IRS "Compliance Gaps" Includes Real Estate Investors

I've said it before, that the government views property owners like John Dillinger viewed banks.

Due to new Medicare laws, real estate investors would do well to qualify as real estate professionals. However, there is an exception for those who would qualify.

Read How Real Estate Investors Can Protect Themselves From the IRS to learn more about it.

And if I were local to Savannah I'd call Stephen Leonard over at Hancock Askew.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

New FHA Mortgage Program Changes: What Buyers Need to Know Before April 1

Steve Nimmer, Coldwell Banker Mortgage (912-604-3834 NMLS #: 186680), who is a great source of information, sent me the following:

The Federal Housing Administration has announced several changes to FHA mortgage programs that will begin April 1, 2013. These changes will impact customers who are in the market for or have recently qualified for an FHA loan.

The new changes revolve primarily around increasing mortgage insurance premiums. Before going into more detail, it may help to do a quick review of the two types of mortgage insurance required on the majority of FHA-insured loans:

• An upfront mortgage insurance premium, or UFMIP, which is paid once at loan closing. FHA allows this premium to be financed into the loan.
• A mortgage insurance premium, or MIP, which is paid in equal installments, is part of the mortgage payment.

Increased insurance premiums – and tightened criteria

As noted, the FHA program changes focus on mortgage insurance premium increases, but there are also other factors buyers should be aware of:*

• Annual mortgage insurance premiums (MIP) paid by borrowers on most new FHA loans will increase by 10 basis points, or 0.1 percent; for loans of $625,500 or more, there will be an increase of 5 basis points or 0.05 percent.
• Upfront mortgage insurance premiums will rise to 1.75 percent of loan size.
• Most FHA borrowers will now have to continue paying annual premiums based on the unpaid principal balance for the life of their mortgage loan. (This reverses a policy that automatically cancelled required premium payments after loans reached 78 percent of their original value.)
• It will be more difficult for borrowers with FICO scores below 620 and a debt-to-income ratio higher than 43 percent to qualify for the loans. They will not be eligible for processing through the FHA's automated underwriting system and so will have to be processed manually, with lenders documenting compensating factors such as larger down payments – or a higher level of reserves.

Buyers can still take advantage of the current, lower premiums. The new FHA mortgage insurance rates will apply to most loans that have a case number starting April 1, 2013 or later. Be sure buyers are aware of the latest changes and that they have consulted a mortgage advisor about eligibility or the next steps they may wish to take.

*Source: Inman News, January 2013.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

2012 Q4 Coastal Empire Economic Outlook Posted

Summary: The last quarter of 2012 showed growth, but slower than the previous quarter. Stronger growth projected for 2013. The Coast Empire Economic Monitor is courtesy of AASU and Dr. Michael Toma. Click on each image to enlarge.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Movie Studio to Proposes to Build in Effingham County

Wow, the first update since January: I have been busy! To summarize this news...

Who: "The Effingham County Industrial Development Authority unanimously approved an agreement Tuesday with Medient Studios Inc. for a $90 million movie studio and entertainment facility..." writes G.G. Rigsby in the Savannah Morning News.

What: The Effingham County IDA approved a Memorandum of Understanding with Medient. The memorandum is a legal document, but not as fully binding as a contract. As I understand it, this deal is creeping toward the finish line, but not yet "a done deal." I don't think any of us has forgotten the Daimler-Chrysler Sprinter van plant drama back in 2002-2003 which was presumed to be a sure thing.


When: WTOC reports that "Medient Studios has plans to open as early as next year."

Where:

Picture courtesy of Effingham County IDA. Click to Enlarge

How much: "The $90 million figure includes $10 million for land, $40 million for equipment and $40 million for buildings. An investment of $90 million and 1,000 jobs are the performance goals called for in the memorandum of understanding. Kumaran said he expects more than 1,200 jobs to be created eventually" writes G.G. Rigsby in the Savannah Morning News.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga