August 20, 2005
THE REAL (ESTATE) STORY
By Larry Underhill
DO YOU EVER DREAM that you’re flying? I was floating through the shifting currents, high above the rocky hills and sandy valleys below. I was following a large sea turtle who floated serenely high above the sand like a Thanksgiving Day Parade balloon.
You guessed it. This was no dream. Snorkeling feels like flying!
REAL ESTATE? Oh, yes! CONGRATULATIONS to Pete and Linda Agatep on their recent purchase of investment property. Since I was the Realtor AND the Seller in this adventure, I’ll hold off on the self-congratulation.
This was an interesting sequence of transactions. My sale to the Agateps was the first "leg" of a 1031 tax-deferred exchange. I rolled the capital gain into the replacement property, a Lodi rental home (Congratulations to my Mystery Seller in that transaction!). Since the cash from the first sale allowed me to own the replacement property outright, I had no loan on it at all…for a couple of days…until the "cash out" refinance loan funded and I pulled out a chunk of change to go do it all again! We closed on the Agatep sale on a Monday, the replacement-property purchase on Wednesday, and the refi on Friday. Busy week.
I MENTION this to illustrate one more of the many ways real estate investment (in my humble opinion) is superior to other forms of investment. If I had made a profit in the stock market and I wanted to take the gain and invest in something else, my Uncle Sammy would be there to collect his share off the top, thereby taking a sizable bite out of my investment capital. The 1031 tax-deferred exchange allows an investor to transfer ALL of the gain (less costs of sale and exchange fees) to the next investment! Thanks, Uncle! Also, refinancing is not a "taxable event", which means you can pull equity out of your investment without incurring an immediate tax hit. These are good tools if used properly. Since I am NOT a tax expert, I encourage you to get professional advice before you pull the trigger on any investment strategy. I just want to pique your interest a little. Questions? Let’s talk.
THE PAVED ROAD ENDS just past Makena in South Maui. If you know where to find the opening in the fence, you can walk an arduous trail across broken shards of lava to some of the prettiest snorkeling coves on the island. Blue sky, blue-green water, fish of every color and size…and as I paddled back toward the rocky shore at the end of my adventure, the BIGGEST sea turtle I’ve ever seen, swimming up from under a big rock twenty feet below me! This was not the serene guy mentioned above, but a bigger, bolder, more curious feller! It’s the first time I’ve ever found myself backing away from a sea turtle! Usually they’re moving away from you. He wasn’t nasty, just curious, but he gave me a bit of a thrill.
MY SUNWEST listing is in escrow now, but let me remind you about a few others! 2177 Eaton Drive is a GREAT value in a 3000-square-foot home! Five bedrooms, three full baths, three-car garage. This super-clean home has all this and more! $579,950. Thinking of investing? 123 East Walnut is receiving a LOT of interest from investors looking for strong cash flow and a well-managed six-plex ($899,950). I have more, and new listings on the way…Next week’s column.
Statesman’s John Manguso will hold an Open House at his new listing at 918 West Woodbridge Road today from 11:00 a.m. to 1:00 p.m. Extensively remodeled inside and out with granite counters and stainless steel appliances in the updated kitchen, this place is a charmer! $750,000.
GOTTA GO! Another appointment awaits. Have a great week! See you next Sat.
By Larry Underhill
DO YOU EVER DREAM that you’re flying? I was floating through the shifting currents, high above the rocky hills and sandy valleys below. I was following a large sea turtle who floated serenely high above the sand like a Thanksgiving Day Parade balloon.
You guessed it. This was no dream. Snorkeling feels like flying!
REAL ESTATE? Oh, yes! CONGRATULATIONS to Pete and Linda Agatep on their recent purchase of investment property. Since I was the Realtor AND the Seller in this adventure, I’ll hold off on the self-congratulation.
This was an interesting sequence of transactions. My sale to the Agateps was the first "leg" of a 1031 tax-deferred exchange. I rolled the capital gain into the replacement property, a Lodi rental home (Congratulations to my Mystery Seller in that transaction!). Since the cash from the first sale allowed me to own the replacement property outright, I had no loan on it at all…for a couple of days…until the "cash out" refinance loan funded and I pulled out a chunk of change to go do it all again! We closed on the Agatep sale on a Monday, the replacement-property purchase on Wednesday, and the refi on Friday. Busy week.
I MENTION this to illustrate one more of the many ways real estate investment (in my humble opinion) is superior to other forms of investment. If I had made a profit in the stock market and I wanted to take the gain and invest in something else, my Uncle Sammy would be there to collect his share off the top, thereby taking a sizable bite out of my investment capital. The 1031 tax-deferred exchange allows an investor to transfer ALL of the gain (less costs of sale and exchange fees) to the next investment! Thanks, Uncle! Also, refinancing is not a "taxable event", which means you can pull equity out of your investment without incurring an immediate tax hit. These are good tools if used properly. Since I am NOT a tax expert, I encourage you to get professional advice before you pull the trigger on any investment strategy. I just want to pique your interest a little. Questions? Let’s talk.
THE PAVED ROAD ENDS just past Makena in South Maui. If you know where to find the opening in the fence, you can walk an arduous trail across broken shards of lava to some of the prettiest snorkeling coves on the island. Blue sky, blue-green water, fish of every color and size…and as I paddled back toward the rocky shore at the end of my adventure, the BIGGEST sea turtle I’ve ever seen, swimming up from under a big rock twenty feet below me! This was not the serene guy mentioned above, but a bigger, bolder, more curious feller! It’s the first time I’ve ever found myself backing away from a sea turtle! Usually they’re moving away from you. He wasn’t nasty, just curious, but he gave me a bit of a thrill.
MY SUNWEST listing is in escrow now, but let me remind you about a few others! 2177 Eaton Drive is a GREAT value in a 3000-square-foot home! Five bedrooms, three full baths, three-car garage. This super-clean home has all this and more! $579,950. Thinking of investing? 123 East Walnut is receiving a LOT of interest from investors looking for strong cash flow and a well-managed six-plex ($899,950). I have more, and new listings on the way…Next week’s column.
Statesman’s John Manguso will hold an Open House at his new listing at 918 West Woodbridge Road today from 11:00 a.m. to 1:00 p.m. Extensively remodeled inside and out with granite counters and stainless steel appliances in the updated kitchen, this place is a charmer! $750,000.
GOTTA GO! Another appointment awaits. Have a great week! See you next Sat.
Statesman Realty
(209) 333 2380
1-800-407-SOLD (7653)
1-800-407-SOLD (7653)
Email: Larry@LarryUnderhill.com
posted by Larry Underhill at 16:35
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