Buy Myrtle Beach Real Estate

2011 Real Estate 1031 Exchanges, Tax-Free Exclusion For Estate and Gift Taxes, Plus The Stepped-Up Basis For Inherited Property

The amended version of H.R. 4853 that passed has a definite positive effect on 1031 exchanges. The capital gains tax rates have remained as they were. For real estate this means they remain at 15% maximum.

The tax-free exclusion amount for estate and gift taxes, and the stepped-up basis for inherited property means the exclusion will be $5 million per person, with a tax rate of 35% for amounts over $5 million. An important aspect of the estate tax agreement for taxpayers is that a property is inherited at the stepped-up basis. This means that while the decedent may have had a low tax basis as a result of purchases made years ago and/or exchanging, the property will be inherited at a stepped-up basis at the market value at the date of death. Thus, an exchanger can continue over the years to defer capital gains, including depreciation recapture, by doing an exchange, and then leave the property to heirs without any income tax on the deferred capital gain. Their exchanges over the years are, in fact, income tax free. The heirs will not have to pay any income tax on the previous gain as they will receive the property with a tax basis at its current market value. If they sell immediately, they probably will not have any capital gain. If they hold the property, then only the capital gain and depreciation taken while they owned the property would be taxed, unless they also do a 1031 exchange. These provisions will be in effect until the end of 2012.

Receiving 1031 Escrow Funds in The Year Following Exchange

The IRS 1031 regulation provides that if an exchanger receives cash from the qualified intermediary at the end of the exchange, or if the exchanger had a bona fide intent to do an exchange but does not complete the exchange by receiving a replacement property, then the gain on cash received will be reported for the tax year in which the exchanger actually receives the cash from the qualified intermediary.

Home Buyers

FHA Loans With A Credit Score Of 580

There are several lenders that have reduced the FICO (credit score) requirement for FHA loans down to 580. This could even help those that have lost a home to foreclosure or short sale. Read my blog "FHA Loans With A 580 Credit Score" in Myrtle Beach Real Estate and More

100% Financing For A Home Within A Rural Development Area

USDA Rural Development home purchase funding with zero down payment, no mortgage insurance, money for your closing can come from any source, easy qualifications, and Not limited to 1st time home buyers.

Fannie Mae and Freddie Mac May Be Gone In A Few Years And Mortgages Will Be Even Harder To Obtain

Now is the time for home buyers to get more home for less money. As a Realtor I will help you avoid the intimidating process of buying your first, second, or vacation home. It's my job to guide you, from beginning to end. I promise you will be represented by someone acting in your best interest, and I will take the time to fully answer your questions.

R E A LT O R . C O M ®/ T O P P R O D U C E R ® S T E P - B Y- S T E P S E R I E S

Home Buyers Guide

A Home Buyers Guide provided by Realtor.com is provided by just clicking the underlined words to the left. The 33 page document contains The home buying process - a brief, step-by-step overview; A home buyers glossary; To buy or not to buy - considerations for first-time home buyers in this market; The loan process - financing your home purchase; Successfully negotiating the deal; Expect great service from your REALTOR®; Home search worksheet.

We can discuss the advantages of buying and owning a home, and compare renting to buying.

You can use the mortgage calculator on this site to determine the monthly mortgage payment if you decide to finance your purchase and I can provide you with a list of local lenders who have helped other clients. You will find out the mortgage dollar amount you qualify for relivent costs of closing.

We'll discuss what you are looking for in a home. Size in square footage, number of bedrooms and bathrooms, if you want a garage, bonus room, how much property, areas of the Grand Strand, schools, and anything else on your wish list.
We can start the house hunting. You can do a real-time official MLS search from this site, I can email you listings of homes that match your criteria or we can skip that step and begin our search in person.
If you find your perfect home and are ready to make an offer, I’ll do a market analysis of the home you’re interested in to make sure that it is priced fairly. Then, I will negotiate on your behalf, to get you the best possible price. In todays market the "Asking Price" you have seen on the MLS listing does not mean you will have to pay that much.
I am with you throughout the purchase process and closing.

Things To Consider Before Buying A Home

When it comes to a real estate purchase of a new or larger home there are some things to consider:

Are you renting and feel it is time to purchase your own real estate?

Is the place you are living too small for your and / or your family?

If you plan to obtain a mortgage, have you done a mortgage payment calculation? Compare interest amounts between lenders.

At the place you work has there been any lay-offs during the past six months?

Do you have six months worth of total monthly expenses in savings that you will not have to touch when you make a real estate purchase?

Check your credit through the completely free and no strings government sponsored www. annualcreditreport.com or call them at (877) 322-8228

If you presently own a home you need to have it listed for sale with a real estate company that is active in your area.

Start you real estate search using a Realtor who will act in your best interest at no cost to you.

Buy Real Estate With Your 401(k) In Myrtle Beach

Several years ago I thought about rolling my IRA into a Self Directed IRA because I had heard you could use your IRA to buy real estate. I put that idea on the shelf since my IRA fund was doing fine. Yesterday I revisited the idea when I found information on the National Association of Financial & Estate Planning (NAFEP) web site that could help some of us who are losing money in our 401(k) and IRA plans. I suggest you also look at other sources of information about Self Directed investments but NAFEP is a good starting point.

Since the cost of real estate is very low and many retirement plans have suffered losses it may be time to think outside the box:

Self Directed 401(k) offers a wider range of investment choices which includes tax free real estate investing. You become the Trustee of your fund and you self direct investments on behalf of your 401(k);

Self Directed IRA offers a wider range of investment choices which includes income and tax deferral for growth on investments. Direct ownership and checkbook control of all plan assests and monies plus capital gains deferral;

I also want to mention there is a plan called Self Directed Installment Sale for selling real estate, a business, or assets from a C or S Corporation.

All of the above plans involve setting up a Limited Liability Corporation (LLC) which is really very simple. A search in your State's official web site may bring up an on-line application. If not look for information where to file the articles of incorporation. There are also places that will help you get the paperwork done and filed. On the NAFEP web site for the Self Directed 401(k) they will create an LLC or C-Corp for you.

Even though you can not simply create an LLC and roll you IRA into or 401(k) into a bank account you've created. The process does not involve much more effort. In the case of the IRA you will need to find a company which is approved as a custodian for Self Directed IRA accounts. Shop around on the web by using "Google" search.

Myrtle Beach Real Estate Foreclosures

If you are considering a purchase of forclosure real estate in the Myrtle Beach area:

Follow direction on my Home page to search the Myrtle Beach MLS system for live real-time real estate listings of forclosure property and a direct link to Fannie Mae Foreclosures.

During the past few years I have represented buyers who were able to purchase some fantastic foreclosed real estate in the North Myrtle Beach and Myrtle Beach, South Carolina area, but I want to make potential buyers aware of a few things before they begin the process:

Prior to making an offer on foreclosure or short sale property they must either have cash available or a pre-qualification letter from a lender.

Be aware of a term "highest and best" that they may hear during the process of buying when multiple offers are involved or the lender who may or may not hold a Fannie Mae or Freddie Mac backed mortgage wants more for the property.

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