Cherry Creek Properties LLC

Five Important Things to Know Before Closing

Dino Sarganis — Fri, 13 Jan 2012 04:54:06 +0000

Blog Post: Briana Tursick, Chicago Title

This information is relevant to all Buyers and Sellers of real estate. These are five important issues to know or be familiar with prior to a closing. Closers hear a lot of questions and comments about the transaction process at the closing table, but these are the most common issues that arise at this crucial time from both Buyers and Sellers.

1. Know and understand tax proration. It is very important to understand that Colorado property taxes are always paid in arrears, or after the year the property was assessed. To calculate your tax proration, divide the total amount of taxes for the calendar year prior to closing by the number of days into the year of the closing date to get the tax amount per day. That tax rate is then multiplied by the number of days from January 1 to the day of closing. The resulting amount is then credited to the buyer.

2. Review your HUD and Settlement Statements. Be sure to review these documents with your agent before closing. These forms itemize the services provided to you in buying/selling your home and how much each costs. Such expenses include items connected with the loan, escrow account deposits, commissions, title charges, etc.

3. Be prepared to bring certified funds and your ID. Once you have reviewed your HUD and Settlement Statements prior to closing, you will now know if you owe any additional fees at the closing table. Title companies will only accept certified funds, so a trip to the bank prior to the closing is necessary. It is also important to bring your ID for proper identification to all parties.

4. Sellers – be familiar with the tax documents. Sellers be aware of the tax documentation you will need to sign the 1083 – Information with Respect to a Conveyance of a Real Property Interest, the IRS form 1099 – used to report income, and to calculate the amount of taxes owed to the federal government, and finally, FIRPTA – Foreign Investment in Real Property Tax Act – a taxation law that imposes tax on foreign persons selling real property in the US.

5. Buyers – know your loan terms. Buyers know your loan terms before coming to the closing. There should be no surprises from your lender and you should be aware of the charges and fees in your loan package. Your closer will not be able to change these for you and will delay closing if items in the loan package needs to be changed.

If you follow these points and communicate well with both your agent and lender, your transaction is sure to close smoothly!

6 rules of a 1031 Exchange

Dino Sarganis — Fri, 13 Jan 2012 04:40:31 +0000

Blog Author: Danita Vigil, Investment Property Exchange Services, Inc.

Attention Real Estate Investors!! Is it possible that you are considering selling your investment property but want to actually stay in the real estate game and purchase another property, perhaps even a vacation home? Of course you know the tax implications that follow…there are not just one tax but there are three taxes to pay if you don’t do a Section 1031 Exchange…The Capital Gains tax is 15%, the State of Colorado is another 5%, and the Recapture of Depreciation is another tax that needs to be calculated. This could be a potential 30% blended rate of taxes! A 1031 Exchange is the deferral of capital gains taxes that could save you thousands of dollars. I always recommend you speak with your CPA or tax advisor and/or your attorney before determining if a 1031 Exchange is the right scenario for your real estate transaction.

I also want to define for you the term “Like-Kind Exchange” before I go on to share with you the 6 Rules of 1031 Exchanges. “Like-Kind” is somewhat of a misnomer. You do not have to reinvest in commercial real estate if that is what you are selling. The same applies with residential property or raw land for instance. The term “Like-Kind” really just refers to real estate in general so feel free to exchange the kiddie condo for the commercial strip mall or even the vacant lots for a single family rental home.

The “6 Rules of a 1031 Exchange” is a simple way to determine if the sale of your investment real estate qualifies and is in fact exchangeable.

Rule #1 –What you sell and What you buy or Exchange into must be “Held for Investment” or “Used for Business” for usually 1 year and 1 day. The Internal Revenue Service tends to views this length of time as a long term capital investment vs. a short term capital investment which is why a Fix & Flip generally does not qualify.

Rule #2 – 45 Day ID Rule – The 1031 Exchange actually starts on the day of closing for the sale of the “Relinquished Property”. You have exactly 45 calendar days to identify in writing up to 3 potential “Replacement Properties”.

Rule #3 – 180 Day Rule – You have exactly 180 calendar days from the date that you closed on the “Relinquished Property”, to close on and complete the purchase of your new “Replacement Property”. This time line runs in conjunction with the 45 Day timeline for identification.

Rule #4 – QI or “Qualified Intermediary” Requirement- The IRS mandates that you use a QI or Accommodator, and it cannot be your personal attorney or your accountant. The IRS also does not allow that you as the seller, touch the money in any way during the exchange.

Rule #5 – Title Requirement – You must not change how you hold title prior to the exchange or after the exchange for at least 1 year and 1 day or you may invalidate it. This applies to both the OLD property that you are selling and the NEW property that you are buying. There are some exceptions, such as disregarded entities.

Rule #6 – Reinvestment Requirements or Equal-or-Up Rule-To have ZERO tax implications come tax time you must buy equal or greater, AND you must reinvest all the cash. Keep in mind also that in order to accomplish this you may even buy more than one property. If you do buy down then you will have to pay the tax on the difference and only that portion is taxable. The commonly used term for that is “boot”. You could also elect to keep some of the cash and that portion would be taxable as well.

When determining which Qualified Intermediary or 1031 Exchange Company to use please make sure that the funds are never comingled and that the company that you choose can provide you the Safety and Security of your Exchange funds entirely.

Happenings in Parker Colorado!

