We’ve been looking into wild wolf society to help us understand the instinctive dog behavior (both good and bad) that we observe in our pets. We find a fascinating organization and rigid structure in wild wolf society, with prompt, consistent, and fair discipline and clearly drawn lines of leadership, support, and boundaries. The importance of the coordinated participation of each rank of wolf pack in hunting, territorial fights and really in all other moments, helps us to understand the roles of dogs with different personalities, how they seek to interact with us and with other animals. , and the kind of leadership and limits that your pet dog expects of you, without which he is miserable!

A wolf’s sense of smell is at least 20 times stronger than ours (and so is your domestic dog’s). The hearing of a wild wolf is more than 40 times better. So the scent of an encroaching wolf pack is picked up by the pack that owns the land, even if they are hours away from the intruders. The wind carries smells and sounds.

Territorial fights are rare between rival wolf packs. Nine times out of ten, the invading wolf pack flees when the wild wolf pack owning that land shows up. Even if the owning pack consists of only three wild wolves and the rival wolf pack consists of nine, the intruders will still run away. The landlord is the winner.

If the intruders refuse to leave, the alpha male leaders will start a fight. Wolf pack members from both sides will stare to see who will win. (Mares do the same when stallions fight.)

The two alpha leaders rarely choose to spill blood on each other. It’s more a matter of who raises his head higher, or the first to be pinned on his back has lost.

Sometimes during the fight, in a clever plot, a wild wolf from the defending wolf pack’s side will cross over to the other pack and steal a couple of teenagers. The intruder leader will notice the robbery and therefore lose the fight due to the distractions. Victor Alpha’s leader won’t let the teens back. They will become part of his wolf pack.

After a fight, the victors mark their borders. They completely drench the edges with a scent so potent it would make human eyes water. They groom and lick every bit of the new members to remove the scent of the old wolf pack, and then rub their own scent on them.

Contrary to popular belief, much of the communication between rival wolf packs is just that, communication, and not a challenge or threat. Alpha leaders constantly howl to each other about things like how that year has been for them, if the pack is doing well or if they’ve had a rough time, their victories, how much stronger the pack has grown, and so on.

Wild wolves also howl friendly greetings to their relatives. For example, an adolescent female may cross over to a rival wolf pack and become part of it, never to return to her birth pack. Still, those in your birth wolf pack will shout news and greetings to you. Family members can cross territorial borders for a visit if they first receive an invitation; without an invitation, however, the visitor would be combated for trespassing the border. Her own pack would attack her too, because that’s against wolf law.

Rival wolf packs always respect each other, and their respective alpha leaders honor each other’s position as pack leader. They acknowledge the accomplishments and activities of the other wolf pack.

Sometimes a wolf pack is led more by its female alpha than by a male alpha leader. There is no sexist attitude in the world of animals. She will scratch the ground and raise her leg to remind trespassers of the proper border. Only the alpha pair raises legs to score. All other members (male or female) squat. If a territorial dispute arises when one of the wolf packs is led by a female, the dispute could be resolved by a contest of voices (howls) rather than an actual battle in which the pregnant leader could not participate.

So, as you can see, turf fights aren’t all that common among wild wolf packs, and when they do occur, bloodshed is rare because things are normally resolved otherwise. Wild wolf society is replete with rules that apply to all wolf packs and give its members stability.

My last post, Service Animals/Emotional Support Animals: What You Need to Know, discussed the fact that if you own rental properties, you need to be aware of the laws around service and emotional support animals. We cover the rules set forth by the ADA, but there are 2 agencies that create regulations regarding these animals:

1. The Americans with Disabilities Act (ADA)
2. The Fair Housing Act (FHA)

Here we will discuss the additional laws established by the FHA. Please note that ADA covers commercial areas where FHA covers residential areas. Also, the ADA does not cover emotional support animals, but the FHA does.

The Fair Housing Act – protects tenants from landlord discrimination. Prohibits discrimination in the sale, rental, and financing of housing on the basis of race, color, national origin, religion, sex, familial status, or persons with disabilities.

Fair Housing Amendments Act (FHAA) of 1988:

• Assistance Animal: An animal that works, provides assistance, or performs tasks on behalf of a person with a disability or provides emotional support that alleviates one or more symptoms or effects of a person’s disability.
• a service animal does not have to be individually trained or certified
• once a service animal is approved, the landlord cannot collect any fees or deposits associated with the pet
• the landlord may not impose breed or weight restrictions on an assistance animal

What you may require:

• the prospect or resident must have a disability within the meaning of the Fair Housing Act
• there must be a need related to the animal’s disability

Allowed problems:

• Is the disability apparent or known?
• Is the need related to the animal’s disability apparent or known?
• If both the disability and the disability-related need of the animal are apparent and known, you may not ask any further questions and may not require any additional verification or documentation.
• If the disability is not apparent or known, you may request reliable documentation of the disability and disability-related need for the service animal.

