More investor visas, MID in jeopardy, ch-ch-Chia!
“Buy a home, get a Visa” programs have been in existence in a few European countries for awhile. Evidence to the effectiveness of the programs in helping housing markets however is scant. Now legislation has been introduced in the US. The Atlantic looks at what some legislators have proposed.
Tiny homes come to the Nation’s capital.
As the Fiscal Cliff draws near, experts are beginning to question the survivability of the mortgage interest deduction. As the Obama administration and lawmakers on Capitol Hill scramble to defuse automatic spending cuts and tax increases set to take effect Jan. 1, a herd of sacred cows — from Social Security and Medicare to deductions for charitable giving and mortgage interest — are in danger of losing their untouchable status.
OMG! The abbreviation is older than you think!
Chia seeds, those quick growing green miracles that can transform a piece of ordinary pottery into a delightful Chia Pet, are actually really good for you. Start eating!
As we search for alternative, clean energy sources any development on this front moves us forward. Rice University researchers are on the path to making steam without boiling water. The implications of such research are promising.
And last, we end on a positive note with a story of a selfless cop who does a good deed that goes viral. New York Police Officer Lawrence DiPrimo did the right thing to help a shoeless man in Times Square—he bought him a new pair of boots and socks. A tourist from Arizona snapped a picture of that act and let the world know that Office DiPrimo is a hero!
A member recently asked us if we had ever heard of a program where foreign nationals can fast-track his or her way to a permanent resident visa in exchange for investing and generating a certain number of new jobs in the US. The program the REALTOR was referring to is the EB-5 Immigrant Investor visa, administered by the Department of Homeland Security. The basic outline is:
- establish a new commercial enterprise in the US with a minimum investment of $1 million ($500,000 in a high unemployment or rural area)
- create or preserve 10 full-time jobs for qualifying US workers within a certain amount of time
- BUT owning or running a household does not count (ie. you aren’t gonna be able to hire ten servants to help at your estate)
There’s a whole slew of paperwork of course but it’s one way to establish residency. Earlier this year the New York Times had an article on how several new Marriott hotels have been financed through tapping into this ready pool of investors. As sources of traditional financing dried up in the Great Recession, a number of hotel firms have also used EB-5 financing to get projects off the ground, generally at rates of return less than those demanded by the broader market.
Other options are in the works. The Wall Street Journal ran an article recently on a proposed Start-up visa for foreign entrepreneurs now in Congress:
The Senate bill calls for a number of changes to immigration law. Among them, it would create a new type of visa allowing foreign-born entrepreneurs legally in the U.S. to stay if they can raise $100,000 in capital and hire at least two American workers during their first year holding the visa.
People who would launch any type of business—from an Internet startup to a restaurant to a trash-hauling operation—would qualify for one of a total of 75,000 visas. The visa would last four years as long as the entrepreneur employed an average of five full-time employees during the final three years of the visa. After that, he or she could apply for a green card to stay in the country—and work—as a permanent resident. The legislation doesn’t specify whether the capital must come from U.S. investors.
For the latest developments on the bill (Startup Act 2.0), visit its page on GovTrack.us. The site doesn’t give it much chance of passing this term, but there’s always next year, and version 3.0.
Condo shopping at the book signing and jumping into the world’s biggest pile of leaves
The latest open house twist: book signings and readings at high-end Manhattan condos. Organized by event companies and private groups, firms are finding they are a good way to get an exclusive list of people into a property without feeling it’s a hard sell. Other ideas to bring in groups: wine tastings, lingerie shows, and psychics. If the place is big enough, some people combine various events to attract a wider crowd.
The MarketWatch lists 5 things NOT to buy on Black Friday – Toys, Winter Apparel, tablet PCs, bed linens, and luxury goods.
And finally, the world’s biggest pile of leaves. Happy Thanksgiving to everyone!
The election and housing, social media analysis, and showing disasters
The election’s over, and whether your happy or sad, the world keeps spinning. Trulia’s top researcher tries to answer the question of what President Obama’s re-election means to housing.
In case you missed it: REALTOR Magazine had a great list of Top 10 Worst Home-Showing Offenses. Some were obvious: smells, mess, lingering owners, but nude photos of the owner (also the listing agent) was an interesting twist. Some of the comments to the article from other REALTORS are priceless.
The social media experts at NAR suggest using analytic tools like Facebook Insights or Google Analytics to analyze and improve social media efforts. Analysis can shed light on how to best connect with your users: do your followers respond to pictures, data, graphics, or personal stories? What types of posts garner the greatest engagement? Though we are all tired of reading/hearing/seeing anything election related, the Atlantic’s recent article on the presidential election offers some thoughtful analysis of this topic. Politics aside: how could a similar analysis of your own social media efforts improve your business?
Although credit card offers in the mail have slowed dramatically in the last few years, they haven’t stopped. Time gives you 5 credit cards that you will want to skip should they come through your mailslot.
Field Guides are one-stop resource packages on dozens of subjects of interest to REALTORS®. On each page you’ll find links to articles, books, web sites, statistics, and other material on each subject. The list of the most-used field guides from Information Central for the month of October 2012 was released today:
- Field Guide to Quick Real Estate Statistics
- Field Guide to 1031 Exchanges
- Field Guide to Marketing Tips for REALTORS®
- Field Guide to Real Estate Office Policy Manuals
- Field Guide to Listing & Selling Luxury Properties
- Field Guide to the Best Places to Live
- Field Guide to Opening a Real Estate Brokerage
- Field Guide to Buying vs. Renting
- Field Guide to Short Sales
- Field Guide to Social Networking for REALTORS®
Have an idea for a new field guide? Let us know!
