Edina Home | Edina Homes
December 2012

Avoiding Unexpected Expenses – Might Be Something to Consider

December 30, 2012 by · Leave a Comment 

It’s common for sellers to consider offering and buyers might find it an incentive, but a growing number of homeowners are purchasing the home warranties themselves to limit the unexpected expenses of repairs and replacements.

A home protection plan is a renewable service contract that covers the repair or replacement of many of the components in a home. Some homeowners especially like the convenience that it organizes a qualified service provider as well as the cost of the items.

There are a variety of companies that offer home warranties and the coverage may differ but the majority of things will include heating, air conditioning most built-in and some free-standing appliances, as well as other specific items. Additional specific coverage may be available for other things like pool and spa equipment.

Some investors are even placing this coverage on their rental properties to limit the amount of maintenance repairs during the year. It is a viable alternative to managing the financial risk and the stress dealing with unexpected expenses. There are a number of options from utility providers as well. I have them for myself and on a rental. Call me and I’ll let you know what I am doing.

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

1031 Exchanges

December 26, 2012 by · Leave a Comment 

1031 Exchanges-MAY be the way to grow substantial real estate wealth by deferring taxation and compounding equity

1031 exchanges allow you to sell an investment property and exchange it into a different property. If done CORRECTLY, you will not report the transaction as a taxable sale. Instead, the exchange allows you to defer taxation until a future date. For more information, you can call me. I will direct you to a number of resources that will give you information. One such resource is http://www.ipx1031.com/. From their site, you can register for webinars that explain the process-both introductory and advanced. Part of the process will be disposing of your existing property. You will also need to find qualified replacement property(ies). Let me help you coordinate this process and your exchange. If the process is done incorrectly, you will have a “sale” not an “exchange”. Don’t risk something so important by working with an inexperienced exchange agent. I have successfully helped numerous clients complete their exchanges-let me help you TOO.

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

To Stage or not to Stage a home?

December 23, 2012 by · Leave a Comment 

It is always a question I get when I list a home-“what should we do to present our home in the best light” ? Everyone wants to sell their home faster for the highest possible price. One way to do that is to take some time, and “stage” a home. What does that mean? It can mean many things. It can be as simple as cleaning up or removing clutter to make a room bigger. It can also involve a computer generated simulation with one of our technology providers-OBEO. The attached guide will help you evaluate some of the components of staging. Let me know when I can help YOU.

Down Payment Assistance For Home Buyers In Dakota County

December 21, 2012 by · Leave a Comment 

There is a program for first time buyers in Dakota County that just obtained additional funding for mortgage financing. There is 30M available which is projected to help out approximately 200 new home owners. Here is a link to the site where you can learn more about the program– http://dakotacda.org/homebuyers.htm I can help you find your next home. If this program doesn’t work, there might be others. Let’s work together to find options to make home ownership in MN possible for YOU. Call me today to get going.

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

Have you been to this Website?

December 20, 2012 by · Leave a Comment 

Have you been to the website http://www.houzz.com ?

Talk about AWESOME! Check this site out for decorating and remodeling ideas. I will warn you that it is completely addicting. If you want, you can create your own idea book and utilize the selections for something of your own. I KNOW you will love the site. Have fun.

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

Clip Syndicate – The Coolest Thing

December 18, 2012 by · Leave a Comment 

I just found this on another blog. I hope you like it. It syndicates and collates information around a topic. Check it out-this one is about real estate.

What is the Velocity of Money and How Does it Impact Home Loan Rates?

December 17, 2012 by · Leave a Comment 

By John Mazzara NMLS #332556
Venture Development NMLS # 373115

If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home.

Here’s why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren’t spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that’s good for home loan rates. That’s because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there’s an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result.

Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact me to help you find or finance a new home

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

New Landlord Resource-Learning Opportunity Online

December 17, 2012 by · Leave a Comment 

How COOL is this? Lutheran Social Services of Minnesota has created a 90 minute class online that consists of various video modules and certificate upon completion—for a slightly extra cost. The class is very inexpensive either $25 or $40. It is a great deal. They have lots of experienced people who have created the class. You even will get a discount on licensing your rental property for the first time . if you a new landlord in Minneapolis and decide to get the certificate, then you will submit a copy when licensing. Even though I’ve been a landlord for 26 years, I am going to take the class. I can always learn something new. Here is the website address- http://www.GetRented.org?

