Real Estate Information

Especially for all you grandparents. 

When you hear "It's a girl!" or "It's a boy!" you should be thinking "it's a house!", and here's how you can fund that college education.  A properly purchased residential investment property for its' cash flow on a 15-year mortgage can fund your grandchild's college education.

Watch this 55 second video and find out how.  Then call me.  I'm glad to help.

http://bit.ly/itsaBoy-itsaGirl-itsaHouse

Honda Commercial: READ BEFORE WATCHING (you'll be amazed)!!

If you thought that the people who set up a room full of dominoes to have them knocked over later was amazing, you haven't seen anything yet. This is the new Honda commercial in the UK. Very important that you understand:  There are no computer graphics or digital tricks in these images.  Everything that you see happened in real time exactly as you see it.

The recording required 606 takes and in the first 605 takes there always was something, usually of minor importance, that didn't work. It was necessary for the recording team to install the set-up time after time and it took several weeks working day and night to achieve this effect. The recording cost 6 million dollars and it took 3 months to finish.

The duration of the video is only 2 minutes, but every time that Honda shows the commercial on British television, they make enough money to support any of us for the rest of our lives. However, this commercial has turned out to be the most displayed in the history of the Internet. Honda execs think that it will pay for itself simply because of the free showings. There are only six Honda Accords built by hand in the whole world, and to the horror of Honda engineers, the recording team dis-assembled two of them for the
recording.

Everything you see in the sequence (besides the walls, floor, ramp and the untouched Honda Accord) is part of those two automobiles. The voice is that of Garrison Keiller. The commercial was so well received by Honda execs when they saw it, that their first comment was how amazing the computer graphics were. They almost fell out of their chairs when told that the recording was real without any graphics manipulation.

By the way, about the windshield wipers in the new Honda Accords, they are sensitive to water and designed to start working as soon as they get wet!

ENJOY!  http://youtu.be/l2eeNZL-1xM

The Federal Housing Administration (FHA) announced last week they will permit property buyers who acquire, rehabilitate and resell foreclosed properties to resell them within the first 90 days of acquisition (aka "flip"). FHA states this will allow homes to resell as quickly as possible helping to stabilize real estate prices and, secondarily, to revitalize communities with high foreclosure rates.

What many residential investors who rehabilitate these homes already know is that once they've come in and remodeled or upgraded a neglected or repossessed home and put it back on the market, and it sells at the higher purchase price, it helps to improve the comparable value of the homes and neighborhoods around it. The profit "rehab and resell" investors may make is their reward for taking the risk to acquire and improve a deteriorating or distressed asset.

If You Have A Student Loan Through Sallie Mae..Here's The End-of-Year Notice Regarding Your 2011 Interest Payment and Deduction

 "Calculations are still being made to determine the amount of interest that you paid during the 2011 tax year. This information will not be available through our website, automated voice system, or our agents until January 11, 2012. If you paid $600.00 or more in interest on a qualified education loan in 2011, then a Form 1098-E will be furnished to you by January 31, 2012, so please make sure your contact information is current.

If you haven't done so already, you may choose to receive Form 1098-E electronically by clicking the My Account�link and selecting the Edit Email Address and Permissions options.

Should you have questions regarding the filing of your taxes, please consult a tax advisor."*

(* information taken from the Salle Mae website)

 General Information:

Newport Beach had its origin on "the peninsula" where many of the original beach cottages still remain. From the early days of McFadden’s Wharf where the local Rancheros loaded Cowhides and products on the coastal schooners, to the Balboa Pavilion and the rich history of the Red cars and “Balboa Days” of the 1940’s and 1950’s, Balboa has always been a focus point for Newport Beach. Currently there is ongoing discussion by the City of Newport Beach of re-development for the downtown and Balboa Pier areas. This would include renovation of the old theater, and new streets and sidewalks.

Boundaries:

The Balboa Peninsula is bounded by water on three sides starting at The Lido Island Bridge and Newport Island Bridge areas, and the Newport pier to the Newport Harbor entrance.  Traditionally, though, the Peninsula properties are from the 15^th St. intersection to the wedge. Oceanfront beaches and bay activities are world famous.

 Real estate information:

There are approximately 1200 custom homes with 390 of these lining and bayfront, oceanfront or the very exclusive Bay Island.

• 30 x 70 and zoned R1.
• Oceanfront lots standard size 30 x 70.
• Most bayfronts have docks that can add $200,000 to the value depending on size and location.
• Some of the custom homes on the water, if available on the open market, could bring in excess of $10,000,000.  Traditionally the homes past the split of Balboa Blvd. and Ocean Blvd. have had a higher demand and accordingly are more expensive.  This is caused by the ending of public boardwalk on oceanfront homes, and the larger lot sizes on the bayfront homes past this point.

 Homes and Schools:

• The community is made up of an eclectric mix of Cape Cod, traditional, Mediterranean and contemporary style homes.
• Zoning is about 75% R1 with areas near the Balboa Pavilion, the piers and on Balboa Blvd. having most of the R2 or R4 zoning.
• There is a voluntary association for homeowners on the "point" area past Main St.  Amentities include a tennis court, private beach access and a launching ramp for small boats.  Fees are less than $20 yearly.
• The Newport Elementary School at 14^th Street is located right on the oceanfront beach.  Horace Ensign Middle School and Newport Harbor High School are located in Newport Heights with bussing available.

 Fun Fact: 

       Residents and visitors can get on and off Balboa Peninsula by either driving the length of Balboa Blvd. from Pacific Coast Hwy, or they can take the historic Ferry across Newport Harbor via Balboa Island.  The short Ferry trip is always a treat!

California SB 458 signed into law earlier this year added home seller protections in Short Sales!

