How is Real Estate treated when considering Child's Eligibility for Financial Aid?

How is Real Estate treated when considering Child's Eligibility for Financial Aid?

If you have a child entering or in college, then this is an important question.

From the FinAid SmartStudent Guide(TM)to Financial Aid "Real estate is normally treated as an investment asset, not a business asset, unless it is part of a formally recognized business that provides services beyond utilities and trash collection, such as maid service. However, incorporating a business and transferring the real estate to the business bypasses this restriction, since a corporation is a separate legal entity. When combined with the small business exclusion, this can cause real estate to change from being reported as an investment asset to being entirely excluded from assets."

Real estate is a good investment. It's better to make money than lose money. Obviously, it doesn't make sense to really lose money just for the sake of getting more financial aid. However, what you can legally do is consider the timing and the mix of you cash, assets, etc and whose name they are under. In general it's better if you the parent and/or the grandparent owns the assets rather than your child. Delay putting assets in your childs name until late in their junior year in college after you've filed your last application for financial aid.

Also, spend your cash, don't save it. Don't buy anything you wouldn't buy, but if it's something you eventually need to buy and/or pay, then do it during the student financial aid years. If your car is getting old, then buy it now rather than waiting until it's really old. If you have lots of cash, should you purposely spend it by buying investment property? Yes, if it's a good investment property. No, if it's not a good investment property. If you do buy investment property, then consider the strategy I mentioned earlier that can cause real estate to change from being reported as an investment asset to being entirely excluded from assets for financial aid purposes.

Disclaimer: This post is just to give you some ideas. I am a REALTOR not a lawyer. Please consult legal counsel for professional legal advice.

New California Real Estate Laws Coming 2012: Water-Converving, Mining, No Fee Bundling for HOA Disclosures

Three New California Real Estate Laws Coming in 2012 are:
1. Senate Bill 837: Sellers Disclose Water-Conserving Plumbing Fixtures
2. Senate Bill 110: NHD Companies Disclose Mining Operations
3. Assembly Bill 771: No Fee Bundling for HOA Disclosures

In more detail:
1. Senate Bill 837: Sellers Disclose Water-Conserving Plumbing Fixtures
Effective January 1, 2012, the Transfer Disclosure Statement (TDS) will include a check-box in Section A for the seller to disclose whether the property has water-conserving plumbing fixtures (e.g. low-flow toilets, shower heads, and faucets under section 1101.3 of the California Civil Code.

2. Senate Bill 110: NHD Companies Disclose Mining Operations
Starting January 1, 2012, any natural hazard disclosure (NHD) must disclose whether the property is located within one mile of a mining operation, according to the map coordinate data from the Office of Mine Reclamation.

3. Assembly Bill 771: No Fee Bundling for HOA Disclosures
The HOA cannot bundle the fee for providing required HOA disclosures with any other fees, fines, or assessments. This law will prevent an HOA's third-party document preparation company from bundling together both mandatory and non-mandatory HOA documents and charging a higher fee for providing ALL the documents.

Also, the HOA is prohibited from charging any additional fees for electronic delivery. These must be available to a requesting party if the HOA maintains the documents electronically.

Additionally, at buyer's request, the HOA must provide 12 months of approved minutes of the association board of directors meeting.

Delivery of the required HOA documents must be accompanied by a cover sheet itemizing the documents.

Feel the Tropics in this Blossom Valley Home

95123 Blossom Hill Rd, Santa Teresa Blvd 4-bedroom homes under $450k

95123 is the Blossom Hill Rd, Santa Teresa Blvd region also known as Blossom Valley. Homes in this neighborhood belong to Oak Grove Elementary District and East Side Union High School District. If you are in the market for a 4-bedroom house in Blossom Valley, then as of this writing, three homes are available under $450,000.

Two of them are REO / bank-owned homes priced near $425k. The third home is even less expensive at just below $400,000 but has been on the market for 116 days probably because it is a fixer upper and had needed court approval for conservatorship granted. However, fortunately, this court approval was granted November 1st.

Compass Place Arcadia Terrace 1bed 1bath rental snapped up at $1500/month

Another reason to BUY properties is that it's getting harder to RENT.

I'm helping a well qualified renter because he's not ready to buy. A Compass Place Arcadia Terrace 1bed 1bath rental came up at $1500/month and I immediately called, but already this rental had been snapped up.

At least when you BUY a property, you are all set for 30 years. Your monthly payments stay the same for your 30 year mortgage (unlike if you rent, you don't have control if your landlord wants to raise rents)and YOU decide how long you want to stay (unlike if you rent, your landlord decides when they want to kick you out to sell.)

Cupertino School, Santa Clara Address: 258 Rodonovan Drive Santa Clara Jacuzzi Pool Sweep

258 Rodonovan Drive is less than a minute walk to and from Eisenhower Elementary of the highly-sought after Cupertino Union School District.

Cupertino Schools with Santa Clara Address : 47 Cabot Ave

47 CABOT Ave
Santa Clara, CA 95051

Robert Lei (408) 893-2410

These new Cabot Ave homes are located in the highly sought after award-winning Cupertino school district (Eisenhower Elementary, Hyde Middle, Cupertino High) and has the added benefit of Santa Clara's historic low utility costs and the cities convenient, central location within Silicon Valley. This complex on Cabot Ave has easy access to shopping on Stevens Creek Blvd and 280 freeway. Built in a Mediterranean style, these homes boast quality craftsmanship with high end materials. The gourmet kitchen has granite counters, custom cabinetry and stainless-steel appliances. These homes also provide the added convenience and comfort of two car garage and central air conditioning. --Robert Lei (408) 893-2410


47 CABOT Ave Santa Clara 95051 Middle Floor Laundry Bedrooms Kitchen 1st Floor Living Room


47 CABOT Ave Santa Clara 95051 Corner Kids Room Has Own Bathroom Robert Lei (408) 893-2410



47 CABOT Ave Santa Clara, CA 95051 Bottom Floor Robert Lei (408) 893-2410

Good deal in great school district if you don't mind nonviolent death in the property

I just got word of a good deal in great school district if you don't mind nonviolent death in the property.

The seller got many great offers on this property, but apparently the buyers who submitted their offers did not read the disclosures carefully and changed their minds when it was pointed out to them that there was a death inside the property. The owner died peacefully December of last year.

Bottom line is if you don't mind that someone recently passed away inside the house, you can get a good deal on a property in a good school district.

For people who are superstitious, perhaps you could do some blessings to remove the death issues.

Out of respect for those involved, I did not post the address in this public blog. However, if you are a serious buyer, I can give you more details privately.

Robert (408) 893-2410

Seniors can move and still keep their low property tax rate

Seniors can move and still keep their low property tax rate. For detailed information, visit the FAQ from the California Board of Equalization.
http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#1