By Patrick McCarran

With the recent upswing in homes values we have realized a growth in equity as well. This leaves many owners thinking that they may be stuck in an investment property? Whether you bought it as an investment or it was an owner occupied that went past you 3 year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state? Possibly you would like to combine many properties into few or few into many? The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a third party for the exchange. This does not mean a title or escrow company. By definition you can not have any direct control over the funds, which is not just in your pocket but anywhere within your reach

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal. Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set time frame for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE you close and ideally before you place the property for sale.

There are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property. An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor/Broker and can be reached at (925) 899-5536 or www.CallPatrick.com. Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchisee of BHHS Affiliates, LLC. Equal Housing Opportunity.

Delta Association of Realtors 2015 Officers and Directors. (L-R) Cecily Tippery, Lori Ogorchock, Rena Provencio, Monica Malcuit, Jodi Marfia, Errol Mooney, Mary Jane Dukellis, Ron Keefer, Angela Johns, Ralph Garrow, Denise Stewart, John Canning and John Bedford. (Not pictured: James Britto, who was installed as 2015 President separately.) Photo by Rick Felix

APRIL 13, 2015 • ANTIOCH, CA The Delta Association of REALTORS® welcomed 2015 President James Britto and the association’s 2015 officers and directors at their installation dinner dance, held January 16 at the Lone Tree Golf and Event Center, Antioch.

Officers installed were Errol Mooney, President Elect; Lori Ogorchock, Treasurer; Ron Keefer, Immediate Past President; and John Bedford,Secretary. Members of the Board of Directors are John Canning, Mary Jane Dukellis, Ralph Garrow, Angela Johns, Monica Malcuit, Jodi Marfia, Rena Provencio, Denise Stewart, and Cecily Tippery.

President Britto’s 2015 theme is The Best is Yet to Come. “I truly believe that we have stabilized our markets, and that we have weathered the storm. We have an opportunity to rebuild the trust and restore the dream of homeownership in our communities and show that REALTORS® are still trusted advisors and civic leaders,” he said.

For more information or for interview opportunities, contact John Bedford, Executive Officer, at johnb@deltaaor.com or 925 757 8283 or visit www.deltaaor.com.

By Patrick McCarran, Berkshire Hathaway HomeServices

Spring is here and the market is fairly balanced. Although inventories are still very low, buyers are not feeling rushed. One thing that has not changed is that most of the homebuyers in today’s’ market are looking for properties that don’t require a lot of work or “turn key homes”. A home that says WOW to a buyer will still command top dollar and multiple offers.

Your goal is to get the buyer to say WOW at least three times. First when they pull up to the house, aka curb appeal, next as they walk through the house and lastly as they leave. To accomplish this inspect both inside and outside the home. Make a list of repairs or upgrades include the little things and the larger things. Traditionally the staples for increased value are a fresh coat of paint on the walls, doors, and trim. Paint the front door or at minimum give it a good cleaning. Power wash the sidewalks, entry and driveways, add some fresh mulch around landscaping. Organize the closets and cupboards so they don’t looks stuffed.

Take a look at the light fixtures, the bathroom and kitchen faucets. Repair dripping faucets and drains that aren’t operating or maybe they need updating. Think about upgrading to granite prices today are low and return is high. This is a great opportunity to update with minimal cost and excellent return. Remember it is often the little things such as burned-out bulbs, broken sockets or switches and loose railings. Replace torn screens, broken fencing and put a fresh coat of stain on the fences and the deck.

I recommend hiring a professional home inspector to thoroughly and impartially evaluate the property. A standard report will review the condition of the home’s heating system, central air conditioning, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows and doors, the foundation, and visible structure.

By obtaining the pre-inspection it avoids any surprises and allows you to review and prioritize the list of repairs.

Staging is an excellent way of showcasing the positive attributes of your home to maximize return. This does not necessarily need to be a full blown redecorating of your home but can be as simple as the need to de-personalize the home. This does NOT mean taking down and hiding every personal picture but it does mean to minimize. Start packing that rare clown collection or the special teddy bear room. What may be “charming” to the seller may seem off-putting to a prospective buyer. The basics of staging are neutral but not plain, less is definitely more, let the light in, and remember to review all the rooms.

A home in good condition demonstrates pride of ownership. Taking the time to give your home a tune up and make it say WOW to a buyer this will go a long way in making sure that you get the most return out of your home. Please feel free to contact me for a free consultation and to help you develop an action plan.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com.

