Missoula, MT

A little bird fluttering about the office last week told me of a tantalizing opportunity for my 401(k). For those of you in the dark, a 401(k) is a retirement savings portfolio and can be used to facilitate investments. You may hear experts refer to it as a “four-oh wunk”; don’t be alarmed, this pronunciation also points to the same section of IRS Tax Code that serves as both an IRS Tax Code and the name of a retirement portfolio that can be used to facilitate investments.

Among other things, the bird mentioned that I should be primarily looking into real estate investments. Although I had heard of the NMTC (New Market Tax Credit), the RTC (Rehabilitation Tax Credit), and the benefits of using these in conjunction with a 401(k), I asked why real estate is so important, especially in light of our R.E. market woes. The answer was two-fold:

“Buy Low, Sell High, and take advantage of the Tax Credits!”

Truer words have never been spoken. With the options available today, real estate investment done right is so lucrative it should be illegal. But what type of portfolio to use? I’m no investment specialist, but the real experts say that self-directed IRAs or 401(k)s, both preferably with the Roth option, are the best for real estate investments. The Roth umbrella shields your portfolio from income tax in certain scenarios, and is the best way to get the most out of your investment money. You can work your way into a Roth IRA or “four-oh wunk” from a traditional account via rollovers and Trustee changes. Roth IRAs/401(k)s are great because you deposit money after taxes, meaning you won’t have to pay tax upon withdrawal. This allows you to save more in the long term than a traditional IRA or 401(k). If you decide to stick with the traditional “four-oh wunk”, you are allowed to invest directly in real estate depending on the rules of your portfolio. Also, you are allowed to borrow against your 401(k), but be warned: by doing so you are not eligible for the mortgage-interest tax deduction.

Another option would be to use a real estate investment trust. To my knowledge, this means that you would be placing investments through a trust of real estate specialists, thus alleviating some of the inherent risk from the shoulders of your portfolio. This is a great option for inexperienced investors that want to turn a profit but are scared of getting burned. If you already know your way around the real estate arena, most advise to skip the investment trust and the fees that come with them.

More important than the means of investment are the tax credits available to real estate investors. The New Market Tax Credit (NMTC) offers a 39% return on initial amount paid via tax credits spread through seven year installments. A private investor would receive these credits when he invests in a designated Community Development Entity (CDE). The CDE in turn invests “substantially all” of your monies in a low-income census tract. For more info on low-income tracts including lists per region and qualification criterion, click here. The best part about the NMTC isn’t the credit itself, but its ability to “twin” with the Rehabilitation Tax Credit (RTC), a credit reserved for the renovation of historic properties. The combination of these two credits “has a net effect of adding 30-35 percent more equity to the transaction”, offsetting the financial risks involved in renovating a historic property rooted in a low-income neighborhood.

A word of warning: consult both an investment and tax specialist before attempting to navigate this minefield. There are a number of pitfalls throughout the real estate investment process so it is best to move forward per the advice of a professional. If you can overcome the inherent risk of an investment coupled with the possible tax woes, a real estate investment holds the promise to be your biggest earner yet. The silver lining to 2009’s R.E. market cloud is falling home prices. True, this thought is heartbreaking in the sense that the net worth of many Americans is plummeting, but it is an “investor’s market”, and those with the cash should be chomping at the bit to get in while prices are low. Real estate is long term, secure, and has great potential for varying sources of ROI, from new renters to property appreciation and more.

So to review, a self-directed IRA or 401(k), with the Roth option, is reportedly the best way to go when investing in real estate. Alternatively, a real estate trust or loans are viable options. If you do decide to put your hard-earned money into property, be sure to take advantage of both the NMTC and the RTC. These credits “twinned” together, paired with low housing prices and an influx of inventory, means that NOW is truly the time to invest in real estate.

The Extended First Time Homebuyer & Move Up Buyer Tax Credit for Missoula Real Estate

Here's a cute video about the Extended First-Time Home Buyer Tax Credit and Move Up Buyer Tax Credit that is available to individuals who buy a primary residence by April 30, 2010.

Follow the adventures of Bob and Sally as the learn about the now extended Home Buyer Tax Credit worth up to $8000 for first time buyers and $6500 for existing home owners. It was published by Washington Homeowners.

Here are some additional articles on the topic:

Move-up Buyers & First Time Home Buyer Tax Credit Questions & Answers for Missoula Homebuyers

The New and Improved Home Buyer Tax Credit for Missoula Buyers & FirstTime Homebuyers

Missoula Real Estate Home Buyer Information

Tax Credit Information

Contact Kevin and Monica Ray today for assistance in finding your first home or to move up into a new home at 406-207-1185.

“A 2% reduction in negative word of mouth boosts sales growth by 1%”

• London School of Economics and Political Science, “Advocacy Drives Growth” Study

If you are an active participant in today’s social media circles, you NEED to be monitoring and managing your reputation. I’m not talking about your street rep (the kind that keeps you from getting mugged by a rival gang), but your online rep (the kind that keeps your company and your name shielded from mudslingers). As shown in the London School of E&PL’s Word - of - Mouth study, mismanagement of your online reputation has the potential to devastate not only your image, but also your sales rate and company growth. Thankfully, there is a bevy of web-based tools, both free and paid, that can assist you in your rep tracking.

