Important Things to Remember About Real Estate Licensing

If you have been involved in real estate for any period of time, then you’ve likely taken a look at everything that you need to do in order to keep up your certification or license. Here are some things you want to remember about real estate licensing.

Getting your license is not easy work. There are a lot of things that you have to do in order to get your license in the first place. For example, if you’re looking at California real estate license requirements, you have to take a number of hours of classes in order to make sure that your certification is valid. In every state, you have to take an exam of some sort to get certified, and you have to learn the ins and outs of that state. The good news it, it makes getting your NYS real estate license renewal easier later on.

Don’t forget to renew your license. Many times, you need to renew your license once every couple of years in order to make certain that you are legally doing the work that you do. For example, the NYS real estate license renewal is every other year. The state that you currently work or reside in may require something different from you; make sure that you check with your state government to learn about how often you’re going to need to renew your license.

Make sure that you pay any and all fees necessary. Whether you’re meeting California real estate license requirements or you are getting a NYS real estate license renewal, you will want to make sure that you are paying the fees that you need to pay. Some states cost more than others, so know what you’re getting into before you go to renew your license or to get your license in the first place. That way, you don’t hurt your credit standing and you can continue working.

Always keep learning. If you think that you’re going to eventually get your NYS real estate license renewal, then you want to keep up with modern laws and classes. Your renewal usually involves some sort of class, so keep up with what is going on with the industry and it will end up being a lot easier for you to continue whatever it is that you’re trying to accomplish when it comes to your career.

As you can see, there are a lot of things that you need to remember and keep in mind as you move forward with your career. Are you looking to expand where your licensures are, or to get more information about what is available for you? Do you need to learn more about California real estate license requirements or NYS real estate license renewal? Then you will want to check out what Real Estate U has to offer you – there are lots of options available for you to learn more about the fields that you care about.

For gathering more info about the NYS real estate license renewal process and also about the California real estate license requirements, please check out these links.

Carena Micro Apple Valley Ruin
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Newt Bass and his partner Bud Westlund were the founding fathers of Apple Valley, having purchased 6,300 acres of high desert land during the early 1940′s with the original intention of developing a cattle ranch. Instead they turned it into a real estate development known as Apple Valley Ranchos, a huge success that made both Newt and Bud millions.

Appropriately named “Hilltop House,” Newt’s home offered panoramic vistas in virtually every direction with views stretching into hundreds of miles taking in not only Apple Valley itself but the Mojave Desert, Antelope Valley and the San Bernardino Mountains beyond. “A view so vast,” wrote Pictorial California in 1960, “that outer-space high is the feeling when standing within.”

Although relatively unknown in the United States, Francisco Artigas was a very prominent figure in Mexican architecture with many notable designs throughout his country including his work in Mexico City’s upscale neighborhood of Jardines de Pedregal de San Angel. The young Artigas designed a sleek and stunning hilltop house that not only fit into its rugged setting it actually incorporated parts of it into the house itself with a boulder outcropping a prominent feature in the home’s combination living/dining room.

Another spectacular feature was the indoor-outdoor swimming pool Artigas incorporated into the design. “To coax indoors the sunshine by day and the stars by night,” wrote Pictorial California, ” electric push buttons open sliding panels above the pool to become three skylights. At night what a sight it must be – for Apple Valley and the Mojave have the most brilliant of stars.”
Paradise Leased

Carena Micro Compact viewfinder camera on cross-processed Agfa Precisa 100 slide film.


2011 San Diego California Real Estate Market

The holiday bells are beginning to quiet down and the new year has arrived. Looking through the San Diego real estate headlines I’m seeing a rehash of some of the past headlines.

Do these sound familiar to you:
* Act now, or you may be paying thousands more in a few months.
* What a great time to buy with low interest rates and a good supply of homes for sale,
* Solid signs of a firming market,
* With interest rates near all-time lows, buying now is a no-brainer,
* Get in now, before the huge pent-up demand for homes hits,

We have heard these same phrases since 2005. The major difference was that in 2005 and 2006 many of the Gurus were adding phrases:
* It’s only a normal pull-back,
* It’s known as a ‘pause to refresh’,
* This is a once in a lifetime buying opportunity before the market resumes it’s double digit yearly appreciation.

