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Top Ten 1031 Exchange Misconceptions

Exchange Update

1. Like-kind means I must exchange the same type of property, such as apartment building for apartment building.

All real property is like-kind to other real property. For example, you can trade an apartment building for an office building. To read more about like-kind real estate, click here.

2. My attorney can handle this for me.

Not if your attorney has provided you any non-exchange related legal services within the two-year period prior to the exchange. Click here to read more about qualified and disqualified parties.

Continue reading the top 10 here.

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New Fresno Ace Hardware Opens Next Week

Fresno’s newest Ace Hardware store — formerly an Orchard Supply Hardware — should be opening by the end of next week.

A grand opening is slated for July.

 

Located at 1536 E. Champlain Drive, the Ace Hardware store should eventually create 50 new jobs. It is the second Ace Hardware to open in a former OSH location in the Central Valley after the chain, owned by Lowe’s, closed earlier this year.

 

Continue reading here.

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Deferring Tax on Mixed Use Properties

Exchange Update

Utilizing IRC Sections 1031 and 121

When it comes to issues related to capital gains taxes associated with the sale of real estate, there are two primary provisions of the tax code that apply, IRC Section 1031 and IRC Section 121.  Many people are unaware that when a property is used as a personal residence as well as for business or investment purposes, it is a mixed-use property that can benefit from both provisions of the tax code at the same time.

Continue reading here.

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Success & Stability Since 1919

A Century of Service

In 1919, Oliver Wendell Pearson arrived in Fresno to visit his brother and, together, they bought a ranch. Seeing firsthand the developing business of agriculture, Mr. Pearson noted the need for a realty company that would specialize in marketing and selling farm and ranch property. The O. W. Pearson Company would later become Pearson Realty. The core principles of the firm reflect Mr. Pearson’s personal beliefs in honesty, trust, reliability and positive results.

Today the stockholders, agents, brokers, and staff adhere to the founding principles—to continue a tradition in trust since 1919.

Continue reading here.

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Commercial Real Estate Investing: Getting Started

Commercial Real Estate Investing Getting Started

What’s the big deal about investing in commercial real estate investing?

  1. The right commercial real estate investment could serve as the one asset that puts your portfolio over the top.
  2. There are several fundamental indicators to take into consideration when evaluating the viability of commercial real estate investments.
  3. Not unlike flips and wholesales, investors should consider commercial real estate as an important exit strategy.

Continue reading here.

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Rise in Federal Interest Rates Affects Consumers

Rise in Federal Interest Rates Affects Consumers

This is the eight time the Federal Reserve has raised interest rates since 2015 with the interest rates now at 4.6%.

This is bad news for consumers who borrow and good news for consumers who save.

What it Means for Borrowers

When the interest rates rise, it means that the borrower has higher costs. It affects the economy across the nation and tends to influence the set rates for credit cards and other borrowing methods.

If you have a loan with a variable rate, you need to keep an eye on it. As the Federal interest rates go up, variable interest rates on credit cards, home equity line of credit, adjustable-rate mortgages, and even student-loan variable rates will follow suit.

Greg McBride, the Chief Financial Analyst for Bankrate.com, recommends that borrowers should pay off their credit card debt as quickly as possible. All consumers should find credit cards that offer 0% interest rates for 18 months.

If you have a home equity line of credit, ask lenders if you can set a fixed interest rate on the outstanding balance. Keep in mind that it’s not always an option.

If you have an adjustable-rate home loan, you should refinance right away to a fixed rate. It may be currently higher than your current adjustable rate, but rates are expected to keep rising so it would be lower in the long run.

If you’re in the process of buying a home, lock into the fixed interest rate as soon as possible before it rises again.

What it Means for Savers

Deposit rates for savings accounts and CDs usually rise and fall with the federal interest rate. McBride pointed out that for the first time in over a decade, savers are able to earn a profit from their savings account that keeps up with inflation.

Federal rates are expected to continue rising with one more rate hike in 2018 and 3 rate hikes scheduled for 2019.

Federal rates rise to prevent the economy from growing too fast and keep prices from drastically rising.