21 Apr 09 Disclaimer, Please read…
Paragraph 1 This is a blog. It is called “Simon Sez This About That”. It is written by a single author, Stephen Simon. The Author works for Simon & Simon RPS inc. a Florida Corp. All posts are the intellectual property of the above mentioned Florida Corp. The blog is owned by the above mentioned Corp. The Corp. Simon & Simon RPS inc. is a very small corporation, having almost no assets. (more…)
Tags: blog disclaimer, disclaimer
22 Apr 10 The new real estate investor must have “Holding Power”…
During the last real estate run-up (which because of this enduring downturn feels like “Ages Ago”) everyone was an investor!
The 26 year old real estate agent that owned 5 townhouses in one subdivision (true story! we were looking at one of them as they were all entering the foreclosure process) is a thing of the past.
The boy friend and girl friend that were buying the villa for $220,000 without a washer & dryer with no money down are hopefully gone from the ranks of real estate owners.
I bear these folks no ill will, it’s just they they never should have been in the situations they were allowed to construct in the first place…
Without the demonstrative evidence of proper money handling, you can’t save up a “Down Payment” and if you can’t do that you shouldn’t own real estate. That’s why the rental market exists.
I’d like to have the idiots that approved the young real estate agent’s fourth and fifth mortgages brought up on charges; because they were surely acting in a criminal and fraudulent manner.
Well hopefully these types of situations are behind us (we’ll see). To be sure the foreclosure and short sale market will continue for years to come until this mess cleanses itself (because the Government doesn’t clean or fix anything). That is why I chose the to title this post as I did.
From this point on, if you want to play in real estate you had better bring some cash to the table; and you better have some in reserve as well! Oh I know Obama & his minions are going to continue to create bailout & handout programs (much to my displeasure) but they will not dominate the marketplace nor will they be long lasting into the future. They can’t be because they simply didn’t/don’t work…
The costs associated with real estate (at acquisition and disposition) coupled with the reality of the need for “an interest” in the property to promote responsible behavior all will combine to require the “Real Estate Investor of Today and Tomorrow” to have some jingle in their pockets and I think that is the way it should be…
Like reading this post? Buy me a cup of coffee :)18 Apr 10 Neighbors, “They can make it or break it… the sale that is”
The drive to the actual property is unavoidable.
It can be a crescendo of joy, as the well kept yards & homes nearby actually make everyone going to look, feel better about the property they are going to see, even before they get there.
Waterfront & golf courses can increase the flow of sertonin in the brain (the aforementioned is my exaggerated opinion not scientific fact).
Big opulent homes close by can pull the value of the subject upward without even physically touching it…
Or you can have the exact opposite situation!
You can drive through homes so poorly taken care of, that no matter what shape the “One” you’re going to look at is in, you are already seeing “Tobacco road”…
If the guy across the street has six kids it’s a roll of the dice whether or not you’ll see baggy pant’s boys or pink haired/goth girls hanging around .
Maybe the physical state of the neighborhood is fine; there could be some “Socially Upsetting” ingredients:
- a political rally in the common area (and it’s the wrong Party)
- a block party is starting at 8 pm and they’ve actually blocked off access to the street with 64 Chevy’s (but it’s not July 4th, or Xmas)
- a local branch of the Klan is holding their weekly “Cross Burning”
Or maybe it’s something less obvious but just as dangerous; like a Nosy Neighbor with a big mouth…
We’ve all heard of them, and have often run into them. Who didn’t laugh (at least a little bit) at the famous nosy neighbor, Gladis Kravitz on Bewitched?
If you’ve ever had a close encounter with a nosy neighbor you know they can blow up a sale all by themselves…
Perhaps a drive by the property at differenttimes of the day on both week days and week-ends would be in order if you’re the buyer?
If you’re the broker here’s hoping “No one is home next door!”
Like reading this post? Buy me a cup of coffee :)Tags: in the neighborhood, neighbors, nosy neighbors, real estate
14 Apr 10 When A “Drama Queen” is asked about staging you can expect to hear nonsense…
I will get flamed for this post, of that I’m sure; but I don’t care…
I was listening to a conversation amongst two Divas of Home Staging; it was frightening to hear each one “Out Suggest” the other as to what must happen before any home could sell…
When someone starts talking absolute nonsense and calling it science they will get a response from me:
Anyone can understand the value of de-cluttering, cleaning and refreshing a home.
Suggesting things like replacing outdated TV’s with newer flat screen models to appeal to new young tech savvy buyers is well, just stupid!
To tell a seller (who may be in for a six month sales process) that they have to remove their entire way of life from the home while it is on the market is the credo for the Drama Queen Staging Expert!
Buyers are not that stupid… They expect touches like that when entering a Model home, not one that is on the resale shelf…
The agent that suggests removing the dog’s dish would be met with an angry Pug in my house! Hank doesn’t like people that touch his dish (unless you are filling it).
Telling someone that their stereo doesn’t make it and must be boxed up and taken away is asinine.
If the seller is living in the house that has now become the subject property, to be sure a good cleaning, some Spackle and maybe a fresh coat of paint in some places is in order; but to advocate on the side of “Life Style” overhaul and deceptive placement of items in closets fools no one.
If you think an un-made bed kills the sale see how being 5% higher on your asking price than the competition is does for your offer activity…
How much is it?
How big is it?
How old is the roof?
How come you’re selling?
The questions remain the same; even after all of these years 
Tags: home stage, real estate
08 Apr 10 What will the end of the “Tax Credit” mean for the housing market?
The end of April is fast approaching. That wouldn’t ordinarily mean anything other than Summer is about to be here; but this year there is another significant thing that happens as April ends, the “Tax Credit” will likely disappear…
I didn’t and still don’t agree with bailouts of any kind. I feel they enable bad behavior, punish good behavior and rarely accomplish any good long term. They are an imbalance, created by the Government; while they have an effect the side effects are hardly ever considered before they are implemented.
That said, it is going to be interesting to see what happens as the $8,000 ($6,500 for repeat buyers) “Gimme” dissolves.
I predict the first few weeks of May will be some of the most quiet times the US housing market has ever seen!
To be sure there will be some unethical types that attempt to buy and “Back date” documents; but for the most part I think real estate agents might as well take a leave of absence, we shall see if I’m right.
Don’t get me wrong, I think the Country will emerge on the other side of the darkness within a few years (that’s if the current Administration is defanged in November). America and Americans are very resilient. Bargain hunters will again venture into the marketplace and the system will renew itself.
The rebound will not take the shape of a “V”, it will IMO look more like an elongated “U” with a slow climb off the bottom for a long period.
But if you really want a deal you will still have to move quickly, the best deals will be snapped up fast (it is always so after a crash).
Another thing to consider is the likely raise in interest rates. The Fed cannot continue to hold short term Treasury Certificates at “Near Zero” interest rates. Our insane spending levels (doubled & maybe even tripled by this Admin. in just over a year) will give birth to higher interest rate soon; the math that supports this is inescapable. So those that move at 5% will not only get the lowest of the prices they will get the most favorable mortgage rates.
Even knowing this will be the case (I have seen this before), it is still a scary time in real estate…
Like reading this post? Buy me a cup of coffee :)Tags: first time buyer tax credit, real estate, real estate investing, tax credit
04 Apr 10 Section 1031, from the “Book of Romans?” No from the IRS…
In these “Tough Times” maybe talking about how to avoid Capital Gains is a non-issue? But I am sure there are many out there, like my wife and myself, that have owned properties for quite a while. If you are a long time real estate owner odds are you have equity in the property from debt service reduction, original down-payment and of course my favorite, Appreciation!
Capital gains tax is bad now, and I believe if this Administration has it’s way it will get worse. However there is a tool available for the avoidance of capital gains tax, that device is called a 1031 exchange…
From the IRS website:
Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property
Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.
Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
The “Space” can’t make you an expert on 1031 exchanges in an hour, but it might stimulate you to learn more about the topic and that is a good thing!
The pursuit of knowledge is an admirable effort; coupled with the fact that you can save yourself “Tax Dollars” it is really wonderful…
The Wednesday’s Simon Sez Show might help? My Guest Host is Marilee Hill, a Washington DC area 1031 exchange expert.
Ms. Hill will be on the air with me this Wed. at 3 pm est… Listen to Simon Sez or call in with a question for Marilee, 1.866.825.1340
Marilee’s website is a wonderful collection of information about 1031’s as well…
Like reading this post? Buy me a cup of coffee :)Tags: 1031, IRS section 1031, like kind exchange, tax deferred exchange, tax exchange
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