For emotional support animals, you may request documentation from a physician, psychiatrist, social worker, or other mental health professional that the animal provides emotional support that alleviates one or more of the identified symptoms or effects of an existing disability.

You may deny an accommodation request when:

• would cause undue financial hardship to the property
• would create an administrative burden on the property
• the specific animal would be a direct threat to the property or would cause substantial physical damage to the property
• if there is insufficient verification when the disability is not apparent

The potential client/tenant can request your animal from you in almost any way, even something as simple as writing their request on a sticky note. There is no formal application form and you cannot require them to use one that you create.

Your next step is to request that the doctor or medical provider provide written verification. Again, you don’t have to be on a specific form. You must accept third-party verification that the applicant has a disability within the reliable meaning of the Fair Housing Act and that there is a disability-related need for the animal.

Without sufficient verification, the applicant may be denied. And, be warned, there are many sites online that provide certifications without requiring any disability verification.

How the ADA and FHAA are different:

• The ADA applies to areas of public accommodation. It does not apply to areas of the property that are not open to the general public. (ie, service animals must be allowed into the leasing office).
• FHAA applies to the entire property. (Qualified service and emotional support animals must be allowed to live in your rental property.)

Most of your concern as a landlord will relate to the regulations set forth by the FHAA.

Wow, there’s a lot in those 2 messages. What has been your experience with service animals?

As I mentioned in the last post, this topic was discussed at our HOA Meeting. If you have any further questions or need legal assistance on this matter, please contact our speaker, Attorney Sean Doyle, [email protected], 919-256-4295.

Most millennials are now in their 20s and 30s, beginning a career climb and also the time when they are making major financial decisions. These financial decisions may include home ownership, investment strategies, and family planning. You certainly want to try to avoid some of the financial risks that have occurred in the lives of previous generations.

Financial education is rarely taught in school, so if you didn’t learn it at home growing up, your first time in the “real world” may cause you financial problems. Read below for some top financial tips to help millennials make smart financial decisions.

Take Online Money Management Courses

Since most millennials excel in technology, I would suggest enrolling in basic economics, accounting, and budgeting courses. These types of courses can be very affordable and very well taught by the online teacher. I feel this is a very efficient way to get updated on financial topics that can simplify and improve your financial life.

Accumulate your retirement savings

Did you know that Wells Fargo revealed that almost 50% of millennials were not planning for their retirement? Be sure to participate in your employer’s 401(k) plan, even if you can only contribute the minimum each month.

Make a list of your entire financial picture

I recommend you make a list of everything you spend each month. After you have digested this information, ask yourself this question. How am I going to pay for all this? There are also four essential things everyone should know about their finances: income, expenses, assets, and liabilities. Having a firm grasp of these elements will help you understand your finances. There are many online tools that can help you connect all your accounts: Mint, Quicken, just to name a few. I think this is your first step to improve your finances.

Research passive income opportunities

Most of us work for money all our lives and never really put it to work for us. It is possible to use the income from your job to earn passive income from your investments. For example, the IRS says that passive income can come from two sources: a rental property or a business in which you are not actively involved. Not make mistakes; Passive income is not about getting something for nothing. It involves a lot of work and is definitely not a get-rich-quick scheme.

start a savings account

Open a deposit account at your credit union, even if you can’t make regular deposits. You can use this account to save extra money for your short-term and even long-term goals. This can also be used as your emergency fund. It takes from 3 to 12 months of expenses, reserve for emergencies.

pay yourself first

Once you have money in your hand from your paycheck, IRS refund, etc. always pay yourself first. Set up automatic transfers from your checking account directly to your stock account every payday or monthly.

Do you know the impact of your credit score?

Everyone, but especially entrepreneurial millennials, should understand that their personal credit can be the determining factor in obtaining working capital in the future. Getting approved for a loan can be a big challenge when your credit score is low. Learn to read your credit report and check it often.

Reduce your debt faster

Pay off small debts first and gradually tackle larger ones. This will allow you to see results and stay motivated.

Get help from a trusted mentor

There is an overabundance of financial education information online. However, picking the brain of someone you know and trust is better. Their knowledge is often tailored to your specific needs.

Eliminate additional costs

It’s a proven fact that millennials have expensive clothes ($5 lattes every day, eating out regularly, designer fashions, etc.). Keep a close eye on your spending and cut back where you can.

