Colorado Real Estate

Bolg Contents

What do Really Matters in Finding Your Desired Home?

Denver homes for sale comes with different aspects of nature which makes it only one of its kind in the investment sector. If you are looking to buy an investment property in Colorado, projects of this type of accommodation can give you an idea of what type of property to buy. But before investing, it is recommended that research must be done in the area you plan to buy a house and that the potential for growth in this area could lead to installation or investment property, including homes, condos or lots. You can search for Denver Real Estate though Internet for more information about the place and could give a trace about what to choose in Denver MLS, which contains the lists of most of the concerns of your wanted property.

When you have decided to buy a home, the whole family concerns is what really do matter, isn’t it? It is vital to know the location capability of the said housing presentation to ensure that it gives you all the security that you, especially your children need to have. Colorado has been renowned life aspect of making a burst through in different life routines that would satisfy the requests of the whole family. The said area is one of the best places to settle with.

Style, design, precise location, price and other construction details will surely follow thereafter when you have set the major issues in acquiring a home. You can easily have a value of your long time hard work. When in doubt, take all considerations before buying the property. Denver Homes for Sale may equip sudden change in any transaction of purchase; there are unforeseen situations you may encounter immediately after the procedures. It is much better if you prepared yourself for giving solution to some minor errors too so that you cannot easily be threatened whenever some difficulty of procedures meet you along the way. As one of the most attractive and desirable place in Colorado, Denver has the good point of a rule of life. This city will cannot easily be altered by sudden changes in companies and businesses, and leaving a note on the economic aspect.

Posted on August 17, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Tax Implications of a Short Sale

A Denver short sale has many facets, and one of the most important and least understood is the tax implications. There is much misinformation regarding taxation and a short sale so I wanted to highlight the topic and ask that any homeowner with a distressed property contact a CPA or tax attorney to discuss their particular situation.

Often times I am told by a potential client that one of the reasons they would rather let their home go to foreclosure than do a short sale is because they don’t want to be taxed on the transaction. Only being tax liable for a short sale is not correct. Whether the transaction is completed via a Short Sale or a Foreclosure the amount of debt that is foregiven is considered by the IRS as a gain. Any debt above 0 that is forgiven or written off by a lender must be reported to the IRS. The lender should provide the homeowner with a 1099-C Form which gets it name from the form that the IRS provides (the IRS isn’t renowned for their originality!!). Even if you don’t get the form you must assume the institution is going to report the transaction to the IRS. What this means, is that on your next tax return you have to claim this amount as income. This is the case whether you get the amount forgiven via a short sale or a foreclosure. 

Using the following example let’s figure out your potential tax liability:

Purchase Price – 0,000.00

Debt Amount – 0,000.00

Auction Price – 0,000.00

From the IRS Website (http://tinyurl.com/2ayv2g):

Use the following steps to compute the income to be reported from a foreclosure:

 Figuring Cancellation of Debt Income (Note: For non-recourse loans, skip this section.  You have no income from cancellation of debt.)

1. Enter the total amount of the debt immediately prior to the foreclosure.___________
2. Enter the fair market value of the property from Form 1099-C, box 7. ___________
3. Subtract line 2 from line 1.If less than zero, enter zero.___________

]]>

The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C.  This amount is taxable unless you meet one of the exceptions in question 2.  Enter it on line 21, Other Income, of your Form 1040.

1 – Debt amount is 0,000.00

2 – Auction Price is 0,000.00

3 – Cancellation of Debt amount – ,000.00

The amount to be entered on the IRS Form 1040 is ,000.00.

The same calculation is done in a short sale calcuation. The interesting thing is that, according to RealtyTrac.com, a pre-foreclosure home sells for less of a discount than a foreclosure auction home. In the state of Colorado in first quarter of 2011 a home sold at a foreclosure auction is purchased for a greater than 8% discount vs being sold as a short sale (http://tinyurl.com/3m7u7zv). Instead of a market value price of 0,000.00 statistics say your market value would be 8% higher, thus reducing your potential tax liability.

I used the word potential because in 2007 a bill was passed (The Mortgage Forgiveness Debt Relief Act) which generally “allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief. This provision applies to debt forgiven in calendar years 2007 through 2012. Up to million of forgiven debt is eligible for this exclusion ( million if married filing separately)” .

Basically this means that most homeowners will be eligible to exclude the amount of the 1099-C on their tax return – at least until the end of 2012 calendar year. As always, homeowners should consult with a tax attorney or CPA to see if they are eligible for this exemption but the lesson in all of this is that the tax implications of short sale vs a foreclosure should not be a reason to not complete a short sale. 

Darren Hunter

VP – Acquisitions

Venator Properties LLC 

MORTGAGE ASSISTANCE RELIEF SERVICES DISCLOSURE 

The following disclosure are being made pursuant to the Federal Trade Commission’s Mortgage Assistance Relief Services (“MARS”) Rules (16 C.F.R. Part 322).

