If you are a customer, the agent has no fiduciary duty to you. As a client, they do. Technically, if you are a customer & the agent is showing you homes, their fiduciary duty is to the Seller. If you have a Buyer’s Rep Agreement in place & are therefore a client, the agent is required to disclose, negotiate, operate and otherwise work on your behalf.

Unlike a client relationship, the brokerage does not owe a customer the duty of confidentiality – only honesty and fairness. However, a brokerage can still provide many valuable services to a customer. A buyer/tenant who chooses to be a customer must understand that “their” agent legally works for the seller as a sub-agent and owes the seller confidentiality. Therefore, anything a buyer says to “their” agent, while believing it’s being said in confidence, must be relayed to the seller. In the vast majority of cases, the buyer elects to be represented as a client since it’s in their best interests to do so.

A Buyer Representation Agreement is a legal document that formalizes your working relationship with a particular buyer’s representative, detailing what services you are entitled to and what your buyer’s rep expects from you in return. While the language used in the document is formal, homebuyers should view it as an important and helpful tool for clarifying expectations, developing mutual loyalty, and most importantly, elevating the services you will receive.

Receive a higher level of service. If you’ve formalized an agency relationship with a buyer’s rep, you can expect to be treated like a client instead of a customer. What’s the difference? Clients are entitled to superior services, relative to customers. While the details vary from state to state, and from one buyer’s agent to another, you can generally assume that being a client means that you’ve formed a fiduciary, or agency, relationship with your buyer’s rep.

Get more without paying more. In almost every case, home sellers have already agreed to pay a buyer’s agent’s commission. If they haven’t, you can ask your buyer’s rep to avoid showing you any such homes. Or you can still view the home, knowing that you’ll need to factor your agent’s commission into any offer you may write.

Avoid misunderstandings. A Buyer’s Representation Agreement clarifies expectations, helping you understand what you should and shouldn’t expect from your buyer’s rep, and what they will expect from you, which usually centers on loyalty.

Agency relationships are based on mutual consent. While most representation agreements specify a time period, they can be terminated early if both parties consent. Most buyer’s reps are willing to end the agreement early if the working relationship isn’t going well. Some buyer’s reps also offer representation agreements for as little as one day, for the purpose of giving both parties a brief trial period to explore working together.

Strength as a team. When you and your buyer’s rep work together within a formalized agency relationship, you have created a team dedicated to helping you achieve the best possible home-buying experience.

While the fiduciary duty really is the main reason to sign a Buyer’s Rep Agreement, having one in place will also provide you with many benefits during your home search & purchase.

You are able to get a better idea of the scope of services the broker/agent owes you as a client, as they are outlined in the agreement & discussed at time of signing.

You will be treated as a client instead of a customer, therefore being entitled to superior services.

With full attention, accountability & disclosure from your buyer’s rep, your best interests will be top priority during your search, negotiation & closing.

With a formalized agency agreement in place, you & your agent will be working as a team to make your home buying process a positive experience with positive results.

Even though the language in the Buyer’s Representation Agreement does feel very formal, it is actually designed to work in your benefit and ultimately makes for a better home buying or renting experience.

It depends. Agency relationships are based on mutual consent. While most Buyer’s Representation Agreements specify a time period, they can be terminated early if both parties consent. Most buyer’s reps are willing to end the agreement early if the working relationship isn’t going well. Some buyer’s reps also offer Buyer’s Representation Agreements for as little as one day for the purpose of giving both parties a brief trial period to explore working together. Generally, I put it place with my clients and agreement no less than six months and many times as long as one year, especially, with first-time homebuyers that may take longer to procure a home.

The Accredited Buyer’s Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded by the Real Estate Buyer’s Agent Council (REBAC), an affiliate of the National Association of REALTORS®, to real estate practitioners who meet the specified educational and practical experience criteria. I have earned the ABR® that demonstrates to my peers and clients my commitment to providing outstanding service for real estate buyers.

Since 1921, U.S. tax law has recognized that the exchange of one investment or business-use property for another of like-kind results in no change in the economic position of the taxpayer, and therefore, should not result in the immediate imposition of income tax. The exchange rules permit the deferral of taxes, so long as the taxpayer satisfies numerous requirements and consummates both a sale and purchase within 180 days. Real estate investors and commercial real estate practitioners place a very high priority on retaining the current like-kind exchange rules.