Raise your children to be financially savvy

At this point, you may already have young children or plan to start a family. Teach them that saving money is essential. When they are old enough, take them to your credit union and help them open their own accounts. Hopefully this will motivate them to continue saving their own money.

I hope you’ll use these financial tips to keep your finances in order while you’re young. Remember, you have a very bright financial future ahead of you if you start now and stick with it!

If you want a professional look for your home or want to decorate your office windows, you may consider cheap wooden blinds. These are wonderful to use for many reasons. They also create a classic look for modern windows. When selecting window coverings, you’ll need to make sure that wood blinds are right for you.

There are several benefits to choosing wood as a material. Wooden shutters are available in different stains and paints. You can choose from a classic look to a rustic look. What you want is up to you. You can also choose between fabric tapes, cordless, routeless, valances, or the motorized version.

Explanation of terms

Fabric ties are a strip of fabric that helps hold blinds together. When the blind is closed, the straps will run across the front, covering all openings in the path to keep out light and give you privacy. Cordless is one way most blinds are made these days, ever since the scare a few years ago with kids getting caught in cords dangling from them. Now they can be raised and lowered by means of a mechanism.

Route-less is a way to keep the routing holes from showing when the louvers are closed. This gives you more privacy and warmth. Enjoy opening and closing the window cover by remote control. You can lie on the bed and press the button to let the sunlight in first thing in the morning and late at night for more privacy.

keep dust away

If you’re wondering how easy it would be to keep dust off your wood blinds, you can be sure they’re just as easy to clean as the other types. Running a feather duster over them will do the trick or you can close them up and rub a cloth over each section to keep them dust free. They are easy to maintain and can last for several years without showing any wear or age.

Cheap wood blinds are made in the same way as the more expensive version, except with a different type of wood. The cheaper the wood, the easier it will be for manufacturers to pass the savings on to consumers. Another option is to use faux wood, which looks like wood but is made of a less expensive material.

The benefits

When using wooden blinds you will realize that there are several ways in which they can benefit you. They make a home or office feel warm and professional. They are warm and will help prevent cold wind from blowing in through the window and into the rooms. They can also help you maintain your privacy – no one likes to feel like someone is watching them. When you close them you will feel better knowing that you have your privacy and no one will be able to see you while you have them closed.

Ordering your cheap wooden blinds online is as easy as going to the store. You can also request samples be sent to help you make an easier decision. Seeing the tone of the wood first hand will make it easier for you to match it to your window to decide if you are making the right choice when making your purchase.

Lawyers for government agencies live in a bubble. They are protected by the same system of corruption, nepotism, waste, fraud and abuse that causes so many federal employees so much hardship. As long as these lawyers toe the party line, their jobs are secure; they get good pensions; and they don’t have to worry about much.

While not all government lawyers do this, the temptation to do so is great. Shadowing the agency director, special agent in charge, or some other high-ranking bureaucrat is generally a big key to most federal agency positions, so that of a lawyer should be no different.

However, there is a higher authority than that bureaucrat. He sends shock waves through all the lawyers at the Federal Agency, and in the vast majority of cases, these people are shocked by a new system of authority, something completely foreign: the Bar Association. Even Bill Clinton lost his Arkansas bar license because the people in the Arkansas bar didn’t care that he only perjured about sex.

The vast majority of complaints in bars come from disgruntled customers who did not get a good outcome in the case, for which they blame their lawyer. The average lawyer in private practice will get a few of these in his career. For this reason, private practice lawyers after several years in practice have well-developed defensive systems to hedge against these allegations.

The agency’s lawyers do not deal with this system and have no idea about it. As such, they are generally unaware of professional liability rules. The fear of suspension or debarment can be so great that the Agency attorney simply cannot stomach a threat to report to the bar association. There is very little reward for the Agency lawyer for going through one of these crowds of bars if it can be avoided.

Consider these examples that the Agency’s lawyers are clueless about, but fully support their bureaucratic bosses:

1. A federal employee has an existing whistleblower claim. To tighten the screws, the Agency says in mediation that if the employee refuses to accept its low offer, the Agency will fire the employee for reasons it already knows are untrue. It is unethical for lawyers to defend claims that have no merit. Since the federal employee will be filing another Merit Systems Protection Board claim against his agency, the agency’s attorney will be litigating a claim: a frivolous, legal, and factual claim because his bureaucratic boss ordered him to. The status bar of him, he doesn’t care about the bubble, that’s a violation.

