Short Sale approved @ 85k!

642 Michigan Ave #17 was reviewed by the lender and the short sale was approved at $85,000.00. For a South Beach condo, this deal can't be beat. Contact me today for a showing and more information.

Harris W. Gilbert
(786) 371-4431
310 Arthur Godfrey Rd.
Miami Beach, FL 33140
www.hwgmiamirealestate.com
hwgrealty@gmail.com

South Beach Short Sale!

642 Michigan Ave #17
Miami Beach, FL 33139

SHORT SALE! This studio apartment is listed at just $115,000.00. Make an offer for the bank to consider. This apartment is NOT in foreclosure. Great value, just blocks from the Ocean and fun of South Beach! Contact me today for a showing.

Harris W. Gilbert
(786) 371-4431
310 Arthur Godfrey Rd.
Miami Beach, FL 33140
www.hwgmiamirealestate.com
hwgrealty@gmail.com

Miramar Home for sale! REDUCED!!!

Beautiful 3/2 in Coconut Bay Development in up and coming Miramar. Amazing home for sale, just reduced to $315,000.00!!! Contact me today for a showing.

Harris W. Gilbert
(786) 371-4431
310 Arthur Godfrey Rd.
Miami Beach, FL 33140
www.hwgmiamirealestate.com
hwgrealty@gmail.com

One Biscayne Tower Downtown Miami Class A Office Suites FOR LEASE!!! Wood Floors, Bay & City Views!!!

Harris W. Gilbert
Commercial Sales & Leasing
The Keyes Company Commercial Division
2121 SW 3rd Avenue
Miami, FL, 33129
Cell: (786) 371-4431
harrisgilbert@keyes.com

Beginning of the end for the housing market?

Interesting article I received from the FAR. Contact me today at (786) 371-4431 to find your bargain!

Harris W. Gilbert

Another difficult year predicted for housing industry with rebound still months away

WASHINGTON – May 27, 2008 – Like spring flowers, the “For Sale” signs are sprouting in front yards all over the United States. But anxious sellers are facing the most brutal environment in decades, with a slumping economy, falling home prices and rising mortgage foreclosures.

And even the faint promise of better days ahead might not come true, given all the headwinds the housing industry is facing at the moment.

“This is going to be another difficult spring,” said Mark Zandi, chief economist at Moody’s Economy.com. “I think we are at the beginning of the end of the housing downturn, but it is going to be a long and painful end.”

The devastation is certainly a far cry from the boom years from 2001 to 2005 when sales of new and existing homes were setting records for five straight years. During that time, home prices were soaring, luring thousands of investors into the market, hoping to buy homes and flip them for quick profit.

But since 2006, the country has been mired in a housing bust, which in many ways is the worst since World War II.

Construction is expected to drop to the slowest pace since the 1940s and prices are expected to decline by the largest amount since the Great Depression.

Hardest hit are the states where sales boomed the most: California, Florida, Nevada, Arizona and parts of the Northeast. In the Midwest, the problem is shrinking jobs in the auto industry, making homes hard to sell. But virtually all of the country has felt the aftershocks of the housing slump, either through weaker home sales or the massive drag housing has imposed on the overall economy.

Housing has shaved more than a full percentage point off economic growth, trimming the gross domestic product for the past two quarters to a barely discernible 0.6 percent rate and raising the threat that the country could topple into a full-blown recession.

The National Association of Realtors reported that 46 states saw sales decline in the first three months of this year compared with the same period in 2007. Two-thirds of 149 metropolitan areas saw prices decline during the same period, the largest percentage of cities reporting price drops in the history of the NAR survey, which goes back to 1979.

The state with the biggest sales decline was Maryland, with sales down 38.6 percent in the first three months of this year compared with the same period in 2007. The drop nationwide was 22.2 percent.

The price decline nationally was 7.7 percent in the first quarter, with the biggest plunge a 29.2 percent decline in the Sacramento, California, area.

As the spring sales season got under way, the slump was continuing. The Realtors reported Friday that existing home sales fell 1 percent in April, the eighth drop in the past nine months, with the median home price falling 8 percent compared with a year ago, the second-biggest drop on record.

So just how much worse will things get?

Lawrence Yun, chief economist for the Realtors, sees some hopeful signs. Some parts of the country that have been hammered with sharp declines in sales and prices, such as San Diego, California, and Fort Myers, Florida, are now reporting sales increases, as buyers are being lured back into the market, looking for bargains.

“Lower prices and low interest rates are starting to generate results,” Yun said, noting that 30-year fixed-rate mortgages averaged 5.92 percent in April, down from 6.18 percent in April 2007. That reflected an aggressive rate-cutting effort by the Federal Reserve to try to keep the country out of a recession.

Sales should also be helped in coming months, Yun predicted, by the reappearance of more mortgage products as lenders reopen the tap for certain loans. That supply had been closed following the credit crisis that hit last August, triggered by rising defaults in subprime mortgages.

Other economists are not so optimistic, noting that the Realtors’ latest report showed the number of unsold single-family homes jumping to a 23-year high, reflecting, in part, a rising tide of mortgage foreclosures, which are dumping more homes on an already glutted market.

Adding to the foreclosure problem is the weak economy, which has resulted in four straight months of job layoffs, an indication to some analysts that the country has already fallen into a recession.

