REBECCA BLUE
Bradenton Herald Staff Writer
LAKEWOOD RANCH - Over the past few years, family members frequently encouraged Mary Lee O'Neil and her husband, Joseph, to enter an assisted-living facility.
But leaving behind a six-bedroom ranch house in Lincroft, N.J., just wasn't something this 90-something-year-old couple wanted to do.
"We were afraid we'd have regrets about leaving behind our home of 32 years. We had wonderful neighbors and friends," Mary Lee O'Neil said.
When their nieces, both Lakewood Ranch residents, found out an assisted-living facility was coming to their neighborhood, they saw an opportunity.
The opportunity coincided with New Jersey's frigid 2004 winter season, which caused the O'Neils to change their thinking.
"We had to have our driveway plowed seven times. That did it. That was our last winter," Mary Lee O'Neil said.
The O'Neils moved into their 604-square-foot "Osprey" apartment at The Windsor of Lakewood Ranch on Sept. 14. In the two weeks they've resided at the new facility, they've quickly made themselves at home.
Joseph O'Neil is particularly fond of the relaxing atmosphere.
"I'm looking forward to the lack of chores," he said.
So far, the Windsor, 8220 Natures Way, is at one-third of its 86-room capacity. A good chunk of its residents are similar to the O'Neils. They have adult-aged children living in Lakewood Ranch, according to Jason Rosenberg, residence director.
"It's convenient and allows the family to be closer," Rosenberg said.
The average age of The Windsor's residents is 82. The facility allows its residents to come and go as they please. Transportation is provided but some of the residents still drive, according to Rosenberg.
The Windsor's owners, Pete Russell, Cathy Layton and Tim and Gail Buchanan, are all local residents and have been in the business for more about 15 years. They also own The Windsor of Bradenton and The Windsor Oaks, also located in Bradenton.
When they envisioned the Lakewood Ranch facility, they wanted to maintain a homey feeling, Russell said.
Two stories tall, the facility is surrounded by a wildlife nature preserve, complete with a lake on its west side.
The Windsor offers eight one-bedroom floor plans, ranging from 360 to 604 square feet and costing from $2,325 to $3,200 a month. The base service plan also includes a life-enrichment plan with several activities; weekly housekeeping, personal laundry and linen services; three meals a day; all utilities, except phone services; and 24-hour staff availability.
Residents can add on tailored services such as medication management, specialized diets and assistance with bathing, grooming and other personal-care needs. Companion service is also available to perform errands, escort residents to facility events or outside activities, and for additional housekeeping services.
The Windsor also offers a dining room with a view of the preserve; a living room with a 55-inch screen television complete with surround sound; media and game rooms; a library; a screened lanai and courtyard; a personal care suite for health and wellness evaluations and service; a therapeutic spa; and a beauty salon.
Rebecca Blue, Herald reporter, can be reached at rblue@HeraldToday.com or at 708-7919.
--------------------------------------------------------------------------------
© 2005 Bradenton Herald and wire service sources. All Rights Reserved.
http://www.bradenton.com
Thursday, September 29, 2005
Wednesday, September 28, 2005
Burnt Store Road getting 1,800 homes
By John Heys
Sarasota Herald Tribune
CHARLOTTE COUNTY -- Lennar Communities plans to build a golf course community of 1,800 homes off Burnt Store Road in Charlotte County.
The community, dubbed Tern Bay, will feature a mix of single-family homes and condominiums on 1,700 acres south of Punta Gorda and north of the Lee County line, Lennar announced Tuesday.
A 27-hole Chip Powell-designed golf course, with a clubhouse, restaurant and fitness center, also is planned.
US Home and Lennar will build homes in the community. Prices haven't been set, but Lennar says it expects them to be "competitive for the area."
The project developer, Tern Bay Development Co., committed in January to widen nearly two miles of Burnt Store Road in return for impact-fee credits from the county worth about $5.6 million. The two-lane road will be widened to four lanes.
