The Chase Foreclosure Donation Program and Sacramento

Sacramento Business Journal

Sacramento Business Journal

Recently reported by the Sacramento Business Journal, “Chase donated 115 homes since 2009 through its Community Reinvestment Program, while such cities as Elk Grove, Rancho Cordova, Lincoln and North Highlands accounted for dozens more, 184 in all.”

The program essentially “turns over foreclosed homes to local agencies to fix them up and find people to live in them.”

Thus far, the program has improved neighborhoods, occupied foreclosures, and inspired other homeowners to “fix their own homes up,” according to Carrie Grip, executive director at Rebuilding Together Sacramento.

In addition, “the program also benefitted the new buyers because the homes wouldn’t require them to outlay hundreds or even thousands more dollars to bring them up to snuff,” as reported.

Please read “Chase foreclosure donation program big in Sacramento” for further details.

A LLC and Your Investment Properties

Sacramento-Home-Inspection

If you are the owner of a few or more investment properties, you’ve might’ve asked about incorporating or setting up a limited liability company to protect your personal assets.

According to Richmond real estate attorney Katja Hill, via CNN Money, it is better to set up a limited liability company than it is to incorporate.

“LLCs are easier to maintain, she says, than the ‘Scorp’ corporate structure that’s also used by small businesses,” reported CNN Money.

Lenders, however, can make it hard for owners to “move a mortgaged property to an LLC. A transfer might also trigger a tax hit (not likely in Virginia, but rules vary by area).”

The best way to shield assets, according to CNN Money, is to purchase “umbrella insurance.” Hill also advices getting a policy in addition to the LLC.

Please read “Should real estate investors incorporate?” for details.

Bay Area home prices drop and San Joaquin Valley home prices rise

SFOBBnight

As we read news about the flooding of San Joaquin Valley by those intrigued by its attractive home-sale prices, Mercurynews.com reported this morning a decrease in Bay Area home sales, and prices.

The drop was just under 2 percent, bringing median home prices from $540,000 in August to $530,000 in September, with three main contributing factors according to DataQuick’s release report.

“The frenzied pace of the housing market was tempered by high interest rates, increase numbers of homes for sale and fewer of the investor purchases that have pushed prices up all year,” according to Mercury News reporter Pete Carey.

San Joaquin Valley home prices seem to be on the up and up as a growing number of Bay Area homebuyers are looking to escape the comparably expensive costs of living in the Bay. San Joaquin Valley is currently experiencing heavier investor activity, “record low mortgage rates,” and a tight inventory.

Please read “Bay Area home sales, prices drop in September,” for story details.

Want to know how much Congress made during the shutdown?

Congress

Well of course, if it is newsworthy, the answer might make you wince.  According to Congress Still Gets Paid, members have earned over $4 million within the 16-day standoff in Congress, as reported at the Huffingtonpost.

Lawmakers compensation is protected by the 27th Amendment, “which states that no law changing the rate of pay for members may take effect until after an election in the House of Representatives,” according to reporter Mollie Reilly.

However, for federal workers, such protections do not exist and furloughs left them without pay for over two weeks, while “members of Congress continued to earn their salaries. In light of such a situation, Congress has “approved granting back pay to workers furloughed during the showdown,” according to Reilly.

Individuals protesting the earning of paychecks by Congress during a shutdown have signed online petitions, and a representative has introduced an act. Reilly concludes, “hundreds of lawmakers decided to either refuse or donate their salaries until an agreement was reached.”

Please read “Here’s How Much Congress Got Paid During the Shutdown” for details.

A LLC and Your Commercial Real Estate Investment

Is a limited liability company (LLC) the right choice for you? In considering the protection of personal assets, “more real property investors are now using [LLCs]… The LLC is a newer form of business entity and it has benefits that corporations and partnerships lack,” according to Huffington Post blogger Phil Jemmett, CEO of Breakwater Equity Partners.

“Limited Liability”

  • “Liabilities of the members of an LLC can be limited to their financial investment,” said Jack Rose, Chief Strategist at Breakwater Equity Partners.”

“Pass-through Taxation”

  • “…an LLC member is not required to pay taxes at the business level. The “pass-through” taxation allows the LLC member to report the company’s profits or losses on individual tax returns at a lower rate,” according to Jemmett.

“Key Features”

  • “…simpler and faster than forming and maintaining a corporation, according to the State California Franchise Tax Board.”
  • “LLCs do not issue stock and are not required to hold annual meetings or keep written minutes; however, a corporation must complete those tasks in order to preserve the liability shields for its owners.”

