MiamiUrbanLife.com – The Newest Addition to Miami’s Urban Core

“Miami urban life.”

“Miami urban life.”

“Miami urban life.”

Say it three more times – but without laughing this time.

When our mother, Julia De Forest Sturtevant Tuttle, came to Miami in 1891 to see a 40-acre orange grove her father left her after passing, she quickly purchased another 640-acres of orange groves along the Miami River. Long story short, in 1895 Julia Tuttle convinced Henry Flagler to extend his Florida East Coast Railway to Miami and the rest, as they say, is history.

Fast forward 100+ years. After decades of neglect and ignorance, city leaders (political and otherwise) realize that America’s true land of opportunity is the city, an urban settlement with a large population.

We were a little late in picking up on this trend, but better late than never. If you look around, you will see that we’re more than making up for lost time.

Enter the Central Business District.

Enter the Brickell Financial District.

Enter Park West.

Enter Edgewater (now marketed as the Arts District).

Enter Wynwood (now marketed as Midtown).

Enter the Design District.

Enter the construction crane (Florida’s new state bird).

Where Julia Tuttle’s orange groves once stood, now stand residential towers like:

One Miami – 325/335 S Biscayne Blvd

Metropolitan Miami – 300 S Biscayne Blvd

• Project under construction; will be home to a Whole Foods Market.

Epic Residences & Hotel – 300 Biscayne Way

• Project under construction on the site of the former DuPont Plaza Hotel, which was originally home to Henry Flagler’s Royal Palm Hotel. The Royal Palm Hotel featured Miami’s first elevator and swimming pool.

50 Biscayne – 50 Biscayne Blvd

• 50 Biscayne was erected on land that once served as home to the Columbus Hotel. Remember the sign on the top that used to read “Top O’ the Columbus”? I do.

Everglades on the Bay – 224 Biscayne Blvd

• Project is under construction on the former site of the Everglades Hotel.

The Loft Downtown – 234 NE 3 Street

The Loft Downtown II – 133 NE 2 Avenue

Marina Blue – 888 Biscayne Blvd

• Project scheduled to begin closings in a month or so. Building is located across the street from American Airlines Arena

900 Biscayne Bay – 900 Biscayne Blvd

• Project schedule to begin closings in mid-2008. Building is located directly north of Marina Blue

Ten Museum Park – 1040 Biscayne Blvd

• Building erected on vacant land that served as a parking lot for patrons of the original Club Space.

Marquis – 1100 Biscayne Blvd

• Building under construction on land that was home to the Howard Johnson Hotel just south of the I-395. My mother used to scrape two dimes together to buy ice cream at the HoJo back in the day.

The northern end of the boulevard (south of I-395) where Marina Blue, 900 Biscayne Bay, Ten Museum Park, and Marquis converge has been dubbed “The Biscayne Wall”.

It’s a Miami thang. We do nicknames for everything and everyone. Manuel becomes Manny. Ricardo becomes Ricky. Daniel becomes Danny. Gabriel becomes Gaby and Luis becomes Crazy Lou. You get the point.

October 2007

Enter Alex Gonzalez.

No, not the slick-fielding ex-Marlin that ended Game 4 of the 2003 World Series with a line-drive home run over the left field wall in the bottom of the 12th inning (I was there – in the left field seats). Tampoco the sure-handed shortstop from Killian High who played many years with the Blue Jays and the Cubs.

I’m talking about the other Alex Gonzalez. The Braddock Senior High attendee (alright Challengers/Bulldogs!) that grew tired of long commutes, strip shopping plazas, and the sterile environments that comprise West Kendall. The one that decided to become part of Miami’s urban life a little over a year ago.

Sitting at home one day, Alex (probably Alexander or Alejandro…I don’t know) noticed that what was once a state bird was now a flock of state birds hovering high above the streets of Dwntwn Miami.

Interlude: Alex has since confirmed that his birth name is just Alex, no Alexander or Alejandro.

Enter Eureka! moment.

“With so many new condo units and so many people moving into Miami’s urban core, why not provide these nouveau urban dwellers with an online social network where they can interact by associating themselves with the condominium communities they live in?”

If this were a Guinness commercial, you would now hear “brilliant!”.

Enter MiamiUrbanLife.com.

Want to find out who your neighbors are? MiamiUrbanLife.com

Want to know where they hangout on the regular? MiamiUrbanLife.com

Want to know what they are doing tonight? MiamiUrbanLife.com

Want to see pictures of how everything went down last night? MiamiUrbanLife.com

Want to invite a neighbor over for dinner at your place tonight? MiamiUrbanLife.com

Want to know if that new restaurant down the street is as good as they advertise it to be? MiamiUrbanLife.com

Want to know what it’s like to live in any of the aforementioned buildings (and others)? MiamiUrbanLife.com

Want to let everybody know about your new listing for sale? MiamiUrbanLife.com

Live way out in deep Kendall en la cientoipico y la cientoipico and want to live vicariously through the experiences of an urban dweller? MiamiUrbanLife.com

With 148 members in just 3 short months, Alex states, “I love the way Miami is evolving and growing up to be a real city. I envision that MiamiUrbanLife.com will become an essential tool for local residents to learn more about the city and interact with each other”.

