San Diego Real Estate

Issue #195

In This Issue

1. Welcome / This Week's Special Offer

2. Gary's Real Estate Seminars

3. Homebuying Question

4. Homeselling Question

5. Investing or Financing Question

6. Hot Properties: New Listings BEFORE They Hit The Market

7. Thank You For Your Referrals

Welcome / This Week's Special Offer

Gary's Real Estate Seminars

FREE SEMINAR February 1 / Wednesday 6-8PM
CONDO-BUYING FOR SMART PEOPLE (Not Dummies)
At "Forum Hall" at the UTC Mall in University City
CLICK HERE for flyer, more info, & free sign-up

- Why people say RIGHT NOW may be your golden window of opportunity to buy a condo at the LOWEST PRICE
- Pro's and Con's of owning a condo
- How to find motivated--even DESPERATE--condo sellers
- Should you buy new construction, a conversion, or resale?
- How to get a FREE Inspection & FREE appraisal when you buy
- Key condo documents explained: CC&Rs, Rules, Bylaws, etc
- Condo vs. Townhome vs. Co-op vs. House w/ HOA
- What do you REALLY own when you buy a condo?
- How to get the best loan for your condo
- Easy way to find out if a condo complex has costly problems
- 4 Condo myths that could cost you
- How to buy a condo ZERO DOWN
- Rent vs. buy? You may be surprised!
- 5 Questions You MUST Ask Before You Buy ANY Condo
- Monthly condo fees: good deal or waste of money?
- Condo situations, problems, and complications to avoid
- Why condos make an excellent 1st investment
- Buying a condo for your college student
To RESERVE YOUR SEAT at this free seminar now, click here or call (858)457-KENT!

FREE SEMINAR  (February or March date to be determined)
"Discover Exactly Where I'm Investing MY Money In 2006"
...Positive Cash Flow Apartments With Appreciation & ZERO Management
At "Forum Hall" at the UTC Mall in University City
CLICK HERE for flyer, more info, & free signup

Want a hands-off real estate investment with consistent positive cashflow?  Sound too good to be true?  I've found a great investment opportunity that I'm personally investing in, as have several of my clients.  If you have $100,000 to $5,000,000 to invest and want to find out more...
To RESERVE YOUR SEAT at this free seminar now, click here or call (858)457-KENT!

Homebuying Question

"Hi Gary.  It’s been about 10 years since my wife and I bought our home.  We recently met with an agent to talk about finding a bigger home.  When we were done, he asked us to sign a Buyer-Broker Agreement.  I’ve never heard of this.  What do you advise?"
 

***ANSWER:
A "Buyer-Broker Agreement" outlines how you and your agent will work together as you look for a home.  It commits you to work exclusively with that agent, usually for 3 to 6 months. 

Agents prefer these Agreements because all too often they devote blood, sweat, and tears serving a client, only to have them buy a home through another agent at the last minute.  Buyer-Broker Agreements are growing more common and many better agents won’t work with you without one.

The benefits to you are:
-  The agent should work harder for you, knowing you’re a loyal client and his time and effort won’t be wasted. 
-  Agents call committed clients when the best homes and values come up.

The drawback is:
-  You may commit to an agent who doesn’t work out.

Should YOU sign a Buyer-Broker Agreement? 

It in effect turns you from a “customer” (someone who is SOLD to) into a “client” (someone a professional REPRESENTS).  If you feel you’ve found a skilled, hard-working agent who’ll devote time to you, I think you’ll benefit.  I recommend signing for 3 months maximum unless you have a cancellation clause.

OUR POLICY:

We give our clients the option of signing what we call our "Buyer Representation Agreement".  For clients who do and also use our preferred lender, they get three added benefits:

-  a FREE home inspection (apx $300 value)
-  a FREE appraisal (apx $350 value)
-  access to many homes NOT on the market. 

