The Short Sale Process - comprehension the Short Sale Process

When housing prices in many parts of the country were booming a concentrate of years ago, there wasn't much national concentration given to short sales. But with the current subprime debacle and addition mortgage delinquencies, many habitancy are wondering if the short sale process is a way to avoid foreclosure.

Basically, the definition of the short sale process is when the lender of a property allows the property to be sold for less than the amount due on the mortgage loan.

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The certain advantage to the short sale process is that it allows the seller to avoid the credit article damage connected with a foreclosure. A foreclosure can stay on your credit article for up to 10 years and can take an emotional and financial toll on you and your family.

But the pitfalls of the short sale process should be thought about as well. The I.R.S. May consider any debt forgiveness as chargeable income, thus resulting in a tax liability. In addition, lenders can often pursue a borrower for the insufficiency equilibrium (the inequity between the amount owed and the amount paid).

In some cases you may be able to avoid taxation if you can prove you are insolvent. But if insolvency is unsuccessful, and you are faced with a tax liability resulting from the insufficiency amount, it may make more financial sense for you to let the lender foreclose.

The Short Sale Process

The short sale process can vary, but it will commonly work as follows:

1) The lender is contacted to discuss the possibility of a short sale and to determine the lender's process for completing the sale.

2) The seller issues a letter authorizing the release of personal facts about the loan and the property to the buyer or escrow agency.

3) The lender will retell a settlement statement, which will indicate the proposed selling price, remaining loan balances and itemize all expenses, including real estate commissions and other fees and expenses connected with the closing.

4) The seller will perfect a "hardship letter," which will information and clarify all financial difficulties. Lenders will commonly want to validate the seller's financial situation by looking at bank statements, venture accounts, along with examining paystubs and other financial records.

5) The lender will then look to the broker to supply a price understanding by examining the condition of the house and the store value of comparable properties.

6) The lender will then want to study the purchase business transaction to determine if all amounts are uncostly and the real estate commission is acceptable.

Because of the documentation required, the short sale process can be lengthy. But if done correctly, it can work well for all parties involved. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit article (along with possible bankruptcy), and the buyer hopefully got a good deal on a property.

Considering the complexity of the short sale process, you must be educated. If you are considering a short sale, make sure that you discuss your situation with a competent lawyer and accountant. The more educated you are on the process, the easier the transaction will be, and the best the impression you will make on the lender.

The Short Sale Process - comprehension the Short Sale Process

How to Refinance Your Mortgage Loan After episode 7 or episode 13 Bankruptcy

Did you recently file for episode 7 or episode 13 bankruptcy and need a mortgage refinance loan?

There is no query that filing for bankrupcty negatively impacts your credit file. Whenever you apply for a mortgage loan, credit card or even a small unsecured personal loan, your inherent lender pulls your credit report. Having a bankrupcty or chargeoff on your credit description is a red flag that tells the lender that you are likely not to pay back your loan.

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Can you refinance your mortgage loan after bankruptcy? The quick sass is "yes". You can get a home equity loan, Heloc or a cash out refinance loan, even after bankruptcy.

Getting A Mortgage Refinance Loan After episode 7 Bankruptcy

When you filed for episode 7 bankruptcy, chances are, you were able to keep your home. If you are one of the lucky ones, who lives in a state like Florida, California, Nevada or a whole of other states that have seen valuable appreciations in home property values - you may have anywhere from 5% to 50% equity in your home. You can take benefit of this equity to wipe out any superior debts that are left over after the bankruptcy or to take care of other financial needs.

The great news about episode 7 bankruptcy is that it offers a new starting and erases most of your debts with the exeption of 19 cases, where debts are not discharged. These cases include, child support, taxes, learner loans, fines and restitutions imposed by courts.

If you still have learner loans or taxes to pay - there is no good time to tackle them, than now. Give yourself the gift of starting fresh.

You can get a mortgage refinance loan, well the day after your episode 7 bankrupcty is discharged. You don't have to wait for any specified time period. You will need to find subprime mortgage refinance loan lenders, who specialize in cash out refinances, home equity loans and Helocs for a mortgage program that is convenient for your credit score - be it 450, 480, 500, 550 or 600.

Getting A Mortgage Refinance Loan After episode 13 Bankruptcy

Chapter 13 bankruptcy allows individuals to reorganize their finances. When a consumer files for episode 13, the consumer proposes a plan to pay back his or her creditors over a 3 to 5 year period. while this period, the creditors cannot harrass or effort to collect on any of the previously incurred debts.

For this reason, a person, who files a episode 13 bankruptcy can refinance their mortgage loan, 6 months after they file for bankruptcy.

How to Refinance Your Mortgage Loan After episode 7 or episode 13 Bankruptcy

Benefits of an Llc For Rental asset Owners

Rental property owners are entrepreneurs. And as entrepreneurs, their former goal is to maximize profit. One of the most basic steps in maximizing profit is to minimize costs and other liabilities. Recently, the up and arrival trend of protecting one's personal assets from the liabilities of a rental firm is to set up an Llc over the rental properties. With this Llc, the rental property owner's personal property, like home, car and other assets, are protected from the unpredictable demands of owning rental property. There are also other benefits of an Llc for rental property owners.

Personal property protection

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First of, what is an Llc? Llc stands for itsybitsy Liability Company. Without the Llc, firm owners are liable for damages and other losses from their firm even with their own personal assets.

To illustrate, a sole-proprietor will have to pay for anything and everything that deals with his firm out of his own pockets. He can never interpose that his firm is bankrupt when he still maintains a personal bank account, his own car and his own home. His personal assets will have to respond for the deficiency. Corporate shareholders do not have this qoute because they are protected by the law on corporations that shareholders are only liable for losses out of their corporate shares, hence, their personal property is protected and remains untouched by any corporate liability. The downside of forming a corporation though is that the process itself is particular and profits will have to be shared with a handful of shareholders.

Llc combines the ease of being a sole-proprietor with the inherent of earning huge profits all by yourself and the protection to personal assets that corporations offer. Personal property protection is the most basic and former of the benefits of an Llc for rental property owners.

Tax advantages

Another of the benefits of an Llc for rental property owners is the tax advantages. Has even great tax medicine than when in a corporation. A corporate shareholder in essence will have to pay taxes twice. First, when the corporation itself pays its taxes, and second when the shareholder has to pay his own tax from the earnings derived from the corporation. An Llc is not taxed as a isolate entity. The property owner will only have to pay his taxes once, upon his receipt of the earnings from the rental property. Also, the net loss in the Llc can be declared as a personal deduction for the property owner!

Be a expert by name

Real estate laws require one to spend a inevitable number of hours in real estate activities to be called as professionals in the real estate industry. But being in an Llc, these requirements are cut in as much as half!

An Llc may be obtained for isolate properties

Another of the great benefits of an Llc for rental property owners is that a distinct or isolate Llc may be obtained for each and every property. Why is this beneficial? Because when an investment is sued covered by an Llc, all the properties belonging to that Llc will stand liable for the suit. Face isolate properties with isolate Llcs will only make the specific property or investment liable for the claim it is sued for.

These are only the basic benefits of an Llc for rental property owners. And these are already enough to convince any serious business-minded property owner, what would a more detailed study of the benefits do? Start protecting your own personal property and increasing your profits all in the same time. Get an Llc now!

Benefits of an Llc For Rental asset Owners

What is Pre-Foreclosure?

It's a sad fact, but many Americans lose their homes to foreclosure every year. Some lenders aren't all the time diligent sufficient in checking a person's potential to make repayments, and others don't actually care anyway. And of policy there are situations where a convert in circumstances happens, leading to the homeowners being unable to meet their mortgage obligations.

Whatever the cause of a man getting behind on their mortgage payments, the process from that point onwards is fairly set. Initially, the lender will file a social default notice. This initiates the foreclosure process, and at this point the property officially enters the pre-foreclosure stage.

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So basically, pre-foreclosure is like a grace period. The homeowner is being warned that they're in default and need to do something about it, but at this point, the lender is unable to claim back the property and sell it to recoup their costs. The distance of the grace duration varies, as it's carefully by state laws. Some states allow the grace duration to last for as long as 6 months, but many states have shorter periods.

Once the property enters pre-foreclosure, there are a whole of ways the homeowner can avoid having their property foreclosed on and sold by the lender.

Pay Off The Default

If the homeowner can find the money t pay off the default amount, then the property is removed from pre-foreclosure. If the whole in default is small, and the default was caused by a temporary glitch in circumstances, then it may be worthwhile taking out a personal loan to repay the debt. If the problem is ongoing, however, this may just cause more problems for the homeowner.

Sell The House

This is a small more drastic, but is probably the best clarification if meeting the repayments is likely to be an ongoing problem. By selling the house, the homeowner should be able to get a cheap price for it. If the homeowner waits and lets the lender sell it, the sale price is practically actually going to be much lower, because the lender just wants to offload the property as fast as possible.

This is often a good time for an investor to advent the homeowner with a fair offer to buy the property. However, many habitancy in pre-foreclosure go into denial, and instead of trying to make the best of a bad situation, will actually avoid taking operation until it's too late. Many also don't understand the long-term detrimental corollary a foreclosure listing will have on their prestige score.

