Local Real Estate Trends

The Sunday Seattle Times usually offers a real estate Times Watch in the business section of the paper. This past Sunday, the Seattle Times reported that the Case-Shiller home price index was up 12% for home sales in Seattle, from 141.48 in July 2012 to 159.50 this July. The S&P/Case-Shiller 20-city home price index was up 0.62% in July, its 18th consecutive monthly gain, with all 20 metros ahead. Its 12.39% annual gain was its biggest since early 2006. 

There were over 3000 home sales in August of this year, although housing inventory shows little change from last year. Pending Home Sales are still up 5.8% for the year.

Further encouragement came from single-family New Home Sales, up 7.9% in August and 12.6% year-over-year.
 


Building permits were up 18% in July 2013, from 732 last year to 867 this year; all signs of a solid housing recovery.


My tax assessments for 2013 seem to reflect this price trend in Seattle as well....

Happy investing!

FREE income tax software!

FREE Income Tax Software

Did you know that if you make $57,000 or less, you can use free online software from the Internal Revenue Service to prepare and file your taxes?

Taxpayers who earn more than $57,000 can use Free File Fillable Forms, an electronic version of the IRS paper forms.

Many states partner with Alliance members to offer free state returns. There is no fee to submit federal taxes electronically.

This software is available free from the IRS as part of an agreement with Free File Alliance, a group of 15 commercial tax software providers, including Intuit and H&R Block. For more information, go to www.freefile.irs.gov

Happy Investing!

Planning for Live/Work Space

Square Feet Seattle is a great resource for artists and others looking for commercial space to buy or lease. It is also a great primer for anyone considering a real estate transaction. This blog comes from the Square Feet Seattle curriculum:

The most important aspect of moving to a new space, whether it is leased or purchased is to:

BE PREPARED!

Think about why you need a new space. Do you need more storage? A bigger work or living space? Better access for your clients, colleagues or students? More parking options? Lots of windows or more open space or better ventilation? Your answers will help you define and direct your search.

While brainstorming, try to answer these five fundamental questions:

1. What size of space do you need?
2. What type of space do you need?
3. What can you afford?
4. Which neighborhoods can provide you with the space you want and need at a price you can afford?
5. Which neighborhoods offer the professional and artistic support systems you need to thrive as an artist, business or organization?

Many other questions will arise that will be unique to your situation and needs: Do you have particular space layout requirement? Do you need a space that can accommodate several art production methods? Do you rehearsal, performance and office space? You might end up with a very long list! 

Once you've articulated your needs, prioritize them. Try to spend at least an hour or more devoted to this step. Round up all major stakeholders -- including those who will work and/or live in the new space -- to participate in this exercise, so that the final list of priorities, wants and needs will reflect each person's concerns.

Tip: If you are leasing space make sure to keep in contact with you landlord periodically especially as the end of your lease nears - try and get a sense of the landlord's intention regarding renewing the lease. Even if you feel secure in your space it is never a bad idea to have a preemptive plan should something unexpected occur.

Assessing Your Needs

To determine the size and type of space you need, begin by reviewing your current workspace layout. Do you have enough wall space, storage space, etc.? Is the location right? Is it too big, or too small? What do you need more or less of in your new space? Do you wish to combine your living and working spaces?

To help you document and clarify your needs, complete the Space Layout Requirement Worksheets and the Space Analysis Worksheets (even if you are currently lacking a space).These are located on the Square Feet Seattle website.

Space Layout

The Space Layout Requirement Worksheets help you to compare the layout and total square footage of your current space with a potential new space. As you complete the worksheets, disregard categories that do not apply to your situation, while keeping two things in mind:

1. What type of activities will occur in the room?
2. What type of furniture and/or equipment will the space need to accommodate?

In determining the total square footage requirements for your new work or live/work space, don't forget to include features such as the hallways between enclosed rooms, or the amount of space around a work station -- typically, an additional 15-30% added to your total square footage. For spaces of 1,500 square feet and up, it might be wise to use the services of an interior designer or space planner in order to create a layout that optimizes efficiency and accuracy in measurement.