© 2015 Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchiseeof BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire HathawayHomeServices symbol are registered service marks of HomeServices of America, Inc.®Equal Housing Opportunity. Information not verified or guaranteed. If your home is currently listed with a Broker, this is not intended as a solicitation

By Patrick McCarran, Berkshire Hathaway HomeServices

An offer has been accepted and a closing date has been set. Now the home is about to go through escrow. But what does that really mean? The following are answers to some of the most commonly asked questions about escrow and the escrow process.

What is escrow?

Escrow is a process that begins when the offer papers are signed by both parties and ends when the loan is approved and both the buyer and seller have fulfilled all the necessary requirements. For instance the escrow company will obtain instructions from all parties such as the lender, the seller and the buyer. Once these instructions have been met or completed then the escrow company will redistributed to the involved parties such as the buyer will receive title or ownership of the property, the seller will receive funds, the sellers lender with be paid off and the buyers lender will receive loan documents that the buyer has agreed to repay.

What is an escrow holder?

The escrow holder is a neutral third party agent of the principals—buyer, seller, lender, and borrower—which facilitates the transfer of ownership by ensuring that the terms of the transaction are completed. This includes safeguarding all funds (including the buyer’s deposit) and documents. Once all the details have been settled, the escrow holder disburses the funds and documents to the appropriate parties.

What does the escrow have to do with items that must be done to the property before it is sold?

Escrow is also a process. The escrow company keeps track of various terms and conditions throughout the term of the contract and acts as an enforcer for both sides insuring that contract terms are honored. The escrow holder keeps track of obligations of the seller or buyer. For example, if the seller is required to supply a termite inspection, the escrow holder would make sure it is fulfilled before any funds are transferred to the seller. Findings in the termite inspection report must be corrected on or before the close of escrow.

How does the escrow company interact with the title company?

The escrow holder receives a complete ownership history of the property and any liens on record in the preliminary title report. Anything that is out of the ordinary, such as condo liens, judgments, etc., against the buyer and seller must be clarified prior to close of escrow.

Why does the escrow process take so long?

The escrow process can be any number of days depending on what is agreed upon between the buyer and the seller. To assure a timely closing, you can check with the escrow holder on specific items that will help move the process along. For example, the buyer should do things like inform the escrow holder of the name and phone number of his or her insurance agent as soon as possible. The homeowners insurance policy needs to be ordered early, so verification can be made with the lender. The lender will not fund a new loan without a homeowners policy. If there is a delay, the escrow process may be delayed. It also helps to make sure that the funds provided are “good” because the escrow will only close on cleared funds. You want to consider a more secure form of payment, rather than a personal check, which can take up to a week to process.

What happens with the check I give to the escrow company?

Most buyers think that their check will not be cashed until the close of escrow, but that is not the case. The check is cashed by the escrow company immediately, and held in a trust account. If anything out of the ordinary is to be done at the close of escrow with the seller’s proceeds, the escrow holder must be notified. A signed amendment is required for wiring funds or splitting proceeds.

If you have questions about the escrow process, confer with your real estate professionals who can help provide you with more detail with this or any other home buying or selling subject..

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com.

© 2015 Berkshire Hathaway HomeServices Drysdale Properties an independently owned and operated franchiseeof BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire HathawayHomeServices symbol are registered service marks of HomeServices of America, Inc.®Equal Housing Opportunity. Information not verified or guaranteed. If your home is currently listed with a Broker, this is not intended as a solicitation

5109 Lone Tree Way Suite A

Approximately 1650-1690 SQ FT

Four Private offices\Rooms

Lobby with 6-8 L-shaped Desks

Kitchen room

Ladies and Men restrooms

Contact: Najib Zafari

Phone: (925) 209-7685

By Patrick McCarran, Prudential California Realty

The mortgage and debt reduction act has been extended but only through the end of the year. This means you have to close by December 31, 2013. This is important because without it you may be liable for income tax on the forgiven debt whether you short sale or later go into foreclosure. If you are struggling to make ends meet and have negative equity in your home a short sale can help you get a fresh start. Get out from the burden of a cumbersome mortgage payment and toxic asset with negative value. Start fresh and in as little as three years buy a new home with a manageable payment and start re-build equity and wealth.

What about a modification? Most lenders are now offering modifications to homeowners in distress. These are often more of a temporary solution as the banks seldom offer principal reductions. Usually the bank will offer to lower you payment over a fixed period of time. The problem with these terms is that without a principle reduction you are not building equity. In today’s market where a homes value may be upside down or have a negative equity, projections show it would take years just to break even on the balance of the loan. This makes your situation like a long term lease.