Nobody wants to face foreclosure on their home, but at least the pre-foreclosure duration gives the homeowner the opportunity to find a clarification that's a small more suitable for them. Waiting for the property to pass into foreclosure and be seized by the lender is practically never the best option.

What is Pre-Foreclosure?

Landlords, the Tax Deduction You Should Know About and Your Cpa Might Not be Telling You About

Investment real estate provides separate things for separate investors. Some buy real estate for the hopes of appreciation, some investors buy real estate for monthly cash flow, and still others purchase investment real estate for the tax benefits. There is a large quantum of the investment society that buys for all of these reasons. So, what type of investor are you?

Congress, along with the Internal revenue Service, provides a great many financial benefits for those who spend in real estate. From subsidized housing programs like Section 8 to the Gulf opening Zone (Go Zone), real estate is as inspiring an investment as it has ever been, thanks in large part to the federal government. The tax benefits of investing in real estate can frequently growth the Roi immensely.

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Take a piece of rental property, for example. The Irs allows a multitude of tax deductions, including: mortgage interest, travel, tenant background checks, repairs, utilities, advertising, landscaping, pest control, professional fees and the list goes on. These are all expenses as categorized by the Irs. Whenever you have one of these expenses, you'll most likely write a check or use your prestige card to pay for it. So if you gain 00 in rent, and then pay all of these expenses, you may have 0 left over in your account at the end of that month. That's not too bad when you spend in real estate for cash flow.

There is however, someone else " expense", the Irs allows you to take. It is called depreciation. Although depreciation is classified as an expense, you do not write a check to pay for it. Depreciation allows you to spread the cost of the building out over a duration of time, and to take a quantum of that purchase price over that time. industrial structure typically have a depreciation duration of 39 years, while residential structure have a depreciation duration of 27.5 years. Depreciation is determined only on the building, the cost of the land has to be removed before calculating the each year depreciation. Let's look at example:

Home purchase Price: 0,000.

Land Value: ,000.

Building amount to Be Depreciated: 0,000.

As you can see, we have a home purchase price of 0,000 and the land was valued at ,000. What we subtract the 000 land value from the total purchase price of 0,000, we are left with a building value of 0,000. according to the current Irs rules, this 0,000 can now be spread out over 27.5 years. So take the 0,000/27.5 = ,818.18 per year.

The building is not the only part of your rental property that can be depreciated, however. The Irs Tax Code also allows you to depreciate the "personal property", called Chattel. In addition, the Irs allows you to accelerate this depreciation over a shorter duration of 5 to 15 years. Let's look at a minuscule bit of background on how this Irs tax deduction came about. A court case called Hospital Corporation of America vs. Comm [109 Tc 21 (1977)] makes all this possible. This case rules, that it is allowable to isolate Section 1245 property from Section 1250 property. Your Cpa should be well-known with section 1245 property and section 1250 property. After this case was settled, the Irs issued an Audit Techniques Guide ([http://www.irs.gov/businesses/small/article/0],,id=108149,00.html) on cost segregation. In this guide, the Irs describes some methods for determining the value of Section 1245 property. One of the methods is the "Residual appraisal Approach.".

Basically, what this allows a rental property owner to do is segregate the value of the personal property, or chattel, and accelerate the depreciation on its’ value over a duration of 5 or 15 years.

So what is chattel? The Irs has identified over 65 items that qualify as chattel, including: flooring, cabinets, countertops, lighting, blinds, appliances, landscaping, walkways, driveways, swimming pools etc. So just how much chattel is there in a rental property? A conservative amount to use is 10% of the purchase price. Many times, this percentage is much higher. Let's go back to our customary example above and use a chattel amount of 10%:

Home purchase Price: 0,000.

Land Value: ,000.

Chattel Value: ,000.

Building amount to Be Depreciated: 0,000.

Let's now compute our new depreciation amount, together with the value of the chattel:

Building Depreciation: 0,000/27.5 = ,090.91.

Chattel Depreciation: ,000/5 (years allowed) = 00.

Total Depreciation: ,090.91+ 00 = ,090.91.

Additional Depreciation: ,090.91 - ,818.18 = 72.73.

By segregating the value of the chattel from the value of the building we earn further tax deduction of 72.73. Let's look at actual dollar savings:

Depreciation Amount: ,818.18 x 25% Tax Bracket = 54.55.

Depreciation amount with Chattel: ,090.91 x 25% Tax Bracket = 72.73.

Tax Savings: 72.73 - 54.55 = 8.18.

Keep in mind, these are conservative numbers. So, now you may be thinking, what are the drawbacks? You should always check with your tax adviser before employing a new tax strategy. The most base request about chattel is the concept of a recapture and the recapture tax when you sell the property. You may already be aware, you pay recapture with the straight-line 27.5 year depreciation. Recapture does also apply to the accelerated depreciation taken through this tax strategy.

Let's talk briefly about recapture and the recapture tax. A recapture tax is applied when ever a depreciated asset is sold. The recaptured amount is field to a maximum rate of 25%. The recapture tax percentage rate is based on the investors’ revenue tax rate, and is capped at 25%. This allows you to keep the 75%, and apply the Time Value of Money to create more investments. Let's use our example above, to interpret recapture. We will assume the investment property was held for five years before being sold:

Home purchase Price: 0,000.

Depreciation Taken: ,090.91 x 5 (years) = ,454.55.

Home Sale Price: 0,000.

Recapture Tax: ,454.55 x 25% (max rate) = ,363.64.

How many further properties could your purchase with ,363.64 available before you had to pay it back? Is it one, three, or more? Remember, if your tax rate is higher than 25%, you will keep the variation since you are cpped at 25%. This strategy also works with multi-family properties as well. The savings with manifold units multiplies greatly. If you own or are buying a large multi-family property, ask your tax professional about the Section 179 deduction. It provides over 0,000 in deductions with definite criteria.

Now, the ,000, which is the variation in the middle of our selling price of 0,000 and our customary purchase price of 0,000, is field to capital gain. That is, unless you have utilized someone else strategy such as the 1031 change or a Charitable Remainder Trust. The depreciation amount is not field to capital gain. Again, always check with your tax adviser before making a tax strategy decision.

Congress and the Irs have made real estate such an inspiring investment opportunity, it pays to apply every strategy available to maximize your cash flow and lower your taxes. Ask your tax consultant about a chattel appraisal and a cost segregation study and start using the tax code to your advantage!

Landlords, the Tax Deduction You Should Know About and Your Cpa Might Not be Telling You About

Cell Tower Lease Faq's

Q: Who are the carriers who could likely present me with a cell tower lease to be negotiated at my property?

A: ordinarily the wireless carrier will not present you directly with a cell tower lease. One of their wireless site acquisition or real estate managers will usually experience you first to gauge your interest level. You want to make sure before entering into a cell tower lease agreement with any of the wireless carriers doing enterprise (Att, Sprint-Nextel, Us Cellular, Metro Pcs, ClearWire, Verizon Wireless, Alltel, T-Mobile) or sign a contract with any of the large tower improvement or rooftop management fellowships (Aat, Crown, American Tower, Sba) that show the way your due diligence, but don't wait too long.

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Also if you're lucky sufficient to be contacted by any of these firms, make sure that your you or your lawyer don't negotiate yourselves out of a cell tower lease. Often times attorney's start marking up a lease agreement just to get billable hours. If carriers have to waste a lot of time going back and forth they will move onto an additional one site that's willing to do business, and then you will wind up looking at the site instead of collecting rent from it.

Q: What should I look for in my cell phone tower lease?

A: A properly executed cell tower lease should protect your ground space rights, rooftop space proprietary and address subleasing / subletting issues that many cell site owners often time miss. It will also consist of tax language to protect you from assessments. Also, it is crucial to properly construct the site (height of tower and available ground space) to allow for expansion and collocation which will growth revenues on the cell tower. All cell tower lease exhibit drawings should be completed by a state licensed architectural engineering firm. I could write a list of a dozen things that seasoned real estate attorneys miss usually on cell tower leases, but then where's the fun in that?

Q: I don't know anything about zoning or building scheme management, should I even bother with getting a cellular site built on my building's rooftop?

A: The carriers will not plump your site if it is not feasible for improvement from a whole of aspects, in general zoning, and land use perspective. Only enter into a cell tower lease that puts the burden and cost of obtaining permits and approvals on the carrier or tower company, not on you the Owner/Landlord.

Q: What if cell towers become obsolete? What happens then?

A: Carriers are heavily invested into the improvement of the wireless network. Over 70% of the U.S. People uses cell phones. So if you hear rumors about a balloon or blimp or satellite being used for cellular technology don't be fooled, cell towers are here to stay. We didn't stop using Sony Walkmans either, they just call them iPods now, but People will always want to have personal music players, and the same holds true for personal communication devices.

Q: How long will my cell tower lease be good for?

A: When you sign a cell tower lease the lease term will be initially for 5 years with two renovation terms in most cases, and an added ten year term after that. Since no one has a 35-year cellular tower lease as of yet, we can't say how long they can be extended for, but assume that your cell site leases will be extended for as long as you own the site and People need to speak to each other on wireless devices.

Q: How much can you get for your cell tower lease?

