Bergen County Real Estate Podcast with Francesco Moracci and Marcello Petruzzella

10 Ways to Save for a Down Payment

teammoracci@gmail.com (Francesco Morraci) — Tue, 26 Jul 2016 07:57:00 -0700

If you rent a house, you're paying someone else's mortgage, and if you rent an apartment, you're probably just filling and investor's pockets with cash. Buying a home is a great way to spend money on your housing that actually builds equity. It's not only a home that you own, it's an investment, a great way to build future wealth, and a point of pride.

Of course, you may want a home, but simply can't afford to buy right now. You're definitely not alone. A recent survey by a personal banking firm reported that one in five Americans don't even have a savings account, and a significant portion of those that do don't even have a balance on that account.

One of the hardest parts of affording a home is coming up with the down payment. In Bergen County coming up with 10% or 20% for a down payment may seem daunting, but it's not impossible. I've found these steps to be helpful for clients in the past who thought they'd never be able to come up with a down payment.

1. Set a target goal. Talk to a mortgage professional to find out how much home you can afford. That way, you'll know roughly how much you need to save for a down payment. Research shows that people who have specific dollar amounts in mind for a savings goal have a better success rate.
2. Assess your spending habits. Don't just make a rough audit of your monthly rent, utilities, insurance, and grocery costs. Really look into your monthly bank and credit statements from the last three months to see where your money is going. That will help you really find out where you can start to cut back.
3. Shrink your TV package. The average cable bill hit a record $99.10 last year. That's nearly 40% higher than the average from 2010! You can always - ALWAYS - call your local provide and try to negotiate a lower rate. If they have competition, use that as leverage. Also consider consolidating to only streaming services like Netflix, Hulu, and Sling TV.
4. Drop the gym membership. This could be tough if you frequent the gym - but many of us don't. Think about what you can do outdoors, and research some of the endless home workouts available online.
5. Unload your stuff. This can be done locally or online, of course. Even niche items can be sold with online services like Craigslist and eBay. You may not be sitting on a fortune of stuff that people will pay for, but in combination with other savings, it will make a difference.

6. Downsize your apartment. In Bergen County, moving from a one-bedroom to a studio could save lots of money without sacrificing too much space. This can also help you purge some unnecessary belongings, which can also bring in some more cash. A smaller space can also create savings in heating and cooling bills. Every dollar counts!
7. Get a side gig. You're probably thinking your 9 to 5 job is enough work, but think about opportunity cost. That hour you just spent watch the Kardashians or the same episode of Sports Center after work is $10 you could have made pouring coffee at the local coffee bar, driving for Uber, or doing freelance work for services like TaskRabbit or AgentAnything. A couple night shifts or even a single weekend shift at a part-time job could contribute thousands toward your future down payment.
8. Open a high-yield savings account. If you're saving more or earning more with a new part-time gig, don't keep that money in your checking account where it's not accruing any interest. High-yield savings account offer daily access to money and accrue interest daily as well.
9. Get a cash rewards credit card. Ditch the no-frills credit card for one with cash-back rewards. It's an easy way to earn extra - if you consistently pay your bill on time each month. Credit cards typically have higher interest rates.
10. Save your tax refund. This is a nice yearly chunk of change depending on your work. If you can commit to socking away your tax refund, it'll be easier not to spend it when the check shows up.

If you have more questions about how to save for a down payment, don't hesitate to ask us! We can help you find out how much home you can afford and what you need to do to reach your goal.We look forward to answering any questions you may have.

Introducing Our Favorite Bergen County Contractor

teammoracci@gmail.com (Francesco Morraci) — Thu, 26 May 2016 10:03:00 -0700

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Today we are here with Abe, our favorite general contractor. Abe covers everything from A to Z, and he is one of our personal preferred vendors from Lifta General Contracting.

Here at Venture Realtors, we do about 75 to 100 flips a year, and Abe helps us with about 50% of them. Besides helping you with traditional real estate transactions, we can help you update your home. If you’re thinking about selling your home, we can help you prepare it for the market. If you’re buying a home and want to change the entryway on your new property, we can help you out.