Lennar has built more than 25,000 homes in Charlotte, DeSoto, Manatee and Sarasota counties.
On Monday, the Miami-based company reported better than expected third-quarter earnings. Net earnings for the quarter were $337.3 million, or $2.06 per share, compared with $225 million, or $1.36 per share, in 2004.
That beat several Wall Street estimates.
Sarasota Herald Tribune
CHARLOTTE COUNTY -- Lennar Communities plans to build a golf course community of 1,800 homes off Burnt Store Road in Charlotte County.
The community, dubbed Tern Bay, will feature a mix of single-family homes and condominiums on 1,700 acres south of Punta Gorda and north of the Lee County line, Lennar announced Tuesday.
A 27-hole Chip Powell-designed golf course, with a clubhouse, restaurant and fitness center, also is planned.
US Home and Lennar will build homes in the community. Prices haven't been set, but Lennar says it expects them to be "competitive for the area."
The project developer, Tern Bay Development Co., committed in January to widen nearly two miles of Burnt Store Road in return for impact-fee credits from the county worth about $5.6 million. The two-lane road will be widened to four lanes.
Lennar has built more than 25,000 homes in Charlotte, DeSoto, Manatee and Sarasota counties.
On Monday, the Miami-based company reported better than expected third-quarter earnings. Net earnings for the quarter were $337.3 million, or $2.06 per share, compared with $225 million, or $1.36 per share, in 2004.
That beat several Wall Street estimates.
Tuesday, September 27, 2005
New Flood Insurance Program Starts Oct. 1st
New Flood Insurance Program Starts Oct. 1st
Coverage under the nation's flood insurance program will change as October 1st, a long-planned event not directly related to Hurricanes Katrina and Rita, but one that will substantially impact those most likely to be flooded in the future.
Until this point the National Flood Insurance Program (NFIP) has provided three basic levels of coverage:
Owner-occupants could obtain as much as $250,000 for property damage plus $100,000 for lost contents.
Tenants could insure personal property for as much as $100,000.
Investors could get coverage of up to $500,000 per property, a figure which includes both damage to the structure as well as contents.
Depending on where you lived, maximum residential coverage for the structure and contents ranged from $703 to $1,822 per year. Less coverage was also available with lower annual premiums.
The problem with the program's long-term approach is that while coverage was fairly equivalent, claims were not. For instance, one study done by the National Wildlife Federation found that 5,629 homes had 19,979 flood insurance claims.
These homes had a gross value of $307.5 million -- but because of repeated claims owners obtained flood insurance payments worth $416.3 million. That's right -- insurance coverage was more than $100 million greater than actual property values.
The problem of repetitive losses structures is huge. Essentially the current insurance system encourages folks to build again and again in the same way and in the same spot where they have previously been inundated.
"About 1 percent of the 4.4 million properties currently insured by the program are considered to be repetitive loss properties," says the General Accounting Office. However, this magical 1 percent produces about 38 percent of all program claim costs, $4.6 billion since 1978.
In other words, a lot of people overpay for flood insurance to assure the coverage of those most likely to be inundated. Seen the other way, those most likely to be flooded are paying less than they should.
As of October 1st, however, program rules will change. Under the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 -- legislation signed into law in June 2004 -- owners with flood insurance will get a chance to upgrade risky properties. If they don't, insurance premiums will soar.
Under the new rules:
A "severe repetitive loss property" is defined as a structure with one to four units with four or more separate flood insurance payments exceeding $5,000 each or a total of more than $20,000 in claims. A property with two claims which together exceed the value of the property is also defined as a "severe repetitive loss property."
Grants will be available for elevating risky properties, relocating them to higher ground, demolishing properties prone to flooding, flood-proofing risky properties and buying them outright.
Owners of flood-prone properties can decline such offers and have a right to appeal "repetitive loss" designations.
Premuims will increase 150 percent above current flood insurance rates for those who refuse to mitigate.
If a damage claim to a property exceeds $1,500 and the property owner has refused mitigation, the insurance premium will again increase 150 percent.
