Real Estate

1 in 4 Properties Are ‘Equity Rich’

NAR Daily News Magazine - November 15, 2019 - 1:00am

The Northeast and West have the highest levels of properties with loans at 50% or less of their market value.

Categories: Real Estate

Customers’ Favorite Mortgage Lenders Ranked

NAR Daily News Magazine - November 15, 2019 - 1:00am

J.D. Power released its latest results that show which mortgage lenders score highest in customer satisfaction.

Categories: Real Estate

Study Confirms the ‘Amazon Effect’ on Housing Is Real

NAR Daily News Magazine - November 15, 2019 - 1:00am

Massive inventory shortages, sky-high price spikes, and a blistering pace of sales is now the norm surrounding Amazon’s second headquarters,® reports.

Categories: Real Estate

With FHA’s Capital Surge, NAR Calls for Reduced Premiums

NAR Daily News Magazine - November 15, 2019 - 1:00am

As the Financial Housing Authority’s financial position improves, NAR urges the agency to consider reducing premiums and eliminating its life-of-loan policy.

Categories: Real Estate

Mortgage Rates Rise Again as Recession Fears Recede

NAR Daily News Magazine - November 15, 2019 - 1:00am

The 30-year fixed-rate mortgage averaged 3.75% this week, Freddie Mac reports.

Categories: Real Estate

Beginner’s Guide: Purchasing a Rental Property With a Self-Directed IRA

RisMedia Buying 101 - November 14, 2019 - 4:58pm

First and foremost, what is a self-directed IRA? A self-directed IRA is an individual retirement account that gives you complete control over your investment choices. Unlike other IRAs, you’re not limited to stocks, bonds or mutual funds. This means you can take advantage of investing in alternative assets—such as real estate, limited partnerships and gold—with your self-directed retirement account. If you already have a Traditional or Roth IRA, you can transfer or rollover the funds to a self-directed plan with no penalties. You do not need to sell any of the assets that you currently own.

Additionally, if you have an IRA or funds in a dormant 401(k) account, you can easily transfer the funds to a self-directed account and begin expanding your investment options. Individual retirement accounts offer tax advantages that can help make your retirement dreams a reality. Let’s look at the top benefits of a self-directed IRA:

Increase the Potential for Growth
Opening a self-directed retirement account gives you the freedom to invest in almost any type of asset—meaning you have more flexibility in the amount of risk you take on and more potential for a higher rate of return.

Take Control of Your Own Financial Future
Put your knowledge and expertise of a particular industry or niche to good use. Make investment decisions based on what you know and understand to grow your retirement savings.

Protect Your Wealth Against Economic Fluctuations
The ability to diversify your portfolio by investing in alternative assets such as real estate and precious metals can act as a hedge against market fluctuations and volatility.

Grow Your Savings in a Tax-Advantaged Account
Investing over time in a self-directed IRA that allows for tax-deferred or tax-free growth can significantly affect future wealth positively.

A Real Estate Success Story
Investing in alternative assets like real estate with your self-directed IRA isn’t too different from a regular real estate purchase. However, there are important rules and processes that you must follow to do it right. Self-directed IRAs that focus heavily on real estate investments are often referred to as “Real Estate IRAs.” With a Real Estate IRA, your retirement funds can invest in all kinds of real estate and real estate-related assets.

To help our readers understand the Real Estate IRA purchase process, let’s take a look at an exclusive case study about an Entrust client, Maria. She is interested in using her retirement funds in her self-directed IRA to purchase real estate. Maria has $250,000 in a Traditional IRA at a bank. For some time, her real estate agent, Bob Realtor, has been telling her about the benefits of owning real estate in a self-directed IRA. She is interested, but is not familiar with the investment process. The bank that is her IRA custodian does not allow real estate investments in an IRA.

Getting Started
Bob Realtor puts Maria in contact with a trained professional in an Entrust office. The Entrust representative walks Maria through the process step-by-step:

  • Maria starts by reading materials in The Entrust Group’s online Learning Center. These explain the IRS rules she must follow. She reads about prohibited transactions and how to do due diligence on a potential transaction.
  • Maria opens a self-directed Traditional IRA at Entrust. She fills out an application and fee schedule and sends both to her representative; completes a transfer form to move her IRA balance from the bank, her current custodian, to Entrust and provides an account statement from the bank; and Entrust opens the account and initiates the transfer from her previous custodian.
  • While the funds arrive at Entrust, Maria and Bob Realtor look at a number of properties that would qualify as IRA investments. One of them is for sale at $179,500, which fits her budget.

Maria Is Ready to Invest
The money has arrived at Entrust and Maria has selected a property. There are several ways Maria can fund the purchase: direct purchase, partnering, leveraging, or through a limited liability partnership. Maria chooses to make an all-cash offer (direct purchase) contingent on inspections and clearances.