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HERE AT VENTURE REALTORS, WE DO ABOUT 75 TO 100 FLIPS A YEAR, AND ABE HELPS US WITH ABOUT 50% OF THEM.

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Abe has helped us with about 50 homes, and we make sure all of our customers are satisfied. We can make your home renovations work. We can help you with the design, and Abe can put it all together.

If you have any questions about this topic or more, give us a call or send us an email. We would be happy to help you!

The Latest News About the Bergen County Market

teammoracci@gmail.com (Francesco Morraci) — Tue, 10 May 2016 11:40:00 -0700

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There was a huge jump in the Bergen County housing market from 2015 to 2016. New single-family listings increased by 25%. Compared to this time last year, that means you’re 25% more likely to sell your home now. These conditions resonate with those before the market crash.

Because the marketplace is so balanced, it’s both a buyer’s and seller’s market. It’s great for everyone. For instance, interest rates are low, so buyers should take advantage of rates. Likewise, sellers will benefit from the demand. It’s an everything market!

Now is the time to act. We’ve been in the business for nearly 20 years, and we haven’t seen an adjusted market like this in quite a while.

If you’re thinking about buying or selling a home in the surrounding area, give us a call or send us an email. We’d be happy to answer any questions you have!

How Are Venture Realtors Different?

teammoracci@gmail.com (Francesco Morraci) — Fri, 6 May 2016 08:30:00 -0700

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Venture Realtors are not like any other real estate company. We are happy to be joined by an agent who just joined our team, Mark N. Mielke, to talk about what sets us apart from the other agencies and brokerages out there.

He’s only been here about a month, but Mark has already noticed the difference between our team and others. He came from a well-known agency, where he felt like he was working hard for his company, but they weren’t working hard for him.

Here at Venture Realtors, Mark already has better relationships than he ever had at his old brokerage. He doesn’t feel like another number, he feels like part of the family. He feels that the people here at Venture Realtors are here to help him with the deal, share the love, and offer him the freedom and flexibility to do his job at a high level that you just don’t get at major agencies. At the same time, we provide him with all the technology, systems, and training he needs to be successful.

Mark has a newer, brighter, more energetic feel, and his clients are responding to that. He also loves how we bring luxury to all of our listings, regardless of the price point.

We would love the opportunity to sit down with you and see if we could be a fit together. Not everyone will be the right fit, but it never hurts to talk. Here, you’ll be able to build your own business within Venture Realtors and we’ll teach you that you aren’t just an agent, you’re an entrepreneur.

If you have any questions for us, don’t hesitate to reach out by giving us a call or sending us an email. We look forward to hearing from you.

What Bergen County Home Buyers Should Consider

teammoracci@gmail.com (Francesco Morraci) — Wed, 17 Feb 2016 15:11:00 -0800

I recently came across an article relevant to buyers and sellers in the Bergen County area. Our office has access to tons of real estate resources not available to the public. We’re happy to simplify this exclusive information for you.

According to Keeping Current Matters, there are three important questions prospective buyers should ask before committing to buy a home.

Why am I buying a home in the first place? Forget finances for a moment and consider the real reason you’re buying a home. Often, buyers pursue a purchase because they want a home to raise a family, feel safe, have more space, or have control over space.

Where are home values headed? Home values are projected to increase by 5.3% over the next 12 months.

Where are mortgage rates headed? Think about the long-term cost. The graph below reveals what industry professionals predict interest rates will look like this year.

The bottom line is that only you and your family will know the right time to buy a home. If you’re thinking about buying or selling a home, we'd be happy to discuss your real estate needs. Check out the links below if you’re looking at buying or selling a home in 2016.

If any questions or concerns arise, please reach out to us. You don’t have to worry about contracts or obligations of any sort. We’re happy to help at any capacity, so you can make the best decision for your family.

Have You Seen Our New Office?

teammoracci@gmail.com (Francesco Morraci) — Fri, 5 Feb 2016 08:53:00 -0800

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Today we wanted to take a moment to invite you to our brand new office location! Venture Realtors Paramus is now open for business, in a beautiful new space designed by our own Marcello Petruzzella. In addition to state-of-the-art technology, we filled the office with paintings, sculptures, unique furniture, and more. We would love for you to come by and check the space out, we really think you are going to love it. Until then, enjoy this virtual tour of our new space.