Amazingly in San Diego, California, is the local media talking-heads still go back to the same industry spokespeople to get their 60 second optimistic new year outlook for the 6:00PM news.

Naturally, I’d like to join this optimistic, self-promoting crowd, but sorry, I have to tell it like I see it.

After the $ 8,000, Federal and California home buyer credits expired, the local San Diego real estate market entered into a double-dip continued erosion of home values.

After the homebuyer credits concluded, San Diego home values saw modest price appreciation. Now even this modest appreciation has disappeared. Even more troubling is that the resale home sales volume has been dropping at double digit rates for the last few months. Just from April to May the western states sales dropped a reported 20.9%. Huge double-digit declines in home sales are a major red flag that cannot be ignored.

When will the government learn that you cannot artificially create lasting demand? (Statistics show the vast majority of government housing programs, costing billions, are outright failures and have only prolonged our malaise.) I believe the best thing the government can do is to stay out of the housing market and let the open market clean up the mess.

Think about this: Bernanke initially spent almost $ 2 trillion to drive long-term interest rates down.

The $ 600 billion QE2 has no effect to date. Actually, interest rates have moved up substantially. There are a few months left, but I am sure Bernanke will use the “it would have been much worse” argument and declare success. The reality is that there will be no QE3, not with Ron Paul now as the watchdog of the Fed.

Our aging population, combined with a decreased standard of living can’t equate to housing starts comparable to prior generations. I think our government’s relentless destruction of the middle class is making this different from prior real estate cycles.

Foreclosure moratoriums are beginning to expire. I believe the banks will push to clean up their portfolios through increased foreclosures.

Except for cash buyers, home pricing is derived from the affordability of the monthly payment. Should interest rates and taxes go up (a good bet), the purchase price will have to come down to establish a market.

Construction labor is already about as cheap as you can get it and inflation for materials is already present. This spells very bad news for homebuilders.

As far as pent-up buyer demand goes, the gurus again have it backwards. It’s not buyer pent-up demand, but seller pent-up demand to unload their homes.

The depth and longevity of this San Diego housing value depression has been imbedded into the consciousness of the usual first wave of home buyers in their late 20’s and early 30’s. The high cost of living in San Diego has been further stressed with continued multiple raises in utilities, increased state taxes/fees, higher education costs and $ 3.00+ per gallon gas prices. This all equates to over-priced homes in the current world of qualifying for a home mortgage.

I just believe there are major problems with our economy at play that we have never seen before and that will have a deciding call on what happens with housing. I see demand based on finance rather than population at this point.

During the mid 2000’s, almost the entire mortgage universe had been refinanced. This included many baby boomers that were in the last half of the 30-year mortgage they took out when they purchased their home. Some of this was hopefully to pay down other expenses and not to maintain their fantasy of the luxury lifestyle. The refinancing bubble that resulted from the irresponsible actions of Greenspan reset the 30-year mortgage clock. All borrowers looked at, was how the refinance lowered their house payment by $ X per month, without giving a second thought to the fact that they have also extended the term to a new 30-year loan.

Another round of refinancing occurred when Bernanke pushed rates down to the 4% range. The only borrowers left who have not refinanced are those with no equity and/or are facing foreclosure.

In either case, now many Boomers who are reaching the traditional retirement age, find themselves strapped with 20+ years left on their refinanced mortgages. Instead of preparing for the mortgage burning party that their parents had when that generation retired, they are wondering how they can make house payments on a lower income during retirement.
Since this is the first year of the boomers reaching 65, it is going to be a negative drag on housing for years to come.