Can I get an “Amen”?!

Now say it again:

“Miami Urban Life.”

“Miami Urban Life.”

“Miami Urban Life.”

It’s not so funny anymore, huh?

Five, six, seven years from now, you’ll be laughing again at those very words.

Only to keep from crying.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305.491.7179 and SalgadoA@gmail.com

Elected Property Appraiser: To Be or Not To Be?

While Amendment One and property tax reform have garnered most of the attention in the upcoming election, another question of much importance that asks voters if they’d like to transfer the duties of the Miami-Dade County Property Appraiser from a person appointed and supervised by the Mayor to a person elected and subject to recall by the voters is on the ballot as well.

Of the 67 counties in the state of Florida, Miami-Dade’s Property Appraiser is the only one that remains appointed. Voters elect the Property Appraiser in all other Florida counties.

Victor Diaz, chairman of the Home Rule Charter Review and a proponent of making the Property Appraiser an elected official, was quoted as follows by the the South Florida Business Journal: “there is a lack of information on how taxes are calculated and levied…we think it would promote greater public awareness of how the process works. Property taxes have such a direct and immediate impact on the homeowner’s ability to retain their homes and businesses, that the public should have direct input”.

According to a Miami Today News article, county commissioner and reputed songstress, Rebeca Sosa, said that an elected property appraiser will have to be more responsive in explanations and educating the public about how taxes happen and the setting of policies and formulas. “They’ll have to respond to the public.”

Others like Florida House Representative, Carlos Lopez-Cantera, feel that the Property Appraiser should become an elected position because he keeps hearing “that people don’t think their properties are fairly assessed”.

“A lack of information on how taxes are calculated”? Excuse me, Mr. Diaz. Are we living in the same age? Last I checked, we were all living in the Information Age. According to a Nielsen/Net Ratings press release, nearly 75% of Americans had access to the Internet from home – in 2004. Information on how property taxes are calculated in Florida are just a few Google search words away.

Internet not your thing? You want to hear it from the “horse’s mouth”?

The Property Appraiser’s Office is a public office located on the 7th floor of the Stephen P Clark Center at 111 NW 1st Street in Dwntwn Miami. The public information counter is open from Monday through Friday from 8:00 am to 5:00 pm. Any one of several qualified evaluators will be more than willing to educate the uninformed on the process of how property taxes are calculated.

Furthermore, the Miami-Dade Property Appraiser’s Office conducts an “Interview Period” when additional resources are dedicated to providing taxpayers with an explanation of their assessment for a period of 25 days after the proposed taxes have been mailed (by no later than August 24th). Differences of opinion on value and any discrepancies can be discussed at this time.

Not satisfied with the Property Appraiser’s opinion of value? File a $15.00 value petition with the Value Adjustment Board and present your case in front of an independent Special Magistrate who decides whether the Property Appraiser’s opinion of value is correct.

Maybe Mr. Diaz, Mrs. Sosa, and Mr. Lopez-Cantera can educate us all on how millage rates, the other side of the property tax equation, affect one’s property tax bills.

The formula for property taxation is as follows:

Property’s Taxable Value x Millage Rate = Property Tax Amount

For some reason talk about property tax reform and the reasons given for electing a property appraiser all revolve around just one side of the equation. The attempt to reform property taxation has, thus far, focused only on how property is assessed in the state of Florida. The other side of the equation, millage rates – also known as tax rates, are set by the various taxing authorities within whose jurisdiction the property is located. The Property Appraiser, elected or appointed, DOES NOT SET THE TAX RATE.

I don’t get it. State lawmakers are trying to correct the side of the equation that they don’t control while completely ignoring the side that they can influence.

According to Florida TaxWatch, a non-partisan nonprofit research institute, which concentrates on statewide taxing and spending issues, total property tax levies in Florida doubled in just the last six years, mostly due to the rising values of existing and new construction that brought along a dramatically increased tax base.

Common sense would tell one that an increased tax base (especially the kind of increases we saw during the housing boom) offers taxing authorities the opportunity to drastically cut the millage rate. Instead, locally elected officials publicly stated that they lowered taxes during the housing boom while blaming the injustice on how Property Appraisers assess properties in Florida.

Just as an example, the City of Miami lowered the city millage an average of just 0.118875 each year from 2002 – 2006. This allowed elected officials to publicly state that they “lowered taxes”, while continuing to generously fill city coffers by squeezing the unprotected tax-paying minority faced with high initial assessed values and/or no protection from Save Our Homes aka Amendment 10.

While I do think that the Property Appraiser and his staff should make a more concerted effort to reach out and educate the public on the benefits of the exemptions available, on how Save Our Homes works, and how they derive market value, I don’t agree that the position has to become an elected one to do so. The current Property Appraiser, Marcus Saiz de la Mora, is more than capable of performing these and all his other duties as Property Appraiser.

