First American Exchange has a wealth experience when it come to handling all aspects of an Exchange. Sometimes they have clients who chose not to complete their 1031 Exchange, and want to know when they can get their  money back?”  This is a good question and one that a Qualified Intermediary (QI) hears from clients. The answer depends on the situation and timing of the client’s exchange.  The g6 regulations (from Treasury Regulation §1.1031(k)-1(g)(6)) dictate the circumstances under which a QI can release 1031 funds to the client.  Specifically, the g6 regulations state that funds cannot be released by the QI until:  
 1)  After the 45-day identification period, if no replacement property is identified;
2)  After the receipt of all identified replacement property; or
3)  After the end of the 180-day exchange period.
Why would the QI have concerns about releasing their client’s 1031 funds early, especially if the client is willing to pay taxes on the gain anyway?  If the QI does not follow the g6 regulations, the QI may be deemed an agent of the client, and agents are disqualified from participating as a QI in a 1031 exchange. 

 Further, if the QI releases funds in contradiction to the g6 regulations, the IRS may assert that the g6 rules are meaningless to the QI and then consider the QI an agent of all its clients, thus jeopardizing those exchanges as well.  
It is the QI’s job to help facilitate a smooth 1031 Exchange, not to expose their clients to possible risks.  In selecting a QI, an investor should consider the QI’s integrity and financial strength.  Both are vitally important to ensure the safest and most secure 1031 transaction. 

On the subject of rates….a colleague of mine at Premier Lending Matthew J. Goulart (aka Matt) had this to say, “The last couple of weeks have been a bit volatile… With gas prices soaring and people begining to feel the pain of inflation, mortgage rates have been moving upward as well. Although the Nasdaq and DOW have been moving downward, bonds just haven’t recovered enough to make a major difference. We have to remember however, that the swings we have seen through the entire year, haven’t added up to even a .500% change in rates, which really… isn’t enough to make or break that monthly payment”.

You can reach Matt at www.centralcoastmortgage.org

there is a wet spot in the hallway. OR Anatomy of a leak. True story. As we were poised to close escrow a dreaded call came. (actually I am really grateful to the tenants for calling me ) It was Saturday afternoon and the buyers were due in shortly to conduct  their final walk through on the tenant occupied 3 bedroom 2 bath PUD they were about to purchase. What to do? Call the owner, call a plumber? Can you get a plumber on Saturday?

YES ,YES, YES. 

Thank God for ATASCADERO PLUMBING. They showed up and started the investigation. All water was shut of and the meter was checked and yes water was running. But where? In the pipes in the slab. It would require getting leak detection equipment which is basically an electronic microphone that indicates through sound where the leak is. It was determined the work would begin on Sunday. The buyers

were explained the situation and were in agreement as to how the situation would be handled. The work was going to be completed prior to the closing.

The concrete was  jack hammered in the area of the leak the bad section of cooper piping was removed and replaced with new copper piping. They waited overnight. No new leaking. Then they proceeded to fill the hole with sand and re-concreted the area.  We were back on track.  Thank you Atascadero Plumbing for being there in a pinch!

Continue reading ‘Looking for a New Pad? 10 Tips for First-Time Homebuyers’

 THE COAST AWAITS YOU

The Cloisters can be discovered on California’s Central Coast. It is a residential neighborhood within a scenic open space. Carefully planned to preserve the natural resources and commanding ocean views the Cloisters 120 residential homes are clustered on  84 acres on Morro Strand State Beach.  The site is surrounded by 57 acres of open space, maintained by an assessment district rather than a Home Owners Association. The home are all custom one and two story and various architectural styles,

It’s close proximity between Monterey and Santa Barbara, minutes away from the village of Cambria and the Historic San Luis Obispo, this coastal neighborhood is also close to the wine regions of Paso Robles and the Edna Valley.

Golfers can play-on the scenic fairways of Morro Bay Golf course or travel short distance to play on our areas other championship golf courses , while outdoor enthusiasts explore unlimited recreational activities including kayaking on Morro Bay, hiking in Montana de Oro State park, or water skiing and boating on Lake Nacimiento. There is something for everyone . Currently  prices start at $1,400,000.

The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency’s jurisdiction. Deaths, injuries and property damage from consumer product incidents cost the nation more than $800 billion annually. The CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard. The CPSC’s work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the decline in the rate of deaths and injuries associated with consumer products over the past 30 years. I saw were recently A.O. Smith recalls a gas water heater due to carbon monoxcide Hazards.

Name of Product: Natural and Propane Gas Water Heaters

Units: About 1,500

Manufacturer: A.O. Smith Water Products Co., of Ashland City, Tenn.

Hazard: The water heater’s flue gas temperatures can exceed safe limits and produce excessive temperatures in the venting unit, posing a fire hazard. Also, the water heater’s exhaust can leak into the surrounding room, posing a carbon monoxide hazard.

Incidents/Injuries: None reported.