IMPORTANT NOTICE: Before using this service, consider the following information:

Venator Properties LLC does not and cannot charge you any upfront fees in conjunction with agreeing to buy your dwelling via a short sale or for providing you any other type of mortgage assistance relief service.

Venator Properties LLC is NOT associated with any government agency or program, and our company is NOT approved by the government or your lender(s). 

Even if you accept this offer and use our service to sell your dwelling via a short sale, your lender may not agree to change your loan or approve the short sale.

Venator Properties LLC is not and will not provide you with legal advice or representation.

At this time no one knows how long it will take to complete the short sale.  There is no guarantee that the short sale or any other type of mortgage assistance relief service will be approved by your lender(s).

You may stop doing business with us at any time with regard to the short sale, our short sale negotiation services (if any),or real estate brokerage services (if any) which are being provided to you as a part of our effort to buy your house.

You may accept or reject the offer of mortgage assistance including the short sale approval that we may obtain from your lender or servicer. If you reject the offer, you do not have to pay us. If you accept the offer, you may have to pay us a fee of $  0.00 for our short sale negotiation services.  This fee and all other fees associated with the short sale of your dwelling will be listed on the HUD 1 closing statement. 

If you stop paying your mortgage, you could lose your home and damage your credit rating.

Any decision to stop or limit communication with your lender should be determined by you and your legal counsel in accordance with the Fair Debt Collection Practices Act.

Posted on August 15, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Secrecy and Asset Protection

Hi, this is asset protection attorney Gary Fales. Today I want to talk with you about making your assets secret. The truth is, no good asset protection plan is going to be built around secrecy. In this day and age, the assets are going to be discovered sooner or later. You need to protect yourself by having real substantive strategies that work, not strategies that rely on secrecy.

The creditors (or the person who is suing you) are eventually going to discover your assets anyway. Let me tell you why: If you are sued and you lose and you end up in the debtor’s exam, you’ll be under oath to answer their questions truthfully.

If they ask you about what kind of real estate you own, or the piece of property that you own over in Mexico, or in Oklahoma, or in California, and you lie about it, then that is perjury. Perjury is a felony, and by definition of a felony, it is punishable with a prison sentence of one year or more. If you lie about the assets, and you know that you own them, then you’re looking at potential prison time. It’s just simply not worth it.

That is one of the reasons why I don’t necessarily like Land Trusts and the way they’re used. The Land Trust is a concept where you place your asset (your piece of real estate) into the trust that has a different name. The trust doesn’t have anything associated with your name, except that you’re the beneficiary. The problem occurs if they ask you if you’re the beneficiary to a trust. You then have to tell them the truth, “Yes I am.” Once they find out the character and nature of that trust, and that it offers you no underlying protection, the assets are going to be taken from that trust, as if you own them yourself.

The problem with this scenario is that, because you know this, you may want to tend to lie about the real nature of the asset in that trust. They may ask, “Are you the beneficiary of XYZ Trust?” and you might be thinking, “I wonder if they’re ever going to find out about it. Is there any connection linking me to that trust?” If you think you’re foolproof, and that no one could ever find out about it, then it’s possible that you could lie. And that’s just not a good way to go; it’s not a good strategy.

I would prefer that you simply tell them the truth about everything you own, if you do own it. If they ask about any gifts or transfers that you’ve made, you tell them the truth about the transfers, and then rely on the good solid planning that has been done. That’s one of the reasons why I love the asset protection trust. You can transfer the assets into this trust (while still maintaining a great deal of control over the trust) but once those assets have been in there for a certain period of time, they cannot bring an action against the trust assets and try to reverse them.

So the story is a lot different if you would have transferred the real estate into an asset protection trust. When they ask you “Are you the beneficiary of a trust?” you can tell them the truth, “Yes I am.” Then, if they try to bring an action against that trust, if the proper seasoning time has occurred, then they cannot be successful.

I often have people who want to go to great lengths to be anonymous, or to not have these assets revealed. I think it’s a crummy strategy that is not worth our time and certainly not worth our effort. It takes a great deal of effort to truly become anonymous, and even then if you file tax returns (which I assume you do) they’re going to find out by issuing a subpoena for your tax returns.

Therefore, you need to just plan on the fact that your assets are going to be revealed, and then if they are revealed, you want to make a plan that is actually going to have a strong foundation to protect you.

This is asset protection attorney Gary Fales; I hope that was educational. I’ll talk to you soon, thank you.

Posted on August 13, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Fractionalize your foreclosure property

Let me tell you about an investment strategy that very few investors think about doing with their foreclosure properties.

