You are going to rent out your home or condo.  Besides having a great lease, you need to screen your tenants.  Here are three great options I’ve discovered in my own rentals and working with investor clients.

SmartMove by TransUnion : www.mysmartmove.com

• Online for both the landlord & tenant

Washington Landlord Association : www.walandlord.com

• Great research – you should be a member of this non-profit!
• $15 tenant screenings!

Rental Research Inc. : www.researchinc.net

• Great local, Federal Way company with friendly & experienced staff

Urban Abode Group, A Top Producing Realty Team in Seattle has had sales more than triple in 2011

 Matt Warmack, founder of Urban Abode Group within the Keller Williams Greater Seattle office has witnessed phenomenal growth during 2011.  The strong sales have allowed Urban Abode Group to add three new members to the group in 2011.

Urban Abode Group is proud to announce their newest Team Members.

Bob Boyd, formerly of Windermere joins Urban Abode Group as a partner.  Bob began his real estate career notably in 1978.  He served as a Premier Homes Director for the NW area offices specializing in view and luxury homes from Magnolia to Edmonds.  Bob is joining the prestigious Keller Williams internal Luxury Home Division, which helps relocate and refer high end clients directly to agents. 

Matt also welcomes Ginny Matthews as a partner to Urban Abode Group.  Ginny has sold real estate for over a decade specializing in the neighborhoods that make Seattle a unique place to live.  Ginny provided a creative eye for Urban Abode Listings with her background in Design & Staging helping listings hit the market in their best light.

Jennifer Daniels also joins the Group as Director of Concierge Services from Keller Williams in California.  She has been in Executive Management at two California Keller Williams franchises and is expert in her field of growing real estate team business.

Urban Abode Group closed 42 transactions for over $18 Million in Residential Sales in 2011 placing it in the top ten regional teams for Keller Williams Northwest.  Urban Abode Group is an owner in the Keller Williams Greater Seattle franchise that has closed over $300 Million in transactions in 2011.  In this down market, despite the negative attention the real estate market continues to receive, Matt Warmack’s residential real estate group reflects the current market is strong for select real estate teams.

Seattle Real Estate Market Update

Interest rates continue to stay low…Interest rates can have huge impact on your monthly mortgage payment, so with rates staying below 4% many first time home buyers, move up buyers and investors are taking advantage of historically low interest rates.  Purchasing power is a lot higher for home buyers with low interest rates.  This means homes that are priced right are selling quickly!  We constantly hear about falling home prices, but interest rates play a major factor in the housing market.

Great properties continue to sell FAST…and have continued to sell fast through the winter and holidays.  With so many distressed properties hitting the market regular sales are very much in demand.  This is great for sellers who are not selling short.  As a seller this should give you reassurance that if home is well maintained and updated, especially in a desirable neighborhood you will likely have a strong & fast offer in the Seattle Metro Area.  Many well priced properties are currently receiving multiple offers.  The outlying areas of Seattle are having a tougher time recovering.

Bank owned and short sales are still losing value…as a buyer this is good news because deals are still available.  Don’t let this scare you from getting into a good property though, because again, interest rates make what you can afford more attractive than ever – creating a lot of value for you in the future.  Buying a bank owned or short sale in a desirable neighborhood and putting in a little money to fix it up will add significant value to your home, because standard sales that are well maintained are sought after!  Many buyers don’t want a project.

The rental market was red hot throughout 2011…but has flattened out in the winter of 2011 due to the low interest rates pushing first time home buyers into the market because it is now cheaper to buy than rent in some City of Seattle neighborhoods and areas just outside of Seattle.  Due to the tax advantage of owning a home as opposed to renting – the value becomes even better for the rent versus buy calculation.  Landlords and investors should follow the in-city apartment building closely and make wise decisions.  Many investors continue to scoop up deals in all areas of metro area as they feel it’s a great time to purchase – which is another factor in keep the housing inventory low right now.

The farther out you go, the harder hit the market is… the days on market and the percentage in price drop from the height of the market is hitting the further out areas more than it’s hitting the great neighborhoods of Seattle & the eastside communities close to Microsoft.

[In a continuing series of articles, Warren L. Baker is writing on the topic of “self-directed” IRAs – from the basic formation process to the complex tax and legal ramifications involved when investing using these structures.]