For the San Diego and California real estate market we have to contend with our own Cap & Tax laws going into effect in 2011 that will increase utility costs by 20% over the next five and speeding up the loss of manufacturing jobs. We also have a new, old governor who was against proposition 13 which sets a maximum cap on property taxes and will likely propose new massive state taxes to deal with a $ 25.4 billion budget deficit.

So as the tune of Auld Lang Syne fades away, let me wrap this up with my opinion that there won’t be any strong base building in San Diego real estate until 2012. I could be wrong and there will be a tremendous growth in appreciation starting this month or in the coming Spring, but based on my 2005 article where I predicted this lousy housing bust, I wouldn’t exactly bet against me.

 Subscribe for free to Bob’s tell-it-like-it-is San Diego real estate blog San Diego California real estate market blog Bob’s other sites are: Downtown San Diego condosSan Diego real estate agentsSan Diego California real estate agent

Los Angeles Sunset
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January sunset on El Porto Beach, in Los Angeles, California. A reminder of why we pay outrageous real estate prices. View On Black


San Diego Real Estate Attorneys – Finding the Attorney Who Wants Your Business to Grow

If you live in San Diego or in Southern California and you are involved in real estate or are considering becoming involved in real estate, then you need to seek out good business attorneys. You need to find the San Diego real estate attorney who understands your business and your vision. Any real estate attorney will claim to have your interest in mind, but only the best attorneys in San Diego can help you to succeed. When searching for a real estate attorney in San Diego, it’s best to keep in mind the type of work involved in your business plans. In some cases, you very well may need to consult a construction attorney if your plans involve building or modifications to existing structures.

A good way to start searching for business attorneys is to go online. You’ll most likely notice that there is one San Diego real estate attorney listed after another. Don’t get overwhelmed. The real estate attorney you need to consult is the one who lists your needs up front. The great thing about being in real estate in San Diego is that there are a great number of real estate attorneys. The Southern California real estate attorney who you will want to single out is the one who specifically lists your business needs. Always keep in mind that any construction at all will most likely require a construction attorney.

Many business attorneys will offer free consultations. This is certainly a great help, but remember that the San Diego real estate attorney who will pay off is the real estate attorney who does what’s right for your business. Because there are so many talented attorneys in San Diego, this may take some time and some research. In the end, the Southern California real estate attorney you want to choose is the attorney with whom you can imagine yourself working. Since construction and building is highly regulated, you want to ensure that a potential construction attorney is keeping all of your building needs in mind.

Business attorneys will tell you a lot of different things to earn your business. The San Diego real estate attorney who will work best for you is the real estate attorney who shares your attention to detail and who cares about your local San Diego business. Your Southern California real estate attorney will want to see you succeed. Remember that if you are considering a construction attorney, you will want to find the one who will want to see you grow.

Take a moment to browse www.rameystairs.com for information regarding the best business attorneys and/or construction attorneys available to you. If you are seeking San Diego real estate attorneys and Southern California real estate attorneys in general, the above mentioned Website will likely be everything you are looking for. Contact the experts today at RameyStairs.com.

Cantabria | Sherwood Real Estate
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See how Turnstone Capital is helping investors generate cash flow and equity growth through value-add real estate investments in Los Angeles County.
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California Real Estate

The California Real Estate market is one of the fastest paced and vibrant in the world. Nowhere else is property traded so fiercely and competitively and at such high stakes as in this state.

A recent report on the number of house sales in California, which was released in December of 2007, showed that more than 25,000 condo units and houses-both brand new and resale-changed hands in that month. As impressive as that figure is, it was in fact virtually unchanged from the house sales figure in November, and is actually down more than 40% from November of 2006, when house sales registered at 43,400. Records show that there has been a steady decline in house sales over the past 27 months, and that December’s sales were the lowest for that particular month ever since records were first kept in 1988.

Median prices for houses also went down almost 3%-or to just over $ 400,000 in December-from about $ 412,000 in November. This price represents an almost 15% decline from December of 2006, when the median price of houses was about $ 472,000. The peak in median house prices was reached in the period of March to May last year, when the price of houses averaged around $ 484,000.