You purchase a luxury foreclosure property in a vacation destination such as Florida, Arizona, California, Nevada or Colorado at a foreclosure auction or from the bank directly such as a REO property. Then, you turnaround and sell fractional shares to buyers who want to use it as a second home and/or vacation property.

It’s better than a timeshare because the buyers actually own an interest in the property. This is a great niche market for anyone who has a property that he or she is having a hard time selling, too, because fractionalizing allows you to sell the property to several buyers at one time for more than one buyer alone would be willing to pay.

Here’s how it works:

You can sell your property based upon a calculated formula such as the one below:

1/4 ownership buyers get 13 weeks each out of 52 weeks total (with no unused weeks)

1/6 ownership buyers get eight weeks each out of 48 weeks total (four unused weeks)

1/7 ownership buyers get seven weeks each out of 49 weeks total (three unused weeks)

1/8 ownership buyers get six weeks each out of 48 weeks total (four unused weeks)

1/10 ownership buyers get five weeks each out of 50 weeks total (two unused weeks)

]]>

1/12 ownership buyers get four weeks each out of 48 weeks total (four unused weeks)

1/13 ownership buyers get four weeks each out of 52 weeks total (no unused weeks)

1/17 ownership buyers get three weeks each out of 51 weeks total (one unused week)

It is always a good idea to keep at least two weeks free for maintenance and repairs.

You sell each buyer an ownership interest in your property and in exchange give them an ownership deed for their proportional interest, which represents the number of weeks they receive based upon a formula you select.

All the buyers enter into an operational agreement with each other, sharing the costs of maintaining the property, including taxes, insurance and repairs and setting forth the number of weeks and which weeks each buyer gets to use the property. They can rent out their weeks if they decide not to use them. Typically, the owners also enter into a management agreement with a management company so that the owners don’t have to worry about managing the property.

Why it works?

This strategy works because any seller can convert his or her luxury property into fractional share real estate, providing the property complies with state or local laws and any governing homeowner association’s rule and regulations. It is a good idea to talk to a real estate attorney in the state in which you purchase the property first to make sure your property qualifies and is in compliance.

What are the benefits?

Keeping a portion of ownership in case you want to use the property or rent it out

Selling a property that has been sitting on the market for awhile for more than if you sold it to one buyer
Buyers are willing to pay more than market value because they get an appreciable resort-style property that they could not afford on their own to use as a vacation or second home, and the costs of maintaining the property are shared with the other owners.
It’s a hassle free way to own vacation or second home property without the burden of home ownership.

Fractionalizing real estate is a win-win strategy for the seller and the buyer.

The seller gets to sell their property for more than they could if they were selling it to one buyer or investor, and they can still reserve the right to use the property or rent it out. The buyer gets to purchase a luxury property without the responsibilities of home ownership.

Right now is a perfect time to buy a foreclosure property at a discount price and fractionalize it or fractionalize a property that you already own that you have not been able to sell.

 

Posted on August 11, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Marble Falls, Texas

Marble Falls is a small city on the shores of the Colorado River in the Texas Hill Country. The city was founded in 1887 by General Adam R. Johnson, and incorporated in May of 1907. Marble Falls is located 47 miles northwest of Austin and 85 miles north of San Antonio, so it is centrally located and accessible from two large metropolitan areas. Marble Falls is in the middle of the Highland Lakes chain, and after the construction of the dam which created Lake Marble Falls, the marble falls themselves were no longer visible, unless the lake levels were lowered by the Lower Colorado River Authority, which caused them to be visible in certain locations.

Marble Falls, frequently referred to as the Gateway to the Hill Country, was originally founded when Adam Rankin Johnson traveled down the Colorado from Fort Mason to see the “great falls”, as they were called at the time, and obtained land grants with the intention of settling near the falls, until he discovered the certificates were worthless and settled instead in Burnet with his wife Josephine, in 1861. Johnson had intended to help build a great manufacturing community, powered by energy from the falls, but after settling with his wife in Burnet, joined the Confederate army, and was later blinded by a rifle ball in combat.
 
Johnson later was employed by the land office in Burnet for years, where his reputed excellent memory and his son’s help allowed him to overcome the limitations caused by his blindness and succeed in making land deals. In 1887, he finally purchased land in the Marble Falls area, and built a home for his family there.  The home faced south, directly toward the majestic falls, and his family members gave him daily reports of their beauty so he could visualize them as he remembered them.
 
The community later thrived and became a cotton center, known as “The Blindman’s Town”, and Johnson’s home, named Liberty Hall, was later purchased by Orphelia “Birdie” Harwood and her husband George, in the early 1900s, and was later named Harwood house, but is still referred to as Liberty Hall or Liberty House by some. The house was bought in 1946 by Bill and Eunice Hall, and their son, and is now a commercial building, but prior to their purchase of the home, “Birdie”, as Mrs. Harwood was called, was elected mayor of the community, and while teaching at the local school, loaned supplies to one of her students, Lyndon Baines Johnson, who later went on the fame as a political force in Texas and later the president of the United States. Johnson along with his family, is one of the most notable early residents of Marble Falls.

