Even though Facebook turned off ads for real estate agents to attract new buyers and sellers, the platform is a prime opportunity for you to drum up business. Below you’ll find 12 Facebook marketing strategies you can use to grow your leads funnel of home buyers and sellers. [Read more…]
Everyone in real estate just sits back and collects money from property sales. Well, that’s what everyone thinks until they walk that proverbial mile in the shoes of a real estate agent.
The grueling daily agenda of a real estate agent is bound to change anyone in the industry’s perspective. Don’t worry; you’re not the only one dangling over a fence, in the middle of the day for a house showing.
Nothing is more wildly inaccurate than claiming real estate agents have it easy. They don’t know about all of the unique struggles you face and even if you explain it to them. They still wouldn’t get it.
There are some things only a real estate agent could understand.
In the paperless world, your job is so out of touch. All day, every day you’ll be running that scanner like it’s 1999. Don’t forget, you’ve got to file and carry many copies of those forms on your person.
There’s nothing like trying to negotiate to someone who is offended by your offer. Chances are you’ll be spending a lot of time explaining yourself in an effort to bring down hostility.
Every once in a while you’re going to come into contact with some strange folks. Such as those who don’t have emails or cell phones. Luckily for them, you’ll do whatever it takes to touch base!
Curious about what a title company actually does? No problem, we’re happy to help with an answer.
A title company does three things for home buyers:
Ensuring a property’s legitimacy is an essential step to protect you from any legal issues associated with the property. A title company will perform the title search, which is the research of public records to determine legal ownership of the property and any existing claims on that property.
Besides researching the property and transferring the title from the seller to the buyer, a title company will also offer insurance.
There are two types of title insurance: owner’s insurance and lender’s insurance. Both are to protect the parties involved from legal fees and claims that may arise over the property. You will likely pay for the lender’s insurance upon closing on the house and may also need to pay for the owner’s insurance.
When you are ready to close on a home, the title company is responsible for handling and transferring the title. They may also handle any escrow accounts necessary to complete the closing process. [Read more…]
Ready to get your home inspected for sale? Or maybe you’re about to purchase a condo and want to know what to expect. This guide to frequently asked questions will help you with all things home inspection!
Home inspections can cost from $200-$500. The price depends on the home’s size, age, location, and if additional steps are required, such as testing for mold and/or radon.
Below is a list of what you can generally expect to pay for a home. With so many factors that play into the final cost of a house, the charge can vary from the suggested price that is listed. [Read more…]
Before performing a title search on your own, you should know the benefits of having a professional perform one for you. While it’s not necessary, experience is the best way to ensure the process goes quickly and accurately.
An American Land Title Association (ALTA) certified professional will know the ins and outs, and will be able to determine any information or records that can impact ownership accurately. They will also be able to provide you with a certified abstract once the title search is complete.
While you will need to pay a professional to perform a title search, the security and accuracy they can offer you paired with the time you will save from not having to search through records makes it a worthy investment.
Still, there are some instances where you will want to perform a title search yourself. With patience and attention to detail, it is possible.
A title search determines who the legal owner of a property is and confirms that they have the legal right to sell the property.
To resolve this, you will need to look for any claims, tax delinquencies, judgments, liens, or outstanding mortgages that must be released or paid before the property can be sold.
The good news is that real estate transactions are staying strong, even when we cannot connect with our clients in person. The biggest obstacle we are seeing is getting the best possible assets for property listings when the client does not want us to be with them in person.
Never fear! Just like we now have remote online notary (eNotary and eClosing services), there are solutions for real estate agents to get listing assets and photos that sell without having to come in contact with your client.
Here are three options so that you can get incredible listing assets and remain “contact free”.
Thanks to smartphones having advanced camera lenses and video conferencing, you or your photographer can connect with the seller virtually to take incredible listing photos.
Have your client set their computer or secondary device up so you can see where they are in the room. Now you or your photographer should give your client guidance on angling their phone or camera and describe what to capture. The best part is they can email or share the images in real time making sure you have the right shots.
Bonus tip – while you’re at it, why not have them do a 360 degree video of the room and a virtual walk through. You can make sure they scan the entire room and also position the camera correctly.
It can be nerve racking for clients to have strangers walking through their homes right now. But PPE and HAZMAT equipment are becoming available again.
By purchasing this for your photographer and making sure everyone follows social distancing and hygiene guidelines, you may be able to have your photographer go through and capture the correct images for the listing.
Another option is to see if your client will be running essential errands. This could be a great time to schedule your photographer to go in.
There will be no human contact and if the photographer wears their gear and follows guidelines and you have done your best to help prevent the spread of any viruses.
If your photographer does not want to do this, or the client prefers you go in instead, this could also be a great alternative to being in your clients house with them directly.
Always check with a licensed medical professional for best practices and practical advice on staying safe while being in your clients home.