Save Hundreds of Thousands in Taxes with Cost Segregation

teammoracci@gmail.com (Francesco Morraci) — Thu, 19 Nov 2015 11:11:00 -0800

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Today, JP Komorny joins us to discuss cost segregation. JP started around twenty years ago as a junior accountant at one of the big four accounting firms in Manhattan. He ended up in the real estate division of the corporate tax department and started working with cost segregation, which focuses on the asset reclassification of commercial real estate.

What is cost segregation? Ultimately, cost segregation is an asset reclassification strategy to accelerate the depreciation deductions that currently exist, increasing the number of deductions and reducing taxable income.

If you gave JP a dime, he would give you a dollar in tax savings based on that effective tax rate, and the dollar might equal 60 cents.

For a small fee, cost engineers and accountants perform an analysis on the property. That analysis is tax deductible. In return, you receive an increased number of depreciation deductions in the early years of owning the property. The price of cost segregation is equal to 1% of the value you will get back in tax savings.

This is only the beginning. If you have any questions, give us a call or send us an email. We look forward to hearing from you!

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How Can We Help You Secure a Commercial Investment Property?

teammoracci@gmail.com (Francesco Morraci) — Tue, 28 Jul 2015 06:37:00 -0700

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Today, we have a very special guest joining us. Dino Cancellieri is a licensed residential broker who helps the commercial division of our team.

If you're looking for a commercial property but are a little light on down payment, Dino can structure a deal by thinking outside the box. Right now, commercial real estate is strong, especially on the investment side. Since he is an expert at putting together great deals, Dino wastes no time when you come to him with an investment opportunity.

Commercial property is, for the most part, a whole lot more predictable than residential property. If you invest in the right commercial property - property in nice residential strip malls, for instance - you can rest assured knowing you'll get a return. Venture Realtors is a one-stop shop for all of your buying, selling, or investing needs, so we encourage you to reach out to us to discuss your options. We would love to hear from you!

How We Get Great Referrals from Our Clients

teammoracci@gmail.com (Francesco Morraci) — Mon, 13 Jul 2015 10:51:00 -0700

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Hey there, everyone. Today we are here with John Trito, a longtime resident of Saddlebrook and a longtime client and friend of ours. We have known each other for quite some time and have become close throughout the year. John has always been a great source of referrals for us, so today we just want to talk to him about why he recommends us for real estate. So, what aspects in John's life does the subject of real estate come up?

Well, John has been a resident here for 42 years, and a police officer for over 20. He has encountered many people throughout his day-to-day. He encounters people of all ages and from all walks of life that respect him and his opinion on certain things. Real estate, just like the stock market and politics, is always a topic of conversation. We are very fortunate that John has recommended us many times over the years.

In the world we live in today, you've got to be able to trust people. In real estate, you want to trust the people who choose to put the client first. That is what we do, and in the end, that's what we are most concerned with. John says he has heard nothing but praise about our team since he started referring us 5-7 years ago. When we get a referral, we want to make sure whoever recommended us comes out shining.

Buying a home is one of the biggest transactions you will encounter in your life, don't make the mistake of hiring just anyone. You can't trust a decision of this magnitude to a friend in the business or any old agent. The average home in our area sells for $500,000. Do you really trust your neighbor or cousin with that kind of responsibility?

We appreciate everything John has done for us over the years and are happy we have been able to help him out as well. If you have any questions for us, feel free to give us a call or send us a quick email. We look forward to speaking with you!

What Does the Bergen County Market Look Like Right Now?

teammoracci@gmail.com (Francesco Morraci) — Fri, 10 Jul 2015 11:40:00 -0700

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Hey everyone, welcome back to our blog. Today we are here to give you a market update on what's been going on in Bergen County over the last few months. About 1,500 homes have sold, and our Realtors have sold about 50 of them, which is fantastic.

