Please stop by for our Holiday party Pop-Up. Tuesday November 14th from 5-9pm. Hosted by The Boutique Real Estate Group on November 14th. Join featured guests: Nordstrom Mens Shop, HauteShopCo, J Star Motors, OC Wine Mart & HeavenLee Oils. Food & drinks will be served. 3385 E. Imperial Hwy, Brea, Ca 92823. Sign Up Here.
BY JOTHAM SEDERSTROM, Inman News
In a dramatic departure from a preliminary tax reform plan unveiled earlier this year, the latest draft of what’s been dubbed the Tax Cuts and Jobs Act, authored by House Ways and Means Chairman Kevin Brady, would limit the mortgage interest deduction to new and existing loans of $500,000 and under, down from $1 million, and cap property tax deductions at $10,000.
Released Thursday to members of Congress, the revised proposal would disproportionately impact high-earning homeowners reeling from high property taxes on the West Coast and Northeast while potentially reducing the incentive for millions of Americans to buy new homes.
The Trump administration’s original tax framework included a proposal that would potentially jeopardize homeowners with a $70 billion annual tax expenditure by doubling the standard tax deduction, housing experts warned at the time.
The latest reform plan raises the standard deduction from $12,700 to $24,400 (married), $9,350 to $18,300 (head of household), and $6,350 to $12,200 (single), the Wall Street Journal reported.
“One of the major advantages of homeownership is that deduction, and if people choose not to use it because of the doubling of the standard deduction, it will remove, to a degree, the incentive to buy a home, said Matthew Gardner, chief economist at Windermere Real Estate, citing numbers by the Tax Institute Center that project that the percent of filers claiming the deduction would plummet from 21 percent to just 4 percent should the bill become law.
The revised proposal, meanwhile, would maintain a plan to reduce the tax rate on limited liability companies and other so-called pass-through entities to 25 percent, but would be limited to passive owners, leaving principal investors with a blended top tax rate of 35 percent.
As new details of President Trump’s tax code reform gradually came to light Thursday, real estate industry trade groups cautiously doubled down on earlier criticisms of the proposal.
“We are currently reviewing the details of the tax proposal released today, but at first glance it appears to confirm many of our biggest concerns about the Unified Framework,” said National Association of Realtors President William Brown in a statement to Inman News.
“Eliminating or nullifying the tax incentives for homeownership puts home values and middle class homeowners at risk, and from a cursory examination this legislation appears to do just that,” Brown added. “We will have additional details upon a more thorough reading of the bill.”
The mortgage cap and limited property tax deductions threaten to jeopardize high-income taxpayers with expensive homes, according to the Wall Street Journal. The plan also maintains the top bracket of 39.6 percent for high-income households and would phases out the estate tax, which includes estates worth approximately $5 million or more, according to the report.
For professional services firms — a definition that could extend to include real estate brokerages in addition to law firm and financial advisers — the proposed 25-percent pass-through rate may no longer apply, as the default rate would be considered 100-percent labor income.
“This bill leaves too many small businesses behind,” said Juanita Duggan, CEO of the National Federation of Independent Business (NFIB), in a statement. “We are concerned that the pass-through provision does not help most small businesses. Small business is the engine of the economy. We believe that tax reform should provide substantial relief to all small businesses, so they can reinvest their money, grow, and create jobs.”
Aaron Lesher, CPA and head of customer success at Hurdlr, said he “tends to agree” with the NFIB that the new rates don’t do enough to help small businesses, but he sees where real estate professionals may still be able to benefit from the changes.
“Even though real estate agents could be considered professional service providers, the nature of their brokerage relationship is usually that of an independent contractor,” Lesher said. “Since real estate brokerages don’t typically withhold taxes for their agents or provide many benefits outside marketing, and agents are still responsible for business expenses and taxes, agents would still be viewed as businesses and be able to claim the 25 percent treatment.”
Short on details and broad in scope, the earlier proposal, negotiated over several months among a group known as “The Big Six,” including Treasury Secretary Steve Mnuchin, National Economic Director Gary Cohn and top House and Senate Republicans, would have lowered corporate rates from 35 to 20 percent while slashing the number of personal tax brackets from seven to three.
