Tag Archives: real estate

1031 Exchange: What is a Qualified Intermediary and Do You Need One?

Couple checking details of property being traded

Couple checking details of property being tradedUsing a qualified intermediary is vital to the success of a 1031 exchange transaction. While the entire process is straightforward, IRS rules are complex, and one misstep could void the benefits of a 1031 exchange. So to leverage the deferred tax benefits that a 1031 exchange could provide, you’ll need help from a qualified intermediary, notes 1031 Exchange Place.

What does a qualified intermediary do?

A 1031 exchange qualified intermediary is responsible for selling your property, purchasing the like-kind real estate investment, and transferring the deed over to you. Your qualified intermediary would likewise be responsible for safeguarding the proceeds of the sale, preparing all the relevant documentation, and making certain that the 1031 exchange transaction would be completed with the guidelines of the IRS.

To take advantage of the deferred tax benefits and complete the transaction, you, as the exchanger or seller, should enter into a written agreement with your qualified intermediary prior to closing your existing property, or relinquished property’s, sale. But who could perform the tasks of a qualified intermediary?

The IRS guidelines state that neither your children, nor parents, nor siblings could serve as you qualified intermediary. The IRS likewise forbids any individual considered an agent of yours, including your real estate agent, lawyer, CPA, or broker, to serve as your qualified intermediary unless this specific individual hasn’t represented or worked with you within the last two years.

Hiring a qualified intermediary for a 1031 exchange

Before hiring a qualified intermediary, you should do your due diligence and research his or her credentials, references, and experience with 1031 exchanges. Likewise, check if the qualified intermediary has omissions and errors, as well as fidelity insurance coverage to help safeguard you against potential negligence or fraud.

It’s also imperative that you seek advice from your tax advisor when entering into a 1031 exchange transaction to help make certain that the entire process is in full compliance with IRS guidelines. You need to make sure that your qualified intermediary knows about specific IRS private letter rulings that could make the IRS disqualify him or her as your qualified intermediary.

Remember, working with an experienced, qualified intermediary is essential to the success of your 1031 exchange so make sure that you find someone that could get the job done as quickly and smoothly as possible.

Buying a Commercial Property in Vancouver: What to Remember

commercial propertyBuying a commercial space in Vancouver is an expensive process that you need to do with due diligence. You have to create a proper plan to ensure the success of such an endeavour. There are several factors that you need to consider when choosing a commercial property. Here are a few things to remember when it comes to choosing a commercial space for sale in Vancouver, Canada.

Look for a Good Location

You need to consider the location of the property, especially when it comes to your target market. You need to do thorough research on which areas have a higher potential to attract your target customers.

Work With A Licensed Real Estate Agent

You need to look for a certified real estate broker when looking for a property. Real estate agents can provide you with excellent properties on sale that will most likely offer you a good deal. Working with a licensed real estate broker will offer you with the assurance that they have the right set of skills to do the job for you.

Know the Laws

Most commercial properties are subject to environmental investigations to ensure that they are appropriately regulated. So, ensure that you follow the rules of law to prevent any problems in the future. You have to prepare for a property inspection and ensure that your business follows all environmental regulations set by the government.

Estimate Your Expected Returns

You should also consider the expected returns when deciding on a commercial property. Keep in mind that you’re not just profiting from your products or services. You can also create even more revenue on your commercial property as well. You should also consider rental cash flows as a measure of your ROI.

Looking for the right commercial property for your business is essential, especially if you’re looking for profitable business growth. Working with a professional can help you with your decisions and can ensure your success.

Land Surveyors: Your Partners in Property Assessment

Land surveyor A land surveyor’s work is to measure the three-dimensional aspects of land to outline the legal history of the property, its current condition and physical features. Land surveyors in Auckland, New Zealand go through a training process to qualify and be licensed to carry out the work. Here are the times when you should consider a land surveyor.

When buying new property

You would want to find out the legal history of the piece of land you are interested in including its exact size and boundaries. Only a surveyor can help you get the right information. Also, you will know whether any structures around are within the property boundaries.

 When selling the property

Buyers tend to be more at ease buying a property with a recent survey document. Although they too will have to carry out their independent survey, this will build their trust in you.

When building new structures

You would not want to build on your neighbour’s property. When putting up new structures or a fence, it is essential to have a surveyor check out whether you are within your boundaries. Also, you will want to know whether the structures meet the required legal standards in the area.

When subdividing land

Land surveyors in Auckland can help you divide property, which comes in handy when you want to sell or divide property. He can also draft a subdivision proposal and take into consideration any legal procedures to follow.

When applying for a mortgage

Banks and other financial institutions will require a recent survey of the property before they lend the money. They may not rely on the old survey carried out when buying the property because zoning and building laws change periodically.

