Category Archives: Real Estate

Key Players in 1031 TIC Investments

Couple meeting a broker about property investmentProperty investment is a landmine, so due diligence is essential. One of the vital areas in property investing is the taxes involved in your transactions.

Though property investment taxes might be substantial, the IRS code 1031 allows you to defer your taxes and grow your wealth fast.

A tenancy in common (TIC) investment is one which allows you to co-own commercial property with other investors. 1031 TIC investments like the services offered by 1031 Exchange Place can be difficult to navigate when you don’t have much expertise in the matter. Here are some key players involved in these investments.

Qualified Intermediary

This expert drafts all legal documents required to structure your properties properly for a 1031 exchange transaction. They hold and preserve the settlements from your sale proceeds to keep you from getting constructive receipts on your assets and triggering an event which will be taxable. A qualified intermediary will also review your transactions for federal code and regulation compliance.

TIC Sponsor

The stringent financing and equity requirements of a large commercial real estate might prove a hindrance to small-scale TIC investors. TIC sponsors have interests in large properties and allow small investors to purchase small or fractional property interests. These interests are called TIC interests and are sold as like-kind replacements for 1031 exchange investors.

TIC Broker

A TIC broker mainly serves a supervisory role in your transactions. These professionals are licensed and will help you identify the best deals in the market for your 1031 TIC exchange investment. The broker will also help you scrutinize your PPM (private placement memorandum) that contains all the information related to your transaction.

With the above players involved in your 1031 TIC transaction, you can be sure that you won’t suffer any buyer’s remorse about your investment. When handled well, a 1031 TIC investment frees you from the daily hassles and headaches of property management and greater liquidity. It also saves you on regular closing costs and property appraisal fees.

Three Things You Should Never Do When Buying a House

Couple buying their first houseGetting your own house can be emotionally draining to most people. There are several things to consider, especially when you’re looking at hew homes in Hammond Park. Everything can be too overwhelming that some people tend to make badly-made decisions along the way.

To help guide you with the process, we’ve summed up a few of the most common mistakes that people do when buying a house.

Maxing Out Your Budget

There are several things that you need to consider when buying a house. You also have to consider fees such as taxes, insurance, utility bills, and even emergency bills.

Spending your monthly income on mortgage payments alone can be quite problematic in the long run, especially when you encounter unexpected house repairs along the way.

So, it’s better to use only a portion of your monthly salary to your mortgage, so you still have enough funds to pay for other things needed when owning a house.

Not Doing Proper Research

You need to know what you are getting yourself into, especially when it comes to your finances. So, it’s always advisable to do thorough research before you decide on getting a real estate property.

There’s also a chance that you might miss out on great deals, so it’s always better to read a few house listings so you can have a much broader option when it comes to houses.

Selecting the Wrong Kind of Mortgage

There are several types of mortgage plans that you can choose. To know which one would best fit your financial capacity, it’s best to have your loan pre-approved before looking for a house. You have to establish your budget so you’ll know how much you can afford.

Getting a house of your own can be a thrilling experience. However, it’s always important to know how much you can afford before you start your house hunting. Doing so will give you an idea of what houses will fit your budget and will also lessen any chances of disappointment at the same time.

4 New Home Purchase Mistakes to Avoid

Key with House KeychainFinally being able to buy a home that you can call yours is more exciting than stressful. After all, when all the legalities and decision-making is done, you will finally have a place to call your own. But, before the good times come rolling, you need to be able to face the reality of making the right decisions.

There are many new homes in Kansas City to choose from. The only question you have to answer is which one is right for you? Aside from knowing how to buy a home, it also pays to know the mistakes to avoid when buying one.

1. Not sticking to your budget

Unless you just won the lottery or was born to a really rich family, having a budget is a must-have when buying a new home. Having it is not enough, you should learn to stick to it for the whole process to go smoothly. Also, do not forget to set (and stick) to a realistic budget.

2. Not knowing your timeline

How long do you plan to stay in your home? These questions should be answered as honestly as possible, as it can help dictate the type of your home, as well as the amount you would spend (i.e. mortgages) on it.

3. Not seeking professional help

Invest in a real estate agent or in a broker. They might have initial upfront costs, but seeking professional help can lead you to the right path and reduce unnecessary costs along the way.

4. Lack of research

You might be fixated on your dream house, but additional research regarding the property’s location, surrounding community, and legalities, among others, can help make the whole process a lot easier. Not to mention, it can help you avoid foreseen hiccups along the way.

Keep these things in mind and avoid them at all costs. See how it can help make your purchase a smooth and fruitful one.

What to Ask Your Conveyancer

Couple Sold Their PropertyWhen buying or selling property in the UK, you should find the right professional services that could help make it a smooth transaction. The right conveyancer can help smoothen the process and help you complete the property deal.

But asking for conveyancing quotes and doing background checks are only the beginning. There are other methods to help you know more about your potential conveyancers. One of these is knowing the right questions to ask.

What are your credentials?

Ask your conveyancer if they have the legal credentials to practise in the UK. They should know the policies when it comes to buying or selling properties in England, Wales, and Scotland. Consider their years of experience, and if they have taken the Conveyancing Licensing Exams from the Council of Licensed Conveyancers.