2. A federal employee has an existing legal action for discrimination and is represented by an attorney. The Agency attorney executes an order from the bureaucrat boss to send the Proposed Recall letter directly to the employee, even though the employee is represented by an attorney. In most state bar associations, that is a violation because the attorney communicated directly with someone that attorney knew was represented. The agency’s attorney had a professional responsibility requirement to contact that person’s attorney and failed to do so. The status bar of him, he doesn’t care about the bubble, that’s a violation.

3. Someone in the US State Department orders a federal prosecutor not to release Hillary Clinton’s emails as part of a Freedom of Information Act lawsuit because they will make her look bad. The US attorney agrees. Later, the federal judge finds out that the federal prosecutor was more loyal to the Clintons than to the Rules of Professional Responsibility that a lawyer must follow. That lawyer should be preparing to become a lobbyist.

Here’s the bottom line: the bubble can’t protect bad guys from everything.

The capital gains tax rate in Cyprus is 20% of the inflation-adjusted taxable gain, but certain lifetime exemptions apply to individuals for the disposition of their main residence. The first CYP10,000 of a gain is exempt. This exemption limit amounts to CYP50,000 if the seller has lived in the property continuously for the previous five years. Additional allowances are granted in relation to transfer fees, inflation and improvements made to the house, services of registered real estate agents, but the total exemption cannot exceed a limit of CYP50,000. Capital gains tax does not apply to gains from the sale of foreign real estate by residents who were non-residents when they purchased the asset.

Please note that these are personal allowances. Therefore, if the property is jointly owned, for example, by husband and wife, each owner is entitled to the CYP 10,000 or CYP 50,000 exemption.

Do not forget that in addition to the CGT personal allowances, you can also claim an Inflation Allowance. The indexation factor is based on the cost of the property if purchased after 01/01/80, using the Consumer Price Index (CPI) for the month prior to the sale and the CPI for the month of acquisition. Disposals of plots use the 1980 valuation for the purposes of the CPI.

The data is below.

The following can also be deduced:

Expenditure Allowed:-

Ground transfer fees

Stamp duty

Realtor Commission – (but only if you are a licensed agent)

Professional Positions

Advertising

Capital additions or improvements – (receipts and planning permission required when necessary)

Indexing can be applied to previous expenses as well as the initial purchase price.

Additional expenses allowed:-

Property Tax

Interest on the Loan used for the Acquisition of the Property

These expenses cannot be indexed.

If you are selling a partially or fully furnished property, there is a perfectly legal way to reduce your CGT liability.

Have two contracts; one for the sale of the property and the other for the furniture, etc. (this is known as a furniture contract).

For the purposes of the CGT, the IR will only be interested in the profit obtained from the sale of the property.

http://www.mof.gov.cy/mof/cystat/statistics.nsf/All/F799BCBF16A29708C2256D640042C313/$file/CPI-HISTORICAL%20DATA-EN-090106.xls?OpenElement

Avoid CGT in Cyprus

In Cyprus, profits derived from the sale of securities for individuals resident in Cyprus are not taxed. “Securities” is defined as shares and other securities of companies or other legal persons, incorporated under the law in Cyprus or abroad and options thereon.

So, to legitimately avoid all Cyprus CGT, then you could buy your property in Cyprus using a Cyprus registered Limited Company.

But you will still have to pay UK CGT, but the good news is that it can make up for what you paid in Cyprus. Finally, the article tells you how to avoid paying Cyprus CGT entirely.

The good old days were refreshing. You can put up a sign in your yard and get quick responses from interested potential buyers, or hire a listing agent and not worry about their commissions eating up your cash. The time has changed.

Real estate has become competitive. In some areas, it is a seller’s market. In others, the buyer takes the reins. No matter what, there are thousands more people in real estate now than there were then. With investment seminars and investment shows becoming more common, the real estate pool is growing every day.

But what if you are in a hurry to sell? Does that mean you’re motivated? Let’s take a look at what constitutes a motivated salesperson, and whether or not some of these sales techniques will work for your situation…

Reasons:

• You are facing foreclosure

Times can be tough. You may have been laid off from that job and not been able to replace the income in time. The bank sent you a letter notifying you of a lis pendens (the beginning of a foreclosure, also known as a pre-foreclosure) You have no options and you don’t want foreclosure to end up destroying your credit.

• you are behind on taxes

As before, this is an immediate situation that can destroy your credit. Taxes will be collected no matter what, so there’s no need to add bad credit to the mix. Back taxes will not only eat away at your capital, but will also be attached to your future wages.

• you have bad tenants

You constantly receive complaints about the tenants of one of your properties. Police are becoming a normal sight in front of the property. Perhaps the tenants are turning their intended investment into a drug house. He doesn’t want to deal with the situation and would rather take money out of the investment and walk away.

