Mike's Investment Tips, Strategies, etc...

“I believe I operate like other quality professionals who serve your accounting, medical, and legal needs. I treat each transaction as another important event in my continuing relationships. You will recognize this as a “Client-Centered” concept which by itself is not unique, yet its application to real estate is certainly rare.”

“As an individual and a responsible member of the community, I share a unique vision of how I can contribute expertise to the positive benefit of my select group of clients. I assist my clients by providing today’s vital information for tomorrow’s decisions.”



The savings of effecting a 1031 Tax “Deferred Exchange”–The government actually giveth!!


September 6th, 2008 . by Mike Kelly

Don’t sell your income or investment property until you Do the Math

Taxes are paid on capital gain, not equity or profit. It is possible to sell property without realizing much profit and still owe substantial capital gains tax. Capital gain is simply the difference between the sales price and the adjusted basis (i.e., what you paid for the property, plus amounts spent on capital improvements, less depreciation taken) less any closing costs associated with the sale.

To calculate your estimated capital gain – first subtract the adjusted basis from the sales price; then subtract the costs of your transaction, commission, fees, transfer tax, etc.; finally, multiply the capital gain by your combined tax rates (Federal and State) to determine your estimated capital gain tax. Read the rest of this entry »


 Making an offer on REO properties in Santa Rosa, Sonoma County, California–watch your step!

May 20th, 2008 . by Mike Kelly

It all depends. In certain areas of Santa Rosa the $299,000 price might be $50,000-100,000 below the marekt price. The Assett Manager and his Realtor/Licensee have made a marketing decision to get it way below the market to be percieved as a super-deal–hence, buyers/agents drive up the price. We’ve been seeing these shennanigans with comments in the confidential remarks section saying, “20 offers now on the table–don’t bother submitting any offer under $350,000″ and the property is listed for $259,000!!  Read the rest of this entry »