How much do you charge?

Rates differ depending on the property’s value and tax regulations. Some conveyancers charge you legal fees for the solicitor and disbursements for documentation and other transactions. Some conveyancers also add additional fees for estate agent’s referrals, so you should know the kinds of expenses you need to pay for your property deal.

What do I need to prepare?

Ask your conveyancer the kinds of documents you need to prepare for your property deal. Often you can get a copy of these documents from the Land Registry. Your conveyancer should know the fees, the kinds of records, and the process for acquiring these papers.

Do you have time to manage a particular case?

If your property purchase requires special attention or advice, you should ask the conveyancer if they could manage the workload for your case. They should also have the technical experience to handle your situation.

Work with a conveyancer that understands the legalities surrounding your case, and with whom you can converse openly. Ask these questions to find one who can guide you in the right direction.

3 Ways to Speed Up Your Mortgage Approval Process

Approved Mortgage Loan AgreementMany mortgage borrowers leave the power of their loan approval to the lender. Granted, the lender plays a significant role in the process. But what many people fail to realize is that the role they should play will determine how fast their loans will be approved.
Here are some of the practical ways to speed up your mortgage approval process.

Be honest from the beginning

According to experts, the mortgage vetting process is a rigorous one. This means a standard procedure is followed in verifying the information you give. Lenders have also improved the way they search for the truth about the borrower. It is, therefore, important that you disclose all the information the lender needs, both good and bad.

Avoid the back and forth or holding your breath hoping that the lender won’t discover a past credit mistake. Past mistakes may come out sooner or later. So, make sure your lender has nothing left to unearth because when they do, it won’t go well with your application.

Work with experienced lenders

When looking for the right lender, don’t just look for the one offering the best mortgage rate in Utah or wherever you live. Instead, Altius Mortgage Group recommends looking for other qualities, such as experience and reliability. Dealing with an experienced lender will ensure that the mortgage approval process goes faster. This is because they have a good relationship with other industry players.

Prepare all the necessary documents

There is a lot of paperwork involved in a mortgage application process. Know which documents your lender needs and prepare them to avoid the back and forth that leads to time wastage. This will go a long way in speeding up the process.

The approval time varies because each loan application is unique. But there are things you can do as the borrower, which can help you gain approval quickly. Follow these tips and you can get the keys to your new home in no time.

Santos Knight Frank Expects More Office Space in Metro Manila for 2018

skyscrapers in the citySantos Knight Frank expects the business process outsourcing (BPO) industry to fuel most of the demand for new leasable office space in the Philippines for 2018.

Morgan McGilvray, Santos Knight Frank senior director for Occupier Services and Commercial Agency, said that property developers would add more than 1.5 million square meters of space this year. This would represent a 25% increase compared to over 1.2 million square meters in 2016.

Foreign Interest

Australia and the U.S. will continue to be the largest markets for the Philippines’ office property sector, although more Chinese BPO firms will likely set up a regional headquarters in the country, according to Santos Knight Frank chairman and CEO Rick Santos.

While the addition of new office space will drive up vacancy rates, Santos believes that the number of pre-leasing deals will offset the projected increase. Based on a Colliers International Philippines report, the growing popularity of flexible office spaces could also help in maintaining steady occupancy in properties.

Real Estate Trends

Colliers’ Top 10 Predictions For 2018 report showed that the volume of flexible offices space in the Philippines would increase in the medium term. This trend will stem from shifting market demand among different tenants. Other trends for this year include more townships outside Metro Manila, as developers scout for new opportunities in Cavite and other nearby provinces.

This will occur partly because of the popularity of mixed-use developments such as Lancaster New City properties. A review website will help you compare prices if you intend to buy a house or market a new development in the near future.

Conclusion

The influx of investors in the Philippines’ commercial and residential property market, along with developers’ expansion plans, will likely keep real estate agents busy this year. How do you plan to market new projects in the coming months?

Significant Changes in Crawler Crane Technology

excavator machine at an excavation areaCrawler cranes have seen many adjustments and remodeling to become the powerful lifting units we know today. From its 100-ton lifting capacity in 1947, it can now hoist more than 3000 tons of load.

While crawler cranes have become one of the most important machines in the construction sector, their operating and owning overheads can be quite costly. Still, they are the preferred choice especially for jobs that require lifting certain types of loads. Lampson, a trusted crawler crane company in Houston, shares a brief history of this reliable machine.

Early Design

In 1911, the Bucyrus Company designed and manufactured the first crawler crane. A gasoline engine powered the machine, which was known as the Type 14. It features a 4.27-meter diameter swing ring and an 18.3-meter lattice boom.

The standard 47-ton crawler crane has then improved significantly in the coming years, transitioning from electric and steam engines to diesel and gasoline. The timber beams have also been replaced by extended steel lattice booms that can outspread up to hundreds of meters, with a lifting capacity reaching up to 3,600 tons.

Changes in Ergonomics

The most significant change to the first deign of crawler cranes is ergonomics. To operate a unit in the early 1920s, you would have to be a steam or mechanical engineer. The job was physically taxing, requiring more than 10 hours every day, without proper protection, and under harsh weather conditions.