A: Isn't this always the big question... And our sass is that it depends how badly they need your site and where you are located. The closer to the heart of a major metro area, the greater the query for wireless coverage and capacity will be, and the more you can get. Rooftop sites vary from ground leases. For example in Columbus, Ohio you might get ,100 per month each for three carriers on your rooftop totaling ,300 per month. While if you had a cell tower on your asset in the same city you might get ,200 for the first carrier who built the tower, and to added carriers pay rent to the first carrier to co-locate on their pole, and then each pay you 0 for ground space rights, or a total of ,000 per month.

Q: Shouldn't My Attorney Be Able To Guide Us?

A: A cell tower lease is a very intricate and specialized contract that is weighted heavily in favor of the cellular carrier. But think about it, it needs to be. Getting a cell tower built on your asset is like having Donald Trump saying, "I'd like to have a small portion of your ground space, and I'm going to build a buildings on your asset that costs hundreds of thousands of dollars at My expense, and it can potentially bring you -2 Million in rental earnings over a 25-30 year period if we can construct it properly. But I'm only going to do this if the contract protects my investment. And if you don't like it, no hard feelings, the guy next door has 2,000 quadrate feet of space and could use the seclusion money."

Now nothing against Mr. Trump, because he is an icon of success, but if you were going to sign a deal with him would you use an median attorney or get a top-gun attorney? And that's where we run into a shortage of talent in the marketplace. Those who can afford it hire a specialized cell tower lease attorney, those who can't cross their fingers and hope that they are getting a good deal.

That's why cell tower improvement and leasing on your own is a challenge and why asset owners who can find a partner to work with are well served in both the short and long term.

Q: How can I get a cell tower lease signed for a tower on my asset or antennas placed on our roof?

A: Having an uncle working in the real estate division at one of the carriers is your best bet. If that's not an option, submitting your site to the carriers directly gives you approximately a 1 in 1,000 to 1 in 10,000 opportunity for site selection.

Here's our insider private to getting a cellular carrier curious in your site, revealed for the first time anywhere. First, pray to the gods of Radio Frequency. Then print up a dozen or so 18 inch x 24 inch "bandit signs" on your asset that say in bold letters "I Want a Cell Tower On My Property." Your neighbors will probably steal them, but keep them posted on your asset in a graphic area. If a site acquisition advisor happens to be driving that way, you should get a call.

Last Question... (Extra Credit)
Q: What's the inequity in signing a cell tower lease at ,000 monthly with 2% every year increases vs. The same monthly rental whole at 3% early increases over a 25-year cell tower leasing term?

A: The inequity is 2,000 over 25 years. Wow!! Are you happy or are you kicking yourself?

Cell Tower Lease Faq's

Is a Home Equity Line Of reputation Tax Deductible?

Many citizen spend in real estate by manufacture a full upfront payment, but are not financially sound enough to renovate or refurbish it. These citizen can avail of a personal loan against their property with a home equity line of reputation or Heloc. A Heloc offers a higher loan amount than other similar loans based on the reputation limit of the borrower.

A Heloc allows a borrower to inspect the extent of reputation obtainable from lenders. Repayments have to be made every month, along with the interest that could be tax- deductible. There are limitations on the deductions on the personal tax returns for the interest paid on Heloc. Only that part of the interest on debt can be deducted, which cannot exceed the value of the collateral on a home and has to be less than 0,000.

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If the borrower makes the real estate venture as a corporate entity, then deductions in the form of the company interest expenses can be expensed. This transaction needs to be reflected on personal returns. It must be documented in writing and should be within the limits of general company transactions. Customers need to consult their tax consultants and advisors on the legality complicated in order to save on tax.

Financial consultants will give guidance on planned tax-breaks regarding Heloc. The interest deduction is not a dollar-for-dollar allowance of the taxes. It is only a percentage. The deductions may not be as requisite due to the declining tax rates. If the adjusted allembracing revenue is high enough, the phase-out for itemized deductions may preclude the borrower from taking a full deduction. Advisors warn against choosing a Heloc plainly for the benefit of tax deduction, as many other deals also contribute similar tax advantages.

Is a Home Equity Line Of reputation Tax Deductible?

Texas Relocation: Texas Homestead Exemption Changes For 2012

Living in Texas comes with certain benefits and privileges that not all states afford. First of all, we have no state revenue tax. Our job market continues to grow while these tough and uncertain economic times. We host a wide collection of cities, cultures, large cites, communal cultures and a very welcoming bunch of people. No two major cites in Texas are alike--and possibly most unique among Texas cities is Austin--the most non-Texas city in the bunch. But Texas has a lot to offer its residents and those who are inspecting a relocation to the area from other parts of the nation. One of the benefits of living in Texas is our Homestead laws. Texas does a good job of attempting to safe its residents. Life. Liberty. Economic well being. Here is one such example.

If you purchased a home in Texas in 2011 and you are living in the house on January 1, 2012 as your former residence, you should be eligible to apply for your Texas Homestead Exemption. As a Texas homestead owner, you have certain privileges associated with your former residence. Tax protections. And if you are a senior citizen, you may have additional benefits from this law--like being able to ice your Texas property taxes.

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A few things to remember about the Texas Homestead Exemption:

You must be living in the home on January 1st to qualify for the advent year.
Do not send in your Homestead application early. You can not file until after Jan. 1st.
Application for Homestead in Texas is free. You do not have to pay person to file your homestead exemption. It is free to apply and should only take you a few minutes. If you get a letter in the mail from what appears to be an lawful state society with a very lawful looking seal, don't fall for this exiguous production. You can fill out the real application for Homestead Exemption yourself in the same whole of time and file it for free.
Only your former house qualifies.

A few things you should know about the Homestead law: This summer's Texas House Bill 252 changed the proof of residency requirements for homeowners that are applying for the property tax homestead exemption.

The new Texas Homestead Exemption law (changes to the existing law) requires that applicants supply the following proof of ownership:
Application for residential homestead exemption Proof of Texas Driver's License or Texas Identification Card with matching property address to the homestead you are claiming Proof of vehicle Registration Receipt. Again, the address must match the property address for your new Texas homestead.

For a Homestead Exemption form and full details on your eligibility for qualification--see your local County Tax Assessor's Office.

Texas Relocation: Texas Homestead Exemption Changes For 2012

Due Diligence Checklists - For industrial Real Estate Transactions

Planning to buy or finance industrial or industrial Real Estate? Shopping Center? Office Building? Restaurant/Banquet property? Parking Lot? Storefront? Gas Station? Manufacturing facility? Warehouse? Logistics Terminal? medical Building? Nursing Home? Hotel/Motel? Pharmacy? Bank facility? Sports and Entertainment Arena? Other?

A Key to investing in industrial real estate is performing an enough Due Diligence Investigation to assure you know all material facts to make a wise investment decision and to calculate your expected investment yield.

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The following checklists are designed to help you conduct a focused and meaningful Due Diligence Investigation.

Basic Due Diligence Concepts:

Commercial Real Estate transactions are Not similar to large home purchases.

Caveat Emptor: Let the Buyer beware.

Consumer safety laws applicable to home purchases seldom apply to industrial real estate transactions. The rule that a Buyer must examine, judge, and test for himself, applies to the buy of industrial real estate.

Due Diligence: "Such a measure of prudence, activity, or assiduity, as is permissible to be expected from, and ordinarily exercised by, a uncostly and thrifty [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the extra case." Black's Law Dictionary; West Publishing Company.

Contractual representations and warranties are Not a substitute for Due Diligence.

Breach of representations and warranties = Litigation, time and money.

What Diligence Is Due?

The scope, intensity and focus of any due diligence investigation of industrial or industrial real estate depends upon the objectives of the party for whom the investigation is conducted. These objectives may vary depending upon whether the investigation is conducted for the advantage of (i) a Strategic Buyer (or long-term lessee); (ii) a Financial Buyer; (iii) a Developer; or (iv) a Lender.

If you are a Seller, understand that to close the transaction your Buyer (and its Lender) must address all issues material to its objective - some of which want data only you, as Owner, can adequately provide.

General Objectives:

(i) A "Strategic Buyer" (or long-term lessee) is acquiring the property for its own use and must verify that the property is favorable for that intended use.

(ii) A "Financial Buyer" is acquiring the property for the expected return on investment generated by the property's earnings stream, and must conclude the amount, velocity and durability of the earnings stream. A sophisticated Financial Buyer will likely calculate its yield based upon discounted cash-flows rather than the must less exact capitalization rate ("cap rate"), and will need enough financial data to do so.

(iii) A "Developer" is seeking to add value by changing the character or use of the property - ordinarily with a short-term to intermediate-term exit strategy to dispose of the property; although, a Developer might plan to hold the property long term as Financial Buyer after improvement or redevelopment. The Developer must focus on whether the planned turn is character or use can be done in a cost-effective manner. A developer conducting due diligence will focus on issues provocative shop demand, access, use and finances.

(iv) A "Lender" is seeking to found two basic lending criteria:

1. "Ability to Repay" - The ability of the property to originate enough earnings to repay the loan on a timely basis; and

2. "Sufficiency of Collateral" - The objective disposal value of the collateral in the event of a loan default, to assure enough funds to repay the loan, carrying costs and costs of variety in the event forced variety becomes necessary.

The estimate of diligent inquiry due to be expended (i.e. "Due Diligence") to investigate any particular industrial or industrial real estate task is the estimate of inquiry required to talk each of the following questions to the extent relevant to the objectives of the party conducting the investigation:

I. The Property:

1. Exactly what property does Purchaser believe it is acquiring?

(a) Land?