Homeselling Question

“My husband and I are planning to sell our large 2-story home in University City.  We’re in our 70s and don’t want to do a lot of fixing to it.  Our daughter’s friend who is an agent told us to just sell our home ‘As Is’ and then we won’t have to fix anything.  Will that work?” 

***ANSWER:
Yes, BUT…

Right or wrong, marketing your home "As Is" broadcasts a message to agents and buyers that your home has real problems that you don’t want to deal with.  And that results in lower offers and some people avoiding your home entirely. 

Plus, it’s almost impossible to legally bind a buyer to buy “As Is”.  So why bother?  I suggest you do NOT take that agent’s advice as it’ll cost you tens of thousands of dollars and a lot of frustration.

Here’s what I advise my clients:

Making a few repairs is just a normal part of selling a home today.  When we get the buyer’s repair request, we’ll look it over.  Is it reasonable?  Are you getting a price you're happy with?  Would the next buyer likely ask for the same repairs? 

Investing or Financing Question

“I've owned apartments in San Diego for 40 years and I’m tired.  I'm 71 and want out of being a property manager.  My wife and I own a 7-unit apartment complex in Normal Heights.  Any ideas on how to sell it without paying a lot of tax?"

 ***ANSWER:

Here are SIX ideas for you:
1. Keep it and hire a manager. 
This obviously isn’t selling it, but it gets you out of most of the management.

2. Sell and pay Uncle Sam. 
See your tax professional to determine how much you’d pay in tax.  Capital gains tax rates are still at historic lows (15% fed, 9.3% state), but you’ll pay a higher rate on the portion called “depreciation recapture.)

3. Do the tax two-step.
First, do a 1031 exchange, selling the apartments and trading them for a home you’d like to live in.  Rent that home for at least a year so it qualifies as a valid exchange.  Then sell your current home, defer up to 500K (250K for singles) in gain, and move into the rental house.  Result: you’ve sold the apartments, hopefully own a nicer home, & potentially paid ZERO tax.

4. Exchange into a "TIC", or "Tenant In Common" property. 
A recently popular real estate investment vehicle.  You buy a % ownership of a flagship commercial property with professional management.  Your main job is cashing your check every month.  To find out more, call me at 858-457-KENT and I’ll refer you to a professional who handles TICs.

5. Consider a “Capital Gains Bypass Trust”
This creative yet legal approach can be very beneficial if you owe little or nothing on our property.  I don’t know enough about it to explain it to you, but I can refer you to someone who does.

6. The Phoenix Apartment Partnership
One of our seminars called "Discover Exactly Where I'm Investing MY Money In 2006...Positive Cash Flow Apartments With Appreciation & ZERO Management” is all about this option.  For more info, call me or click here.

 Hope that helps you.  Please verify the above with your tax professional.

Hot Properties + New Listings BEFORE They Hit The Market

THIS WEEK'S FEATURED PROPERTY!
	Beautiful Private Vista Home Custom & private family home nestled on 1/2 acre lot! Offers gorgeous panoramic view, large master bedroom suite and much more! Square footage 3,024 BR/BA: 4/3 Price $759,000 - 789-000
View more beautiful listings online right now.

"COMING SOON"
(Click Contact Me to be contacted BEFORE these properties hit the market!)
- Clairemont - Cute 2BR townhouse-style condo in the $300's. More info to follow...Contact Me
- Pacific Beach - Large 5BR/3BA house on culdesac. Has family room, bonus room, 2 FPL, 3-car garage, & more! Price TBD Contact Me
- Serra Mesa - 3BR/2BA home w/ dbl-garage on dead end street.  Should be just over 500K+.   Contact Me

- SOLD/Carlsbad - PROBATE SALE! 1500 sqft fixer house w/ valley views. Quiet street. Priced BELOW MARKET @ $615,000. Contact Me

Thank You For Your Referrals

GaryK@GaryKent.com -- www.GaryKent.com