The revised plan holds true to the corporate rate of 20 percent, but breaks down the tax brackets into four groups rather than three: 12 percent, 25 percent, 35 percent and 39.6 percent, according to the Wall Street Journal.
Editor’s note: This story has been updated with additional details about the tax plan.
Carlito Jocson, the top chef for Yard House restaurants, has sold his modern, 8,320-square-foot house on three acres in Yorba Linda for $6.095 million. www.22750HiddenHillsRd.com
That sets a record for the most expensive home sale ever in the city, according to the Multiple Listing Service.
The house, on one of Orange County’s highest peaks, hit the market in September 2016 for $10 million. The price dropped to $8.688 million in February 2017 and $7.5 million in May.
The estate includes a full-size outdoor kitchen with a bar and wood-fired pizza oven. Flanking a zero-edge swimming pool are two glass-tiled fire pits. A meditation garden with more than a dozen olive trees and a disappearing entertainment system are among the outdoor features.
Inside, the solar-powered house has a restaurant-caliber kitchen, 1,200-bottle wine room and a home theater.
Jocson was one of the Yard House’s original founders and went on to become a vice president and the corporate executive chef.
I’m speaking at the #NurtureCon Online Conference- let’s hang out! This online conference starts October 23rd and runs through Friday October 27th. ‘ll be speaking on How to Make Real Estate Movies that Sell Houses. The event is definitely targeting real estate agents and brokers who want to up their game at lead nurturing, lead generating, branding, video and content, but it also extends to those working in any professional real estate capacity / admin, realtor spouses, team leads and real estate trainers.
Interested in joining me?
Location: 27112 Highland Dr, San Juan Capistrano, CA Price: $11,888,888
Spanning two lots, this property in San Juan Capistrano, Calif., comes with a Mediterranean-style mansion and 430 lemon trees.
By: Sarah Tilton, Wall Street Journal
Dorian Knape looked at 70 houses before she and her husband, Jim, found this property in San Juan Capistrano, Calif. ‘We had been looking for a couple of years for a unique property in Orange County that would give us ocean views and privacy,’ she says. The couple paid $5.5 million in 2007 for the more than 5-acre property. They then embarked on a multi-year remodel of the house, the guesthouse, the six-car garage and the garden. ‘It’s in town—you’re not in the middle of nowhere,’ says Mrs. Knape, adding that it is about a five-minute drive to the freeway. The couple took the approximately 9,800-square-foot Mediterranean-style main house down to the studs. ‘I wanted it to be timeless,’ says Mrs. Knape. The family moved into the home in 2010.
Mrs. Knape estimates they have put approximately $8 million into the two-lot property. On the second lot, which was recently rezoned agricultural, they planted 430 lemon trees, she says. An accountant by training, Mrs. Knape started a medical device company with her husband and more recently started Pucker Urban Farm. Along with fresh lemons, she sells individually packaged drink shots called Mrs. Pucker’s Lemon Shot. They are made by squeezing the juice from the lemon and the peel as ‘the power is in the peel,’ she says.
‘It’s been a great family home,’ says Mrs. Knape. The outdoor loggia, shown here, has a coffered ceiling with built-in heaters. ‘You go through our gate and you don’t realize you’re in a city anymore,’ says Mrs. Knape. The property has a saltwater pool with ocean views. A sport-court is now a staging area for the lemon business. ‘It’s been a labor of love,’ she says of the lemon farm. They added a full outdoor kitchen with a dishwasher and a pizza oven. The chandelier in the entry and the railing on the staircase were among the few original details that the couple preserved. The walls in the entry are Venetian plaster.
