E-Newsletter November 2018
In This Issue
Welcome to our e-newsletter "The Real Estate Corner." This newsletter is sent out the first week of every month. We wanted to provide a newsletter that provides current information on the real estate market, economy, tax tips, and more! In addition, there are some fun things like golf tips, and recipes for your pleasure. We hope you find these to be useful. If you wish not to receive this newsletter in the future, you can unsubscribe at the bottom. Enjoy!

What Your Financial Advisor Won't Tell You About..... Real Estate IRA!

You've heard it before for many years, "Buy low, sell high" The stock market has hit several all- time highs and is now heading towards a possible correction. As a registered investment advisor, I make a part of my living offering financial advise and offer diversified portfolios of stocks, bonds, mutual funds, and ETF's. I have a team of money managers to assist me. Therefore, I can spend the better part of my time on my real estate practice. I believe real estate can be a very solid investment to own over time.

During the last recession, most investors lost a great deal (on paper) of their portfolios and retirement accounts. During this time, the markets continued to spiral downward hitting lows at a rapid pace. The Dow Jones Industrial Average hit 6,443.27 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high. Most of my investors took my advice during this time to stay the course. Eventually the markets would come back and then some. Today the DOW has topped nearly 27,000, currently just over 25,000.

I had met many investors from 2008-2009, (not my clients) mostly self-money managers, who came to me for advice after they had already sold off their investments at a loss. The stock market is paper money. It is not a tangible. Investing requires two important items diversification and discipline. If anyone of these investors had a part of their IRA invested into a Real Estate IRA, with a tenant paying rent (commercial or residential), most likely would not have sold off during this time. Why? Because they would have an income still coming in, and real estate is not "liquid" like other investments. Ironically, dividend stocks work the same way but some investors panic and sell off when they lose value.

Most brokers and investment advisors will not recommend investing your retirement directly into real estate. This is partially due to the fact that they cannot generate any commissions if your money is invested directly into real estate. Good thing about a self-directed IRA is that is you save on ongoing loads, fees, commissions,etc. on these types of investments. An alternate is a REIT (real estate investment trust) sold through most brokers and advisors. These high commission investments are generally sold with the promise of steady dependable income, steady or increasing value, and with little discussion of the fact that the investment cannot be sold on any conventional exchange. I prefer an investor to be in control of their investments. When setting up a self-directed IRA, you choose the investments. In a REIT, the managers choose this for you.
When investing into a self- directed IRA, you are 100% in total control of your real estate investment. However, the IRS has very strict guidelines that you will need to know and follow. You need to make sure you have the proper custodian holds your IRA funds, (some of the institutions will insure them through FDIC) and you will need to understand how you can generate income with the real estate once your IRA purchases the property. If you would like to know more about a "Real Estate IRA", please feel free to contact me.

*This is not an investment recommendation. You should consult with a registered investment advisor or broker for further information and/or prospectus.

Should I Invest Into A Home Warranty?

A home warranty can be a significant investment if you are purchasing or selling your home. Most home warranties basic packages range between $350 to $500 per year and require an flat service call (approx. $50-$100) fee for each repair, while home repair expenses without a warranty may costs hundreds or even thousands for every repair needed. Home warranties are popular among real estate transactions, as new homeowners want peace of mind that important repairs will be covered in their new investment, and sellers want to assure potential buyers that their home will be taken care of. Some of the home warranty companies will cover your home will it is "actively listed." This allows sellers have their own level of protection.
Buyers are most likely going to hire a home inspector after the purchase price has been negotiated. A typical air conditioning unit in Florida has a life of 10-12 years. If you have an older "functioning" air conditioner, it will most likely give comfort to the buyer knowing that you have offered to pay for the first year's warranty to include the a/c, pool pump, hot water heater, garbage disposal, and much more for $500 buck!
If the seller does not offer this within the purchase, you can negotiate this into the contract of purchase. In the end, if the sellers don't purchase the warranty, it is well worth the money for your protection.
River Strand Community- October Updates

In the month of October, 8 properties were sold in River Strand community ranging from $173,500- $875,000. Currently there are a total of 32 properties available including single family homes, coach homes, villas, and condominiums available to purchase from $185,000 to $879,000 .