This drop in median house prices can be explained mostly by the slow sales of high priced properties, which in itself is the direct result of instability in the credit industry. 17,500 homes purchased in California in December 2007 were bought with conforming loans amounting to $ 417,000, which is a huge decline of almost 30% from December of 2006, when the number of houses bought with the same loan amounted to almost 25,000. With regard to jumbo loans, 4,600 houses in California were purchased for more than $ 417,000 in this manner, which is a decline of a whopping 70% from December 2006, when houses purchased number more than 15,000.

Other signs show that the real estate market in the state continues to move in different directions. Property foreclosures are at an all time high (we will discuss this in further detail later on in this article), and both adjustable-rate mortgage and multiple mortgage financing has declined drastically. At the same time, down payment values as well as flipping rates have remained fairly constant, and buying activity by owners who do not occupy the properties in question is on the rise.

In Southern California, the extremely low level of house sales in December 2007 has caused many in the real estate industry-sellers, buyers, and lending institutions included-to watch the market closely. While the number of new houses sold in Riverside, Los Angeles, San Diego, San Bernardino, Orange County and Ventura went up .5% from the previous month-about 13,200 from slightly more than 13,100 in November-this still represented a steep 45% decline from the same period the previous year, when houses sold numbered slightly more than 24,200.

One real estate industry analyst has declined to make any forecasts or predications about which way the market will go in the next few months, saying that the present instable condition of the market has made it impossible to predict which way things will go. Many experts agree however that the real estate market will stabilize soon and that a clearer picture will emerge. Until then both buyers and sellers are keeping a watchful eye on the proceedings.

We mentioned earlier that foreclosure activity is on the rise, and indeed during the last quarter of 2007, mortgage default notices were at its highest level in 15 years. Much of this increase in foreclosed properties goes hand in hand with depreciation of home values. Many homeowners have suddenly found themselves in a position wherein they owe more on the mortgage than what the property is actually worth on the market. A large number of those who have been forced into foreclosure may have felt the pressure of high mortgage rates, the loss of income or even the need to move to another state.

One factor that can explain this phenomenon is the decline in median house prices from a high of $ 484,000 in March of 2007 to just slightly above $ 400,000 in the latter part of the year. Although this decline was perhaps partially caused by the shift in the type of houses that were sold, this would have undoubtedly still had a significant role to play in the increase of the number of homeowners who were forced to default on their mortgage loans.

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Haverhill | Sherwood Real Estate
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Southern California Real Estate Trends Continue to Show a Buyers Market

Southern California real estate statistics show that since early 2007, the housing market has been in the hands of the property buyers. Since then, Southern California real estate prices have fallen, and along with those prices, interest rates have dropped as well. This has prompted more people to buy property in 2008 compared to 2007. Sixty nine percent of Southern California real estate buyers claimed that lower prices encouraged them to buy, and 31% cited the low interest rates as their main motivation to make a move.

What some of the causes were for the downturn in the Southern California real estate market were poor underwriting of contracts, leaving buyers unaware and unprepared for fluctuating interest and mortgage rates, which lead to an increase in foreclosures and lender owned properties. Drastically increasing food and gas prices also were devastating to many buyers who had then come to no choice but to foreclose on their home. The increase in costs of living also made potential buyers unable to buy a home or postponing purchasing a home. These trends together resulted in a large increase of empty, available homes and people who could not afford to buy them.

Since there has been such an increase in the number of homes available for purchase in the Southern California real estate market, this has led to a wide array of choices and variety of homes for buyers to choose from. Buyers in 2008 spent much more time searching for a home than they have in previous years. In 2007, buyers spent an average of about 5 weeks looking for a home, while this year, the average amount of time browsing the market is about 8 weeks. In 2006, Southern California buyers had only spent an average of 2 and a half weeks searching for property. Traditional buyers, those not doing searches and virtual tours online to find a home, also visited twice as many homes before they purchased one this year.