 In 1970, home mail service began in Marble Falls, and Horseshoe Bay, a beautiful lakeside resort replete with a golf course and various water sports, restaurants, and other facilities and activities, was built on the shores of the lake. Lake Marble Falls itself was created in the forties by the construction of Buchanan Dam, along with Starke and Wirtz Dams, and the other Highland Lakes were created around the same time, by damming the waters of the Colorado River. Lake LBJ is also very close to the city of Marble Falls, and two of the dams used to partially create Lake Marble Falls were rebuilt in the year 2000. Earlier, in 1980, a new high school was built to improve the academic performance of the area students, and ten years later, the internet was introduced in Marble Falls, allowing even more access to reference materials for the residents of the growing community.

Today, Marble Falls is an established community.  The yearly Lakefest in August draws throngs of visitors, as do various attractions including numerous restaurants, a movie theater, many R.V. parks, a public golf course called Meadowlakes, and a plethora of gift shops, antique stores, bed and breakfast inns, and a variety of unique local attractions. Marble Falls has a large community of retirees, as well as residents who spend their winters in the town, due to its mild climate. Some of the popular local restaurants include the Blue Bonnet Cafe and Russo’s Texitally Cafe, and Rockhopper’s Family Fun Center offers miniature golf and other games and sports.

If peaceful, rural living, as well as scenic beauty and numerous amenities are your cup of tea, come to Marble Falls and experience the best Texas has to offer!

Posted on August 9, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

How to Handle Homes for Sale Transactions in a Smooth Way?

Buying a home will completely change your lifestyle much, but it really is not desirable to pay your mortgage for a longer period. You must also take into account that being responsible for a house means you need to do some of its necessary measures, which also costs a substantial financial matter of course. Making a decision like buying a home to settle is not just an ordinary decision to make. You need to make sure that you are capable not just for the mortgage but for the maintenance as well or for future renovations if it is necessary. But with Longmont Homes for Sale, everything runs well for the fact that’s the place which all you need in Colorado.

Longmont has City parks that offer a variety of entertainment and recreation opportunities throughout the region. It includes these parks and some of the features with Affoltern, S. Holly Avenue and Judson Street. 5.3 acres, two basketball courts, football / soccer, softball field, four tennis courts, trails, restrooms, a shelter and a playground. Collier Street and Sixth Avenue with 5.2 acres, picnic area, three barbecue pits, playground, toilets, two shelters, volleyball and tennis. The Dog Park, located in the twenty-First Avenue and Francis Street. Dog Park II, located at the airport and St. Vain roads. Dawson, 1757 Harvard St. 12.9 acres, a volleyball court, picnic area, playground, toilets, two shelters, two barbecue pits and two tennis courts. Indeed, there are many things to do that await you when you purchase a house in Longmont Homes for Sale programs.

In addition, people who help make Longmont real estate what it is; is that the city has also defined the commerce, services, and the location of the mountains and the metropolitan area of ​​Denver. Nestled along the Rocky Mountains, it is a beautiful backdrop for the whole city and hiking, skiing, snowshoeing, and more are within walking distance. Longmont real estate listings will guide you all throughout your navigation of choosing your house that will sooner be called your own. Longmont area offering a range of facilities, enabling residents to move and have everything they need at hand. In recent years, Longmont area has grown up with people, businesses and opportunities.

Posted on August 7, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Greenwood Village homes for Sale: Choosing the Right Real Estate Agent in Home Buying

Proper planning is an essential aspect in your preparation for buying a house at Greenwood Village homes for sale because it’s not easy and it involves a lot of money. As you start looking for properties at Greenwood Village real estate, it is important that you carefully analyze it properly because whether you like it or not there are really a quite a few things to consider before taking your first step to buy a property. A few of these are financial plans, the type of property that you’re interested to buy and choosing a professional real estate agent such as Greenwood Village homes for sale to guide and assist you through the home buying process. Choosing the right person or real estate agent is the key to a successful home buying investment because these professional individuals can help you decide in choosing your ideal house. If you’re experiencing having a hard time finding what you need in searching your dream house, why not explore the option of hiring a professional real estate agent like Greenwood Village real estate. Greenwood Village homes for sale are always ready to assist you in the course of finding your perfect location in Colorado.

