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Where are They Going?

It’s 2018 and there’s an ever so interesting pattern of Americans relocating across the nation.  The ideals of living close to aging relatives and keeping the same job for 20+ years has vanished, making room for modernized moving habits. Who is moving exactly? Where are they moving to and why? The top states will be further evaluated in the context – the reasons may surprise you.

With a strengthening economy, the housing crisis of 2007 years in the past, millennials making a breakthrough in the job market, a new wave in geographic mobility takes over the more confident market. Statistics show, that now more than ever people are moving. Whether it be to explore life away from home an attend an out-of-state university, relocation for a job, entering into a completely different job market, differences in local economies, or just plane old preference and quality of life. Believe it or not, Americans are likely to move more than 11 times in their lifetime [1]. To focus more demographically, in recent years 17.3% of those that are moving to another state are under the age of 18. For those 65 years and older can account for 6.7% of out of state moves…helloooo Florida! The median age of movers from different states you ask? Around 28 years old [2]. To put this into perspective, in the state of California, in the year 2012 alone, approximately 493,641 people moved from other states to California. While that number may be alarming for a single state, the total moving out of California in 2012 was about 748,252 people. While those numbers solely reflect one state’s newcomers and leavers, data sources reveal that nearly 7.1 million Americans relocated to a different state within the U.S. during that year. So where are they going?

It’s obvious that different people have different reasons for moving. More often than not, the cost of living has a huge impact on these decisions. Texas, despite it being our second largest state in the U.S. (you forgot about Alaska, didn’t you) has a relatively lower cost of living from, let’s say Illinois. Data reveals that it is 21.51% cheaper to live in Houston, Texas than it is in the suburbs of Illinois [3]. In 2015, Texas experienced a 7.8% bump in population [4]. With this in mind, prices have begun to rise incrementally in various cities to make way for economic adjustment. Similarly, Jacksonville, Florida has experienced a 5% increase in migration, primarily from those in more expensive states just north of the Floridian paradise – New York and New Jersey.  More recent findings, from 2016, uncover the top states subject to domestic migration. The fastest growing states are as follows (listed in ascending order to highest population growth): Arizona (1.66%^), Colorado (1.68%^), Oregon (1.71%^), Washington (1.78%^),  Florida (1.82%^), Idaho (1.83%^), Nevada (1.95%^), Utah (2.03%^) [5]. Why these locations in particular? Beautiful views, nice weather, low taxation (if any), job growth, and housing opportunities.

On the contrary, these eight states are seeing a loss in population, despite some of them being prime tourist destinations: New York (-.01%), Mississippi (-.02%), Pennsylvania (-.06%),  Wyoming (-.18%), Connecticut (-.23%), Vermont (-.24%), Illinois (-.29%), and finally, West Virginia (-.54%) – that’s 10,000 people!

While natural growth, such as birth rate, accounts for nearly 55% of the national population increase, for the eight states detailed above, domestic migration was the largest contributing factor to population growth.  In sum, migration is responsible for 76% of all new state residents among the eight fastest-growing.

Let’s break things down a bit from a comparison standpoint. What is it that West Virginia (experiencing negative growth) lacks that states like Utah (the state with the most positive growth in population) possesses.

West Virginia:

  • 1 year population growth rate: -.54%
  • Has a relatively high death rate due to an older population
  • One of the lowest birth rates in the country
  • Unemployment rate is one of the highest at 5.4%
  • 17.9% of the state lives in poverty

Utah:

  • 1 year population growth: 2.03%^
  • Has the largest average family size
  • Has the lowest death rate in the country due to a younger overall population
  • 3.1% unemployment rate
  • Beautiful scenery  and relatively low cost of living

Where are you headed? Should you be interested in moving within California, our residential experts are here to help. Moving out of the Golden State elsewhere? No problem, our relocation connections and nation-wide network are just a phone call away. Contact your preferred agent today!

 

 

Sources:

[1] https://fivethirtyeight.com/features/how-many-times-the-average-person-moves/

[2] http://www.governing.com/gov-data/residents-moving-to-new-state-demographics-population-statistics.html

[3] https://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx

[4] https://www.forbes.com/sites/karstenstrauss/2017/06/21/10-cities-americans-are-moving-to-and-where-they-are-moving-from/#4aac738a41b8

[5] https://www.usatoday.com/story/money/economy/2018/01/15/fastest-growing-and-shrinking-states-closer-look/1019429001/

 

5 Ways to Simplify 1031 Exchanges

The term “1031 Exchange” in itself can be daunting as it gets thrown around often. Many people don’t fully understand what it entails but may actually heavily benefit from it. Here’s what you should know (in very black and white terms) if you’re considering this savvy option for investing in, or transferring real estate.

