Own Real Estate Right - Blog

* New ORR Website & Blog *

Jana M Lane — Tue, 01 Dec 2009 22:26:31 +0000

I have a brand new, fully integrated website! Please go to the blog section of Own Real Estate Right from now on. Thank you! – Jana

Expanded & Extended Home Buyer Tax Credit

Jana M Lane — Thu, 19 Nov 2009 22:38:01 +0000

It’s not just for first time home buyers anymore. Experienced home buyers now qualify too.

General Rules:

A “first time home buyer” is defined as someone who has not owned a primary home in the last three years. If you are a “first-time home buyer”, your tax credit will amount to 10% of the purchase price of your new home not to exceed $8,000.
A “long-time resident” is defined as someone who has lived in the same primary home for 5 out of the past 8 years. If you are a “long-time resident”, your tax credit will amount to 10% of the purchase price of your new home not to exceed $6,500.
The tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it
The home must be purchased for less than $800,000 before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit
You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendent (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces, and others
If you are married, both spouses must qualify for the credit
If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify. However, the total credit taken cannot exceed $8,000 (or $6,500 for “long-time residents”). Alternatively, if only one of the unmarried buyers qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit.
The credit applies even if you have co-signers on your mortgage loan
The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others

How does the tax credit work?

A tax credit is kind of like a gift certificate that you can use to pay your taxes – it reduces your income tax bill on a dollar for dollar basis. Imagine paying your bill at IRS Restaurant, and then later getting an IRS Restaurant gift certificate. Normally, you would need to go back to IRS Restaurant and buy more food in order to use your new gift certificate. But what if IRS Restaurant allowed you to just turn in your gift certificate for cash? That’s how the home buyer tax credit works! All you need to do is file a form with the IRS after you buy your new home and they will send you a refund check for $8,000 (or $6,500) – just like the example of IRS Restaurant that allows you to exchange your gift certificate for cash! Remember though, you’ll receive the $8,000 (or $6,500) from the IRS AFTER you purchase your new home, so you cannot use the funds to help with your down payment.

For more information about the home buyer tax credit or other recent updates to the mortgage and real estate markets, just give me a call. I would be happy to assist you with your mortgage in the purchase of your new home!

* Home Buyer Tax Credit PDF

* First Time Home Buyer Tax Credit PDF

To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another person any transaction or matter addressed in this communication. I recommend that you consult with properly licensed legal, tax and investment advisors for specific advice pertaining to your individual situation.

Harnessing Social Networks to build capital!

Jana M Lane — Sun, 15 Nov 2009 02:03:20 +0000

I came across a timely article in mortgage news daily today in which I am sharing with you. The importance of harnessing online communities for relationship building / maintaining and marketing purposes becomes imminent and clear every day. The small businesses and entrepreneurs who are early adopters of this tactic will be nicely rewarded. Openness and transparency are the keys to unlocking the door of this new and exciting world. It’s going to take time, effort and love to build your social network. And there are many rules to follow as well. If you don’t follow the rules, as in any society, you will be ostracized and become an outcast. So it is very important to know the rules and follow them. As Tara Hunt points out in her book, “The Whuffie Factor” monetary capital will start to flow from social capital or “whuffie”. “Whuffie is the residual outcome –or currency-of your reputation”. Leveraging these networks for reputation currency which will one day turn into monetary currency is the goal!

If you are in the Bay area on Thursday Nov. 19th, please be sure to check out my social networking seminar for realtors with industry pro Jerry Kidd. See you there!

Here is the article:

Social Media Marketing – Using Twitter & Facebook to Grow Your Business and Maintain Relationships

by David Bayer

Posted

Email Page (New!) | Print | Bookmark

“Social media marketing is here to stay” could very well be chalked up as the understatement of the year. Social media marketing has been on the rise for the past several years. Unfortunately, many small businesses, corporations, and independent freelancers have been slow to get on board the social networking train.

Saying “no thank you” to social marketing opportunities reminds me of the new commercial out for PS3. The advertisement begins with a disgruntled girlfriend who can’t wrap her mind around the fact that her boyfriend has indeed purchased PS3, but will not (for whatever reason) proceed to the next logical step: connecting to the internet. The girlfriend is speaking to a technical advisor with PlayStation who brings to her attention the fact that without connecting, he can’t possibly make use of all the wonder that PS3 offers, such as movie downloads, online gaming, and so much more. The final line of the commercial says it all, “What is wrong with him?”

Realtors – is Social Networking part of your 2010 Business Plan?

Jana M Lane — Wed, 11 Nov 2009 01:19:33 +0000

It should be! I am hosting a Social Media and Networking Seminar for Realtor’s featuring industry pro Jerry Kidd. Spend 45 minutes of your busy day with Jerry to learn how to integrate social networking into your real estate business. You’ll get a great overview on why social media and social networking is tailor-made for real estate agents. You’ll learn what it is, who’s using it, why it’s important and how to go about learning how to use it effectively in your practice.

When: Thursday November 19th, 2009 Time: 9:30-10:30am (optional networking after) Location: Fort Mason, Gatehouse, San Francisco, CA. (MAP)

Seating is limited so RSVP now to events@ownrealestateright.com or 415/425.0857. You can also RSVP to me on Facebook, Linked In, or Twitter.

Bonus: Receive a $25.00 discount on NAR’s ePro Course and receive information on the all-new NAR Social Media course!

About the host: Jana Lane is a Certified Mortgage Advisor. Her company is Own Real Estate Right in affiliation with O’Donnell Financial Group.

Featuring: Jerry Kidd, GRI, CRS, CRB, etc. Jerry is a 23-year veteran of the real estate industry and author of the popular blog RealtyTechBytes which focuses on technology tools for real estate agents and how to use them. Jerry is the owner of Jerry Kidd Training and Consulting Company specializing in training real estate agents and lenders how to use today’s technology tools to grow and sustain their businesses.

Are you comfortable referring a friend to someone you’ve done business with?

Jana M Lane — Thu, 05 Nov 2009 18:37:13 +0000

Is it in your nature to refer your friends, family or associates to professionals that you have worked with recently or in the past? I believe that it is simply in some people’s nature to refer, and for other people, it’s not. This blog post sheds more light on the subject. It’s a two-minute read, and as a professional person who strives to earn referrals, I found it a good reminder and well worth the read! I hope that you will find value in it as well.

Read Bill Good’s “Secret to Real Referrals” here.

Please let me know your thoughts.

-Jana

Relief for Homeowners with Jumbo Mortgages

Jana M Lane — Thu, 29 Oct 2009 22:06:17 +0000

Not quite the relief that I am looking for - but it’s a start.

Even though the availability for jumbo loans isn’t what it once was, the IRS has apparently decided to give a break to jumbo mortgage holders. More specifically, Forbes reports that the IRS has concluded that a taxpayer can deduct interest on the first $1.1 million of a home mortgage – which is $100k more than an earlier limit. Previously (or currently depending on when this goes into effect) interest on up to a 1m purchase, money borrowed, plus $100k equity borrowed, could be deducted. Either way you slice it, you can deduct interest on an extra $100k borrowed and that’s not a bad thing - IF you qualify for the deduction.

On top of that, taxpayers can file amended returns for the past three years and claim thousands in refunds. Yippee!

I think that’s just mean… Oct 15th just passed (last date to file extended returns – I filed 10/13) and my tax preparer was just about to relax… Not so fast

Adjustable Loans aren’t always a Bad Option..

Jana M Lane — Thu, 08 Oct 2009 20:35:31 +0000

Is your ARM (Adjustable Rate Mortgage) about to adjust? My friend’s just did, and her payment dropped $745/month.

An adjustable loan may not be such a bad thing after all! As a Mortgage Advisor, I get calls from people all the time who are terrified that their current home mortgage is about to adjust, and when I say, “That may not be such a bad thing” – I often hear silence… Followed by, “What do you mean?” Or, “I don’t want to take that chance.” Fear of the unknown, combined with the media storm of bad news about evil adjustable loans, etc, and I can certainly understand why…

Now, this isn’t for everyone – but I say have your Mortgage Advisor look at the terms of your existing Note, when your loan is scheduled to adjust, and carefully analyze the parameters around how it adjusts and what index it’s tied to… Letting your loan adjust may possibly be the best option for the short term.

Here is a great example: A close friend of mine came to me earlier in the year asking about refinancing, and based on the current value of their home, the loan to value was too high. Long story short, they tried submitting a Loan Modification, but it appears to have been denied… I suggested contacting their current lender to see if they are participating in the “Making Home Affordable” program, also know as HARP, and they were told initially told that they did qualify, however; they were subsequently notified that they in fact did not qualify – and have since been given different reasons as to why not every time they speak to them. The last piece of information they provided was that jumbo loans (loans over $417K) are not owned by Freddie/Fannie and therefore do not qualify. They have toiled over getting out of this adjustable loan for fear that the payments were going to skyrocket.

Last week she came to my office and said, “You’ll never believe what I got in the mail…” I thought that she had been approved for the HARP program, but no – they were notified that their loan was adjusting from 6.250% DOWN to 4.250%.

How is this possible you ask? Her loan is tied to the LIBOR and this particular index was at 5.271 three years when they purchased. Today that index is at 1.2693. Combine that index with the other terms of their loan and voila… Her rate is now dropping 2.00% and her payment is dropping $745.34/month. Their loan will not adjust for another 12 months, allowing them some time to save the $745/month (just shy of $9000 in one year), and who knows where values will be in October of 2010.

So, pull out that mortgage note and read it! If you don’t understand it – you should have a reputable Mortgage Advisor read it for you. Unfortunately, many folks think they have no options at all – but sometimes doing nothing is exactly what you should do!

- Jana M. Lane

Would you rather pay .50 cents for Good Advice or .25 cents for Bad Advice?

Jana M Lane — Tue, 08 Sep 2009 23:50:34 +0000

I’d like to share a recent experience with you, but in general terms, as it applies to all of us in choices we make every day.

Most clients are referred to me on the advice of past clients and Realtors who have learned to trust my advice. Most clients believe that they know exactly what they want even before we have our initial consultation. Some because they were told that one thing is better than another, some did their own research and based on what they know have an idea what they want, etc.

I’m a Mortgage Advisor and just about everyone who I come in contact with thinks they would like a Low or No Point loan. Sounds good, doesn’t it? But is it the best choice for you?

Each client I work with is asked to complete a Mortgage Planning Questionnaire so that as an Advisor I have a “big picture” view of the short and long terms goals and needs of my clients. Based on this information I then prepare a detailed analysis so that my clients can compare several loans, rates and costs to determine which product, rate or cost will be most appropriate for them.

Recently, a client who was purchasing their first home stated that they would be living in their new home for a very long time; no less than 10 years. With that in mind I prepared a Total Cost Analysis where we were able to compare the various rates at No Point, paying 1 Origination Point, or Paying 2 Points for an ever lower interest rate – and I compared each of these loans net cost/savings over a 15 year period.

In this case paying 2 points at closing (over $14,000 on top of the other closing costs) for a lower rate vs. No Points at a slightly higher rate would net him over $40,000 in savings over a 15 year period. That’s serious savings! He discussed the options with his wife and called to tell me that they decided it made the most sense to “buy down” their rate and pay the 2 points.

The next email I get from my client is to tell me that another lender, who he had spoken with before he was referred to me, suddenly called with an offer for the No Point loan that he had asked for weeks ago.

The moral of the story is this: This lender was more than happy to give the client a No Point loan because that’s what the client asked for. They did not ask him why he wanted a No Point loan; in fact, they didn’t ask him anything about what his goals were or what his intentions were short or long term.

My client told me that he decided to work with me even though the costs were about $1600 more at closing because he was happy with my service and the advice I had given him.

While I absolutely appreciated that… I thanked him, and reminded him that working with me actually saved him $38,400 ($40,000 in savings less the $1600 cost) over the next 15 years.

So, would you rather pay .50 cents for good advice or .25 cents for bad advice?

Is Social Media a Fad?

Jana M Lane — Thu, 03 Sep 2009 21:05:45 +0000

If you think so… Here are just a few of the statistics in the video below.
It took Radio 38 years to reach 50 million listeners;
TV, 13 years to reach 50 million viewers; Internet, 4 years; IPod 3 Yrs…
Facebook added 100 million new users in less than 9 months.
96% of Generation Y have joined a social network and most of generation Y and Z think email is passé.
24 of the 25 largest newspapers are experiencing record declines.
People no longer search for the news… The news finds us!
In the near future people will no longer search for products or services…They will find us via social media.

The answer is… NO! Social Media isn’t a Fad – it’s a fundamental shift in the way people communicate.

via Socialnomics

Do you know how to social network?
I’d love some feedback on what you are doing to social network. What’s working? What isn’t?

In November I’ll be hosting an event in SF for Real Estate professionals. Guest speaker, Jerry Kidd, RealtyTechBytes.com, will speak directly to Real Estate professionals about Social Networking as it relates to the industry, and I will share a roadmap for implementing Social Networking into your 2010 Business Plans.

Economists see the Recession Ending.. What do you think?

Jana M Lane — Thu, 13 Aug 2009 21:12:31 +0000

Winston Churchill reportedly said, “If you put two economists in a room, you get two opinions, unless one of them is Lord Keynes, in which case you get three opinions.” The Wall Street Journal polled 52 economists, and 47 found the time to write back. Seems there is beginning to be some optimism about the economy. 27 of the economists said the recession had ended and 11 seeing a trough this month or next.

Personally, my family is still feeling the recession. I’m not making or spending more money today than I have any other month this this year. Of course, I’m not sure I ever spent less, just switched from cash to credit cards. My friends who are laid off or have had their hours reduced aren’t being called back to work. Most people I know actually have been and still are spending less and trying to save more.

Do you think the economic recession is over? Take Our Poll