There certain times that buying a property makes you agitated, this is because you don’t have basic knowledge about it. In making decisions for your choice, the most effective thing to do is just simply to do it step by step and following the exact guidelines in the home buying process. One of the important steps also is to employ a good real estate agent like Greenwood Village real estate that has the expertise to assist you in the procedure of home buying at Greenwood Village homes for sale. By doing this, it will surely lessen your burden and can help you in preparing your financial plans after this you can start to select the best options suggested by the realtor. By doing the right procedure buying your residential home would become easier if you have selected the option of hiring a professional house dealer that handles this task. Once you found out that realtor you hired has a vast experience, most likely this would be a great advantage on your part because they can assist you on a wide variety of options to think of. In hiring the right real estate agent choose carefully and don’t rush, you have to consider some important matters so that you can avoid the pitfalls of home buying mistakes. Here are some of the helpful suggestions that can help you while choosing your ideal house in Colorado.

The Realtor’s Reputation Aspect

The best and safest thing to do is to find out the reputation of the real estate agent if he or she can be trusted or has a good personality and do some investigations if this person has no traces of complains and negative feedbacks from the past. In the summation of your investigation and findings, you discover that this person has a good business running experience and is very potential then it means that you found the right person to help you in your home purchase venture. In determining the reputation of the realtor, you have to Interrogate the person ask him about serious questions regarding his or her work experiences and the residential locations he had sold out with his previous clients. Asking questions like this will give you some valuable information if this agent is reliable and you will know if he has acquired many clients already in the past. To make sure, you can also call or contact his previous clients and find out their feedbacks and ratings about the agent’s performance. By doing this, it enables you to know that you had work with right real estate agent. If you found out that this agent has good performance and has positive feedbacks, then it simply means that this realtor is knowledgeable enough and most likely can perform the job well and you can assuredly rely on him.

Posted on August 5, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Crucial Steps in Obtaining a Home Mortgage Loan

Everyone knows that buying a home isn’t easy or simple. One of the things that make it complicated is the part where you would have to apply for a mortgage loan to finance your purchase. Once you’ve gotten over this part, you can proceed to the next step, which is the fun part where you get to look for your dream home. But first, here are the things you need to do when it comes to getting a loan.

 

Step 1 – Assess your finances

 

First, you need to assess your finances. Look at how much you’re earning and spending every month. Consider your assets and liabilities, as well. This will enable you to figure out how much of a monthly payment you can afford to pay  every month. Don’t forget to take into account the stability of your job. It is also a must to fix low credit rating prior to loan application to get a better deal.

 

Step 2 – Save up for the down payment

 

Give yourself time to save up for the down payment before taking on a loan. The bigger the down payment you can make, the lower the amount of the monthly payment and overall cost of the loan would be. At least, strive to reach 20 percent down payment so that loan repayment wouldn’t be that difficult.

 

Step 3 – Get quotes from various lenders

 

After that, the next step would be to get quotes from various lenders. Banks are not the only choices. You can also consider borrowing money from thrift institutions, mortgage companies and credit unions. All these lenders would give you different rates, so it is best that you get not only a few, but many quotes to study.

 

Step 4 – Compare and study rates carefully

 

When comparing the rates, you just don’t look at the overall cost of the loan or the monthly payment. You should not forget to include the interest rates and all the other fees, especially the hidden ones, which may cause the loan to bloat. Determine also whether the interest rate offered is fixed or variable. It’s always better to go for the fixed rate, especially if the current interest in the market is low, so you can plan your repayments more efficiently.

 

Step 5 – Gather the requirements

 

Once you’ve chosen a reputable lender that will give you the best possible deal, work on gathering requirements. Requirements vary from one lender to another, but these would generally include credit reports, proof of income, identification documents, and so on.

 

Step 6 – Apply for the loan

 

Now that everything is in order, you can apply for the loan. Fill out the application form and submit the requirements. Wait  a couple of days for the approval of your loan.

 

After you’ve secured a loan, you can now check out your options on properties. The first factor you have to consider is, of course, the location. In the United States, Colorado is one of the best choices for residential living. Study about the Boulder real estate and Denver real estate to get to know more about these.

Posted on August 3, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Highlands Ranch Homes for Sale ? Reminiscing the Origin of Highlands Ranch, Colorado

In case you are still unaware, there are still a number of unincorporated communities in different states of the country. Highlands Ranch, which is considered as a bedroom community of Denver is an unincorporated community in Douglas County, Colorado, United States.And among the other communities of the same status, Highlands Ranch is one of the most populous with residents counted to be 70,931 for the year 2000.

If you want to look into available Highlands Ranch homes for sale listed in quality Highlands Ranch real estate listings, it would be worthy to find out more about the place. In your task to learn more things about this community, it would be ideal to begin with its origin. This article will provide you with some excerpts on the history of Highlands Ranch, Colorado.

The Roots of Highlands Ranch

The first residents of Highlands Ranch are nomadic tribes such as the Ute, Arapaho, and Cheyenne tribes who belong in the population of native Americans. After sometime, a French explorer named Rene-Robert Cavelier, Sieur de La Salle claimed the entire Mississippi River basin for France and since the place now referred to as Highlands Ranch was part of it, naturally it was also claimed. It was named as part of Louisiana  and was acquired by the United States from France’s claim in 1803.
Stephen Harriman Long, a US engineer, military officer and explorer set off in this area in the early part of July 1820, which marks the first Highlands Ranch exploration by explorers of the European and United States descent.