The plain purpose of the new flood insurance standards is to target those properties most likely to produce claims -- and to force owners to either improve what they own or to pay more for flood coverage.
That seems both logical and fair.
The new flood insurance rules are surely a better approach than the old standard if only because they target the properties most in need of mitigation. That said, there are several issues to consider:
First, it's difficult to imagine that many beach-front structures -- no matter how elevated or flood-protected -- can be defended in the face of Katrina, Rita and storms of similar size and power. It may be that we are entering a new era of hurricane activity, one that will cause even further changes in the construction and insurance of beach-front property.
Second, beach-front structural improvements without wetland and barrier island re-development are useless. Unless we get serious about coastline ecology, it's easy to see where taxpayer money will be washed out to sea.
Third, what about those impacted by Katrina and Rita? Will homes destroyed by these hurricanes be instantly defined as "severe repetitive loss" properties? If yes, one can assume that virtually all Gulf Coast owners will accept mitigation or buy-out offers.
For more articles by Peter G. Miller, please press here.
--------------------------------------------------------------------------------
Written by Peter G. Miller
--------------------------------------------------------------------------------
Copyright © 2005 Realty Times. All Rights Reserved.
Coverage under the nation's flood insurance program will change as October 1st, a long-planned event not directly related to Hurricanes Katrina and Rita, but one that will substantially impact those most likely to be flooded in the future.
Until this point the National Flood Insurance Program (NFIP) has provided three basic levels of coverage:
Owner-occupants could obtain as much as $250,000 for property damage plus $100,000 for lost contents.
Tenants could insure personal property for as much as $100,000.
Investors could get coverage of up to $500,000 per property, a figure which includes both damage to the structure as well as contents.
Depending on where you lived, maximum residential coverage for the structure and contents ranged from $703 to $1,822 per year. Less coverage was also available with lower annual premiums.
The problem with the program's long-term approach is that while coverage was fairly equivalent, claims were not. For instance, one study done by the National Wildlife Federation found that 5,629 homes had 19,979 flood insurance claims.
These homes had a gross value of $307.5 million -- but because of repeated claims owners obtained flood insurance payments worth $416.3 million. That's right -- insurance coverage was more than $100 million greater than actual property values.
The problem of repetitive losses structures is huge. Essentially the current insurance system encourages folks to build again and again in the same way and in the same spot where they have previously been inundated.
"About 1 percent of the 4.4 million properties currently insured by the program are considered to be repetitive loss properties," says the General Accounting Office. However, this magical 1 percent produces about 38 percent of all program claim costs, $4.6 billion since 1978.
In other words, a lot of people overpay for flood insurance to assure the coverage of those most likely to be inundated. Seen the other way, those most likely to be flooded are paying less than they should.
As of October 1st, however, program rules will change. Under the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 -- legislation signed into law in June 2004 -- owners with flood insurance will get a chance to upgrade risky properties. If they don't, insurance premiums will soar.
Under the new rules:
A "severe repetitive loss property" is defined as a structure with one to four units with four or more separate flood insurance payments exceeding $5,000 each or a total of more than $20,000 in claims. A property with two claims which together exceed the value of the property is also defined as a "severe repetitive loss property."
Grants will be available for elevating risky properties, relocating them to higher ground, demolishing properties prone to flooding, flood-proofing risky properties and buying them outright.
Owners of flood-prone properties can decline such offers and have a right to appeal "repetitive loss" designations.
Premuims will increase 150 percent above current flood insurance rates for those who refuse to mitigate.
If a damage claim to a property exceeds $1,500 and the property owner has refused mitigation, the insurance premium will again increase 150 percent.
The plain purpose of the new flood insurance standards is to target those properties most likely to produce claims -- and to force owners to either improve what they own or to pay more for flood coverage.
That seems both logical and fair.
The new flood insurance rules are surely a better approach than the old standard if only because they target the properties most in need of mitigation. That said, there are several issues to consider:
First, it's difficult to imagine that many beach-front structures -- no matter how elevated or flood-protected -- can be defended in the face of Katrina, Rita and storms of similar size and power. It may be that we are entering a new era of hurricane activity, one that will cause even further changes in the construction and insurance of beach-front property.
Second, beach-front structural improvements without wetland and barrier island re-development are useless. Unless we get serious about coastline ecology, it's easy to see where taxpayer money will be washed out to sea.
Third, what about those impacted by Katrina and Rita? Will homes destroyed by these hurricanes be instantly defined as "severe repetitive loss" properties? If yes, one can assume that virtually all Gulf Coast owners will accept mitigation or buy-out offers.
For more articles by Peter G. Miller, please press here.
--------------------------------------------------------------------------------
Written by Peter G. Miller
--------------------------------------------------------------------------------
Copyright © 2005 Realty Times. All Rights Reserved.
Tuesday, September 20, 2005
Prepare for the Manatee of tomorrow, CEO says
MATT GRISWOLD
Herald Staff Writer
LAKEWOOD RANCH - Manatee County continues to change, but Rex Jensen's message does not: Growth is coming, like it or not. So plan and prepare - or suffer the consequences.
It's not the first time that Jensen, president and chief executive of Lakewood Ranch developer Schroeder-Manatee Ranch Inc., has given his "Nature of Planned Growth" talk and it won't be the last. But with each passing month, as out-of-town residents continue their influx into Manatee County, the weight of Jensen's words get heavier and heavier.
"Regulation hasn't stopped, or even controlled, growth," Jensen said. "We need a shift of thinking from trying to manage growth to trying to plan for it."
About 75 people were on hand Wednesday for the Manatee Chamber of Commerce-sponsored presentation.
It's poor planning, he said, that is responsible for all of the people who oppose new growth.
"I don't blame people for not liking growth," he said. "It's linear, environmentally negative and unattractive. It consumes infrastructure without providing any."
His company's master-planned development - Lakewood Ranch - is a good laboratory, he said, to study growth planning and how it can be dealt with efficiently and effectively.
Jensen identified insufficient roads and county policy on residential density requirements as the two biggest problems facing the area.
"The roads we have today won't support the population of tomorrow," he said.
Jensen pointed to the State Road 70 widening project which he says should have been done 10-15 years ago.
County Commissioner Donna Hayes was on hand for Jensen's talk and, like Jensen, believes that transportation is one of the most important issues facing Manatee County.
"There's no doubt about it. We missed the boat on transportation," Hayes told The Herald. "We haven't been able to keep up with it."
She said a new east-west connector, like extending 44th Avenue all the way out to Lakewood Ranch, will help ease congestion on heavily traveled arteries like S.R. 70 and State Road 64.
Hayes is also a proponent of developing a new transit system to include buses and trolleys that people would use to get to and from work each day.
The commissioner also said the county is going to have to make some concessions with developers regarding density if there's any hope of developing housing that is truly affordable to the average worker - something that is imperative if Manatee County is to continue to attract new employers.
Jensen said it's critical to start working on these problems now. Problems can't continue to worsen without economic and quality-of-life ramifications, he said.
"Look at the places we draw people from - New York, New Jersey, Michigan, Ohio. How long will it take for this place to get worse than another place? We can't let it get that far."
Matt Griswold, Herald business reporter, can be reached at 708-7908, or at mgriswold@HeraldToday.com.
Herald Staff Writer
LAKEWOOD RANCH - Manatee County continues to change, but Rex Jensen's message does not: Growth is coming, like it or not. So plan and prepare - or suffer the consequences.
It's not the first time that Jensen, president and chief executive of Lakewood Ranch developer Schroeder-Manatee Ranch Inc., has given his "Nature of Planned Growth" talk and it won't be the last. But with each passing month, as out-of-town residents continue their influx into Manatee County, the weight of Jensen's words get heavier and heavier.
"Regulation hasn't stopped, or even controlled, growth," Jensen said. "We need a shift of thinking from trying to manage growth to trying to plan for it."
About 75 people were on hand Wednesday for the Manatee Chamber of Commerce-sponsored presentation.
It's poor planning, he said, that is responsible for all of the people who oppose new growth.
"I don't blame people for not liking growth," he said. "It's linear, environmentally negative and unattractive. It consumes infrastructure without providing any."
His company's master-planned development - Lakewood Ranch - is a good laboratory, he said, to study growth planning and how it can be dealt with efficiently and effectively.
Jensen identified insufficient roads and county policy on residential density requirements as the two biggest problems facing the area.
"The roads we have today won't support the population of tomorrow," he said.
Jensen pointed to the State Road 70 widening project which he says should have been done 10-15 years ago.
County Commissioner Donna Hayes was on hand for Jensen's talk and, like Jensen, believes that transportation is one of the most important issues facing Manatee County.
"There's no doubt about it. We missed the boat on transportation," Hayes told The Herald. "We haven't been able to keep up with it."
She said a new east-west connector, like extending 44th Avenue all the way out to Lakewood Ranch, will help ease congestion on heavily traveled arteries like S.R. 70 and State Road 64.
Hayes is also a proponent of developing a new transit system to include buses and trolleys that people would use to get to and from work each day.
The commissioner also said the county is going to have to make some concessions with developers regarding density if there's any hope of developing housing that is truly affordable to the average worker - something that is imperative if Manatee County is to continue to attract new employers.
Jensen said it's critical to start working on these problems now. Problems can't continue to worsen without economic and quality-of-life ramifications, he said.
"Look at the places we draw people from - New York, New Jersey, Michigan, Ohio. How long will it take for this place to get worse than another place? We can't let it get that far."
Matt Griswold, Herald business reporter, can be reached at 708-7908, or at mgriswold@HeraldToday.com.
Tips for Real Estate Investors
Tips For Real Estate Investors
Got the real estate investment bug? You aren't alone.
By the end of 2004, the National Real Estate Investors Association's 20,000 affiliated members were double the previous year's numbers, but even at 20,000 represented only about one fourth of all U.S. real estate investors in investment clubs, the association said.
Investors accounted for what's likely a record 23 percent of all home sales last year, according to the National Association of Realtors' "2005 National Association of Realtors Profile of Second-Home Buyers."
While the investor purchase portion is 23 percent, other second home buyers who become aware of the potential for a return on their property may very well take a more speculative approach. The second home market now accounts for 38 percent of the existing housing stock and 36 percent of all homes purchased last year, NAR said.
"These aren't second homes. You know where that down payment is coming from. People are leveraging one price asset against another on a pure momentum play," said Robert M. Campbell, a San Diego-based investor and author of "Timing The Real Estate Market."
Residential real estate investors have become a driving force in the residential real estate market -- much as the dot com stock market did to create the New Economy and the longest economic expansion on record.
But just as the dot com bust littered Wall Street with lost shirts, a real estate down turn could leave blood red ink flowing down Main Street if rookie investors let the lure of green cloud their judgment.
We talked to individual investors, real estate agents who also invest, investment clubbers and others to help get you started with the dos and don'ts of real estate investments.
Here's what they suggest.
Buy your own home first. Buying a home will not only put a roof over your head, but teach you the true cost of property ownership beyond the monthly mortgage payment, give you a primer on financing, school you on how location and changing market conditions affect property values, give you the angle on tax and other home owning benefits, help you learn about property maintenance, introduce you to a host of professionals who could prove invaluable when you really get into investments and otherwise act as a prerequisite foundation for higher studies in real estate investments.
Even before home ownership the process of buying a home provides basic information that later could prove invaluable to you as an investor. What's more -- your first home could later become your first investment property, a property in a market with which you are familiar.
"I bought my first house on May 1, 1981. The property became a rental in February 1988. Technically it was 50 percent a rental in June 1981 as I shared the house to afford it," said Richard Calhoun, a real estate investor for nearly two decades.