First, let’s discuss what is a 1031 Exchange? Section 1031 is usually associated with the commercial real estate industry, and once applied to personal property, artwork, aircrafts, commercial fishing boats, and more (but this is no longer the case). This action allows an investor to defer any capital gains taxes that would be due as a result of the sale, i.e. rental home or commercial building. If earnings from the sale are reinvested, those taxes could be avoided altogether. On the contrary, if the investor were to outright sell the investment property without the intent to put the funds toward another property, they could face capital gains taxation upwards of 20-30%; Ouch.

Now that we have a basic understanding of what 1031 Exchanges are, let’s dive a little deeper and simplify the hairier details.

5 Ways to Simplify 1031 Exchanges –

  1. Rules & Regulations –
  • The replacement property the funds are transferred to in the reinvestment must be like-kind, meaning, residential property for residential property, large commercial building for large commercial building, vacation home for vacation home.
  • Both titles must list the same owner for accuracy
  • Reinvestment must take place. The total value of the replacement property needs to be equivalent, or more than, the previously sold property to avoid capital gains taxes.

2. A Further Look, Rules & Regulations – You only need to satisfy one of the three main rules when it comes to 1031 Exchanges. Just remember “3-95-200“.

  • Identify up to 3 potential replacement properties, purchase any, or all of them, no matter their total value to properly complete the exchange.
  • This is not commonly used by investors, nevertheless should be talked about. This lesser-used option essentially allows and investor to name any number of potential replacement property of any value covering 95% of the total value of all properties owned, but there’s a downside. In light terms, while it may seem like the easiest option, read more into it, as it could actually lead you, the investor, with a bigger purchase commitment than anticipated.
  • Lastly, you have the option to identify more than 3 potential replacement properties, so long as their value does not exceed 200% of the total of the released property.

3. The Process – This one’s a peace of cake, just make sure to complete everything within the deadlines detailed in our fourth step. Keep in mind, the sale must be made into an exchange before the close of escrow of the relinquished property, otherwise, things get messy. Similarly, be sure to employ a Qualified Intermediary before you close the sale. Now, here we go:

  • Disposition of the original property (Selling it)
  • Great, now you have sales proceeds, or capital
  • Identify single or multiple replacement properties for investment
  • Take sale proceeds to your previously identified, qualified intermediary (this cannot be an agent you’ve worked with within the past two years on the sale of that property)
  • Take the investment capital and acquire a replacement property.

4. Deadlines – Set up your calendar, these are important dates.

  • Days #0-45: Sell the property and identify what is next you’d like to invest in, property-wise.
  • Day #45: Complete the identification or probable replacement property/properties.
  • Day #180: Close escrow on the replacement investment property within this time frame, or 180 days after the disposition of the sold property.

5. Resources – Certainly it’s wonderful to understand what you’re getting into, potentially, by educating yourself in 1031 exchanges. If you, or someone you know is interested in learning more and going through with a 1031 exchange, leave it to the experts and avoid hefty capital gains taxation.

Discover how the experienced and qualified professionals at CSR Real Estate Services, both residential and commercial, can help you find and close on your next 1031 exchange property or to learn more about the exchange process.

 

 

 

CSR Cares Announces Quarterly $5,000 Winner

CSR Cares is proud to donate $5,000 to one lucky charitable organization each quarter! The donation doesn’t just go to any charity, it goes to a deserving group that falls within CSR Cares’ founding values: to help the children and people in our community. This quarter’s winner and recipient is Teen Challenge, an organization comprised of a supportive network intended to help teenagers, adults, and families with problems such as substance abuse. Adult & Teen Challenge USA is holistic – meaning that they are concerned with the body, mind, and spirit of those who come to the organization for help. It is of top priority for them to help people become mentally sound, emotionally balanced, socially adjusted, physically well and spiritually alive. CSR Cares’ donation will go towards food, bedding, and overall program support.

CSR Cares is honored for having such generous agents to contribute donations on a monthly basis, in addition to what is received from external donations. This wouldn’t be possible without a community effort. At the conclusion of each quarter, CSR Real Estate Services votes for one lucky winner to receive the $5,000 in hopes to make a difference in the community. To learn more about how you can nominate an organization for a grant, click here. To view past recipients, click here.