No permanent settlers choose to move in this area until 1870 because there is no water in this part. It was Curtis H. Field who first legally settled here because he bought the land near the west side of Sta. Fe Drive on the 25th of February, 1870.

John Springer purchased approximately 23,000 acres of ranch land from different people who have settled in the area because he wants to turn the place into a cattle ranch. It was also him, who built the now very much recognized Highlands Ranch Mansion.

More and more people moved to Colorado in the later part of the 19th century until the early part of the 20th century. Although, the city of Denver blossomed at this point, Highlands Ranch remained to be farms and ranches and most people go to Littleton to buy things that they need.
In 1937, the land owned by Springer was purchased by Lawrence Philipps, Jr and was later on bought by Marvin Davis, when he died. The Mission Viejo Company bought Highlands Ranch in 1978 and due to the expansion of Denver, they wanted to build another planned suburb in the northern part of the Douglas County similar to how they planned Mission Viejo, California. This marked the start of laying plans beginning with a number of major streets, several schools, public library, and a number of recreation centers including a town center.

Private housing developers started to avail large parcels of land and this marked the start of creating several Highlands Ranch homes for sale featured in segmented communities in 1981.

The first public school , Northridge Elementary opened in 1982 followed by the Highlands Ranch Jr/Sr High School in 1987, which was later on named as Highlands Ranch High School in 1991 simultaneous with the opening of the first public library and the building of the nearby Cresthil Middle School.

Highlands Ranch Homes for Sale – The Start of the Booming Community

In 1991, which marks the 10th year of this community, residents reached 17,000 and in the succeeding years, Highlands Ranch continuously grew remarkably with the further development of primary establishments and the continued efforts of many housing developers to provide quality homes that helped sparked the Highlands Ranch real estate industry. Bit by bit different companies have started to set foot and establish their headquarters in this place as more and more families continue to move in this pleasant community until the population was recorded at 86, 000 in 2006.

At present Highlands Ranch is still steadily growing although it is still considered as a bedroom community of the city of Denver.

Posted on July 30, 2011 by admin | Posted in Colorado Real Estate | Leave a comment

Big Brother is Watching You! New Bad Legislation Coming your Way

Well, it seems that with everything you do right, there’s always someone else doing it wrong, do it badly, or doing it illegally. Enter Big Brother… the “well–intentioned” legislator who wants to get re–elected by passing a law that protects the innocent from bad people or from their own stupidity.

What am I talking about? Several states have passed or are about to pass a rash of laws that will make being a real estate investor a very difficult vocation. While I do understand the need for SOME guidelines and disclosures from the government to make sure that people are making informed choices and are protected from bad people, these laws are THROWING OUT THE BABY WITH THE BATH WATER and will likely cause financial harm to the real estate markets in those states.

The following is a review of some recent laws and bills that are pending or have passed.

IT IS IMPORTANT THAT YOU READ THIS EVEN IF YOU ARE NOT IN THESE STATES. When it comes to laws like these, it’s “monkey see, money do”, resulting in the domino effect. Your state can be next, so pay attention. Visit you state’s website and review pending bills. Form a local political action committee. Be involved in the political process. If you are in one of these states, call, fax and email your representatives. Email all your friends and business associates. Picket in from of the state buildings. Contact your local news people. If you sit silent, you have no right to complain!

Texas – Senate Bill 629 – PASSED

This bill is an amendment to an earlier law passed in 2001 that regulated installment land contracts. The current law calls these “executory contracts” and requires certain disclosures, most of which are not big deal. However, the penalties for non–compliance are SUBSTANTIAL and bear no relationship to the supposed harm the consumers would bear if the disclosures are not followed. It’s basically a windfall for buyers who find a good lawyer to hammer a technicality that most investors are not aware of.

SB 629 takes it up a notch classifying lease/options as “executory contracts”, the same as land contracts. This is DEADLY for investors who want to keep the tax benefits ownership when selling on lease/option and taking advantage of capital gains rates. If Texas calls a lease/option an executory contract, it makes it a SALE, thus having a negative tax impact on the seller who may want to defer his gains through a 1031 exchange when the tenant exercises his option to purchase.

And, we’re just getting started…

The bill further disallows an investor from selling a property by lease/option OR land contract if the seller has an underlying loan on the property without that lender’s written permission. Since few, if any, investors have free and clear properties, this would effective ELIMINATE the process of buying a property, financing it, then reselling on a lease/option or land contract.

