Real Estate Information Archive


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Inked deals worth $40,000

by Charlee Jacobs

I am wildly happy using the system. When I was asked in the presentation how many people were making $50K off their website and one chimed in. I rather doubted your system could do that for me but it seemed so well thought out and glued together I gave it a try. 3 months into it I have inked deals worth $40K to me when they close (just signed the contracts this week) and am working with several buyers and my contacts continue to grow.

"Mick" Marsden

Don't know what to blog about? Here is a great example.

by Charlee Jacobs

 Is the negative media a challenge to overcome? Well, you are the expert in your area.... share your knowledge and set the record straight. Here is a great example of  Blog material from Steve Arbuckle in Utah.

Utah Real Estate Market -- Salt Lake Tribune gets it wrong.

At a time when Money Magazine and The Associated Press are reporting that Utah is bucking the national housing slump, the Salt Lake Tribune is saying “Utah’s housing boom now a bust.” Thursday, the Salt Lake Tribune reported on its front page that new home demand was at a 17-year low, a story that included broad generalizations about the Wasatch Front housing market.

The Facts Are:


  • The story’s headline, which said, “Utah’s housing boom now a bust,” was misleading and inaccurate. The story only cited statistics regarding home-building permits; the story did not mention existing home sales or the pockets of new-home construction that are doing well. The headline led Tribune readers to believe that all segments of Utah’s housing market are doing poorly. If such broad generalizations are going to be made in headlines, the Tribune needs to include information about each part of the housing market in the story.
  • The Tribune article quoted an individual who said, “ ‘People are afraid to purchase’ a home right now,” a misleading statement that could cause buyers to miss out on great appreciation opportunities. It’s a disservice to the Tribune’s readers to suggest that prospective Utah home buyers shouldn’t buy now when the National Association of REALTORS® projects Utah will see home prices increase anywhere between 7 and 10 percent in 2008. That means the buyer of a $200,000 home could miss out on $14,000 worth of appreciation by waiting to buy.
  • The story suggested that Utah buyers have been unable to obtain loans when in fact financing is readily available and affordable. mortgage rates are still at historic lows, with interest rates on a 30-year fixed mortgage near 6.38 percent, much more affordable than the double-digit rates seen over the years. For buyers who would have needed subprime loans that are no longer available, safer FHA products will be able to help serve their needs.
  • Utah has strong market fundamentals — good job growth, population gains and low unemployment, which will keep demand for housing high.
  • Real estate markets are complex and the Tribune’s readers are not served by misleading generalizations that don’t tell the entire story.

Tax Deferred Exchanges Q and A

by Charlee Jacobs


Q         What is a tax-deferred exchange?


A         Tax-deferred exchanges are permitted under §1031 of the Internal Revenue Code.  These exchanges are used by people want to defer payment of capital gain taxes when selling and buying investment properties and business properties.  Exchange properties may be single family rentals, bare land, commercial, etc.  Tax-deferred exchanges are also called “tax free exchanges,” “like-kind exchanges,” and “Starkers.” 


Q         How would an exchange benefit me?


A         When you sell an investment or business Property you owe tax on any capital gain in the Property.  On a gain of $30,000 this can mean a tax bill of as much as $10,000, between federal and state capital gain taxes.  If you exchange the Property, instead of selling, you don’t have to pay the taxes.  Exchanges are a great tool for investors who are trying to grow wealth.  You get to keep the $10,000 and use this to leverage into a larger replacement Property.


            Because this is only a tax-deferral technique, if at some point in the future you sell the replacement Property (without doing another exchange) the tax will come due at that time.


Q         How does an exchange work?


A         Most exchanges are simply the sale of a “relinquished” Property and the purchase of a “replacement” Property.  Taxpayers need to work with an “accommodator” that will prepare some special paperwork for the sale and the purchase.  In Oregon most accommodators are corporations affiliated with title insurance companies.  It is the accommodator’s paperwork that creates the exchange.  The accommodator is also required to control and hold the cash from the sale.


Q         Are there any other requirements?


A         Yes.  First, you only have 180 days to complete the sale and purchase.  This is called the “exchange period.” 


            Second, there is a requirement that the replacement Property be carefully identified within the first 45 days of the exchange period. 


            Third, to get a complete deferral of capital gain taxes there are some reinvestment rules.  Simply put, it is cash for cash, debt for debt.  All cash from the sale must be applied toward the purchase.  And if there was a mortgage on the relinquished Property then you need a new mortgage of equal, or greater, amount on the replacement Property.   


Q         What if my cash for cash, debt for debt adds up to $165,000 but I only buy for $155,000?