(b) Building?

(c) Fixtures?

(d) Other Improvements?

(e) Other Rights?

(f) The whole fee title interest including all air ownership and subterranean rights?

(g) All improvement rights?

2. What is Purchaser's planned use of the Property?

3. Does the corporal health of the property permit use as planned?

(a) Commercially enough entrance to communal streets and ways?

(b) enough parking?

(c) Structural health of improvements?

(d) Environmental contamination?

(i) Innocent Purchaser defense vs. Exemption from liability

(ii) All proper Inquiry

4. Is there any legal restriction to Purchaser's use of the property as planned?

(a) Zoning?

(b) hidden land use controls?

(c) Americans with Disabilities Act?

(d) Availability of licenses?

(i) Liquor license?

(ii) Entertainment license?

(iii) Outdoor dining license?

(iv) Drive straight through windows permitted?

(e) Other impediments?

5. How much does Purchaser expect to pay for the property?

6. Is there any health on or within the property that is likely to growth Purchaser's effective cost to acquire or use the Property?

(a) property owner's assessments?

(b) Real estate tax in line with value?

(c) extra Assessment?

(d) Required user fees for critical amenities?

(i) Drainage?

(ii) Access?

(iii) Parking?

(iv) Other?

7. Any encroachments onto the Property, or from the property onto other lands?

8. Are there any encumbrances on the property that will not be cleared at Closing?

(a) Easements?

(b) Covenants Running with the Land?

(c) Liens or other financial servitudes?

(d) Leases?

9. Leases?

(a) safety Deposits?

(b) Options to increase Term?

(c) Options to Purchase?

(d) ownership of First Refusal?

(e) ownership of First Offer?

(f) Maintenance Obligations?

(g) Duty on Landlord to provide utilities?

(h) Real estate tax or Cam escrows?

(i) Delinquent rent?

(j) Pre-Paid rent?

(k) Tenant mix/use controls?

(l) Tenant exclusives?

(m) Tenant parking requirements?

(n) automated subordination of Lease to future mortgages?

(o) Other material Lease terms?

10. New Construction?

(a) Availability of building permits?

(b) Utilities?

(c) Npdes (National Pollutant dismissal Elimination System) Permit?

(i) Phase 2 effective March 2003 - Permit required if earth is disturbed on one acre or more of land.

(ii) If applicable, Storm Water Pollution arresting Plan (Swppp) is required.

Ii. The Seller:

1. Who is the Seller?

(a) Individual?

(b) Trust?

(c) Partnership?

(d) Corporation?

(e) wee Liability Company?

(f) Other legally existing entity?

2. If other than natural person, does distributor validly exist and is distributor in good standing?

3. Does the distributor own the Property?

4. Does distributor have authority to convey the Property?

(a) Board of Director Approvals?

(b) Shareholder or Member approval?

(c) Other consents?

(d) If foreign personel or entity, are any extra requirements applicable?

(i) Qualification to do enterprise in jurisdiction of Property?

(ii) Federal Tax Withholding?

(iii) Us Patriot Act compliance?

5. Who has authority to bind Seller?

6. Are sale proceeds enough to pay off all liens?

Iii. The Purchaser:

1. Who is the Purchaser?

2. What is the Purchaser/Grantee's exact legal name?

3. If Purchaser/Grantee is an entity, has it been validly created and is it in good standing?

(a) Articles or Incorporation - Articles of Organization

(b) Certificate of Good Standing

4. Is Purchaser/Grantee authorized to own and control the property and, if applicable, finance acquisition of the Property?

(a) Board of Director Approvals?

(b) Shareholder or Member approval?

(c) If foreign personel or entity, are any extra requirements applicable?

(i) Qualification to do enterprise in jurisdiction of the Property?

(ii) Us Patriot Act compliance?

(iii) Bank Secrecy Act/Anti-Money Laundering compliance?

5. Who is authorized to bind the Purchaser/Grantee?

Iv. Purchaser Financing:

A. enterprise Terms Of The Loan:

What loan terms have the Purchaser, as Borrower, and its Lender agreed to?

(a) What is the estimate of the loan?

(b) What is the interest rate?

(c) What are the refund terms?

(d) What is the collateral?

(i) industrial real estate only?

(ii) Real estate and personal property together?

(e) First lien? A junior lien?

(f) Is it a particular develop loan?

(g) A complicated develop loan?

(h) A building loan?

(i) If it is a complicated develop loan, can the critical be re-borrowed once repaid prior to maturity of the loan; making it, in effect, a revolving line of credit?

(j) Are there sustain requirements?

(i) Interest reserves?

(ii) heal reserves?

(iii) Real estate tax reserves?

(iv) insurance reserves?

(v) Environmental remediation reserves?

(vi) Other reserves?

(k) Are there requirements for Borrower to open enterprise operating accounts with the Lender? If so, is the Borrower obligated to sound minimum compensating balances?

(l) Is the Borrower required to pledge enterprise accounts as additional collateral?

(m) Are there early refund fees or yield maintenance requirements (each sometimes referred to as "pre-payment penalties")?

(n) Are there refund blackout periods while which Borrower is not permitted to repay the loan?

(o) Is there a Loan Commitment fee or "good faith deposit" due upon Borrower's acceptance of the Loan Commitment?

(p) Is there a loan funding fee or loan brokerage fee or other loan fee due Lender or a loan broker at closing?

(q) What are the Borrower's expense refund obligations to Lender? When are they due? What is the Borrower's compulsion to pay Lender's expenses if the loan does not close?

B. Documenting The industrial Real Estate Loan

Does Purchaser have all data critical to comply with the Lender's loan windup requirements?

Not all loan documentation requirements may be known at the outset of a transaction, although most industrial real estate loan documentation requirements are fairly typical. Some required data can be obtained only from the Seller. Output of that data to Purchaser for delivery to its lender must be required in the buy contract.

As advice to what a industrial real estate lender may require, the following sets forth a typical windup Checklist for a loan secured by industrial real estate.

Commercial Real Estate Loan windup Checklist

1. Promissory Note

2. Personal Guaranties (which may be full, partial, secured, unsecured, cost guaranties, variety guaranties or a variety of other types of guarantees as may be required by Lender).

3. Loan bargain (often incorporated into the Promissory Note and/or Mortgage in lieu of being a cut off document)

4. Mortgage [sometimes vast to be a Mortgage, safety bargain and Fixture Filing]

5. Assignment of Rents and Leases

6. safety Agreement

7. Financing Statement (sometimes referred to as a "Ucc-1", or "Initial Filing")

8. Evidence of Borrower's Existence In Good Standing; including

(a) Certified copy of organizational documents of borrowing entity (including Articles of Incorporation, if Borrower is a corporation; Articles of club and written Operating Agreement, if Borrower is a wee liability company; Certified copy of trust bargain with all amendments, if Borrower is a land trust or other trust; etc.)

(b) Certificate of Good Standing (if a corporation or Llc) or Certificate of Existence (if a wee partnership) or Certificate of Qualification to Transact enterprise (if Borrower is an entity doing enterprise in a State other than its State of formation)

9. Evidence of Borrower's Authority to Borrow; including

(a) a Borrower's Certificate;

(b) Certified Resolutions

(c) Incumbency Certificate

10. Satisfactory Commitment for Title insurance (which will typically require, for prognosis by the Lender, copies of all documents of narrative appearing on agenda B of the title commitment which are to remain after closing), with required industrial title insurance endorsements, often including:

(a) Affirmative Creditors ownership Endorsement (extending coverage over course exclusion 7 and course exclusions 3(a) and 3(d) as they divulge to creditor's ownership matters)

(b) Alta 3.1 Zoning Endorsement modified to comprise parking

(c) Alta allinclusive Endorsement 1

(d) Location Endorsement (street address)

(e) entrance Endorsement (vehicular entrance to communal streets and ways)

(f) Contiguity Endorsement (the insured land comprises a particular parcel with no gaps or gores)

(g) Pin Endorsement (insuring that the identified real estate tax permanent index numbers are the only applicable Pin numbers affecting the collateral and that they divulge solely to the real property comprising the collateral)

(h) Usury Endorsement (insuring that the loan does not violate any prohibitions against immoderate interest charges)

(i) other title insurance endorsements applicable to safe the intended use and value of the collateral, as may be thought about upon divulge of the Commitment for Title insurance and peruse or arising from the existence of extra issues pertaining to the transaction or the Borrower.

11. Current Alta peruse (3 sets), [typically prepared in accordance with 2005 Minimum proper detail for Alta/Acsm Land Title Surveys, certified to the lender, Buyer and the title insurer, including items 1 straight through 4, 6, 7(a), 7(b)(1), 8 straight through 11(a) and 14 from the Surveyor's "Optional peruse Responsibilities and Specifications" referred to as "Table A"].