Foreclosure or simply walking away from the home is another option. California is a non-recourse state and has what is called a one action rule which basically states that if your homes is foreclosed and sold by the trustee that is the only recourse for the lender. Which means, generally speaking you can walk away with little or no legal consequence.

However if you have a second loan it could very well be a recourse loan which means the lender can, and most likely will pursue other assets and wages. A short sale will prevent this. If you are considering a default I highly suggest you look into a short sale an option. Choosing a short sale will put you back in control of your life and when you need to move. Because a short sale is perceived as a proactive choice by the borrower the credit compiling agencies tend to score it higher than a foreclosure or a deed-in-lieu.

I would always advise my clients to seek advice from an attorney under bankruptcy protection a well. Many homeowners have incurred a substantial amount of debt in this economy and a bankruptcy may be a good option to help you afford to keep your home by eliminating burdensome debt. Although legally you may not need to pursue a short sale after the bankruptcy, in regard to credit building it is still a good option.

Let me be clear, I am not advocating to anyone to ignore their financial obligations. What I am saying is that you should look at your own situation and make the decision that is best for YOU and your family and not the bank.

Take control of your situation and call an experienced Short Sale agent today to discuss and compare your options.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536 or www.Callpatrick.com. Prudential California Realty is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

By Patrick McCarran, Prudential California Realty

Inventory is at an all time low. I can almost count the available homes on one hand. With values on the rise it may be an excellent time to put your house on the market and make that move you have been delaying. There are several contributing factors that account for the current lack of inventory. The primary reason is that a major source of homes has been through the banks either as foreclosures or investor flips. This past year the banks have significantly lowered the number of homes making it on the open market largely due to an increase in modifications as well as an increase in the willingness to approve short sales.

While inventory has been scarce buyers have not. East Contra Costa is as most of us here realize an attractive area. It is centrally located to the North Bay as well as the South Bay and also the Sacramento area and the Central Valley. This makes it desirable to a number of different types of buyers and demographics. The market has seen a steady flow of investors continuing to buy homes, often multiple purchases, In addition there has been a great deal of second home buyers, individuals wishing to plan for an eventual move at retirement or a future career change. First time home buyers who for the last few years have been largely on the sidelines are also steadily increasing.

A major contributing factor to the current market is the fact that money is cheap. With interest rates at historic lows return on investment is at historic highs through monthly return as well as future appreciation, from an owner occupied point of view it is often significantly cheaper to own than to rent.

What does the future hold? That is the million dollar question. In my opinion interest rates will definitely rise and this will slow the market, I do not believe we will see a crash or deflation but a nature slow down. The uncertainty of the future is what makes today the right time to sell whether you are upside down or have equity.

If you would kike a current market analysis of your home or need any information concerning real estate do not hesitate to call or contact me directly.

Patrick McCarran is a local Realtor and can be reached at (925) 899-5536 or www.CALLPATRICK.com. Prudential California Realty is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

By Patrick McCarran, Prudential California Realty

With new home construction going strong again, you can avoid the bidding wars in the resale market. Although you may not think it is necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. Think again!

The builder’s agent is representing the builder’s best interest. As your buyer’s agent a Realtor can guide you along the right path, smooth the rough places and help ensure you make a decision you can live with (and in) for many years. As your agent, the Realtor is representing your best interests.

Just as a real estate professional calls on experience and knowledge of an area to help buyers locate re-sale homes in a community, the same applies to guiding buyers interested in newly built homes to developments and communities that match their wants and needs. Your agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound. Your agent may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.

Your agent can assist you as you face hundreds of design choices and consider which upgrades provide the best value in terms of resale and whether to upgrade from an outside vendor. The upgrades, or options available, will vary from builder to builder and the choices you make will depend on personal decisions. Often a buyer can pay far less after the home is built by contracting with a third party but price is not always the only consideration you need to consider the convenience, cosmetic ramifications and if it is even feasible to perform after the home is built.

REMEMBER the builder will require your agent to accompany you on your first visit to the site. So let them shop with you, it is not an inconvenience to them it is there job.

By now, you should be convinced of a real estate professional’s value as you search for and purchase a newly built home. Still, here’s one more great reason to work with an agent—the builder pays the agent’s commission. You enjoy individual attention and support at NO cost to you. What a great way to start life in a new home!

Patrick McCarran can be reached at (899) 899-5536. www.PatrickMcCarran.com. Prudential California Realty is an independently owned and operated member of The Prudential Real Estate Affiliates, Inc. The Prudential Real Estate Affiliates, Inc. is a Prudential company. Equal Housing Opportunity.