The offer is made in the name of her IRA and is titled in the name of the IRA. In Maria’s case, the purchase agreement reads: The Entrust Group, Inc. For Benefit of Maria IRA #12345.

The offer is accepted and Bob Realtor chooses a title company to open escrow.

Maria completes an Entrust Buy Direction Letter, instructing Entrust to wire $10,000 to the title company as an earnest money deposit, and an additional $500 for the inspection and other expenses. The purchase contract is included with the Buy Direction Letter.

Maria reads and approves all documents that Bob Realtor and the title company send to her to makes sure everything is correct. Only then will Entrust sign the documents on behalf of her IRA. Maria does not sign the documents because Entrust is the signatory on all documents on behalf of her self-directed Traditional IRA.

Closing Escrow
The property has passed all the inspections to Maria’s satisfaction and she is ready to conclude the purchase. Once Entrust receives all the required documentation for the purchase, Entrust wires $169,500 from her account to escrow in accordance with the closing statement, which includes all closing costs.

Maria’s IRA now owns the property. The deed reads “The Entrust Group, Inc. FBO Maria IRA #12345.”

Rental Income, Expenses and the Road Ahead
After interviewing potential tenants, Maria selects one, and they come to terms on a rental agreement. The rental agreement is signed by Entrust for the benefit of Maria’s IRA. In the future, all rental payments are made payable to “The Entrust Group Inc., FBO Maria IRA #12345.”

Maria watches her Real Estate IRA grow as the rent checks keep coming in. The best part is the taxes on the earnings are deferred. Eventually, Maria has enough profit to purchase a second property with her IRA! She’s always on the lookout for new deals that can help her save for a comfortable retirement.

Self-directed IRAs can be an extremely rewarding way to earn healthy returns by investing in one-of-a-kind projects that truly matter to the investor. Retirement is all about pursuing lifelong passions and turning dreams into reality. Making the right investment in unique people, deals and companies can be a very rewarding part of that process. Retirement really can be a dream come true when investors listen to what the heart truly wants, and support the people and causes that they truly care about using a self-directed IRA.

We can help you learn more about self-directed IRAs and real estate purchases. Feel free to visit our website for more information.

The post Beginner’s Guide: Purchasing a Rental Property With a Self-Directed IRA appeared first on RISMedia.

Categories: Real Estate

iBuyer Bumps Up Price Threshold to $800K

NAR Daily News Magazine - November 14, 2019 - 1:00am

Opendoor announced its increased offer amount on qualified properties in its newest market.

Categories: Real Estate

How Marijuana Laws Are Challenging for Your Business

NAR Daily News Magazine - November 14, 2019 - 1:00am

Be careful with cannabis-related property dealings, cautioned industry and legal experts at a recent forum during the REALTORS® Conference & Expo in San Francisco.

Categories: Real Estate

Bidding Wars Hit a 10-Year Low

NAR Daily News Magazine - November 14, 2019 - 1:00am

However, economists point to low mortgage rates and a shortage of homes for sale that will likely bring bidding wars back next year.

Categories: Real Estate

The House Hunt Won’t Be Easy, Prospective Buyers Say

NAR Daily News Magazine - November 14, 2019 - 1:00am

Home shoppers are being realistic about housing shortages during their search.

Categories: Real Estate

Cost Burdens Drop for Owners, Remain High for Renters

NAR Daily News Magazine - November 14, 2019 - 1:00am

Fewer Americans are feeling the pinch of mortgage costs—but there’s a catch, new census data shows.

Categories: Real Estate

Considering a Video Doorbell? Read This First!

RisMedia Consumer News - November 13, 2019 - 3:46pm

Smart home lovers likely rejoice at the continued flood of smart house accessories on the market, one of which are video security doorbells.

According to the experts at Alarm New England, installing a doorbell camera can help secure your home and eliminate risks associated with opening the door for strangers, and law enforcement agencies across the nation are generally in support of the devices as a tool for reducing crime.

The site offers these additional points to review before you buy:

Most doorbell cameras max out at 1080p resolution, and the higher the resolution, the sharper the image, generally speaking.

Night Vision
Night vision capabilities will allow you to clearly see who is at your door even when it’s dark out, giving you security 24/7.

Field of View
If the video doorbell you are considering says it offers 180 degrees, it means the camera can see everything in front of it, and to the sides, while 90 degrees means it can only see to the front, and a tiny bit to the sides. A wider field of view is preferred for nearly all scenarios.

Audio Features
One of the biggest benefits of doorbell cameras is being able to communicate through it to speak with whoever is at the door.

Motion Detection
Look for advanced features such as monitoring specific zones while ignoring others—perfect for houses near a busy street to avoid getting motion alerts every time someone walks or drives by.

