Real Estate Update in Palo Alto & Los Altos

Money you’ll need up front

3 to 20% of the purchase price for a down payment. The actual amount depends on what kind of loan you get and how good your credit is. Your bank might offer a zero-down loan, but if you can afford to make a down payment, you should do so, because you’ll […]

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The Basics
You don’t pay cash when you buy a home. If you had to do that then nobody could afford to buy a house. Instead you get a loan from a bank called a mortgage. You make payments on this loan every month for 15 or 30 years, and then you get to stop making […]

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Locating a Replacement Property BEFORE selling the Old Property was a common dilemma for exchangers before the year 2000. To remedy this problem, the IRS created Reverse 1031 Exchanges.
In simple terms, in a reverse exchange your Qualified Intermediary (QI) takes title to the New Property you wish to purchase and “parks” it until your Old […]

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Can someone make improvements to the replacement property in order to reinvest all the sale proceeds?
Yes. This type of exchange is known as a construction or improvement exchange. To make this exchange work, someone other than the investor or business owner (usually the Qualified Intermediary) must take title to the replacement property, make the improvements […]

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Why is a Qualified Intermediary needed?
Since the exchange ends the moment the investor or business owner has taken actual or constructive receipt of the proceeds from the sale of the relinquished property, using a Qualified Intermediary is a way to safeguard against this happening. The Qualified Intermediary holds the proceeds from the sale in a […]

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