A 1031 exchange is a way to sell an investment property and defer the capital gains tax by purchasing another property of “like-kind.” Here are the main rules all investors should understand:

While the law says the exchange property must be of like-kind, the definition is pretty broad. An investor can sell a single-family home and exchange it for a multifamily property, office building, or industrial building and vice versa. Some real estate investment trusts (REITs) and Delaware statutory trusts (DSTs) also are allowed, but not all. The most important rule is that exchanges can only be for investment purposes and not for personal use, and the funds must never be deposited into the investor’s personal bank account. It must all go through a third party 1031 exchange intermediary. The seller has 45 calendar days to identify the replacement property, and the exchange must be completed no later than 180 days after the sale of the original property OR the due date of the income tax return (with extensions) for the tax year in which the relinquished property was sold, whichever is earlier. The value of the replacement property and loan amount must be the same or higher than the sold property. Also, the entire property must be used for investment purposes; a primary residence is not allowed—even if some rooms are rented out. However, under some circumstances, the replacement property can eventually be used as a primary residence at some point in the future.

1031 exchange rules are strict, and even a small mistake can jeopardize the deferment of capital gains taxes. First and foremost, I recommend my investor clients should speak with a 1031 exchange company to make sure they are getting the right advice for your situation before making any offers.

It depends, but financing will generally give you a much higher return. You will need to make sure to calculate all potential expenses plus 5 percent of rent set aside in a reserve fund for future maintenance and vacancies. I also highly advise that investors set aside at least six to 12 months of the projected rental amount into a reserve fund. This will help pay for expenses in the case of vacancy or evictions. Even if there are occasional evictions or rogue tenants, after 30 years, renters will have paid off that loan for you, the investor, and you will own that property free and clear. Minor blips are to be expected along the way, but in the long run, investors are creating enormous wealth. Imagine if you used conventional financing and were able to buy 10 homes. Those could be paid off in time for retirement.

The answer is yes, you can borrow against your 401(k), but make sure you understand the rules. You will have to pay that money back within a set timeframe or else they will pay penalties.

In order to use an IRA or 401(k) to invest in real estate, the investor must work with a self-directed IRA company that acts as a custodian or third party administrator. The IRA funds must always be handled by the custodian, never the investor. Any real estate purchase must be used for investment purposes only. For example, you can't buy a vacation home and then use it personally. The investor also can't be actively involved with the property—meaning he or she can't bang a nail or paint a wall on a property owned by their IRA. They must remain a passive investor and direct others to do the work for their IRA. There are massive penalties for violating these rules. With that said, billions of dollars are transacted in self-directed IRA accounts, and it is totally legal to purchase property within an IRA or 401(k).

The short answer is that you can self-direct your IRA or 401(k) to buy real estate, but you must speak with a custodian first to fully understand the rules.

Some custodians you can research are Broad Financial, The Entrust Group, Equity Trust Company, NuView Trust Company NuView IRA and U-Direct IRA Services.

The capitalization rate (cap rate) is the ratio of Net Operating Income (NOI) to the asset value. NOI is the income generated after deducting all expenses. Simply put, you calculate your return by subtracting all expenses from all income, and then dividing that number by the current value of the property.

Cap Rate = Net Operating Income / Price

People are often shocked to learn that they can qualify for up to 10 investor loans through conventional banks. Those 10 loans can be used to purchase one- to four-unit properties. The investor will need a down payment of generally 20 to 25 percent for each property and approximately six months’ worth of reserves in place in order to qualify. However, he or she can use a portion of the rental income to qualify. These can be 30-year fixed-rate loans, which are recommended today given low interest rates.

If an investor wants to buy residential property with more than four units or a commercial property, he or she can apply for a commercial loan. These are generally shorter-term loans, though some long-term debt is available today. Investors need to be aware that if they obtain a short-term loan on commercial property, rates could be higher at the time they need to refinance or pay off the balloon note. This can radically affect the net operating income (NOI), which could force the investor to put more money down. Investors should always have a back-up plan when taking on short-term debt.

I recommend that my investor clients speak with a lender and get pre-approved for financing before we start looking at properties.

Most landlords need help, especially if you don't know the local tenant laws or how to fully screen renters.

Good property management is the key to success for you as an investors. I recommend that that the property manager you choose should be fully licensed within the state of your investment and have at least a two-year track record of solid business experience. They must have a thorough tenant screening process, as well as a system for dealing with late payments or delinquent tenants. With today's technology, every property manager should use a software that allows you, the investor, to see what's happening in real time with their property for full transparency. You should always review the management agreement to make sure you understand the property manager’s terms.