The main house has five bedrooms, six full baths and two half baths. The master suite includes a 308-square-foot closet. ‘It’s a sanctuary,’ says Mrs. Knape. The master bath, shown here, is 420 square feet. The fireplace in the library, shown here, was originally in the living room. Mrs. Knape added the burl-wood panelling. The living room is Mrs. Knape’s favorite space in the house. ‘You can go in there and look out at the formal garden. It’s very serene, and you can open up all the doors and walk out to the backyard,’ she says. There is a player piano in the living room which she says she designed around the Christopher Guy settee. The formal dining room looks out at the pool and the ocean. ‘The theater was [a] focal point,’ says Mrs. Knape. ’The kids come home and they use the theater with their friends.’
A glass wall separates the wine tasting room from the temperature-controlled cellar. The couple also renovated the approximately 1,000-square-foot, one-bedroom, one-bath guesthouse. The couple also added a gym. The couple are selling as their children are grown and they are planning on downsizing. Mrs. Knape says she will miss the serenity and the privacy. ‘I’s like you’re in your own world,’ she says. Mrs. Knape is 59 years old; Mr. Knape is 55.
Why sit home because you don’t want to spend any money? Here are five free things you can do this week.
SUNDAY, SEPT. 24
Enjoy a concert at the Newport Beach Public Library’s Fall series of Sunday Musicales with a free 3 p.m. performance by Four Hands One Piano, a piano duo of Lucy Nargizyan and Marina Grozdanovi, in the Central Library Friends Room, 1000 Avocado Avenue, Newport Beach. Learn more:949-717-3800 , ext 2 or newportbeachlibrary.org.
THURSDAY, SEPT. 28
Take in the Wacky Magic Show at the Yorba Linda Public Library, 6:30 p.m. to 7:15 p.m. in the community room. Presented by David Skale. Location: 18181 Imperial Hwy. Yorba Linda. Learn more: Ylpl.net.
FRIDAY, SEPT. 29
See “Beauty and the Beast” (the live-action 2017 version) at Seal Beach Movies in the Park. Movies start at sunset, at Eisenhower Park next to the pier. Bring your chair and blanket. Learn more: moviesintheparksb.com
SATURDAY, SEPT. 30
Take a free nature walk with a bird talk, led by naturalist docents at the Bolsa Chica Ecological Reserve. Thousands of birds make Bolsa Chica their home year-round and also when they’re on migration. The walk takes place the last Saturday of each month at 9 a.m. Meet at the south parking lot, across PCH from the entrance to Bolsa Chica State Beach. Get there early and carpool because the parking lot is small. Learn more: amigosdebolsachica.org
Walk with a Naturalist 9-10:30 p.m. Join naturalists at O’Neill Regional Park and learn about the animals and natural world of Trabuco Canyon. This is a light-to-moderate walk on mostly paved roads. The walk is free, parking is $5. Contact:949-923-2260 . Location: O’Neill Regional Park. 30892 Trabuco Canyon Road, Trabuco Canyon. Learn more: ocparks.com/parks/oneill
via Property Spark
These real estate brokerages are reaching thousands of people by using the power of social media.
Before, going into the list, we would like to say that these real estate brokerages do not have to be our clients, subscribers or followers.
Furthermore, we did not solicit any real estate brokerages before the research or writing of the lists.
Here’s how the Real Estate Brokerages are selected:
Initial Research on Real Estate Brokerages
We looked at hundreds of popular Real Estate Brokerages across North America. We found these real estate brokerages through different mediums including:
• Facebook Search
• Instagram Search
• Twitter Search
Inclusions and Ranking (Objective Data)
Once we had our list of popular real estate brokerages. We looked at objective data regarding the real estate brokerages’ social media presence, including the following:
• Facebook Page Likes
• Instagram Followers
• Twitter Followers
• Facebook Post likes, comments, shares and views (for videos)
• Instagram Post likes and comments
• Twitter favorites and retweets
Inclusions and Ranking (Subjective Data)
Finally, we make sure that all the real estate brokerages who made the final 30 have a great social media presence based on subjective variables, including the following:
• Brand image (quality of graphic design, pictures, videos)
• Value of content (how useful the content is to followers)
• Content mix (the mix of different types of posts)
With that being said, let’s get into the top list! Enjoy!
