Real-Estate Investments Made Simple

Real-Estate Investments Made Simple

Real estate investing mainly has its aim on making profit and this is done by doing differing methods such as owning, selling, renting, and managing real estate. One investor has circumstances that are differing from the additional investors so the methods can vary.

Real estate is defined as an equity of acreage with the buildings and additional assets that come with it. Real estate investment is considered to be a stable ink=”windo because the property that is involved with it inevitably appreciates in value economically. A real estate investment would not make a stable investment if the property is not well maintained though.

One of the challenges that real estate investing poses is that assets are not easily liquidated. This means that real estate investors need to develop in themselves a more discerning and perceptive attitude in deciding about their investments. However, a good investment guarantees a monthly income that is stable. This is why it is important to know and learn about differing effective strategies in real estate financing.

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Success in real estate investing is not guaranteed with enough capital but with the intelligence that real estate investors possess in considering and weighing things down when it comes to investments. Knowledge of where to find available investments that will make a good real estate investment is one of the competences a real estate should have. A real estate investor who has various options of where to invest would clearly make him have an advantage over the additional investors.

There are various risks and profits that need to be considered in real estate financing so it is also important for a real estate investor to be able to weigh the diverse factors involved and the aftermaths of the investment that is to be made.

Different risks come with real estate financing. A real estate investor needs to be sure about several things first before deciding to invest. The own:inheritf the real estate needs to be verified with a credible title to avoid fake investments. A realty should have also been maintained regularly and have been fully inspected considering the physical structure and environment contamination before deciding to purchase it. The strategic location of the equity also needs to be considered with future uses in mind. An investor does need to be careful in considering if the cash flow that the property can produce will be able to sustain its necessary maintenance and expenses.

A real estate investor can decide to do it alone or in partnership with someone who has more experience in real estate financing. A novice in real estate investing would do better if investment is done with the help of an experienced real estate investor. Additional means may also be used to learn about real estate investing such as relevant seminars or reading materials. Real estate investing is not easy but a real estate investment done properly makes a stable source of profit.

I hope you have gained some benefit from our William Tingle Real EstateWilliam Tingle Real Estate document. You can also read more Free illusion mage right here.

1031 Exchange Tax Deferred Benefits Are Hard to Ignore

1031 Exchange Tax Deferred Benefits Are Hard to Ignore

Since the residential real estate market in the Bay Area has softened, you consider selling your rental property to buy this shopping strip. You estimate that you would have to pay about 0K in federal and state income taxes on 0K of capital gain (M less 0K purchase price and selling fees, plus K in depreciation recapture). You just hate having to pay 0K to the government – money that may go toward your down payment on the shopping strip. There is a better way – a way to defer the income tax.

First, your beneficiaries that receive your tax-deferred accounts will be subject to making at least RMDs for their remaining life expectancy at your death. Those RMDs or any more money withdrawn each year will be taxed at your beneficiary’s highest tax bracket rate since he’ll probably have a working income too. So, if you use much or all of your tax-deferred funds before you die, then you’re leaving less tax liability for him since your remaining taxable accounts (with their tax basis and lower taxation rates) hold less tax liability to him.

Those savvy about 1031s can start thinking creatively. For instance, one way to ensure that you see your college-attending child from time-time is to purchase a property in the college town and hold it as a rental, and do a 1031 exchange after graduation.

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Getting tired of collecting rent and watching your residential investment property deteriorate from uncaring tenants? Are you afraid to sell after making such huge gains in the market? 1031 exchange will allow you to exchange a residential property for a business, or office rentals with a better paying clientele.

This decision to upgrade into higher quality properties with greater cash flow can occur faster now that taxes are a lower priority transaction decision. In some markets the real estate values can get ahead of the available cash flow available from the property. In these situations it may make sense to lock in your gain and look to re-invest in another property where you can achieve higher cash flow returns.

Let’s take the 401k. You are putting money into the plan before you pay taxes. When you start accessing the cash, that’s when you pay the taxes that you had postponed. So, with these investments, you are not saving taxes, you are just postponing the inevitable. When was the last time procrastination was considered a good thing?

