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The Growing Market of Marshall Reddick Real Estate Network

admin — Mon, 27 Feb 2012 01:49:13 +0000

Ever since the Marshall Reddick Real Estate Network has been established and found in 1982, it has already been making a lot of progress when it comes to creating its solid base of clients, including its network of connections with the real estate industry. When it began back then, the said group was only pushing its effort by providing seminars and workshops for people to know the ins and outs of real estate, urging them to have the courage to invest in properties and other assets. Nevertheless, the movement began earlier in 1979 where Marshall Reddick had been going around different colleges and other schools, offering his services into promoting real estate investing, sales, and career growth.

It was never an easy idea at first since there are not too many people that are secure enough to invest in something that has not much gain or prominence at the time. However, the Marshall Reddick Real Estate Network has progressed very well due to the foresight of its owner that the said industry will bloom in the years to come, even promising much gains as buyers have placed their money, even growing manifold for just a few years. With his vision, he has created the said networking group with the desire of not just giving opportunity for buyers to sell properties, but also to alleviate financial situations wherein people are becoming hopeless due to their employment or business circumstances.

As the market grows in age and with the number of members that is working along within the group, the Marshall Reddick Real Estate Network has been providing different services for various needs of many individuals. One of them includes empowering the poor with the knowledge and confidence that a real estate agent should have, in order to establish a marketing portfolio that can be easily recognized and appreciated in the real estate market. They also assist individuals with providing comprehensive goal setting into obtaining a property, selling it to the right client, and gaining profits that can guarantee a better life for families and needy persons.

Because of all this success, Marshall Reddick Real Estate Network even created a special group of serious investors wherein they are given enlightenment on the wealthier side of the real estate industry wherein buying and selling properties are given the right channels for increase, profit, and growth. The Millionaire Club, as the name suggests, is a group wherein investors can gain not just thousands of dollars with the real estate venture, but also even amassing millions due to the application of the right knowledge when it comes to dealing with sales and boosting property portfolio for interested parties.

Understanding Florida Real Estate Taxes

admin — Tue, 31 Jan 2012 00:00:59 +0000

Understanding the real estate tax laws in Florida can be tricky-there are several different factors that can affect the rate at which you’re taxed. The size of your property tax bill depends on two main factors-the assessed value of your property, and the tax rate (expressed as tax dollars paid per thousand dollars of assessed property value) for each local government body in your area which taxes property. For example, the property you purchase may be subject to taxes by the County, the School Board, the City, and various designated district organizations such as the Hospital District and the Water Management District. You will also be affected by whether or not you live in a Community Development District (CDDs)-these have extra tax regulations that will affect how much property tax you pay. There are other considerations, too, such as Homestead Exemptions and the “Save our Homes” amendment, which will limit the amount of property tax you pay.

If you are buying property in Florida, or considering relocating to Tampa, Florida, understanding property tax laws is particularly important, because the amount of property tax that is payable is subject to change once you make the purchase. Property values are reassessed each time a property changes hands, and the assessed value influences how much property tax you pay. As a rule, the assessed value of a property you buy will typically be around 83% of the sale price of the home. Note that with home prices in many areas of Tampa on the rise, it’s particularly important to get as accurate an estimate as possible before buying to avoid any unpleasant surprises in the future.

County Taxes

Your tax rate varies depending on which county you live in, and which part of the county you live in. This is because within a county, certain regions may be incorporated, and other regions may be unincorporated. Those regions which are unincorporated have slightly lower property taxes. For example, unincorporated Tampa regions such as areas within Lutz and New Tampa are subject to slightly lower property taxes than incorporated regions such as the City of Tampa and Temple Terrace.

Community Development District Tax

If you live in a Master Planned Community in Tampa or are considering relocating to one, your property will be subject to Community Development District Tax. Developers use this tax as a means of sharing the cost of land and community development among the individual lots and homes in that community. This tax enables the development of Tampa communities with additional amenities such as parks, community centers and other recreation areas that make these areas attractive and pleasant places to live. These taxes are usually payable for a fixed amount of time-up to twenty years-after which the tax no longer applies. Payment of this tax is tied to the property, not the owner. This means that if you purchase a property in a CDD, you as the new owner will be required to pay the CDD tax. The length of time the tax is payable does not change if the property changes hands. So if, for example, you purchase a ten-year-old property in a community with a twenty-year CDD tax, you’d be paying the bond portion of the tax for another ten years.

If you’re considering purchasing property in such a community, it’s important to find out how much the CCD tax is, and how many years of payment are remaining. Note that CDD taxes vary based on the amenities available in the community, and that there may be other fees associated with the property such as those required to maintain community common areas. If you are the owner of a CDD property you will likely be subject to paying annual fees for the maintenance of common areas even after the bond portion of the tax has been paid in full.

Homestead Exemption

Homestead Exemption allows all Florida homeowners who are legal residents of the state to deduct $25,000 from the assessed value of their primary residence, meaning that the taxable value of primary residences is reduced. There are other exemptions which apply to other groups of residents-these include disability exemptions, exemptions for senior citizens and veterans, and an exemption for those who are legally blind. To be eligible for an exemption in any given year, you must take possession of your home by December 31 and must apply for homestead exemption by March 31st the following year. Exemptions are not granted automatically-you must apply for any exemption you would like to receive, and you are subject to approval based on certain requirements, which depend on the type of exemption you are applying for. If you qualify for a Homestead Exemption, you may also qualify to defer part or all of your property taxes for any given year. For more information, see your tax assessor’s office.