Surveyors can help property owners when disputes arise. They can give expert evidence in court regarding the land and any structures in it. Also, a surveyor can help you avoid any legal problems even before you buy the property.

What to Do First Before Viewing Potential Homes

A couple looking to get a mortgageIf you’re thinking of buying a home, you probably have an idea of what you want. You’d love a home with a large kitchen, a spacious master’s bedroom, or a large backyard for the kids. You may even have a list of what qualifies as “the one” or the perfect home. Viewing homes is an exciting process and it’s easy to fall in love with a house that is beyond what you can actually afford.

The First Thing to Do

VIP Mortgage and other mortgage companies in Tempe note that before you start looking for a house, it is best to get prequalified first. This is to know how much you can afford and start looking for houses within that price range. Doing so can avoid disappointments and financial difficulties in the future. The best part is, it is easy to get prequalified, as you can do it with a single meeting with a lender or over the phone.

With mortgage prequalification, you can:

  • Know how much loan you can afford or borrow (an estimate) and plan accordingly.
  • Determine if you qualify for certain mortgage programs.
  • Know the requirements or the things you can do qualify for a loan and better rates.
  • Stick to properties that meet your needs and current finances.

Making Sure You Can Afford

It is common for many first-time homebuyers to get so preoccupied with finding a house that meets all their needs. They overlook this important process, which is crucial in buying “the right one.” Note that buying is a major financial commitment (which can be an investment or debt), so you need to make sure that you can afford paying for it and all the associated mortgage costs.

If you have a serious intention of buying, you can proceed with loan pre-approval. This is more detailed than prequalification, as you need to submit certain financial documents to a lender. This is to assess your credit history and current financial situation. Based on these details, your lender can tell you how much you can borrow. A pre-approval can give you an edge over others when making an offer or a bid.

Factors to Consider When Hiring Land Developers

Ground breaking of a land to be soon developedBusinesses these days rely on investing their money in several areas. These could include stocks, foreign exchange, and real estate. Many companies focus on real estate and building commercial properties as these could significantly increase their company’s value. So it is essential for business owners to find developers and consultants who could help them build up their investment.

Companies like Cato Bolam Consultants advise business owners that when they are vetting land developers, it is imperative to consider a project’s duration, the land developer, and the post-project completion period. Here are key considerations to make before starting a building project with a developer.

1. Budgeting.

Understanding the financial requirement, limitations and possible solutions at the beginning of a project is critical. This helps you in planning and managing the cost of a project. As such, hire a developer who has in-depth knowledge of land development finance and can help you through the process. Therefore, it is better to hire a company that will provide financial planning consultation.

2. Industry Experience.

Whatever structure you plan to build on your property, every business has its specific requirements that not all property developers can meet. Therefore, it is critical to hire a company with the relevant expertise, experience, and ability to plan and execute that particular project. They should help you find the right property and location and execute the project from start to finish. This way, you will have your project meet your vision and overcoming possible financial strains.

3. Local Appeal.

The appeal of your project to the local and regional authorities depends on how it can benefit the community. So you should look for ways to get their approval. You need to hire a reputable developer who will help your project become acceptable to the local authorities. Additionally, have the land developer design your project in a way that it will benefit the community without negatively affecting their day to day lives.

The above factors should be on top of your checklist when sourcing for land development consultants. That way, you will be guaranteed of a successful outcome that not only meets the standards but also exceed expectations.

Upgrade Your Home and Increase Your Property’s Value

Exterior renovation and landscapingIt always pays to upgrade your home to increase its value and make the most out of your investment. Here are some techniques you can do to boost your property’s value.

Add Some Energy Efficient Installations

If you live in New Mexico, consider installing residential solar panels in your home. These panels will help you save energy and even the environment. Aside from this, your property’s value could increase approximately by $30,000. Even better, you can enjoy a significant decrease in your electric bill. The solar panel will essentially pay for itself through your savings.

Invent and Optimize Space

Don’t add new rooms since the cost won’t be equal to the added value of the house. Instead, invent a new room by optimizing the space.

One of the most popular techniques is using the space under the stairs as a reading nook, a place for books, or a storage space for toys or beverages. You can also add shelves and introduce compartments that promote additional space. Extensive cabinets, in particular, are a favorite and will increase your home value.

Keep the Main House Well Maintained

Homes are prone to depreciation – but you’ll be able to slow this down by maintaining the building well. Treat the wood for termites, care for the roof, maintain the insulation, cover the cracks, and make sure that the foundation holds.

Improve the Front Yard with Potted Plants

While a beautiful yard is always a big attraction, potted plants will also make your home appealing at a lower cost. These are easier to move around while a yard requires more labor to maintain. Not only does this give you room to plan and manoeuvre, but this also gives prospective buyers the option to change the area’s appearance.

