Believe it or not, the practice of filibustering has its roots in real estate and land management policy. During the reign of Julius Caesar as consul in the Roman Republic, the Roman Senate had a rule that all legislative business must be accomplished before sunset. This had the laudable effect of prohibiting legislators from passing measures “in the dead of night.” But it also created a window for those in a minority coalition to
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If you’re fairly new to being an independent real estate flipper, or new to being self-employed or an owner-operator of a corporation in general, it’s time to reassess the way you’ve become accustomed to looking at taxes. Here’s why: Flippers, by definition, are entrepreneurs. Instead of buying and selling widgets, though, you’re in the business of selling inventory. The IRS taxes you like a retail store owner, after all.
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Read more about Tax Planning Tips for Flippers
For generations, the longstanding goal of homeownership as a key component of the American dream was propped up on … strategic ambiguity. When Congress chartered the twin government-sponsored enterprises of Fannie Mae and Freddie Mac to create a ready secondary market for mortgages to encourage bank lending, they didn’t specify any sort of government guaranty or backing should these enterprises fail.
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Read more about Government-Sponsored Enterprises
While mortgage interest rates are on the rise again, putting steady pressure on the affordability of homes, there is a significant silver lining from the property buyer’s perspective: Rents have reached an all-time high as well. This is crucial from a real estate perspective, because high rents, more than any other indicator, place a sturdy floor under real estate investments.
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Read more about Capitalization Rate
Senate Republicans have successfully stalled the nomination of Congressman Mel Watt as Federal Housing Finance Agency director. And they make no sign of relenting anytime soon. While this seems like a minor political spat over a backwater subcabinet post – we’re not even talking about the secretary of housing and urban development here – there’s actually potentially quite a bit riding on the nomination for those in the real estate
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Read more about Mel Watt’s Nomination as FHFA Director
Things are getting a little tougher out there for flippers. Interest rates on debt are picking up – and that’s going to spill over from the individual 30-year mortgage market to the hard money market. Meanwhile, institutional buyers have been backing up the truck in some areas, buying up loads of distressed properties that flippers have traditionally counted on as their bread-and-butter projects.
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Read more about Financial Ratios for Real Estate Flippers
Credit for many homebuyers is about to get substantially tighter, come November 16. No, it has nothing to do with the debt ceiling or the government shutdown or event the Federal Reserve. In this case, it’s a long-scheduled program changeover at Fannie Mae, which is planning to change the code on the “Desktop Underwriter” program. This is the computer software program lenders frequently use in the field to ensure
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Read more about Changes at Fannie Mae
Long-time readers of the Flippin’ Insider may recall the column in which I discussed the tax ramifications of flipping houses. Here’s the gist of it: The IRS considers houses to be no different than hubcaps: If you are in the business of buying inventory wholesale and selling it at retail, then a house is no more a capital asset, deserving of favorable long-term capital gains rates, than a hubcap. Instead, the IRS classifies
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Read more about Avoiding the ‘Dealer’ Tax Trap
Flipping real estate is all about deal flow. Flippers don’t get to rest on their laurels and collect rent checks. You have got to get to the point where you are not only working on at least one profitable deal all the time, but where you actually have to choose from among several profitable properties to work on, because you simply cannot take them all on at the same time without additional staffing.
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Read more about Building a Deal Pipeline
Once again, we find ourselves at the precipice of a government shutdown. Unless Congress comes to an agreement with the President to pass at least a continuing resolution, all nonessential federal government functions will grind to a halt come October 1. Federal employees will be furloughed – possibly never to make up the wages lost. This also means that key bureaucracies in the IRS, Department of Housing and Urban Development, and
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Read more about Government Shutdown