Celebrating Children’s Day

Our very own, Guadalupe (Lupita) Rodriguez donated her time to el Dia del Niño, a day commonly celebrated in Mexico, on April 30th, to recognize children and provide special events or activities for them to enjoy. The main focus of this celebrated day is to make children feel special. This annually-celebrated, unique event fills shopping malls with entertaining activities, special events, vendors, magicians, music, food, and more. The purpose of the festivities is to remind adults of the importance of childhood and to celebrate the joy that simplicity can bring. Lupita proudly represented CSR Real Estate Services at Eastridge Shopping Mall, in San Jose, to further inspire children to have career aspirations and to keep learning in school. Way to go!

26 Years of Granting Wishes

We’re hosting our 26th Annual Make A Wish – Greater Bay Area Event!

Support an incredible cause and change a child’s life while enjoying tacos, music, adult beverages, and more alongside a gorgeous poolside venue, in the heart of Cambrian. Silent Auction, raffles and more to look forward to!

Purchase your tickets, here. 

 

***NO TICKETS AVAILABLE AT THE DOOR***
EVENT WILL SELL OUT FAST!

Follow this event on Facebook!

Thank you to our valued sponsors for making this event possible (more to come). 

Become a Sponsor

CSR Commercial Capital Closes $17M Construction Loan

CSR Commercial Capital closed on a $17,000,000 construction loan for a 4 story mixed use podium build project located at 955 South First Street just south of downtown San Jose.  The project consists of 50 apartment units ranging from 1 to 3 bedrooms, along with five ground floor retail spaces totaling 5,136 s.f. Parking for the project consists of 74 residential spaces and 28 commercial spaces.  Tenants will also benefit from lush landscaping, a 452 s.f. children’s play area, and over 5,800 s.f. of courtyard space featuring barbecue and picnic areas.

The project was brought in to CSR Commercial Capital by the President of CSR’s commercial sales and leasing division, Tony Odom, who previously acquired the property for the client.

“The most challenging aspect of this transaction,” commented Duane Hood, President of CSR Commercial Capital, “was that we had an out of country borrower who, although he possesses permanent residency and extensive experience overseas, is not a U.S. citizen and has not previously developed in the U.S.  Aside from those regulatory challenges, however, we could not have asked for a better client. His responsiveness and decisiveness were instrumental in his ability to close this loan and move this exciting project toward completion.”

A representative for the buyer and partner in the ownership group commented, “In addition to just obtaining the land, CSR acted as a full service commercial real estate firm throughout this transaction, including interviewing the architects and general contractors and working with the city and title company to resolve issues. Moreover, CSR interviewed many qualified lenders, then brought us the most competitive commitments. We were able to select a lender which best suited our needs. We couldn’t be happier with the work the team at CSR has done.”

Learn more about what CSR Commercial & Commercial Capital can do for your business.

CSR Agent, Kelly Hunt, Featured in Top-Producer Panel

Tuesday afternoon, approximately 50 real estate agents attended a panel of some of the most successful, top-producing agents in the area. The five panelists shared their success stories and tactics to a room full of acquiring minds. The panel included decades of experience from Jenny Huang of Coldwell Banker, Dale Warfel of Keller Williams, Jerry Zang represented Bay One Real Estate Investment, Keith Walker of Intero and CSR’s very own, Kelly Hunt.

The seasoned veterans were asked a series of questions in which each thoughtfully answered to feed the curiosity of the growing crowd. The day concluded with open questioning from eager attendees. Discover what led to Kelly Hunt of CSR’s success in the past and present as well as what she plans to do to prolong an ever-changing market in the Bay Area.

Tell us a little bit about yourself for starters.

Hello Everyone, I’m Kelly Hunt with CSR Real Estate Services. I’m a licensed REALTOR®, a Certified Residential Specialist, an Accredited Buyer Representative, a Short Sale and Foreclosure Resource and a Senior Loan Consultant with over 35 years of experience in the real estate industry.  My primary focus is maintaining the highest level of integrity and professionalism, while helping my clients achieve a very important and life changing goal.

What is your number one source of leads?

I’m sure everyone has a different method of getting more leads but really, it’s based off of reputation. First starting off with what you can do on a budget, mailers, flyers and whatever else you can do. Even if starting off with no budget, do what you’re capable of doing. It really only takes one spark to get things started.

After selling a home for one person that worked in the county, soon enough I had 30 county employees in my transaction history. It all stemmed from one excellent transaction which then “mushroomed” into mass referrals. It’s all about quality of service. That being said, over 95% of my business consists of referrals and returning customers year after year.

How much time do you typically spend on new lead generation?