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

Looking for a home in Minneapolis or St Paul but are unsure about which area to look?

December 15, 2012 by · Leave a Comment 

Many times people will say that they want to live in either Minneapolis or St Paul. The problem for most people is that they know where they want to live within each of the two cities, but don’t know how to make a specific search. The Northstar MLS system has devised a solution. Now, you can search by community/neighborhood. See the sheets to identify the area you might want to live. Once you’ve decided, give me a call and let me set up a custom search for you based on your selected areas and other parameters. Together, we can make it happen.

MLS districts for Minneapolis and St Paul.pdf

Ever wanted to win a million dollar house?

December 14, 2012 by · Leave a Comment 

Well, now you can. It costs $100 a raffle ticket. Money goes to support charities. One of these charities is Operation Support Our Troops. Go to their website, see what they’re all about. You can purchase a raffle ticket from their site. http://www.osotamerica.org

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

RESULTS COMMUNICATORS TOASTMASTERS HOLIDAY MEETING

December 13, 2012 by · Leave a Comment 

Please come to our Holiday Party and learn about Chocolate making from an experienced “chocolatier”. Coffee and confections provided. Hope to see you there!

You and anyone you like are invited to attend. I think you’ll have fun and meet some new people. Free chocolate covered cherries and coffee will be provided. Meeting is this Thursday for 1 hour.

Age Of Aquarius Is Almost Upon Us-Age of Pisces Ends December 20th

December 13, 2012 by · Leave a Comment 

FHA to Cost Borrowers More In The Future

December 10, 2012 by · Leave a Comment 

FHA has announced a major change to its loan program which allows borrowers to cancel the mortgage insurance premium (MIP) when their unpaid balance reaches 78% of the original purchase price. While no specific date has been set for the change, sometime in 2013, new FHA loans will require the mortgage insurance for the life of the loan.

At existing rates, the monthly MIP on a $168,875 mortgage is $178.99 per month. Under the current rule with normal amortization, the MIP would no longer be required in 9 years and 9 months. However, under the new rule, it would last for the entire 30 year term.

They also announced that the annual MIP will also be increased from 1.25% to 1.35% at some point in the near future. HUD, the parent agency for FHA, is making the changes to restore the capital reserves of the program that are needed to fund failed loans.

People that can close a FHA loan before the change takes place will fall under the old rules for canceling MIP and the lower rates. Since no date was announced, it is not known exactly when the changes will take effect.

While this information will probably not make the evening news, it will have a big impact on borrowers planning to use an FHA loan. Please pass it on to anyone you know who might be considering purchasing or refinancing with a FHA loan. There may a conventional loan alternative-call me to discuss.

Sincerely,

RE/MAX Results

John Mazzara

7300 France Ave S #410

Edina, MN 55435

Off-952-929-2577

Cell-612-386-7027

Fax-952-928-3799

Google Voice- 952-491-0884

john@johnmazzara.com

http://www.MinneapolisStPaulHomes.com

Watch my Youtube video on how I sell a home:

http://www.youtube.com/watch?v=oz1zGDOXcoQ

RE/MAX real estate intro video at http://youtu.be/EJE_s67xIWI

NMLS # 332556

Six Sigma and YOU

December 9, 2012 by · Leave a Comment 

Ok, I know my blog is about real estate & mortgage, but during the past 6 months I have been in the Six Sigma Green belt, Six Sigma Lean, and now the Six Sigma Lean Black Belt program from Villanova. I want to share my results . First and foremost, let me say they have an excellent program. Secondly, I want to suggest that you consider adopting some of the Six Sigma and Lean ways of doing things in YOUR own life and business. You’ll be better off if you do. If you are concerned about doing a better job, being more efficient and reducing waste in any aspect of your life, then this information is for you. I was intrigued by the information and the application to my life and various businesses and have already started to apply it. I belief everyone could benefit from studying and applying some of the principals. If you have never been to SlideShare.net, you really should. It is like YouTube but with PPT presentations and pdf’s that are available for learning and sharing. Here is one on Six Sigma that you might enjoy.

(Buch) six.sigma.for.everyone from Héctor Mendoza

Contributing Factors on Rental Property

December 8, 2012 by · Leave a Comment 

Rental properties have four primary factors that contribute to a return on investment. Based on market conditions and investor strategies, the individual motivating factor can change for property owners.