If you reside in the River Strand community, be on the lookout for my monthly newsletter, which will provide further details of our beautiful real estate community. It will include market trends, local vendors, and much more!

If you, or you know someone who is looking to buy, sell, or invest into real estate in the near future, please contact us at Keller Williams On The Water. Michelle and I appreciate the opportunity to assist you with all your real estate needs!

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

"Time well spent results in more money to spend, more money to save, 
and more time to vacation."
-  Zig Ziglar

Healthy Homemade Carrot Cake
Serves 12 

For Cake 
  • ½ cup unsweetened applesauce
  • 1 cup unsweetened almond milk
  • 2 teaspoons pure vanilla extract
  • 1 cup granulated sugar
  • ½ cup coconut oil, melted (can substitute canola oil)
  • 2 ¼ cups cake flour
  • 3 teaspoons baking powder
  • 1 teaspoon baking soda
  • 3 teaspoons cinnamon
  • ½ teaspoon nutmeg
  • 1 teaspoon salt
  • 2 cups grated carrots, medium packed
  • ½ cup chopped raisins (optional)
  • ¼ cup chopped walnuts (optional)

For Frosting 
  • ½ cup dairy free cream cheese (such as Toffutti)
  • ½ cup vegan butter, softened (such as Earth Balance)
  • 1 teaspoon vanilla extract
  • ¼ cup all-purpose flour (soy flour works great, too!)
  • 2 cups confectioners sugar
For Cake 
  1.  Heat oven to 350°F.
  2. Grease lightly and flour two 9-inch round cake pans or a 9x11-inch baking pan. Set aside.
  3. Mix applesauce, milk, vanilla, sugar, and oil together in a large mixing bowl.
  4. Whisk cake flour, baking powder, baking soda, cinnamon, nutmeg, and salt together in a separate mixing bowl.
  5. Mix dry and wet ingredients together until combined.
  6. Add in carrots and (optional) chopped raisins.
  7. Bake 20-30 minutes (or until a toothpick inserted in the cake's center comes out clean).
  8. Put on wire rack to cool for 10 minutes.
  9. Let the cake cool completely before adding frosting.

For Frosting 
  1.  As the cake is cooling, use an electric mixer to beat cream cheese and butter together until the mix becomes smooth and creamy.
  2. Add the vanilla extract and continue beating until it is combined.
  3. Slowly add flour and confectioners sugar and continue to beat on high until it is light and fluffy.
  4. Continue to add sugar until the frosting reaches the desired consistency.
  5. Cool the frosting in the refrigerator for 20 minutes before applying it to the cake.
  6. Frost the top of one cake. Place the second cake on top. Continue to layer frosting on the rest of the cake.
  7. Sprinkle the chopped walnuts on the cake if desired.
  8. Put in the refrigerator.
Recipe adapted from Bakerette [11]
What Do the Different Filing Statuses Mean?*

What are you? That may sound like a trick question, but we're talking taxes. The IRS provides five different filing statuses: single, married filing jointly, married filing separately, head of household, or qualifying widow(er) with dependent child.

You can only choose one, right? No, not necessarily.

Is it important which filing status you claim? Yes, it's very important. Your status will determine how much taxes you'll have to pay.

Ideally, you should choose a category that allows you to pay the least amount in taxes.

So, what do the different categories mean, and which one should you choose?
  • Single: Use this if you are not married or are divorced or legally separated under your state law.
  • Married filing jointly: If you're married, you can file a joint return with your spouse. If your spouse dies, you can file in this category during the year of your spouse's death.
  • Married filing separately: If you're married, you may file two separate returns. This may allow you to pay less taxes. However, if you're interested in this option, you should try preparing your taxes both jointly and separately (before filing) to determine which one allows you to pay less taxes. This may also work if both you and your spouse want to retain individual responsibility for each own's taxes.
  • Head of household: You may use this filing status if you're not married (in most cases). The IRS has special rules for using this one; you may use this if you paid more than half of the costs for upkeeping the home where you and a qualifying person live.
  • Qualifying widow(er) with dependent child: You can use this status if your spouse died in the previous two years and you have a dependent child.

Check the IRS rules carefully to determine your filing status: https://www.irs.gov/help/ita/what-is-my-filing-status.

Other details may apply, and you can find more information on the IRS website.


* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Tip adapted from IRS.gov[12]
Don't Fret Over the Uphill Putts

The good news: You've landed the golf ball on the green. 

The bad news: The hole is about 50 feet away. And it's uphill.

The first scenario: You make a short, punchy putt, and the ball doesn't make it even half the distance to the hole. Then it rolls back downhill about a dozen feet back toward you.

The second scenario: You make a longer, smoother putt, hoping to surmount the hill. With the added force, your ball rolls smoothly and confidently over the hill and right past the hole.

The third (and ideal) scenario: You knock the ball with a little more force to create the additional speed and you accomplish your goal. It rolls in or near the hole. Success!

The trick: Create the necessary speed by taking a stable address position with a wide stance. Hit the ball with a longer (but not harder) stroke. The stroke should feel smooth, unhurried.

To get a better frame of reference, imagine you're attempting to hit a draw. This visualization helps to eliminate spin, sometimes the main culprit behind wayward, wandering balls.

To accomplish this, lower your trail shoulder slightly, which is your right one for right-handers.

By incorporating a few simple alterations into your stance and your putt swing, you may be able to eliminate the first and second scenarios in favor of the third.

Tip adapted from GolfDigest[13]
Wrestling with Arthritis

Degenerative arthritis (osteoarthritis) usually produces symptoms of pain and stiffness in your joints. Rheumatoid arthritis and gout are among the more than 100 types of arthritis, which is sometimes referred to as joint inflammation, joint pain, or joint disease.

Arthritis often affects the joints in your wrists, knees, hips, or fingers. It can also involve your connective tissues and organs. 

Arthritis afflicts about 20% of adults but is more common in older people. While its cause is unknown, certain conditions and lifestyles can exacerbate or increase the likelihood of developing arthritis. Here are some important factors about the condition:
  • Age: Older, worn joints may be more prone to arthritis.
  • Gender: Women are more likely to get the disease.
  • Extra weight: The stress on your knees and other joints puts you at a greater risk.
  • Injuries: Joint damage can lead to arthritis.
  • Infection: Joints infected by bacteria, viruses, or fungi can become arthritic.
  • Work: Hard, physical labor, especially involving knee bends and squats, makes you more susceptible.

Symptoms of arthritis include:

  • Swollen or stiff joints
  • Red or warm joints
  • Tenderness
  • Difficult movements

Seek medical attention if occasional joint pain or stiffness doesn't go away or gets worse. Your doctor may recommend medications, physical therapy, splints, weight loss, or, in rare cases, surgery. 


Health-care experts recommend arthritis sufferers educate themselves to help incorporate self-care routines into their schedules. 


The best advice may be to start exercising, which may help reduce pain, increase mobility, and postpone disability.


Tips adapted from WebMD[14]

Timber! Wasting Tissue and Paper
Following the paper trail is easy in the United States. The average American uses 50 pounds of tissue per year.

To reduce your use of paper (tissue in particular), look for post-consumer recycled material. Get either 100% recycled or FSC-certified tissue. (FSC stands for Forest Stewardship Council.)

Go with e-billing to help reduce paper waste. Paper bills produce nearly two million tons of CO2.

Plant a tree. One tree can absorb about a ton of carbon dioxide during its lifetime.

Paper and tissue comprise the largest percentage of municipal solid waste. An American office worker uses, on average, 10,000 sheets of copy paper per year.

To reduce paper waste, print on both sides of sheets .

Tip adapted from World Wildlife Fund[15 ]
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