Cloud Storage
For security purposes, having a cloud storage option can be helpful. In the event of someone vandalizing or stealing from your property, you’ll have some video evidence ready.

App Support
Be sure the video doorbell you’re buying has excellent app support so you can actually connect to it fast to see who is at your door.

Many web sources remind homeowners that since all video doorbells require a Wi-Fi network, many manufacturers advise placing the device as close as possible to an internet router. If the internet router is located far from a video doorbell, homeowners may want to consider adding a modestly priced internet signal booster plugged into an outlet adjacent to the newly equipped video doorbell to enhance signal quality and speed.

John Voket is a contributing editor to RISMedia.

The post Considering a Video Doorbell? Read This First! appeared first on RISMedia.

Categories: Real Estate

Which Home Security Systems Make Owners Feel Safer?

NAR Daily News Magazine - November 13, 2019 - 1:00am

Crime rates may be at their lowest since the early 1990s, but consumers are still showing a big interest in high-tech home security.

Categories: Real Estate

More than 140 Appliances Stolen From New Homes in Florida

NAR Daily News Magazine - November 13, 2019 - 1:00am

Police have been investigating a string of appliance thefts dating back to January 2018.

Categories: Real Estate

Mortgage Meltdown Unlikely Despite Hike in Risky Loans

NAR Daily News Magazine - November 13, 2019 - 1:00am

Housing analysts are hoping it’s not a case of déjà vu. Here's why they say another recession is unlikely.

Categories: Real Estate

In This Metro, Homeowners Stand to ‘Strike It Rich’ at Resale

NAR Daily News Magazine - November 13, 2019 - 1:00am

A new study calculates homeowners’ internal rate of return to find the city that truly offers the best returns to owners at resale.

Categories: Real Estate

Rental Firm Agrees to Pay $1M for Denying Ex-Cons Leases

NAR Daily News Magazine - November 13, 2019 - 1:00am

“This settlement fires a warning shot across the bow of any landlord in America who blanketly refuses to rent apartments to people with criminal justice involvement,” an advocacy group says.

Categories: Real Estate

New Survey Reveals Holiday Travel Planning Trends

RisMedia Consumer News - November 12, 2019 - 4:03pm

(TNS)—One of the busiest travel seasons of the year is right around the corner. As the holiday season approaches, new research from the Travel Channel reveals insight into the travel plans and preferences of Americans—most importantly, how many of them are planning to take an end-of-year vacation.

Clearly, U.S. travelers have been saving vacation days. The Travel Channel survey found that 67 percent of Americans plan to use vacation days and/or paid time off to hit the road this holiday season. Nearly a quarter of these travelers (24 percent) are planning to travel for longer than six days.

Forty-two percent of respondents said that they are traveling to their hometowns to visit family and friends, while 48 percent indicated that they are traveling elsewhere.

Get ready for busy roadways during Thanksgiving and winter breaks. The vast majority of travelers (72 percent) said that they will drive to their destinations. Forty-four percent are planning to travel by air.

The holidays don’t come cheap. The Travel Channel research showed that nearly one-third (28 percent) are planning to spend in excess of $500 on the trip.

Many (27 percent) are traveling with family while one in 10 travelers are traveling to a vacation destination with a significant other or friends.

Mariel Clark, vice president of Digital Video and Editorial for the Travel Channel, provided a number of tips.

For families traveling in groups, she advises keeping options open:

“When traveling with a large group or multiple generations, not everyone will be interested in the same activities. Be sure to allow for some time to divide and conquer, giving everyone the space for their must-see activities,” she said.

Involving older kids in travel plans is also a smart move, noted Clark.

“If traveling with a teenager, make them a stakeholder in the trip by having them pick activities they’ll enjoy, too,” she said.

Streamlining your gear is a good way to make traveling with small children a breeze.

“If traveling with a young child, downsize your bulky stroller for a simple umbrella stroller to travel—it’s easier to carry, tote and pack,” said Clark.

“Pack by outfits, especially for younger kids,” she added. “Try coordinating pants, shirts, underwear and socks in a stack together with PJs. Repeat for the number of days in the trip and add extras like jackets, as needed.”

©2019 Travelpulse
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The post New Survey Reveals Holiday Travel Planning Trends appeared first on RISMedia.

Categories: Real Estate

NAR Policy Changes Beyond MLS Cooperation

NAR Daily News Magazine - November 12, 2019 - 1:00am

The Board of Directors, at its meeting Monday, took many more actions that affect your membership and business.

From the REALTORS® Conference & Expo, Nov. 8-11, San Francisco

Categories: Real Estate

Instagram Is Testing Out Hiding ‘Likes’ on Posts

NAR Daily News Magazine - November 12, 2019 - 1:00am

The move is an effort to “depressurize” social media. But not everyone likes the idea.

Categories: Real Estate

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