12. Current Rent Roll

13. Certified copy of all Leases (3 sets)

14. Lessee Estoppel Certificates

15. Lessee Subordination, Non-Disturbance and Attornment Agreements [sometimes referred to naturally as "Sndas"].

16. Ucc, Judgment, Pending Litigation, Bankruptcy and Tax Lien search Report

17. Estimation (must comply with Title Xi of Firrea (Financial Institutions Reform, rescue and compulsion Act of 1989, as amended)

18. Environmental Site Estimation narrative (sometimes referred to as Environmental Phase I and/or Phase 2 Audit Reports)

19. Environmental Indemnity bargain (signed by Borrower and guarantors)

20. Site Improvements Inspection Report

21. Evidence of Hazard insurance naming Lender as the Mortgagee/Lender Loss Payee; and Liability insurance naming Lender as an "additional insured" (sometimes listed as naturally "Acord 27 and Acord 25, respectively)

22. Legal thought of Borrower's Attorney

23. Credit Underwriting documents, such as signed tax returns, property operating statements, etc. As may be specified by Lender

24. Compliance bargain (sometimes also called an Errors and Omissions Agreement), whereby the Borrower agrees to correct, after closing, errors or omissions in loan documentation.

It is beneficial to come to be familiar with the Lender's loan documentation requirements as early in the transaction as practical. The requirements will likely be set forth with some detail in the lender's Loan Commitment - which is typically much more detailed than most loan commitments issued in residential transactions.

Conducting the Due Diligence Investigation in a industrial real estate transaction can be time provocative and high-priced in all events.

If the loan requirements cannot be satisfied, it is great to make that determination while the contractual "due diligence period" - which typically provides for a so-called "free out" - rather than at a later date when the earnest money may be at risk of forfeiture or when other liability for failure to close may attach.

Conclusion

Conducting an effective due diligence investigation in a industrial real estate transaction to peruse all material facts and conditions affecting the property and the transaction is of critical importance.

Unlike owner occupied residential real estate, when a house can nearly always be occupied as the purchaser's home, industrial real estate acquired for enterprise use or for investment is impacted by numerous factors that may work on its use and value.

The existence of these factors and their work on on a Purchaser's ability to use the property for its intended use and on the Purchaser's projected investment yield can only be discovered straight through diligent investigation and concentration to detail.

The circumstances of each transaction will conclude what degree of diligence is required. The level of diligence required under the circumstances is the diligence that is due.

Exercise Due Diligence.

Due Diligence Checklists - For industrial Real Estate Transactions

It's Easier to Finance a $5,000,000 Apartment construction Than a particular family speculation asset

Funding has dried up for residential venture property (1-4 family), but it's plentiful for large multi house projects.

1. Funds are ready for large multi house properties, but not for residential venture homes.

Miami Dade Personal Property Tax

President Obama said during his Economic saving Act Speech, "there is no money ready for you speculators" and he meant it. Try to get a loan for a residential (1-4 family) non-owner occupied property and see the results for yourself. There are no more stated wage loans ready for residential investors. If you have been in the residential venture game for a while, you already know it, if you are just beginning out; you will feel this question on your first residential venture deal. Its cash, hard money at 12% and a 65% Ltv or you're done.

The good news is that government backed funds are plentiful for larger, multi-family properties. This presents large opportunities for those who know how to passage the funding sources.

2. You don't have to personally qualify for the loan the properties qualify.

Imagine that! whatever who has ever attempted to buy a residential venture property (1-4 family) has encountered the issue of personally qualifying. Sure the rents may cover part or the entire mortgage, but the lender only considers a percentage of that wage toward your capability to pay the new mortgage. You need, tax returns, financial statements, proof of funds for down payment, etc. Not only that, but of policy your Fico score becomes a big factor. Get straight through all of this and every time you buy another residential property your Fico score drops and you are viewed as more of a risk to the lenders. The more victorious you become in this arena, the harder it gets......

With commercial financing, the properties qualify for the loan, not you. The loan is not reported to the credit bureau's. The more victorious you become, the easier it gets.....

3. Most loans on large multi house properties are fully assumable.

Ever try to assume a residential loan without having to qualify for it? Not happening, at least not since the early 80's when Fha and Va loans went from "fully assumable" to "qualifying assumable". It's the same as having to get a new buy money mortgage, so unless the interest rate is very attractive, it's never done. The first home I ever purchased was a puny bungalow for ,000. It was 1980, I was 20 years old and didn't qualify for a 0 limit MasterCard, but I assumed a ,000 Va loan, no questions asked. The same criteria hold true to this date for large multi house projects, but very few know about it.

The financing on many large multi house buildings are fully assumable. Remember, the properties qualify not the buyer. You can buy 100 + unit apartment complexes without qualifying, no verification of funds, no credit report, no tax returns, just knowledge.

4. You Are Not personally obligated to repay the loan.

Try getting a residential mortgage and tell the lender that you don't want to personally warrant the loan. Not happening! We are accustomed to all loans carrying personal guarantees. It's incorporated into every residential mortgage, by every lender in the country. Of policy they want recourse if you default, they get the property and then have the right to a default judgment for any equilibrium that may be due after they liquidate the property. Residential loans carry "Full Recourse" to the mortgagee.

Larger commercial loans are "Non Recourse" to the borrower. The property and its capability to originate cash flow is the lenders security, not you personally.

5. Multi house Properties are built to Cash Flow, singular house homes are not.

Single house homes are designed, built and price for owner occupants, not for cash flow. Study the numbers on roughly any singular house home and you will observe that after you pay the mortgage, taxes. Insurance, utilities, maintenance, etc, you will lose money every month. singular house homes are terrible for cash flow despite what the residential guru's on Tv tell you.

Multi house properties are designed, built and priced to do one thing and one thing only, "make money". Lenders lend based on the fact that there are sufficient funds to cover the debt obligations, not on what your credit score is, or what the house down the block sold for or what your personal wage was last year, etc.....

6. Professionals carry on the property- No tenants and toilets to deal with.

With residential venture property You commonly have to carry on it. The property has negative cash flow to begin with; there probably is no budget to hire a supervision company to run it. You go from watching the guru on Tv sitting by the pool telling you how great your new lifestyle is going to be once you buy a concentrate of homes, to fielding leaking roof calls and clogged drain problems on Saturday nights.

With the larger properties a pro supervision company handles all of that for you. It's budgeted in just like taxes and maintenance. The lenders want a pro supervision ageement be in place at closing. They handle all the problems; they are staffed for it and deal with repairs, collecting rents, renting vacant units, etc. They send the funds to you. You never have to deal with a singular tenant, yet you reap the rewards. Now you have a lifestyle.

There are many more reasons to move from residential to large multi house along with dramatically addition the property's value by simple rent increases, etc. I encourage whatever investing in residential property to take a good look at spellbinding up to larger properties. It's easier than you think when you get the knowledge.

Copyright (c) 2009 Joe Florentine

It's Easier to Finance a ,000,000 Apartment construction Than a particular family speculation asset

Writ of ownership in Florida

Chapter 83 of the Florida Statutes covers the full spectrum of Landlord and Tenant laws; however, the part is further broken down into the following three cut off Parts:

Part I: Nonresidential Tenancies (Commercial Property)

Miami Dade Clerk

Part Ii: Residential Tenancies

Part Iii: Self-Service warehouse Space

While the Statutes covered within each Part may appear similar, there are exiguous variations within them that greatly alter the rules to be followed by both the Landlord and Tenant.

Here are some tips and guidance to ensue in order for the Sheriff to ensue straight through with the eviction:

Writ Of Possession

In Florida, if and when a Court issues a Final Judgment for removal of Tenant, the landlord still does not have the right to kick a tenant out of the premises. Once the Final Judgment is entered, (1) the Clerk of the Court needs to issue a Writ of Possession, and (2) the Sheriff needs to levy the Writ by going over to the Premises to change ownership back to the landlord.

1. Make sure that the address within the Writ of ownership matches exactly with the address listed in the Final Judgment. Because the Clerk may not issue the Writ if it is different, copy/paste the address in the Final Judgment directly into the Writ of Possession.

2. If the Tenant occupies more than one premises (that are adjoining), you need to list all of the addresses within the Final Judgment and Writ of Possession, and make sure to additionally supply that one of the addresses is to be "used as the legal and mailing address". Otherwise, the Sheriff may payment a higher fee for conducting multiple evictions.

3. Make sure that the addresses listed within the Final Judgment and Writ of ownership are clearly indicated on the actual premises. If the Sheriff cannot find the address marked on the premises, they will cancel the eviction. Therefore, if the address is not affixed the premises, carry a magic marker or paint and make sure to write the address somewhere for the Sheriff to see it.

4. When delivering the Final Judgment and Writ of ownership to the Court, consist of cost to the Sheriff for their fee to execute on the Writ of Possession.

Residential vs. Market Evictions - Writ of ownership

Once the Sheriff obtains the Writ of ownership from the Clerk, the Sheriff is required to execute the Writ in accordance with the Florida Statutes.

Based upon the above information, if man owns Market asset in Miami, or Market warehouses in Florida, they need to abide by the Florida Statutes - Part I.

I have listed below the relevant Statutes for the Sheriff to ensue for residential and Market evictions.

Statute for Residential Evictions:

83.62 resumption of ownership to landlord.

(1) In an action for possession, after entry of judgment in favor of the landlord, the clerk shall issue a writ to the sheriff describing the premises and commanding the sheriff to put the landlord in ownership after 24 hours' notice conspicuously posted on the premises.

Statute for Market Evictions:

83.241 removal of tenant; process.

After entry of judgment in favor of plaintiff the clerk shall issue a writ to the sheriff describing the premises and commanding the sheriff to put plaintiff in possession.

