Happy Buyers in Maple Lawn

Congratulations to our clients Mr and Mrs Devlin on the purchase of a beautiful townhome in the desirable community of Maple Lawn in Fulton, MD. A former model home built by the well-respected home builder, Mitchell and Best, this home provides a wonderful mix of luxury and comfort in the heart of town. A wonderful find for a wonderful couple.

GSI-4.6-Maple-Lawn-Farm-003-1024x680ABOUT MAPLE LAWN (from www.maplelawnmd.com):

Maple Lawn is a mixed-use community built on the principles of Traditional Neighborhood Development – a town planning philosophy inspired by the small towns of the late 19th and early 20th centuries. These small towns were distinctive, prosperous and thriving and, most of all, had a sense of community.

Maple Lawn, Maryland is that kind of place. It’s a place with award-wining architecture, where you can easily walk to shops, services and even to work. A place where large areas of open space are infused into the community, at the same time using architecture and other site/design elements to create the atmosphere of a small town. And it’s a place where you can find a unique mix of boutique shops and high quality restaurants unlike anywhere else.

At Maple Lawn, pedestrian-scaled neighborhoods with small blocks, varied housing styles and interconnected tree-lined streets encourage walking and interaction among people within six different neighborhoods with a total of 1,340 homes planned.

Corporate offices and medical/professional buildings provide jobs and services for Maple Lawn residents and for others nearby. Generous open spaces and recreational amenities, such as the Maple Lawn Community Center, offer opportunities to relax and rejuvenate that are a cut above those offered by most planned communities. The result is a more enjoyable, practical way of living, where families can live, work, shop, dine and spend quality time together.

Maple Lawn, Maryland was developed by Greenebaum and Rose Associates.

Congratulations to Dave and Kayla Gorman!

Congratulations to Dave and Kayla Gorman on the purchase of a beautiful home in the lovely neighborhood of Tanager Forest in Millersville, MD.

Great clients and great friends. On behalf of the team at Foster Spahr Real Estate and all our partners invloved in the transaction, we wish them many years of happiness in their new home!


Congratulations to the Szefc Family

Congratulations to the Szefc family on the purchase of a beautiful single family home in a wonderful neighborhood in Ellicott City, MD.

Relocating from Kansas to Maryland presented many challenges for the family of 5 including finding a location that was accessible to work while also making the schools a top priority. With a set budget, we helped guide our clients to Howard County where we could maximize the living space without sacrificing schools or location. After an extended search and several lost bidding wars, we were able to locate a property that had not yet gone active and negotiated a contract prior to it going on the market. We successfully closed the transaction 30 days later, just in time for the family to join the husband in Maryland to begin the next chapter in their journey.

On behalf of the team at Foster Spahr Real Estate, we wish the Szefc family years of happiness in their new home.

Case Study: A Successful 1031 Exchange

Congratulations to our clients Singh and Sue Bakshi for selling their single family home investment property in four corners Silver Spring and successfully rolling the funds into a beautiful investment property in North Potomac.

We have worked with our clients, the Bakshi’s, for several years and they came to us with a desire to sell an investment property and use a 1031 exchange to roll the funds into a newer investment property closer to their home. They originally bought their investment property in Silver Spring in 2009 out of foreclosure and completed a beautiful renovation on the property and brought it back to life. They decided to hold on to the property and manage it as a rental as the market was soft after we advised them they would be able to maximize their profits by holding the property for a few years until the market improved. We were able to secure several great tenants over a 3 year period and in late 2012, they made the decision to list the property for sale.

We worked directly with the owners to touch-up the property and we put together a detailed marketing plan which included professional photos, staging, and a combination of online and traditional marketing which helped secure a contract within 2 weeks. By holding off for 3 years, they were able to realize an increase in market value of over $75K and received a stream of rental income while holding the property.

Once the ratified contract was in place, we employed the expertise of a qualified 1031 exchange intermediary and helped them identify a like-kind property in a better location within the 45 day window established under 1031 exchange guidelines. The property they identified received 6 offers in the first weekend and we were able to negotiate a ratified contract $15k less than the highest bid by structuring a cash deal and putting together a fully qualified offer. We also negotiated a rent-back with the existing owner which guaranteed a 3 month income stream that would allow them plenty of time to find long-term tenants.

A 1031 Exchange is a great tool for investors looking to re-allocate funds or to roll investment gains into a larger investment while deferring the tax owed on the gains. By understanding the benefits of a 1031 Exchange and the legal requirements established for a qualifying exchange, a 1031 Exchange can be a wonderful tool in an investors tool belt.
Interested in learning more about 1031 Exchanges and how you may be able to benefit? Give us a call or drop us an email today.

Father’s Day Memorial Golf Tournament

Foster Spahr Real Estate is proud to be a sponsor of the 5th Annual Father’s Day Memorial Golf Tournament held on June 15th, 2012 and benefiting the American Heart Association and the V Foundation for Cancer Research.

Every year, the tournament raises gobs of money for cancer and heart disease research and it is a special event for everyone who participates. I want to personally thank Dave and Kayla Gorman and Jonathan (“Shack”) and Laura Schacter for dedicating countless hours of their time to put on this tournament and make it a success for everyone involved.

This is our 5th year participating in the event, and we are looking forward to another record breaking event.

And if you are looking for a great excuse to spend a friday playing golf and raising many for 2 great organizations, there is still time to register! Simply drop a note to Annualfdmgt@gmail.com for more information.

