Colton’s Recent Posts
What Is a Step-Up Lease?
A step-up lease is a lease agreement that comes with increases embedded into it. Such provisions are sometimes referred to as escalator clauses. From the landlord's perspective, it makes sense, particularly when the agreement term is lengthy and rental rates are volatile. A step-up can accompany a gross or net lease and may trigger a specific dollar amount, percentage, or indexed increase. The tenant may also benefit if the addition of a step-up provision facilitates their ability to acquire a lease of the preferred length. Plus, it allows for longer-term planning.
What Does a Property Manager Do?
Investing in real estate is an effective method of building wealth and expanding your estate. Despite the many benefits derived from real estate investments, maintaining the property requires ample amounts of time and attention. If you invest in a rental property, you may be tasked with searching for the right tenants, collecting rent payments, and making sure that the building is properly maintained. If you don't have the time to manage your own property, you could hire a property manager to take care of these tasks for you.
What Is the 10% Rule in Real Estate Investing?
The 10% rule actually consists of three rules. They are meant to be a quick and minimal way for real estate investors to check that they’re making a good deal on a new investment. Having some simple-to-follow rules in your back pocket is always a good tactic to help eliminate potential bad deals early on and with little effort.
Where Do You Record Unrealized Gains and Losses?
Investments that have increased in value and are sold for profit generate realized gains, which are subject to capital gains taxes. Unrealized gains, on the other hand, are theoretical paper gains that won’t be taxed unless you sell the investment for a profit.
What Are the Related Party Rules for a 1031 Exchange?
Section 1031 of the Internal Revenue Code allows owners of real estate investment properties an important tax break: the ability to defer capital gains and other taxes when they exchange one investment property for a replacement asset.
How to Distribute Assets for a Better Return
Asset allocation, also called asset distribution, is a measure of how the breadth of your investment portfolio is spread among varying asset classes. The goal of asset allocation, also called portfolio diversification, is to maximize expected returns for a given level of risk.
Can a Beneficiary Be Removed from an Irrevocable Trust?
Many estate planners and individuals like trusts. Trusts can avoid probate issues when the trustor, or grantor, passes away. Trusts could also be considered a good tax strategy. And they can help ensure that assets are professionally managed, keeping wealth and value intact across generations, providing benefits to the beneficiaries.
What Is a Durable Power of Attorney?
Establishing a durable power of attorney can be an important aspect of estate and lifetime planning, especially for aging seniors without immediate family.
How Are Pensions Paid to Beneficiaries?
Financial security in retirement is a paramount concern for many Americans.