All Property Appraisers in the state of Florida, appointed or elected, are required to follow the rigid guidelines of Chapter 193 of the Florida Statutes.

The Property Appraiser’s Office is currently run by a skilled professional with 24 years of experience. I don’t see how the public would benefit from turning an administrative position over to a career politician who knows not what a lot and block legal description is, but knows how to tap lobbyists for cash.

Adding an additional layer of bureaucracy to one already in existence is just not the answer to reforming property taxation.

The opinion expressed in the preceding post is the opinion of Adrian Salgado and is not intended to malign any group, club, organization, company, or individual. The views of the writer are his own and do not, in any way, reflect the views of the broker, principals, or other associates at RED I Realty or RED I Mortgage.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com.

Amendment One: Property Tax Reform or Tax Cut?

Before I get into the gist of Amendment One, the proposed property tax amendment to the Florida Constitution that will go on the ballot for voters to decide this coming Tuesday, January 29, 2008, I would like to encourage all U.S citizens to exercise your fundamental right to vote – the simplest form of government participation. It won’t even get in the way of (un)American Idol and SportsCenter. I promise.

While no one will debate the fact that Florida’s property tax system needs serious reform, how to go about reforming the system remains a hotly contested issue throughout the state.

The following is what’s proposed by Amendment One:

• doubles the Homestead Exemption from $25,000 to $50,000. The new exemption does not apply to school taxes (about 40% of property taxes). It applies fully to homesteads valued at more than $75,000 and partially for homesteads valued over $50,000.

• provides a 10% cap on assessments for non-homestead property; not applicable to school taxes.

• allows current homeowners to transfer up to $500,000 in Save Our Homes (Amendment 10) tax benefits from their current homestead to a newly purchased home. Applies to homes purchased in or after 2007.

• creates a new $25,000 exemption for business property, including office furniture, computers, machinery and equipment.

At first look, voting yes on Amendment One sounds like a no brainer. Who doesn’t want lower property taxes and the freedom to move without being “unfairly taxed” (portability)?

Analyzed closely, however, Amendment One me huele a tumbe. It’s more politics than actual tax reform.

Allow me to analyze the facts. Let’s look at the three items on the amendment that affect current and prospective property owners. After all, we do make decisions based on facts. Es o no es?

DOUBLING THE HOMESTEAD EXEMPTION (HEX)

For those not in the know, Homestead Exemption is commonly referred to as HEX by the staff at the Miami-Dade Property Appraiser’s Office. It’s sexy like that. On second thought, it rhymes with _ex. It doesn’t get any sexier than that.

This one’s pretty straight forward. Or is it? The current $25,000 Homestead Exemption would be “doubled”. Homeowners would get to deduct an additional $25,000 from the assessed value of their primary residence if it is valued at $75,000 or more. However, the second Homestead Exemption does not apply to school district taxes.

The current $25,000 Homestead Exemption saves Florida property tax payers an estimated $500 in annual property tax the first year it is granted to a homeowner (it saves a lot more as the cap afforded by Save Our Homes increases the longer one stays put). The additional $25,000 Homestead Exemption proposed under Amendment One would save the average Florida tax payer an average of $240 more in annual property tax.

TEN PERCENT (10%) CAP ON NON-HOMESTEAD PROPERTY ASSESSMENTS

Under Amendment One, assessments of non-homestead properties (warehouses, retail locations, offices, raw land, multi-family apartments, second homes, vacation homes, etc.) would be capped at 10% a year. However, because school tax districts are not covered under the cap, the 10% cap would only apply to approximately 60% of the average tax bill.

As it currently stands, non-homestead properties don’t qualify for a HEX (and consequently don’t benefit from a cap on the assessed value). Therefore, market value and assessed value are always the same. As a result, the property’s market value is always equal to the property’s taxable value.

The following example, using the City of Miami millage rate for 2007 and assuming that it would remain steady for subsequent years, should help you understand this portion of the amendment better:

2007 Market Value (MV): $200,000
2007 Assessed Value (AV): $200,000
2007 Total Millage (TM): 0.0221551

2007 Tax Amount: $200,000 (AV) x 0.0221551 (TM) = $4,431.02

2008 Market Value: $240,000 (20% increase)
2008 Assessed Value: $220,000 (10% CAP)
2008 Total Millage: 0.0221551

$220,000 (AV) x .0142071 (Total Millage – School Millage) = $3,125.56
$240,000 (MV) x .007948 (School Millage) = $1,907.52

2008 Tax Amount: $3,125.56 + $1,907.52 = $5,033.08 (13.6% increase)

Had school tax districts applied, the total tax bill would have been:

$220,000 (AV) x .0221551 (TM) = $4,874.12 (10% increase)

Politicians and other advocates of Amendment One have made assertions that non-homestead properties’ taxes cannot go up by more than 10% annually. The example above proves this statement to be incorrect.