Go back to school. A booming real estate market that pushes your home value up by double digit percentages in the first year doesn't automatically make you a savvy investor any more than the dot com boom could have made you a stock market mogul. After you buy your own home turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses. Individual real estate investors, salespeople and others who you met on the way to home ownership may also be valuable resources, both for information and perhaps as a mentor.
Using more than one resource will help you cancel out the bad information and ferret out the good.
"The importance of knowledge and education cannot be overestimated and is almost always underestimated," said Calhoun.
Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate. Someone who already knows the ropes comes in handy when you need a leg up on a deal.
"There are many honest and reliable outfits and clubs that are genuinely beneficial to those looking to increase their knowledge. That's one of the good things about a club -- you get to ask other people whose information is good and whose is garbage," says Phyllis Rockower, founder of the Real Estate Investor's Club of Los Angeles.
You'll also need professional help once you are beyond the buying stage -- someone to manage your investment for example.
"For many, the question of managing rental properties is resolved by the proximity to the property and the willingness on the part of the owner to invest the time required to market and manage the property. Often, it makes sense for those far away to take advantage of a "local" property manager. The rewards of self management may be great, but one needs to consider the time investment required," said Bart Meltzer, president of RentOne Online, a Scotts Valley, CA, Web-based marketing and management tools provider for vacation rental managers.
Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but not appreciate, while another home in another market won't bring you enough rent to cover your expenses but appreciate more than enough to make up for it over the long term. The variables are endless.
"The most common mistake of inexperienced investors is to make the mistake that one area is the same as another," said Romeo Danais, who has investments in Oklahoma, Texas and New Hampshire.
"Twenty-five years ago, a bunch of guys in San Jose, CA, 'discovered' Sacramento, CA, investment real estate. Duplexes could be purchased for half the price of San Jose duplexes. So these guys purchased a lot of duplexes and then made another 'discovery'. The Sacramento duplexes didn't rent for as much as duplexes in San Jose. In fact, due to the glut of empty duplexes in Sacramento they rented for even less than the differential in prices. Assuming rather than proving is a big mistake," Danais said.
Written by Broderick Perkins
Got the real estate investment bug? You aren't alone.
By the end of 2004, the National Real Estate Investors Association's 20,000 affiliated members were double the previous year's numbers, but even at 20,000 represented only about one fourth of all U.S. real estate investors in investment clubs, the association said.
Investors accounted for what's likely a record 23 percent of all home sales last year, according to the National Association of Realtors' "2005 National Association of Realtors Profile of Second-Home Buyers."
While the investor purchase portion is 23 percent, other second home buyers who become aware of the potential for a return on their property may very well take a more speculative approach. The second home market now accounts for 38 percent of the existing housing stock and 36 percent of all homes purchased last year, NAR said.
"These aren't second homes. You know where that down payment is coming from. People are leveraging one price asset against another on a pure momentum play," said Robert M. Campbell, a San Diego-based investor and author of "Timing The Real Estate Market."
Residential real estate investors have become a driving force in the residential real estate market -- much as the dot com stock market did to create the New Economy and the longest economic expansion on record.
But just as the dot com bust littered Wall Street with lost shirts, a real estate down turn could leave blood red ink flowing down Main Street if rookie investors let the lure of green cloud their judgment.
We talked to individual investors, real estate agents who also invest, investment clubbers and others to help get you started with the dos and don'ts of real estate investments.
Here's what they suggest.
Buy your own home first. Buying a home will not only put a roof over your head, but teach you the true cost of property ownership beyond the monthly mortgage payment, give you a primer on financing, school you on how location and changing market conditions affect property values, give you the angle on tax and other home owning benefits, help you learn about property maintenance, introduce you to a host of professionals who could prove invaluable when you really get into investments and otherwise act as a prerequisite foundation for higher studies in real estate investments.
Even before home ownership the process of buying a home provides basic information that later could prove invaluable to you as an investor. What's more -- your first home could later become your first investment property, a property in a market with which you are familiar.
