Check out video made to sell $35,000,000 house!
When seeking buyers for a $35 million luxury mansion, you might need to get creative.
That was the thought of DeeAnna Staats, owner of Carbon Mesa Estate in Malibu, Calif., and president/CEO of Staats & Co.
Carbon Mesa stars in a promotional movie and has its own custom-made iPad application that was delivered direct to a select few prospective buyers on gift-wrapped iPads.
“We knew with a $35 million price tag, there’s a very small, select audience,” said Andy Carmichael, who works in marketing for Staats & Co., which deals in real estate development and is launching the Feed Body & Soul chain of health-oriented “boutique restaurants."
“Research shows that most of the (high-end real estate) activity in California in the last 12 months has been from overseas buyers," Carmichael said. "So it was important that we understood who could be a potential buyer, not just domestically but internationally.”
Staats and her team decided to give remotely located potential buyers the next best thing to coming to the house. The resulting action-style short film, “The Spider and the Fly,” is not a typical real estate house tour video. It’s a professionally shot and directed mini-movie about 3 1/2 minutes long.
After viewing the film, potential buyers can choose from 10 languages to read the specs and explore the house through additional video and still photos, or explore the Malibu area.
As for the mansion itself, it’s a 9,500-square-foot structure with 4,500 square feet of outdoor patio space on six acres.
It features two kitchens, six bedrooms, nine bathrooms, and panoramic views from every room overlooking Carbon Beach, otherwise known as Billionaire’s Beach (the local billionaires include David Geffen, Microsoft’s Paul Allen, mega-philanthropist Eli Broad and Oracle co-founder/CEO Larry Ellison). It also has a movie theater and a wine cellar that stores over 800 bottles.
1031 QUALIFIED INTERMEDIARY SERVICES
In 1997, Congress passed new, generous rules that effectively eliminate capital gains tax on the sale of most people's primary residence. But what happens if you are selling any other classification of real estate investment property, business property, vacation home, etc.? You will be taxed on your profit unless you use the IRS Section 1031 Exchange Rule.
Despite recent reductions in capital gains tax rates, why pay taxes on the sale of investment real estate when you can defer that tax and increase your buying power on a bigger and better property?
Through the use of a “1031 Exchange”, Park Place Realty NW Inc. can assist in putting off taxes you would otherwise pay on the sale of investment property.
In conjunction with the First American Exchange, Park Place Realty NW Inc. serves as Qualified Intermediaries, in order to help clients defer tax upon the sale of investment real estate by taking advantage of the 1031 exchange technique. For further information on this service, contact AJ Allen at email@example.com
NOT SURE WHAT 1031 EXCHANGES ARE ALL ABOUT? Read our 1031 FAQ below. WHAT IS AN EXCHANGE? Use of the word "Exchange" is essentially a "legal fiction". What happens in the real world is that a sale and subsequent purchase are made interdependent using the 1031 Exchange technique and special paperwork. (You sell to whomever wants to buy and then buy whatever you want from any Seller.) These "exchanges" are often called Starker Exchanges or Tax Deferred 1031 Exchanges, but a better name would be The Investment Roll Over Rule. Your money rolls over into a new purchase.
WHEN SHOULD YOU USE THE TECHNIQUE? Anytime you are selling real estate that is not your primary residence and you are faced with an onerous capital gains tax, use the 1031 Exchange technique instead of simply selling. Virtually any new purchase could qualify as your replacement property. The diagram below will give you the idea.
WHY SHOULD YOU DO AN EXCHANGE? Tax money paid to the government is immediately lost forever and forever is a long, long time ! When you purchased the property, did it occur to you that you had made the Government a silent partner who would want to share the profits? Think of how long it would take you to save money lost to taxes and to rebuild that hard earned equity. Fortunately, you con avoid this scenario using the Exchange Technique.
HOW DO YOU DO AN EXCHANGE? Your sale and subsequent purchase must take place within a 180 day envelope. Special paperwork links these two events together and allows them to qualify as an Exchange. Sale proceeds must be deposited in a special account during the period between the sale and purchase. Exchange Rules require that you designate a Qualified Intermediary to perform these services.
