Author Archives: Kristal Kraft Denver Realtor

About Kristal Kraft Denver Realtor

Hi, I'm Kristal Kraft, the resident blogger here, posting real estate and Metro Denver area information since 2003! You will find me writing about things I feel are important in the home buying process. When it comes to buying and selling homes, there's so much to know. I enjoy providing that information to my clients so they can make decisions based on knowledge and actual fact. You'll find I'm more of a teacher than a salesperson. My services include: residential property sales, purchases, 1031 Exchanges, new home purchases, REO, foreclosures, short sales. So if you are in the market to buy or sell Denver real estate, tap into my knowledge, just call me. I welcome your call!

My Most Memorable Listing

1010 S. Elizabeth St. Denver Co It is a sad story, the owner who was an elderly man went to visit his daughter in Texas for the Thanksgiving holiday. He got sick and had to go to the hospital, He passed away. This daughter was so distraught she couldn’t deal with the property. So it just stood there.

Years later the daughter became ill and she too passed away, without a will. The house stood vacant still.

The local newspaper did an article about vacant homes in Denver. The article attracted an unscrupulous person who forged a handwritten will, claiming rights to the property. She even fooled a judge into giving her a PR letter. It was through this person I became involved. She called me to sell it.

I won’t go into the details because I prefer not to educate another crook. Bottom line we soon discovered the discrepancy in her story. I immediately ended my agency with her.

That was nearly two years ago. Since then I have connected with the rightful heir who has been working diligently to clear the title of the property so he can sell the estate.

The home is located on a million dollar plus street in a very desirable Denver neighborhood, Bonnie Brae.

No one has lived in the home for 26 years! The interior was left the way it was when the Dad left for Texas, all except for the 3 foot high stack of mail (mostly junk) that continued to be delivered through the mail slot.

After 26+ years we believe that most of the home’s systems are beyond their useful life. The home most likely will be scraped from the lot and another bigger, beautiful home will replace it. That’s what happens in this neighborhood.

I hope the neighbors will be happy, soon this lot will be developed into something that is worthy of the area. A chapter will end and a new one will begin.

Price: $475,000
MLS #2746542
Showings begin and end Sunday, March 29, 2015
Offers accepted up until March 31, 2015. Response on April 1, 2015 (no exceptions)
Home is sold “as is.”
Call your broker or call me for more information. smile emoticon

Moral of the story….Don’t die without a Will.

UPDATE:  We sold the house for $100,000 over asking price!  It was an exciting day with multiple offers thanks to the extensive marketing and promotion on the property.  I wish I had 15 more just like it, I could sell them all and no one would be disappointed!

About Kristal Kraft, Denver Realtor

Hi, I'm Kristal Kraft, the resident blogger here, posting real estate and Metro Denver area information since 2003! You will find me writing about things I feel are important in the home buying process. When it comes to buying and selling homes, there's so much to know. I enjoy providing that information to my clients so they can make decisions based on knowledge and actual fact. You'll find I'm more of a teacher than a salesperson. My services include: residential property sales, purchases, 1031 Exchanges, new home purchases, REO, foreclosures, short sales. So if you are in the market to buy or sell Denver real estate, tap into my knowledge, just call me. I welcome your call!

Real Estate Market Update for January 2015

Denver Real Estate Infographic

About Kristal Kraft, Denver Realtor

Hi, I'm Kristal Kraft, the resident blogger here, posting real estate and Metro Denver area information since 2003! You will find me writing about things I feel are important in the home buying process. When it comes to buying and selling homes, there's so much to know. I enjoy providing that information to my clients so they can make decisions based on knowledge and actual fact. You'll find I'm more of a teacher than a salesperson. My services include: residential property sales, purchases, 1031 Exchanges, new home purchases, REO, foreclosures, short sales. So if you are in the market to buy or sell Denver real estate, tap into my knowledge, just call me. I welcome your call!

Net Worth: A Homeowner’s is 36x Greater Than A Renter!

Net-Worth

Over the last six years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth.

Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.

Some of the findings revealed in their report:

  • The average American family has a net worth of $81,200
  • Of that net worth, 61.4% ($49,856) of it is in home equity
  • A homeowner’s net worth is over 36 times greater than that of a renter
  • The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

There are many reasons why owning a home makes sense, the Fed study shows that owning is still a great way for families to build wealth in America.

source: Keeping Current Matters

 

About Kristal Kraft, Denver Realtor

Hi, I'm Kristal Kraft, the resident blogger here, posting real estate and Metro Denver area information since 2003! You will find me writing about things I feel are important in the home buying process. When it comes to buying and selling homes, there's so much to know. I enjoy providing that information to my clients so they can make decisions based on knowledge and actual fact. You'll find I'm more of a teacher than a salesperson. My services include: residential property sales, purchases, 1031 Exchanges, new home purchases, REO, foreclosures, short sales. So if you are in the market to buy or sell Denver real estate, tap into my knowledge, just call me. I welcome your call!

Real Estate Mortgages – Before and Future

A snapshot infographic of mortgages

 

We’ve been enjoying low finance rates for quite some time now.  Predictions for this time next year are for higher rates.  This means less affordability for buyers and possibly less appreciation for homeowners.  Are you on the fence about buying/selling?  Now may be the best time to make that move.