PORTABILITY

The portability provision is THE selling point of Amendment One.

Amendment One would allow homeowners to transfer a tax shelter of up to $500,000 of capped value accumulated under Save Our Homes to a different property.

Example:

Assume that you bought your home in 1994, the year that Save Our Homes took effect. In 1995, the first year you qualified for a Homestead Exemption (base year), the property’s market value was $100,000.

Let’s assume that the millage rate from 1995 – 2007 remained steady at .023 throughout those years (it usually goes down a little bit due to an increased tax base), that the market value increased at an annual rate of 5% from 1995 – 2003; 20% from 2004-2006; and remained stable in 2007, and that the assessed value was capped at exactly 3% each year.

As it currently stands, Save Our Homes caps the assessed value of a property with a Homestead Exemption at 3% or the Consumer Price Index (CPI aka inflation), whichever is lower. For purposes of this example, I used a flat 3% rate. However, there were years between 1995 & 2007 in which CPI was lower than 3%.

Using the example above, not only would you have saved $10,155.29 in property taxes from 1995 – 2007 as a result of having a Homestead Exemption, you would have also created a cap of $112,728.00 that Amendment One would allow you to transfer to a new, more expensive property.

Email me if you’d like to see the spreadsheet detailing what I describe above.

Let’s assume that you live in an unsightly cookie-cutter community and your neighbor, Mr. MeToo, has the same exact house as yours. However, Mr. MeToo bought during the housing boom in 2005 and paid $230,000 for his home. Now assume that the market value and assessed value of his home in 2006, the first year that he qualified for a HEX, was $230,000. If you subtract the $25,000 HEX from his assessed value, your neighbor’s house has a taxable value of $205,000. With a millage rate of .023, Mr. MeToo paid $4,715 in property taxes in 2006 for the same exact house as yours. You? $2,688.26.

Meanwhile, in late 2007 you decided that you no longer wanted to live next to Mr. MeToo and decided to buy a bigger property in a different community with large cookie-cutter homes. You paid $300,000 for the 2,200 SF 4/3 with a 2-car garage and an olympic size pool fronting an L-shaped lake that the developer, SeCaen Homes, man-made.

The first year that you qualify for the double HEX, 2008, the market value of your new castle is:

2008 Market Value (MV): $300,000
2008 Assessed Value (AV): $187,272 ($300,000 – $112,728 CAP from former home)
- $25,000 Homestead Ex: $25,000
- $25,000 Homestead Ex: $25,000

Taxable Value (non-school) = $137,272
Taxable Value (school district) = $162,272

2008 Total Millage: 0.0221551
2008 Non-school Millage: 0.0142071
2008 School Millage (SM): .007948

$137,272 x .0142071 = $1,950.24
$162,272 x .007948 = $1,289.74

2008 Tax Amount = $3,239.98

Your new neighbor, la Señora Yo(landa) Tambien, has the same exact house as yours with the same 2-car garage, the same olympic size pool, fronting the same exact L-shaped lake. She also paid $300,000 for her new crib. However, Yo(landa) Tambien, is a first time home buyer in Florida. Let’s take a look at how her situation differs:

2008 Market Value (MV): $300,000
2008 Assessed Value (AV): $300,000
- $25,000 Homestead Ex: $25,000
- $25,000 Homestead Ex: $25,000

Taxable Value (non-school) = $250,000
Taxable Value (school district) = $275,000

2008 Total Millage: 0.0221551
2008 Non-school Millage: 0.0142071
2008 School Millage (SM): .007948

$250,000 x .0142071 = $3,551.78
$275,000 x .007948 = $2,185.70

2008 Tax Amount = $5,737.48

Let’s look at the snowbird who purchased yet the same house at the same price and see how his situation differs:

2008 Market Value (MV): $300,000
2008 Assessed Value (AV): $300,000

Taxable Value (non-school) = $300,000
Taxable Value (school district) = $300,000

2008 Total Millage: 0.0221551

$300,000 x .0221551 = $6,645.30

2008 Tax Amount = $6,645.30

Sidebar: No one has even mentioned how inequities in market values will affect the portability cap. I’ve seen units in condominium buildings that are mirror images located side by side with two totally different market values.

Those with a HEX don’t tend to complain or even notice the inequities because the HEX caps their assessed value and as a result, their property taxes, anyways. However, if Amendment One is passed, the market value of a property (even when it has a HEX) becomes much more important due to the fact that it determines the cap that you will be able to “walk away” with if you decide to move.

CONCLUSION

While it’s hard to reject something that cuts taxes (no matter how small the cut), the long term effect that Amendment One will have on the local economy and our quality of life, far offsets any gains it will produce. This isn’t tax reform. It’s simply a tax cut directed at appeasing a powerful group of voters – current homeowners.

The additional $25,000 Homestead Exemption minus the school taxing district is like a bad Carrot Top joke. All this talk about property tax reform and the only thing someone like me (who has no plans to move in the near future) gets is an average of $240 in annual tax savings? That’s not even enough to buy a bottle of Grey Goose to impress my friends y la rubia that’s jocking my stainless steel Casio at a local nightclub!

