Tuesday, February 18, 2014
Friday, February 14, 2014
Wednesday, February 12, 2014
New Listings at Rock Creek Resort on Lake Texoma
ASSUMABLE LOANS on two adjoining Premium Golf Course lots in Rock Creek Resort
on Lake Texoma. Developer sold similar lots for $191,000. Heavily wooded
overlooking #13 green and creek. Private, gated, Jack Nicklaus golf course
community with marina, pool, clubhouse, restaurant, sports bar and grill and
much more. Very few golf course lots will ever be available! Lots are tax
accessed at $166,345 & $184,749.
Enjoy fun in the sun right out your back door with the Private Nicklaus Design Golf Course, Clubhouse, Pro-Shop, Marina and Ship Store, Swimming Pool. The options are limitless!
Jack Nicklaus Design
18 Hole Golf Course
Cover 300 acres
Rock Creek Resort covers 1300 acres. These lots are right on the golf course!
Please Feel Free to call with any questions!
903-624-9583
Monday, February 10, 2014
Real Estate Investments and IRA's
When most people think of IRA investments, they typically envision stocks, bonds and various types of mutual funds. Relatively few seem to be aware that real estate investments can also be included in an IRA as long as the IRA is "self-directed' and IRS requirements are met. Key advantages of including real estate investments in self-directed IRAs (SDIRAs) are diversification and the deferral or elimination of taxes on annual investment income and gains from sales.
The number of SDIRAs has doubled during the past five years. The Wall Street Journal (April 2012) reported that the Retirement Industry Trust Association estimated that $4.6 trillion was held in IRAs in total, with 2 to 5 percent invested in SDIRAs.
In general, there are two types of IRAs (SDIRAs included) - traditional and Roth. Investments in traditional IRAs are tax deductible; tax on all earnings is deferred until the earnings are withdrawn; and all withdrawals are fully taxable at ordinary tax rates (which presently range from 10 to 39.6 percent), even if the withdrawals are associated with gains from the sale of assets. Thus, the capital gains tax rate does not apply.
Penalty-free withdrawals are allowed to begin at age 59 1/2 but must begin at age 70 1/2. In sharp contrast, contributions to Roth IRAs are made with after-tax dollars (that is, they are not deductible), but all withdrawals, including annual earnings and gains from sale, are tax-free. Also, withdrawals are not required.
Annual contribution limits for any type of IRA (including both traditional and Roth SDIRAs) can be as low as $5,500 but may be higher for any IRA-type plan that small businesses offer their employees. Large balances in SDIRAs may be created through annual contributions made over many years, rolling over funds from other IRAs and/or rolling over traditional/Roth 401(k) plans when employees retire or move from one employer to another.
Most IRAs are administered by large investment houses, banks, and savings and loan institutions. Investments in these IRAs are typically required to be stocks, bonds, mutual funds and similar investments.
The only way to hold income-producing real estate in an IRA-type plan is to create an SDIRA. To do so, the investor must locate an SDIRA custodian/trustee approved by the IRS who will allow the investor to invest in real estate. Such custodians may be found via the Internet and may be a local firm or a large national firm that specializes in SDIRAs. There are very few large firms, but they are easy to find online.
Various types of fee arrangements exist for SDIRAs - flat fees, fees based on fair market value, or a combination. Annual administration flat fees may range from $250 to more than $1,500 depending on fair market value (FMV). Some annual fees reflect the number of properties held in the SDIRA. Annual FMV percentage fees may range from .4 percent to 1.5 percent of FMV, according to the Wall Street Journal (April 2012).
Other fees may be charged for each transaction (each SDIRA contribution as well as each property acquisition or sale). Also, there may be restrictions on the number of real estate trades in a given year. In contrast, some SDIRAs are referred to as "checkbook" SDIRAs and literally enable investors to write a check to purchase SDIRA assets (see restrictions that follow). Investors need to perform due diligence and carefully compare SDIRA custodian arrangemnts.
Another set of critical issues pertains to the strict IRS rules governing SDIRAs. The only debt allowed to be in SDIRAs is property acquisition debt. Transactions are not allowed to take place between relatives and the SDIRA. The SDIRA owner may not sell the SDIRA assets he or she owns outside the SDIRA. Other prohibitions preclude 1. SDIRA investments in the SDIRA owner's (or a relative's) personal, 2. using the SDIRA as collateral for a loan and 3. receipt by the SDIRA owner of compensation associated with an SDIRA asset. As with all tax-related transactions, careful record-keeping by the SDIRA owner and/or the custodian is crucial. Running afoul of IRS requirements could bring about penalties, immediate taxation of SDIRA funds and possible termination of SDIRA tax-preferred status.
Thorough investment analyses are as important for SDIRA real estate investments as any other real estate investments. For specific advice, consultation with a tax accountant or tax attorney is recommended.
The Takeaway
Self-directed IRA investments in income-producing real estate may provide significant advantages such as tax tax deferral, tax-free income and diversification. Tax and nontax complexities require due diligence before establishing an SDIRA.
By Jerrold J. Stern
Stern, Jerrold J. "Real Estate Investments and IRAs". Tierra Grande Journal of The Real Estate Center at Texas A&M University. January 2014: 23.
The number of SDIRAs has doubled during the past five years. The Wall Street Journal (April 2012) reported that the Retirement Industry Trust Association estimated that $4.6 trillion was held in IRAs in total, with 2 to 5 percent invested in SDIRAs.
In general, there are two types of IRAs (SDIRAs included) - traditional and Roth. Investments in traditional IRAs are tax deductible; tax on all earnings is deferred until the earnings are withdrawn; and all withdrawals are fully taxable at ordinary tax rates (which presently range from 10 to 39.6 percent), even if the withdrawals are associated with gains from the sale of assets. Thus, the capital gains tax rate does not apply.
Penalty-free withdrawals are allowed to begin at age 59 1/2 but must begin at age 70 1/2. In sharp contrast, contributions to Roth IRAs are made with after-tax dollars (that is, they are not deductible), but all withdrawals, including annual earnings and gains from sale, are tax-free. Also, withdrawals are not required.
Annual contribution limits for any type of IRA (including both traditional and Roth SDIRAs) can be as low as $5,500 but may be higher for any IRA-type plan that small businesses offer their employees. Large balances in SDIRAs may be created through annual contributions made over many years, rolling over funds from other IRAs and/or rolling over traditional/Roth 401(k) plans when employees retire or move from one employer to another.
Most IRAs are administered by large investment houses, banks, and savings and loan institutions. Investments in these IRAs are typically required to be stocks, bonds, mutual funds and similar investments.
The only way to hold income-producing real estate in an IRA-type plan is to create an SDIRA. To do so, the investor must locate an SDIRA custodian/trustee approved by the IRS who will allow the investor to invest in real estate. Such custodians may be found via the Internet and may be a local firm or a large national firm that specializes in SDIRAs. There are very few large firms, but they are easy to find online.
Various types of fee arrangements exist for SDIRAs - flat fees, fees based on fair market value, or a combination. Annual administration flat fees may range from $250 to more than $1,500 depending on fair market value (FMV). Some annual fees reflect the number of properties held in the SDIRA. Annual FMV percentage fees may range from .4 percent to 1.5 percent of FMV, according to the Wall Street Journal (April 2012).
Other fees may be charged for each transaction (each SDIRA contribution as well as each property acquisition or sale). Also, there may be restrictions on the number of real estate trades in a given year. In contrast, some SDIRAs are referred to as "checkbook" SDIRAs and literally enable investors to write a check to purchase SDIRA assets (see restrictions that follow). Investors need to perform due diligence and carefully compare SDIRA custodian arrangemnts.
Another set of critical issues pertains to the strict IRS rules governing SDIRAs. The only debt allowed to be in SDIRAs is property acquisition debt. Transactions are not allowed to take place between relatives and the SDIRA. The SDIRA owner may not sell the SDIRA assets he or she owns outside the SDIRA. Other prohibitions preclude 1. SDIRA investments in the SDIRA owner's (or a relative's) personal, 2. using the SDIRA as collateral for a loan and 3. receipt by the SDIRA owner of compensation associated with an SDIRA asset. As with all tax-related transactions, careful record-keeping by the SDIRA owner and/or the custodian is crucial. Running afoul of IRS requirements could bring about penalties, immediate taxation of SDIRA funds and possible termination of SDIRA tax-preferred status.
Thorough investment analyses are as important for SDIRA real estate investments as any other real estate investments. For specific advice, consultation with a tax accountant or tax attorney is recommended.
The Takeaway
Self-directed IRA investments in income-producing real estate may provide significant advantages such as tax tax deferral, tax-free income and diversification. Tax and nontax complexities require due diligence before establishing an SDIRA.
By Jerrold J. Stern
Stern, Jerrold J. "Real Estate Investments and IRAs". Tierra Grande Journal of The Real Estate Center at Texas A&M University. January 2014: 23.
Rock Creek Resort
I am about to list two lots out in Roaring Fork Addition on the Rock Creek Golf Course. This is a beautiful area on Lake Texoma with a Nicklaus Design Golf Course, Clubhouse and Pro-shop.
Wednesday, February 5, 2014
Tuesday, February 4, 2014
1402 N. Ricketts Sherman, TX 75092
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1402 N. Ricketts does need a little TLC. I just got the green light to replace the carpet. I am about to go pick out the carpet color. Then, I get to make the happy call to my clients to let them know the good news. I hope to have this one under contract tomorrow.
Beautiful O'Hanlon Ranch Sherman, TX 75092
The booming construction in O'Hanlon Ranch has lots disappearing quickly! Here are the updated Plats that were updated today. Please let me know if you would like more information!
This is the preliminary plat for Phase 4 that will be ready Summer 2014.
Century 21 Quality Service Survey - Another Happy Customer!!!!
I am very grateful to have happy clients. It makes for a happy Saundra!
Monday, February 3, 2014
Economy Heats Up!!!!
Affordability is expected to take a hit next year as home prices and interest rates continue to head up.
The upbeat real estate market news we received in 2013 presents some challenges for the year ahead. An influx of buyers last year helped strengthen housing appreciation, which in turn lead to greatly improved consumer confidence. The result was 5.1 million home sales, the best year for real estate purchases since 2007.
But 2014 will be different, with sales volume gains expected to be small at best, because of rising interest rates and home prices, NAR Chief Economist Lawrence Yun says. But there's an upside, too: the continued growth in the economy, which, while modest, has stayed on track. The resulting addition of more than 2 million jobs each year should provide a boost to housing markets. On the commercial side, rising rent growth and declining vacancy rates bode well for the office, industrial, retail, and multifamily sectors.
Yun says lenders could promote stable markets next year as they look to purchase-money mortgage loans as their next big growth area to compensate for a shrinking body of business from refinances, which will drastically fall as interest rates rise.
By Robert Freedman
Freedman, Robert (2014 January/February) Economy Heats Up. Realtor Magazine. 12-13
Saturday, February 1, 2014
Cute Couple
I showed the cutest couple homes today! I can't wait to find them the perfect one for their growing family! #sellinghomessaundra #Iloverealestate #texomarealestate #realtor
Time to Show
It is a perfect to sell a house. I have an appointment at two and hope to write an offer at three!
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