Rising job layoffs and higher gasoline and food prices have sent consumer confidence plunging – not a great environment to mount a rebound in housing.

And then there is the problem of the huge overhang of unsold homes generating further declines in prices, which seem to be keeping more prospective buyers on the fence.

“Right now a lot of people are staying away because they don’t want to buy an asset that might lose value right away,” said Patrick Newport, an economist at Global Insight.

Newport predicted that prices, which by some measures have fallen by about 15 percent nationwide from their peak two years ago, will decline another 10 percent before bottoming out in the spring of 2009. A 25 percent fall in prices would be the biggest since home prices plunged by about one-third during the Great Depression of the 1930s.

David Seiders, chief economist for the National Association of Home Builders, said he believed sales will bottom out by the middle of this year and then start to move higher by the end of this year.

He said builders, trying to control inventories, will continue slashing production, with housing starts expected to drop by 39 percent this year following a 30 percent decline in 2007. That will push activity to the slowest annual pace since the end of World War II. Seiders predicted a gradual rebound in construction starting next year.

“This is stacking up as the most dramatic housing contraction in the post-World War II period,” he said.

And while sales, construction and prices should all start to recover by next year, the rebound is not expected to be a rapid one. Some analysts are forecasting it will take a couple of years for housing to regain its footing.

“It is going to take some time first to restore confidence that housing is a reasonably OK investment, then to work off this inventory and then for the financial system to revive,” Zandi predicted.

White Building REDUCED to $20 per Sq. Ft.!!!

The historic White Building in downtown Miami has available a 5 office suite with large window offices and newly renovated wood floors. The space also includes a kitchen (or additional window office), 2 administrative staff areas, receptionist area, 24 hour access, electricity and other amenities included in the price of rent. The space is approximately 3,000 square feet and is a perfect fit for a professional office such as a law firm or any other mid size professional company. The asking price has just been REDUCED to $20 per square foot, $5,000.00 per month, well below the market value for this class A comparable space.

Contact me today at (786) 371-4431 if you or anyone you know may be interested in this great deal in a fantastic location.

Harris W. Gilbert

--
Harris W. Gilbert
Commercial Sales & Leasing
The Keyes Company Commercial Division
2121 SW 3rd Avenue
Miami, FL, 33129
Direct: (305) 779-1902
Cell: (786) 371-4431
harrisgilbert@keyes.com
http://www.hwgmiamirealestate.com/
http://hwgmiamirealestate.blogspot.com/
http://hwgmiamirealestate.sef.mlxchange.com/
http://hgilbertlaw.com/

FHA Loans Picking up Subprime Slack

Since the subprime mortgage meltdown, the Federal Government through the FHA has been picking up the slack. Recent homebuyers with suspect credit have been successful obtaining loans through the government organization. The process tends to be lengthier and more paper intensive, such as requiring the buyers to produce tax returns and financial history. While this process tends to take longer, it has stepped in for the subprime mortgages and allows people to buy homes with less money down and easier underwriting criteria than that of current freddie mac and fannie mae packages. The FHA has a history of stepping in during times of crisis, such as during the great depression and world war II, and as recently as the 1980's where the FHA stabilized the market.

If your looking for your dream home, and think that the mortgage meltdown has left you out in the cold thanks to lower credit scores and less money available for a down payment, you may in fact qualify for a FHA loan and be able to purchase that home of your dreams! Contact Harris W. Gilbert today at (786) 371-4431 to find that home and move forward in today's market crunch. The current foreclosure market has left many great opportunities for home owners, it's time to buy in the State of Florida!

Harris W. Gilbert
Commercial Sales & Leasing
The Keyes Company Commercial Division
2121 SW 3rd Avenue
Miami, FL, 33129
Direct: (305) 779-1902
Cell: (786) 371-4431
harrisgilbert@keyes.com
http://www.hwgmiamirealestate.com/
http://hwgmiamirealestate.blogspot.com/
http://hwgmiamirealestate.sef.mlxchange.com/
http://hgilbertlaw.com/

Harris W. Gilbert AVVO Lawyer Profile

Harris W Gilbert

View lawyer's profile

IRS Offers Economic Stimulus Package

Here is the Q and A from the IRS website:

Updated April 29, 2008

Under the Economic Stimulus Act of 2008, more than 130 million American households will receive economic stimulus payments beginning in May. The only way to get one is to file a federal tax return for 2007. This filing requirement also applies to some people who do not normally file, including many low-income people and recipients of Social Security, certain benefits received from the Department of Veterans Affairs and certain Railroad Retirement benefits. The Economic Stimulus Calculator can help you estimate the amount of your payment.

Following are answers to some of the most commonly asked questions regarding the payments. Scroll down the list for the basics or choose one of the following categories:

Taxpayer ID Numbers | When & How | Receiving the Stimulus Payment | Business | Armed Forces | Other Questions

Basic Eligibility

Q. What do I need to do to get an economic stimulus payment?

A. All you need to do is file a federal income tax return for 2007. Even if you are not otherwise required to file a tax return, you must file a 2007 return in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will.

In most cases, you will fill out your return, reporting all your income, deductions and credits as you normally would. But even if you are not required to file, you must file a 2007 return to get a stimulus payment this year. Low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs who normally don’t file may receive a stimulus payment if they do. The IRS will provide special filing instructions for those who do not otherwise have a filing requirement. The instructions will explain which lines on the tax return the filers need to complete.

