The Realized Team’s Picks
What Are the Pros and Cons of a Single Tenant Net Lease?
Real estate investors seeking investment properties that offer the potential for fewer managerial duties and lower owner costs often turn to single tenant net leased assets. Single tenant properties are 100 percent occupied by a solo tenant that is responsible for paying all maintenance costs, as well as property taxes and insurance, which can result in fewer ongoing financial responsibilities for the property owner.
Understanding Different Types of Delaware Statutory Trusts (DSTs): Growth DSTs
A Delaware Statutory Trust (DST) is a 1031 exchange-eligible investment structure that gives investors partial ownership of commercial real estate properties that are managed by a professional real estate Sponsor. The DST market has been growing steadily over the years, from $3.4 billion in 2019 to $7.4 billion in 2021, according to Mountain Dell Consulting. As the market for these kinds of investments grows, product diversification is likely to follow suit.
How to Create a Financial Plan
A financial plan might lead to thoughts of legacy strategies, estate goals, passing on generational wealth, and retirement approaches, all under the direction of a professional financial planner or advisor. These can be included in a financial plan. But the actual plan itself is a basic statement of your current financial situation, long-term monetary goals, and the path that connects here and there.
Does a Rental Property Fall Under Section 1245 or Section 1250?
Section 1245 and Section 1250 refer to two of the three most common types of business assets. It's essential to identify the type because, in some cases, that will affect the taxable rate applied to any gain.
What Are the 1031 Exchange Rules in Florida?
Investors who prefer to defer their payment of capital gains taxes when selling an investment property are sometimes interested in the details of executing a 1031 Exchange. A properly transacted 1031 can allow the taxpayer to sell an asset and reinvest the proceeds in other investment property while deferring the tax on any gains. This tool can contribute to leveraging success and is repeatable, compounding the value.
Can a CPA Give Financial Planning Advice?
The CPA (Certified Public Accountant) designation is a well-known credential in the financial field. Candidates for it must first earn a bachelor’s degree in a relevant discipline such as business, finance, or accounting. Next, they must work for at least two years in public accounting and complete 150 hours of related education. Finally, they must pass the certification examination administered by the American Institute of Certified Public Accountants (AICPA), a professional organization with over 428,000 members in 130 countries.
What Is Risk Allocation?
Building an investment portfolio involves crafting a strategy for deciding where to invest funds. Often, investors choose asset types and then select specific targets within those categories. For example, if you prefer a traditional 60/40 allocation, you would direct approximately sixty percent of your investment funds to equities and the remaining forty percent to bonds or other conservative instruments. Within those two asset categories, the investor can choose from large and small-cap stocks, domestic or international companies, industry, company age, dividend-paying or reinvesting, and more. In the bond portion, there are plenty of options as well.
Is a Certified Financial Planner a Fiduciary?
Implementing a wealth-building strategy usually requires the guidance of a finance professional. Financial advisors and planners can help you manage your wealth; however, neither designation implies a fiduciary duty on your behalf.
How Does a 1031 Exchange Work in Conjunction with Depreciation on an Investment Property?
Selling an investment property for a gain can result in a large tax bill. Some of that bill may include paying back depreciation. This is called depreciation recapture. The recaptured depreciation is taxed at a different tax rate. Does a 1031 defer depreciation recapture taxes or does depreciation continue as if it is the same property?
What Is the 20/10 Rule?
Investment and finance can be intimidating. That's why rules and formulas often encourage us to feel confident that we are on the right track. Unfortunately, sometimes it seems like there are competing rules for every topic, and as an investor, you can cherry-pick the one you want. The same can be said for personal finance rules, although following some common sense guidelines is a wise approach to financial discipline and health.
