Realized Author: Clay Schmidt

Senior Director, Investment Property Wealth Management®

Clay Schmidt

Clay’s Recent Posts

When Did REITs Start?

When Did REITs Start?

A REIT is a Real Estate Investment Trust. This fractional investment structure provides an opportunity for investors to participate in commercial real estate without being involved in the actual management or maintenance of the property. REITs own, operate, or finance properties intending to earn income for their investors. They work like mutual funds. The REIT Act was part of the Cigar Excise Tax Extension of 1960, passed by Congress and signed by President Eisenhower to broaden access to real estate investing. REITs were advanced further with the Tax Reform Act of 1986, which enabled REITs to operate and manage real estate in addition to owning or financing it.

Jun 25, 2022

What Is the Due Diligence Period in Real Estate?

What Is the Due Diligence Period in Real Estate?

Whether you’re buying real estate for investment or to live in, you’re putting money into that property. A lot of money. You don’t want to inherit a seller’s problems when you buy.

Jun 21, 2022

What is a Replacement Property?

What is a Replacement Property?

Insightful real estate investors use tax-deferred exchanges to help build wealth through the deferral of capital gains taxes. To take advantage of this tax law, investors must use the proceeds of property sales to purchase a replacement property.

Jun 17, 2022

What is Financial Risk Analysis?

What is Financial Risk Analysis?

The risk of losing money is an inherent aspect of investing. The process of assessing and measuring risk to determine an investment’s potential viability, as well as coming up with ways to potentially mitigate certain risk factors, is called a financial risk analysis or financial risk assessment. 

Jun 14, 2022

Can a Spouse Be Next of Kin?

Can a Spouse Be Next of Kin?

Without a will or estate plan, your assets will be inherited by your next of kin after your passing. Discover who qualifies as next of kin, what responsibilities the next of kin have, and if your spouse can be named next of kin.

Jun 9, 2022

What Is a Beneficiary IRA?

What Is a Beneficiary IRA?

A Beneficiary IRA is also referred to as an Inherited IRA. It is an account opened by a person who inherits an existing IRA or an employer-sponsored retirement plan account when the original owner dies. An IRA, or Individual Retirement Account, is a means of allocating pre-tax income to investments so that they can grow in a tax-deferred manner for retirement savings. The amount of income that an individual can contribute to a traditional IRA on a tax-deferred basis is limited.

Jun 4, 2022

Does Income From a Rental Property Count Against Social Security?

Does Income From a Rental Property Count Against Social Security?

Officially known as the federal Old-Age, Survivors and Disability Insurance program, Social Security is in place to help U.S. citizens replace income lost due to retirement, death of a spouse (or qualifying ex-spouse), or disability. According to the U.S. Social Security Administration (SSA), nine out of 10 people age 65 and older received Social Security benefits in 2020. Additionally, such benefits represent 30% of the income of the elderly.

May 30, 2022

What Is a Limited Partnership in Real Estate?

What Is a Limited Partnership in Real Estate?

When you want to invest in real estate but don't want to take on all of the risks, you should consider investing in a real estate limited partnership (RELP). This type of partnership involves gathering funds and assets from numerous investors before buying, developing, and selling properties. While there are some clear advantages of investing in a limited partnership, you should understand what this investment entails before putting your money towards it.

May 24, 2022

What Is Political Risk and How Can I Measure It?

What Is Political Risk and How Can I Measure It?

At Realized Holdings, we write about risk on a frequent basis. There are all kinds of risks that impact investments, such as business risk, credit risk, general market risk, and systematic risk.

May 19, 2022

How to Dissolve a Charitable Remainder Trust

How to Dissolve a Charitable Remainder Trust

Investors seeking to provide income for either their lifetime or a beneficiary, plus leave a legacy for a charitable organization, may consider establishing a trust as one means of doing so. There are various types of trusts, one of which is a charitable remainder trust, or CRT.

Apr 26, 2022

Another Way To Own Investment Properties

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