Similar to the first solution, the client will be responsible for taking the shots. The good news is that in this case the camera does all the work.
Go online and buy one or a few 360 degree cameras. Next type out instructions on how to set the camera up, turn it on, and capture an image. Last, have your client place the camera in each room to capture the photos.
Now you can list these photos and create a virtual walkthrough and tour of the property.
Bonus tip – there are apps and services that allow smartphones to create virtual tours. Some are under $10 for the download. If you don’t plan on doing many of these, this is a time and budget saver. If you’d like to continue with contact free listing photos, investing in a camera could be less expensive.
Just because we cannot be with our client in person does not mean we cannot get quality assets for their property listing. By being creative and staying within proper health guidelines, we can continue to gather the images we need and continue to sell properties.
With the news focusing on the bad about the pandemic, they’re forgetting one important thing. Bringing you actual news that can help you or benefit you!
For example, interest rates are incredibly low right now. This makes it a prime time to refinance your mortgage.
Refinancing your mortgage is simply getting a new mortgage to replace your old mortgage. When interest rates drop, you are able to save in the short and long run by paying a lower mortgage interest rates. But that is only one reason to refinance your mortgage now.
If you still have a lot to pay off on your loan, going with a lower rate will save you money because your monthly payments will be lower. This can help make life a bit less stressful if you’re having cash flow issues.
This cash can be used to pay off debts.
Bonus tip – If you pay off credit cards at 24% to a lower interest mortgage rate, this strategy can save you a ton of money overall!
Please note that the numbers below do not reflect actual loan amounts. I am using simpler numbers for example purposes only.
If the rate on the refinanced 125K mortgage is 5%, and the rate on a $75K mortgage is 2.5%, by applying your $50K from the inheritance you could now only have to pay 2.5%.
As a bonus, did you know that you can choose who does your closing for your refinancing? See, we made sure there are 6 options in this post as promised.
By choosing your own closing company, you can save even more. If you would like a quote from us, email us by clicking here or click here to learn about our closing services and fill out the form on the top of the page.
Sourcing deals, discovering reliable contractors and staying up on current renovation and rehab trends is tricky enough. Finding tax deductions for real estate investors shouldn’t add to your stress. And that is where we come in to help!
Below you’ll find tax deductions for real estate investors with the forms you’ll need and plain english explanations. We’ll continue to update this guide so it is as current as we can make it, and so you’ll stay in the loop on how to save when it comes to your taxes.
If you know someone that will benefit from these real estate investor tax deductions, feel free to share this post with them on social media or in a newsletter.
When you invest in and subsequently sell property, any profits made from that transaction are considered capital gains and become part of your taxable income.
However, Section 1031 U.S. Internal Revenue Code, often referred to as the 1031 Exchange, allows investors to avoid capital gains taxes when they use the proceeds from the sale of an investment property to reinvest in another property.
To leverage this deduction, you must identify a like-kind property of interest within 45 days of selling the previous property and invest in the new property within 180 days.
Tax forms requirements:
Click here to read about the ins and outs and how to use a 1031 exchange.
Depreciation is often described as the loss of value in a property, particularly due to wear and tear over time.
Real estate owners and investors who choose lease or rent property to consumers or businesses can leverage depreciation as a deduction, but the nature of it shifts slightly from the general definition of depreciation.
In this case, property owners and investors can deduct the costs associated with purchasing and improving a rental property.
To deduct depreciation, you must own the income-producing property and the property must be available and ready to rent.
Tax forms requirements:
Though the cost of client gifts can be deducted, business owners can only deduct up to $25 per gift, even if the gift exceeds that amount. If you intend to deduct these types of gifts, it’s important to keep detailed records that support your claim.
Keep in mind that the Tax Cuts and Jobs Act (TCJA) adjusted tax code regarding entertainment deductions. If you’ve claimed entertainment as gifts in the past, you may need to update your approach.
Now, entertainment gifts are only considered as such if you do not attendant/participate in the event with the client. If you attend/participate, it is considered an entertainment expense and cannot be deducted.
Potential tax form requirements:
Under the U.S. tax code, rental income is considered passive income, and thus losses from that income are passive losses.
Basically, if your real estate property or investment is a source of losses, you may be able to deduce those losses under certain circumstances.
If your AGI is $100,000 or less, you can claim up to $25,000 in property losses. If you make between $100,000 and $150,000, you may still be able to collect but deductions will be gradually reduced.
It’s also important to note that, according to the IRS, property loss deductions are not available to anyone who “[holds] any interest in a rental real estate activity as a limited partner or as a beneficiary of an estate or trust.”
Potential tax forms requirements:
Self-employment tax consists of social security tax (12.4%) and Medicare (2.9%). For some self-employed individuals, that can turn into a considerable tax bill each quarter.
Fortunately, self-employed real estate professionals can deduct 50% of their self-employment tax.