There was a time when the benefit of tax savings to offset income from other sources was considered important to some investors. However, in today’s environment, they are more likely valued as incidental benefits.

Some investors expect appreciation to deliver the satisfactory results which can be reasonable over time if a reliable appreciation rate is used. Savvy investors today are using conservative estimates for long-term holding periods.

Leverage occurs when borrowed funds are used to control a larger asset. Positive leverage can actually increase the yield on an investment.

The fourth component that contributes to a property’s yield is the cash flow. When the rents are greater than the expenses of operating the property and servicing the debt, there is a positive cash flow. A property with a good cash flow doesn’t have to go up in value to justify the investment.

The combination of lower prices, incredibly low mortgage rates and rising rents are attracting investors to rental properties that include single-family homes in predominantly owner-occupied neighborhoods.

Even if you were to ignore the benefits of tax savings, potential appreciation and leverage, the attractive cash flows make rental property a very smart investment alternative. If you’re curious, contact me for more information.

Dripping Dollars – Time to Call the Plumber and Save $$$$

December 7, 2012 by · Leave a Comment 

Conserving water to be green while lowering your monthly bill to save green is a beneficial combination. Little things can contribute significantly to a large water bill.

* Leaky faucets can waste over 1,000 gallons a year

* Leaky toilets can waste 7,000 gallons a month

* A five-minute shower saves more water than a tub bath

* Water running while you brush your teeth or shave

* Sprinkler heads need to be adjusted to spray on the yard only

* Install a rain sensor on sprinkler system

* Pool equipment can be a hidden source of wasted water

A larger than normal water bill can be your first indication you have a leak. Then, you’ll need to track it down.

1. Turn off all the water faucets and appliances; don’t forget the ice maker.

2. Open the water meter, usually located near the sidewalk in the front of the house. You may need a water key that can be purchased from a home improvement store or possibly borrowed from a neighbor.

3. Locate the dial indicating water usage. It should not be moving since all of the water is off. If it is still moving, verify that you have turned off anything that might be using water.

4. If it appears to be still, make a mark with a Sharpie and wait 15 minutes. If the flow indicator has moved, you probably have a leak.

5. Now that you’ve confirmed that you have a leak, you may need help in locating it. A plumber or leak specialist may be able to help you track it down and repair it.

If you are in need of professionals to do things like plumbing, heating, and more—give me a call. Having been in the business for 26 years, I know a few people who are in the industry. Call me if you need a phone number or two.

What’s the Point? A brief discussion on “Points”.

December 6, 2012 by · Leave a Comment 

Pre-paid interest, sometimes called “points”, is generally tax deductible when a person pays them in connection with buying, building or improving their principal residence. When points are paid on a refinance, they are not a current deduction but have to be taken pro-rata over the life of the mortgage.

For instance, if $3,000 in points were paid on refinancing a 30 year mortgage, deduction of $100 per year is allowed. When the loan is paid off or replaced by refinancing again or the home is sold and the mortgage paid off from the proceeds, the balance of any un-deducted points may be taken in that tax year.

Your tax professional needs to be made aware of any of these situations so that he can accurately reflect the deduction in your return. Currently, the most common situation is where homeowners may be refinancing their home for the second, third or even fourth time. If there are points that have not been completely deducted, they need to be treated in the year of refinancing.

For more information, see points in IRS Publication 936 http://www.irs.gov/publications/p936/ar02.html#en_US_2011_publink1000229936 there is a section on refinancing in this publication. For advice considering your specific situation, contact your tax professional.

Disclaimer: This communication is provided to you for informational purposes only and should not be relied upon by you. RE/MAX Results is not a mortgage lender and so you should contact a mortgage broker or lender directly to learn more about its mortgage products and your eligibility for such products. Regarding specific blog postings, external links and any other information found on this site, neither John Mazzara nor RE/MAX Results assumes any responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner. John Mazzara and RE/MAX Results are not associated with the government, and our service is not approved by the government or your existing lender. Even if you accept this offer and use this site and/or our services, your lender may not agree to change your loan should you decide to pursue a short sale or any other change involving your loan or loan terms and conditions. If you should decide to engage our services in marketing your home as a short sale, there will be no up front cost to you and you may cancel our listing contract at any time. · Each Office Independently Owned and Operated

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