Click here to check out our Corporate Sponsorship!
Foster Spahr Sponsorship

6111 Ruatan St Berwyn Heights, MD 20740

SOLD in 3 days!- Welcome to this beautifully renovated rambler in the heart of Berwyn Heights. This home features 4 bedrooms + 2 full baths including large rec room in basement. New kitchen with granite counters, ceramic floors and new energy star appliances. New electrical wiring upgrade, new 30yr architectural roof, new stone and tiled baths, new hot water heater, etc. Hardwood floors throughout. Ideal location close to major highways, shopping and University of Maryland.

Click here to Download Listing Sheet

New Rules Require Rental Property Owners to Issue 1099s

The recently enacted Small Business Jobs Act, P.L. 111-240, contained one provision that may have escaped the notice of taxpayers who own rental property, but will affect them starting in January. Under the provision, owners of property who receive rental income will be required to issue Forms 1099 to service providers for payments of $600 or more during the year.

The act subjects recipients of rental income from real estate to the same information-reporting requirements as taxpayers engaged in a trade or business. Thus, rental income recipients making payments of $600 or more to a service provider in the course of earning rental income are required to provide an information return (typically, Form 1099-MISC, Miscellaneous Income) to the IRS and to the service provider. This provision will apply to payments made after December 31, 2010, and will cover, for example, payments made to plumbers, painters or accountants in the course of earning the rental income.

While rental property owners will not actually issue the required 1099s until early 2012, they need to start keeping adequate records of payments starting January 1, 2011, so they will be prepared to issue correct 1099s. They will also need to obtain the name, address and taxpayer identification number of the service provider, using Form W-9 or a similar form.

The law provides an exception for individuals who can show that the requirement will create a hardship for them. The IRS is directed to issue regulations on this, but has not done so yet, so there is currently no guidance on what constitutes sufficient hardship to qualify for the exception or how a taxpayer would demonstrate that hardship.

The law also contains an exception for individuals who receive rental income of “not more than a minimal amount.” Again, the IRS is directed to issue regulations to determine what constitutes “not more than a minimal amount” but has not done so yet.

If such guidance is not forthcoming before January 1, all individuals who receive rental income should start keeping records of payments to service providers so they are prepared to issue 1099s in 2012.

The law also contains an exception for members of the military or employees of the intelligence community if substantially all their rental income comes from renting their principal residence on a temporary basis.

Information Return Penalties
Taxpayers should also be aware that in addition to creating a new reporting requirement, the act increases the penalties for failure to file a correct information return. The first-tier penalty increases from $15 to $30; the second-tier penalty increases from $30 to $60; and the third-tier penalty increases from $50 to $100. For small business filers (with average annual gross receipts under $5 million), the calendar-year maximum increases from $25,000 to $75,000 for the first-tier penalty; from $50,000 to $200,000 for the second-tier penalty; and from $100,000 to $500,000 for the third-tier penalty. The minimum penalty for each failure due to intentional disregard increases from $100 to $250.

The increased penalties apply to information returns required to be filed on or after January 1, 2011.

Expanded 1099 Reporting After 2011
Currently, payments to corporations are excepted from the 1099 information reporting requirements, but starting for payments after December 31, 2011, businesses (including, now, individuals who receive rental income) will be required to file an information return for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). This change was made by the Patient Protection and Affordable Care Act, P.L. 111-148, which was enacted in March. That act also expanded the information reporting requirements to include gross proceeds paid in consideration for property.

Happy New Year

First, Id like to take a moment to Thank all of our clients, partners, and associates for helping make 2010 a success. 2010 was our first full year operating as Foster Spahr Real Estate and we couldnt have imagined a better start to what we hope will be a long and successful journey.

We see a lot of exciting opportunites and devlopments awaiting our clients in 2011. Interest rates remain at historic lows, housing prices have begun to stabilize, and a heathly level of inventory exists throughout the greater Washington DC area providing our clients wonderful opportunities to find the home of the dreams. Our investor clients should also benefit from the steady supply of foreclosures as the system works through the large inventory created as a result of the downturn.

On the flip side, our clients looking to sell should see a more stable market than has existed in the last 2-3 years and while prices having only begun to marginally stengthen, there should be a larger pool of buyers to market to providing more opportunity to get the properties moved. Our focus for our clients will be on presentation and pricing to make sure your property stands out from the crowd. This will prove to be the best strategy for those looking to sell in 2011.

Another exciting development we would like to announce is the introduction of our REO divison. We will be aggressively working with Asset Managers and Banks to deliver a superior service in getting our clients REO properties sold with quick turnarounds while at the same time, maximizing the realized return on investment. We have put together a full turn-key package and are fully funded to provide a level of service that we hope will set us apart from the competition.
Thank you again for allowing us the opportunity to be your local real estate partner. We look forward to providing you and your referrals with the highest level of service you have come to expect from Foster Spahr Real Estate.

Best wishes for a successful 2011,
Dan Spahr
Pricipal Broker

Happy Thanksgiving from Foster Spahr Real Estate

Thanksgiving is the time of year that is traditionally known for giving thanks. We at Foster Spahr could not allow such an opportunity to pass without participating. Thank You!!! To all of our Clients, Partners, Friends and Family, for all of your hard work and support.

Truly we are grateful and feel blessed that you are a part of Foster Spahr’s success. Have a wonderful Thanksgiving!

Please take some time over the Holiday season to contribute to your favorite local charity or doante your time to a cause you are passionate about. Many charitable organizations have felt the strains of the recession and need our help more now than ever. If we work together, we really can make a difference.