#10: The Boutique Real Estate Group
“Inspired by purpose, driven by passion”; that’s a motto we definitely want to hear from a real estate brokerage company. The Boutique Real Estate Group knows how to engage their followers on social media as they provide luxurious and dreamy photos of property interiors and exteriors.
The real estate industry is changing. Hand-written offers, filing cabinets and printers are a thing of the past. Mobile offices, instantaneous responses, and data analytics are here to stay. For a brokerage to survive in this new digital age, their agents need to be equipped with state of the art tools at their fingertips.
Now that the days of drowning in paper are over, it seems like a new real estate technology pops up every day and it can be easy to get overwhelmed and lost in all the options. So how do you differentiate the useful from the useless and figure out which tools are right for you and your brokerage?
I spent a lot of time thinking about this very question for my team at The Boutique Real Estate Group. I started this brokerage with the primary objective of providing a world class experience for our clients. I have known from day one that in order to deliver on this goal my agents would need the right tech tools to do high quality work and provide a seamless experience to their clients.
I invest in technology that will improve the agent experience and the customer experience. I have developed these 5 “rules” for picking the right technology to develop a tech-centric brokerage:
1. Set a vision for your brokerage
Spend the time to brainstorm and define what kind of brokerage you want to be. What is important to you? What does your brokerage stand for? And how will technology help you achieve this? Clearly define it. Write it down. Memorize it. Now every time you look at a potential tool ask yourself if it fits into your tech framework and if not – pass!
2. Culture is everything
You’ve defined your vision, but how do you bring it to life? The answer is – culture. Don’t underestimate the power of culture to get everyone in your office to achieve your vision. It is up to you and your leadership team to develop a culture that embraces technology and values change.
3. Mobile first
Any technology that you consider for your brokerage MUST be mobile and tablet friendly. Agents, brokers and the modern customer need location independence – the freedom to work and sign on the fly. In the high speed world we live in nothing kills a deal like time.
4. Integrating gives you magic powers
The real secret to the getting the most out of your technology investment is integrations. When data is seamlessly shared from platform to platform, your agents or transactions coordinators don’t need to waste time on tedious data entry. This can improve accuracy and allow your agents to focus on their clients.
5. Pick a partner
In the end, when you select the technology provider – you are selecting a partner that will be with you for a long time. Make sure to pick a company that shares your values, that will answer the phone when you call and that is working to build the same future for real estate that you are. Don’t necessarily pick a company just for your needs today, but for your needs in 5, 10, 15 years…
With these rules in mind, I have built a tech-enhanced brokerage that is leading the way into real estate’s digital future and is fully armed to deliver high quality service. Now that I’ve shared my secrets, please add your own in the comments section below.
Congratulations! You’ve already taken the first step to properly preparing your brokerage for success in the digital age. Next up: navigating the hundreds of options out there – good luck!
Raj Qsar, Principal and Owner of The Boutique Real Estate Group, was named The Real Estate Influencer of the Year 2017 by Inman News. He has cracked the code for creating a tech-enhanced brokerage and The Boutique was named Most Innovative Brokerage. Find out more about what the Boutique Real Estate Group is doing by connecting with Raj on Twitter, Facebook, LinkedIn, Instagram, and YouTube.
An inspired ode to the industry by Brad Inman September 6th, 2017.
A new grandchild and the tragic events unfolding in Houston have me feeling overwhelmed with emotion and gratitude.
Meanwhile I have been re-reading novels by Eve Babitz, one of my favorite writers who in the 1960s and ’70s wrote about the cultural milieu of Los Angeles and touched on the topics of social unrest, wildfires and earthquakes. An entertaining and poetic acknowledgments section precedes her classic 1974 novel Eve’s Hollywood.
Babitz’s lyrical structure and this collision of thoughts and events inspired me to write about a few of my favorite things (and characters) gracing our wacky industry.
Let’s call this my 2017 Acknowledgements Unlist.
To Mary & Peter homebuyer
But also to the bank that made them a loan and to the escrow company that recorded their sale
And to the agent and the search portal that helped them find a house
And to Richard Smith and the American flag pin on his lapel
And to the single-family house
And to Glenn Kelman and Robert Reffkin for spilling a tray of Big Gulp sodas all over the industry
And to role models Marsha Rand, Ebby Halliday and Helen Hanna Caseywhen the ceiling was fierce
And to the mighty — Bill Foley, Adi Tatarko, Pat Stone, Howard Lorber, Rich Barton, Warren Buffett, Lloyd Frink and Rupert Murdoch
And to the Toto toilet
And to Opendoor’s Eric Wu for the wit to use a sledgehammer
And to a life-in-full Dave Liniger with his pony-sized dog Max and ankle pistol
And to central air conditioning and to Wi-Fi
And to be Sherry Chris
And to FEMA and to flood insurance
And to the reassuring voices of Duane LeGate and Jim Walberg
And to industry writers Teresa Boardman and Sam DeBord
And to real estate’s Oprah Katie Lance
And to the front porch and the gas range
And to Hale Bob and vice versa
And to tussling with NAR
And to America’s first housing leaders Franklin and Eleanor Roosevelt
And to Gary Keller and the entire state of Texas
And to raucous debates about the fate of the MLS, the plight of brokers, instant offers, commission compression, FSBOs and disintermediation
And to the 30-year mortgage
And to great expectations for Elizabeth Mendenhall
And to the condominium
And to the zillions of pillows that became Zillow
And to the final episode of Bravo’s Million Dollar Listing
And to grinning at Andrew Flachner
And to the townhouse and the wading pool
And to the startup boosters Constance Freedman, Brendan Wallace, Aaron Block and Mark Birschbach
And to prophet Hank Miller, whose jeremiad against the industry put a fire under our readers
And to a 1000watt when you need it
And to bunkbeds
And to warrior priest Jay Thompson, the man with a strong heart despite sword blows to the chest
And to everyone named Victor & Sparkles
And to housing activists everywhere
And to the moment Mark McLaughlin put the Cobra GT500 into drive
And to the 4th and 5th Amendments to the U.S. Constitution
And to the inheritors Ben Kinney, Kymber Lovett-Menkiti, Sue Adler, Thad Wong, Eddie Berenbaum, Vanessa Bergmark, Shaun Osher, Chris Lim, Mauricio Umansky, Mark Spain, Mark Choey, Kendyl Young, Peter Lorimer, Laurie Weston Davis, Tiffany Kjellander, Pam Liebman, Raj Qsar, and Matt Beall
And to all of the disrupters, the new business models, the tinkerers and the entrepreneurs
And to the Pinecrest Diner, the Big Four, the Lambs Club, the French Roast, the KGB Bar, the Redwoods, the Box and the Beverly Hills Hotel
And to the reformers Team Diva, Rob Hahn, Debra Trappen, Tommy Sowers, Sunny Lake, Bill Wendell, Sara Sutachan, Anne Jones, Brian Copeland, Marguerite Giguere, Ryan Bokros, Caroline Pinal and Carl Carter
And to Section 8 housing and the mortgage interest deduction
And to missing Peter Flint
And to tiny homes
And to the definition of loyalty Laura Monroe
And to notorious wing (wo)men Nyda Jones-Church (to Steve Games), Greg Schwartz (to Spencer Rascoff), Lisa Fettner (to Scott Olsen), Joan Dailey (to Avi Gupta) and Paul Boomsma (to Pam O’Connor)
And to those whose first name is enough — Billy, Seth, Sami, Vija, Yaz, Blair, Errol, Peter and Celeste
And to the turnaround crackerjack Amy Bohutinsky who should be running Uber
And to those who didn’t turn a big fortune into a small one Lennox Scott, Stephen Baird, Hoby Hanna and Obi Jacobi
And to the 1950s
And to the unsung: Stephanie Anton, Deidre Woollard, Cary Sylvester, Mike Ryan, Ryan Gorman, Leslie Appleton-Young, Katelyn Castellano, Amy Gorce, Diane Ramirez, Susan Yannaccone and Art Carter
And to housing the homeless
And to the everyday Realtor who saved lives in Harvey’s wake
And to Oakland, WEHO, Sausalito, UES, WPB, Palm Springs, 9th St., Carlinville and all of Illinois and most of Australia
And to Steve Murray, Jeff Lobb, Ken Jenny and a few other consultants
