Real Estate Information Archive

It is very exciting to see Village Maker getting attention not only in the US, but overseas as well . The following article was posted on a Real Estate related Blog site in the United Kingdom!  VillageMaker offers the agent a great opportunity for introduction.  Click to read the article.

We just got back from Launching our new "social networking" system called Village Maker. Village Maker is the latest addition Real Pro Systems' product line.

For many years Real Pro Systems has helped agents build their business by capturing and cultivating leads. The next logical step is keeping in constant contact with those past clients. VillageMaker accomplishes just that. It offers a medium to build even deeper relationships with your clients as well as gain subtle introduction to their friends and family. By building your sphere of influence your referral base will grow.

How does it work?  Well, here is just one example. After you close on a home you can gift your client their very own website that has the photos and details for their new home (you can go back through your past clients and give them a site too). Not only will they share the purchase of their new home with their friends and family, but they will also want to continue to use their site to share other fun and important events that happen in their lives.  

The benefit for you (the agent) is that you are the sponsor of this local network and your branding will appear (subtly) at the bottom of all your client's posts. When friends and family of your clients visit your members site, you are gaining a subtle endorsement as the agent of choice to buy a home through. You are also staying "top of mind" with your clients as they are always logging in to use site you gifted them.

Hi Charlee,

I would like to let you know that we have always experienced excellent professional help every time we have called Real Pro and spoken with an associate.  AND, the site is easy to navigate and very user friendly.  The drip campaigns are great. We have chosen to "tweak" them a bit and really appreciate the flexibility the system offers. Over the last few years, with the Real Pro system, we have closed over $15M in sales. This year only $10 M, but not bad considering the market here. 

Thank you Real Pro Systems.

Maury Tome

Galand Haas, of Keller Williams Realty Eugene and Springfield, provided a great example of an  email that he sends out with his "Monday Morning Coffee" blast. The Monday Morning Coffee is a link to an inspirational message that appears on your website and is updated weekly by Real Pro Systems. 

The email is usually topical to local events/weather and then mentions something regarding the local market conditions over the past week. Sometimes it includes national information like the email below. 

Now for the best part.....This content is perfect to copy and past into your Real Pro Systems Blog. This gives you relevant and unique content that will help with your search engine optimization. So now you can accomplish two tasks at one time.

To learn more about Monday Morning Coffee and Blogging, please contact me by phone at 541-686-0015

Good Monday Morning!

Congratulations to the Marist High School Spartan football team and the Sheldon Irish High School football team for their state championships in Divisions 4A and 6A.  Way to go.

mortgage interest rates continue to decline.  Last week I saw some 30 year fixed loans at 5.5% to 5.6%.  This is the lowest these rates have been in several years.  Over the past several months, I have been telling prospective home buyers that this is the time to act.  You may not see the market get any better for purchasing a home than what it is right now.  Good markets are hard to hit and many times we wait to see if they will get even better and then miss the chance to really hit it right on.  It's impossible to predict the future, but we just very well may be a that point where you want to think about making your home purchase.

Have An Awesome Week!

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Sincerely,
Galand

I am wildly happy using the system. When I was asked in the presentation how many people were making $50K off their website and internet...no 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

 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.

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 45^th 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 180^th 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.

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

This article was contributed by Dan Hatfield- ProLeads Manager. Thanks Dan!

There are many things you can do to/with your site to help it be indexed and placed higher by search engines. Here are two of the more popular ones:
 
1) Add additional content to your website - start with your main page, list the towns & areas you work in, the services you provide, give a little background about you and your team.  Mention some current things that you are involved in in your area if you are active in your community.
 
Create additional Resource Pages that give helpful and relevant information for your area.  It can range from a collection of schools and places to dine in your area (or categorized by each city) or could be information to help people get the most value for their home (ex: 10 Things to Do to Make Your Home More Appealing).  The more pages you have of useful information, the more people in your area will use you as a resource.  If people start using you as a resource the search engines will definitely take notice.  Be sure to make some links on the main page of your main site to articles you've written (or had someone else write for you) that you think people might be interested in.  Change these links from time to time with new content.
 
Find reputable companies and websites that will link to your main site.  Many sites will do it if you ask them nicely in a personalized email (no canned letters, website admins hate those).