• you are divorcing

Let’s be honest. Not many are fair in divorce proceedings. Who gets the house? None of you? So you have no choice but to sell quickly so you can avoid your soon-to-be-ex like the plague and get some cash to start anew.

• you are retiring

Whether you’re a retiring business owner, or a couple with a home you’ve had for years, you just want some cash for your equity so you can move to warmer climates and bingo.

• You inherited real estate

You’ve just inherited a home or multi-unit property, but you’d rather have cash in place. You want a quick sale and you don’t want to be bothered with maintenance.

• You are an out of state owner

He thought he could manage investment property in California while relaxing at home in Maine. Unfortunately, good help is hard to find and all the property managers turn out to be drunk. The grass is tall and you are receiving letters. You’re causing more heartache than it’s worth.

• You just want some extra money

You don’t need the property in question and just want to top up your bank account.

These are all valid reasons that would make you a motivated seller. The only question I have for you in this case is… are you greedy?

The number one killer of real estate sales is a homeowner who is too proud to accept that the market will not support outlandish property valuations. Fair market value may be high, but no one is biting. How’s that quick sale going? The first step to selling your home fast is recognizing that you need to be open-minded. If you can be open-minded about the sale price or terms, then selling fast will be a piece of cake.

Where are my target buyers?

You have quite a few options. Some will take longer than others. Probably the number one way to sell quickly is to find a wholesaler. A wholesaler is a real estate investor who searches for discount properties, writes an offer, and then assigns the contract to one of his many cash buyers. Often the wholesaler will have hundreds or even thousands of investors on their contact list who are ready to buy immediately. His investment partners have been qualified by the wholesaler with proof of funds and will have shown the wholesaler multiple deals they have closed in the past.

There are wholesalers who buy properties in multiple states, while other wholesalers are limited to a single state. Some of them even stick to a specific city or regional area. They are known for using phrases like “we buy houses, any area, any condition.” While many wholesalers stick to deeply discounted properties, others work with low capital deals where Subject2 and seller financing can be put at stake. These are some of the techniques that require you to be a truly “driven” open-minded salesperson.

Another option for a quick sale is Craigslist and other classified websites. If you’re going the classifieds route, you should be prepared for ‘tire-kicker’ responses. There may be many new investors and people who are just looking, which will take you a long time to screen out before you find a real buyer. When you post a classified ad for your home, be sure to include as much detail as possible in the ad. Skipping rooms, bathrooms, parking, and other features will only mean you’ll have to spend time discussing these things when you’re fielding the multitude of calls you’ll receive.

If classifieds aren’t your thing, you’ll want to find buyers through a more direct route. Go where they hang out. There are forums like EquityPaper and BiggerPockets that have premium subscription options for real estate listings and other networking tools. These are forums where investors meet to discuss real estate issues on a daily basis. If you list your home in these professional member areas or marketplaces, you can get responses from interested buyers fairly quickly.

Determining the value of the property for an investor

When listing your property, there are a few things potential buyers will want to know in addition to the standard property details. ARV (after repair value) is one of them. To find your ARV, go to Zillow, Trulia, and Redfin. On each of those websites, search for your property and write down the estimated value for each one. Add up all 3 of those values, then divide the sum by 3. The result will be your ARV.

After you have your ARV, you want to determine what the new buyer will have to invest in the property to repair it. If your house is in excellent condition, you only have to consider simple things like paint, appliances and other things related to the tastes of the buyer. You would multiply your square footage by $10 to get the total credit the buyer will want. If the property needs some updates like flooring, new toilet, etc., then you will multiply the SF by $15. Broken windows, doors, etc. they will cost $20. If the house is a mess and a complete rehab, then the multiplier is $30. Now subtract that number from the ARV.

Whether or not the buyer is a wholesaler or pinballer, they need to do something with the deal. This can range from $2,000 to $50,000 or more, depending on the location, value, and other factors of your property. However, many good wholesalers will stick to the price of $10,000 or close to it. So take your new ARV and subtract the buyer’s profit to get an expectation of how much money you’ll be offered for the property.

Creative financing for a quick sale

Assuming the final number from the calculations listed above isn’t even close to taking care of what you owe on the property, then you need to learn to get creative. Some wholesalers and flippers will continue to purchase a property with little or no capital.

Topic 2 Financing

Item 2 is a technique that allows new buyers to take charge of their mortgage payments and take control of the property. Sub2 investors seek leverage so they don’t tie up their credit, but can get a rental property at the same time.