In my last article, The “Self-Directed” IRA – Part 1: Formation, I began to discuss a method of investing retirement assets into “alternative” types of investments (e.g. real estate, promissory notes, mortgages, tax liens, privately-held businesses, precious metals, etc.) using a specialized type of IRA custodian.  Many of these self-directed IRAs are used to purchase 100% ownership of a newly-formed Limited Liability Company (“LLC”), which can greatly reduce the involvement of the IRA custodian (read: decreased transaction costs).  The reason for this is that the LLC operates almost entirely out of a business checking account, with the “Manager” of the LLC (i.e. the account holder of the IRA) being the authorized signer on the account.  However, as I will discuss in my Part 3 article, “prohibited transactions” are a big concern because the account holder has a lot of power over the IRA/LLC’s assets.

One question that people ask me on a regular basis is WHY a client would invest in this manner.  Based on hundreds of conversations I have had with individuals and groups of investors, these “self-directed” IRA structures seem to be growing in popularity due to many different factors, including:

(1)   Many people have a general distaste for “traditional” stock market investments.  Many clients start our first conversation with a statement like, “I hate the stock market.”  Amazingly, my experience is that clients have this same preconceived notion regardless of whether the stock market is going up (e.g. 2009, 2010) or down (e.g. 2008).  Personally, I don’t take a position on whether a client should be invested into the stock market – that is a job for the client’s financial advisor. 

(2)   Stock market volatility drives many people crazy.  I was speaking with a financial advisor colleague recently that told me a story that fits well with this idea.  The advisor was investing $1,000,000 for a client in the late-90s.  The particular year in question, the advisor achieved a 35% return despite the market appreciating by 25%.  Despite this result, the client removed all of his funds.  When the advisor asked why the client was removing his funds, the client said that he “drove himself nuts watching the daily ups and downs of the market” despite a very good yearly return.  The ability to go online and see the value of your retirement assets on a minute-by-minute basis is a stomach-churning experience for many people – and the increased volatility of the market over the past few years has made the problem worse.

(3)   Diversification.  Many clients will use only a portion of their current retirement assets to fund a new self-directed IRA and/or fund the new IRA with only their Traditional or Roth assets.  As I will discuss in more detail in future articles, I believe the plan of not having “all your eggs in one basket” is particularly important in these structures.  For example, if the client needs to take regular personal distributions from his or her retirement assets, self-directed IRA structures can result in liquidity problems (e.g. only illiquid assets like real estate are held within the structure).  Also, in general, the more a client needs to filter money through the self-directed IRA custodian, the more transaction fees are involved.  Finally, if the client triggers a “prohibited transaction” and his or her IRA becomes invalidated, the pain will be much worse if the client has all of their retirement funds within the self-directed IRA.  This is because the entire IRA (not just the amount involved in the transaction) is treated as distributed to the client if a prohibited transaction occurs.

(4)   Clients want to base their retirement future on assets they can “see and touch”.  Clients tell me on a daily basis that they feel more comfortable having some (or all) of their retirement assets invested in something “tangible”.  This idea is normally interrelated to the “stock market fears” described above.  However, many of my clients have been very successful investing their personal funds into “hard assets” (e.g. real estate), so there is a natural tendency for these clients to lean forwards these types of investments within their IRA as well.

(5)   Many clients, particularly individuals who have been involved in real estate investment personally, feel that there are a lot of real estate opportunities right now.  This is particularly the case because self-directed IRA structures often purchase properties using all cash – meaning that a tight credit market can actually be helpful (i.e. less competition).  Clients often tell me that they know a lot of people that “need cash right now”, which results in various real estate and lending opportunities.

The second question that people ask me about self-directed IRAs is: WHAT are my clients investing into using self-directed IRAs.  Of course, because of attorney-client confidentiality, I cannot disclose names or specifics.  However, as a general matter, the following are the most common categories of investment strategies that my clients employ:

(1)   Real estate.  Within the general category of “real estate”, the most common investment is all-cash purchases of residential rental properties, which are then held “long-term” as passive investments.  As I will describe in a future article, using debt-financing in these types of transactions is possible, but can be tricky (for example, the debt must be “non-recourse”).  Also, purchasing real estate with the intension of developing or “flipping” it can lead to current taxes to the IRA.  I have also had clients invest into all of the following types of real estate: commercial property, raw/vacant land, condominiums, trailer parks, and vacation rentals.