About Kristal Kraft, Denver Realtor

Hi, I'm Kristal Kraft, the resident blogger here, posting real estate and Metro Denver area information since 2003! You will find me writing about things I feel are important in the home buying process. When it comes to buying and selling homes, there's so much to know. I enjoy providing that information to my clients so they can make decisions based on knowledge and actual fact. You'll find I'm more of a teacher than a salesperson. My services include: residential property sales, purchases, 1031 Exchanges, new home purchases, REO, foreclosures, short sales. So if you are in the market to buy or sell Denver real estate, tap into my knowledge, just call me. I welcome your call!

Denver Real Estate ~ What is a 1031 Exchange?

What is a 1031 ?

For investors, whether they be on-purpose professionals or reluctant owners who had to hold onto a  property as a rental because at the time it wasn’t selling, doing a can save dollars. The 1031 Tax Deferred Exchange is a frequently overlooked section of the code!

In basic terms, Internal Revenue Code, section 1031 allows a real property owner to sell his property and reinvest the proceeds in ownership of a like-kind property and defer the capital gains taxes.

A 1031 Property Exchange is also known as a Tax Deferred Exchange.

Who should consider a 1031 Exchange?

Owners of real property that upon selling will incur a net gain.  Typically this is a property that has been substantially depreciated for tax purposes and/or has appreciated in fair market value), are good candidates for doing a 1031 Exchange.

5 Classifications of Property

The fourth and fifth category and possibly the fifth category are the type property allowed in Section 1031.  The defines “Business Use” as, “To hold property for productive use in trade or business.”  Property retired from previous productive use in business can be qualifying property.  Investment purpose defined as real estate, even if unproductive, held by a non-dealer for future use of increment in value is held for investment and not primarily for sale.  Investment is the passive holding of property, for more than a temporary period, with the expectation that it will appreciate.  Property held for sale in the immediate future is not held for investment.

Why  should you  consider doing a 1031 Exchange?

  1. Relocation to a new area
  2. Diversify.  Perhaps it’s better to own more than one property
  3. Defer paying capital gains taxes
  4. Leverage
  5. Upgrade to a better property
  6. Consolidate multiple properties into a better single property
  7. Differences in growth or income potential
  8. A well-structured exchange can provide the real estate investor the opportunity to defer all of their capital gain taxes. The exchange in essence is an interest-free, no term loan allowed by the government
  9. Change in type of property residential, commercial, retail, etc.

What is “Like-Kind” Property?

An example of “like-kind” property would include commercial, condos, duplexes, raw land, rental homes (depending upon extent of personal use) and apartment buildings.  The real estate needs to be within the United States and it’s possessions.  means “similar in nature” notwithstanding grade or quality differences.

1031 Exchanges Can Be Done in Different Formats

  1. Simultaneous (2-party swap)
  2. Delayed exchange is most commonly done
  3. Multiple sales/acquisitions
  4. Reverse exchange
  5. Improvement exchange

Guidelines to Replacement Property Identification in a 1031 Exchange

  • 3-Property Rule – You may identify up to 3 properties to replace your relinquished property.
  • 200% Rule – The aggregate value of identified properties cannot exceed 200% of the value of your relinquished property.
  • 95% Exemption – You may identify any number of properties to replace your relinquished property as long as the total value you end up purchasing does not exceed 95% of all identified properties.

Like in Life, Timing is Everything!

The time you have to sell your relinquished property and close on a new one is strictly dictated by the IRS Code.

  • You have 45 days from the closing of your sale to list the properties you may want to buy. There are no exceptions to the deadline.  A day counts as a day, even if it is a weekend.
  • From the sale closing date, you have 180 days to close on a purchase of one or more properties from the 45-day list.  Again, no exceptions to this deadline.

Watch Your Tail Feathers!

As one can imagine there are lots of Carpet Baggers out there in the world trying to remove you from your investments.  Arming yourself with not just knowledge of a 1031 Exchange but also a concrete understanding of what your are doing is very important.  There’s lots of info to read and research, but it’s constantly changing.  Thus when it comes time to do your exchange be sure to partner with and expert who follows the changing legislation and monitors new legal developments.

Work with a Professional: Any real estate transaction can be confusing. Dealing with a 1031 Exchange can be mind boggling, to say the least. If you don’t have intricate knowledge or experience in dealing with a 1031, it could be very, very costly for you in the end. I have the experience necessary to make your Colorado 1031 Exchange go smoothly. For any Colorado information regarding Real Estate 1031 Tax Exchanges, please contact me Kristal Kraft at 303-589-2022. I look forward to working with you on any of your real estate transactions in the metro Denver, Colorado, area.

About Kristal Kraft, Denver Realtor

Hi, I'm Kristal Kraft, the resident blogger here, posting real estate and Metro Denver area information since 2003! You will find me writing about things I feel are important in the home buying process. When it comes to buying and selling homes, there's so much to know. I enjoy providing that information to my clients so they can make decisions based on knowledge and actual fact. You'll find I'm more of a teacher than a salesperson. My services include: residential property sales, purchases, 1031 Exchanges, new home purchases, REO, foreclosures, short sales. So if you are in the market to buy or sell Denver real estate, tap into my knowledge, just call me. I welcome your call!