Considering real estate investments?

With mortgage interest rates at historic lows, opportunities for real estate investment couldn't be better. Money market rates of return are counted in the single digit "basis points" and are lamentable for seniors and pensioners. Considering an investment for cash in real estate as an alternative to annuities and savings accounts? It may match your investment needs.

By the way, a client of mine has just initiated a Reverse Starker like-kind tax deferred exchange, an IRS approved real estate investment tool. 

If you'd like to explore the world of real estate investing, please give a call at 301-980-4085. My office number is 301-986-1001, ext. 7319

The nuts and bolts:

The tax deferred exchange, sometimes referred to as the Starker exchange or the 1031 like-kind exchange has two aspects, both approved and both part of the IRS tax code: Forward and Reverse.

The Forward envisions the sale of an investment property (not primary residence and used for investment) and the purchase of another investment property (like kind...that is to say, the same style or function as the sold property), and the orderly and timely exchange, title for title within the appropriate time period. It's a tight window of opportunity, made shorter after the initial "Starker" exchange which created this opportunity, many years ago.

An example might be the sale of a rental condo or townhouse in town and the repurchase of a rental condo at the beach, where a student condo (purchased for a student during college and grad school whose price appreciated enough to warrant some concern for taxable liability, or a first time condo purchase after college where the owners moved out to a larger residence and rented the apartment many years ago.

The Reverse envisions the purchase of the property to exchange to and the sale at some date 180 days from settlement of the property to be traded from. In either case, the properties have to be identified within 45 days of the purchase settlement, there has to be a qualified "intermediary" or "facilitator" (often a knowledgeable title attorney) and a paper trail to document the intention and follow through for the IRS.

In the course of my 27 years of real estate, I have worked through both of these exchanges. I am not an expert nor am I a qualified intermediary nor a facilitator. I do know about the value and mechanics of these exchanges enough to make recommendations to appropriate specialists, several of each category. 

Call me if you would like further information. Cell: 301-980-4085. Office: 301-986-1001, ext. 7319

Rainy Days Good For Real Estate Visits

Rainy Days are always good times to look at real estate for two reasons. #1, you get a water view for no extra cost, #2, the real reason is that you can see if the property leaks!

"Your Market Minute" - a new video by Tim

I have just redone my website: timohealy.com.  Take a look!  I've got two very successful slideshows of my last two properties, one on the front Property page and the other Pending because it's...pending.

If you like this video, "like" my Business Facebook Page for Tim O. Healy Real Estate.

Knowledge is Power

As I said to my clients just yesterday, "My job is to make sure you understand the ins and outs of real estate as it directly applies to your specific investment.  I'd like to give you a brief overview of Real Estate 101, Tim O Healy-style.  You will be able to talk intelligently about your investment at any cocktail party or Thanksgiving get-together.  You will also know how to detect when others are making statements that are false or misunderstood.  A little research and a little education in making an investment is never a bad thing.  Knowledge is Power."

Tim O Healy, a former teacher with storytelling skills, has successfully engaged clients for the last 24 years, with hundreds of millions of dollars in real estate sales.

real estate value

Cutting to the chase

Prologue:
My mother loved the flying red horse, emblazoned on the wall next to the Mobil Gas Station, at the corner of 8th and Main Street in our little town. As she would recount her dreams to us each morning at breakfast, she reported that she would find herself on this mighty steed, visiting distant locations and returning, amazingly, just before she awoke. Sometimes she would go back to her home in Burlington VT, sometimes, the upper east side of New York City…sometimes, she would visit the Spanish steps of Rome.
The set up:
We real estate agents sometimes encounter sellers who can’t bring themselves to sell their homes, really. They list them for sale, often at a too high price or for unrealistic terms…they have a tremendous emotional attachment. Sometimes, their spouses want/need to sell, one owner adamant and the other reluctant but seemingly interested in selling. On one such occasion, I had some good friends who wanted/needed to sell out. One of the Sellers got stuck, though. Though I had no idea about this fact, there had been a child who had died in the home that was on the market now, for four months, at a too-high price. The Seller must have felt that a lower price would represent abandoning this child if it actually sold out. The seller was hanging on for dear life!

I was re-thinking my role in this sale…it had been going on forever! "Listings for life" are not a good tool for success for anyone, neither agents nor clients.

insulation observation

Picture 1 is an example of a potential heat loss on a Dutch colonial.  Picture 2 looks like a heat loss from the ridge line at the top of the house.  Picture 3 seems to be a heat loss near the chimney.

a new video series--real estate

These video clips are meant to provide my clients with "real" information about the real estate market. There will be onsite observations of ways to make your home more "green" and energy efficient, updated costs of mortgage money and refinancing, helpful referrals of service providers, putting a face to the name. Enjoy the show!