the one who built the steps

     

Want to learn more ?

  • Take a look at our Pinterest area for visual charts etc.
  • There is more info on our SD IRA page and FreeRent101.com sister site.
  • Consider attending a local SD IRA event – we’ll attend with you if you wish.
  • Give us a call. We’ll chat by phone &/or meet informally.

Michigan Right to Work – I smell appreciation

December 20, 2012

For us left in MI, here’s some sobering stats and realities. Per the Wall Street Journal:Anibal Group LLC RealtyNetWorth.com real estate broker Fenton Linden Hartland Lakefront Investments Consulting Management Tax

“Between 1980 and 2011, total employment in right-to-work states grew by 71%, .. in non-right-to-work states … 32%. .. in Michigan … 14% during that time…. inflation-adjusted compensation grew 12% in right-to-work states, but just 3% in the others….

…the bill he signed into law on Tuesday is “pro-worker,” …does not change any aspect of collective bargaining other than preventing employees from getting fired for choosing not to join or remain in a union and pay union dues or agency fees, which may go toward political causes they don’t support. Options are of course part of the reason America was formed, in contrast with communist & socialist economies.

The good news ? MI just became a RTW state – as such, we are now in competition for importing businesses & workers to fill new jobs. This should bring buyers where we’ve had sellers for so long. Those that are against this new law I can’t really agree with, to wit: “Collective bargaining still exists … workers are of course free to organize….”

[MI is the only state to loose population in the last 10 yrs…. the statistics go on and are overwhelming in their conclusion ….so what is this guy thinking >]    “…Democratic Rep. Doug Geiss threatened: “There will be blood. . . . There will be repercussions.”

http://online.wsj.com/article/SB10001424127887323981504578175263199214992.html