(2)   Loans / Promissory Notes.  These investments generally involved the self-directed IRA loaning money to an individual or business entity in exchange for points and interest.  One positive aspect of loans is that the income is tax-deferred to the IRA (however, situations where the loan is actually for “disguised equity” in an active business can lead to a current tax to the IRA).  Of course, the biggest downside of loans is that borrower occasionally defaults, which can leave the IRA witl little or no recourse (depending the client’s ability to secure the IRA’s loan at the outset).

(3)   Privately-held businesses.  A self-directed IRA can invest into privately-held businesses, but clients need to be aware of numerous potential issues.  The type of business entity involved (e.g. Limited Partnership, LLC, Corporation, etc.) can impact the tax consequences to the IRA.  Also, the client’s (or their family’s) personal involvement in the business needs to be examined closely.  Because an IRA (or IRA-owned LLC) is not an allowable “S” corporation shareholder, investments of S Corps are not an option.

(4)   Precious metals.  One of the general limitations on IRAs is that they are not allowed to invest into “collectibles” (e.g. artwork, rugs, wine, rare coins, etc.).  However, certain types of coins and bullion are excluded from the definition of collectibles.  Thus, it is possible for an IRA to own precious metals, but the manner in which these metals are held must be considered.  An IRA (or IRA-owned LLC) can also own commodities through a traditional securities account.

(5)   Publicly-traded securities.  The idea of investing an IRA into publicly-traded securities is certainly nothing new – and it might seem counter to some of the reasons why clients form self-directed IRA structures in the first place (see above).  However, many clients I speak with form IRA-owned LLC structures where the LLC subsequently forms a brokerage account.  From there, the Manager of the LLC invests into a wide variety of publicly-traded investments on behalf of the LLC.  Clients often complain that their “old” retirement account (e.g. a former employer’s 401(k) plan) did not allow a diverse array of investment options and the self-directed IRA/LLC structure provides them the additional benefit of more “traditional” investment possibilities.

Next up: Part 3 – Prohibited Transactions…

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DISCLAIMER: The above information is for educational purposes only and does not constitute legal advice.  Under no circumstances shall this correspondence create an attorney-client relationship.

[Over the next several months, attorney Warren L. Baker will be posting an article series he wrote on investing retirement funds into "non-traditional / alternative assets" (e.g. real estate) using a "self-directed IRA".]

To start with, what is a “self-directed IRA”?  The vast majority of people that have a retirement plan, whether it’s in the form of an IRA, 401(k), 403(b), etc. have their money invested in “traditional” types of investments, e.g. stocks, bonds, mutual funds.  However, the general rules governing an IRA allow for any type of investment except for investments into “life insurance contracts” and “collectibles” (e.g. rare coins, antiques, wine, etc.).  The most common investments for self-directed IRAs include real estate, loans, tax liens, and privately-held companies.  That sounds great in theory, but in order for an account holder to actually invest retirement funds into assets outside of the stock market the account holder will need his or her retirement plan custodian to allow this type of investment.  In other words, the financial institution that holds the retirement account must be willing and able to facilitate the investment or the account holder is out of luck.  The reality is that most large financial institutions have traditionally not allowed investments outside of publicly-traded securities.  Thus, one of the first steps in the process of forming a self-directed IRA is generally to “roll” or “trustee-to-trustee transfer” some (or all) of the retirement account to a new IRA custodian.  But before we get to that issue, a few other steps will need to occur.

Step #1 – Can the funds be moved?: Prior to selecting a new IRA custodian (discussed more in Step #2), the retirement account owner needs to determine whether his or her retirement account is even eligible to be moved from its current location.  For example, many 401(k) plans significantly restrict the movement of money while the retirement account owner is still working for the company that sponsors the plan.  In other words, if the 401(k)’s underlying “plan document” will not allow the account owner to move their money, transferring funds into a self-directed IRA might not be possible (at least until a “separation from employment” occurs).  This is an issue that the account owner needs to resolve with their current plan administrator.  In general, if the current retirement account is structured as an IRA (or a 401(k) from a previous employer) it can be moved (in whole or in part) to a new custodian without incurring current tax consequences. 