Space Analysis

Will your new space need a loading dock? An Auditorium? More parking? Room for residential quarters? The Space Analysis Worksheets will help you answer these questions by getting you to analyze your current space. Ignore questions irrelevant to your particular situation.

It might also be helpful to design a potential layout and compare it to your current space. Both Bob Vila and Furniture.comoffers on-line space layout and planning programs to assist you.

TIP: Arts organizations and businesses should enlist more than one person in searches for space, so that individuals' preferences do not outweigh the needs of the entire group.

Further Questions

As you fine-tune your space needs, also consider the following questions:

• Can you be productive in a residential space?
• Do you need commercial/industrial space?
• Do you want to lease or buy?
• Have you considered buying space -- either alone or with colleagues?
• How many occupants share your current space? How many will share your next space?
• Which locations do you prefer?
• When can you move?
• What is your budget?
• What special features must a space offer in order to accommodate your art practice?
• If leasing, how long must the lease last?
• Will you have to store or dispose of toxic materials?
• Are there any other requirements you need to address?
• Might your long-term plans, or those of your organization, affect the use or need of the space?
• Do you need to frequently accommodate gatherings of people? If so, how many?
• What, if any, are the deficiencies of your current space?

Next Steps:

If you've completed the worksheets, you might be wondering, "What does all this mean?" At the very least, these exercises have gotten you to focus on your space needs and, hopefully, identify more of them.

In addition, the worksheets form a handy, written summary that can serve as your guide when evaluating potential spaces. As you refine your needs, revisit these worksheets. Invite others who will share or use the space to also complete them. 

ArtHaven is a division of my Home Land Seattle brokerage, devoted to working with artists, arts organizations, and cultural institutions. If you need help finding the perfect living or work space, please contact Wendy Ceccherelli at HomeLandInvestment@gmail.com

More information on Square Feet Seattle may be found at 
http://www.seattle.gov/arts/space/sqft_seattle.asp

Happy Investing

Tips To Complete Your Kitchen Remodeling Project

If you are tired of the look or layout of your kitchen, remodeling is one of the most cost-effective ways to get the space of your dreams. Kitchens are among the most trafficked of any room, so redesigning yours will truly breathe new life into your home. When it comes to starting the process, you will want to be equipped to handle the layout, design, and how to pick the right contractor and know how to communicate with them. When planning your kitchen remodeling project, there are a few things you need to keep in mind.

First, you will want to find the perfect contractor to tackle your project. Asking friends and neighbors for their opinions or recommendations is always a good place to start. Before you make any decisions, you should always check out a contractor's previous work. You should also try visiting a job that is in progress. This way you can have an idea of the results any given contractor will yield as well as how they conduct each project that they undertake. If you find the perfect company to tackle your project, it is likely that they may be busy with other projects. Be patient and wait it out. Ask for references and speak with past customers to get a sense of how the project may go.

Before you approach the kitchen planner, you should have a good idea of the layout that you want. Go in prepared. A planner can help you to maximize your space and your budget by utilizing a few tips and tricks, but you should go in with a scale drawing of the space, including all of the important aspects such as outlets, heating, doors, and so on. You should also have a list of everything that you want out of your design. Bring in pictures of designs that you admire or certain materials that you like. Figure out the layout that will work best for you and your family.

You will want to determine the budget and the timeline with your contractor before any work begins. You may be tempted to do the work yourself, but hiring a GC is always the smart decision. When you do hire a contractor, take the time to find the one that works for you. Don't commit to any GC if you feel uncomfortable for any reason. Kitchen remodeling is an investment, so take the time necessary to plan out the process from start to finish.

Downtown Seattle Condo for Rent December 1st

AVAILABLE December 1.


Located in the historic red brick Austin A. Bell building in hip Belltown location, in the heart of downtown Seattle. Highly walkable! The location is the best. Next-door to Starbucks. Macrina Bakery, and numerous excellent eating places of every cuisine within a few blocks.

Garage parking is available for an additional $150. For car-less commuters, Enterprise rentals will pick you up at the door, and a car-share membership can be arranged for short term needs. Easy walking distance to all downtown amenities and access to public transportation.

In a Soho type atmosphere, the unit contains a small office space, Viking stove, queen-size wallbed with NASA mattress in the loft which has additional den like area for comfortable napping, reading or LCD TV viewing. More photos on request.

This historic building was completely restored a few years ago, and the rental unit remodeled to include a small office, additional closet and storage space.

Amenities: Ceiling fan, Full Kitchen, Microwave, Dishwasher, Refrigerator, Ice Maker, Washer, Dryer, Rooftop patio, additional patio on condo floor.


Activities (on site or nearby): Pike Place Market, Shopping, Restaurants, Cinemas, Museums, Symphony, Ballet, Swimming, Boating, Sailing,Hiking, Golf, Fishing, Downhill Skiing, as well as all other Seattle features. New sculpture park on the Puget Sound is walking distance.

Sorry, no pets.

Exposed brick and 18-foot tall ceilings in this loft-style condominium provide a light-filled urban experience, just blocks from Seattle's Pike Place market.

If interested in a showing, please contact me at HomeLandInvestment@gmail.com

Happy Investing!

Food for Thought

What you need to know before buying a house:

http://online.wsj.com/article/SB10001424127887323906804579036763834997586.html?mod=e2fb

I Buy Houses Signage

Today's guest post is from fellow Real Estate Association of Puget Sound member, investor and broker Greg Gallagher, regarding the best sources for "bandit signs," those ubiquitous "I Buy Houses" signs that investors post on utility polls and public rights-of-way:

I have put out over 5,000 bandit signs (with some help of course.) I tried a lot of different things and I found hand written signs on stakes got me the most phone calls.  The cheapest method I found: 

1.  Contact Calsak Plastics, 19030 68th Ave S # B  Kent, WA 98032 
(425) 251-5400.  I picked up the 4' x 8' sheets of yellow corrugated plastic. 
2.  Cut the sheets down with a box cutter to 24" wide by 16"tall.  Each sheet will yield 12 signs. 
3.  Handwrite the message with a black sharpie. 
4.  Buy either 24" or 36" stakes at Lowe's/Home Depot (shop around) 
5.  Nail the signs to the stakes using roofing nails with a colored grommet.  That will keep you from hammering the nail too deep and they rarely come out. 

This process got my overall cost down to about $1 per sign all in. Disclaimer - there are rules by certain cities, counties and the state governing bandit signs.  Just be aware. 

--posted by Greg Gallagher, Dimension Properties

Closing Tips for Sellers

I have two real estate transactions closing at the end of this month. The one closing today cost the Seller and the Seller's Listing Broker $1000 due to items that were not done or not done correctly in time for closing. These mistakes could have been avoided if the Seller had carefully read and reviewed his purchase agreement, or had the Listing Broker taken the time to do a final walk-through with the seller. Issues included: no required carbon monoxide detectors, attached speakers were removed although they were specified in the purchase agreement, bags of trash and garbage left behind.

To avoid further surprises at the closing table, Trulia has published an excellent paper on four tips for sellers. For your free copy of this report, please email me privately at HomeLandInvestment@gmail.com

Happy Investing!

Seattle Rental House - Open Today!

OPEN HOUSE TODAY, THURSDAY, 1 pm!
 

AVAILABLE OCTOBER 1! 

All the charm of Maple Leaf, this five bedroom home and gracious open floor plan nearby Greenlake and Thornton Creek Place. A spacious main level with formal living room, family room, and chef's kitchen take in ample light and energy. The Master Suite and luxurious bathroom boast a private balcony. The additional bedrooms and lower level rec. room offer a multitude of options. Details are plentiful with extensive wainscoting. One block from highly regarded Olympic View elementary school.


Virtual Tour:
http://youtu.be/40ZEijik_nM

Great house for renting by the room!

Happy Investing!

Seller Financing for Your Property

I will buy almost any property, in any condition, in any location AND will pay a seller more than what it is currently worth IF the seller can carry the paper. Why is that?

My partners and I focus exclusively on purchasing owner-financed income-producing properties mainly in Seattle, and the greater Seattle area. Owner financing allows us to purchase more properties, buy them more quickly, and use more different exit strategies than under conventional financing. For a seller, owner financing may allow for a higher price, greater profit, quicker exit, less expense, and lower taxes than if sold conventionally. For older sellers, it may preserve eligibility for Medicaid, in the event that is needed in the future.

