The Boston2.com Real Estate Blog

Cost Segregation Analysis - Pay a LOT Less in Taxes

Pay a LOT Less in Taxes - Cost Segregation Analysis

Do you want to pay less in taxes? That’s a dumb question, who doesn’t? 

Well let’s talk about drastically reducing your tax bill or even eliminating it through buying and owning real estate by doing a Cost Segregation Study. It’s something that the wealthy and big business and developers have been doing for YEARS. 

But first, real quick, my name is Jeff Chubb and I am a recovering Investment banker, turned real estate agent that has sold more than a 1,000 properties. We get calls, texts and emails from folks just like you who are looking to buy or sell an investment property in the Boston Metro area and I absolutely love it! So whether you are looking to make a real estate investment in the next 9 or 90 days… It doesn’t matter. Give us a call, shoot us an email or stop by YouTubeRealEstateAgent.com and fill in your information and we will reach out to you! 

Let’s just remind everyone that I am not a CPA. I am just a real estate expert that have seen many friends and clients take advantage of this monumental opportunity. I recommend that you consult with your own accountant and advisor to ensure that you are able to utilize this additional depreciation on a timeframe that works for you. 

So what is Cost Segregation? It is a tax deferral strategy that frontloads depreciation deductions in the early years of facility ownership. Segregating the cost components of your building into the proper asset classifications and recovery periods could result in significantly shorter tax lives of five, seven and 15 year spans. Instead of the standard 27.5 or 39 year depreciation period. 

Think about it. Does it really make sense to depreciate a water heater over 27.5 years when...

How to Sell a Hoarder House

How to Sell a Hoarder House

We’ve all see the houses that look like this

For the record, that place looked better than it smelled… Plus, did you notice all that trash and those food bags… That didn’t have any food in them? That’s because the rats had already cleaned the place out! 

Maybe you have inherited your house from a family member or a friend. Let’s talk about your options when it comes to selling a house in this condition. 

But first, real quick, my name is Jeff Chubb and I am a recovering Investment banker, turned real estate agent that has sold more than a 1,000 properties. We get calls, texts and emails from folks just like you who are looking to sell a property and I absolutely love it! So whether you are looking to sell a property in the next 9 or 90 days… It doesn’t matter. Give us a call, shoot us an email or stop by YouTubeRealEstateAgent.com and fill in your information and we will reach out to you! 

So how do you sell a property that is like this. This is a 2 family where the first floor was completely filled with hoarding… JUNK. 

There are a couple ways. But It ultimately comes down to the easier the process then the bigger the discount. You essentially have three options when you are looking to sell a hoarder house. 

I would say that the most common way of selling a hoarder house is to sell it to an investor. This is the easiest way to sell a property. The investor will buy the property in as-is condition. All that junk sitting in there is now their junk. They will close on the property generally within 14 to 21 days. There are no home inspections. No Realtor fees. No surprises. Like I said, the easiest way to sell a house, but these investors will demand a discount. ...

Inheriting a House without a Will

You’ve inherited a house without a Will. As if times weren’t tough enough… Now you will have to jump through a bunch of hoops in order to sell this property. Let’s talk about those hoops and point out some pitfalls to watch out for. 

But first, real quick, my name is Jeff Chubb and I am a recovering Investment banker, turned real estate agent that has sold more than a 1,000 properties. We get calls, texts and emails from folks just like you who are looking to sell a property and I absolutely love it! So whether you are looking to sell a property in the next 9 or 90 days… It doesn’t matter. Give us a call, shoot us an email or stop by YouTubeRealEstateAgent.com and fill in your information and we will reach out to you! 

Inheriting a house without a Will will be determined by the state specific intestate succession laws. First we will talk in generalities and then use Massachusetts as an example on how things would work. 

Intestate Succession laws vary by jurisdiction, but they generally determine the distribution of assets which includes real estate when someone passes away. 

The deceased person is termed intestate. Now the estate of a person who has died intestate goes through probate court. This ensures of the proper distribution and the right heirs have received what they are owed. 

We will use Massachusetts intestate order in a couple moments as an example, but typically the succession of assets starts with immediate family, specifically a spouse. And then if there is no spouse then it goes to children. No children, then it goes to parents or siblings. This is where each state may differ. 

But the first place all states stop is when you have joint ownership of the asset. If the property was owned jointly with rights of...

Is now a Great Time to Buy a Home?

You Are Wrong. Now is a Great Time to Buy

Jeff: We’ve heard so many people say it… Now is a bad time to buy. 

Sammy: Let’s take a couple minutes and debunk those myths and talk about why now is a great time to buy a house. 

Jeff: But first, my name is Jeffrey Chubb, I am a retired investment banker, turned real estate agent that has sold more than 1,000 houses.

Sammy: And I am Sammy Iliopoulos of Guaranteed Rate. I am one of the top 10 mortgage brokers for Guaranteed Rate in the country.

Jeff: Alright Sammy, interest rates just hit a high point not so long ago. Give us some ah… Professional insight. 

Sammy: Ha, Yes. Rates just hit a 24 year high with an average rate of 7.79%. But let's rewind a bit. The last time we saw these levels were in October of 2000. The first point to make is that what goes up, generally goes down. 

Jeff: And I will point out that home prices went up in 2000! I think to understand why now is a great time to buy, we need to talk about why interest rates have gone up. 

Sammy: Solid point! At this point we all know about inflation… We live it and feel it each time we go to the grocery store! The Feds don’t like high inflation. They aim for a 2% per year inflation rate. So in order to decrease inflation they need to slow down economic growth. 

They do this by increasing interest rates. And that is what we have been living and experiencing...

RIP Real Estate Agents - NAR Litigation

RIP - Real Estate Agents

You’ve seen it, right? A jury ruled that real estate companies were colluding and that a seller is no longer forced to offer a buyer agency fee. And with that ruling, they awarded them a boat load of money! And by them… I really mean the attorneys, because they are the ones that really made out! 

There is a lot of bad information out there. As an example, I have had a couple of people say it was a supreme court ruling... It was not. Let’s get some clarification on what happened as well as talk about what this could mean going forward. Because there is no doubt about it. The real estate world is about to change. Some for the better and well some of it won’t be pretty. 

But first, real quick, my name is Jeff Chubb and I am a recovering Investment banker, turned real estate agent that has sold more than a 1,000 properties. Let’s just say that I have been around the block at this point. 

So a quick recap in case you were living under a rock. A group of 500,000 sellers in Missouri sued the National Association of Realtors, some real estate companies like Keller Williams, RE/MAX and Anywhere which owns brands like Coldwell Banker and Century 21. The lawsuit said that the NAR and real estate agents colluded to force sellers to offer a buyer agent a commission. 

RE/MAX and Anywhere settled leaving NAR, KW and Berkshire Hathaway to fight the suit. And it did not end well. The jury after a mere 2 hours of deliberation handed down a $1.7 Billion dollar ruling that ultimately could turn into $5.4 Billion in damages. 

A lot of agents and organizations… Including the National Association of Realtors is saying that this verdict won’t stick and they will win on appeal and that...