"I bought my first house on May 1, 1981. The property became a rental in February 1988. Technically it was 50 percent a rental in June 1981 as I shared the house to afford it," said Richard Calhoun, a real estate investor for nearly two decades.
Go back to school. A booming real estate market that pushes your home value up by double digit percentages in the first year doesn't automatically make you a savvy investor any more than the dot com boom could have made you a stock market mogul. After you buy your own home turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses. Individual real estate investors, salespeople and others who you met on the way to home ownership may also be valuable resources, both for information and perhaps as a mentor.
Using more than one resource will help you cancel out the bad information and ferret out the good.
"The importance of knowledge and education cannot be overestimated and is almost always underestimated," said Calhoun.
Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate. Someone who already knows the ropes comes in handy when you need a leg up on a deal.
"There are many honest and reliable outfits and clubs that are genuinely beneficial to those looking to increase their knowledge. That's one of the good things about a club -- you get to ask other people whose information is good and whose is garbage," says Phyllis Rockower, founder of the Real Estate Investor's Club of Los Angeles.
You'll also need professional help once you are beyond the buying stage -- someone to manage your investment for example.
"For many, the question of managing rental properties is resolved by the proximity to the property and the willingness on the part of the owner to invest the time required to market and manage the property. Often, it makes sense for those far away to take advantage of a "local" property manager. The rewards of self management may be great, but one needs to consider the time investment required," said Bart Meltzer, president of RentOne Online, a Scotts Valley, CA, Web-based marketing and management tools provider for vacation rental managers.
Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but not appreciate, while another home in another market won't bring you enough rent to cover your expenses but appreciate more than enough to make up for it over the long term. The variables are endless.
"The most common mistake of inexperienced investors is to make the mistake that one area is the same as another," said Romeo Danais, who has investments in Oklahoma, Texas and New Hampshire.
"Twenty-five years ago, a bunch of guys in San Jose, CA, 'discovered' Sacramento, CA, investment real estate. Duplexes could be purchased for half the price of San Jose duplexes. So these guys purchased a lot of duplexes and then made another 'discovery'. The Sacramento duplexes didn't rent for as much as duplexes in San Jose. In fact, due to the glut of empty duplexes in Sacramento they rented for even less than the differential in prices. Assuming rather than proving is a big mistake," Danais said.
Written by Broderick Perkins
Wednesday, September 14, 2005
How Does the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Affect Your Rights?
By M. Lewis Hall, III, Attorney, Williams Parker Harrison Dietz & Getzen, Sarasota Florida
(941) 366-4800
On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the “Act”), making the most significant change to the Bankruptcy Code since 1978. Most of the changes made by the Act go into effect October 17, 2005. A few of the provisions, particularly the limitation on the homestead exemption, became effective immediately upon enactment. Most of the changes made by the new Act primarily affect individual consumer bankruptcy filings, but there are provisions affecting both corporations and small businesses.
At the heart of the new Act is the abuse standard for Chapter 7 (liquidation) filings. The abuse standard requires a debtor who is seeking Chapter 7 bankruptcy relief to pass one of two income tests – otherwise, the debtor will have to resort to either a Chapter 11 (reorganization) or a Chapter 13 (reorganization) for bankruptcy relief.
The limitation on the homestead exemption could be the most significant new provision in Florida, due to Florida’s unlimited homestead exemption. The provision reduces the debtor’s homestead exemption for increases in home value that resulted from the use of non-exempt property by the debtor, “with intent to hinder, delay, or defraud creditors” in the 10 years prior to the debtor’s bankruptcy filing. The new Act also contains a two-year residency requirement provision for state property exemption laws to apply – in other words, the debtor’s place of domicile for the previous 730 days will govern which state’s property exemption laws apply in the filing.
The new Act does increase the list of possible exclusions from a debtor’s bankruptcy estate. The most noteworthy of these exclusions include contributions to qualified benefit plans, education accounts or tuition credit accounts, and property transferred to tax-exempt organizations.