If you are considering carrying the financing on your properties, commercial or residential, I am happy to talk. FREE book on seller financing available to anyone with a property to sell, who is willing to consider owner financing. Just email me privately at HomeLandInvestment@gmail.com, with your contact information, including the address of the property you would like to sell.






Happy Investing!

History of Interest Rates Over Time

Interest Rates 1981-2012

This graph represents the federal funds effective interest rate (the average rate at which banks lend to one another overnight), which has generally declined to historic lows over the 30-year period represented. Investment returns, as well as interest rates on bank loans and other fixed-income instruments, could potentially be affected when this rate rises. And of course, history is no predictor of future rates....

Source: Board of Governors of the Federal Reserve System (www.federalreserve.gov), July 17, 2013 

Happy Investing!

New Markets Tax Credit

The New Markets Tax Credit is a great investment tool used to spur development in lower-income neighborhoods. Here is information on how it works from the City of Seattle's Office of Economic Development:

The federal New Markets Tax Credit (NMTC) program provides a 39% credit against federal income taxes for business and real estate investments located in low-income areas. The tax credit is claimed over a seven year period. NMTCs can only be distributed by certain entities that have obtained tax credits through a competitive application process with the federal Treasury Department. The City of Seattle’s Office of Economic Development (OED) created the Seattle Investment Fund LLC (SIF) to participate in the NMTC program.

SIF will distribute NMTCs to private investors who provide low-cost financing for business and real estate projects located in eligible census tracts. The following are examples of the types of projects financed with NMTCs:

· Business owner-occupied property undergoing expansion and/or large equipment purchase

· Commercial real estate development that includes space for neighborhood retail businesses and/or office space

· Mixed-use projects with at least 20% of the project revenue coming from non-residential sources

· Community facilities

Qualified Projects

· Geographic Eligibility

o Minimum eligibility: NMTC projects must be located in census tracts meeting minimum criteria set by the federal government regarding poverty and resident income data.

o Areas of deeper economic distress: beyond minimum eligibility, SIF will give strong preference to projects located in areas of deeper economic distress regarding poverty, resident income and unemployment data. SIF has made a commitment to the federal government to allocate the bulk of its NMTC allocation in such deeper distress areas.


· Project Readiness

o The Investment Committee will not consider proposed projects until SIF has obtained letters of interest from the lenders/NMTC investors needed to finance the transaction.

o Evidence is submitted to confirm that the project's proposed use of NMTC proceeds is feasible and that the project can be completed within the proposed timeline.

· Project Type and Size

o Real estate or business projects with at least 20% non-residential income.

o Projects with a development cost in the neighborhood of $10 million.

· Public Benefits:
Priority will be given to projects that achieve one or more of the following economic development benefits:

o Create or retain permanent jobs;

o Increase the availability of goods and services needed by the neighborhood;

o Serve as an anchor for future economic development in the immediate neighborhood;

o Enhance the local tax base through increased sales and/or property taxes from future project operations;

o Include energy efficient building or process improvements; and/or

o Increase the amount of affordable housing (i.e. housing serving households at 50% - 80% of median income) available for nearby residents

Financial Benefits to Projects

· Interest-only loans for seven years

· Up to 18% of NMTC financing is permanent equity that does not need to be repaid

· Hypothetical example of how NMTCs benefit a $10 million project

o SIF distributes NMTCs for an eligible project

o Project uses NMTCs to attract $10 million in private financing, including $8.2 million in loans and $1.8 million in permanent equity from NMTC investors

o $1.8 million permanent equity does not need to be repaid

Choosing Commercial Awnings for Your Business

Commercial awnings are a part of a building that can add an extra look to a building. As you seek the best ones for what you need, take the time to consider the durability, color, warranty, and reputation of the products that various companies provide.

The durability of commercial awnings is an important consideration as you look for the right one for your business. There is a lot of variety out there, but this aspect of your choice is highly important. If you live in a windy area, are in a location with many storms, or in an area that gets heavy snow, then all of these things need to be taken into consideration.

Color is also important to consider as you look for the right product for your business. This aspect can draw a person into your building or make them feel uneasy. It is likely that your will want your business to have a welcoming entryway. Take the time to look at pictures that the various companies may show to represent the various products that are available.

The warranty on commercial awnings also needs to be checked out. The length of the warranty will not necessarily indicate how long the product will last. It is always good to have a longer warranty, but if you are confident in the product that you are purchasing, then it may not be as significant. Many warranties may not cover damage from storms, so you will need to make sure to check into this before purchase.

Knowing the reputation of a company as well as the products that they sell is important. Research is essential if you desire to find out about the reputation of products and a company. Going on the internet and reading a variety of reviews about companies will help you to know what other people have experience with various companies and products.

Taking the time to do the research in order to choose the right commercial awnings is a wise decision. By doing so, you will likely end up with a lasting product that will draw the consumers to your business so that they will want to want to be a part of what your company has to offer. Even though cost may not be an issue for your business, doing research can also help you to find the best deal. If you do not yet have an entrance that is welcoming to visitors, then you should begin your research today.

Eminent Domain to Forestall Foreclosures?

Very interesting news from California on National Public Radio this morning. The City of Richmond is looking at a unique approach to forestall foreclosures by purchasing mortgages on underwater properties using the City's power of eminent domain.

Listen to the story here:
http://www.npr.org/2013/09/12/221636531/calif-city-proposes-unique-plan-to-avoid-foreclosures

Happy Investing!

Property Manager Wanted

Growing real estate investment firm and brokerage Home Land Seattle seeks a property manager to oversee Property Management division. Portfolio currently holds nine rental properties, owned by seven different owners, all located within the city of Seattle. These properties currently generate almost $23,000 monthly in gross rental income.

New property manager will receive commissions on servicing the existing properties, but is also expected to bring in their own accounts as well. 

Primary duties:

• Deliver lease applications, leases, or any amendments.
• Receive lease applications, leases, amendments, security deposits, rental payments, or any related payment for delivery to, and made payable to the owner or real estate firm.
• Show rental units.
• Execute leases or rental agreements, rental payments, or any related payment for delivery to, and made payable to, the owner or real estate firm.
• Act as a scrivener, completing blanks on preprinted and preapproved rental agreements with the exact language provided by the property owner, designated broker, or managing broker. The unlicensed assistant may exercise no discretion over the language used to complete the blanks on a rental agreement, but may only write words dictated by the property owner, designated broker, or managing broker.
• Provide information about rental units, leases, lease applications, security deposits, and rental amounts to prospective tenants.
• Do move-in/move-out walk-throughs and condition reports with tenants
• Handle property maintenance requests from tenants and owners
• On behalf of the firm, market for new property management clients and tenants
• Assist in property management functions by carrying out administrative, clerical, financial, or maintenance tasks.

The ideal candidate will have knowledge of Washington State Landlord Tenant Law; experience with single family dwellings; understanding of home and facilities maintenance; supervisory skills of a wide variety of contractors to maintenance personnel; good communication skills with property owners in order to understand their goals and implement plans to achieve them; and ability to complete the daily, monthly and annual financial analysis for each property. 

Extensive experience is not necessary: We will provide the right manager with all the necessary tools to manage this portfolio of mostly single family residential properties. Property manager is not required to have a real estate license; but may find that this is a good opportunity to work towards acquiring a license.

Necessary skills are as follows:

-Strong written and verbal communication skills.
-Able to provide excellent customer service.
-Good computer skills, including working knowledge of all Microsoft Office products.
-Excellent organizational skills.

-Conflict resolution skills.
-Positive attitude.

-At least some single family property management experience
-Reliable transportation, current Washington driver’s license and auto insurance

The successful candidate will be a self-starter who thrives in a flexible work environment. This is a home-based position, with an office and properties in Seattle. It requires frequent evening and weekend obligations.

The compensation will be a percentage of what the portfolio generates, initially $500 per month. While the property manager is considered a contract position, without set hours, taxes will be deducted from the compensation, in compliance with state and federal law. The property manager works under the supervision of the Designated Broker of the real estate firm, Wendy Ceccherelli.

To apply, please send a cover letter and resume to:

Wendy Ceccherelli, Designated Broker

Home Land Seattle

HomeLandInvestment@gmail.com