A seller may have a concern when it comes to a sub2 deal. For example, what if the buyer defaults on the mortgage and ends up as a bad credit item for the seller? Well, there are protections for sellers during existing subject 2 financing agreements.

• A single late payment can be a deal breaker. It can be done so that in this case the buyer defaults and loses the property back to the seller. This one possibility is the #1 reason why this is a rare scenario. Most Theme 2 investors are experienced. They have been doing it for years and have made millions through rentals with these types of deals.

• Limitation clauses, such as the one that requires the buyer to refinance the property in their own name within a set period of time, further reduce risk. Let’s say in 2 years, the buyer must refinance. By then, they will have built up enough equity through paying down their loan to make this a possibility through traditional lending methods. Even in the worst case, they can get hard money after that time to take advantage of the extra time to change ownership or obtain other financing.

Deed or Lease Option

If you’re not in a rush for a ton of cash, you can sell with a deed or lease option. This will ensure that the buyer is responsible for maintenance, insurance, taxes and everything else, while giving you a monthly income stream with little risk. With either technique, you will get a quick sale. The best part is that you keep the deed to the house until the buyer’s obligations are met. If they default, you can simply evict them and start over with a new buyer. The best part is that you’re earning interest on your principal at a rate you agreed to at the sale.

FSBO (For Sale By Owner) doesn’t have to be difficult. It can be quite lucrative and surprisingly fast when you learn to be creative and open-minded.

WARNING! If you really want to buy a home in 2010, you may not have much time left! With the 2007-2009 recession now a thing of the past, buyers are returning to the real estate market in droves. What most shoppers don’t realize, however, is that there are many forces working against them that could make it difficult to find real bargains in the spring and summer. Here are five major forces shaping the market earlier this year, and you better pay attention to them:

1. Under the provisions of the massive stimulus package designed to support the housing market, the Federal Reserve has been buying mortgage securities for over a year to maintain liquidity in the housing market, which also artificially supported rates in a level less than 5%. . However, this part of the ER stimulus is ending in March, and it is already raising rates in anticipation of the grand finale of the program. What does it mean for the mortgage market? It means come March or April, you will no longer find rates in the low or middle 5%. The consensus of most economists and financial journalists is that we will have 6% mortgages by summer. What does it mean to you? Get your loan approved and rate locked in by mid-February!

2. As “normal market” demand for mortgage-backed securities remains very low, lenders will further tighten their underwriting guidelines. The preview of this was shown in December 2009, when following FNMA and Freddy, all lenders increased credit score requirements for prime mortgages from 20 to 40 points, FHA followed by increasing the minimum score from 595 to 620. , and some lenders made 640 as a minimum score for FHA or any other government-backed loan. Come summer, the credit system will most likely tighten further, as banks will have a much smaller market to sell their loans, forcing them to pick only the best borrowers to bet on. If you’re not one of them, you may need to have at least a 25-30% down payment, ratios below 30%, and a score of 750 to have any chance of getting a home loan.

3. Unbeknownst to shoppers, the government has passed a series of new laws in the last two years, of course, all done under the highly publicized slogans of helping Joe the Consumer. In reality, these new laws virtually eliminated a mortgage broker as a viable player in the market. The government blamed the brokers for pushing “creative” mortgage products to uneducated consumers who couldn’t afford them, however the reality is that the brokers were only selling products pushed to the public by the BANKS. The truth is that the brokers do not offer their own products, the brokers do not participate in the meetings of the boards of directors of the banks that decide what financial products to offer to the public, the brokers only sell what the banks offer if the public demands it. In 2006 brokers were responsible for 60% of all loans originated in this country, for the first quarter of 2010 – less than 5%! Why should you worry about that? Quite simply: while enjoying virtually unlimited access to billions and trillions of taxpayer dollars, the banks managed to eliminate the only serious market force that has kept their mortgage rates competitive for the past decade. With the brokers gone, all loan origination now goes to the retail banks with their “friendly and knowledgeable” staff who don’t care if you buy your mortgage today at 7% or not, because they are on salary paid for your deposits. of savings and unfair banking fees, and because your only alternative is to go to a retail branch of another bank, where you will face just as much competition and desire to lower rates as at the first branch. Consider this: the banks have managed to quietly monopolize a market worth $10-15 TRILLION DOLLARS, and their profits (spreads between your mortgage rate and the current 0% Federal Reserve rate) per loan are the highest ever have had in history. ! Now, did you get a thank you postcard from the CEO of your bank last year for helping the banks with some free money?