You do not need to calculate the amount of the stimulus payment. If you want to estimate the amount of your payment, use the Economic Stimulus Payment Calculator.

If you qualify, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms.

Q. How do I find out if I am eligible?

A. The easiest way to find out is to use the Economic Stimulus Payment Calculator. Most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57 plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.

Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans’ payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.

Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment.

Q: I normally don't need to file a tax return. How do I know if I'm one of those people who may be eligible to receive an economic stimulus payment?

A: This group includes some recipients of Social Security, Railroad Retirement or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.

Q: I normally don't have to file a tax return but have enough in qualifying income to receive a stimulus payment. How do I find out more about how to file a tax return?

More information is available in Fact Sheet 2008-16. If you qualify, all you need to do is fill out Form 1040A in a few places. A sample version of Form 1040A illustrates which lines to fill out.

Q. If I'm filing a tax return this year just to get a stimulus payment, by when do I have to file?

A. The IRS encourages everyone to file by the normal April 15 tax deadline: The sooner you file the sooner you can receive your stimulus payment. But if you have obtained a valid six-month extension to file or if you are filing to establish your eligibility for the stimulus payment, filing by Oct. 15 means the IRS can process your return and issue a stimulus payment before the end of the year. [New 3/5/08]

Q. I want to estimate my payment. Please explain how it is figured.

A. Essentially, there are two parts to the stimulus payment: a basic amount based on tax liability, filing status or other qualifying factors if there is no tax liability and an additional amount based on whether a qualifying child is reported on the return.

Basic Amount of Payment: Taxpayers who had a net income tax liability will receive a payment, unless they can be claimed as dependents on someone else’s return, are high-income individuals or do not have a valid Social Security Number. The payment is equal to the taxpayer’s net income tax liability, but no more than $600 for a single person or $1,200 for a married couple filing a joint return. The minimum payment is $300 for a single person or $600 for a married couple filing jointly.

People with no net income tax liability will usually get a minimum payment of $300 for a single person or $600 for a married couple filing jointly, as long as they have qualifying income of at least $3,000. To figure your qualifying income, add together the following amounts:

• Wages that are reported on Form W-2.
• Net self-employment income.
• Social Security benefits reported in box 5 of the 2007 Form 1099-SSA, which would have been received in January 2008. People who do not have a Form 1099-SSA may estimate their annual Social Security benefit by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
• Certain Railroad Retirement benefits reported in box 5 of the 2007 Form 1099-RRB, which recipients would have received in January 2008.
• Veterans’ benefits received in 2007, including veterans’ disability compensation and pension or survivors’ benefits received from the Department of Veterans Affairs. People who weren’t required to file a tax return can estimate their annual veterans’ benefits by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
• Nontaxable combat pay if the taxpayer elects to include it as earned income.

Extra Money for Qualifying Child: Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. To qualify a child must be under age 17.

Phase Out: The stimulus payment –– both the basic component and the additional funds for qualifying children –– begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds.

Here are two examples of how the phase out works:

• An individual with AGI of $80,000 and federal income tax liability in excess of $600 would qualify for a basic rebate of $600. Because this individual’s AGI exceeds $75,000, however, her rebate is reduced by $250 (the credit is reduced by multiplying the amount of AGI over $75,000 by 5%). The taxpayer receives an economic stimulus payment of $350.
• A married couple with two children, AGI of $160,000 and federal income tax liability before the child tax credit exceeding $1,200 qualifies for a basic rebate of $1,200 and an additional qualifying child credit of $600 for a total rebate of $1,800. But because the couple’s AGI exceeds $150,000, their rebate is reduced by $500 (the amount of AGI over $150,000 multiplied by 5%). The couple receives an economic stimulus payment of $1,300.

Use the Economic Stimulus Payment Calculator to determine your eligibility and estimate the amount of your payment.

Q. I am filling out the special Form 1040A to report my qualifying income. Which Social Security benefits should I report on Line 14a?

A. The economic stimulus law refers to the same definition of Social Security and Railroad Retirement benefits used in IRS Publication 915. Thus, Social Security monthly retirement, survivor and disability benefits, or the Tier 1 Railroad Retirement benefits equivalent to those SS benefits, all count. This is the amount reported to you by the Social Security Administration as “Net Benefits for 2007” in Box 5 of Form SSA-1099 or by the Railroad Retirement Board in Box 5 of Form RRB-1099. Report this amount on Line 14a, Form 1040A. Determine the amount of your Veterans' benefits by multiplying your monthly benefit by the number of months during 2007 that you received the benefit. Supplemental security income (SSI) payments are not considered Social Security benefits and thus cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099. [New 2/27/2008]

Q. Does my supplemental security income (SSI) qualify as Social Security benefits for the purpose of the Economic Stimulus Payment?

A. No, supplemental security income (SSI) payments are not considered Social Security benefits and thus cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099. Only the amount shown in Box 5 of Form SSA-1099 is consider to qualify as Social Security benefits for purposes of the Economic Stimulus Payments. [New 4/22/2008]

Q. Does rental income qualify as qualifying income?

A. Rental real estate income is not earned income for purposes of the economic stimulus payment, unless it is net earnings from self-employment, as is certain farm rent or income received in the business as a real estate dealer. [New 4/11/08]

Q. My child just turned 17 in December 2007. Do I still get the extra child payment?

A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment.