New life in a real estate career, a real estate finance reference tool, and Halloween treats
Donate to REALTOR Relief Foundation to support victims of Sandy.
A still sluggish economy, lack of opportunities in law and finance, and glow of reality tv fame is causing more and more young people to turn to real estate sales as a career, reports the Wall Street Journal. Some of the country’s flashiest and biggest deals are being brokered by agents in their 20s and 30s. Buyers and sellers are attracted to the young agents, according to the article, because of their drive and hunger.
For those looking for a desk reference resource on real estate finance, we recommend Clauretie & Sirmans’ book “Real Estate Finance: Theory and Practice.” Currently, the fourth edition is available for loan in the NAR Library. The book offers definitions and in depth details on a variety of real estate finance topics—both residential and commercial—covering interest rates, federal housing policies and taxation issues, business formation and liability, ADC (Acquisition, Development, and Constructing) financing, and much more.
Bloomberg offers a video reminder that you can’t always believe what you see and hear. Plus, a tip on how to distinguish between the real and the fake.
Dedication and Service from the Army’s Old Guard. Even during hurricanes and bad weather, The Tomb of the Unknown Soldier has been continuously guarded since 1937. Guards disobeyed orders to leave during Hurricane Isabel and carried on with their guard duties.
The aftermarket in stolen mobile phones has mostly been wide open up til now. A thief could simply bring a stolen phone to a dealer and get it reactivated on a new plan. Carriers are beginning to take counter-measures finally. The major players are starting to implement a stolen/lost phone database to check on the status of a dubious phone. While now a check is carrier specific the goal once everyone has made their list available it to combine their records into one master database. Advice on protecting your data and phone: keep it out of site, use a password lock, see if your device or carrier offers remote data wipe incase it is stolen.
Which candies do trick-or-treaters crave the most? How old is too old for trick-or-treating? Just how common is it for parents to stealthily munch their kids’ Halloween candy when no one’s looking? Here’s the low-down on Halloween treats.
Sweden is running out of trash and that is a problem, reports NPR. Sweden send only 4% of its garbage to landfills, where it is converted into power. The country is now forced to import trash from Norway to produce power. Wouldn’t it be great if the U.S. could recycle our trash as well as Sweden?
As winter approaches the time for warm, hearty comfort food commences. We’ve had great luck with Ina Garten’s Cream of Wild Mushroom Soup recipe. Most recently we substituted cauliflower, broccoli, and potato in place of the mushrooms and it turned out beautifully.
Recently updated Field Guides:
Association Shared Services
Meaningful partnerships are the foundation for success. Whether the motivation to “share services” or partner with another association is economic, or to offer new, increased and improved services for members, there is information to help you do just that. Below you will find a selection of articles and books pointing out the positive aspects, as well as, the ‘how-to’ to partnering.
Dealing with Stigmatized Properties
Do you dare disclose if there is murder or mayhem at your listing? What if the owner was a controversial person? What are the professional and logistical challenges if there is a well-publicized ghost on your next property? Don’t despair, help is here! This page offers some creative marketing tools and advice for selling properties with an unsavory past.
Getting a Mortgage
A mortgage is probably the biggest loan you’ll ever take out and it’s important to look at all of your options before you sign on the dotted line. In this Field Guide you will find information on the many types of mortgages available, including creative financing options, links to real estate calculators, government programs, do’s and don’ts of refinancing and much more.
Mortgage Fraud
Mortgage fraud is one of the most notorious crimes in the United States. It has left many home owners with “underwater” mortgages that are substantially higher than the valued price of their home, many lenders with defaulted loans and foreclosed homes, and many real estate professionals in the precarious position of needing to rigorously screen new clients’ financial portfolios while keeping apprised of major regulatory changes and new procedures. Learn about the different types of mortgage fraud and discover how to recognize the signs, take precautions, and report incidents.
Lease-Option Purchases
Lease-option agreements are common when acquiring personal property—such as dishwashers, washing machines, automobiles, and TVs—but are not as common for the acquisition of real property. Lease-option agreements are generally utilized in residential real estate acquisition when a home buyer would like to purchase a home, but needs to repair her credit rating in order to secure a promissory note and mortgage. The lease-option agreement allows a buyer to lease a property for a set period of time—typically between 1-3 years—with the option to buy the property at a contractual future date. Read the articles in this NEW Field Guide to learn more about this alternative real estate financing option.
Office Properties
What is the impact of property tax on commercial property? How is the economy affecting office buildings? Get the latest on office building trends and much more in this updated field guide.
Real Estate Transfer Taxes
Real estate transfer taxes are state and local taxes that are assessed on real property when ownership of the property is transferred between parties. Although proponents say real estate transfer taxes are necessary to help fund state services, opponents view them as an unwarranted tax on home sales. The articles and studies in this Field Guide examine what transfer taxes are and their impacts on the real estate market, and provide resources on current transfer tax laws and initiatives.
REALTOR® Safety
You meet lots of people in the real estate business—some nice and some not so nice. Learn how to protect yourself at open houses and in the car. Get safety tips, handouts and posters from the National Association of REALTORS® and REALTOR® Associations.
Using GPS Navigation Systems in Real Estate
Real estate transfer taxes are state and local taxes that are assessed on real property when ownership of the property is transferred between parties. Although proponents say real estate transfer taxes are necessary to help fund state services, opponents view them as an unwarranted tax on home sales. The articles and studies in this Field Guide examine what transfer taxes are and their impacts on the real estate market, and provide resources on current transfer tax laws and initiatives.
Have an idea for a new Field Guide topic? Let us know!
