Real Estate and All That Jazz: January 2010

Otay Ranch Farmers Market

The Otay Ranch certified Farmers Market boasts an incredible community of family farms that make this market a local Tuesday tradition for all. Enoy a market that's easy to get to plenty of parking and the freshest produce of the season.
Time: 4:00 p.m.-8:00 p.m.
Location: Main St. in Otay Ranch Town Center

Otay Ranch Farmer's Market


Nature Walk-Mission Trails
Each Wed., Sat. and Sun. in February

Learn about the history, geology, plants, animals and ecology of Mission Trails Regional Park by taking a 1.5 hour walk with a trail guide. Wear sturdy shoes and bring water. Walk is cancelled if raining.
Time: 9:30 a.m.-11:00 a.m.
Location: Mission Trails Regional Park, meet at the Visitor Center
One Father Junipero Serra Trail    

Mission Trails Park

Focus on Orchids Photo Workshop
Feb 6th

Orchids are among nature's loveliest creations but are often very challenging to photograph. Bob Bretell has been shooting orchids for 20 years and will demystify the frustration many camers enthusiasts have capturing these exotic flowers on digital. All levels welcome. Fee required.
Time 8:30 a.m-2:00 p.m.
Location: San Diego Botanic Garden, Eche Building, Encinitas

Puppy Love 5K Run/Walk
February 6th

Join Helen Woodward Animal Center fo their first annual Puppy Love Run. Celebrate your love of animals by runing/walking near the Pacific Ocean. After you complete the course come participate in the Furry Valentine Canine Costume Contest, Doga yoga, doggie boot camp, agility and many more fun activities. Proceeds for this event will benefit the Center and orphaned pets all over the country.

Time: 7:00 a.m.
Location: Solana Beach 101, corner of Via de la Valle and the 101

Puppy Love Run

Stay tuned for weekly events in Metro San Diego, Encinitas, Solana Beach, Otay Ranch.

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~For Women only~

We have a very stressful job and when you are a woman of a “certain age” keeping your skin young and fresh looking is vital. Now I am not against plastic surgery, but I would rather try less drastic and more natural measures to “turn back the clock”. I am always getting compliments on my complexion and in addition to a healthy diet, enough sleep and plenty of exercise, I think the following regimen has really made the difference between good skin and great skin. My complexion tends to get “pasty” in winter and although I could sit in the sun in San Diego all year, I have stopped tanning altogether.  I love the look of a natural "glow". I'm under the care of a good dermatologist and she recommended a night cream that I use faithfully. It is called:

Good Pharma Night Cream

It softens lines, reduces pore size and improves skin texture.
It is a product that is created by a compounding pharmacist by
prescription only. BURNS DRUGS LA JOLLA CA is one of the best compounding
pharmacies and they have a national reputation. They will send the product by mail to anywhere in the USA and have always been professional and easy to deal with.

Nair or Veet Facial Depilatory

A great way to rid your face of that unwanted “peach fuzz”. If you have none, well good for you. I just know that facial “peach fuzz” is fairly common as we age.Waxing is too abrasive for my skin. Make sure you purchase a“face only” product and follow directions. If you have never used this, test a small part of your face first to see if you have any allergic reaction.

Tan Towel Daily Moisturizer On the Glow

A product that works well on your newly exfoliated and refreshed face and neck. Just put this on like any moisturizer but be careful: it adds a hint of color so wash hands well. It is a very, very light tanner, but does not add an orange cast to your skin, rather a "sun-kissed" color which is very natural. With a hint of blush and nothing else your complexion will look radiant. Check out Tan Towel's product line.

So the routine is:

Good Pharma Night Cream (nightly or every other night), Nair Depilatory(when needed) and Tan Towel every few days. Do NOT use Good Pharma Night Cream on the same day you use depilatory. It may take a few weeks to notice any difference but I bet you will love the results.

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A dollar saved is a dollar earned. Who hasn't heard that? It couldn't be more applicable as when you are talking about your San Diego CA income property. Be it 2 units or 200 units, high property maintenance costs can cut into your bottom line, thus reducing or even eliminating your "cash flow". The 7 following ways have proven to curb property maintenance costs in your San Diego CA income property:

1.Review Insurance Policies:
Annual review with your insurance provider for your San Diego CA income property can save you a bundle. And better still get quotes from other insurance companies. My property insurance company offers me a discount if I add my auto and homeowners to the policy. 10% is not a fortune but over the years it adds up.

2. Buy Low-Maintenance Properties.
Always prefer properties that are constructed with materials and fixtures that require less maintenance and are built to last with minimal care. That lovely fountain, manicured lawn and non-native plantings may require more time and effort than you care to give. After all, tenants don't really care if the flowers are high upkeep roses or wild native daisies.

