There are many misconceptions about what a Reverse Mortgage is. So let’s clear the air on what it is and what it is NOT. Reverse Mortgages are now commonly referred to as Home Equity Conversion Mortgages, or HECMs for short. Previously, they were known as Reverse Annuity Mortgages, or RAM. A HECM is designed to help a homeowner tap into the equity in their home while not making any mortgage payments. In its simplest terms, an HECM is a Home Equity Line of Credit that does not have a payment … [Read more...] about Understanding the Reverse Mortgage
Peter Medal
Evaluating the Real Estate Market
Prescott and much of Yavapai County are part of the “Sun Corridor” (Mega Region) Market Service Area (MSA) demographic. This MSA extends from Nogales to Chino Valley, encompassing Metro Phoenix, Tucson and Prescott areas. Yavapai County is about the size of New Jersey and has a population of just under 230,000. The Sun Corridor MSA is the No. 1 or No. 2 job growth haven in the country, according to many sources. 2020 Market Pulse Current active residential inventory for the Quad Cities … [Read more...] about Evaluating the Real Estate Market
Common Home Selling Mistakes: The Offer and Pricing
We may have all heard the old adage, “The first offer is always the best offer.” Like the phrase “Location, Location, Location,” it’s a real estate myth that we will hear until the end of time. In the phrase, “always” seems concrete, with no flexibility, which is simply not true. There are many exceptions to the rule. In reality, while the first offer may generally be one of the best offers, most of the time, it is not always the case. It all depends on the circumstance. Previous transactions … [Read more...] about Common Home Selling Mistakes: The Offer and Pricing
Exchanging Real Estate Tax Free
Under the new tax laws, we are seeing a large influx of high income, high net worth individuals moving from high-tax states to low-tax states such as Arizona (ranked as one of several “Most Tax Friendly” according to Kiplinger). Relocating a primary residence is generally completed with little to no tax consequence (capital gain tax liability for a primary residence held over two years is tax-free for gains up to $250,000 for an individual, and $500,000 for married). Selling investment real … [Read more...] about Exchanging Real Estate Tax Free
Diversifying with Real Estate
With many saying the stock market is overheated, prudent investors are constantly looking for long-term investment strategies to diversify their holdings and keep their nest eggs safe. The taxable income in a retirement account, whether it’s an IRA/401K or Simplified Employee Pension plan, or SEP-IRA grow tax deferred until withdrawals are taken out. If the account is a Roth IRA, the gains accumulate tax-free and withdrawals are tax-free. Why not diversify into real estate? Section 408 of the … [Read more...] about Diversifying with Real Estate