As you can notice above, because the Statutes were set up to favor residential tenants, the residential Statute requires that the Writ of ownership cannot occur until "after 24 hours' notice conspicuously posted on the premises".

Because the Sheriff's Office may not be aware either they are handling a residential or Market eviction, they tend to always saunter under the residential Statute (providing 24 hour notice to the tenant). Therefore, if you are handling a Market eviction, make sure to recommend the Sheriff's Office by adding the following somewhere in effect for them to notice within the Writ of Possession:

Note To Sheriff: This is Market asset Do Not Post 24 Hour Notice

When the Sheriff's Office calls the landlord with the day and time they will execute on the eviction, make sure to do the following:

Show up early. If the Sheriff shows up without the landlord or its representative present, the Sheriff will leave, and the landlord will have to reschedule the eviction and may have to pay an further fee to do so.

Bring a magic marker to write the asset address on the premises just in case the tenant removed it.

Bring a locksmith, and make sure they arrive before the Sheriff. While you may think that you have a copy of the key, if the tenant changed the lock in the middle of the night, the Sheriff is not going to wait for you to then call a locksmith. You will then be required to reschedule a Writ of ownership at the premises.

Writ of ownership in Florida

Florida's Amendment 1 - What It Means to You

On January 29, voters spoke loud and clear. Amendment 1 passed with nearly 65% of the vote - an marvelous percentage. With the duct of Amendment 1, many habitancy will be looking some major changes in their tax bills. Are you one of them? Here's quick rundown on the four sections of Amendment 1, what each section is, and how it might apply to you.

Part 1: Portability

Miami Dade Personal Property Tax

The first part of Amendment 1 allows those who received a homestead exemption to transfer their Save Our Homes advantage to a new home under inescapable conditions. Under the old system, many habitancy were "trapped" in their homes - unable to move because a move would mean a drastic increase in their taxes. The large increase in tax was due to the each year 3% cap that a homesteaded property is privy to. So if property values increased more than 3% every year, a homesteaded property's assessed value capped out at 3%. You can see that a homeowner that has resided in a home for a number of years would see a substantial tax advantage by means of a lower assessed value. Under the old plan, each time you purchased a new home, you lost any accumulated tax advantage from your old home and the assessed value reset to the store value of your new home.

Under the new amendment, you get to take your accumulated tax advantage with you as long as you apply it to someone else homestead within two years. A jobber that had homestead exemption in 2007, and who whether sold or abandoned their homestead in 2007 will be eligible to take their Save Our Homes advantage with them if they move to a new home in 2008 and apply for homestead portability. From 2008 onward, you can take your Save Our Homes advantage with you as long as you transfer it within the same year or the following year.

In order to receive this benefit, you must apply by March 1, 2008 to your property appraiser for your new homestead exemption and for the transfer of the "Save Our Homes" advantage to your new homestead for 2008.

In order to take advantage of portability, you have to make two isolate applications - one for your new homestead exemption, and one to transfer the Save Our Homes advantage for 2008. You'll find the application forms Dr-501T and Dr-501R on the Florida group of revenue website.

Here's a quick Faq with regard to portability:

1. How much is the portability advantage worth?

You can transfer up to 0,000 of portability advantage to a new homestead. If your new homestead is worth more than your old one, you transfer the dollar amount. If your new homestead is worth less than your hold one, you transfer the percentage. For instance: your current homestead is assessed at 0,000, but under Save Our Homes, 0,000 of that is exempt. If you move to a new home that is assessed at 0,000, your portability advantage will be 0,000. If you move to a new homestead that is assessed at 0,000, your portability advantage will be 50%, or 0,000.

2. Is the turn of homestead and transfer of Save Our Homes automatic?

No. You need to apply for each advantage separately.

3. How do I apply for portability?

You plainly turn in a completed application form to the office of the county appraiser in the county in which your new homestead is located.

4. Does portability only apply if I buy a new home?

No. If you already own a second property, you can transfer your homestead exemption to one property to the other and transfer the Save Our Homes advantage as well. Make note that your Homesteaded property must be your primary residence.

5.Am I eligible for portability this year?

If you filed to give up your old homestead after January 1, 2007 and are claiming a new homestead for 2008, you're eligible, but you have to file your application for portability by March 3, 2008.

Part 2: added ,000 Homestead Exemption

The second part of Amendment 1 is an added ,000 homestead exemption. The exemption is ready to whatever who is already claiming the primary ,000 exemption. In order to claim it, you don't have to do anything. It will automatically be applied to your 2008 tax assessment. In Hillsborough County, the median savings will be 0-300 per household. This is how it will be calculated:

First 25,000 of value - exempted from taxes

Second 25,000 of value - fully taxable

Third 25,000 of value - exempted from all taxes except the school taxes

Why isn't the second 25,000 of value exempt? It is designed to safe cities and towns within Florida that may have many lower assessed property values, particularly in more rural areas. If the exception applied to the second 25,000 of value, many of these cities and towns would not secure adequate revenue to run their local governments.

Why does the second 25,000 exemption still allow for the schools taxes to be collected? simple reply is that the revenue is needed to fund our schools.

Part 3: Tangible Personal property Exemption

According to the Dor:

Tangible personal property is all goods, chattels, and other articles of value. It includes: machinery, equipment, furniture, fixtures, signs, window air conditioners, supplies, leased, loaned, borrowed, or rented tool used in a business, movable home attachments on rented land (carport, screened porch, Florida room, etc.) furniture and appliances in rental properties.

The third part of Amendment 1 is a ,000 exemption on all tangible personal property. Business owners must faultless the Tpp return and file it by April 1 each year. If it's determined that your total tangible personal property is less than ,000, you won't have to file again. The first ,000 of tangible personal property is exempt from taxation under Amendment 1.

Part 4: 10% Non-Homestead evaluation Cap

The final part of the amendment is a 10% limitation on evaluation of non-Homestead property, both residential and non-residential. As of January 1, 2008, state law requires that all non-homestead property be assessed at just store value, and be reassessed annually, but the turn resulting from the reassessment can not exceed 10% of the current assessed value, and the assessed value can not exceed the store value. In 2009, owners of non-homestead property will be able to apply for the 10% non-homestead evaluation Cap.

In practical terms, that means that as of January 1, 2008, the assessed value of your non-homestead property will be equal to its store value. If your property is appraised at 0,000, it will be assessed at 0,000 for tax purposes. In 2009, if you apply for the 10% Cap, the property evaluation can not be any higher than 5,000 - 10% above this year's assessed value - no matter how much the store value increases. If the store value of the property is less than that, then the assessed value can be no higher than the store value.

You'll find any forms needed to apply for the varied exemptions at the Dor web site or at your county appraiser's web site.

Florida's Amendment 1 - What It Means to You

The Elements of a industrial Lease - A Tenant's Perspective

A lease is an business transaction granting use or occupation of real property during a singular duration in transfer for a specified rent. At common law, the lease was traditionally regarded as a conveyance of interest in land, subject to the religious doctrine of caveat emptor ("let the buyer beware"). The landlord was only required to deliver possession to the tenant; the tenant, in return, was required to pay rent to the landlord. Davidow v. Inwood North professional Group, 747 S.W. 2d 373, 375 (Tex. 1988). The modern market lease, however, is a involved instrument that spells out many aspects of the relationship in the middle of landlord and tenant, including tenant's use of the property, services that will be provided by the landlord, allocation of costs connected with maintenance of the leasehold, responsibility for utilities, improvements to the premises, insurance, assignment and subletting, events of default, remedies of the parties, expansion rights, and options to enlarge the lease term.

Commercial leases can be described in four categories: gross, modified gross, triple net, and absolute net. A gross lease does not want the tenant to reimburse the landlord for any of the expenses that the landlord might incur in performance of the premises. Under a gross lease, the tenant pays base rent and the landlord absorbs all costs for common area maintenance ("Cam"), real property taxes, landlord's insurance, and other charges connected with the performance and maintenance of the property. A modified gross lease typically requires the tenant to reimburse landlord for "pass through" costs over a stated price stop or base year. For example, the tenant may be required to reimburse landlord for all Cam over .00 per quadrate foot, or alternatively, the tenant may be required to reimburse landlord for all Cam in excess of base year 2005. In most situations, the market tenant will be asked to sign a "triple net" lease, which requires the tenant to reimburse landlord for Cam, real estate taxes, and landlord's insurance. The "pass through" costs included in a "triple net" lease can vary, and can comprise added items other than just Cam, taxes, and insurance. Thus, a prospective tenant will be well served to impart a proposed lease with counsel to ensure that tenant understands the nature and type of pass straight through costs it will be improbable to suck up under the lease. Also, in distinct circumstances, a landlord may utilize a "net" or "absolute net" lease, which requires the tenant to suck up All costs of maintenance and performance of the property, including capital expenditures and major repairs. Typically, an absolute net lease is utilized where the tenant is the sole and 100% occupant of the construction - for example, a bistro or an office construction occupied by one tenant.

Miami Dade Personal Property Tax

Commercial leases can be added described by the type of use connected with the property - office, retail, warehouse, pad, or "ground". An office lease is ordinarily used in buildings intended for non-industrial business use. sell leases are ordinarily utilized for shopping malls and strip centers. storage leases are ordinarily seen for market or light market uses. Pad or ground leases are often used for bistro premises or for premises where the tenant will be responsible for construction and maintaining the structure. Texas law does not want a market landlord to utilize any definite form of lease, and the type of lease a prospective tenant may be faced with signing will vary by the type of building, intended use of the premises, and preference of the landlord.