Follow the explanation below to see how it works:
1. The Exchangor enters into a Contract to sell to anyone who wants to buy.
2. The Exchangor enters into an Exchange Agreement with a Qualified Intermediary.
3. The Contract for Sale between the Exchangor and the Buyer is assigned to the Qualified Intermediary.
4. The Closing takes place, the Exchangor deeds the property directly to the Buyer and the sale proceeds are deposited with the Qualified Intermediary.
5. Within 45 days after Closing, Exchangor identifies possible replacement property to the Qualified Intermediary.
6. The Exchangor enters into a Contract to purchase whatever property is desired from the Seller of that property.
7. The Contract for Sale between the Exchangor and the Seller is assigned to the Qualified Intermediary.
8. The Closing takes place within 180 days of the first closing, Seller deeds directly to the Exchangor, and the monies held by the Qualified Intermediary pay for the purchase.
9. The Exchange has been completed and no tax is owed. What really occurred is a Sale and subsequent purchase that were made interdependent through use of the Exchange technique and use of a Qualified Intermediary.
Note: The Exchangor must not receive or handle any funds at any time after the sale of the investment property tobe exchanged!
ARE THERE ANY RULES OR REQUIREMENTS? There are three requirements your transactions must meet in order to have a completely non-taxable event. The 1031 Exchange Technique is not “all or nothing”. It is possible to get some cash ( which will be taxable) provided it is done the right way. The 1031 Exchange technique can be flexible to meet certain needs. A SUMMARY OF EXCHANGE BENEFITS
1. You will save significant money you worked hard to earn. Tax money is lost forever. The 1031 Exchange Technique makes this loss unnecessary.
2. It is true that you must purchase something new to avoid the tax, BUT the Government helps subsidize your new purchase with your tax savings and, therefore, your purchasing power is significantly increased.
Let Park Place Realty NW Inc. help you increase your investment property buying power! If you in Seattle or a surrounding area and need information on this service, contact AJ Allen at firstname.lastname@example.org
The Definition of Creative Financing
1. In general. Any funds acquisition, bank lending, or capital raising technique that differs from standard industry practices. Borrowers often resort to innovative financing when financing from conventional sources are unavailable or can be arranged at more favorable terms using nonstandard financing techniques. Such techniques have become more common in the fixed income and equity markets in recent years.
2. Commercial lending. A customized loan in which the rate paid and credit terms are negotiated by borrower and lender. The lender may agree to arrange financing at an attractive rate and favorable terms if a borrower assumes part of the credit risk in funding a loan. So-called performance based loan pricing also allows a lender to tailor a line of credit or revolving credit so that pricing is set according to the borrower's usage of the credit.
3. Mortgages. Any mortgage that differs from a 30-year Conventional Mortgage in rate, credit terms, or other factors. Creative financing allows a lender to tailor mortgage financing to suit a borrower's income and financial situation, making home ownership more affordable by a wider group of borrowers. Reduced interest rate loans, seller buy-downs, or jumbo loans are examples. Creative financing also can also involve taking out a Second Mortgage at loan origination to lower the required down payment. Most creative mortgages are ineligible for purchase by federal agencies in the Secondary Mortgage Market. See also Alternative Mortgage Instrument; Sale and Leaseback.
Submitted by: AJ Allen Designated Broker Park Place Realty NW Phone 425-223-6021 Fax 425-988-1675 Email AJ@aj-allen.com
Luxury Homes In Seattle And Surrounding Area's
More luxury home owners are offering creative financing options for buyers who would have otherwise been unqualified to buy. In most cases the down payments are lower as well. I remember when sellers wouldn't even look at you unless you had at least 20% down and I have recently sold several properties with buyers putting down 10%, which is no different than conventional financing. In fact, it has been easier, considering my transactions are averaging a 2 week turnaround time from the buyer's initial viewing.
Designated Broker Park Place Realty NW
If you are a broker with listings offering owner financing/seller financing, we have buyers for you! We get international buyers who either purchase all cash, or are looking for seller financed properties, due to the difficulty of obtaining financing without citizenship. We also get many buyers with loads of cash and no time on the job, due to a recent relocation. These buyers need interim financing until they get the required 2 years on the job needed for conventional financing.