People purchase homes with the idea of staying there for a long time. Like all assets, however, you should plan and make home improvements that will serve you well in the future.

3 Essential Details on Building a Green Home from Scratch

Eco-friendly Homes An eco-friendly home is a worthy idea. But it is rarely a simple project. Its construction doesn’t just mean choosing the right materials. It also means creating systems that allow sustainable living. When you’re serious about building a green home, here are the top 3 things to consider:

1. Cost is not an issue with green homes.

If you’re worried about the cost of building a green, sustainable home, you do have economical options. Manufactured home dealers, for example, provide affordable, good quality housing that is energy efficient. Some even make manufactured homes with recycled products and construction techniques that reduce waste and conserve energy.

If you do buy a more expensive green home, you can recoup what you spent — and earn a little profit when you resell. A study from the University of California finds that green homes sell for 9% more than average properties. The home will need certification though.

2. Your home should always work toward reducing, reusing, and recycling.

Your home should be efficient in using temperature control. It should also allow maximum efficiency for air circulation and light diffusion. This means that during comfortable weather, you don’t have to modify the temperature or turn on additional lights. The waste disposal system should also allow for sorting and recycling.

3. Going Green is a commitment.

Living sustainably isn’t just about enjoying your eco-friendly home. From the food you consume to the electronics you use to the clothes you wear, you have to consciously choose products that are not damaging to the environment.

Part of living green is reducing waste. So use things until they’re unusable, and even then, find a way to recycle parts.

Living green is not always easy. But the rewards are well worth your effort.  With the right eco-friendly home, you can achieve the kind of life you want, without harming the environment. And with certification for your eco-friendly house, you can also end up with a good profit when you resell.

Making a Property Investment: What You Need to Know

Property InvestmentBuying an investment property is a big decision that may overwhelm you. But, in Australia, property investment has become common, as many Australians are either owning real estate or starting to get into the market.

Regardless of education and financial position, anyone can have a go at real estate and be successful. There is no right or wrong timing when it comes to investing in a property. Below, MediProCapital shares a list of what you need to know before investing in a property of your own.

Pre-Investment Preparation

Set your goals and know why you’re doing property investment in the first place. Then, set a deadline as to when you want to achieve these goals.

Don’t assume that you won’t be able to afford it at the get-go. Try listing all your assets because this will give you an estimate of how much you can invest. As long as you have a good credit history, a stable job and a solid history with all of your past and present employers, then you should be good.

From here, start budgeting so you can balance your income and expenses. This will let you know where you’ve been spending your money and help you plan for bigger expenses.

Making or Breaking Your Investment With the Location

Your investment will perform well if it is in a popular location or somewhere in the centre of everything. If you find a potential location for your property, then find out what they are valued at and how they have been faring in terms of rates over the past years. You should also know what the going rates are for particular accommodations.

Also, assess the property’s accessibility. As aforementioned, being at the centre of everything helps because this is what most renters look for when they consider a place to rent. Access to public transportation is also important, as well as the location of the central business district.

Be Prepared for Taxes

Even investments are susceptible for taxes. But, as long as you budget your profit, handling your taxes will be an easy task.

All of these can be intimidating, especially for people who are in the process of making an investment. But, think of how this type of investment can benefit you in the end. The benefits outweigh the challenges you may face.

What to Consider When Hiring Real Estate Managers

Real Estate

Real EstateInvesting in real estate sounds great only if you have access to sufficient capital to the venture. The rental property, without a doubt, provides a steady income. Despite the venture offering a stable source of money, managing two or more properties can be time-consuming and sometimes stressful if you have others thing to do. For this reason, property managers takes away the hustle involved – giving you enough time to enjoy the profit of your investment and perhaps expand your estate.

Here are some things you need to look for when hiring your next property manager:

The experience

Before you trust a property manager in Brisbane, industry professional urbanproperty.com.au notes that you need to prove their capacity to handle any property. The potential company needs to provide a list of the current and past properties they have managed and perhaps the reason they stopped. In addition, they need to show you the frequency of eviction cases on their current properties. A higher rate indicates the inadequate capacity to ensure thorough screening of tenants on admission.

The management fee

When it comes to property management, you need to understand that the agency operates to make money. The cost, however, varies from one manager to the agency and is often tied to the kind of service that you get. While you are looking to lower the cost of managing the house, you should be able to balance between high level of accountability and the fee.

Management approach

Often, your building requires physical inspections and repairs especially when the occupants vacate the premises. The contractor needs to indicate the frequency of both interior and outer surfaces to keep the house in ambient condition. If you have a low tenant turnover, the agent may be required to make annual physical inspections on the interior side of the premises. They also need to highlight the mode billing for repairs and maintenance costs.

Reduce the rate of evictions through a qualified property manager. Before hiring one, though, it’s important to arm yourself with the right information to avoid lifelong regrets.