Potential tax form requirements:
Self-employed individuals that report a net profit can deduct their health insurance premiums, including those paid to cover premiums for their spouse, child/children (under 27), or other dependents. This includes both medical benefits and dental benefits. If you don’t report 100% of your premiums paid, then you may be able to include medical expenses as itemized deductions.
Potential tax form requirements:
If finding deals and buyers wasn’t tricky enough, as a sole proprietor and real estate agent you also must navigate the tricky federal tax system. Good news, you are not alone in this!
Below you’ll find a list of the top tax deduction rules specific to real estate agents and professionals. As a bonus we’ve also included tax-saving tips that you can use to pass real estate tax savings on to your clients.
Click any of the links below to skip to the section that will walk you through the options, share which forms you may need and also help you learn how to save on your taxes as a real estate agent. If you know someone who could benefit from this list, share it with them on Facebook or your other social media channel of choice.
Real Estate Agent Business Tax Deductions
Home Buyer and Seller Tax Programs
Home Office Expenses
If you use all or part of your home for business purposes, you may be able to deduct several related expenses, including insurance, internet costs, utilities, repairs, and even mortgage interest and depreciation.
To be eligible for this deduction, your at-home business practices must fit into one of two categories:
Potential tax form requirements:
Client Gifts
Under current tax code, business owners of any type can deduct up to $25 per client gift, even if the cost of that gift exceeds $25. In addition, the Tax Cuts and Jobs Act (TCJA) also now states that entertainment gifts can only be claimed as such if the giver does not attend the event with the recipient. [Read more…]
When we think of the heroes right now, they are visible people like Nurses and Doctors, the grocery store worker stocking shelves, the trash collectors, and the delivery person helping to keep restaurants afloat. But there is one professional that is being overlooked. Real Estate Agents.
Real Estate Agents provide essential services you probably aren’t thinking of right now.
Agents are essential because they are saving people’s lives and helping to prevent others from losing their homes as bills pile up. Not to mention the 50,000 americans who need/needed to find housing solutions last minute as they repatriated during the outbreak. Not sure what I’m referring too?
Here are six examples of how real estate agents are saving lives during Covid-19 by being the eyes and ears of their buyers and sellers.
Before the “stay home” and social distancing orders started, people were being foreclosed on. The only way to avoid foreclosure and have a bit of money to continue with your life is through selling your house before it can be auctioned off.
With an experienced agent, these people can move their homes and have one less thing to worry about during Covid-19.
Domestic abuse is a problem. Being trapped at home with the abuser, especially if there are children involved, can be the final straw that gives the person enough courage to leave.
By contacting a trustworthy real estate agent, the person who needs to escape can have the agent scout out apartment buildings and houses for sale or for rent by using their network privately. Because the agent already has knowledge and a database, they can do this in secret so the abuser doesn’t find out.Now the person has a chance to escape, especially when they cannot safely look for a new place to live as the abuser is home with them and may catch them looking for a way out.
Whether it is from coronavirus or other causes, if the person that brought in the majority of the household income passes away, the spouse or family may no longer be able to afford their home. If this happens to elderly people or someone who is “at risk”, attending open houses and shopping around for a deal is not an option. This is where a real estate agent comes in.
Real estate agents can and likely will take photos and video of the property. The real estate agent will look for affordable options, and also use their skill sets to find the shopper a new home that they can afford. Even better, that same agent can help sell the persons home and help them to get a fair or even better price than the seller would get on their own.
Jobs are being lost, but plenty of companies are also hiring. If a person loses their job and is looking, or has already found a new job but it doesn’t pay as much, a real estate agent can help that person find a more affordable house or apartment in the same school district.
Now the family does not have to leave the area they love living in and more important, their kids do not have to change new schools and make new friends.
Once the lockdown is over, bills are still piling up and not all banks or lenders are being flexible. If it looks like someone is going into foreclosure, a licensed and talented agent will be able to spend time cutting deals now to sell their client’s home before it gets foreclosed on. They’ll also be able to help their client find a new place to live.
If it looks inevitable that you are going to lose your home, an agent can help protect you from losing everything and get to work now before foreclosure begins.
As we mentioned above, it is not wise right now for anyone to leave their home for unnecessary travel. This is especially true for the elderly and people that are “at risk”. Real Estate Agents are life savers for them.
The agent can go to the new homes and live stream the property with a video walk through. The agent can make sure all questions and answers are being asked, and the agent has access to title companies like ours that are doing eclosings so elderly and at risk people do not have to come in contact or engage with others which would endanger themselves.
Real Estate Agents are essential during pandemics and times of crisis. If you haven’t thought of a real estate agent this way, then you are lucky enough to not be in these situations. It is important to thank our doctors, nurses, EMTs, store clerks, waste collection specialists, and also to remember the other people out there risking themselves to help the communities around them. That includes Real Estate Agents.