Blog - ATG Title

Form 2553: How to Use It & Save on Corp Taxes!

May 24, 2022 By Jeremy

If you are ready to save money on your corporate taxes as a real estate agent, investor or small business, we are here to help. Registering with the IRS to form your corporation is easy, and form 2553 is simple when you know what to fill out and how. The TL:DR version is by marking yourself from a C Corporation (which is the IRS default) to a S Corporation you can lower what you owe in taxes. It is important to note there are differences in C and S corps, and we’ll cover those in a follow up post.

Below you’ll find FAQs about Form 2553 including what it is, who is eligible for it, and how to fill out and file this form.

What is a Form 2553?

The 2553 form is the tax form that tells the IRS that a business wants to be registered as an S Corporation rather than a C corporation.

To be eligible and qualify you must: [Read more…]

What is an Appraisal Contingency?

May 17, 2022 By Jeremy

An appraisal contingency is a clause in a purchase contract that allows a home buyer to back out of the agreement without losing their earnest money deposit if the house is appraised for less than the purchase price.

The appraisal contingency is commonly used by buyers in areas where prices are volatile like California to protect themselves from overpaying for a home.

If the house you’re buying or selling does not appraise for what you thought, don’t panic! You have options to help make sure the sale still goes through.

As a seller, your options are to: [Read more…]

What Quiet Titles and Quiet Title Actions Are

May 10, 2022 By Jeremy

A “quiet title” is a name given to a legal proceeding that takes place in civil court when someone makes a claim about the rightful ownership of a property during a real estate transaction. A “quiet title action” is the evidence provided by the person defending their ownership. The questions about ownership can come from the buyer, the seller, or a third party who believes they have a right to ownership or that a previous owner has a debt owed to them.

Claims on a title that result in a quiet title proceeding occur somewhat frequently, and there are numerous reasons. So if you’re on this post because someone is making a claim, we can tell you first hand not to panic. You have options and the claim doesn’t have to stop your transaction from going through. Before we jump into your options, lets look at some of the reasons someone may make a claim or you have to go through the quiet title process.

Reasons a quiet title claim is filed include:

The death of an owner (there can be multiple owners)
When a quitclaim deed is used
Disputes between a mortgage lender and a borrower
If there’s a period of time where no one knows who owned the property
Property boundary disputes
Properties that were unoccupied for a long time
Errors in surveying
When there is a case of adverse possession (squatters rights)
To settle tax issues

Each state has their own specific laws on who is able to file a quiet title action. Some states only allow the lender who holds the mortgage to file. In states like Michigan, anyone who has an interest can file. States like Florida and Texas require the current property owner to file the quiet title action.

The Process of a Quiet Title Action

Research the ownership
Draft a complaint for a quiet title action
File the suit and serve any parties involved
Obtain a court order

Research the ownership of the property

You can research the property’s ownership by: [Read more…]

Pre-Foreclosure, Auction, REO: What’s the Difference?

May 3, 2022 By Jeremy

The differences between pre-foreclosures, foreclosure auctions, and REO foreclosures (real estate owned) is that each one is a step in the foreclosure process instead of being a type of foreclosure. Each one of these steps follow one another and each one has opportunities for you to save your house, although they diminish as each progression occurs.

Pre-foreclosure is the first step where you get a notice from your lender that they are starting the foreclosure process. If you cannot work out a deal, the next step is where you go into foreclosure and the lender will auction your “real property” to the highest bidder in hopes of getting their money back. If the auction does not work, your lender may decide to hold onto the property and sell it themselves. This is called REO foreclosure.

Now that you know each is a step in the process, let’s dive a bit deeper into each so you can work to avoid losing everything, or if you’re a real estate investor, determine if a foreclosure home is the right one for you to buy and when to engage.

Note: If you’re a home owner, don’t think of an investor as the enemy. They may decide to offer you a rent-to-own agreement so you can stay in your home, they earn a profit, and you may be able to buy it back over time. If you have no other option but foreclosure, a real estate investor may buy your home from you and you’ll at least have some cash in your pocket instead of losing everything.

Let’s start by looking at what each of these steps in the foreclosure process mean, and at the end of this post you’ll find a helpful table sharing ways to avoid pre-foreclosure, foreclosure auctions and having your home become an REO property.

Pre-foreclosure

[Read more…]

What is a Quitclaim Deed?

April 26, 2022 By Jeremy

A quitclaim deed is a legal document that either adds another owner to the title of a property, or transfers the title of a property from one owner to another if something happens to one of the people or parties.

Quitclaim deeds are often used when a couple gets married so the spouse is protected if their partner dies, when a married couple gets divorced so that the new owner is the only owner of the property, and between friends or family members who want to make sure ownership is guaranteed if something happens to the original property owner. Quitclaim deeds are also updated or used to fix errors on the title like a misspelling. This is normally done through a title company or a real estate lawyer.

It’s important to also know that a quitclaim deed can be revoked at any time by the person who filed the deed. And getting a quitclaim deed is not difficult, not to mention you do not need an attorney, although we do recommend using one.

To file for a quitclaim you will need: [Read more…]

What Is An FHA Loan?

April 19, 2022 By Jeremy

An FHA loan is a type of mortgage that is insured by the Federal Housing Administration (a department of HUD) that you can apply for for at local banks and/or credit unions and use towards buying a new home, fixing up a house you already own, or a combination of the two. FHA loans can be used to buy or refinance single-family homes, two- to four-unit multi-family homes like duplexes, fourplexes, condos, townhouses, and certain manufactured homes.