Step #2 – The new custodian: Once the account holder determines that they are eligible to move some (or all) of their retirement funds, they need to select a self-directed IRA custodian.  Often, an experienced professional will help in this selection process.  Although there are an increasing number of IRA custodians that are willing to hold “non-traditional” IRA assets, there are dramatic differences between these custodians.  Some custodians offer very minimal customer service, but have lower fees.  Other custodians claim to offer the opposite.  Another issue to consider is whether the custodian will allow the IRA to purchase a Limited Liability Company (“LLC”), which could be important if the client wants maximum control over the structure (see Step #4). 

Step #3 – Rollover or transfer?: After setting up a new self-directed IRA, the structure needs to be funded, which can be done in one of two ways.  One option is for the account holder to request a “rollover” – meaning that the old retirement plan administrator sends a check to the account holder that is made out to either the account holder personally or the new IRA custodian.  The account holder must then deposit the check into the new IRA within 60 days.  If the client fails to deposit the check in time, the entire amount will generally be treated as a taxable distribution.  The second option involves the account holder requesting a “trustee-to-trustee” transfer – in which the funds move from the old custodian to the new custodian without the client coming into physical possession of the funds.  For numerous reasons, the second options is preferred in most cases.

Step #4 – IRA or IRA/LLC: Let’s assume for a moment that the account holder’s goal is to invest into a piece of residential rental real estate.  Once the new self-directed IRA is funded, the account holder needs to decide whether he or she is going to invest the money directly out of the IRA (i.e. the IRA custodian buys the property on behalf of the IRA) or whether the IRA is going to purchase an LLC and invest using the LLC’s name and bank account.  With the account holder serving as the “Manager” of the LLC, the latter option allows the purchase of property using a check from the LLC, which depending on the custodian’s ability to move quickly, will likely speed up the property purchase.  Also, the IRA/LLC model will reduce the future costs due to reduced custodian involvement (i.e. lower fees).  For tax purposes, because the LLC is a “flow-through” tax entity, investments made using either method are normally tax-deferred (note: there are major exceptions to this tax-deferred treatment; for example, if the LLC operates an active business and/or uses debt-financing, the IRA will incur income that is not entirely tax deferred and the IRA must file a tax return).  However, the control and flexibility allowed by the IRA/LLC creates problems if the client does not operate the structure in a legal fashion.  For example, if the IRA/LLC structure interacts with certain individuals (aka “disqualified people”), the entire IRA can lose its tax-exempt status and be taxable to the IRA account holder all in one year.

Length of Credit History Tips
·         If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.

New Credit Tips
·         Do your rate shopping for a given loan within a focused period of time.
FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.

·         Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.

·         Note that it’s OK to request and check your own credit report.
This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Types of Credit Use Tips
·         Apply for and open new credit accounts only as needed.
Don’t open accounts just to have a better credit mix – it probably won’t raise your credit score.

·         Have credit cards – but manage them responsibly.
In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.

·         Note that closing an account doesn’t make it go away.
A closed account will still show up on your credit report, and may be considered by the score.

Investing your retirement funds into “alternative” investments, such as real estate, privately-held businesses, private loans, tax liens, etc. can be liberating for many people, but beware of tax landmines.

To start with, what is a self-directedIRA? The vast majority of people that have a retirement plan (whether it’s in the form of an IRA, 401(k), 403(b), etc.) have their money invested in traditional types of investments, like stocks, bonds, or mutual funds. However, the general rules governing an IRA allow for any type of investment, except for investments into life insurance contracts and collectibles (e.g. rare coins, antiques, wine, etc.). That sounds great in theory, but in order to actually invest your retirement funds into assets outside of the stock market you will need to place your retirement plan with a specific IRA custodian to allow this type of investment. In other words, the company that holds your retirement account (Charles Schwab, Fidelity, etc.) must be able to facilitate the investment or you are out of luck. This realization leads many people to an internet search engine…

Typing “self directed IRA” into Google will bring a bevy of results. Many of the top results will be sponsored links from companies that would like to assist you in setting up one of these structures. You will also find many articles and commentaries on the topic. However, the information online, as with many complicated topics, will result in a wide variety of information, ranging from very helpful to blatantly wrong. In addition, it’s likely that questions will immediately come to mind, such as: “What does checkbook control mean?”, “What is a ‘custodian’ and what role do they play?”, and, “How do I make this happen?”