The 10% cap on non-homestead properties, while a step in the right direction, is not nearly enough to provide much needed relief to those who own investment properties and second homes in Florida.

According to Florda TaxWatch, net migration into Florida has slowed considerably in the past few years. The high cost associated with owning property in Florida (property taxes and insurance) are likely to be a big cause of that. Snowbirds and other part-time residents, a segment of homeowners in Florida that we ALL depend on, are a great deal for Florida full-time residents. Part-time residents pay full-time taxes, but use only a fraction of the services that a full-time resident does.

While the current portability provision may stimulate the housing market at first, I think it’s overall effect on the local housing market is being overstated by proponents of the amendment. I think most people who stand to benefit from portability won’t take advantage of it. This is just my personal hunch. I have no empirical data to support this statement, but neither do proponents who confidently state that portability will resurrect the critical real estate market.

Time will tell if people will move out of their homes and purchase new ones as a result of portability. I’m willing to bet that a large percentage will not.

Besides, most move-up buyers and even those looking to downsize need to sell their current homes before they can buy a new home. Who’s going to buy your condo so that you can move into the single-family home you so desperately need when Amendment One does absolutely nothing for the first time home buyer – a very important segment of the housing market?

Amendment One creates an incentive to sell, but no incentive for those being penalized – first time buyers and part-time residents – to buy.

This property tax system would continue to shift the tax burden on those who need tax relief the most. Florida House Minority Leader, Dan Gelber, described it best when he compared portability to a pyramid scheme: “You’re in early, you get the best tax rates. You’re in late, you pay for everyone else’s service”.

Yo(landa) Tambien, Mr. MeToo, and those who own a second home in Florida shouldn’t have to pick up the slack for everybody else.

The portability provision, if passed (the amendment needs a 60% tally in order for it to pass), may very well prove to be unconstitutional. Expect lawsuits to surface and years of expensive litigation to follow.

Who fronts the bill for the expensive litigation? Florida taxpayers.

If you purchased a home prior to the housing boom and are looking to move in the near future and feel that the tax benefits offered by the portability provision far outweigh the long-term damages that Amendment One will most definitely produce, by all means feel free to vote YES on Tuesday.

If you demand a tax system that is fair and equitable and one that we, as citizens of this state, can be proud of and market to the rest of the world, vote NO on Tuesday. Don’t bail out most (not all) state lawmakers that are secretly praying and lighting candles to San Lazaro and his dogs in the hopes that they can slip this wolf in sheep’s clothing past us.

If Amendment One passes, you can kiss real property tax reform goodbye. This is what we get – a $240 tax cut and an even larger headache in the future. That’s it.

Prove to the rest of the Union that this is Florida, not Flori-duh.

The opinion expressed in the preceding post is the opinion of Adrian Salgado and is not intended to malign any group, club, organization, company, or individual. The views of the writer are his own and do not, in any way, reflect the views of the broker, principals, or other associates at RED I Realty or RED I Mortgage.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com.

Real Estate Diary – A Day in the Life of a Realtor: Vol. 1

January 16, 2008
11:13 am

I take notice of the time on my stainless steel Casio G-Shock (model number G011D-7B to be exact). My partner – the estimable Raul Estrada – and I are wrapping up a meeting in which we are discussing the marketing section of our 2008 business plan. I figure, “if we leave within the next 7 minutes, it gives us more than enough time to get to La Ciudad Que Progresa by noon” – the time that Rafael and I agreed to meet.

11:15 am

Raul and I agree that we should drop off my car in a central location (I have appointments in the east side of Miami in the latter part of the afternoon and Raul is coming back to East Kendall) and ride out together.

11:27 am

East on Kendall Drive onto the northbound ramp of SR-826. North on SR-826.

Neil Rogers is doing the usual – ridiculing 560 WQAM’s management and on this particular day, the Miami Dolphins as well. A press conference is scheduled to interrupt his radio talk show at noon. The Miami Dolphins organization will officially name a new head coach. The Bill Parcels era has officially begun.

11:30 am

I get past Sunset Drive, approaching Miller Road…..and I have to hit my brakes. Vehicular traffic has come to a halt! What the…

A car accident? These damn rubbernecks. Why can’t they put on the blinders and continue going about their business (like talking on their iPhones)?

I have to be in Hialeah within the next 25 minutes or so. It doesn’t look like I’ll be getting to the Bird Road exit anytime soon. Traffic is literally bumper to bumper.

11:45 am

Just my luck. Stuck in traffic 15 feet above Bird Road and Bird Road Rudy is out there somewhere, not far from here, “fighting a cold war” – waving a Mossburg shotgun and an AK-47 while exclaiming “Metro Dade Gang Unit, here I am baby…come get some whenever you’re ready” into the camera pointed at his tattooed handsomeness.