The Florida “Save Our Homes” Amendment

If a homeowner qualifies and applies for Homestead Exemption this guarantees the property’s assessed value cannot rise more than three percent each year. This law is a result of the “Save our Homes” amendment, which states that annual property assessment figures cannot exceed the lower of 3% of the prior year’s assessment, or the percent increase in the Consumer Price Index. This amendment protects existing homeowners, but note that if you purchase property, it will not be protected by “Save our Homes” automatically-when the property changes hands, the assessed value cap is lifted, and you do not qualify for protection until you obtain a Homestead Exemption. However, once you have obtained a Homestead Exemption, you will automatically be protected by the “Save our Homes” amendment.

The “Save our Homes” amendment means it is particularly important that you not rely on existing property tax values if you are considering purchasing any home in Tampa or within all of Florida-a protected home has an artificially low assessed value, and depending on the region in which you purchase and the current real estate market, the assessed value may increase sharply once the property has changed hands.

Commercial Real Estate

admin — Tue, 31 Jan 2012 00:00:46 +0000

Commercial Real Estate is commonly defined as real estate with the potential to generate income for the owner of the property. Commercial real estate investments can be broken down into basic asset classes, each with unique set characteristics that address a wide range of investor needs.

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Commercial properties are generally classified by type of use, such as Residential Rental, Office, Industrial, Hospitality, Land, and Retail.

Unlike stocks or bonds, investing in commercial real estate gives investors the opportunity to trade up and reposition a portfolio of investment properties while deferring capital gains taxes through the proper use of a 1031 exchange. This allows an investor to use their gains to build greater value over the course of their lifetime while taking advantage of changing markets.

Each classification of investment properties has specific set of qualities that dictate their potential risk and return. This article will focus on Residential Rental/Housing properties. While the specific details vary, the same approach can be used on all investment properties.

The basic appeal of Residential Rental or Multi Family properties is that we all need to live someplace, regardless of what the economy is doing. Performance of Multi Family investments is driven, as all markets ultimately are, by supply and demand.

Demand for Multi Family is sensitive to expansion or contractions of local population and affordability and desirability of other forms of housing, be it condominium or single family residences. As demographics change (the socio-economic climate of a location) both supply and demand for Multi Family is affected.

For example, over the last several years interest rates have been at historically low, making ownership in single family homes and condominiums attainable to many renters. This has put upward pressure on the supply of single family homes and condominiums while putting downward pressure on rents. As interest rates have risen we are seeing the opposite occur making Multi Family attractive commercial real estate investments because of potential future rent increases.

Some points for consideration in evaluation of a Multi Family investment are:

Location:

The type of neighborhood is a major factor; is it established or new? If the demographic includes children then proximity of schools is significant. Over all, access to churches, synagogues, and convenience of amenities such as shopping and entertainment are major considerations.

Demographics:

Who lives in a particular area and how likely are they to rent? The “who” in the equation is governed by the type and location (commute time) of jobs in the area. The level of income governs the propensity to rent. Generally, the more affluent the less likely renting will be the choice. However in areas such as New York and San Francisco where residential pricing has skyrocketed, many residents don’t have an option and renting may be the only realistic choice.

Economic Cycles:

Most Americans prefer to own and economic cycles clearly influence our ability to do so. Recent history illustrates this concept as low interest rates allowed those who traditionally rent to become home owners. Increased demand for ownership sparked a boom in converting apartments to condos (condo conversions), effectively decreasing the supply of Multi Family properties for investment. As interest rates increase, demand for ownership decreased, forcing the converted apartments back into the rental market.

Market Supply:

Vacancy rates, competing projects, current projects under construction, zoning and possible future zone changes in addition to land available for future competing projects are major factors affecting market supply.

Characteristics of the Actual Site and Building: Proximity to transportation, safety, noise factors, age of building and unit mix (demand factor) are also a significant part of an investor’s evaluation.

Younger investors are attracted to Multi and Single Family investments for the simple reasons that they are most familiar with residential properties (we have all lived in some form of residential property) and the low financial barriers to entry (10% to 20% down payments with generally lower interest rates on debt).

When considering Residential Rental investments it is important to take into account the potential impact on the quality of life of the investor. Historically, successful investors have built their wealth with residential investments; adding value by managing the property themselves. While many younger investors welcome the opportunity to build their net worth by managing rental properties, older investors frequently find the management aspect of Residential Rental investments an unacceptable burden.

It is common for investors to accumulate significant wealth by investing in Multi Family properties in the first half of their lives and then switch to other, less management-intensive forms of commercial real estate as they grow older.

Examples of commercial real estate investments requiring little or no management are triple net lease single tenant properties (Walgreen Drug Stores for example) or Tenants in Common properties.

By using the 1031 exchange investors can diversify their commercial real estate holdings, thus reducing risk, eliminate management responsibility and not infrequently increase their cash flows.