The lease's duration and base rent are of primary point to the market tenant. Usually, a market lease is for a term of 5 to 20 years with fixed escalations in base rent or escalations based on an economic index, like the buyer price index. Also, the tenant may be offered options to enlarge the lease term or improve into adjacent or other areas of the property. Depending on the property and the landlord, lease term and base rent may be negotiable. As a general rule, the larger the space tenant intends to occupy, the greater the flexibility the landlord will show in negotiating provisions in the lease. However, if a property enjoys a high occupancy rate, a landlord will be less likely to show leeway in negotiating the economic terms of the lease. Yet, I am reminded of two great adages of the market world: (1) all things is negotiable; and (2) if you don't ask, you won't know.

Also, a tenant should take care to read and understand the description of the premises contained in the lease. Most market leases are based on "rentable quadrate feet", a estimate which is normally larger than "usable quadrate feet". The tenant's rent and responsibility for refund of pass-throughs (Cam, taxes, insurance, utilities, etc.) are normally based on the rentable quadrate feet of the premises. Discrepancies in quadrate footage and boundary lines should be resolved prior to performance of the lease, or the tenant could face unforeseen costs or possible litigation.

Many landlords offer a tenant "build out allowance" as an inducement to lease the premises. These sums, however, do not describe "free" money and landlord's payment of the discount is tied to definite conditions in the lease. For example, if the tenant breaches the lease and abandons the premises prior to the end of the lease term, the tenant may have to repay the build out allowance, along with landlord's other damages. The tenant should make sure it understands when and under what circumstances the build out discount will be paid.

Additionally, the tenant should understand his "lease commencement date" and "lease expiration date". The lease commencement date may or may not be on the date tenant occupies the premises. Also, the landlord may have promised the tenant a 60 month term but the lease could provide a fixed expiration date for a term of less than 60 months. Again, rigorous scrutiny of the lease is required.

In increasing to base rent, the tenant customarily will be asked to pay "additional rent", which constitutes pass-throughs (Cam, taxes, and insurance) and any other charges that landlord might deem to comprise in your lease. Cam, pass-throughs, and other charges reimbursable under the lease are the primary source of tension in the modern market landlord/tenant relationship. The tenant wants the certainty of knowing what his rent and charges are going to be on a monthly and every year basis. The landlord wants protection from unexpected rises in taxes or the costs of providing services to the property. The key: read your lease and Know every fee you will be faced with once your tenancy begins.

In the sell context, in increasing to base and added rent, the prospective tenant is often asked to pay landlord a division of tenant's gross sales on a monthly or quarterly basis. The landlord normally justifies these charges as a necessary component of compensating landlord for providing a vibrant mall or strip center for tenant to conduct business. In most commercially viable sell property, payment of division rent is unavoidable. However, the "breakpoint" and estimate of division rent should be negotiated.

Another area of point to the market tenant is the services that will be provided by landlord and refund of landlord for those services. Similarly, tenant should understand those services that landlord will not provide, because tenant will be responsible for those services as an out of pocket expense. Further, unless the lease is gross, the landlord should recognize the components that constitute the costs of operating the "common area" for which it seeks refund straight through tenant's monthly Cam charges. The definition of Cam varies from lease to lease based on landlord preference, the type of property, and the negotiations of the parties. If a gross lease is not available, the tenant should negotiate the items to be included in Cam, the items that will not be included in Cam, and an every year cap or limit on expenses that landlord may attempt to pass straight through to tenant.

The landlord will normally want refund for tenant's share of real property taxes and landlord's insurance costs. The lease should provide a definition of "tenant's share" or "tenant's proportionate share" based on the quadrate footage tenant will occupy versus the quadrate footage of the building. The market tenant must have a full understanding of all these provisions prior to signing the lease.

Key provisions in the market lease define the events of tenant's default and landlord's remedies for tenant's default. The tenant should also address what constitutes landlord's default and tenant's remedies. Tenant default provisions are normally defined by two categories: (1) economic defaults; and, (2) non-economic defaults. Economic default provisions deal with failure to pay rent, failure to pay for charges assessed under the lease, failure to pay taxes when due, etc. Non-economic default provisions typically refer to other provisions in the lease - use of the property, hours of operation, or failure to provide services required by tenant under the lease. It is necessary that the tenant have a full understanding of (1) what constitutes an event of default; (2) tenant's right to cure, if any; and (3) landlord's remedies for tenant's default.

Assignment and subletting provisions are also foremost to the tenant. Texas law prohibits subletting without the consent of the landlord. Tex. Prop. Code §91.005 (2005). If the tenant desires to sell the business, merge with another business, or convert the entity under which it conducts business, lease provisions regarding assignment and subletting will come into play. Many leases provide that the tenant may assign or sublet the premises with the consent of the landlord, which consent "shall not be unreasonably withheld". Obviously, the more flexibility the tenant has in its assignment and subletting provisions, the more flexibility the tenant will have in the conduct and prospective sale of its business.

The modern market lease will normally address landlord and tenant's responsibility for accidents and personal injury, casualty, damage to the building, and eminent domain. These provisions vary by jurisdiction, landlord, building, tenant, and use of the property. The tenant should impart these provisions completely with counsel to see if they meet the tenant's risk expectations with respect to the property.

The tenant may also seek options to enlarge the term of the lease. The option clause should state the estimate of options available to the tenant, the term of each option, the rent for each option duration or the method for determining rent for each option period, and the method tenant will utilize to practice the option. Also, the tenant may want to comprise expansion possession connected with the premises, which can comprise a "right of first refusal", "right of first offer", or a general expansion right granted with respect to distinct space or areas in the construction or property.

In sum, the market lease will address, in great detail, the aspects of the relationship in the middle of landlord and tenant, and will vary by use, location, landlord preference, tenant bargaining power, and jurisdiction. In Texas, there are very few statutory regulations governing the landlord/tenant relationship, and most characteristics of that relationship will be defined by contract. There is no "standard" form of market lease and the provisions that can be included in the lease will be thought about by the creativity of the parties and their counsel. As with any other contract, the tenant should Know What It Is Signing. The consequences of signing a "bad lease" can comprise unforeseen expenses and business failure.

The Elements of a industrial Lease - A Tenant's Perspective

Buying A Condo Unit In Florida? think These Factors First

The word condominium refers to a building or residential complex, wherein the units of property, such as apartments, are owned by individuals, and the tasteless areas of the property, like the hallways, grounds, other public amenities and the building itself, are jointly owned and maintained by the unit owners.

Florida is known as the Sunshine State, and is a preffered vacation destination by Us and international tourists. The state has a lot of great cities, towns and urban enclaves,which offer home buyers a wide array of choices. Agreeing to real estate marketing veterans, there are many aspects to think when selecting the right condominium unit here, as different properties are right for different personal preferences or budgets, and the factors to be discussed in this report ordinarily applies to approximately any area in the Us as well.

Miami Dade Personal Property Tax

Selecting The Right Area Goes In Tandem With The Way You Intend To Use The Condo

It's leading that one needs to look at the nature of a locale, or area, a sin this state, there are both residential and seasonal condominium areas. A lot of the locations here could be be one or the other. selecting the approved location also goes hand in hand with the manner in which you intend to use the condo you buy, as well as if you are buying one as a second home or for permanent residency purposes.

Figure Out How You Will Use The Property

In properly figuring out just why you need a property, and how you intend to use it now and in the future, must be done prior to seriously choosing on a purchase. You need to find out the basic classification of use, whether the unit or building is for residential or second home use, for long-tern rentals, or a residential or second home that could be rented out during peak periods.

Understand the Local Real Estate Market

Getting a much deeper and great understanding of local real estate markets may be a bit tricky process, since you often need to have all the info required about a exact area or location. These tend to be -markets within a market- and have relative security levels, and you need to know that you will be a participant in the local housing market once you own and the same should you need to sell it someday.

Know A Condo's Use Before Buying One

As each condo improvement in this state, and other area, has an approved use Agreeing to the way it was developed, and the intention of the owners who have bought into it. There are also documents that are filed with the local city or town that outline these terms, which would be ordinarily be reviewed or read by you prior to the purchase.

Look At Your present And hereafter Needs

By analyzing your your present needs, like do you need to use rental income to pay the mortgage for right now until you sell your house and constantly relocate?. Helps to properly dictate what type of buy you will be making. You may want a house or condom, and you may not need to rent it at all and wish to choose a totally residential area where rentals are not conducted. In addition, you may wish to get a condo unit that you can use for a vacation, to one that allows aggressive rentals that you feel will increase rapidly in terms of equity, and then resell it later and buy a more residential property in the same area someday.

As a reminder, you'll be given a opportunity to analyze the items from the condo before you buy it, and you also will have entrance to leading items like building rules and regulations, along with other policies like allowing or banning pets or prohibiting market vehicles. Before you buy one, you will also be able to recapitulate budgets for carrying out of the tasteless property and its financial statements as well.

