Tahoe Donner Real Estate Sales Information – October

Today, October 5, 2010, there are 156 homes available or for sale in Tahoe Donner. Furthermore, 136 of the homes offered for sale are standard sales, 15 of the available homes are offered as short sales and 5 REO’s, (Bank owned properties). Also, 31 single family homes are currently in escrow or pending sale. There are another 4 short sales pending bank approval. Moreover, pending sales range in price from $330,000 to $1,499,000.

Some perspective to Tahoe Donner market conditions: Tahoe Donner had a total of 225 homes close escrow in 2009 compared to 2008 in which 193 sales were consummated. Year to date 153 homes have closed escrow in Tahoe Donner compared to last year during the same period were 151 homes had closed escrow, basically a parity to 2009.

Home site sales continue to disappoint with 53 home sites available, currently 2 home site are in escrow or pending sale. Also, 16 home sites have closed escrow in 2010. Currently, the pricing for available home sites run from a low of $79,900 to a high of $525,000.

Sales Statistics
for NEVADA County CA
Realist’s most recent sale date for this county is 09/22/2010
Single Family Residence
Time Period      Number of Sales      Median Sale Price
Aug 2010           115                              $320,000
Aug 2009           127                              $328,000
Jul 2010             106                             $299,500
Jul 2009             124                             $319,000
2010 YTD           909                             $295,909
2009                1,294                             $329,250
Time Period      Number of Sales      Median Sale Price
Aug 2010           9                                  $365,000
Aug 2009           9                                  $359,000
Jul 2010            9                                  $217,000
Jul 2009            20                                $214,500
2010 YTD         75                                 $325,000
2009               107                                 $317,000

How about a couple minutes to indulge a proud father; I could talk about my daughter, Marissa being honored as a “Distinguished Scholar” this quarter, Alder Creek Middle School, awarded for grade point averages above 3.85, enough said!

What I really want to share is about my son, Nick Visconti who just won “Hot Dawgz & Hand Rails” contest and is featured in his 3rd snowboarding movie; Think Thanks newest film “Right Brain Left Brain”. Nick has been showcase twice on “Fuel TV”, interviewed by ESPN, shows up often in Snowboard magazine. Nick spent a lot of time coaching during the summer at Windells and the again down in Chile. Next season he will begin training for the 2014 Olympics in Boardercross. I got this from Nick’s interview with Transworld Snowboarding http://twsnow.com, Most important things in the life of Nick; 1. Jesus 2. My Family 3. My Friends 4. Love and 5 getting Weird! See pictures of Nick below!

Okay, now back to Real Estate!

Thinking about exchanging your Cabin for a better investment vehicle? How about a TIC;

Tenant-in-Common/ Fractional Interest Exchanges

Completing a §1031 exchange with Tenant-in-Common interest ownership in a property, also known as co-ownership of real estate, allows investors not only to defer their capital gains taxes, but also to “upgrade” their investment real estate into larger properties.

IRS Revenue Procedure 2002-22, issued in April of 2002, is a development in the real estate industry that has many property investors excited. The clamor is due to a product that allows a small-time investor to acquire an interest in a large residential or commercial property, such as an apartment building or shopping center. Purchasing one of these “prime” properties was a luxury previously available only to developers and large conglomerates such as Real Estate Investment Trusts. Known as Tenant-in- Common (“TIC”) or Undivided Fractional Interest (“UFI”) property, it is quickly becoming a popular alternative to owning single-family rental property. Combined with an Internal Revenue Code Section 1031 (“IRC §1031”) tax-deferred exchange, this might be an option for those individuals wishing to escape the burdens of the real estate management business in favor of owning an interest in a high-grade property without all the typical administrative responsibilities. The IRS has finally established that tenancy-in-common ownership is eligible for nonrecognition treatment provided it is structured properly, such as by using a Qualified Intermediary.

TIC ownership is not a new concept. Property owners have been holding interests in real estate as tenants-in-common for well over one hundred years. Derived from English common law, a tenancy in common interest is a specific, undivided interest in a property with other co-owners. It is through this common ownership principle that the TIC industry was formed. Why is IRS Revenue Procedure 2002-22 (the “Procedure”) so important? For the years preceding its enactment, taxpayers exchanging into TIC products were concerned the IRS might rule that they were actually receiving an interest in a partnership. This would be a disastrous result since the Tax Code prohibits an exchange of partnership interests. An exchange for a TIC property that has IRS pre-approval or, at the very least, conforms to structure as stated in the Procedure, would now most likely ensure a valid exchange.

With the advent of the TIC industry, as bolstered by the Procedure, many property owners are now attempting to exchange their income and investment properties for fractional interests offered by TIC sponsors. Unfortunately, not every TIC offering will be structured properly to qualify under the Procedure and fewer still will actually be pre-approved by the IRS. Careful scrutiny of a prospective TIC arrangement and guidance of tax counsel must be used to ensure the viability of a fractional interest exchange.
This material is provided for informational purposes only and is not to be construed as tax advice. The reader is strongly advised to speak with a tax consultant before attempting to employ any of the concepts stated herin.