3.Require Strict Tenant Policies:
This may be the single best way to avoid disasters. Tenants can be "high and low" maintenance, and you know which ones you need to avoid. Tenants that demonstrate personal responsibility will save you on repairs, cleaning, maintenance and wear-and-tear (think clogged drains). I have lived in my house for 5 years now and have never once had a stopped up toilet, i.e. toilets don't just break by themselves.


4. Impose Sound Repair Clauses
A great way to promote responsibility is to shift the first $50 of every repair cost onto the tenant. You may never again see a beer tab in a disposal or a child's toy in the gutter. (this really happened).

5.Recruit a Handyman
I just lost the best handyman at my San Diego CA income property! Jake was one of my tenants for 3 years and moved out of the area. I cannot begin to tell you that those were the best years of my life **sigh**. Building a relationship with a person(s) you can depend upon and trust is key.  Jake was great at plumbing and painting. He did all the "move-outs" and was always available for an emergency.Electricity was not his thing, so I developed another relationship with Ken, a skillful electrician. It basically boils down to this: an e-mail or phone call a few times a month and you can manage almost any property if you have a network of dependable handymen.

6. Don't Overlook the Small Stuff
Washers/Dryers are a source of additional income for landlords. There are some options: leasing the machines and having a company collect the money, and sending you a check every month. Owning the machines and collecting the money yourself. I prefer leasing: it may cost a little more but I do not have to respond to a 10 pm call for a broken machine, since the leasing company does all the repairs AND upgrades the equipment. If there is no laundry on the premises you lower your potential monthly rent  and appeal to tenants who don't think doing laundry is all that important. (no comment).

7.Sustain Preventive Maintenance
Apply the same principles to your income property that you would to your car. Annual "snaking of drains", recaulking bathtubs, checking elbow pipes under sinks for leaks every few months. I always send out an e-mail blast to my tenants after a rainstorm and request them to look at ceilings, walls and around windows for moisture or stains.

Collecting rents is only part of the equation. Keeping an eye on repair costs can increase your bottom line and create a solid investment. Contact me today! I will find you a great first time investment property. Contact Me.

Community Property with Right of Survivorship is a relatively new way for married couples to hold title to property in California. It combines the best features of Joint Tenancy and Community Property and enables property that was deeded after July 1, 2001 to pass to the surviving spouse without having to go through estate administration known as probate.
Historically the benefit of holding title has been a double adjustment in the income tax valuation of inherited assets to reflect the new fair market value at the time of death of a spouse.
The following is an example of how the taxable profit from selling a property can be affected by holding title as Community Property, Joint Tenancy or Community Property with ROS (Rights of Survivorship).

Charlotte and Jake bought a house in 1989 for $100K. Five years later they moved out converting it into a rental. After many years, the rental property has depreciated down to a basis of $40K while the value has risen substantially. If it sells for $300k (after commissions and costs of sale) the story has 3 possible endings, depending on when it is sold and how they hold title.

1.Taxed to the Max
Jake gets terminally ill. During this time Charlotte sells the property. The profit ($300K-basis of $40K) $260K is taxable.

2. Lower Taxes Higher Fee
Jake passes away. Charlotte sells the property immediately thereafter. The amount of taxable profit depends on how they hold title. If held as Joint Tenants, the basis in inherited property is adjusted to the date of death value. This would apply to the half of the property Charlotte inherited from Jake. The other half that she already owned was valued at $20K (1/2 of $40K basis) and stays the same. Jake's half, now owned by Charlotte is adjusted to $150K. Charlotte's new basis, her $20K plus Jake's $150K is now $170K. When she sells for $300K only the difference of $130K is taxable. Under Joint Tenancy the property automatically passes to Charlotte without passing through probate thus avoiding the delay and the expense associated with the process. Unfortunately under Joint Tenancy only the deceased spouse's one half interest obtains an adjusted tax basis, which is equal to one half the fair market value of the property at the time of death. If held as Community Property each spouse owns the entire property so Federal Tax Law says that the basis is adjusted to the date of death value for the entire property. Charlotte's basis is now $300K. When she sells for $300K, nothing is taxable.
However a drawback as vesting Title as Community Property is the legal expense often required to process the estate through probate. Probate fees typically equal about 5% of the gross value of the estate. Probate takes a year but can easily last twice that. During that time hearings are held before assets are sold or money paid out to the family.

3. No Taxes-No Fees
If held as Community Property with ROS upon the death of either spouse property automatically passes to the surviving spouse without probate and the property receives a 100% adjustment basis for tax purposes. This allows the inheriting spouse to avoid probate and sell immediately, if desired, with no taxable proceeds from the sale.

 How you hold title can greatly affect the outcome of a sale. Contact your tax advisor to find out about your unique situation. Contact Ivan Solis at Lawyer's Title for all your Title needs in San Diego, CA.

