The Realized Team’s Picks
Drop & Swap: When It's Time to Go Your Separate Ways
Fred and Bill Franklin were owners of a student housing property in the southeast. They operated the asset under an LLC set-up with a third member, a national REIT, which provided property management and operations services.
Is Interest Paid on Investment Property Tax Deductible?
There can be many benefits to investing in property. Two such potential advantages are cash flow and property appreciation. Another potential advantage when it comes to real estate ownership involves interest expense. In other words, if you used any kind of mortgage to buy or refinance your property, you could be looking at a tax deduction.
What is Credit Migration Risk?
Credit migration risk is downgrade risk in the credit rating for a company or (bond) issuer. Investors can use credit migration to determine if a company’s credit is getting better or worse. In this article, we’ll explain what credit migration risk is and how to incorporate it into investment analysis.
Can a Condo Be a Good Investment Property?
As a real estate investor, you have numerous options for where to direct your investment spending. You may focus on residential real estate, including individual properties or multi-family dwellings (which are considered commercial assets), or you may prefer other sectors like hospitality, retail, or office. If you are evaluating condominiums as an investment, you may find that the property type fits into your strategy.
What is a Property Investment Fund?
Real estate is an investment with broad appeal and multiple options for participation. Investors can choose to buy properties directly and manage them personally or acquire a portfolio of assets and delegate the day-to-day management to someone else. Alternatively, you can choose to invest indirectly through asset-backed securities or other vehicles.
Real Estate Ownership Structures: Delaware Statutory Trust and Series LLC
There’s good reason why more than 1 million businesses and nearly two-thirds of all Fortune 500 companies1 are incorporated in the State of Delaware -- the state is internationally recognized for its advanced statutory laws and judicial decisions regarding the governance of Delaware business entities.
What Is Funding Liquidity Risk?
Liquidity risk is associated with illiquid assets; meaning, those that are difficult to turn into cash quickly without generating a loss (in some cases). Funding liquidity risk is a specific type of liquidity risk. It is related to the funds or money coming in that a business has to cover its obligations. In this article, we’ll explore the differences between general liquidity risk and funding liquidity risk.
Should I Create an LLC For My Rental Property?
If you’re a landlord renting out a single-family home, an apartment building, or space for a business, you may have considered creating an LLC. Here are some considerations to go over if you’re thinking of creating an LLC for your rental property.
How Do You Value Property With Significant Entitlement Risk?
Entitlement risks can present special problems when acquiring and developing land. It’s difficult to know what curveballs city council members and other local government agencies may throw at developers. However, they aren’t the only ones involved when it comes to entitlement risk.
Part 3: Using Tax Planning In an Effort to Increase Returns – Real Estate Exchanges
At Realized, we believe that tax planning in real estate is about seeking opportunities that can help ensure that the amount of money you make remains money you keep. In our final post in this series, we’ll cover an additional tactic to consider when seeking ways to increase your after-tax cash flow: leverage tax-deferred real estate exchanges.