4. The homebuyer tax credit program also ends in April. You must be in escrow by April 30th and close escrow no later than June, which means that in March/April we will see throngs of late-arriving last-minute buyers trying to take advantage of the program and inventory of Homes, especially in the 200-400K price range will be under strong pressure from buyers, as we saw in October and November 2009, before word broke that the tax credit program would be extended. This time is different: there will be no more extensions. This was the final extension, and those who missed out on this program because there was no inventory on the market will try to buy something this time.

5. Traditionally, March is the first month of the official shopping season in San Diego. In my 10-year spreadsheet, March sales represent an average 30-50% increase in the number of sales closed over February of the same year. Trust me this year will be no different. However, those who get up late and start shopping for a home in March will face much stiffer competition and will be forced to bid on properties beyond what they will reasonably price, forcing buyers to increase their down payment or they will be discouraged. and end up on the sidelines again.

The housing market has been hit hard enough to the point where even the bitter pessimists started talking about a turnaround. Some still talk of a massive “shadow inventory” of houses that banks are supposedly holding onto to prevent the market crash and that when it finally comes the market will crash, yet this talk has been going on since late 2008 and nobody knows. when and if this inventory will ever enter the market. Today banks can dump four to five times as much inventory on the market, where houses attract 10 to 30 offers in the first week, and buyers just swallow them and move on.

So what should you do now to take advantage of the situation for the remainder of true bargain-hunting season?

1. Get your loan prequalified now, don’t wait for your tax refund to hit your bank account. If you need to borrow money from relatives for a down payment, go ahead, you can pay it back with the tax credit money, your tax refund, or do their laundry for the next 30 years, but get your loan fully approved at the the highest amount possible and have it available when you are bidding. No one seriously looks at your offers today unless you can attach a solid loan approval along with proof of funds for a down payment.

2. Make sure you have a clear idea of ​​what you’re looking for and make sure it’s realistic. Don’t ask your agent to ship everything from Bonsal to San Ysidro in the 100K to 800K range and expect to work with that agent. Sit down with your agent, describe the areas, types of properties you will be targeting, maximum monthly payments including HOA, Mello Roos, property taxes, home insurance, utility bills, and anything else that will become in your monthly liability. Knowing what you want helps you get there four times faster!

3. Use technology to your advantage. There are many real estate websites that allow you to set up an automated search page and receive listings that match your criteria the moment the listings hit the market, or on any other regularity of your choosing. These automated tools give you an “unfair advantage” over most other non-technical buyers and real estate agents: If you’re first to see listings, you have the advantage of making your offers before everyone else.

4. Make offers, more offers and some more offers! In the sub-$300,000 price range in most areas of San Diego, it now takes 20-30 offers before one is accepted, so be patient, but also smart about it. Make offers on realistic listings, where you have the best chance of getting your offer accepted. If you have an FHA loan, don’t look for “investment exchange” listings, the FHA will not allow it for 90 days after the original purchase date. Do not bid on short sale listings, where the listing agent submits ALL offers to the lender and waits six months for the lender to accept an offer, making the process a long auction. Do not submit to some REO listings if the REO listing broker insists on seeing my buyers first born child, DNA testing, and pre-approval from the listing broker’s chosen lender BEFORE they even see your offer. (By the way, any time the REO asks for pre-approval from your lender, understand that it is done solely to facilitate a sales pitch by that lender, so complain to the California Department of Real Estate, tell them that in your opinion, it goes against the spirit of California’s AB957 “Buyer’s Choice Act” of 2009, especially if you already have your pre-approved from another lender! accepted? Sounds ridiculous, doesn’t it?)

5. Be creative! If you can’t get what you want directly, look for other ways to achieve the same results. Consider buying a home to fix up and use a rehab loan to make the repairs, consider downsizing your home and adding square footage to your desired home size, consider new construction, lease options, seller return, or other creative ways to get in the house. Get familiar with these creative strategies, they could be your ticket to homeownership today.

This is not the time to procrastinate and wait for your April tax refund before you start shopping for a home. Act now and take advantage of the last few months of the BEST time to buy a home in decades!

The Five Levels of Estate Planning is a systematic approach to explain estate planning in a way that you can easily follow. Which of the five levels you need to complete is based on your particular goals and circumstances.

Level One: The Basic Plan

The situation for level one planning is that you do not have an established will or living trust, or your existing will or living trust is out of date or inadequate. The objectives of this type of planning are:

o reduce or eliminate estate taxes;

o avoid the cost, delays and publicity associated with probate in the event of death or incapacity; and

or protect heirs from your disability, your disability, your creditors and your predators, including ex-spouses.

To accomplish these goals, you would use a vicarious will, a revocable living trust that allocates a married person’s estate between a credit protection trust and a marital trust, general powers of attorney for financial matters, and durable powers of attorney for health care and living wills.