The first concept of gasoline-powered, heavy-duty lifting cranes mounted on a tracked movable platform was introduced in 1914. Several years later, the initial excavator with diesel engine debuted. In the late 1960s, Jim Montgomery and Archer Brown invented the counterweight, a feature that is still used in modern crawler cranes.

Thanks to the adjustments made since crawler cranes first came out, the construction industry can benefit immensely from the incredible power of these machines. They have come a long way since the 1910s, and engineers continue to look for ways to improve the system.

Guide to Starting a Group Home

a construction of a houseA group home is a facility where people who are unrelated to one another live in a cooperative-type environment. This gives the residents access to amenities and resources; therefore, allowing for semi-independence. Its nature is different from a nursing home due to the absence of aides and full-time staff.

But because it is a substitute for nursing homes and other facilities that provide care, a group home is subject to the same rules and regulations that cover nursing homes. Starting a group home is not different from starting any other business.

Alternative Home For Independent Elderly Citizens

Group homes for the elderly are grouped according to the level of service and medical care provided. They are licensed and regulated by the state Department of Health and Human Service. A group home also has to be registered as a business entity even if it is a non-profit organization.

Whether it is a corporation or a limited liability company, it will have to keep records of its expenses and have its own financial recording system. This is best done with the help of an accountant. As a taxpaying entity, it has to apply for a tax identification number.

Type of Group Home

There are several types of group homes, including adult group homes, foster care, as well as group homes for handicapped, troubled teens, youth, veterans, autism, Asperger’s, and others. Traditional homes do not cater to these groups. Group homes cater to more than just senior citizens or those with special needs. Typically, the residents of group homes are capable of working or helping themselves.

A group home is not a business for the fainthearted. It is a non-profit endeavor meant to help those who are in need. Even though the residents have an independent lifestyle, the group home needs highly trained staff to perform the tasks efficiently.

Is a Condo Unit in the Philippines a Worthy Investment?

Man and woman applying for a condo unit for investmentFor employees who have a job in the Metro, buying a condo unit will make their work life easier, particularly if it takes them hours just to go home. Many foreigners and Filipinos working abroad see the prospect of the city’s growing economy as a great investment opportunity.

It’s not a surprise that there are plenty of listings on South Property Sale and other property listing sites to address this demand. Yet, like any other investments, you have to determine its benefits and drawbacks to avoid any regrets in the future.

Benefits

Buying a condo will be ideal for people who know that they will be working in the city for a long time. They can even choose a two bedroom unit and rent out the other room as an extra source of income.

Condominiums typically have a great market value. If you’re planning to buy a unit and rent it out, then this will serve as an investment break for you. Do keep in mind that choosing the right location will make or break your investment.

Drawbacks

Be aware of the Home Owner’s Association fees (HOA) and other related expenses. When buying a condo, keep in mind that you will be responsible for paying for the maintenance, HOA and condo fees. While this will add more to your monthly expenditures, some of these are actually for your insurance and security.

While you can buy a unit and have someone else rent it, remember that not every property permits their tenants to rent out their place. Before making any decision, ensure that you do your research.

It is no doubt buying a condo in the Philippines is a good financial decision, considering the fact that you can use it as a source of income. Success depends on how well you choose the unit and the location.

Three Things About Reverse Mortgage Programs You Might Not Know

A conceptual look at variable mortgage rates.About 49 million US residents turned 65 years and older in 2016, which is about 15% of the total population. Many of these people are baby boomers, about 80% of whom own their own homes. Unfortunately, they do not have much else.

Many retirees struggle to make ends meet on their monthly pensions because of high healthcare costs. Those who own their own homes turn to reverse mortgages to add to their income. It is the perfect fit for some homeowners over 62, but not for all. Here are three things you may not know about a reverse mortgage program, according to Primary Residential Mortgage, Inc.

Age matters

Any homeowner over 62 can qualify for a reverse mortgage. However, what you might not know is that the older you are, the more cash you can get. This is because reverse mortgage calculations include the probable term of the loan. This makes sense because the loan matures when the borrower dies or sells the property, whichever comes first.

Interesting options

Not all reverse mortgage lenders are alike. The interest rate you get for a reverse mortgage program will depend on the lender. Reputable lenders follow strict regulations that protect reverse mortgage borrowers. When choosing a lender, find one with a good reputation in the market. Ask friends, family, and your financial adviser for recommendations.

Net proceeds

The money you receive from the lender will not be the amount of the loan. This is because you have to pay for fees and costs. The first thing that will take a chunk out of the money is any balance left on your mortgage. Even if you have fully paid the mortgage, you still have to pay for mortgage insurance, application fees, lender fees, and closing costs. Your lender is obligated to explain all these costs to you before you commit to an agreement. If this does not happen, find another lender.

A reverse mortgage program is a good way to add to a retiree’s monthly income. However, it is not without costs. You’ll be all right as long as you know everything you need to know about reverse mortgages from your lender. To be on the safe side, find a lender with a good reputation for taking care of their clients.