This is BAD because it hurts not just investors but ANYONE who has a house that they want to move. Builders often sell properties on a “rent–to–own” basis, and now will be prohibited from doing so if there is underlying financing on the property. What if you do a fix–and–flip, but are unable to resell the property for cash? Maybe the lease/option would be the solution so you can cover your mortgage payments while still getting a sale? It won’t be possible in Texas if this bill passes.

And, it gets WORSE!

SB 629 states that you cannot sell a property under an executory contract unless you have title to the property. That means you cannot do a sandwich lease/option in Texas – PERIOD.

The bill also has a bunch of disclosures and regulations on lease/options, none of which are objectionable.

NORTH CAROLINA – HOUSE BILL 725 – (STILL PENDING)

House Bill 725 is a push from the North Carolina Attorney General’s office, which has been on the rampage against investors for some time. The AG’s office claims to have “hundreds of complaints” from people who were hurt by investors who bought properties “subject to” existing mortgage loans, then defaulted. I find it very hard to believe that more than a few complaints were ever filed. From the way the bill is written it’s clear they just don’t understand how these transactions work.

This bill is targeted against the investor who buys a property subject to an existing loan, the resells the property by lease/option or land contract to a consumer. The bill requires a number of disclosures to all parties involved, some of which are fine and some of which are absurd and irrelevant.

The proposed bill requires the seller to get express written permission from his lender before transferring a property subject to an existing deed of trust, which will never likely happen. And, even if it were possible, the time frame it takes for a seller to get his lender’s permission while he is in foreclosure is wholly impractical. This will hurt the seller who is in foreclosure and seeking to simply “dump” his property for whatever he can get. If the investor can cure the seller’s back payments and/or negotiate a short sale with the lender, everyone walks away happy. If a seller has no options, he is going to walk away from the property and the bank will have another REO. Everyone loses.

]]>

Now, admittedly, some dumb or unscrupulous investors have taken deeds from sellers, promised to pay, then defaulted, leaving the seller with the short end of the stick. The right thing to do is require disclosures so that the seller enters into the deal KNOWING THE RISK. Adjustable rate mortgages are very dangerous, too, which is why R.E.S.P.A. requires disclosures. The government didn’t go off the deed end and outlaw ARM loans.

Curiously, the bill exempts real estate agents from the law, which means a licensed agent could theoretically buy a property subject to an existing deed of trust without lender permission and without the same disclosures as a non–licensed investor would be required to give. The suspicious side of me thinks that the real estate agents are also behind this bill, trying to corner the market on investing or requiring an agent’s assistance on these deals so they can profit.

And, the most laughable portion of the bill addressed people like me, requiring all educational seminars to include a copy of the new law in our materials. I suppose the drafters of this bill failed to examine the first amendment, which prohibits the government from restricting the content of free speech.

Read the bill here: House Bill 725

MARYLAND – HOUSE BILL 1288 – (PASSED)

House Bill 1288 is aimed at foreclosure investors dealing with sellers in foreclosure.

The bill targets two types of activities, “Foreclosure Consulting” and “Foreclosure Purchasing”. A “consultant” is someone who apparently charges a fee to give advice to the homeowner and/or help him to negotiate with his lender or get a new loan. A consultant must disclose his services in writing and offer a right to cancel that agreement at any time. The consultant cannot buy the property from the homeowner, nor can one of his “associates” (not clearly defined). The foreclosure purchaser must also give certain disclosures in writing, including a ten–day right to cancel the contract. This means you cannot get a deed without giving a homeowner a 10 day “cooling off” period. This is not necessarily a bad idea, but it may prevent a homeowner who is fighting a deadline from doing a last–minute sale. No matter how long the foreclosure process, most homeowners wait until the last week before taking action.

The final part of the bill deals with a foreclosure “reconveyance”, that is, a deal wherein the homeowner stays in the property under a lease, reserving the option to repurchase the property from the buyer at a later date. I don’t particularly like these kinds of transactions, because they generally fail and they can sometimes be reclassified by the courts as disguised loans. On the other hand, many homeowners facing foreclosure have no other means to save their property, and in a free market should have the opportunity to engage in a transaction which allows them to try to save their home based on intelligent, informed decisions. This law would require the investor to give the homeowner 82% of the proceeds of the sale if the homeowner cannot repurchase the property, which makes it unfeasible for any investor to even bother trying to help the homeowner. In short, such a law would hurt more homeowners than it purports to protect.

The 22 pages of requirements are very technical, so you should review it in detail with a local attorney. House Bill 1288 – Full Text in PDF Format

COLORADO – SENATE BILL 06-071 – (PASSED)

The Colorado bill is being pushed by the Attorney General and the Colorado Public Trustee’s Association (Colorado’s foreclosure process involves a public official, the county Public Trustee). This bill is a watered–down version of the Maryland Bill, which will also regulate “foreclosure consultants” and “equity purchasers.”