Because of the large variety of choices and the uncertainty of what direction the housing market will be moving in, potential homeowners are also taking more time to purchase a home than they have in years past, and they are more cautious about the process as well. In conclusion, Internet buyers also spent more time searching through homes before contacting an agent in 2008, averaging 8 weeks, as opposed to traditional buyers, who searched the old fashioned way for 3 1/2 weeks before having a realtor step in. This year, 19% of Southern California real estate buyers were first time homeowners. They spent an average of almost 10 weeks with their realtor before buying a house, and in 2007, first time homeowners had only spent about 6 weeks searching before choosing one.

To know more about Southern California real estate please visit our website.

Bethany | Sherwood Real Estate
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Sherwood Real Estate, Southern California Country Club, Golf in Thousan Oaks

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Real Estate – The Number One Question Asked Today

For San Diego, the summer of 2005 was the high point in the real estate bubble. Now almost 2 1/2 years into the steady deterioration of San Diego home values, the predominant question asked by most potential home buyers is: “Has the San Diego real estate market bottomed out, or when do you think the bottom will be in place?”

“The only function of economic forecasting is to make astrology look respectable” – John Kenneth Galbraith (1908 – 2006) Obviously, no one can accurately project when any market, especially the San Diego real estate market, will bottom and reverse course, except in retrospection.

California real estate agents and brokers are continually advised not to give legal advice or financial planning advice. Perhaps, they should also be advised not to give economic forecast or predictions on market trends. I believe not giving this type of advice is implied by California law.

With that said, what can a San Diego real estate agent or broker comfortably tell prospective San Diego home buyers? Again, this is solely my own opinion and should not be interpreted to be any type of legal advice or guidance. I feel San Diego agents and brokers can feel comfortable telling prospective buyers where the local market has been, and the fact that there are incredible housing buys today, as compared to just a few short years ago. I think a San Diego real estate agent can tell buyers that the market has changed. Buyers, not the sellers, are in the driver’s seat. I feel San Diego real estate agents can tell buyers that in the past, a home was considered a place to live and raise a family and any appreciation gain on the sale of the home was a bonus. Perhaps, such a philosophy is a more prudent way to look at future residential home purchases.

San Diego agents and brokers can provide facts and opinions on the direction of our local San Diego California real estate market that have been published by other sources. These sources could be Wall Street firms, the National Association of Realtors, the California Association of Realtors and the San Diego Association of Realtors.

San Diego agents can also give data to prospective buyers showing that the after-tax cost of owning a home, depending on the down payment, maybe very similar to renting a comparable property.

Even if the San Diego real estate broker or agent personally thinks that our market has bottomed and we’re about to enter a new uptrend,they should not express these opinions to buyers.

As a real world example of a protracted real estate value depreciation one just has to look toward Japan. Japan is one of the strongest economies in the world and its average home value more than doubled from the early 1980s to 1990. This sounds just like what happened in San Diego from 2000 to 2005. Japan’s real estate market hit its top in 1990, and for the past 16 years has stayed in a steady downward trend. The average 750 foot condominium in Tokyo has dropped over 42% in value from its peak in 1990.

Will San Diego real estate values follow the Japan example? That’s very doubtful. What I am saying, by citing this actual example, is that no one can accurately foresee the bottom of any real estate market except after such a bottom has been in place for at least a couple years.

As for San Diego real estate values, my own simplistic survey done in late 2007, demonstrated that in many areas, the top of the market in 2005 condominium values have decreased well over 20%. In the areas that I looked at,this drop worked out to just under $ 100,000 for the period.

So, are today’s San Diego condominium buyers picking up exceptional values at close to $ 100,000 less than the same property sold for just a few short years ago? The answer is clearly yes. But, the more important question is whether today’s San Diego condominium or home prices will be higher in January 2009 or January 2010 as compared to where they are now.

Copyright 2008 Promotions Unlimited http://www.websitetrafficbuilders.com. All rights reserved. any additions/modifications/hyperlinks added to this article will be considered a copyright violation & subject to immediate legal action without further notice.