Q. Will receiving an economic stimulus payment in any way affect my eligibility for other federal benefits, such as temporary assistance for needy families, food stamps or Social Security? Will it count as income for purposes of my Social Security benefits?

A: No. The stimulus payments will not have any effect on eligibility for federal benefits.

Q: I know some people won’t get a stimulus payment. How do I know if I’m one of them?

A: You won’t get a stimulus payment in 2008, if any of the following apply to you:

• You don’t file a 2007 tax return.
• Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.
• You can be claimed as a dependent on someone else’s return (whether or not you actually are claimed as a dependent on someone else's return). For example, this would include a child or student who can be claimed on a parent’s return. [Updated 4/15/08]
• You do not have a valid Social Security Number.
• You are a nonresident alien.
• You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

Q: What if I already filed my return but have additional income to report that would make me eligible for a stimulus payment?

A: If you have additional qualifying income for Social Security, Veterans Affairs or Railroad Retirement benefits that you would like to report, you can file an amended return using Form 1040X, but allow 8-12 weeks of processing time before making any inquiries about your payment. [New 4/17/08]

Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

A. Stimulus payments will be issued in the name of the individual eligible for payment on a filed 2007 income tax return or to the account designated by the individual on that return. This includes situations where a person dies after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse. Any issues or concerns involving a decedent's filed return or the related stimulus payment should be addressed by the legal representative of the decedent's estate. See Publication 559 for more useful information for survivors and personal representatives. [Updated 3/17/08]

Q. Is pension income from employers considered income for the Economic Stimulus Package?

A. No, pension income is not included in eligible income. [New 4/11/08]

Q. Was a special form created for people who would not normally file but are filing only to request their stimulus payments?

A. A special mailout was sent to this group of people, providing specific details on how to request the payment. It included a Form 1040A that requires only a few lines to be completed. [New 4/11/08]

Q. How will members of the armed forces receive their stimulus payments?

A. Members of the armed forces will need to file a 2007 income tax return to receive the stimulus payment. [New 4/11/08]

Q. Will military personnel stationed in a combat zone get an automatic extension to file?

A. Combat zone personnel are allotted an automatic extension to file their returns. However, if they wish to receive the economic stimulus payments, they must file their 2007 income tax returns in time for the IRS to process them before the end of the year. To ensure that a stimulus payment can be made this year, the return should be filed no later than Oct. 15. [New 4/11/08]

Top of Page

Related Items:

Economic Stimulus Payments Information Center

Tax Package 1040A-3 with sample Form 1040A

Other economic stimulus FAQs:

• Taxpayer ID Numbers
• When & How
• Receiving the Stimulus Payment
• Business
• Armed Forces
• Other Questions

Mortgage Fraud Criminal Penalties Increased

In wake of the recent rise in mortgage fraud in the state of Florida, the legislature has responded. Mortgage, which used to be a 3rd degree Felony, punishable by 5 years in prison and $10,000 in fines, has been upgraded to a 2nd degree felony. Now mortgage fraud is punishable by 15 years in prison and a fine of $100,000.00. In an effort to further deter mortgage brokers from inflating home values to lenders in order to obtain large amounts of money through the financing of property, individuals involved in these scams will now face longer prison terms and stiffer fines.

As a realtor, what does this mean for me? Well, I can be assured that underhanded mortgage brokers will be dealt with even more seriously through the court system. While it is impossible to completely flush out the problem of mortgage fraud, this is certainly a step in the right direction. If you, or anyone you know is interested in purchasing a home the right way, contact Harris W. Gilbert today at (786) 371-4431.

Harris W. Gilbert
Commercial Sales & Leasing
The Keyes Company Commercial Division
2121 SW 3rd Avenue
Miami, FL, 33129
Direct: (305) 779-1902
Cell: (786) 371-4431
harrisgilbert@keyes.com
http://www.hwgmiamirealestate.com/
http://hwgmiamirealestate.blogspot.com/
http://hwgmiamirealestate.sef.mlxchange.com/
http://hgilbertlaw.com/

Short Sale Process: Buyer

»The Short Sale Process: Buyer

As a buyer involved in a short sale it is important to work closely with an agent who understands the short sale process. You can expect to get a good deal based on the market price, but must understand that the process takes longer, so you have to remain patient. Normally, an offer is submitted to the bank(s) for approval. After the offer is submitted, the bank normally takes 45 - 60 days to evaluate the offer and respond with an acceptance, rejection or counter offer. Remember, all offers made are subject to the lender's approval.

After the short sale is approved by the bank, or banks if there are multiple mortgages, the buyer must be ready to close quickly as often times the lender's will condition their acceptance on a closing date. Right now bank's are looking to close quickly with buyer's who have good credit and money to bring to the table. Often times a buyer can obtain a property at 80% or less of the market value through the process of a short sale. If your looking for a good deal on a home or an investment property at a price well below the market value, then foreclosure listings are a great opportunity for you. Contact Harris Gilbert directly at (786) 371-4431 so we can search the area for a short sale properties.