The market is looking great right now for both buyers and sellers. It's a great time to buy, because interest rates are still hovering between 3-4%, which is an incredible rate over a 30-year mortgage. Rates won't stay this low for too much longer.

If you're looking to sell, due to low interest rates and an abundance of buyers, bidding wars are starting to happen more and more frequently. We saw two just this last weekend, with each home getting over 5 bids before it sold. We have found that pricing right on the money the first time is the best way to get multiple offers and bids on your home.

If you have any questions for us, feel free to give us a call or send us an email. We would love to talk to you more about the market. We hope to hear from you soon!

What Should You Look for in a Home with a Pool?

teammoracci@gmail.com (Francesco Morraci) — Mon, 6 Jul 2015 12:21:00 -0700

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Today we have Joe Pools with us, and he's going to be giving out some advice on what to look for if you're thinking of buying a home with a pool in it.

One thing that Joe highly recommends is to get a professional pool inspection. You need to look at the liner, and also need to make sure that the equipment such as the heater and the motor are in good shape.

More often than not, when you buy a home with a pool in it, the pool is probably not in tip-top shape. A brand new pool can cost you anywhere from $30,000 to $40,000, but doing a remodel of the pool is much more affordable, costing only $10,000 to $15,000.

Joe has been a longtime business acquaintance and he's turned into a great friend, and this is why he is offering a free pool inspection with any home you purchase from us!

If you need help remodeling a pool, or if you want to get an estimate on a new one, you can contact Joe at 201-797-7665, or email him at JoesPool@optonline.net.

What Do Our Clients Have to Say About Us?

teammoracci@gmail.com (Francesco Morraci) — Thu, 2 Jul 2015 13:22:00 -0700

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We are here today with Rich Labarbiera, lifelong resident of Paramis and an industry veteran of 25+ years.

Over the past several years, Rich became aware of Venture Realty and recently acquired a property through us. He described his experience like this:

"My experience working with Venture Realty was great. They were a full-service organization that addressed each and every one of my needs."

If you have any questions for us, or would like us to do the same thing we did for Rich for you, give us a call or send us an email. We would love to help you take advantage of the real estate market!

How Does Cost Segregation Affect You?

teammoracci@gmail.com (Francesco Morraci) — Thu, 30 Apr 2015 10:34:00 -0700

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Today we have JP Komorny with us to speak about cost segregation. JP has been in the accounting industry for 20 years, and at one point in time was transferred to the real estate cost segregation division of a major accounting firm in New York.

Cost segregation applies to taxpayers that own commercial real estate, and it is the process of identifying personal property assets that are grouped with real property assets, and separating out personal assets for tax reporting purposes. A cost segregation study reclassifies personal property assets to shorten the depreciation time for taxation purposes, which lowers current income tax obligations.

In essence, it is an asset reclassification strategy to accelerate the depreciation deductions that currently exist, to increase the amount of deductions, thereby reducing the amount of taxable income. The analogy is that if you gave me a dime, I could give you a dollar in tax savings. So, based on the tax rate, that dollar might equal 60 cents.

Typically, a cost segregation study will cost about 1% of what the tax savings would be, but JP finds that clients can save up to 20% in taxes with this service. The savings in interest payments alone could help to pay for 2-4 years worth of mortgage payments for a commercial property.

Cost segregation applies to any commercial property that exists today, but typically the threshold for performing a cost segregation study would be that you need to have at least $500,000 in the basis of the asset. If the value of the commercial property or properties is any less than this, it won't make a whole lot of financial sense to do this.

One thing to keep in mind is that these studies don't cost you anything. For example, I had 10 properties that yielded roughly $200,000 worth of depreciation deductions. After a cost segregation study, that amount rose to $1.4 million dollars. That is a $1.2 million increase in depreciation deductions to reduce tax-deductible income. For all 10 properties the cost of the study was around $80,000. The best thing is that even this $80,000 is tax deductible!

In a nutshell, for $80,000, I got $1.4 million in actual tax dollars. There's really not much else I can do but urge you to look into cost segregation studies.

Please don't hesitate to contact me; I would love to put you into contact with JP if you have any questions about this strategy. It is a bit complicated, but it's worth it!