Contact:   Justin Padgett

                 Phone: 512-787-6388

                 E-mail: justin@blackdogrealestate.com

FOR IMMEDIATE RELEASE IN TEXAS

JUSTIN PADGETT HAS BEEN AWARDED THE CERTIFIED RESIDENTIAL SPECIALIST DESIGNATION BY THE COUNCIL OF RESIDENTIAL SPECIALISTS.

San Marcos, 5/15/2013-Justin Padgett, a San Marcos Realtor® has been awarded the prestigious Certified Residential Specialist (CRS) Designation by the Council of Residential Specialists, the largest not-for-profit affiliate of the National Association of Realtors®.

Realtors who receive the CRS Designation have completed advanced courses and have demonstrated professional expertise in the field of residential real estate. Fewer than 31,000 Realtors® nationwide have earned the credential.

Home buyers and sellers can be assured that CRS Designees subscribe to the strict Realtors® code of ethics, have access to the latest technology and are specialists in helping clients maximize profits and minimize costs when buying or selling a home.

Justin Padgett is the owner and Broker of Black Dog Real Estate, Inc. in San Marcos, Texas. He is a member of the San Marcos Board of Realtors, Austin Board of Realtors, and San Antonio Board of Realtors. Justin Padgett is also very passionate about rescuing dogs, being an advocate for private property rights and loves his family dearly.  His dog Lady is a rescue dog and is the inspiration for starting his company to use a percentage of the proceeds to help rescue more dogs and other animals!

Refinancing your home because a lower rate is available is one thing but the closing costs associated with that new loan could add several thousand dollars to your mortgage balance. By following some of the suggestions listed below, you may be able to reduce the expense to refinance.

• Tell the lender up-front that you want to have the loan quoted with minimal closing costs.
• Check with your existing lender to see if the rate and closing costs might be cheaper.
• If you’re refinancing a FHA or VA loan, consider the streamline refinance.
• Shop around with other lenders and compare rate and closing costs.
• Credit unions may have lower closing costs because they are generally loaning deposits and their cost      of funds is less.
• Reducing the loan-to-value so that mortgage insurance is not required will reduce expenses.
• Ask if the lender can use an AVM, automated valuation model, instead of an appraisal.
• You may not need a new survey if no changes have been made.
• There may be a discount on the mortgagee’s title policy available on a refinance.
• Points on refinancing, unlike purchase, are ratably deductible over the life of the loan.
• Consider a 15 year loan. If you can afford the higher payments, you can expect a lower interest rate than a 30 year loan and obviously, it will build equity faster and pay off in half the time.

A lender must provide you a list of the fees involved with making the loan within 3 days of making a loan application in the form of a Good Faith Estimate. Every dollar counts and they belong to you.

It’s a valid strategy but there are time restrictions that could have serious tax implications for some homeowners.

The section 121 exclusion for gain in a principal residence requires that the home is owned and used as a main home for at least two years during the five year period ending on the date of the sale.  This allows a homeowner to rent their home for up to three years and still have some part of the exclusion available.

The sale of a home with a $200,000 gain that qualifies as a principal residence would result in no tax being paid by the owner.  Comparably, a rental property with the same gain could have a $30,000 or higher tax liability depending on the length of ownership and tax brackets of the investor.

The housing market has dramatically improved in the last year.  If you have a gain in a home that has been your principal residence and it has been rented less than three years, you might want to consider selling it while you qualify for the exclusion.

If you are considering a sale on your principal residence that has been rented, consult with your tax professional for advice on your specific situation.  For additional information, see IRS Publication 523.

While Acquisition Debt is used to buy, build or improve a principal residence, the Home Equity Debt can be used for any purpose.  It can be used for educational or medical expenses, to purchase a personal car or boat, consolidate debts or pay off credit cards.

A homeowner with $15,000 of credit card debt at 19% and sufficient equity in their home could replace it with a home equity loan at much lower interest rate. Not only would the interest rate on the home equity loan be about 1/3 of the rate paid on the credit card, it’s would now be tax deductible.

If the taxpayer was in the 28% bracket, the net interest on a 6.5% loan would be 4.68% after tax benefits are considered.
Shifting personal debt to Home Equity debt can result in an interest deduction and probably, a lower interest rate. For more information see IRS Publication 936 page 10 and consult your tax professional.

This video might as well apply for all upcoming school bonds!  This won’t fix our failing schools and only continue to burden the producers that make this economic engine go around.  VOTE NO!  These bonds are sold as “for the children”, and “it is just a cup of coffee”!  We are Taxed Enough Already!!!  Thanks to a very good friend’s wife for making this!