I wouldn’t say I spend a ton on generating new leads. Since my database is healthy and I’ve maintained it over the years, my database essentially works for me in sending over referrals. I don’t go around door knocking or cold calling. I don’t necessarily geographically farm in an area either. While those are definitely workable tools to lead generating, everything works differently for each agent. Whatever works best for you, or what you’re comfortable with is what’s best.

Again, I can’t stress enough how your CRM (Client Relationship Management) or database is a major key to success! Keeping everyone organized even from years ago will have your database work for you in the end. Lastly, reputation is your lead generation! Client and community reputation is everything. Say an agent knows you against multiple offers. They know you’re ethical, professional, on top of your game, polite and are the whole package – they’ll likely pick you for reputation over another agent. It’s that simple.

Say you have some free time, what are you up to?

I usually exercise in the morning. Work/life balance is so important for a healthy self. At CSR, our company culture reflects that as well.

Do you have a team and at what point did it make sense to?

I hired assistant early on after I started producing. I do receive support amongst the company I work for too with the support staff, which is great. You do have to think of yourself as your own company within a company. The minimum help I’ve ever had was a part-time assistant. He helps me so much with database management in making it a live organism. My contacts are receiving monthly newsletters, event invitations, direct mail and more – all from my database.  It really is a game of cost comparison. An assistant is less expensive than what a realtor’s time is worth in being able to accomplish high-level work for clients –  oppose to time-consuming, yet essential work like putting out open house signs for an hour. The only way to succeed in this business is to build your weaknesses up and get help where you need it. In the end, this saves time and money while making your business run more efficiently.

For newer agents in the room, what’s your advice to getting a deal as soon as possible?

Again, having a CRM and getting that started is the most important. Also, getting out there and being face to face with people, building authentic relationships is key. Building trust is so important in a world of uncertainty.  Something else that is very important to realize is that the more knowledge you have, the better. Don’t stress about one agent having more experience over the other – the experience will come. You will service clients above and beyond with having more knowledge to use as tools. Focusing on your quality of service and initial interactions is extremely important.

Who do you talk to if your new to the industry?

Everyone you know! Now you have a place to put them (in your database) and make yourself well known, well thought of and top of mind with consistent marketing. Be in their presence at all times: online, social media, website, direct mailers, event invites and more. We now live in a world where you can touch clients at any time for anything. People DO forget that you’re a realtor, believe it or not. Continue to market yourself and remind friends, family and past clients that you’re in the real estate business. From there, you can continue to add to it. Before you know it, years will have passed by and your database will be filled by the hundreds or thousands. Cultivate leads in the future that are high-quality referrals. For example, I had a call from a client which I sold a home to 10 years ago saying, “We get your routine emails, news letters, event invites and all.  You were always there and have stayed in touch, so we are reaching out to find a new home after all these years”. Build your database and make it fully YOURS. When in doubt, focus is key. Use your heart to service your client. That’s the best method.

Who would you recommend as a coach?

There’s lots of sources out there. Our office implements Buffini & Company and Tom Ferry. It really helps that we have a Mentorship Program too at CSR. New agents are paired with a seasoned veteran in the industry during the first couple transactions to get things started and ensure everything is done correctly to make for a smooth transaction process. This also provides someone to help you be accountable. It’s great to have someone as a guide or mentor outside of friends and family. They have no other relationship with you than to make sure you’re successful.

What’s your ratio of buyers v. sellers?

This can fluxuate, depending on the market, but in recent years I’ve had more sellers than buyers. Listings generate more business – that’s for sure. You should receive about two referrals from a listing if you do a great job. If you list, you last; is what we say. This also gives you more of a bit more of a controlled schedule. You never know what will come as a result from a buyer or seller. Honest, excellent work makes for a prosperous business.

When do you think the market will turn around?

We will have corrections, as we always do. But I really don’t see it happening any time soon. There are no indicators right now with the technology job market booming. We have Facebook, Google, Apple and more technology giants continuing to move to the central bay area, Amazon, eBay…the list goes on. Tax rates and loan rates have begun to adjust. It’ll be interesting to see in the future when or how sever the correction turns to be, but I think it won’t be for quite some time. The environment is way different than it was in 2007. If you’re worried as an agent, you shouldn’t be. You have to think about it like this: We are our own global economy in Silicon Valley. We always recover faster than the rest of the nation after a recession hits. Not only that, but as realtors, we will be okay and come out faster than normal.