Short Sale Market is Active

»Foreclosures Provide Opportunity

Whether your someone with a property in distress, or a buyer looking to purchase a property under value, the foreclosure market provides a great avenue to meet your real estate needs. If your a property owner looking to get out from under debt and overdue taxes, a short sale will benefit you greatly as opposed to giving the property back to the bank, or declaring bankruptcy. Your credit score will not be impacted nearly as greatly, thus your ability to regain positive credit history will be shorter.

For investors, banks often times elect to accept an offer on a property in distress well below the market value in order to mitigate their losses. For someone with the ability to put money down and gain financing in today's financial market, there are properties in distress that you should be considering. You need an individual who knows how to work with the banks and other brokers in order to successfully transact a short sale.

»The Short Sale Process: Seller

As a seller involved in a short sale you have to work with an agent that knows how to prepare a short sale package and communicate effectively with the loss mitigation department for the banks. Especially in south Florida, right now banks are taking longer and longer to pursue foreclosure actions due to the falling real estate market. This gives the seller a longer amount of time to conduct a short sale. If your house is worth less than your mortgages, and you are falling behind on your mortgage payments, HOA or COA fees, property taxes and other debt due to economic stress, it makes sense to short sale your house before the bank takes it over so you can deal with all of the creditors at once and settle your debts effectively.

After the short sale is approved by the bank, or banks if there are multiple mortgages, the banks still have the option to either come after the seller in court and obtain a deficiency judgment, or to write the loss off and issue a 1099 to the seller for the amount as income. As a seller, if you are issued a 1099, and are insolvent, then you need to contact a CPA to fill out IRS Form 982. There is a possibility that you won't be taxed on the gain. If you have do not have significant assets it is more likely a bank will not pursue you for a judgment. However, all banks have different policies, and they change all the time based on their current financial situations. If your facing foreclosure contact Harris Gilbert directly at (786) 371-4431 so we can attempt to short sell your property and potentially save your credit history.

U.S. Now Becomes More Ecomonical for Commercial Businesses

Interesting article from the FAR...U.S. is now a cheaper place to do business because of the weakened dollar...Perhaps this will bring about more opportunities from outside countries, create more U.S. jobs and help our economy.

Harris W. Gilbert
The Keyes Company
(786) 371-4431

Report: U.S. now a steal as a place to do business

NEW YORK (AP) – March 28, 2008 – Thanks to the weakened dollar, the U.S. has leapfrogged France, Britain and other European countries as a cheaper place to do business.

A new study released Thursday by the auditing and consulting firm KPMG shows that the U.S. moved up on the list of places around the world that are the most cost-efficient. Researchers compared 136 cities in 10 countries in North America, Europe and Asia, but did not include fast-growing China.

Mark MacDonald, the global director of KPMG Competitive Alternatives, said the survey authors found the U.S. to be more cost competitive than they’d ever seen because of the plunging dollar.

In 2006, the U.S. lagged behind four other G7 countries. This year, though, the U.S. surpassed Britain, the Netherlands, Italy and France, leaving only Canada as being more cost-effective among the major industrial nations.

“Now the cost of business is considerably higher in these countries due largely to the depreciation of the U.S. dollar,” MacDonald said in a statement.

Mexico, which is new to the study, was cheapest overall. The study is done every two years.

Among the larger cities, the cheapest cities in which to operate were Puebla, Guadalajara and Monterrey, all in Mexico. In the U.S., the cheapest places were Atlanta, Tampa (Florida), and the Dallas-Fort Worth area.

The San Francisco Bay Area – which includes Silicon Valley and San Jose – was the most expensive in the U.S., edging out New York for that dubious distinction. London, Frankfurt and Manchester, England, were all more expensive than San Francisco.

Paris was slightly less expensive than New York.

The study measured competitiveness using labor costs, taxes, real estate and utilities, as well as non-monetary factors. It included Australia, Canada, France, Germany, Italy, Japan, Mexico, the Netherlands, Britain and all 50 states in the U.S. Those were all compared against a benchmark developed by taking the average cost of doing business in U.S. locations.

Meltdown Creates Opportunities for Timely Investors

Interesting article from the FAR...

Focus: Vulture funds preying on the U.S.

NEW YORK – March 25, 2008 – The subprime meltdown in the United States is creating great prospects for opportunistic investors and causing a lot of funds to be set up to scoop up properties on the cheap.

In the Reuters Housing Summit held last month in New York, it was noted that many distressed debt investors and vulture funds are starting to “hover over residential real estate” as they sense the U.S. housing bubble is about to burst.

Corcoran Group chief executive Pamela Liebman said this is even happening in Manhattan, which is among the few U.S. real estate markets still buoyant.

She said, however, the funds are not interested in individual houses but in the unsold inventory in large apartment projects.

“They are prepared to buy the unsold stock, hold them for rental and then sell (when the market recovers),” she said.

Liebman said although many New York developers are hesitant to sell at a discount, they should face up to the current situation, as over time, prices might sink even lower.

In states such as Florida, several vulture funds have already been set up to buy real estate for immediate rental income.

Real estate powerhouse The Related Companies (TRC) chief executive officer Stephen Ross said “the biggest problem today is that people don’t recognize how bad things are ... and it’s only going to get worse.”

Ross expects more economic stress to occur once a new U.S. president enters the White House next year.