“Reputation Management” may strike fear in your heart and conjure dollar signs in your eyes, but rest assured that you can effectively track and manage your web rep without paying for anything. How, you may ask? Well, as David Salvato comments, “Free tools are the best tools when powered by Google.”

1. Google Alerts/Google Reader, and Google Blog Search

If it was deemed socially acceptable in a business setting, I would have ‘Google’ tattooed on my forehead in full color. Unfortunately I would probably lose my job so I’ll have to be content with directing readers to use Google’s array of rep management tools. Firstly, be sure to set up Google Alerts for yourself. These keyword searches are completely free and are delivered to you as they are indexed by, you guessed it, Google. The easiest way to organize and view your Alerts is to send them directly to your Google Reader, as opposed to routing them into an email inbox. Here is a list of keywords to get you started:

• Company & Product name
  • Also track variations thereof, for example “Company X has terrible service”, “Company X is fantastic”, and so on
• Employee names
• Website Keywords
  • Check your website analytics to see which keywords are generating the most traffic
• Competitor names

Setting up your Reader to the best of its potential can be a pill; check out this preso from Ian Lurie for an easy-to-follow walkthrough. Another great tool to familiarize yourself with is Google’s Blog Search. As opposed to the basic Google Search, Blog Search scours blogs, forums, and comments to deliver results per the keywords you request.

2. StepRep

In the same vein as Google Blog Search, StepRep delivers search results per the keywords you dictate, and files them according to your response. This means that every search result you receive will be filed in your “Reputation Monitor” within either the “Positive”, “Negative”, or “Not Relevant” folders. StepRep will oftentimes deliver pages that Google Alerts miss. They also provide a website widget you can embed in your blog or site that features an easily-updated list of the StepRep results you want to promote.

Between these two tools you will have eyes on almost every mention of your brand and your competitors indexed across the world wide web. Keep in mind though, that beyond simply tracking your online reach it is imperative that you constantly produce good content. Reputation management ties directly into social networking best practices. If you are posting regularly on your blog and syndicating your content to as many sources as possible, you will increase your reputation, be it positive or negative. If you are active on Twitter and like-minded ‘live interaction’ platforms, you will affect your rep. If you are responding positively to comments and linking out to sources and working on your SEO and…the list goes on and on. Basically, if you are following the guidelines and suggestions set out by successful social media marketers you will be effectively managing your web rep. By producing as much positive content as you can muster, you will eventually smother the negative content nipping at your heels. One of the best ways to do this is syndicate your content to a multitude of sources; of course, this means that you need to set up a multitude of profiles/blogs in as many places as you can. This sort of ‘spider-web’ network increases SEO as well, since you now have 20 blog posts linking back to “Yourwebsite.com”, as opposed to just 3 or 4.

So now you know how easy (and FREE!) it really is to manage your online reputation. The tools I have listed above are free or charge, easy to use, and extremely effective for both corporations and individuals. If you would rather not use the tools mentioned above, check here, here, and here for more ideas. Remember that it is best to approach negative feedback with a customer-centric mindset; don’t fall into the trap of hoping it will just go away on its own. Take the proactive approach: deal with the problem and then bury it under a mountain of positive web content. And always remember that cultivating a good reputation is tied directly to your social networking efforts. If you are truly transparent in your networking efforts, your good reputation will make itself.

Missoula Offers a High Quality of Life - And Missoulians Like It!

A study was just released by Missoula ADAPT, Area Development And Preservation Team, showing 94% of Missoulians are satisfied with the overall high quality of life in Missoula.

Some of the study's other findings:

• 88% are happy with Missoula's public parks and open spaces
• 81% are happy with Missoula's city government

Respondents were also asked about their areas of concern, for respondents growth and development, schools and education, affordable housing, and traffic congestion were the top four.

Results come from telephone interviews with 253 voters in Missoula County with approximately 60 percent from the city and 40 percent from outside the city limits. The survey notes a sample error of plus or minus 6 percent at the 95 percent confidence level.

Missoula ADAPT is a nonprofit and loose coalition of professionals and residents interested in housing.

For more information about Living in Missoula, contact Kevin and Monica Ray of Access Realty at 406-207-1185 or visit us online at www.YourMT.com.

How Much Does It Cost to Rent in Missoula Montana?

According to a study from the National Association of Residential Property Managers (NARPM) that was published by the Missoulian this summer, a rental in Missoula typically runs between $520 per month for a studio apartment to $1400 per month for a 4+ bedroom house on average. The table below shows a breakdown:

There are many factors to consider when you are looking to rent such as:

• Does the rent include utilities? If not, how much do those run per month?
• Do you need or want a yard?
• How much is the deposit?
• Do they allow pets? Is there an additional deposit?
• Where is the property located? Will it be convenient to work or school?
• What other amenities are included?
• How long are you planning to rent?
• Would there be advantages to buying rather than renting?

For more information on Living in Missoula, contact Kevin and Monica Ray of Access Realty at 406-822-7653 (SOLD) or visit us online at www.YourMT.com.