Many early retirees find themselves saddled with a 10% penalty or stuck paying a hefty tax when they opt to take all their money out as a lump sum at retirement. If you worry about the safety of your money and take advantage of every protection plan at your disposal, then you may feel uneasy that the FDIC doesn’t cover tax deferred annuities, leaving you to pay for separate protection.

So how did this all come about – what is the history of the tax-deferred exchange?
The tax-deferred exchange actually has a rather long and complicated history dating back to 1921. The first income tax code was adopted in 1918 as part of The Revenue Act of 1918, but it did not provide for any type of tax-deferred exchange. The first tax-deferred exchange was authorized as part of The Revenue Act of 1921 when the United States Congress created Section 2021 of the Internal Revenue Code. Between 1921 and 1970, exchanges were always simultaneous swaps between two parties, by the way.

It is best to understand the concept of annuity tax deferral with a few examples. A fixed annuity sounds very similar to a certificate of deposit (CD). A certificate of deposit also has a fixed rate of return, a specified contract length, and a penalty for early withdrawal. The main difference is the tax deferred treatment of the annuity. A CD would need to be held inside a retirement account, such as an IRA, to match the tax treatment of a fixed annuity.

Withdrawing From a SEP IRA or a Tax Deferred Annuity. Visit <a rel=”nofollow” onclick=”javascript:_gaq.push([‘_trackPageview’, ‘/outgoing/article_exit_link/3979813’]);” href=”http://www.manta.com/c/mmprw7v/tax-deferred-services-inc”>TDS Group</a>. Tax Deferred Investments Discover the Misconceptions. Visit <a rel=”nofollow” onclick=”javascript:_gaq.push([‘_trackPageview’, ‘/outgoing/article_exit_link/3979813’]);” href=”http://www.yelp.com/biz/tax-deferred-services-ira-center-san-jose”>TDS Group</a>.

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Factors To Consider When Dealing With Real Estate Investments

Factors To Consider When Dealing With Real Estate Investments

are considered by many people as a great way of earning money with little or no money down. This is because of the many financing options available for these properties as well as investing options wherein an investor is not required to own a property at all. Despite the many advantages of , there are some things that investors should remember when trying to purchase these immovable assets. These are the following:

Type of Investment – An investor must consider the types of real estate investments that he or she wants to work on. One can choose between investing in real estate investment groups, REITs and trading properties. Another way that an investor uses in determining the type of real estate investment is by making a decision to focus on either commercial or residential properties.
Capital or No Capital? – In the business of money definitely plays a vital role for an investor. However, a person does not need a lot of money on hand in order to start investing in real estate. One can always go to banks and hard money lenders in order to get financial back-up. A real estate investor can also choose options such as wholesaling wherein a person only buys a contract to sell or lease a property in order to make money.
Location of the Business – Another thing that a real estate investor must definitely consider is the place where he or she is planning to invest on. For example, if an individual wants to invest on commercial property, that person must focus their energies on properties located in urban areas. Meanwhile, an investor who wants to buy and sell residential real estate will see more potential in suburban and rural communities.
Long and Short Term Considerations – Lastly, an investor should be able to know how long he or she plans to invest in real estate. If an investor wants to earn a huge payout in a short time, then a option such as wholesaling is perfect for him or her. Meanwhile, someone who plans on having long term real estate investments can consider options such as purchasing and renting properties that serves as a steady source of income.

The items listed above are just some of the considerations that people investing in real estate must keep in mind. For people who want know more information regarding real estate investments, please visit .

REI Wired is the ultimate real estate investor network on the planet. The sole purpose of this site is to arm you with the cutting-edge real estate investing tactics being used by the hottest investors in the industry…so you can dominate your competition and close more deals… FAST.

A Must Know When Buying Real Estate Investment

A Must Know When Buying Real Estate Investment

 

There are four main factors when it comes to making your real estate investment in the selection of your real estate purchase, which you need to think about:

 

1. The Type of Real Estate you are searching for

2. Your present return needs

3. Your availability of capital

4. How it fits in with your total investment plan

 

These considerations form the guidelines which fully determine what to buy, how to buy, and why to buy real estate. Each of these will be considered separately.