Homestead exemptions remove part of your home's value from taxation. If you want to receive a homestead exemption for the taxes on your home, the home must be your principal residence on January 1 of the year in which you are applying. This is something only the homeowner can apply for and use.

To submit an online homestead application, you will need the owner ID and pin number on you Notice of Appraised Value. Then visit: https://www.traviscad.org/eservices/

The annual property tax process in Texas consists of two factors: the property's appraised value and the tax rate. For more details read: https://www.linkedin.com/pulse/hidden-property-tax-christine-wren/

Property taxes help pay for infrastructure and services provided by each local taxing entity. The largest portion of your property-tax bill likely goes to your school district. More than half (53.7%) of all local property taxes paid by Texas property owners in 2015 were levied by school districts, according to the Texas Comptroller's most recent Biennial Property Tax Report. To learn more: https://www.linkedin.com/pulse/hidden-property-tax-christine-wren/

Texas properties are in high demand, which translates to increased market value and higher appraisals. And because appraisals are one factor that influences a property owner's property-tax bill, some people may want to attribute to the rise in property taxes to higher property values.

This variable plays a key role in determining property-tax equation: the tax rate. Tax rates aren't being lowered enough to offset higher property values, and stating again, an increase in property value should not be an automatic increase in property tax revenue. A more honest and transparent conversation needs to occur so taxpayers completely understand why more tax revenue is needed.

You may even hear local elected officials saying, "We haven't raised your taxes." That's not exactly true. While they may have kept the tax rate the same or even lowered it slightly - if local taxing entities aren't adopting the effective tax rate, property-tax bills will go up due to higher appraisals. To learn more read: https://www.linkedin.com/pulse/hidden-property-tax-christine-wren/

As most property taxes in Texas keep going up because appraised values are rising so quickly there are some actions you can take.

Communicate with your state legislators about passing legislation to remove the Hidden Property Tax.
Look up your appraised value and tax rate for your property. Protest your tax appraisal value, if appropriate.
Attend public hearings for the upcoming tax year's tax rate hearings, generally August and September.
Make sure you have taken advantage of all the exemptions allowable to you.

https://www.linkedin.com/pulse/appraised-values-rising-quickly-actions-you-can-take-wren/

The Texas Association of REALTORS® believes that local taxing entities have been relying on increased appraisals to generate revenue rather than making adjustments in their tax rates to compensate for higher values.

When local taxing entities hide behind increased appraisals to fund their increased budgets, we call this the Hidden Property Tax.

Local taxing entities may need to increase their services, and that takes additional funds. However, a more transparent process should take place to inform taxpayers about why these funds are needed rather than just allowing property-tax bills to increase automatically.

"If local taxing entities aren't adopting the effective tax rate, property-tax bills will go up due to higher appraisals."

Both Gov. Greg Abbott and Lt. Gov. Dan Patrick have said it’s a priority to pass legislation requiring local governments to hold automatic tax rate elections whenever they have proposed property revenue increases over a certain threshold. To learn more read: https://www.linkedin.com/pulse/hidden-property-tax-christine-wren/

If you want to see your appraisal and tax assessment for your property you can currently go to Appraisal Lookup for Bell, Bexar, Brazoria, Dallas, Denton, El Paso, Fort Bend, Galveston, Harris, Hidalgo, Jefferson, Lubbock, Montgomery, Nueces, Tarrant, Travis, and Webb properties. More counties are going to be added soon. You can also sign up for email updates to be notified when properties from other counties are added to the site. For more information: http://hiddenpropertytax.com/appraisal-look-up/

There are many excellent reason to enjoy a complete change of scenery during your retirement years. However, there are also many issues to evaluate before selecting a destination and making a move. Carefully consider all the questions "Ready to make a move?" page to help ensure you'll love your retirement country and home.

There are some restrictions, in terms of sending payments to a small number of countries. Visit: https://www.ssa.gov/international/61-011.pdf for complete details.

Medicare insurance does NOT extend outside the U.S.

Most U.S. issued private health insurance policies do not cover living abroad.

You should always consult with a tax and immigration attorney to discuss individual circumstances.

Some countries are quite welcoming , even offering incentives to v encourage retirees to put down roots (and contribute to the local economy). The U.S. Department of State is one of the best places to begin online research, regardless of your base of operations. Its Travel.State.Gov website includes information on obtaining U.S. visas, as well

It is a condominium complex in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.”

http://www.austintexas.gov/FloodPro/