Thanks to the 4 Realtors on my team, our 5 person Client Care Team, and all our past clients, I am on the cover of the July 2022 Real Producers.
I am also happy we saved 320 sellers $4,532,220 in Real Estate commissions using our $3,500 Flat Fee Selling option.
Thanks to Chris Wirsing and the Real Producers Team too.
https://www.oahure.com/pdf/Jul_2022_Honolulu_Real_Producers.pdf#page=28
This chart shows two things well.
One is prices do not go up every year. After the sharp increase that peaked around 1991, you can see we went to 2003 before prices hit that 1991 price again, so over 10 years of prices not increasing.
Two is the current up trend is a lot steeper than it was back in 1991.
It will be interesting to see what happens next.
With a self-directed Solo 401k also known as “Solo 401k Real Estate”, the trustee of the self-directed Solo 401k can invest the 401k funds in many types of real estate investments (e.g., homes, commercial buildings, apartment buildings, land, mobile homes, etc.). All of these real-estate asset types may be held inside a solo 401k similar to stocks and mutual funds.
What is more, the Solo 401k rules permit the business owner to partner with his or her solo 401k when investing in real estate. This type of arrangement is commonly referred to as tenancy-in-common ownership.
The rules also permit for loans to a Solo 401k by a third-party (not the solo 401k owner or certain family members of the solo 401k owner) for investing in real estate. This is knows a debt financing or non-recourse loan. See definitions below.
The general steps required to make a real estate investment with Solo 401k are:
You as trustee of your Solo 401k will safe keep the following forms and documents in connection with the purchase:
Lastly, the above procedure assumes that you went through a solo 401k Provider to open a solo 401k that allows you as the business owner to serve as trustee of your own solo 401k investments instead of going through a custodian that has their own procedures and also safe keeps the real estate documents and as a result charges asset holding fees.
Tenancy-in-Common Ownership: allows you to buy real estate with personal funds and Solo 401k funds. Each will own a specific percentage of the property. As a result, the income and expenses associated with the investment will be proportionally shared based on the ownership percentage. This type of arrangement also permits you to invest your Solo 401k with family members such as your spouse or siblings. Again, the key is to adequately reflect each investor’s percentage of ownership on the paperwork and that the expenses and income are proportionally shared by each party to the transaction.
Non-recourse loan: affords your Solo 401k the option to take a loan from a financial institution or an investor for purchasing real estate. If the loan is not paid back by your Solo 401k as promised, the lender may take the Solo 401k-owned property used to secure the debt, but may not take recourse against any other assets of your Solo 401k. Simply put, your Solo 401k-related loan can never affect any assets other than those used to secure the loan.
Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>
Ordinance 22-6, effective March 28, 2022.
A seller of residential real property must provide the buyer a Short-term rental (STR) disclosure form stating whether or not the property may be legally used as an STR. If the seller discloses that the property being sold may not be legally used as an STR, the form need only be given to the buyer.
More details are at https://www.honolulu.gov/dppstr.
Wow, the price drops started fast.
The highest share of sellers on record dropped their list price during the four weeks ending June 12 as mortgage rates shot up to levels not seen since 2008 according to Redfin.
According to Mortgage News Daily, today’s rate hit 6.28%. I know that sounds high but check out the 18.53% rate in October of 1981.
Hopefully, inflation will start to go down without the radical increase in the interest rates that we saw in the 70s and early 80s.
Keep in mind we are more sensitive to rate increases now than back then as you can see from the chart below our rate has been very low for a long time, which drove the prices of homes high.
A class-action lawsuit is going forward against Coldwell Banker because of cold calling Realtors bothering sellers at home.
As a Realtor, I think this is a good thing.
I don’t like to be bothered by cold sales calls, and I think most people feel the same, so the idea that some Realtors ignore the do not call list and use automated dialers to call up to 300 people per hour never sat well with me.
Personally, I think Brokers should have banned this practice a long time ago, and maybe this lawsuit will help them make some needed changes.
The problem is it actually works, so even though they bother so many people they would actually find new clients, which is why they keep doing it.
Active Single Family inventory is up 39.8% from a year ago.
Single Family homes from $600,000 to $999,999 sales dropped 41.2% compared to one year ago.
Two red flags that are screaming this market is changing.