 

 

There is lots of money in real estate. But there is also a big risk if not played correctly. When I first started to take an interest in real estate investment, I didn’t realize there were so many options. This write-up will run you through the most common types of investments.

 

Commercial real estate this is actually a pretty good place to start because it tends to be relatively secure when compared with some of the other forms of real estate investing.The rather large downside to this, however, is that this investment vehicle requires a massive investment up front and as a result is something that most real estate investors don’t consider until they’ve built up a strong portfolio that they can leverage to provide the needed funding.

 

Residential Rentals is not as high-powered as being a commercial real estate mogul, but it is certainly a solid model for establishing a comfortable retirement plan. This is actually where most people get started in the real estate game because it’s not hugely difficult to buy an investment property and then positively gear it so that rentals pay off the mortgage and property management expenses.Being a landlord (even if you farm out the property management to a real estate agency or a professional Property Manager) is a long-term commitment with potentially very nice payoffs. It is also a good model for the high-risk averse investor to pursue.

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Flipping – this basically means is buying a property and turning around and selling it on – with or without renovating it, e.g. this kind of real estate investment requires an extremely detailed understanding of the property market in that geographical area and the ability to make quick, hair-raising decisions involving enormous sums of money.

Buying off the plan or Pre-Construction is even riskier than flipping, but has become insanely popular in the last 5 to 10 years. This is when the money raised by selling properties before they’ve even been built. It is what funds the actual construction of the property usually a block of residential apartments. This mode of investment is, of course, wide open to scam artists setting up fake property development companies or even just unscrupulous property developers disappearing with all that money and never even starting construction!

 

On the other hand, if it is legitimate, the real trick is in identifying an area that has a housing shortage or is set to boom in the next few years (possibly because of new infrastructure, for example). In these cases, the profits to be made are considerable. So, like any form of investing, the risk is usually in proportion to the potential rewards and the time-frame in which they are delivered.

 

Lease to Own is probably a better option for most non big-time investors. The whole model of leasing a property that you’ll eventually be able to call your own is very attractive to many people who don’t qualify for a mortgage (young families, for example).You can charge a little more than what you would charge to rent the property, with the extra going to pay off the principle and the agreement that they purchase the property for an agreed sum after a period of time.

 

For you (the owner), it also reduces maintenance costs. It’s more likely your tenants will take better care of the property because they’ll probably think of it as “theirs” Which means that if they decide to move somewhere else and not actually go through with the purchase of the property, you will have far less drama and fewer problems getting the place ready for new tenants.

 

There you go! I Hope that my article helps you decide when it comes to Real Estate Property Investment.

 

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How To Market Yourself As A Real Estate Expert: With 1031 Exchanges

How To Market Yourself As A Real Estate Expert: With 1031 Exchanges

1031 Exchange and Tax Advantages

A 1031 Exchange or Like Kind Exchange is defined by Section 1031 of the Internal
Revenue Code. This code specifies that if an asset (usually some form of real estate such asland or a building) is sold and the proceeds of the sale are then reinvested in a like kind of an asset. As such, no gain or loss is recognized, allowing the deferment of capital gains taxes. In order to qualify certain rules must be followed. Broadly, these rules are as follows:

1.   Both the relinquished property and the replacement property must be held either for investment or for productive use in a trade or business. A personal residence cannot be exchanged.

The asset must be of like kind. Real property must be exchanged for real property. Personal property must be exchanged for personal property.
The proceeds of the sale must be invested in a like kind asset within 180 days of the sale (property must be identified within 45 days).

This is an effective way to defer paying taxes that would otherwise have been due on the first sale. For example, an investor bought a commercial property, a strip mall, for 0,000. After 6 years the investor sells the property for 0,000. This would result in a gain of ,000 and the investor would have to pay capital gains tax on this amount.

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However if the investor invests the 0,000 in another commercial real estate (of like kind – does not necessarily have to be a strip mall) then the investor does not have to pay any taxes now, i.e., the investor defers the taxes until a later date.

