Archives for August 2020

1031 Exchange Rules For Investors: How To Do A 1031 Exchange In 2020?

August 28, 2020 by Marco Santarelli

Taxes rarely make for exciting reading material, but if you own an investment property, there’s at least one set of IRS regulations you absolutely will want to understand: 1031 exchange rules. Why? Because normally when you sell an investment property for more than what you paid for it, you’d have to pay a hefty capital gains tax. But with a 1031 exchange, you get to defer paying those taxes if you reinvest the proceeds in a new property, making an “exchange” rather than a sale. It’s just that this transaction is subject to some strict regulations, so you’ll need to follow the 1031 exchange rules to the letter. There are many investors who would like to do a 1031 exchange. Some of them who do fix and flip call us for a 1031 exchange to roll the gain over into the next property. But can they? Although confusing, understanding IRS Code Section 1031 is worth it. Here’s what you need to know to pull it off.

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Miami Real Estate Market & Investment Overview 2020

August 21, 2020 by Marco Santarelli

As we enter into the 3rd quarter of 2020, Miami remains a buyers' market and investors need to capitalize on this advantage while it is still there. We will discuss the latest Miami real estate market trends and find out how they can affect the investors and homebuyers in the latter half of 2020. After getting hammered by the pandemic, the Miami and South Florida housing market bounced back in July. Out of five counties, only two of them saw a year-over-year decline in sales.

Sales in Miami-Dade & Broward counties declined by 6% and 0.7% respectively. The other three counties saw a significant year-over-year increase in sales—Palm Beach (+9.35%), Martin (42.6%), and St. Lucie (20.5%). The median sales price in the Greater Miami housing market which comprises of Broward, Miami-Dade, and Palm Beach counties increased by 5.5% to $385,000 while sales dropped by -11.6%.

According to Realtor.com, in July 2020, the Miami area was a balanced real estate market, which means there was a healthy balance of buyers and sellers in the market. Months Supply of Inventory was 4.3 in Miami-Dade County (July). Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically 6.5 months is considered a balanced housing market but due to the ongoing crisis, the demand somehow meets the current supply.

Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The buyers in Miami have managed to hold good leverage in these negotiations in the past month. On average, they could buy homes for 96.95% of the asking price—3.05% below asking price on average in July 2020. A seller would always prefer scenarios that can yield a ratio of 100% or higher. The median list price of homes in Miami, FL was $380K, trending up 4.1% year-over-year.

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Best Real Estate Websites For Buyers And Sellers In 2020

August 17, 2020 by Marco Santarelli

We’re not going to tell you where to go to find a real estate investment loan or good building contractor; you can find recommendations in those areas almost anywhere. Instead, we’re going to focus on the best real estate websites that make it easier to perform due diligence when researching properties and simplify the process of finding, vetting, and managing tenants. Some of these sites can help real estate investors as well who don't have much margin for error when their mistakes have multiple zeroes on the end.

When you need to find properties that are a bargain at the buy, don't cost a fortune to fix up, and can be sold for a profit, it requires having the best possible information at every step of the way. Here is the list of 21 best real estate websites in 2020 for buying, selling, renting, or managing a property. These websites provide a plethora of unique features, tools, data analytics, and automated software for real estate buyers, sellers, investors, and landlords. Some new and unique real estate websites have made into the list which you may or may not be aware of.

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San Antonio Real Estate Market & Investment Overview 2020

August 3, 2020 by Marco Santarelli

Let’s take a look at the current state of the San Antonio real estate market amid the coronavirus pandemic. Then we’ll discuss the investment opportunities in San Antonio for real estate investors. San Antonio is one of the best places to visit and has one of the fastest-growing economies in the country, driven by sectors such as military, tourism, health care, and insurance. San Antonio housing prices rose by around 5% in the last year due to strong demand.

Before this pandemic hit the nation, even though the San Antonio housing market had cooled off a bit, the home values were expected to climb but at a slower pace in 2020. Realtor.com had predicted that prices for single-family homes in the San Antonio metro area will climb by just 0.8 percent in 2020. According to the latest MLS report by “SABOR,” since the start of 2020, there have been 9,089 active listings and 16,840 total home sales in the city with an average of 64 days on the market.

This further demonstrates the ongoing supply of homes as they sell. In June, San Antonio's average price of a home increased by 3% as compared to June 2019. Year-to-date, the average price has shown an increase of 5% to $278,395. The reports showed 3,823 homes sold in San Antonio during the month of June, an increase of 14 percent. The month of June shows an increase in all four categories indicating stability in the market. The complete up-to-date San Antonio housing market report is given below.