Bob Schwartz,real estate broker,is a Certified Residential Specialist, San Diego real estate agent with w/over 27 years experience. He has a popular San Diego real estate blog Bob’s other sites are: Downtown San Diego real estate & San Diego real estate agents

Room with a View
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From Point Richmond on the east side of the San Francisco Bay. An abandoned industrial site near an old disused train dock. All of this land is getting devoured by developers. I don’t know about you but I wouldn’t trust the drinking water around these sites. Sure its prime real estate but the soil cant be safe.

Check out my New Book entitled ‘Surface: Industrial Decay" available now.

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Why Buying Real Estate In Baja California Is Such A Good Idea?

For many years now, Baja California has been known as a party and vacation spot for many people all over the world. From couples seeking an intimate getaway to college students looking for a place to get in some much needed partying over spring break, Baja California presents an ideal destination where you can go to leave the worries of the real world behind.

What a growing number of people are realizing however is that aside from providing a temporary haven for rest and recreation, Baja California can in fact be a place where you can spend considerably longer periods of time in and perhaps even live out your retirement years. And why not, after all? In addition to the many stunning natural features of the area, there is a wealth of both personal and business opportunities to be had for the few souls brave enough to make the move. If you need any more convincing there is the world famous warmth and friendliness of the local residents, the excellent standard of living-particularly if you measure your income in dollars-and the near perfect weather all year round. And let’s not forget that Baja California is only 30 to 40 minutes from the U.S. border. In fact Baja California is probably the only place in the world where beachfront property and near-perfect southern Californian weather can still be had in abundance.

By all indications, the real estate market in the U.S. has all but dried up. Investors are now looking for the next big thing and many experts agree that Baja California is it. As you read this article, a number of factors are coming together, the combined effects of which will ultimately result in the next big property boom occurring in this area. For one thing, the Mexican government has implemented a number of changes in the country’s real estate laws that now make it legal for foreigners to purchase property in Mexico-even in areas that were formerly off limits to foreign buyers. By securing a bank trust or a Fideicomiso, the process of buying land in Baja California-or most any other place in Mexico for that matter-is now simpler and safer than ever.

Even U.S. banks and lending institutions are getting in on the act, with many lenders now offering mortgage financing as well as title insurance for foreign-owned property in Mexico.

Finally, your dollars can be stretched a lot further in Baja California. You probably know by now how hard it is to find available beachfront property in Southern California. Well, not only is it available in Baja California, but the prices are up to 4 or 5 times cheaper than similar property in the U.S. That in itself is a good enough reason to buy but when you realize that current property appreciation is measured at 30%, it almost makes no sense not to buy!

Clearly the market in Baja California real estate is on the rise. The time to act is now if you want to get some of the action!

Baja California Mexico real estate, 45 luxury beachfront condominiums in Real del Mar just 18 miles from the San Diego border.

Thomas D. Harvey
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California LLCs: Real Estate Investors Scratch Their Heads

In the tough California real estate market of the last two or three years, investors need every tool available for minimizing risk. And owning a property through a limited liability company should be considered. Unfortunately, California’s handling of the llc formation process and the state tax rules related to California LLCs complicate the use of a LLC for real estate investments. Accordingly, California real estate investors and their advisors need to consider three, unique to California issues.

Issue #1: Long Processing Lead Times

Many states process the articles of formation that create a limited liability company almost immediately. Often, for example, these states use an online website to collect the LLC information (name, address, owners and so forth) and the formation fee. And then the acceptance of the documents occurs almost instantaneously.

For real estate investors, however, here’s where things get more complicated with California. The California Secretary of State takes several weeks to process the formation paperwork. In the fall of 2011, for example, mailed in LLC filings take three weeks to process. And if you want to hand-deliver the LLC filing, the turn-around time accelerates to roughly two weeks.