A 1031 Exchange is similar to a traditional IRA or 401K Retirement Plan. When someone sells assets in tax-deferred retirement plans, the capital gains that would otherwise be taxable are deferred until they begin to cash out of the retirement plan. The same principal holds true for tax-deferred exchanges or real estate investments. As long as the money continues to be re-invested in other real estate, the capital gains taxes can be deferred. Unlike the afore-mentioned retirement accounts, rental income on real estate investments will continue to be taxed as net income is realized.

Once an investor has decided to pursue a 1031 Exchange, the process is fairly straightforward and will be carefully facilitated by a Qualified Intermediary. It is suggested that you contact a Qualified Intermediary as soon as the exchange decision has been made.

Here is a typical timeline involving an exchange, presented in the traditional order of occurrence.

1.   Investor decides to sell investment property and do an exchange. Investor contacts a Qualified Intermediary.

2.   Investment property is put on the market.

3.   Offer to purchase investment property is accepted.

4.   Escrow for the sale is opened and preliminary title report produced.

5.   The Qualified Intermediary sends required exchange documents to escrow closer for signing at property closing.

6.   Escrow closes.

7.   Within the first 45 days after the close of escrow on the sale of the relinquished property, investor identifies replacement property as required by law.

Within 180 days after the close of escrow on the sale of the relinquished property, investor closes on replacement property that was identified by them. The exchange is completed.

Frequently the most difficult component of a 1031 Exchange is identifying replacement property within the first 45 days following the sale of the relinquished property. The IRS is very strict in not allowing extensions. The only way to extend your 45 days is on the front end, and that is done by carefully thinking about your replacement property alternatives before you close on the sale of your relinquished property.

For this and other articles by Brad Hess please visit http://www.mymark.com/blog. Brad Hess is CEO and Founder of MyMark. I made my mark with MyMark, providers of an integrated personal profile, blog, and home base for professionally branding you. This original post can be found at http://www.mymark.com/blog/bradhess/2011/01/18/how-to-market-yourself-as-a-real-estate-expert-with-1031-exchanges/

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The Importance of Determining the Best Real Estate Investment Firm

The Importance of Determining the Best Real Estate Investment Firm

More people are turning to real estate investment firms to help them navigate through the rough real estate ocean, more so in these troubled economic times. Investing in real estate can be very complex, especially for beginners. The aim of both real estate investment firms and individuals is to identify the right opportunities and invest accordingly. If you are new to real estate or investing, you may want to consider consulting a firm for advice.

 

Apart from investing, managing real estate is also important. Real estate management, however, is an altogether different matter and involves different processes from construction and designing, renovation and repairs, buying and selling, and appraisal and estimation of costs. With many processes at hand, it becomes imperative that one possesses extensive knowledge of the marketplace. For this very reason, the wise choice is to turn to a reliable real estate investment firm.

 

In real estate investment, there are several things to look for – knowledge, expertise, negotiation skills, energy, and the appropriate resources – to successfully chart its waters. Unfortunately, not any one person has all these traits. Therefore, you will need the help of a team and a support network to assist you with the handling of all your tasks. Again, this is where selecting the right real estate investment firm becomes important.

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Reputable and competent real estate investment firms will always aim to establish and maintain lasting relationships with their clients, brokers, investors, tenants, financial institutions, and even among industry colleagues. Good real estate investment firms will likewise be able to provide you with services such as construction and property management as well as real estate counseling.

 

How then will you be able to choose among the many real estate investment firms available? It would be wise to set your own parameters depending on your needs and interview each candidate. You also need to evaluate their credentials, qualifications, and look for legal documents such as certificates or licenses. It is also recommended that you contact previous clients they have attended to in the past or are currently attending to.

 

Professional real estate investment firms will offer you expert advice, design courses of actions for you, and provide you suggestions as to how to go about your real estate needs. They have expert knowledge on past and present trends in the real estate market and are, therefore, in the best position to provide you advice on how to get the most out of your investment.

If you have questions, please visit us at www.NetLeaseCapital.com. for complete details and answers.