Because the government is insuring the loan, it is less risky for lenders to approve an FHA loan making them more accessible than traditional loans. The government backing also allows lenders to offer lower rates, more down payment options, and the opportunity to approve people with lower credit scores.

There are also numerous types of FHA loans, and the limits (the total amount you can take) can change.

Types of FHA Loans

203(b) loan

The 203(b) loan is the most common type of FHA loan and you can use the 203(b) to purchase or refinance a home. The down payments can go as low as 3.5% making them very attractive. The downside to a 203(b) loan is they cannot be used on a home where the repairs will cost more than $5,000. [Read more…]

13 Curb Appeal Ideas Under $1,000 That Increase Sales Price

April 12, 2022 By Jeremy

Having a welcoming home brings more leads and can increase how much money you will get in an offer, which is why curb appeal matters. In fact, curb appeal can increase perceived home value by 5 to 11%. So if your house is on the market for $100,000, an 8% increase from a $1,000 curb appeal fix will net you $7,000. But with all the curb appeal ideas out there, which ones do you start with?

Whether your budget is large or small, here are some of the best curb appeal ideas under $1,000 to help increase the “perceived” value of your home and increase your sales price!

13 Curb Appeal Ideas Under $1000

Exterior Paint

A newly painted color coordinated home will make your house look well-kept and refined. But limit yourself to two or three neutral tones so the house does not look too busy. If you want to add a pop of color, paint the door and your shutters to add some vibrancy.

Pro tip: Go with a popular color if you go this route. The wrong color can make a buyer skip your house because they will have to do more work if they buy your home and another home doesn’t need painted.

Cost: $500 and $2,000 depending if you DIY.

Clean and Pressure Wash Pavement, Features and Siding

Pressure washing is an easy curb appeal idea that increases your sales price as your home will look clean, fresh and newer. You can rent a pressure washer in hourly increments or by the day, and use it to clean pavement, fences, the siding on your house, and even brick or stone. A clean walkway and dirt free exterior are welcoming and will set the tone for your real estate photography to welcoming potential buyers in as they tour your home.

Power washing times:

[Read more…]

What is a Cash Offer on a House? Should You Consider It?

April 5, 2022 By Jeremy

Have you received a cash offer on your house and aren’t sure what to do? We can help.

When you receive a cash offer, it means that the buyer has cash-on-hand and wants to purchase your home without a mortgage. The major benefit to accepting a cash offer on a house is that you won’t have to worry about the deal falling through like you would if the buyer has to take a mortgage from a bank.

With a cash offer on a house you also won’t have as many delays like you do when the buyer is relying on the speed of a lender where red-tape can cause “sticking” points. And when you get a cash offer on your house, the money will be transferred directly to you once your closing services have been finished. But there are risks with taking cash offers.

Not every cash offer will be legit, and many deals can fall through putting you [Read more…]

Townhouse Vs. Condo: Which is a Better Investment and Why?

March 29, 2022 By Jeremy

Whether you’re looking to invest and earn a profit, or you are shopping for your new home, choosing between a townhouse vs. a condo doesn’t have to be a hard decision. Both property types are great options, and if you’re stuck, we’re here to help you make the right decision based on your situation.

Below you’ll find everything from upfront costs to resell values, HOA fees, property taxes and what you’ll need to make a decision whether to go with a townhouse vs. a condo.

For example, condos generally are cheaper to own, although they generally have higher interest rates so if you’re taking a mortgage and living there, a townhouse is probably the better option. Townhouses are normally more affordable to live in, but a townhouse does not always have the same resale value as a condo. This is why future planning is key because if you don’t plan on staying in the townhouse for more than 5 or 10 years, a condo could be the better choice.

So let’s jump in and help you decide from both a homeowner and investor point of view.

The Differences of Townhouses Vs. Condos

The differences with townhouses and condos is in your future planning. Future planning for townhouses vs. condos includes the following situations.

You plan on living in the property until you retire
Sell the property once you’re ready for the next stage in your life
Living in the property until you’re ready to rent it out
Purchase the property and rent it from day one
Do a fix-and-flip to sell for a quicker profit (usually you’d take a hard money loan or borrow cash for this vs. a traditional mortgage)

Taxes and fees change pretty drastically between townhouses and condos. These differences are what will help you make the decision on choosing between townhouses vs. condos based on one of the five situations above. [Read more…]

An Easy Guide to 8288 Tax Forms And Why They Matter

March 22, 2022 By Jeremy

While shopping for a home, you may come across a property owned by someone that lives overseas. If you purchase a home from a non-US resident, and they don’t pay the income taxes or capital gains on the property, you could end up responsible for the amount. But don’t panic! This is where the 8288 tax form comes in.

Buying a property from a non-US resident happens frequently as people may invest in US real estate, move here for work or military service, or any other number of reasons. It is so common that a tax act called FIRPTA (Foreign Investment in Real Property Tax Act) was passed to help the IRS track these transactions, and the income taxes that foreigners are required to pay when selling property in the USA.

FIRPTA is unique because it requires the buyer to handle the additional tax if the foreign seller or sellers do not pay it. And this is where the 8288, 8288-A and 8288-B forms come in.

Below you’ll find FAQs about the 8288 tax forms including what it is, what to look for, and how to make sure there are no surprises when it comes to buying a house from a non-US citizen in the United States.

What is an Form 8288?

[Read more…]

What is a Form 2553?

The Process of a Quiet Title Action

Research the ownership of the property

Pre-foreclosure

Types of FHA Loans

203(b) loan

13 Curb Appeal Ideas Under $1000

Exterior Paint

Clean and Pressure Wash Pavement, Features and Siding

Power washing times:

The Differences of Townhouses Vs. Condos

What is an Form 8288?