Designated Broker Park Place Realty NW
Where Are Home Prices Rising Fastest?
Drop since market peak: 53.1%
Forecast gain through 2013:21.5%Home buyers started coming back to Madera earlier this year.
"Homes are selling quickly and with competing bids," said Esther Riffel, president of the Madera Association of Realtors.
A lot of that has to do with the dirt-cheap prices. At $125,000, the median home price is well below the national average of $163,000, according to Fiserv.
And buyers get plenty of home for their money: Recently, a 2,400 square-foot home with three bedrooms and three baths sold for just $127,000. Five years ago, the same home went for about $375,000.
However, part of the reason the deals are so good is that most of the sales are foreclosures or short sales, said Riffel.
Another thing to be wary of in Madera: The jobs picture. As in most nearby cities in California's Central Valley, unemployment is high, at 16.6% in March, according to the Bureau of Labor Statistics.
2. Medford, Ore.
Drop since market peak: 37.1%
Forecast gain through 2013:20.1%A hot spot among retirees, this small city located just north of the California border is staging a comeback.
"We now have the lowest [housing] inventory in six years and the strongest buyer traffic in seven years," said Colin Mullane, a real estate broker at Full Circle Real Estate in Medford.
Homes are selling at a quicker pace and at higher prices than they did over the past several years, according to the local multiple listing service. Another promising sign: more distressed properties are being sold in short sales rather than going into foreclosure.
One factor could hinder the housing market recovery, however: unemployment. In March, unemployment stood at 11.7%, well above the national average.
But a steady influx of retirees should help. According to Mullane, many seniors are drawn to the area for its mild Mediterranean-like climate, excellent medical facilities and reasonable cost of living.
3. Yuma, Ariz.
Drop since market peak: 37.4%
Forecast gain through 2013:16.7%Yuma can thank its location for helping it recover from the housing meltdown. The Arizona town sits in a Foreign Trade Zone, where products and materials can be moved between Yuma and Mexico duty-free.
And the nearly constant sunshine also makes it a center for renewable energy development, with companies like First Solar and Abengoa Solar hiring hundreds of workers, according to Julie Engel, director of the Yuma Economic Development Corporation.
Agriculture is another major industry here, especially due to the long growing season.
All that is helping, but the economy is still struggling. The area has one of the nation's highest unemployment rates, nearly 24% in March. And median household income of just over $45,000.
A structural problem for the economy is that it's seasonal with agricultural workers often facing months of idle time, according to Moody's Analytics. The workforce also tends to be poorly educated with only 15.9% holding a bachelor's degree or higher, according to the Census Bureau.
Yet, home prices are so cheap that the vast majority of families earning the area's median income can afford a home, according to the National Association of Home Builders.
4. Corvallis, Ore.
Drop since market peak: 11.4%
Forecast gain through 2013:13.2%The economic fortunes of the Corvallis area are closely tied to Oregon State University, which not only hires a lot of workers but has also spawned a handful of local businesses.
Recently, the local economy has been on an upswing. The unemployment rate has fallen by nearly one percentage point in the past year to 6.1%. And enrollments at the university climbed by 8% and 5% over 2010 and 2011, respectively, boosting demand for rental units.
That has created an opportunity for real estate investors, who are buying up homes priced below the median level and renting them out to college students, said Jimmy Yang, an associate professor of finance at Oregon State
Supply is limited though, according to Stuart Conser of Conser Realty. Smart growth initiatives aimed at preserving open spaces put limits on development in certain parts of town. With fewer new homes being built, it should put upward pressure on pricing.
5. Eugene, Ore.
Drop since market peak: 21.2%
Forecast gain through 2013:12.4%Like Corvallis, Eugene's comeback is partly being fueled by the fact that it hosts a big university.
The University of Oregon brings a steady supply of students, many of whom stay in the area post-graduation.
However, earnings here are not very high. Household income in the Eugene area is about $53,000, about $13,000 below the national median.
Still, homes are selling -- just not at the high-end of the market, said John Hoops, a former president of the Oregon Association of Realtors and a broker with Windermere Real Estate.
"On inventory under $200,000 we're seeing multiple offers," said Hoops. Sales of properties near the university are especially strong with some of the demand coming from investors who rent out properties to students.