A         Assuming there is $30,000 of gain in the relinquished Property, you have a tax bill on $10,000 that was not reinvested.  You still get a deferral on $20,000 of gain.  This is called a partial exchange.


There are also restrictions about how the money from the sale can be spent and when any excess exchange funds can be returned to you.  If you are unable to purchase a replacement Property the accommodator may be required to hold your money until after the end of the 180-day exchange period.


Q         What happens if I can’t identify a Property within 45 days?


A         The exchange fails, the cash held by the accommodator must be returned to you after the 45th day and you have to pay capital gain tax.


Q         What if I can’t purchase within the 180 days?


A         The exchange fails, the cash held by the accommodator must be returned to you (after the 180th day) and you have to pay the capital gain tax.  These deadlines are very rigid and can only be extended in the event of a presidentially-declared emergency.


Q         I have a little rental house.  Can I exchange it for a second home?


A         Although we all believe second homes are an important “investment,” personal-use Property does not qualify for exchange treatment.  However, with patience this could work.  You might sell the rental house and buy a rental house in an area where you would eventually like to have a second home.  After renting the new house for a period of time (consult with your tax advisor) you could begin to use the home personally.  Better yet, if you end up retiring into the Property it may qualify for mostly tax-free treatment as a personal residence.


Q         I am tired of my three rental houses.  Can I exchange them for a nearby commercial Property?


A         Yes.  You can exchange residential properties for commercial, or any other real Property that you intend to hold for investment or business.  Although these are called “like-kind” exchanges, all real Property is “like-kind” with all other real Property, even when the exchange is improved Property for unimproved Property.  What is important is that both be held for investment or business purposes.


Q         I am tired of my three rental houses and I don’t want any other Property.  I just want out!  What about buying into a Real Estate Investment Trust (REIT)?


A         Unfortunately, because you are selling real estate you must buy real estate.  Buying into a REIT is buying stock and is not considered to be an interest in real estate.


            An option for you might be purchasing a piece of a Tenancy-in-Common Property (TIC’s).  There are companies that market TIC interests, typically office and retail properties.  As a smaller investor you may be able to sell your rental houses and buy a percentage interest in one of these properties. You still get an interest in real estate (as required for the exchange) but no longer have to deal with Property management.


Q         I am having trouble selling my rental house but there is a condo in Hawaii that I want to buy.  Can I buy it before I sell the rental and still qualify for an exchange?


A         Buying before you sell is called a “reverse” exchange.  While the IRS issued rules for reverse exchanges in 2000 these exchanges are far more complicated than a “forward” exchange.  Among other things, you are not permitted to own both properties at the same time.  Therefore, you have to “park” one of the properties with an accommodator.  Plan to spend some significant time consulting with the accommodator company and your legal and tax advisors to arrange the reverse exchange.  The accommodator’s fee for the reverse exchange will be higher than their fee for a forward exchange.  You will have other additional expenses – recording fees, closing fees, perhaps higher loan fees, etc. 


Q         Is there anything else I should be aware of?


A         There are a number of technical rules that apply to exchanges.  And there are special challenges in exchanges: related parties, new construction, dissolving partnerships, to name a few.  Before deciding to do an exchange you should talk to your tax advisor and a knowledgeable accommodator company to review these numerous rules and make sure the exchange will be beneficial to you.

Does Real Pro Systems offer Search Engine Optimization?

by Charlee Jacobs

I'm often asked what kinds of Search Engine Optimization Real Pro System uses to ensure website hits and visility.

Our approach to lead generation is different than most. Search engine optimization is great for getting your site to the top of the search engines, it can equate to hundreds of hits to the website, but not necessarily leads. The key is getting someone to engage on the site once they are there. This is why our strategy is to advertise/promote a site such as . On this type of site, it is easy for the prospect to identify what is in it for them. According to NAR, over 80% of the buyers start their search on line, so it makes sense to take them to a site that gives them what they are looking for and in return, you have a way (drip campaigns) and a reason to follow up with them on a continuous basis. The campaigns are meant to build the relationship and keep you top of mind till they are ready to come forward and work with you.
While top ranking is great and may be worth paying for, we recognize that it takes time and can be costly. We do submit to Google, yahoo and MSN. In addition, we have integrated tools, such as the Blog, that can help with SEO. On the internet, content is King and unique content is best. We also provide tools in the back office so each content rich page can be optimized with meta tags and key words. .
We also offer a buyer lead generation program where we generate buyer leads for you. This is not hits to your site, but rather a name, email address and search criteria of a prospective buyer. This service is called ProLeads.
Please feel free to make comments to this post. You can also email or call me with additional questions. 

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Real Pro Systems
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Eugene OR 97401
Direct: (541) 743-8517
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