Through lobbying efforts, we have gotten the ear of the AG’s office to get some good amendments to the bill that should result in a sensible piece of legislation. Like the Maryland bill, the Colorado bill prohibits a “consultant” or one of his associates from buying a property in foreclosure from the homeowner. The bill, as amended, better defines a “consultant” so as not to confuse such a person with a “purchaser” who will be buying the property, not offering the homeowner “advice for money”. The bill is still in discussion and we are hoping to further refine some of the “reconveyance” provisions to make it fair for investors and protect homeowners from predators.

The bill also adds criminal penalties for violation of the law, which is certainly scary for the average investor who does not understand how to comply. If you are in Colorado expect a seminar this Summer to explain all of the nuances!

ILLINOIS – SENATE BILL 2349 – (STILL IN COMMITTEE)

The Illinois law is similar to the Maryland Bill, but takes it up a notch. The proposed bill would also apply to properties “in distress”, that is, homeowners who are 90 days late, but no foreclosure has been filed. This is extremely dangerous because there’s no public filing until the foreclosure action has started, thus no way to know who is in default! Also, the Illinois bill would require an investor to pay off the seller’s liens before doing a foreclosure reconveyance, that is, you can’t take a property subject–to the existing loan and sell it back on a lease/option. However, you are not prohibited from taking subject–to and selling it to a third party.

The Illinois bill also contains the “82% of proceeds to the seller” provision, which effectively kills any intelligent investor from getting involved. Why would you want to buy a property and risk the homeowner defaulting, filing bankruptcy and hauling you into court over 18% gross profit? On the other hand, I can see the argument why it is patently unfair for a homeowner to lose a property with 50% equity for non–payment of one month’s rent, but these cases are rare. In any event, a court always has the equitable power to call a contract “unconscionable” where it sees fit. Using an arbitrary number like 82% may not be feasible when the local real estate economy is in the toilet and banks are selling properties at 60% of value or less.

In short, the government should leave the free market open for people to make deals that they wish to make, punish those who take unfair advantage, and require mandatory disclosures so people can make informed choices.

CONCLUSION

I have mixed feelings about these new bills… on the one hand, they are rash responses the side effects of a strong real estate market, discouraging investors from getting involved in deals and resulting in more properties going to the bank.

On the other hand, some of these bills provide “safe harbors” for investors that follow the letter of the law. Since there are really few laws that relate to “creative” real estate investing, providing detailed rules make litigation by a disgruntled seller or tenant/buyer more difficult. It’s hard to say, “you didn’t disclose X, Y & Z” when in fact the law only requires “A, B & C”.

If investors in these states MAKE SOME NOISE by contacting their state representatives right away, a modified version of these bills may get passed, making everyone happy. And, if something comes up in your own state, get involved in the process before a bad piece of legislation puts you out of business.

I highly recommend doing the following:

1. Get involved early in the process. Find out who is pushing the bill in your state and why. Contact these groups and offer to assist in the legislative process by discussing practical effects of these laws and other alternatives.

2. Get other groups involved in the process. Community leaders, such as real estate investor associations, mortgage brokers associations, title companies, boards of realtors, etc. Remember, the banks do not want these foreclosure properties in their inventory, so they need investors bailing out properties before they go to sale.

3. Speak to your local representatives. State legislators are generally accessible, to call, fax, and even visit their offices. Let them know you are a voter in their district that has concerns.

4. Speak to the Press. The media is pushing stories about how people in foreclosure are losing their homes, but there’s two sides to every story. Talk with local newspaper, radio and television personalities. Write letters to the editor of your paper (click here for a good example).

5. Hire a lobbyist. The best way to get access to legislators is the good old fashioned way – MONEY. Lobbyists (also known as “Public Relations Experts”) have connections with different law makers and can get you an audience to hear your issues. They can find out who is for and against particular issues, and who can either amend or “kill” a particular bill being presented. On the national level, the National Association of Responsible Home Rebuilders and Investors (www.NARHRI.org) has been active in about 8 states.

Click Here for more info for Big Brother is Watching You New BAD Legislation Coming Your Way

Posted on July 28, 2011 by admin | Posted in Colorado Real Estate | Leave a comment
Page 4 of 46« First...23456102030...Last »

What client say's

"Sullam rhoncus feugiat qeniibh, fermentum sed, lobortis ac, pellentesque ut, velionec pretium felis eget ultrices rhoncus,lacus convallis tortor, at mollis erat risus ac duionec mattis Aenean nulla nisl, dictum semper, dignissim quis, tempus in, magna. Nullam elit massa, ornare quis, auctor non, molestie quis, felis.

- Leslie Anne M.

What client say's

Name of the Company
1090 25th Place, Bradenton,
FL 34203 United States
Telephone: +1 123 456 7890
E-mail: email@companyname.com