Do you pay taxes on a 1031 exchange?

Question: “I’m going to be selling my rental and buying another using a 1031 exchange. A realtor told me that because it’s not my home, the state of California will withhold money from the sale for taxes. Is that correct?” Answer: That agent gave you some incorrect advice. The state will require a 3 1/3%
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Are real estate investing seminars worthwhile?

Question: “I’d like to start investing in San Diego real estate. What do you think of those real estate investing seminars?” Answer: Most of them are a waste of your hard-earned money. Here’s why: Foreclosure seminars – we have VERY few foreclosures in San Diego. Tax lien seminars – ditto. Flipping seminars – too competitive
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How can I find foreclosures in San Diego?

Question: “Where do I find more information about buying foreclosures in San Diego?” Answer: The very good news, though not good for your plans, is that foreclosures in San Diego are exceedingly rare. And they’ve been that way since 2012 when our market turned around. So you can hunt around for foreclosure info, but in
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Do houses make good rental properties?

Question: “I live in University City and the house next door just came up for sale for $900,000. Do you think that would make a good rental?” Answer: Maybe. While I do own one rental house, I’ve found that less expensive condos and houses, as well as 2-4 unit properties, make better investments. However, since
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Are condos good investments?

Question: “What do you think of a condo as an investment?” Answer: Excellent question! I own several condos as investments and they’ve been great. Here are some situations where I recommend condos to my clients looking for investment property: You’re a beginning investor and want to start easy. You want to keep things simple so
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What home price can I afford?

Question: “My husband and I own a P.B. condo and we really want a house with a yard for the kids and a double garage.  Our condo is worth about $700,000, so we should net $300,000 after expenses and paying off the loan. How much house can we afford to buy?” Answer: Down payment is
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Do I really have to read all of the loan documents?

Question: “Help! We’re refinancing and have heard there’s hundreds of pages to sign. We’re not speed readers, so there’s no way we’re going to read it all. Any suggestions?” Answer: I agree. When you get a mortgage and are asked to sign a 1.5-inch high stack of papers, you’re not going to read every word. 
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Why homeowners insurance is important

Question: “You should warn your readers about this… I just bought a property for cash and found out after closing that I had NO INSURANCE! I had told my insurance company well in advance, and assumed escrow would be sure I was insured. But they all dropped the ball. Thanks goodness nothing happened.” Answer: Thank
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How does the Mills Act work?

Question: I recently heard of something called the Mills Act, can you tell me more about it and how it works? Answer: Certainly. What is the Mills Act?The Mills Act is property tax reduction for designated historic properties. It will limit changes that can be made to the property. How does a property qualify for
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Can property managers effectively sell properties?

Question: “We’re going to sell our rental property and have our property manager list it…” Answer: Hold on a sec! You don’t want a regular real estate “sales” agent trying to manage your property. And you don’t want a property manager trying to sell your property. Even though both jobs require real estate licenses, they’re
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