Level Two: The Irrevocable Life Insurance Trust (ILIT)

The situation for Tier Two planning is that your estate is projected to be greater than the estate tax exemption. While there is a current lag on the inheritance transfer and generation-skip taxes, Congress is likely to reinstate both taxes (perhaps even retroactively) sometime this year. Otherwise, on January 1, 2011, the estate tax exemption (which was $3.5 million in 2009) becomes $1 million, and the top estate tax rate (which was 45% in 2009) becomes 55%. In either case, you can make cash gifts to an ILIT using your annual gift tax exclusion of $13,000/$26,000 per beneficiary.

Level Three: Family Limited Partnerships

The situation for level three planning is that you have a projected estate tax liability that exceeds the life insurance purchased in level two. If your $1 million gift tax exemption ($2 million for married couples) is used to make lifetime gifts, the gifted property and all future appreciation and income from that property are removed from your estate.

More people would be willing to give gifts to their children if they could continue to manage the gifted property. A Family Limited Partnership (FLP) or Family Limited Liability Partnership (FLLC) can play a valuable role in this situation. Typically, you would be the general partner or manager and, in that capacity, would continue to manage the assets of FLP or FLLC. You can even charge a reasonable management fee for your services as a general partner or manager. In addition, by gifting FLP or FLLC interest to an ILIT, the FLP or FLLC’s income can be used to pay premiums, thus freeing up your $13,000/$26,000 annual gift tax exclusion for other types of gifts.

Tier Four: Qualified Personal Residence Trusts and Grantor Retained Annuity Trusts

The scenario for level four planning is the additional need to reduce your estate after your $1 million/$2 million gift tax break has been used. Although paying gift taxes is less expensive than paying inheritance taxes, most people don’t want to pay gift taxes. There are several techniques for making substantial gifts to children and grandchildren without paying significant gift taxes.

One technique is a qualified personal residence trust (QPRT). A QPRT allows you to transfer a residence or vacation home to a trust for the benefit of your children, retaining the right to use the residence for a period of years. By retaining the right to occupy the home, the value of the remaining interest is reduced, along with the taxable gift.

Another technique is a grantor retained annuity (GRAT). A GRAT is similar to a QPRT. The typical GRAT is funded with income-producing assets, such as Subchapter S stock or FLP or FLLC interest. The GRAT pays you a fixed annuity for a specified term of years. Because of the retained annuity, the gift to the remaining men (their children) is substantially less than the current value of the property.

Both QPRTs and GRATs can be designed with terms long enough to reduce the value of the remaining interest that you pass on to your children to a nominal amount or even to zero. However, if you do not survive the established term, the property is included in your estate. Therefore, it is recommended that an ILIT be funded as a “cover” against your death before the end of the stated term.

Level Five: The Zero Estate Tax Plan

Level five planning is a desire to “disinherit” the IRS. The strategy combines life insurance donations with donations to charity. For example, take a married couple, both 55 years old, with a net worth of $20 million. Assume there is no growth or depletion of assets and both spouses die in a year when the estate tax exemption is $3.5 million and the top estate tax rate is 45%.

With the typical marital credit haven trust, when the first spouse dies, $3.5 million is allocated to the credit haven trust and $16.5 million to the marital trust. No federal state tax is due. However, upon the death of the surviving spouse, the estate tax due is $5.85 million. The net result is that the children inherit only $14.15 million.

Under the zero estate tax plan, the ILIT (with generation-skipping provisions) is funded by a $13 million second-to-die life insurance policy. These gifts reduce the value of the estate to $18 million. In addition, each of the couple’s living trusts leaves $3.5 million (the tax-exempt amount of the estate) to their children upon the death of the surviving spouse. The balance of his estate ($11 million) goes to a public charity or private foundation, free of estate taxes. Long story short, the zero estate tax plan gives $20 million (ie $13 million from ILIT and $7 million from living trusts) to children instead of $14.15 million; charity gets $11 million instead of nothing; and the IRS gets nothing, instead of $5.85 million.

In short, with a little advance planning, it is possible to reduce estate taxes, avoid probate, establish your wishes, and protect your heirs from creditors, ex-spouses, and estate taxes.

TO THE EXTENT THAT THIS ARTICLE CONTAINS TAX MATTERS, IT IS NOT INTENDED OR WRITTEN TO BE USED AND CANNOT BE USED BY A TAXPAYER IN ORDER TO AVOID SANCTIONS THAT MAY BE IMPOSED ON THE TAXPAYER, PURSUANT TO CIRCULAR 230.