Top 3 ways to leverage current listing for next listing opportunities:

Host open houses, engage people, build up contacts and as I’ve mentioned: one listing turns into 2 more listings. Buyer and seller packets you make are huge in that it explains how transactions work. Give clients something of value. Social media is huge and honestly very inexpensive to market on. Have something of value with your marketing info on it to leave behind with clients for them to refer to. Boost posts and see the number of hits you get.  Ultra micro-segment your database by industry, likes, preferences, region and more.  Be in contact with the open house neighborhood. Coming soon marketing is huge. Let your database know you’re doing business, of course. Be sure to let neighbors nearby know before the sign goes up. This gives you a chance to learn more about the neighborhood and the character it possesses.

What percent of income do you put into marketing?

I don’t put a specific amount of time or money into advertising. Of course, I spend money on postcards, buyer packets, Facebook boosted posts and what not. Spending money to benefit a client generates more valued leads. You can spend thousands of dollars a month on Redfin, Zillow or Yelp to only receive a small percentage of leads that you have no relationship with – this makes it easier for them to fall off too.

What is your secret to longevity and prosperity to real estate?

Again, reputation to me is everything in prolonging a healthy and sustainable business. If you’re doing things the way you should be doing them (ethically), that’s the way to do it. Be proud and passionate about what you’re doing and be happy to do it. Educating yourself is key. Things are constantly changing in every industry. Know your stuff! You can’t sustain doing anything unethical or wrong – it really just leads to a downward spiral. Have a clean slate each night and be proud of what you’re doing as a real estate agent in making dreams come true for home owners. That really is the key to success, longevity and prosperity in real estate.

Learn more about Kelly Hunt.

Dreams Near and Far

Real estate agent, Brandy Reading, talks with Matt Furman, right, home owner, as her clients Trevor, Eliza and 2-year-old Gwendolyn Masters tours the 3 bedroom, 2 bath home in San Jose, California, owned by Matt and Brooke Furman on Saturday, Feb. 10, 2018 during an open house. The Furmans are selling their home in hopes of moving closer to the Santa Cruz mountains. (Laura A. Oda/Bay Area News Group)

Featured in The Mercury News, the article details how the ever-growing housing market is hitting the younger generation the hardest. With an average income needed to live in a medium-sized home being $330,000 a year, it’s no wonder why there is so much struggle in purchasing a first time home in Silicon Valley. Read the article in its entirety, here. 

Kelly Hunt’s 11th Annual Toy Drive Success

“I want to give all of you a big “THANK YOU!!” for your continued support of my 11th Annual Toy Drive! Thanks to all your amazing donations this year, we were able to donate 384 toys and clothing items, $1,700 in gift cards, and $300 in checks directly payable to charity! Your support has been amazing over the years and this year you definitely came through again.

Your donations helped 10 families in need at the Robert Sanders Elementary School, combined with the efforts of Fire Station 21 and Principal Julie Howard. The majority of your donations will help so many adoptive and foster children of Santa Clara County KAFPA Program.

Your combined donations over the past 11 years are now 2,290 in toys/clothing PLUS over $11,500 in gift certificates and checks directly to the charity. Without your generous support, my Toy Drive would not exist. I am so very thankful for your help all these years! You all have huge hearts and I’m proud to do this joint venture with you every years. Have a wonderful Holiday and spectacular New Year!!!”

An excerpt from the very excited, Kelly Hunt via Facebook after an ever-growing successful annual toy drive. Kelly’s kindness and determination has changed the lives of many families of the years, so much so that the Santa Clara County Association of Realtors recognized her in the below excerpt:

 

Kelly Hunt, a REALTOR® for CSR Real Estate Services, has been actively participating in the event for the last ten years. She spends the month before the event gathering donations from friends and colleagues. This year she collected a total of 405 toys and pajamas, and $1300 in cash and gift cards.

“My volunteer work over the years has been primarily focused on helping children, since they don’t always have the ability to control their environment,” said Hunt. “My clients, friends, and colleagues are what really makes the toy drive a success, and I couldn’t do it without them. I’m just the vehicle making it easier to help and to bring everyone together for the benefit of the kids.”

While organizations like KAFPA receive a majority of their donations around the holidays, it is important to keep them in mind year round.

Hunt added, “KAFPA needs donations all year long for basic necessities, so I’m working with the director to find ways to help more throughout the year. The Holiday Toy Drive is just one of many things our real estate community does to give back to the community throughout the year, and I’m always proud to be a part of helping those in need.”

For more information on KAFPA, visit www.kafpa.org.
Learn more about the Santa Clara County REALTORS® Foundation at www.sccrfoundation.org.

Source: www.sccaor.com
Original Article: https://www.sccaor.com/local-realtors-donate-over-16000-in-toys-and-pajamas-to-foster-children/