Dino Sarganis — Fri, 13 Jan 2012 04:34:08 +0000

Blog Author: Sara Hankenson, Quality Service Certified Realtor®, Cherry Creek Properties, LLC

A Subway shop is opening in the Stonegate shopping center on the North East corner of Lincoln and Jordan, a Hampton Inn is being built at the South West corner of I25 and Lincoln and if you frequent Park Meadows Mall you’ll be glad to hear the former Bennigan’s Restaurant will be opening soon as a Bellco Credit Union.

Click here for local coupons you can use here in Parker.

Stonegate residents be aware, recently there have been multiple break-ins in our wonderful neighborhood. Please make sure to lock your doors and windows, leave exterior lights on at night and help your neighbors out, too, by staying aware of your surroundings at all times. The burglars are striking during the day and letting themselves in via an open door or window. Please be safe!

The Stonegate Real Estate market is amazing right now! Inventory is the lowest it’s been in years. On the fence about selling your home? Now is the perfect time; low inventory = more money in your pocket!

Copper Mountain is offering its amazingly popular Snow Day Pass. Anytime 4 or more inches of snow falls during this ski season, you’ll ski for free! You can purchase your pass here.

The Villages of Highlands Ranch- Lower Maintenance Patio Homes in a Great Community

Dino Sarganis — Mon, 12 Dec 2011 19:16:42 +0000

Blog Author: Peggy Dursthoff, Realtor®, Cherry Creek Properties, LLC

In this economy with everyone talking about reducing energy consumption, cutting back on costs, taking care of what they already have and tightening the belt; home ownership costs for our young professionals, as well as our empty nesters, may seem out of reach. Not only are there purchase costs to consider but then the time and money it will take to properly take care of and maintain a property, may seem overwhelming to many.

That is, of course, until you visit the patio homes at the Villages of Highlands Ranch. These free standing homes have small, fenced yards and are perfectly located between Lucent Blvd and Highlands Ranch Parkway. This patio home community is an easy walk to the HighlandsRanch Town Center, Westridge Recreation center and Eldorado Elementary School. . This cute neighborhood built by Oakwood between 1996 and 1997 boasts 356 unattached patio homes, with tile roofs, in 22 cul-de-sacs, and boasting its own small open park area. It also has its own outdoor pool and hot tub which are open from Memorial Day to Labor Day.

What makes these homes so delightful is that they all come with 2 + bedrooms, 1200-1700 sq ft, a small yard, two car attached garage and a basement. They aren’t too large, but offer plenty of room for someone who wants a small outdoor area but doesn’t want the hassle of snow blowing the driveway, taking care of a front lawn, or painting the fence ( all items cared for by the highly active HOA for the Villages community). Pricing for the homes ranges from low to mid 200’s and even in these tough economic times, the homes have held their value. Plus for those do-it-yourselfers, the Home Depot is right down the street at the Town Center. This patio home neighborhood attracts young professionals, families, and empty nesters and is extremely pet friendly with 5 dog bag dispensers spread tastefully throughout the community. So… if a house with lower maintenance, a convenient location, and a small yard define your dream home, then it is time to schedule an appointment to see some homes at the Villages at Highlands Ranch.

Here are the active listings in this Highlands Ranch Patio home community- the Villages at Highlands Ranch!

Disclaimer and Terms

A gated community in Highlands Ranch- Backcountry

Dino Sarganis — Mon, 12 Dec 2011 18:51:52 +0000

Blog Author: Brian DeLuccio, Realtor®, Cherry Creek Properties, LLC

Many people move to Colorado seeking natural beauty and quality of life. It can be a challenge to find a new home in Colorado that has maintained the natural beauty of the State and lives up to the ideal life they are seeking. In the Highlands Ranch gated community, Backcountry, the developers have managed to keep the natural beauty of the area while building sustainable homes in what many deem some of Colorado’s most beautiful natural areas. In the planning stages, the developer committed to protect the environment and leave room for wildlife to live with residents, unharmed. This commitment was met and is carefully managed to benefit the residents as well as the wildlife.

As a resident of the community, you will have access to the South Rim of the Backcountry Wilderness which is a haven for wildlife and provides winding trails and parks to enjoy. Residents of Backcountry’s gated community also have access to the Sundial House, a gorgeous lodge that overlooks the wilderness area. This is a meeting point for many locals with a swimming pool and lounge, complete with barbecue grills.

If protecting the environment and co-existing with wildlife is what you are seeking then The Highlands Ranch Backcountry gated community is the place for you. The gorgeous scenery all around and private wilderness combined with security for your family will assist you in leading the life you are seeking.

Living in the Highlands Ranch Backcountry community gives you the opportunity to experience Colorado’s natural beauty and wilderness… right in your own backyard!

Here are all of the active listings in Backcountry!

Highlands Ranch

#1034685

$595,000

3 Bedrooms, 3 Baths

Hybrid Home Brokers

Cherry Creek Properties LLC

Five Important Things to Know Before Closing

6 rules of a 1031 Exchange

Happenings in Parker Colorado!

The Villages of Highlands Ranch- Lower Maintenance Patio Homes in a Great Community

A gated community in Highlands Ranch- Backcountry

Distressed Home Sales in Parker’s Stonegate neighborhood

Has the Denver Market hit bottom?

Should I get a Home Warranty when I buy my house?

Should Radon Testing be a part of your Colorado Home Inspection?

Centennial at Riverwalk- a 55+ community in Littleton