“Whenever a new president is elected, they’ll want to get all the bad news out of the way in their first year ... I think things will be somewhat unstable in the first couple of years.”

To prepare itself, he said TRC sold its project sites in Las Vegas in 2005 and 2006 for a profit instead of pursuing construction, fearing market demand was based on investment buyers rather than people planning to live there.

“It was all speculative ... we thought ‘This is crazy’ and got out,” he said.

Not all the speakers at the Reuters summit felt the same way, though. C.P. Morgan Communities head Tom Eggleston, for instance, said he doesn’t see the struggling U.S. housing market hitting rock bottom until mid-2010 and even then, “the recovery would not be a sharp ‘V’.”

As one of the largest privately owned U.S. home builders, he said house prices would fall another 20 percent and land by 25 percent.

In Europe, the European Mortgage Federation (EMF) secretary-general Annik Lambert said except for the United Kingdom, property owners are not at risk of a U.S.-style subprime mortgage crisis and, thus, do not need more regulations to protect borrowers.

She said EMF, which also advises the European Central Bank and Basel Committee on mortgage industry matters, has so far noted “little fallout” from the $8.4 trillion European mortgage market as a result of the U.S. debacle.

White Building Prime Commercial Lease!!!

The historic White Building in downtown Miami has available a 5 office suite with large window offices and newly renovated wood floors. The space also includes a kitchen (or additional window office), 2 administrative staff areas, receptionist area, 24 hour access, electricity and other amenities included in the price of rent. The space is approximately 3,000 square feet and is a perfect fit for a professional office such as a law firm or any other mid size professional company. Follow this link to view the property.

http://sef.mlxchange.com/Pub/EmailView.asp?r=466606602&s=SEF&t=SEF

Contact me directly at (786) 371-4431 if you, or anyone you know may be interested in leasing this beautiful space.

Harris W. Gilbert

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Harris W. Gilbert
Commercial Sales & Leasing
The Keyes Company Commercial Division
2121 SW 3rd Avenue
Miami, FL, 33129
Direct: (305) 779-1902
Cell: (786) 371-4431
harrisgilbert@keyes.com
http://www.hwgmiamirealestate.com/

Commercial Real Estate Market Holding Strong

Despite the subprime crisis in the residential market, the commercial market has been holding strong. The key to the continued success of the commercial market is that a commercial property makes cash for it's investor, which enables the mortgage to continually get paid from those proceeds. This differs from a residential property, which is dependent upon the valuation of the property. In Florida, it is said that housing values are estimated to fall potentially another 40% in some areas off the current values. For people that made housing purchases between 2005 and 2007, when the values were at their peak, it is understandable why the foreclosure rate is at it's highest level in the last century.

However, in the commercial real estate market, this is not the case. Property owners continue to make cash on their cash investments, and the property values are holding strong as a result. The lack of credit has put a slight dip into the activity of the market as the banks are not lending as easily. If you are able to qualify for a loan in this credit crunch, an investment in the commercial market still makes a great deal of sense. Not to mention the capital gains, which is the greatest asset of the property.

Contact me today to find a commercial investment property for you.

Harris W. Gilbert
The Keyes Company
(786) 371-4431

Great Time to Buy In Florida

Here is a great website with a positive spin into today's real estate market.

http://media.floridarealtors.org/GreatTimeToBuy/

The key to thriving in today's market is taking advantage of the market while it's down. If your an investor, or looking to get a great deal on a home, then this "buyers" market is ideal!

Contact me today at (786) 371-4431 to find the deal for you.

Harris W. Gilbert
harrisgilbert@keyes.com

1031 Like-Kind Exchange Article from IRS

FS-2008-18, February 2008
WASHINGTON — Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.

The exchange can include like-kind property exclusively or it can include like-kind property along with cash, liabilities and property that are not like-kind. If you receive cash, relief from debt, or property that is not like-kind, however, you may trigger some taxable gain in the year of the exchange. There can be both deferred and recognized gain in the same transaction when a taxpayer exchanges for like-kind property of lesser value.

This fact sheet, the 21st in the Tax Gap series, provides additional guidance to taxpayers regarding the rules and regulations governing deferred like-kind exchanges.

Who qualifies for the Section 1031 exchange?

Owners of investment and business property may qualify for a Section 1031 deferral. Individuals, C corporations, S corporations, partnerships (general or limited), limited liability companies, trusts and any other taxpaying entity may set up an exchange of business or investment properties for business or investment properties under Section 1031.

What are the different structures of a Section 1031 Exchange?

To accomplish a Section 1031 exchange, there must be an exchange of properties. The simplest type of Section 1031 exchange is a simultaneous swap of one property for another.

Deferred exchanges are more complex but allow flexibility. They allow you to dispose of property and subsequently acquire one or more other like-kind replacement properties.

To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction). Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules provided in the Income Tax Regulations. .

A reverse exchange is somewhat more complex than a deferred exchange. It involves the acquisition of replacement property through an exchange accommodation titleholder, with whom it is parked for no more than 180 days. During this parking period the taxpayer disposes of its relinquished property to close the exchange.

What property qualifies for a Like-Kind Exchange?

Both the relinquished property you sell and the replacement property you buy must meet certain requirements.

Both properties must be held for use in a trade or business or for investment. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment.

Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate. For example, real property that is improved with a residential rental house is like-kind to vacant land. One exception for real estate is that property within the United States is not like-kind to property outside of the United States. Also, improvements that are conveyed without land are not of like kind to land.

Real property and personal property can both qualify as exchange properties under Section 1031; but real property can never be like-kind to personal property. In personal property exchanges, the rules pertaining to what qualifies as like-kind are more restrictive than the rules pertaining to real property. As an example, cars are not like-kind to trucks.

Finally, certain types of property are specifically excluded from Section 1031 treatment. Section 1031 does not apply to exchanges of:

• Inventory or stock in trade
• Stocks, bonds, or notes
• Other securities or debt
• Partnership interests
• Certificates of trust

What are the time limits to complete a Section 1031 Deferred Like-Kind Exchange?

While a like-kind exchange does not have to be a simultaneous swap of properties, you must meet two time limits or the entire gain will be taxable. These limits cannot be extended for any circumstance or hardship except in the case of presidentially declared disasters.

The first limit is that you have 45 days from the date you sell the relinquished property to identify potential replacement properties. The identification must be in writing, signed by you and delivered to a person involved in the exchange like the seller of the replacement property or the qualified intermediary. However, notice to your attorney, real estate agent, accountant or similar persons acting as your agent is not sufficient.

Replacement properties must be clearly described in the written identification. In the case of real estate, this means a legal description, street address or distinguishable name. Follow the IRS guidelines for the maximum number and value of properties that can be identified.

The second limit is that the replacement property must be received and the exchange completed no later than 180 days after the sale of the exchanged property or the due date (with extensions) of the income tax return for the tax year in which the relinquished property was sold, whichever is earlier. The replacement property received must be substantially the same as property identified within the 45-day limit described above.

Are there restrictions for deferred and reverse exchanges?

It is important to know that taking control of cash or other proceeds before the exchange is complete may disqualify the entire transaction from like-kind exchange treatment and make ALL gain immediately taxable.

If cash or other proceeds that are not like-kind property are received at the conclusion of the exchange, the transaction will still qualify as a like-kind exchange. Gain may be taxable, but only to the extent of the proceeds that are not like-kind property.

One way to avoid premature receipt of cash or other proceeds is to use a qualified intermediary or other exchange facilitator to hold those proceeds until the exchange is complete.

You can not act as your own facilitator. In addition, your agent (including your real estate agent or broker, investment banker or broker, accountant, attorney, employee or anyone who has worked for you in those capacities within the previous two years) can not act as your facilitator.

Be careful in your selection of a qualified intermediary as there have been recent incidents of intermediaries declaring bankruptcy or otherwise being unable to meet their contractual obligations to the taxpayer. These situations have resulted in taxpayers not meeting the strict timelines set for a deferred or reverse exchange, thereby disqualifying the transaction from Section 1031 deferral of gain. The gain may be taxable in the current year while any losses the taxpayer suffered would be considered under separate code sections.

How do you compute the basis in the new property?

It is critical that you and your tax representative adjust and track basis correctly to comply with Section 1031 regulations.

Gain is deferred, but not forgiven, in a like-kind exchange. You must calculate and keep track of your basis in the new property you acquired in the exchange.

The basis of property acquired in a Section 1031 exchange is the basis of the property given up with some adjustments. This transfer of basis from the relinquished to the replacement property preserves the deferred gain for later recognition. A collateral affect is that the resulting depreciable basis is generally lower than what would otherwise be available if the replacement property were acquired in a taxable transaction.

When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

How do you report Section 1031 Like-Kind Exchanges to the IRS?

You must report an exchange to the IRS on Form 8824, Like-Kind Exchanges and file it with your tax return for the year in which the exchange occurred.

Form 8824 asks for:

• Descriptions of the properties exchanged
• Dates that properties were identified and transferred
• Any relationship between the parties to the exchange
• Value of the like-kind and other property received
• Gain or loss on sale of other (non-like-kind) property given up
• Cash received or paid; liabilities relieved or assumed
• Adjusted basis of like-kind property given up; realized gain

If you do not specifically follow the rules for like-kind exchanges, you may be held liable for taxes, penalties, and interest on your transactions.

Beware of schemes

Taxpayers should be wary of individuals promoting improper use of like-kind exchanges. Typically they are not tax professionals. Sales pitches may encourage taxpayers to exchange non-qualifying vacation or second homes. Many promoters of like-kind exchanges refer to them as “tax-free” exchanges not “tax-deferred” exchanges. Taxpayers may also be advised to claim an exchange despite the fact that they have taken possession of cash proceeds from the sale.

Consult a tax professional or refer to IRS publications listed below for additional assistance with IRC Section 1031 Like-Kind Exchanges.

U.S. Foreclosure Rate Up 57% from Last Year

According to an article by Alex Veiga, the foreclosure rate is up an astounding 57% from this time last year. Florida had 30,178 homes on the foreclosure track, up about 158 percent from a year earlier and down 3 percent versus December, RealtyTrac said. What does this mean for the market? Well, in my opinion, a stealthy investor will make his mark in this sort of downturn. Contact me today so we can find a foreclosure property for you make an offer on well below market value. If the property has equity and the original purchase price of the property is below the market value, then all the bank is concerned about is recouping their investment in the loan.