Note: The FBI came instead. Apparently, Rudy the Birdman didn’t get the memo stating that Metro Dade (Police) had become the Miami-Dade Police Department several years back. He did receive, but failed to read the memo stating that convicted felons are not allowed to possess firearms, much less .50 caliber and semi-automatic assault rifles .

Earlier in the morning I learned that Bird Road Rudy and I have something in common. We I attended the same high school. I hear that he was registered, but never purchased the compass and map he so desperately needed to find his way into the classroom.

Poor Birdman. Let’s all feel sorry for him. Better yet, let’s feel sorry for his tattoo artist. That guy may be going out of business as a result of Rudeman’s arrest.

7-8-6-5-8-6-5-8-4-4

“Ralo, let’s just ride out separately. This traffic is backed up pretty nastily.”

“Yeah. Do you think we should get off on Coral Way and take 72nd?”

“I don’t know. Let’s play it by ear. I’ll let you know if I get off.”

“OK. Call the guy and tell him that we’ll be there a little late.”

“Yeah, yeah.”

11:55 am

3-0-5-3-6-2-0-3-2-2

“Rafael, que pasa? Te habla A…”

“Chamaco, estamos ahi a las doce en punto.”

“No mira, te llamo porque se me va hacer un poco tarde. Parece que hay un accidente en el Palmetto y esto esta que no se mueve.”

“En que parte del Palmetto estas tu?”

“Aqui llegando a la salida de Coral Huey.”

“No hay problema. Yo le digo al muchacho que te espere. Cuanto te demoras mas o menos?”

“Yo diria como unos veinte minutos, pero en realidad no se decirte porque en si, no se lo que esta pasando.”

“No importa. El te espera.”

“Esta bien. Cualquier cosa dale mi numero de telefono y dile que me llame.”

“Okay.”

11:59 am

The Neil Rogers Show is interrupted as promised. I press the CD/AUX button on my car stereo. The Stills’ Logic Will Break Your Heart is in CD slot #5.

12:04 pm

As I get past the Coral Way exit and approach the SW 8 ST exit of SR-826, the shoulder on the side of the road has officially become the unofficial 6th lane. A gentleman driving a diesel-powered Ford F-350 is the first to decide that it makes sense to do this. I mean, what kind of people wait in traffic?

Guess what happens after the guy in the big truck (you do know what they say about guys who drive big trucks right?) decides that his time is too valuable for him to wait? You guessed it. All the other lemmings suddenly conduct a time/value analysis and decide that their time is too valuable to wait in traffic as well.

12:06 pm

Just as I backtrack to track #2, Gender Bombs, of Logic Will Break Your Heart, my listening pleasure is interrupted by the jazzy melodies of the Urban Style ringtone of my Motorola RAZR V3i.

305-491-xxxx

“This is Adrian.”

“Si, Adrian?”

“Es el que habla.”

“Mira, te habla el cerrajero. Una pregunta: esto es un apartamento o un huerhow?”

“No, no. Es un apartamento. Ya tu estas ahi?”

“Si, si. Estoy parqueado enfrente del apartamento. Tu estas adentro?”

“No. Yo hable con Rafael hace un momento y le explique que me iba a demorar un poco. Hubo un accidente en el Palmetto y esto esta en candela.”

“Bueno, vamos a hacer algo. Yo voy a tomarme un cafecito cerquita de aqui. Llamame cuando estes llegando y yo me vuelvo a tirar pa’ ca.”

“OK. Cual es tu nombre?”

“Fidel.”

“Fidel?!”

“Si.”

I immediately run this guy’s family lineage through my head. If he was born post 1958, what is the probability that his parents hung out and killed some “time” (pun intended) in the Sierra Maestra?

“Bueno, Fidel. Yo te llamo cuando me este bajando en la sesentaiocho (W 68 ST) pa’ que sepas que ya estoy llegando.”

“Dale!”

The literal English translation of the Spanish word, “dale”, can mean one of two things. It could mean “go” or it could be used as a command to “physically inflict pain on him/her”.

In Cubanspeak, when two individuals (A & B) are holding a conversation and individual B ends the conversation by saying “dale” to individual A, individual B does not intend for individual A to strike anyone. Nor does he/she intend for him/her to go anywhere. Individual B is simply acknowledging and confirming what was just said. Instead of boringly saying “adios” to end the conversation, he/she opts for “dale”.

It’s not uncommon to hear it said more than once. You may hear it as “dale, dale”. The meaning remains the same. Redundancy changes nothing.

12:10 pm

I’ve been in traffic for well over 30 minutes. I succumb to peer pressure and decide to join the lemmings that I silently criticized just 6 minutes ago. On to the shoulder I go and swiftly make my way through to the eastbound exit of SW 8 ST.

Before I can get off of this foresaken “expressway”, however, I notice that “Driver Darren” in the late model 4-door Mazda 6 on the SW 8 ST northbound on-ramp of SR-826 is attempting to maneuver a 3-point turn to get off of the single-lane on-ramp.

(Urban Theme ringtone…786-586-5844)

“Do you see the guy trying to get off of the expressway?”