Once you decide on a home, don’t waste time; write an offer and submit it as soon as possible. Competing with another buyer happens more frequently than you’d expect. Multiple offers are a seller’s advantage but here are some tips to level the playing field:

• Realistic offer – don’t give the impression you’re trying to “steal” the property. Submit comparable sales that justify your offer.
• Pre-approval letter – this satisfies seller’s biggest concern that an unqualified buyer will unnecessarily take the home off the market and the seller will lose other opportunities.
• More earnest money – it shows you’re serious and makes the seller feel like the contract will actually close.
• Minimize contingencies – from a seller’s standpoint, each contingency is one more reason why the sale won’t go through.  They feel the home is “off the market” and they’re in limbo.
• Shorten inspection period – your agent can help you set a reasonable date but let the seller know you’re willing to close prior to that if possible.
• Write a personal letter to the seller telling them why you want their home – this can be the emotional connection to the seller that makes the difference in you getting the home.

A seller wants to feel confident that the offer they accept will actually close so they can plan for their next move. Following tips like these can definitely affect negotiations and help put together an offer that is more likely to be accepted.

*These tips and tricks came from a real estate friend of mine in Lubbock, so if you are ever in the market in West Texas, please give her a shout.  She is wonderful.  Send Aleene Embry an email and tell her The Black Dog Realtor said hello!

Below are a summary of real estate related provisions in the bill.

Real Estate Tax Extenders

• Mortgage Cancellation Relief is extended for one year to January 1, 2014.
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012.
• Leasehold Improvements: 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
• Energy Efficiency Tax Credit: The 10% tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3%. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80% of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.

Capital Gains

Capital Gains rate stays at 15% for those at the top rate of $400,000 individual and $450,000 joint return. After that, any gains above those amounts will be taxed at 20%. The $250/$500k exclusion for the sale of a principal residence remains in place.

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that, the rate will be 40%, up from 35%. The exemption amounts are indexed for inflation.

Source:  http://www.ksefocus.com/billdatabase/clientfiles/172/4/1711.pdf

A relatively small investment in a rental home can control a good home that will easily rent, generate positive cash flows and pay for itself. The borrowed funds create leverage that earn a return on the total value of the home and not just the amount of cash you have invested.

The strategy is simple. Find a slightly below average priced home that will rent well. It will appeal to a larger group of people while it’s rented and when it’s ready to be sold.

Rent the home and maintain its condition over the years. As the loan amortizes and the value increases, the equity will grow. When your student is ready to start college, you’ll actually have several options.

You can sell the property; pay the tax on the gain at the reduced capital gains rate and fund the education. Another option would be to refinance and take the proceeds to pay for the tuition. This would allow you to continue to own the asset but would free your equity and under current tax laws is a non-taxable event.

Regardless of whether you’re trying to plan for your children’s education or your own retirement, rental property offers many solid investment opportunities.  Contact me if you want more information.

This article was sent to me by a good friend of mine and licensed real estate agent in the state of Texas from Lubbock, so if you or someone you know are looking to buy in the Lubbock area please contact her, and tell her the Black Dog sent you!

MLS: 191223

Private, gated subdivision, with paved road to lot, 15 min. to Dripping Springs. Lot 14-A is arguably the nicest lot in the subdivision, with gorgeous oaks, western views, and over 1,800 ft. of wet weather Callahan Creek frontage, both sides of creek owned for 300 ft. near dam. Quality, newer homes in community. HOA with sensible covenants, no mobile homes allowed, and 2,000 sq. ft. min. home. This is a co-operative wildlife managed subdivision with low taxes. Agent is seller.

Contact: Lori McFadden, lori@blackdogrealestate.com, (512) 914-8191 Mobile, Licensed Real Estate Agent in the State of Texas.

Comments/Disclaimers:
This offering is subject to errors, omissions, changes in price-terms-conditions, prior sale or lease without notice.
Buyer’s brokers must be identified on first contact and must accompany buying prospect on first showing to be allowed full fee participation and if they involve other brokers, it will be out of their side of the fee. If these conditions are not met, fee participation will be at the sole discretion of seller’s broker.

Lori McFadden

Realtor®

(512) 914-8191 Mobile

lori@blackdogrealestate.com

Licensed Real Estate Professional in State of Texas

Black Dog Real Estate, Inc.

512-395-8139 Broker Office

www.BlackDogRealEstate.com

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