This is crucial, because you agree to pay your measure of expenses for the tasteless property Agreeing to your level, or percentage of ownership. Lastly, you need to remember that you should treat each property as a separate company being operated that you are buying into, as you will also be paying a maintenance fee Agreeing to the operating budget, condition and funding for hereafter items in the structure, so you need to be comfortable with those aspects.

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Buying A Condo Unit In Florida? think These Factors First

Florida Passport - Where to Apply For a Passport in Florida

American citizens that live in Florida have three options when it comes to obtaining a new U.S. Passport. They can apply at a local passport application acceptance facility, a regional branch or a expert expediting service. The location you pick will depend on a few factors. Let's look closer at each option.

Florida Passport Offices

Miami Dade Clerk

The first option, which takes the longest estimate of time to process, is to apply at a Florida passport application acceptance facility. These facilities are most often located in local post offices but they can sometimes be found in public libraries or county clerk's offices.

Residents of Florida will find at least one passport office in each of the following counties: Alachua, Baker, Bay, Bradford, Brevard, Broward, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, Dade, De Soto, Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Indian River, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Martin, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Saint Johns, Saint Lucie, Santa Rosa, Sarasota, Seminole, Sumter, Suwannee, Taylor, Volusia, Wakulla, Walton, Washington.

There are a few counties that do not have a passport application acceptance facility. In this case, you need to look in neighboring counties. Dade County has the largest estimate of passport offices with at least forty-two. The state capital has three locations. Here is the address of a incorporate of these.

Leon County Clerk of Circuit Court
313 S Calhoun road Suite 101
Tallahassee, Fl 32301

Tallahassee Main Post Office
2800 S Adams Street
Tallahassee, Fl 32301

Routine processing takes four to six weeks. Expedited service will get your application processed in two to three weeks. If you need to get your passport faster, then you will have to pick an alternative method.

Miami Passport Agency

Another location where Florida residents can apply for a new passport is the Miami Passport Agency. This regional branch attends American citizens who need to get their travel document in two weeks or less. Regional agencies process same day passports. The address is given below.

Omni Center
1501 Biscayne Boulevard
Suite 210
Miami, Fl 3313

The first step to applying for expedited passport service at the Miami branch is to set up an appointment. You do this by calling 1-877-487-2778. While peak travel seasons, the line can come to be congested. It may take some attempts before you are able to schedule your appointment.

The regional branch is open from 8:00 am to 3:00 pm, Monday straight through Friday except for national holidays. They are not open on weekends.

You are encouraged to arrive a little early since you have to pass straight through the security check. You will then be directed to the standard room where you will take a estimate and wait to be called. When your estimate is shown, you direct yourself to the standard desk and submit the application form and supporting documents to the passport agent.

If all your documents are all accepted, you will be asked to return later to receive your passport. This will very likely be the same day. Problems with your documents can delay the process. To avoid this, it is prominent that you verify all the requirements and consequent them carefully.

Professional Passport Expediting Services

Florida residents, who must get a passport speedily but cannot personally visit the Miami agency, can still get a passport in a hurry by applying straight through a expert expediter. Expediters are registered with regional agencies for the purpose of submitting applications for American citizens who cannot do it themselves.

While there are some expediting services that control in Miami, it is good to pick one that has offices in other locations as well. The infer is that the regional passport agencies limit the estimate of same day passports that each expediter can invite at each agency. Expediters that control straight through some agencies can submit a larger volume of same day passport applications.

Expediters have been nearby for decades and are a great resource when you are in a bind and run the risk of having to cancel your trip.

Florida Passport - Where to Apply For a Passport in Florida

Types Of Liens On Real Estate

-A lien is a legal recorded claim against a property. The claim encumbers the asset as a means to obtain money owed, such as a mortgage, asset taxes, or an unpaid debt owed to a undertaker of a package deal who performed work on the property. There are other reasons liens are recorded against a property.

-Equitable lien. When a asset is held as collateral and the parties agree in a document, that the asset is used to obtain the debt.

Miami Dade Personal Property Tax

-General liens. These liens all real estate and personal property. Court ordered judgments, probate actions, and Irs taxes fall under this category.

-Judgment lien. This is the consequent of an activity by a party or government division through a court of law to obtain payment on a claim.

-Involuntary lien. State statues originate real estate asset taxes. These taxes are a claim against the asset and the asset owner assumes the model when purchasing a home. Unpaid taxes can consequent in a exact involuntary lien.

-Specific liens. Special assessments and mechanics liens fall into this category. Unpaid contractors from home repair and remodeling projects can file a exact lien. Homeowner associations and local governing bodies can issue Special assessments for repairs and improvements. Failure to pay these Special assessments can consequent in lien being settled against a property.

-Voluntary lien. When you have a mortgage and voluntarily agree that the mortgage lien is safety for the lender in case you default on a mortgage loan.

Types Of Liens On Real Estate

Broward County divorce Records

Broward county is situated in the southern United States, in the state of Florida. It is the second most populated county in the state and the 16th most populated one, in the United States. It is surrounded by many counties such as Miami-Dade in the south, Palm beach in the north, Hendry on the northwest and Collier to its west. Broward is the only county in United States surface the northeast which comprises of top number of population with Italian-American ethnic background. Like in all other counties Broward county disunion records is maintained the local government agency.

You can have way to all the information on Broward county disunion records by just visiting the local office. You can get information such as the date of filing of divorce, the calculate for divorce, the personal information of the person - with regards to their name, age, place of house etc. The records are kept open for collective access. population can have way them through the files maintained by the government agency.

Miami Dade Public Records

You can quest Broward county disunion documents for free if the definite article that you are are seeing for is available with the agency. However, if you want to get the perfect disunion records, you can obtain it by paying money. It would cost you only a nominal number in the middle of -.

If you don't want to physically visit the local government office, you can actually get the required information by going online. One of the easiest ways to get disunion records is to visit a website that maintains a database of these documents. On such a website, you can quest through all the Broward county disunion records with in seconds. This saves your time and gets you all the required information at the click of the button. Also, you can save your money on purchasing the record. You can get a monthly web subscription for less than .

Broward County divorce Records

Top 10 Colleges in America: Ranked according to Total student habitancy (The Big 10)

Top Ten Schools agreeing to Population

More Americans are selecting to go to college more now than ever before. This is due to many older Americans selecting to go back to school and pursue past dreams and passions. There are also more opportunities available for financial aid and grants than there ever has been before.

Miami Dade Public Records

The National center for study Statistics expects to see a steady growth in colleges and scheme the numbers to growth by 13 to 20 percent in the next ten years. up-to-date statistics show that there were 14 million students attending colleges in 2002 and this frame increased to more than 17 million in 2004.

Based on enrollment records from 2004, here is the Top 10:

1. University of Phoenix Online: Total student population - 115,794

o The University of Phoenix Online is a for-profit online school that allows students to study at an accelerated pace with flexible scheduling. The courses and content allow students to earn a degree in less time and are more focused on jobs and careers.

2. Miami Dade College: Total student population - 57,026

o Miami Dade College is a state-sponsored community college that offers associate's degrees on eight different campuses and straight through Internet courses. In 2003, Miami Dade College also began gift Bachelor of Science degrees in education. Enrollment numbers are high because students can study at some different campuses and they offer affordable courses to local residents with low-income or English as a second language.

3. Ohio State University, Main Campus : Total student population - 50,995

o Ohio State University is a very large school and their undergraduate programs highlight more than 170 majors. Students have a wide range of options to pick from. They also offer exploration programs to help students find the major that is right for them. Not only do they have a large estimate of undergraduate majors but they also have 110 graduate programs for students seeking a graduate degree. Ohio State is also favorite as they are a Big 10 school and they are all the time ranked highly amongst the best college football teams.

4. University of Minnesota, Twin Cities : Total student population - 50,949

o The University of Minnesota is a communal university and a land-grant college. They have a strong tradition of excellence in study and communal service. They are one of the most highly ranked colleges with over 147 majors and thousands of courses. The University of Minnesota is the nation's top communal study university and they highlight state-of-the-art educational facilities for studying and research.

5. University of Texas at Austin: Total student population - 50,337

o Affectionately known as Ut across the state of Texas, the University of Texas at Austin is the largest college in The University of Texas System. They are a major study campus and they offer business, facts and law, study and engineering programs.

6. Arizona State University, Tempe Campus: Total student population - 49,171

o The Tempe Campus is the foundation of Arizona State University. The campus focuses on learning, development of new knowledge and service. The Tempe Campus opened in 1885 and is the most favorite campus in the Arizona State University system.

7. University of Florida : Total student population - 47,993

o The University of Florida is Florida's oldest and most whole university. They are an ideal location for students studying for health professions and highlight the McKnight Brain develop and the Genetics and Cancer study Center.

8. Michigan State University: Total student population - 44,836

o Michigan State University has been an innovative college with a global reach for over 150 years. Msu is also known for its large study abroad programs, which ranks as one of the three largest in the nation.

9. Texas A&M University: Total student population - 42,435

o Texas A&M University offers more than 150 courses of study straight through some different colleges. They have awarded more than 320,000 degrees and more than 70,000 graduate degrees. They also have anticipated numbers on student retention rates.

10. University of Central Florida: Total student population - 42,465

o The University of Central Florida is placed in Orlando. The goals of Ucf contain becoming the undergraduate study in Florida and accomplish international prominence in graduate and study study.

Top 10 Colleges in America: Ranked according to Total student habitancy (The Big 10)