Other notable changes within the Act include longer wait times before filing subsequent bankruptcy cases, greater document production requirements, mandatory credit counseling as a prerequisite to filing a bankruptcy petition, and a provision allowing a Trustee to pay a tardily filed claim under certain circumstances.
(941) 366-4800
On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the “Act”), making the most significant change to the Bankruptcy Code since 1978. Most of the changes made by the Act go into effect October 17, 2005. A few of the provisions, particularly the limitation on the homestead exemption, became effective immediately upon enactment. Most of the changes made by the new Act primarily affect individual consumer bankruptcy filings, but there are provisions affecting both corporations and small businesses.
At the heart of the new Act is the abuse standard for Chapter 7 (liquidation) filings. The abuse standard requires a debtor who is seeking Chapter 7 bankruptcy relief to pass one of two income tests – otherwise, the debtor will have to resort to either a Chapter 11 (reorganization) or a Chapter 13 (reorganization) for bankruptcy relief.
The limitation on the homestead exemption could be the most significant new provision in Florida, due to Florida’s unlimited homestead exemption. The provision reduces the debtor’s homestead exemption for increases in home value that resulted from the use of non-exempt property by the debtor, “with intent to hinder, delay, or defraud creditors” in the 10 years prior to the debtor’s bankruptcy filing. The new Act also contains a two-year residency requirement provision for state property exemption laws to apply – in other words, the debtor’s place of domicile for the previous 730 days will govern which state’s property exemption laws apply in the filing.
The new Act does increase the list of possible exclusions from a debtor’s bankruptcy estate. The most noteworthy of these exclusions include contributions to qualified benefit plans, education accounts or tuition credit accounts, and property transferred to tax-exempt organizations.
Other notable changes within the Act include longer wait times before filing subsequent bankruptcy cases, greater document production requirements, mandatory credit counseling as a prerequisite to filing a bankruptcy petition, and a provision allowing a Trustee to pay a tardily filed claim under certain circumstances.
Tuesday, September 13, 2005
Real Estate Tax Roll-Back
Residential Real Estate Tax-Reform Program / Affordable Housing Incentive
Goals:
1. Increase affordable housing in Sarasota
2. Insure current homeowners can afford their Sarasota homes
3. To strengthen the current housing market
Program:
All currently homesteaded property / or declared “second home property” would have their real estate taxes rolled-back to 9/11/2001 or the least tax ever assessed on the property since 2001, such as newer construction.
An owner would only be able to declare 1 property as a ‘second-home”.
When an owner sells his primary or second - home property and purchases another property of greater value which will also be homesteaded or declared “a second home, he “takes with him” his property tax from the house he is selling.
Also the new purchaser of the subject property may “keep the rolled back tax” if he intends to homestead the property or declare it a “second-home. If the property is being purchased not as a primary or qualifying second home, the tax would be at the current assessed value.
Also,
1. In order to qualify as an approved second-home, the property must be located at least 75 miles from the purchaser’s primary residence.
2. First-time home buyers will have their property taxes frozen for 3 years.
3. All new construction would be taxed according to current value.
Goals:
1. Increase affordable housing in Sarasota
2. Insure current homeowners can afford their Sarasota homes
3. To strengthen the current housing market
Program:
All currently homesteaded property / or declared “second home property” would have their real estate taxes rolled-back to 9/11/2001 or the least tax ever assessed on the property since 2001, such as newer construction.
An owner would only be able to declare 1 property as a ‘second-home”.
When an owner sells his primary or second - home property and purchases another property of greater value which will also be homesteaded or declared “a second home, he “takes with him” his property tax from the house he is selling.
Also the new purchaser of the subject property may “keep the rolled back tax” if he intends to homestead the property or declare it a “second-home. If the property is being purchased not as a primary or qualifying second home, the tax would be at the current assessed value.
Also,
1. In order to qualify as an approved second-home, the property must be located at least 75 miles from the purchaser’s primary residence.
2. First-time home buyers will have their property taxes frozen for 3 years.
3. All new construction would be taxed according to current value.
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