“Management Structure”

  • “…has fewer restrictions than a corporation.”
  • “LLCs can be established in any organizational structure agreed upon by the company owners.”
  • Can be managed by owners, managers, or members, “while corporations must have a board of directors that oversees the major business decisions of the company and officers who manage the day-to-day affairs.”

“Who can form an LLC?”

  • “… Now LLCs are becoming the primary choice for all types and sizes of businesses.”
  • Those with significant assets, capital, inventory, or service offering “can benefit financially from an LLC.”

Jemmett concludes that “the articles of organization, including the name and registered agent, and the operating agreement simply have to be filed with the state in which the LLC is created, However, complications can arise when creating an LLC. Many commercial real estate and investors seek out professional help for the creation of their LLC entity and assistance can be found at most commercial real estate advisory firms.

Please read Phil Jemmett’s full blog post “Is an LLC the Right Choice for my Commercial Real Estate Investment?”

Sacramento #2 for “Biggest gains, single-family home prices”

Sacramento Rank

Sacramento Rank

Experiencing a 26.61% increase in single-family home prices between June 2012, and June 2013 placed Sacramento in second place in the category of “Biggest gains, single-family home prices” on the recently released Bloomberg Best (and Worst) list.

Neighboring cities Modesto and Stockton also made rankings in the same category. Modesto, California came in at number 8 with an increase of 24.28% in single-family home prices. Stockton ranked far lower on the list at number 20 with an increase of 20.69%.

Sacramento made the Bloomberg Best (and Worst) list in 7 categories total. Here are Sacramento’s placements in the other categories:

  • #7 Most Expensive Sushi Rolls
  • #10 Highest Prices Premium Sushi
  • #20 Most Expensive Housing Market
  • #33 Most Foreclosures  
  • #48 Fastest Growing
  • #55 Highest Premiums for Advanced Degrees

Check out Bloomberg Best (and Worst) list

Local Events: Visit your local pumpkin patch!

Sacramentosidetracks.com

Sacramentosidetracks.com

In search of your perfect pumpkin? The Sacramento Bee gotcha covered. Check out their list of local pumpkin patches, categorized by county.
 
With nearly 30 pumpkin patches within surrounding counties, there are 11 within Sacramento county to enjoy.
 
  • Bastiao Farms, 3845 El Centro Road, Sacramento; (916) 925-2947, www.bastiaofarmsgoblingardens.com. Open daily 10 am – 7 pm.
  • Davis Ranch, 13501 Jackson Road, Sloughhouse; (916) 682-2658, www.davisranchproduce.com.  Open daily 7 am – 7 pm.
  • Fair Oaks Boulevard Nursery, 4681 Fair Oaks Blvd., Sacramento; (916) 483-1830. Open daily 8:30 am – 5 pm
  • Fog Willow Pumpkin Farm, 11011 Cecatra Drive, Wilton; (916) 687-4547, www.fogwillow.com. Open Monday – Friday 11:30 am to 6 pm, and Saturday – Sunday 9:30 am to 6 pm.  
  • Green Acres Nursery, 205 Serpa Way, Folsom; (916) 358-9099.  Open Monday – Saturday 7 am – 7 pm, and Sunday 8 am – 6 pm
  • Keema Pumpkin Farm, 6532 Point Pleasant Road, Elk Grove; (916) 684-2334, www.keemapumpkinfarm.com. Open 11 am – dusk Tuesday – Sunday.  
  • Pumpkin Acres, 3101 El Centro Road, Sacramento; (916) 929-7546. Open daily 9 am – 6 pm.
  • The Pumpkin Farm, 7736 Old Auburn Road, Citrus Heights; (916) 726-1137, www.pumpkinfarm.net. Open Tuesday – Sunday 9 am – 6 pm. 
  • Soil Born Farms, American River Ranch, 2140 Chase Drive, Rancho Cordova; (916) 363-9685. Selling pumpkins at the farm stand only, 8 a.m.-1 p.m. Saturdays.
  • Zittel Farms, 6781 Oak Ave., Folsom; (916) 989-2633. Open weekdays 9 am – 5 pm and weekends 9 am – 6pm.
  • U-Pick Pumpkins, 5415 Kenneth Ave., Fair Oaks; (916) 765-7932. Open daily 9 am – 6 pm.

For the complete lists and pumpkin patch details, including entry prices, please read “Find the patch with your perfect pumpkin” at SacBee.com  

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