Through the process of a short sale, the buyer's offer will be considered by the bank as the title holder to the property. If your offer is reasonable, then the bank will sell you the property so they don't have to worry about it. Banks don't want to invest in property, they want to lend money and make money on the interest. You, on the other hand as a buyer in the real estate market, want to make the purchase for the purpose of capital gains, tax benefits and rental income or residence. Contact me today at (786) 371-4431 so Keyes and our over 80 years of experience can help you get the most out of this rapid rise in foreclosures.

Harris W. Gilbert
(786) 371-4431

Crist to Combat Florida Foreclosures

Here is an interesting snippet from an FAR email...

CRIST AND HOPE

Gov. Charlie Crist announced a new program to combat the rising problem of foreclosures, the Florida Home Ownership Promotes the Economy (HOPE) Task Force. Crist appointed 2007 FAR President Nancy Riley to the 13-member group, which will bring together experts in the mortgage and banking industries, as well as consumer advocates and policy experts, to review Florida’s foreclosure rate and develop an action plan. “Last year one out of every 95 households experienced foreclosure in our state with filings up more than 275 percent over the previous year,” says Florida Chief Financial Officer Alex Sink, one of the committee members. “Working with the Governor’s HOPE Task Force, my office will be focused on identifying solutions to help families work through the often confusing and difficult process of retaining their homes.” The task force will meet four times – March 3, March 19, April 2 and via conference call on April 9. Task force recommendations will be presented to the governor, Speaker of the House and President of the Senate by April 18. Crist appointed Lt. Governor Jeff Kottkamp to serve as chair.

While it appears that the rising foreclosure rate has been identified as a problem, and several of the top people in the industry will be working together to combat this issue, how will they be able to get around the inflated housing values? Only time will tell, but at least Crist is being proactive.

HWG
786 371 4431

Million Dollar Housing Market Stays Strong

The real estate fallout hasn't effected the top 10 percent of buyers. Most of the higher end properties are owned by people that haven't had to deal with foreclosure issues. Also, the top end of the population still has plenty of cash reserves and high enough credit scores that the mortgage crunch won't hinder their ability to get loans and make purchases. However, the interest rates have climbed to their highest level in 7 weeks to over 6 percent on 30 year loans. The heightened fear of inflation has the public worrisome the rates may continue to climb. Here is an interesting snippet from today's FAR news and events.


The sweet spot for bargains

Still Celia Chen, director of housing economics at Moody’s Economy.com, said the top 10 percent of the real estate market in terms of home price is doing better than the lower end of the market, which is impacted more by the credit crisis. Prices can be more sticky on the top end because “owners of very high-end homes can wait longer – they don’t have to accept a lowball price,” Chen said.

JoAnn Roberts of Coldwell Banker Residential Real Estate in Pinecrest said million-dollar homes in her area are doing much better than both the lower-priced homes and mansions at the top of the market. She said builders created an oversupply of $3 million to $4 million homes. Contracts are falling through on the lower end of the market because buyers are having trouble qualifying for loans, she said.

The Karsentis say they’re buying now because their family is growing, they love the home, and they know it’s impossible to time the real estate market.

“You can’t help but look over your shoulder and think there might be other opportunities down the road,” he said. “But though it’s difficult to sell at the peak, it’s also difficult to buy at the trough.”

I think the bottom line is, there is never a "perfect" time to buy. If you find the right deal and your ready to make an investment, there is no time like the present for your cash to start earning cash for you.

HG

Slow Home Sales Up North has Effect on Florida's Growth

The housing bubble burst in states such as Ohio, New York and other states that people traditionally migrate south from has had a direct effect on the State of Florida's growth. Slow housing sales have restricted people's ability to move. People aren't able to sell their houses due to the combination of negative amortization, lack of willing buyers and inflated expectations of listing prices. In a recent Florida Time Union article it was "estimated only 35,000 more people moved into the state than moved out in the 12 months that ended in July. That was less than a fifth of the average yearly number since 2000."

What does this mean? Well, the normally thriving Florida housing market is reliant upon new people moving to the state. Will this trend last forever? It's unlikely! As history has taught us, the housing market runs in cycles. Once the sub prime bubble effect wears off and homes return to reasonable pricing, the housing market will come back. People from the north will be able to sell their houses or possibly be forced out of them due to foreclosure. Those people will flock to the sunshine state and our population will grow more substantially as that occurs. The bottom line is Florida's market is effected by the rest of the nation's housing lull, but it is only temporary.

Contact me today to discuss your housing issues at (786) 371-4431.

Harris W. Gilbert
harrisgilbert@keyes.com
www.hwgmiamirealestate.com

HWG Miami Real Estate & Keyes

Over the course of time this blog will serve as an informational outlet for Miami real estate information. Right now is a changing time in the Miami market. The residential market is in flux with many properties in foreclosure and more to come. It's a good time to swoop down and snag a property in financial distress as there are many good deals out there.

As for the commercial division, Keyes has already serviced well over 50 million dollars in transactions in 2008 alone, and it's still February! If you have money to invest, it makes sense to find an investment property. Not only will you see a direct return on your cash from rental dollars, but as you build equity you have the potential to make the strongest return for your money.

Contact me today to find a property in the Miami area today. Ask me about the real story, so I can show you how your property WILL make money.

Harris W. Gilbert
Keyes Commercial Division
(786) 371-4431