You can also pay fees for expediting the processing of your formation documents. You can, for example, get “same day” filing by paying an extra $ 750. With “same day” filing, the Secretary of State will process your paperwork by 4pm as long as you turn the paperwork in by 9:30am. And you can get “24-hour” filing by paying an extra $ 350. With “24-hour” filing, your paperwork gets processed within a twenty-four hour window: If you turn in the paper at noon on Tuesday, your application will be processed by noon on Wednesday.

What all of the forgoing means, however, is that if you want to use a California LLC for a particular property, you either need to think ahead and get the limited liability company set up several weeks early or you need to budget for and then pay expediting fees in order to get your LLC setup almost as part of the closing process.

Issue #2: The $ 800 Gorilla (aka Franchise Tax)

Another LLC issue unique to California is the state’s $ 800 a year franchise tax.

Setting up an LLC in the state doesn’t cost you much. In 2011, for example, the filing fee is a modest $ 70. That’s a great deal, in a sense, for the limited liability protection you get from the llc.

But the state also tags you with an $ 800 annual franchise tax. So even if you’ve got a very modest real estate investment such as an inexpensive building lot way out in the desert or a small condo, you’ve still got to pay the annual $ 800 fee to hold the property inside an llc.

The rather extreme annual franchise tax means that investors purchasing small properties need to think carefully about the trade-off between the increased legal protection an LLC offers and the extra cost the franchise fee creates. In many cases, unfortunately, the investor probably won’t be able to justify the ongoing extra cost of a California LLC simply because of the franchise fee.

Two quick notes about the California LLC franchise tax before I move on to the next issue: While you must pay the California LLC franchise tax if you own an LLC that owns property in California, you should be able to avoid the tax if you own property outside the state with a non-Californian LLC. Say you want to hold a Washington state rental property through an LLC. As long as you set up a Washington state LLC for this and the only activity of the LLC is holding property outside the state of California, California shouldn’t be able to levy the $ 800 tax. (Washington State charges a $ 69 annual fee for LLCs, an amount which is pretty much in line with what other states charge annually.)

Issue #: Consider the S Election for Flipping LLCs

A final quick point related to using LLCs for real estate investments: If your LLC will flip properties, your real estate income may not be passive. The “real estate flipping” income may be considered active self-employment earnings and subject to self-employment taxes. So here’s why this is important to consider: The extra taxes that self-employment-earnings status creates can add up. Self-employment taxes (which are the small business’s equivalent of Social Security and Medicare tax) equal roughly 15% of the first $ 100,000 a person makes and roughly 3% of any other income a person makes.

Using a long-established accounting trick, however, an LLC may make an election to be treated for tax accounting purposes as an S corporation. Note that the California LLC is still, for state law purposes, an LLC. But for federal and state tax purposes, the LLC reports its income and deductions as an S corporation.

The benefit of using the S corporation tax accounting rules is that the real estate investor flipping properties gets to split the real estate profits into an “employee wages” share and an “owner” share. Only the employee wages share gets hit with the self-employment taxes.

Note: Commonly real estate flippers using S corporations pay themselves modest salaries. A real estate flipper who makes $ 100,000 but pays himself a $ 40,000 wage saves roughly $ 9,000 a year in self-employment taxes by using the S corporation accounting rules for his California LLC.

Tax accountant and best-selling author Stephen L. Nelson is formerly an adjunct tax professor in Golden Gate University’s graduate tax school, Nelson is also the author of two do-it-yourself guides, California Limited Liability Company and California S Corporation.

Bethany | Sherwood Real Estate
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Guide To How California Real Estate Fees Are Typically Divided

Every real estate transaction involves numerous fees and can be very confusing to both buyers and sellers. It is very important that the buyer and seller both understand which fees they will be expected to pay. California real estate transactions involve many fees and payment is typically divided differently between the buyer and seller depending on which area in California the property is located. The list of fees can be quite lengthy and may include escrow, title, insurance, deed, notary, recording, attorney, real estate, taxes, and inspections. Oddly enough the property location is typically used to determine which fees the buyer will pay, which fees the seller will pay, and which fees will be divided. Outlined below are the usual real estate transaction fees and who typically pays for them in California. But, it is also important to note that it is quite acceptable for the buyer and seller to negotiate the payment of fees and expenses as part of their real estate transaction.

