Berkshire Hathaway HomeServices Florida Network Realty - Florida Network Realty (Dev)

Whatever the reason may be, whether it is saving for college, planning for retirement or looking for some additional monthly income, many people consider investing in the Real Estate Market. Navigating the waters of real estate investment can be tricky which is why it is so important to have a Trusted Real Estate Advisor helping you along the way. Our Professional Sales Associates specialize in working with savvy investors as well as those who are new to the market. Get connected with a Berkshire Hathaway HomeServices Florida Network Realty Sales Professional today.

1031 Exchange

A 1031 Exchange is an exchange of real property in which no taxable gain or loss is recognized at the time of sale. The requirements for a 1031 Exchange comes from Section 1031 of the Internal Revenue Code and it states that investors can defer the payment of state and federal capital gains taxes by exchanging one investment property with another, rather than selling it. Since a 1031 exchange is a second home or investment property exchange, it is not permitted for primary residence transactions.

Prosperity Home Mortgage, our affiliated Mortgage Partner, can assist you with this transaction. They will allow for a 1031 Exchange only on products or programs that allow for a second home or investment property transaction. The following restrictions apply:

  • There is no subordinate financing.

  • A qualified intermediary must handle the loan closing. A qualified intermediary is an entity (usually a subsidiary of a title company) who enters into a written agreement with the taxpayer. The qualified intermediary cannot be an agent, attorney, accountant, investment banker or broker. This exchange agreement requires the qualified intermediary to acquire and transfer the relinquished property and to acquire and transfer the replacement property. The relinquished property is the property “sold” and the replacement property is the property “acquired.”

  • Copies of all closing documents—including the 1031 exchange agreement, settlement statement, and title transfer—and the purchase agreement on the relinquished property must be obtained.

  • Both purchase agreements on the relinquished and replacement properties must contain appropriate language to identify the 1031 exchange.

Property Management

The rental home industry in the Northeast Florida area is booming. If you are an investment property owner, you need a north Florida property management company that can efficiently manage your properties. Florida Network Property Management can meet and even exceed your needs. Property Managers handle rentals in Duval, Clay, St. Johns and Flagler Counties. Whether you own a beautiful pool home, golf course home, oceanfront condo or riverfront estate, we want to be your professional guide.

PROPERTY MANAGEMENT SERVICES TO OWNERS:

The goal of owning rental investment properties is to make money. If you have been struggling to manage a rental on your own, you may have found it is not as easy as it sounds to balance costs versus returns. When you come to us for your Northeast Florida property management needs we will help you in the following ways:

  • Dynamic Marketing Services Fill Vacancies Quickly

  • Powerful Screening Tools Determine Ability to Pay and Perform

  • Comprehensive Repair Services Coordinated Through Our Maintenance Division

  • Attorney Prepared Leases Protect Landlord and Tenant

  • Secure Online Portal Access to Transaction Records and Documents 24/7

  • Home Warranty Designed for Landlords Available on Monthly Payment Plan

  • Real Estate Sales and Purchase Assistance When you are ready to sell your investment or purchase additional properties.

Florida Network Property Management manages the area’s most desirable rentals and offers outstanding customer service to help tenants find a home that meets their needs. With the company’s knowledge of the Northeast Florida real estate market, Florida Network Property Management can help owners of investment properties earn strong financial rewards.  For additional information, please visit Florida Network Property Management  or contact Shelby Heinemann

Real Estate Owned / Foreclosed Homes

OVERVIEW

Foreclosure, Bank (Lender) Owned or REO (Real Estate Owned), essentially have the same meaning and can be a great opportunity for homebuyers with many immediate financial benefits. A foreclosure occurs when a homeowner defaults on loan payments resulting in the lender filing a public default notice. Oftentimes, the lender, or bank, will take ownership of the property with the intention of re-selling it. Berkshire Hathaway HomeServices Florida Network Realty’s Northeast Florida Foreclosure Listings include these specific types of listings.

The seller referred to in this type of transaction is a bank or asset management company that owns the property outright. This can be advantageous to buyers as a bank is not emotionally tied to the home and typically eager to sell for a reasonable price.

In addition, buyers work directly with the property owner (the bank) throughout the sale, as opposed to a short sale in which the buyer must deal with both the home seller and the lender. Working directly with the property owner tends to eliminate the significant time lags that are frequently seen in short sales and tends to promote a more trouble-free closing.

SOME DRAWBACKS TO FORECLOSURE AND REO PROPERTIES

In a typical property purchase, the seller prepares a property disclosure statement detailing any problems/issues with the property of which the seller is aware. In a foreclosure purchase, the buyer purchases the property directly from the bank and because no one from the bank has lived in the property, there is no disclosure statement provided to the buyer.

In every foreclosure sale the property is purchased “As Is,” meaning that the seller will not pay for any repairs. Essentially, what you see is what you get, so buyers need to be very diligent in assessing potential damage to the property and in determining a realistic value for the property. One other potential issue for buyers is that the language of a foreclosure sales contract is typically structured to minimize the liability of the bank and prevents recourse from the buyer should any issues arise with the property after closing.

Utilizing a seasoned and knowledgeable real estate agent can be a huge benefit to navigate these loopholes and is often essential in determining a realistic offer.



 

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