“Sure do…”

Before I am able to finish my reply, guess what happens next?

Yep! The SR-826 northbound on-ramp has officially become an unofficial off-ramp.

Thank you “Driver Darren” in the late model 4-door Mazda 6!

12:17 pm

I’m just happy to be sharing this stretch of “the Trail” with such an interesting cast of characters – the elderly lady and her walker in front of the Palmetto Subacute Care Center, a prostitute and her john exiting La Fuente Motel, and illegal immigrants standing on the sidewalk carrying a look that used to say “will work for food” years ago, but now says “keep the Big Mac, I want dead presidents”.

It’s a shame that I left my camera in my bag in the trunk of the car. What kind of blogger leaves his camera in the trunk of the car? I’ve let my readers down.

A lefthand turn on SW 72 AVE proves to be a good move. Once I get past the traffic circles, 4-way stop signs, and poorly timed traffic signals, I am able to “jump” on the westbound on-ramp of SR-836 on NW 72 AVE that immediately connects to the northbound SR-826.

12:38 pm

I am now approximately 38 minutes late to my appointment with Fidel the locksmith. Good thing he doesn’t seem to mind. It’s business as usual in “La Ciudad”. They understand that business is conducted in CST (Cuban Standard Time), not EST (Eastern Standard Time).

Fidel is here to remove the locks and rekey the door of what is now a bank-owned condominium unit (REO) that Raul and I were chosen to list, market, and ultimately sell.

Before we get to that point, however, we must assess the interior condition of the unit – somewhat boring work that consists of detail-oriented observation (you’d be amazed to learn how difficult this really is) and lots of digital photo taking.

At the very least, I am afforded the opportunity to work on my photography skills and visit the crowded streets of West Hialeah – where painted-on “Chicle Jeans” with high heels are still considered fashionable. I love it.

Nevertheless, it takes us about an hour to do everything that we came to do. Raul and I part ways. I get back on the southbound SR-826 to make my way back to civilization (I’m joking…half).

2:09 pm

My uneventful trip back to civilization (damn, I said it again) allows me to think about how minor traffic accidents on the expressway (or anywhere else for that matter) can affect one’s day. A minor traffic accident has literally wiped out one (productive) hour from my day.

Who’s responsible for paying me for that hour? Raul – for choosing to partner up with me (or was it vice-versa)? My broker? The DOT? The driver who caused the accident? The lender who chose us to list, market, and ultimately sell the foreclosure property?

Who? Quien?

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com

$25,000 Homestead Exemption

If you hold legal or equitable title to real property purchased in Miami-Dade County (or anywhere else in the state of Florida) in 2007, “reside thereon and in good faith made it your permanent residence as of January 1, 2008″ and are a U.S. citizen or a legal resident of the United States, you are entitled to a $25,000 Homestead Exemption.

If you purchased a residential property within the first three quarters of 2007, you may have received a pre-printed application through the mail. Those who purchased in the latter part of 2007 may not have received a pre-printed application. No need to worry. An application, along with general instructions on how to complete the application, are available online at the Miami-Dade County Property Appraiser’s Office Exemptions page. The active links above will take you directly to the PDF files.

All property exemption applications may be filed with the Miami-Dade Property Appraiser’s Office anytime up to March 1, 2008 March 3, 2008. Applications can be filed in person at:

Stephen P Clark Center (Government Center)
111 NW 1 Street, 7th Floor
Miami, FL 33128

Note: I’ve been informed that the Property Appraiser’s Office has set up an area in the lobby of the Stephen P Clark Center where one can apply for any of the property tax exemptions made available.

You can also apply for the exemption via U.S. Postal Mail by sending the application to:

Miami-Dade County Property Appraisal Department
P.O. Box 013140
Miami, FL 33101-3140

In addition to the application, you must provide one proof of ownership, and two proofs of Florida residency dated prior to January 1, 2008.

Any one of the following Proofs of Ownership can be submitted:

1. Warranty Deed
2. Property Tax bill
3. Notice of Proposed Property Taxes
4. Homestead Exemption Automatic Renewal Receipt
5. Computer Public Value Inquiry printout

Any two of the following Proofs of Florida Residence can be submitted:

1. Driver’s License
2. Automobile Registration (not leased)
3. Voter Registration
4. 1040 Income Tax Return filed in Florida or W-2 Form addressed in Florida
5. Intangible Tax Return filed from Florida
6. Florida Unemployment Compensation Registration
7. Employment letter with Employer’s letterhead
8. Child School report card or School letter attesting child’s registration
9. Moving van receipt from another county or state
10. Doctor’s letter with Doctor’s letterhead
11. Church letter with Church letterhead
12. SSA-1099 fiscal year Social Security Statement addressed in Florida

If you plan to mail your application, I advise that you send it Registered Mail/Return Receipt.

Note: Social Security Numbers are required for applications to be processed. Applications will be denied if Social Security Numbers are not provided.