There are two basic methods for investing your retirement funds into alternative assets and both require you to first “roll” (aka “transfer”) your current retirement assets into a new IRA held by a specialized type of custodian. This will likely raise the first major snag: am I even allowed to move my retirement funds from their current location? This is a question that you will need to ask your current custodian, but in general, IRAs and most 401(k)s from a previous employer are able to be rolled tax-free into a new IRA. Once you determine that you are allowed to move your retirement account, you will need to decide the exact method you will use to purchase the alternative assets.

Let’s assume for a moment that your goal is to invest into a piece of residential rental real estate. You can either: (1) request that the new custodian purchase the property directly on behalf of the IRA; or (2) you can direct the custodian to first invest the IRA into a Limited Liability Company (LLC) that is thereafter 100% owned by the IRA and purchase the property using the LLC. With you serving as the Manager of the LLC, the latter option gives you the flexibility to purchase the property using a check from the LLC’s checking account, which depending on the custodian’s ability to move quickly, will likely speed up the property purchase. For tax purposes, because the LLC is a “flow-through” tax entity, investments made using either method are normally tax-deferred (but see more on this below), just like investing into stocks, bonds, mutual funds, etc. using an IRA. The method of setting up an IRA-owned LLC structure is normally facilitated by a third-party company or law firm – hence the ads on Google.

Once you have set up your self-directed IRA structure, it is vital to be well-informed of the federal and state rules and regulations prior to investing. According to federal law, if you use the structure in a way that creates a “prohibited transaction,” the IRA will lose its tax-favored treatment and the entire value of the IRA (not just the amount involved in the specific transaction) will be taxable to you in one year. In addition, if you are under the age of 59 ½ and/or the prohibited transaction is discovered (e.g. by an IRS audit) several years after it occurred, you could face substantial penalties and interest charges. The most common way for a prohibited transaction to occur is an interaction between the IRA (or IRA-owned LLC) and a “disqualified person” – which includes the account holder of the IRA, his or her spouse, many of his or her family members, and certain businesses and business partners associated with him or her. Also, if a disqualified person personally benefits from the IRA’s (or IRA-owned LLC’s) investments, a prohibited transaction will occur. The classic violation of this rule occurs when the IRA account holder tries to use the property owned by the IRA (or IRA-owned LLC) for his or her personal benefit – think: vacation property in Hawaii.

In addition to prohibited transaction concerns, it is possible for the IRA (or IRA-owned LLC) to invest in a manner that creates immediate tax consequences to the IRA itself. As mentioned above, an IRA’s investment income is normally tax-deferred until a later date when the IRA account holder removes the money from the IRA. However, if an IRA invests using debt-financing (i.e. a mortgage) or earns income from an active business, the IRA’s income is not tax-exempt and the IRA will have to file a tax return and pay a tax. Although this situation complicates the filing requirements imposed on the IRA (or IRA-owned LLC), it is not illegal.

Finally, if all of the above was not enough, you must also be properly educated on the following issues prior to investing out of a self-directed IRA:
(1) State-specific issues that can apply to alternative types of IRA investments (e.g. possible state, county, and city filing requirements).
(2) Dealing with expenses that arise from alternative types of investments (e.g. real estate maintenance costs, property taxes, etc.).
(3) Proper record keeping in order to prove, if necessary, that none of the above prohibited transaction or tax issues arose.
(4) How to deal with on-going IRA contributions and eventual IRA distributions.

Despite all of the complexities and tax issues that the account holder of a self-directed IRA will need to address (often times with the help of an experienced tax attorney), many clients find these structures to be helpful in achieving their long-term goals of retirement plan diversification and growth.
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DISCLAIMER: The above information is for educational purposes only and does not constitute legal advice. Under no circumstances shall this correspondence create an attorney-client relationship.

Warren L. Baker is a tax attorney with Amicus Law Group in Seattle. As the lead attorney in Amicus Law Group’s self-directed IRA tax consulting group, Warren assists clients in complying with the federal rules and regulations involved when investing their retirement funds into “alternative” assets (e.g., real estate). Warren is also a member of the Amicus estate planning group, and although his tax background and experience allow him to handle even the most complex planning issues, he enjoys working with clients that have a wide range of personal wealth.