Contact me for all your Real Estate needs.

Requirements-

Requirements for establishing a Domestic Partnership in California

Both persons file a Declaration of Domestic Partnership with the Secretary of State.
Both persons share a common residence.
Neither person is married to someone else or is a member of another domestic partnership.
The 2 persons are not related by blood in a way that would prevent them from being married to each other in this state.
Both persons are at least 18 years old.
Either of the following-
A) Both persons are members of the same sex
B) One or both of the persons meet certain eligibility criteria under the Social Security Act and one or both are over the age of 62.
Both persons have the capacity to consent to the domestic partnership.

Rights of Domestic Partners

Registered domestic partners in California shall have the same rights, protections and benefits, and shall be subject to the same responsibilities, obligations, and duties under law whether they derive from statutes, administrative regulations, court rules, government policies, common law or any other provisions or source of law, as are granted to and imposed upon spouses.

Income Tax Returns

When filing their state income tax returns domestic partners in California should use the same filing status as is used on their federal income tax returns. Earned income may not be treated as community property for state income tax purposes.

Vesting

The statutes do not specify a manner of holding title for domestic partners in California. Vestings that mirror vestings for husband and wife will be accepted.

Examples
John Jones and Dave Smith, domestic partners as joint tenants
Martha Bell and Mary Smith, domestic partners, as community property.

Contact Ivan Solis for all your Title needs.

Contact me for all your real estate needs.

I have always liked to photograph food, and spend many an hour rustling around the stalls at farmer's markets around the world scoping out my next shot. I get curious looks from the merchants, wondering why I am taking pictures and not buying.
Since I had to be in NYC for family business this past week-end I decided to use the little free time I had to shoot some photos. I noticed that food (and trash) were just about everywhere, and I did find some surprises.... like an entire container of French Fries on a subway grate and the 8 varieties of potatoes at the farmer's market in Union Square.  From fresh lobsters to sesame covered Chinese treats, shiitake mushrooms and unusual radishes with a pinwheel design, here's some food for thought.

And last but not least on the subway steps, a sad testament to NYC life:

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As a new Buyer of property in San Diego, CA you may be budgeting for the purchase of your home. Closing costs are a necessary part of the equation. This list will give you an idea of what is typically included. The Buyer and Seller may negotiate "Who Pays What", but once the contract is signed instructions cannot be changed unless mutually agreed upon by all parties in writing.

Real Estate Commission:
If the property is listed or sold by an agent there will be a commission to calculate.

Taxes:
The Seller is required to pay the taxes through the last day of ownership.

Homeowner Insurance:
The Buyer of property in San Diego,CA will purchase a fire and hazard insurance policy.

Assessments and Liens:
Assessments and liens against individuals and/or the property must be paid off before the close of escrow. The Title company will normally show much of this information in the (PR) Preliminary Report and the escrow officer will work with the appropriate parties to clear up any problems so that escrow may close.

Escrow Fees and Title Insurance:
The Seller or Buyer can pay the Title Insurance fee that is referred to as the Owner's policy. The owner's policy covers the new owner's interest and "title" to the new property. The Buyer of property in San Diego,CA typically pays for the "Lender Policy" that will cover the new lender's interest in the "title" to the property. Escrow fees are usually split 50/50 between the Buyer and Seller.

Inspections and Other Fees:
Attorney fees
Loan Fees
Notary
NHD (Natural Hazard Disclosure eports)
Pest Inspection and Correction Costs
Courier/Delivery
Document Preparation
Deed Recording
Home Warranty
Tax Service Fees

Specific amounts of fees can vary, but your agent can run a Net Sheet to give the Buyer of property in San Diego, CA a pretty good summary of what to expect.

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I just finished reading The Power of Charm by Brian Tracy.

This was an easy read, and although it did not hold any earth shattering revelations, I thought the chapter on eye contact was worth mentioning.

Did you know that eye contact projects to your speaker (client, partner, boss) that you are involved? it is a basic way that people will know if you are listening. Flicking is an act of shifting your gaze from one of the person's eyes to the other. It is a process of engaging with your speaker. I know a business colleague who never, ever gives me eye contact and is always looking around the room.  This is dismissive and I don't trust her. Now think of what your clients may feel.

Intense eye contact with no gaze shifting may signal sexual interest or threatening behaviour, so as to avoid this, shift your gaze to the sides of the speakers face for just a brief moment. Never gaze at their mouth or nose (they will think they have some food on their face or worse) or above or beside their heads (they will think you are showing disinterest).

Head tilts make you look very attentive and involved. it is a simple move, tilting your head slightly from side to side. (think of how endearing it is when your pet dog or cat does this).

Try using direct eye contact, flicking and the tilt and this will communicate: "I am totally focused on what you are saying".

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