Description: This recall involves 75 gallon natural and propane gas water heaters. “A.O. Smith” or “State” is printed on the side of the unit. A.O. Smith and State model and serial numbers included in this recall are listed in the chart below. Model and serial numbers are printed on the water heater’s rating plate.

Sold by: Independent contractors and plumbers nationwide from November 2007 through January 2008 for between $1,000 and $2,500.

Manufactured in: United States

Remedy: Consumers should immediately stop using the recalled water heater and contact A.O. Smith to arrange for a free repair.

Consumer Contact: For additional information, contact A.O. Smith toll-free at (866) 880-4661 between 7 a.m. and 7 p.m. CT, or visit  A.O.Smith

David Ulrich  a friend of mine and a student at Cal Poly, recently he told me about the Shell Eco-marathon. He said  “We’ve built a car that managed to go 2752 miles on one gallon of gas (more or less, we don’t actually run the car that far, it’s extrapolated in the competition) during the Eco Marathon Americas competition.  To make a vehicle that can do something like this, improving the efficiency of every component is where we focus most of our attention.  Everything from the wheels, bearings, drive train, and (somewhat) the engine are looked at and modified in ways we think will help us out.  The car was designed to have an aerodynamic advantage as well.  Then there’s the weight factor.  Our vehicle body is made entirely from carbon fiber.  The total vehicle weight is 92 lbs, but can carry over 400 lbs.  The engine plays a big factor, but we haven’t really played around and modified ours yet due to time and knowledge constraints.  It’s pretty amazing we could get such a high fuel mileage number and know that we could probably at the very least double it if we started playing with the engine. 
This vehicle let us place second out of 30 teams during the Eco Marathon, although first was within our grasp if it hadn’t been for a little bit of weather-related misfortune.  It’s a pretty cool thing to see student built vehicles push the limits of these high-mileage vehicles every year, and if you think 2752 mpg is high, just wait a few years.”  

Morro Bay: Captain Ed Ewing of the the South Bay  is using a more environmentally friendly trawl net to bring in local rockfish, flounder and sole , in cooperation with local conservation groups. Capt Ewing is unloading thousands of pounds of fresh caught local fish and things are looking up. Fisherman have been feeling the squeeze because of more regulations and gear restrictions, marine protected areas, cutbacks and catch limits.

The Nature Conservancy supported the establishment of the new marine reserves recently established in state waters offshore from SLO County. In the face of a total collapse of the fishing industry there has been a new approach where fishermen, conservationist and scientists are working together to protect marine resources,maintain the fishing heritage and keep seafood available for the increasing demand. Federal Regulator’s have approved an idea where by decisions about resident fish stocks will be made by a committee of six local fishermen. Rather than being governed by the Fed regulators-whose decisions run West Coast Wide, the idea is that the abundant fish who make their home  in Central Coast waters would be caught by Central Coast Fishermen for local consumers under a local decision making structure.

This alliance is unique to the west coast and is forging a path through a very difficult time in commercial fishing. The local fishing community is taking  proactive economic and conservation measures before it’s too late to preserve our local fishing businesses and working waterfronts.

This spectacular Organic Farm ia a little bit of heaven  located in San Miguel. The name of the farm is Healthy Heart Organic Farm and Vineyard. and it is currently for sale and was on Broker Carvan for Paso Robles MLS. The setting  on 30+ acres is fabulous and it’s  just down the road from Castoro Winery. The house was built in 1920’s and is surrounded by 16 acres of mature merlot and Cabernet grapes.   Sorry but I couldn’t resist the photo op with Alice and Trixie.

SIMI VALLEY  Rapattoni Corporation announced  that the Santa Ynez Valley Association of REALTORS® (Solvang, Calif.) has merged with the Central Coast Regional MLS (CCRMLS, central Calif.) to complete a successful implementation using the Rapattoni MLS for its 380 MLS participants.“We are extremely pleased with how smoothly the merger went,” said Association Executive Janet Sherman. “The Rapattoni staff has been wonderful to work with, from the implementation team to the support personnel. Their outstanding support and training made the implementation of our new MLS system simple. Our agents are excited about the many new features that the Rapattoni MLS provides.”

“We worked closely with the Santa Ynez and the Central Coast Regional MLS executive staff to coordinate the conversion of Santa Ynez’s previous MLS data into the Rapattoni MLS with outstanding results, using the same MLS architecture as CCRMLS,” said Andy Rapattoni. “We truly appreciate all the compliments and kind words that we’ve received from the Santa Ynez Valley Association staff and membership.”

About Rapattoni
Rapattoni Corporation has been serving the real estate industry under the same name and management for 37 years. The company provides an array of integrated products and services for real estate associations and MLS organizations including Internet MLS systems, Association Management software (AMS), and Secure Logon with Single Sign-On identity portals for online security and convenience. The company’s MLS products are serving about 300,000 agents nationally and its association management customers represent more than 85% of the nation’s Realtors®. Rapattoni’s headquarters are located in Simi Valley, California.

For more information contact Public Relations at (800) 722-7338, or visit the company’s Web site at http://www.rapattoni.com/.