Escrow is a third party agent that receives, holds, and disburses the funds and documents for the real estate transaction. This fee is usually paid by the buyer in northern California and by the seller in southern California. But it is also not uncommon for the buyer and seller to split this fee.

The title search is the process where public records are reviewed to research any previous liens or problems on the property. This fee is customarily paid by the buyer in northern California and the seller in southern California. This benefits the buyer so it is not unreasonable to request for the buyer to pay for this fee.

Title insurance protects the lender, the seller, and the borrower against any defects or previous claims to the property being transferred or sold. The buyer usually pays for this in northern California and the seller in southern California. This also benefits the buyer so it is not unusual to request the buyer to pay this fee.

Notary fees and recording fees are paid by the buyer for trust and grant deeds which help the buyer to purchase and finance the property. The seller pays the notary fees and recording fees when it is a reconveyance deed on the property which the seller will receive when paying off an existing mortgage.

In California the documentary transfer tax and the city transfer tax are usually paid by the seller. If an attorney is involved the fees are paid by the party that hired the attorney. All inspection reports including home inspection, roof, pest control, general contractor, and any other inspections are paid by the buyer. This is because the buyer usually selects the company to perform the inspections. If a home warranty is offered it is paid by the seller, but the buyer may purchase one if it is desired. Again, it is acceptable for the buyer and the seller to reach any agreement they feel is equitable for the payment of any of these fees.

San Diego Mortgage site provides readers with free informative articles about mortgages and real estate. Visit our site for all your Southern California Mortgage needs.

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California Real Estate Investment – Why Buy a House in California

Want to be inspired by the sandy beaches overlooking the rocky coast along California’s Central Coast? Do you like living in a country wine, craft villages, quaint country inns, and cottages by the sea? Would you like to romanticize a place as romantic and raise their children in an area that exudes a great life? If you answered yes to any of these questions, then you should look for when buying real estate in the central coast of California.

The reason for the increase was twice. One was people came to California at a higher rate. Secondly, lenders were giving loans much larger than they should have. This is the second village was started in the fall of the interest payments only adjustable loans. Just made the criteria for qualifying. At the time interest rates rose they could not afford the new payments. It originally sold on the idea that interest rates will not rise for some time, and then your earnings would increase to pay the mortgage.

California is heavily populated from north to south along the coast, but say it offers very different ecologies. In northern California, one is much more likely to see signs of the four seasons, get cold temperatures and historical feel more in places like San Francisco. Southern California, by contrast, has a very moderate climate with temperatures rarely below 60 degrees of immersion, even in winter. Rainfall is scarce in San Diego also received about 11 inches a year. If you are considering moving to California, there are two constants throughout the state.

The real estate agents are trained specialists who are well versed with the trade of real estate. Agents have a deep knowledge regarding the property they deal with and are well versed in legal issues involved in real estate transactions in California. The real estate agents may be able to satisfy customer inquiries related to ownership costs, pricing, and the reason for the sale. They are well informed about the size of the property, maintenance costs, and legal restrictions.

Be sure to select the best realtor for your situation. There are plenty to choose from, so it’s best to do your homework before making your choice. An excellent starting point is to have a look online to agents in the area. Therefore, a simple Internet search will get you started. Most agents have their own websites, so you can learn a lot about them before contacting them. Regardless of the city in California you want to move, the housing market is in a real high.

California is certainly the state of United States gold. The state’s GDP (Gross Domestic Product) is the largest in the country and is only behind seven countries in the world. Now, not that say it all for money making potential this state has it done? That’s why California attracts thousands seeking a better life. And therefore, investment real estate in California can be considered as a benefit of all, no loss proposition.

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