The $25,000 Homestead Exemption will provide you with estimated tax savings of approximately $500 your base year (the first year that the Homestead Exemption is granted). More importantly, as a result of Amendment 10, the Homestead Exemption caps the Assessed Value (not the Market Value) of your primary residence at 3% or the Consumer Price Index (CPI), whichever is less. The “cap” remains so long as the title remains unchanged and the homeowner continuously receives HEX on the same home. A good example of how the Homestead Exemption and Amendment 10 impact primary homeowners is available by pressing the hyperlink in this paragraph.

If you have any questions regarding Homestead Exemptions or any other property exemptions, feel free to contact me at 305-491-7179 or SalgadoA@gmail.com.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305.491.7179 or SalgadoA@gmail.com.

Mortgage Forgiveness Debt Relief Act of 2007

To those who contacted me regarding the possible IRS tax ramifications regarding short sales from a seller’s perspective (and feel intimidated by the comments section for whatever reason), the Mortgage Forgiveness Debt Relief Act of 2007, a bill sponsored by Congressman Charles Rangel of New York that was recently enacted on December 20, 2007 with the intention of helping homeowners avoid foreclosure, addresses that.

The bill provides a three-year window for homeowners to sell their property and pay no taxes on any debt forgiveness allowed by the lender. For example:

Let’s say you purchased a home for $200,000 during the housing boom in 2006 and financed 100% of the purchase price with a 2-year interest only adjustable rate mortgage like most of your neighbors. However, you were recently laid off by your employer and the only job offer you received was in Fargo, North Dakota. You are now forced to sell your home because you can’t afford to pay rent plus all those jackets and boots you have to buy in order to live in Fargo, as well as the mortgage, property taxes, and insurance for your Miami home. Renting your Miami home just doesn’t make any financial sense because you’d be faced with a tremendous negative cash flow. Add insult to injury, your home is now worth only $160,000.

Your only option is to short sell your home at a price where the lender will agree to short sell or let the property go into foreclosure.

In the past, in a scenario like this one (assuming that the lender agrees to a short sale at $160,000), the IRS would have treated the amount forgiven ($40,000) as taxable income. The Mortgage Forgiveness Debt Relief Act of 2007 “amends the Internal Revenue Code to exclude from gross income amounts attributable to a discharge, prior to January 1, 2010, of indebtedness incurred to acquire a principal residence. Limits to $2 million the excludable amount of such indebtedness. Reduces the basis of a principal residence by the amount of discharged indebtedness excluded from gross income. Disallows an exclusion for a discharge of indebtedness on account of services performed for the lender or any other factor not directly related to a decline in the value of the residence or to the financial condition of the taxpayer. Sets forth rules for determining the allowable amount of the exclusion for taxpayers with nonqualifying indebtedness and taxpayers who are insolvent.”

You can see that “principal residence” is in black bold typeface. This does not apply to second homes or investment properties.

As I discussed in a previous post, Top 3 Real Estate-Related Terms for 2008, short sales will become an everyday term in the local real estate market. The guy bagging your groceries will be compelled to ask (as he places the eggs and the bread in your shopping cart), “So, did you finally short sell your property?”. Don’t be embarrassed to answer that.

Tip him in pennies and foreign coins.

Come to think of it, you may be doing him a favor.

If you’re in a short sale situation and need help short selling your home, feel free to contact me. Short sales are complex transactions that require the professional assistance of someone who is experienced and qualified to negotiate with a lender’s Loss Mitigation Department. I can be reached at 305-491-7179 or SalgadoA@gmail.com.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com.

Neo Vertika 1/1.5 Split “B” – $260,000 *Short-Sale*

Perfect opportunity for the professional working in the Central Business District, the Brickell Financial District or that person yearning for an urban lifestyle in the heart of the city.

Unobstructed views of an evolving skyline and a meandering Miami River await in this bi-level split unit in the favorable east-facing 04 line of Neo Vertika. Tasteful finishes abound in this functional split B model with 20 ft ceilings and floor-to-ceiling windows that flood the living space with an abundance of natural sunlight.

Unit features oversized white porcelain tile throughout, remodeled full and half baths, white Nolte kitchen cabinets with black granite tops & stainless steel appliances and 2 balconies with pleasant city views.

Building amenities include a lap pool, fully equipped double-height fitness center, the magnificent “V” social room, racquetball court, free valet, and 24 hour security.

Neo Vertika is a 36-story mixed-use (pet-friendly) riverfront building located at 690 SW 1 CT in the Brickell/Downtown area of Miami. The building was developed by Neo Concepts, designed by Revuelta, Vega, and Leon, built by Coastal Construction, and is managed by Miami Management, Inc.

This is a short-sale. ALL offers will be considered subject to 3rd party approval.

The current owner purchased the unit from the developer for $320,000 in July 2006 and spent thousands more remodeling baths, installing floors and lighting, and providing other finishes to make the unit home.

Call me at 305.491.7179 for more information.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami and can be reached at 305.491.7179 or SalgadoA@gmail.com.