On July 15, 2011, California's Governor signed SB 458 (Corbett) into law. Under the previous law - SB 931 signed in August 2010 and that took effect on January 1, 2011 - SB 458 extended the provisions and protections of SB 931.

SB 931 provides that a first mortgage holder can accept an agreed-upon short sale payment as payment in full for the outstanding balance on the first trust deed.   SB 458 extended the protections of SB 931 to junior liens such as second trust deeds and HELOCs.

SB 458 ensures that any lender that agrees to a short sale must also accept the agreed short sale payment as payment-in-full of the outstanding balance of all loans.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

Jasmine Creek is a Corona Del Mar neighborhood in Newport Beach which is bordered by San Joaquin Hills Road, Marguerite, Harbor View Drive and Crown Drive.  Jasmine Creek enjoys plentiful nearby shops and restaurants including the world-class shopping of Newport Center's Fashion Island.  From Jasmine Creek it's also an easy walk to "the village" of Corona Del Mar and the beach.

Homes: There are 325 attached homes with six models from which to choose. Modes 1,2 and 3 are single story homes ranging from 1,860 square feet to 2,200 square feet. Plan 4 is the largest home with more than 2,500 square feet and is an elegant two story model. Plans 5 and 6 have a split level design and quite often offer views of the ocean.

Age of Neighborhood: Jasmine Creek opened in 1974 with six model homes. It took about seven years to build the project out.

Builders: MJ Brock was the builder of this project and the architectual design was by Richardson-Nagy-Martin AIA.

Community Features: The total area of Jasmine Creek is approximately 43 acres. It offers a 24-Hour guard-gated entry with excellent security. Jasmine Creek was one of the first guard-gated communities built in Newport Beach.  Jasmine Creek includes two pool complexes and several tennis courts, some with ocean views.  Homeowners take great pride in their community and are constantly upgrading the amenities.  Jasmine Creek is one of the best maintained communities in Newport Beach.

Schools: Children attend Harbor View Elementary, Corona Del Mar Middle School, and Corona Del Mar Senior High School.

(Answer is from Bills.com)

"You might avoid paying taxes on the imputed income indicated in the 1099-C as per the "Mortgage Forgiveness Debt Relief Act of 2007 (HR 3648)." Mortgage Debt Relief Act will save some homeowners facing short-sales or foreclosures from paying federal taxes on the “forgiven” debt. There are very specific requirements:

• The mortgage is for the homeowner's principal residence. The relief does not apply to any debt forgiveness for any vacation or investment home.

• Forgiveness is only for the “acquisition indebtedness” of the principal residence. Acquisition Indebtedness is defined as the debt used to acquire, construct or rehabilitate the home.

• No relief is available for cash-out mortgages whether the cash-out takes the form of a refinanced first mortgage, a second mortgage, a home equity line of credit or a similar arrangement. Exception: If the cash-out was specifically used to improve the home and the homeowner has adequate records to prove it.

This bill relieves the specific homeowner of their federal tax liability but does NOT relieve the homeowner of their state income tax liability.

If you have refinanced your mortgage, have a second, a third or if this is an investment property -- you likely do not fall under the protection of this act at all. I strongly suggest that you enlist the counsel of an experienced attorney and for tax implications, get expert advice from an income tax professional (CPA). Ask the tax professional if you are eligible to use the IRS Form 982, so you can refrain from declaring as income any amount listed on a 1099-C you receive for cancellation of debt. You can read more on the FAQ section of the IRS document Home Foreclosure and Debt Cancellation.

Top 20 Secured Taxpayers - Orange County, California

1. Irvine Co. $60,233,287

2. Walt Disney World Co. $36,701,081

3. So Cal Edison Co. $28,049,797

4. The Irvine Company LLC $15,066,716

5. Irvine Company LLC $13,538,209

6. Irvine Apartment Communities $9,744,315

7. Pacific Bell Telephone Company $9,000,575

8. Walt Disney World $8,446,094

9. United Laguna Hills $7,282,066

10. Heritage Fields El Toro LLC $7,012,321

11. Irvine Community Development Co. $6,684,971

12. Irvine Company $5,524,382

13. Irvine Land Company LLC $5,113,071

14. Bella Terra Associates LLC $4,826,052

15. Kaiser Foundation $4,641,436

16. Southern California Gas Company $4,460,855

17. Linn Western Operating, Inc. $4,382,013

18.OC/SD Holdings LLC $4,309,253

19. BRE Properties Inc. $3,736,895

20. South Coast Plaza $3,652,545

Top 20 Unsecured Taxpayers - Orange County, California

1. Cox Communications Inc. (Orange) $3,539,105

2. Garfield Beach CVS LLC $2,124,991

3. The Boeing Company (A Corp.) $1,805,478

4. Broadcom Corp. $1,447,168

5. Integrated Healthcare Holding Inc. $1,343,412

6. Cambro Manufacturing Co. (A Corp.) $1,289,542

7. Baker Hughes Oilfield Operations Inc. $1,268,113

8. Kimberly-Clark Worldwide Inc. $1,245,062

9. Southwest Airlines Co. (A Corp.) $1,220,794

10. B Braun Medical Inc. $1,193,805

11.Jazz Semiconductor Inc. $1,184,545

12. Time Warner Cable LLC $1,126,439

13. Allergan Sales LLC $1,105,262

14. CCDA Waters LLC $1,010,668

15. Tustin Legacy Community $963,939

16. Time Warner NY Cable LLC $934,102

17. Trans World Airlines Inc. $864,742

18. American Airlines Inc. $779,953

19. Continental Airlines Inc. $775,309

20.TEVA Parenteral Medicines Inc. $733,559