Warren earned a Bachelor of Science degree from the University of Washington, a Juris Doctor (J.D.) from Seattle University School of Law (cum laude), and a Master of Laws (LL.M.) in Taxation from the University of Washington School of Law.

Seattle Real Estate Market Update

There are no easy answers to these questions, but I’ll make my best educated guesses for what you can expect for Seattle Real Estate in 2011.

• The good news is that real estate prices are stabilizing, but the bad news is that the amount of quality inventory is getting tight and interest rates are definitely on the rise. This is creating a pretty substantial sense of urgency for buyers on the fence.  The 2011 Spring market is red hot compared with the last two years.
• On the flip side, sellers that don’t have to sell are choosing to wait out the market.  This unfortunately means that there is less quality inventory of homes and condos for sale.  These Seattle home sellers are simply holding out for better prices in 2012 and beyond – which makes 2011 a great year to buy if you can find something you want! Keep in mind that inventory can be tight at certain price points in certain neighborhoods. But I can testify that the quality listings are going super fast right now, it will not pay to wait. And hey, more sellers might enter the market but with higher expectations and price tags. Overall, this will create a much healthier Seattle Real Estate market where quality listings will go fast.
• Rising interest rates will be more important to the buyer than trying to time the market for the lowest purchase prices.
•  Desirable Seattle and Eastside neighborhoods that are close to retail services and good schools will remain steady – especially at first home buyer price points. Quality Real Estate has always rebounded first and it is beginning to happen.
• Even the “bubble” bloggers are saying that the Seattle 2011 market will have roughly flat pricing in quality neighborhoods and have a slight increase in sales volume–-creating a great time for buying and (finally!) the ability to sell without too much pain.
• The NWMLS Press Releases are usually pretty positive, and they recently gave us even more good news:  “Dramatic increases in open house activity and shrinking inventory are fueling optimism among members of the Northwest Multiple Listing Service. Commenting on the just-released MLS report on January’s housing activity, one director stated, ‘There is a strong belief in the industry that the worst is behind us and we can look forward with confidence.’” Music to any Seattle property owners ears.
• It’s also important to keep in mind that distressed properties (short sales, foreclosures, and bank owned) will still play a factor in the Seattle market. We’re not out of the woods yet, but it’s not quite so dark.
• In my opinion, while 2011 might not be the strongest seller’s market in Seattle’s history, don’t be a buyer in 2012 that wish they had made their move in 2011!

Predicting the future of Seattle Real Estate activity for the next year is always inexact, but I believe wise buyers and sellers can both take advantage of more favorable market opportunities – especially interest rates. And we here at Urban Abode are ready to help you make the most out of a promising 2011.

Banner Bank Belltown in Gallery Condo Building

Schnitzer has teamed up with Accelerated Marketing Partners for a 2nd Condo Auction at Gallery Condos in Belltown.  The auction will take place on March 5th, 2011 according to a letter to homeowners.  Public information and an updated web site will be announced on Thursday (January 27th, 2011).

We will be annoucing details to the broader public in our campaign event launch on Thursday, January 27th and welcome the opportunity to meet with you as our VIP at the Gallery Sales Center.

If you are interested in partcipating in the Gallery Condos auction on March 5th, 2011 – we can help represent you through the process.  Please contact us at team@urbanabodegroup.com to tour the auction units for sale.

I understand National Association of Realtors ® (NAR) role as a cheerleader for the Real Estate industry.  I get that and know some of the readers of this blog look at the Realtor Association spin with a wary eye.  I truly believe in talking with all political types over the past few months that the support for the Mortgage Interest Deduction (MID) on the West Coast is quite strong and this isn’t NAR hype – it’s a fact!  The road to recovery in the US Residential Real Estate market is to keep the Federal Mortgage Interest Deduction and I have no doubt that we will stay the course in the US on the MID.  If you have followed this – please read the letters linked below:

Letters (Link)

Congressional Resolution Introduced Supporting Mortgage Interest Deduction

Congressman Gary Miller (R-CA) and a group of bipartisan cosponsors have introduced House Resolution 25, a resolution that affirms the importance of the mortgage interest deduction (MID) and urges retention of current law. He has circulated a letter to all House members to secure additional cosponsors. In addition, NAR has circulated its own letter to House members requesting their support.

Letters (Link)