And to the garden apartment
And to Dottie and Dolly, if I have another daughter it will be a tough choice
And to the flacks we hate to hate Amanda Woolley, Audie Chamberlain, Kevin Hawkins and Sara Wiskerchen
And to Ryan O’Hara who keeps smiling through it all
And to Nest thermostats and Google Home
And to battle-scarred disruptor Joshua Hunt, who does not go down easily
And to your inner Ferry-self and to Tim & Julie’s clever rants
And to running water, light switches, warm floors and Mr. Coffee
And to Alex Lange for swimming with the salmon
And to the kidney-shaped swimming pool with a diving board
And to industry muckraker Greg Robertson
And to Joe Schutt, Nicole Beauchamp, Sarita Lahoti Dua, Bob Watson, and Sean Carpenter for being everywhere for all of us
And to immigrants and their families
And to the software musketeers Jed Carlson, Grier Allen, Morgan Carey and Matt Barba
And to the loud and the proud Leigh Brown
And to the steady hands Ron Peltier, Chris Heller, Joel Singer, Marilyn Wilson,David Charron, Suzanne Mueller, Rick Sharga, Billy Jack Carter, Charlie Young and John Aaroe
And to the Weber Grill and Bar Keepers Friend Cleanser & Polish
And to the thinkers Bill Lublin, Jeff Turner, Bernice Ross, Leslie Ebersole and J. Philip Faranda
And to sidewalks, bike lanes and street lights
And to trusting Lela Richardson and Joe Rand
And to missing Alex Perriello already
And to an industry that always puts up a good fight and feeds on community generosity when its neighbors are most in need
And to you Nate Ellis, who I know would approve
And to my last list…maybe.
If your headed to Inman Connect in San Francisco this summer you are probably going to ask that question? Where are we going to dinner. Well, since this is my 6th ICSF and my 10th overall Inman Connect I thought I would share with you some of my latest research for the top foodie spots in the city.
Most of us will be hitting some sort of happy hour, soiree, after party or after after party the entire week but sometimes you just wanna sit down with your friends, crack open an amazing bottle of wine and just catch up with some of your nearest & dearest. With that thought in mind I have hand selected a few hotspots for ICSF 2017:
- The Riddler: Champagne, caviar, and the coziest corner in Hayes Valley all led by some serious boss ladies. Ladies aren’t the only ones loving this elegant take on a European Champagne bar— it’s quickly become must-hang spot for San Franciscans of all stripes.
- Hitachino Beer & Wagyu: After a much-hyped opening with reservations booking up for weeks at a time, Hitachino continues to be very popular destination. Drop in at dinner for a taste of ten Hitachino beers on draft, or attempt to snag a reservation for wagyu in the back, which ranges from tongue skewers to ramen.
- Beretta: This Mission hotspot is always packed, with good reason. The menu is rife with antipasti, pizzas, pastas, risottos, and rotating daily specials like cioppino and short ribs. While you wait for a table, grab one of the excellent cocktails at the bar, and plot your dining strategy. It’s open late night (food til 1 a.m.).
- Khai Restaurant: If the chef is going to personally serve me dinner then its a must stop while in SF. Originally known for Ana Mandara (which closed in 2012), chef Khai Duong is back with a $95 tasting menu-only dining experience in SoMa. The small restaurant is staffed by just a few, and dishes are often delivered by the chef himself.
- Mourad: OMG. This place looks sooo bomb!! he restaurant itself is big and beautiful, matched only by chef Mourad Lahlou’s Moroccan-inspired flavors. Choose from a la carte options like duck basteeya and family-style, large format dishes of lamb and short rib, or go for the tasting menu. Drinks are equally inspired, featuring combinations like pineapple and artichoke.
Hoping to meet as many of you as I can during Inman Connect SF 2017. I will be presenting at the Indy Broker Summit on Monday as well.
You can connect with me here: