The Realized Team’s Picks

How To Start A Real Estate Investment Group (REIG)

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A Real Estate Investment Group (REIG) can be a powerful strategy to expand your portfolio while leveraging collective resources. An REIG means you pool your resources with other investors to target larger, real estate opportunities. Such a group allows you and other members to share their experiences and expertise.

Does Selling Land Affect Government Benefits?

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Selling land can be a significant financial decision for a real estate investor. That significance increases if the investor receives government benefits like Social Security retirement or disability payments or Supplemental Security Income (SSI).

Accredited Investors: What They Are and Necessary Qualifications

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Not everyone is an accredited investor. The Security and Exchange Commission (SEC) has specific rules for accredited investors. This article discusses the regulations involved and how to determine if you can call yourself an accredited investor.

Understanding Mineral Rights and Real Estate Implications

You could also own the mineral rights if you own land as an investment. Mineral rights can significantly impact property value, revenue potential, and ownership responsibilities. You might want to convey those mineral rights when you sell that property. Knowing whether conveyance is a good idea and how to do so can help you make informed decisions to protect your financial interests.

Using a Delaware Statutory Trust with a 1031 Exchange

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Using a 1031 exchange to exit your current investment real estate ownership can help defer capital gains taxes and depreciation recapture. Thanks to the IRS Revenue Ruling 2004-86, you can use fractional shares offered through a Delaware Statutory Trust (DST) as part of your exchange strategy.

Proving Your Next-of-Kin Status

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Estate planning and inheritance matters are crucial for those who own investment property and wish to pass it on to heirs. However, if no wills, estate specifics or directives are in place when that investor dies, it could fall on the heirs to prove that they were related to the decedent. This is where proving a next-of-kin status comes into play.

1031 Exchange Rules and Requirements To Consider

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1031 exchanges remain a popular investment route for those who want to defer capital gains taxes. Since you can indefinitely continue the process, you delay tax payments if you grow your initial capital. While this potential is appealing, the IRS has strict 1031 exchange rules and stipulations to help prevent abuse and ensure the tax-deferred status of investors and property owners.

Indirect Real Estate Investments: The Upsides and Downsides

If you’re considering buying real estate for investment purposes, you might not like ownership responsibilities, including tenant issues, maintenance, market fluctuations, and taxes.

The Five-Year Rule and 1031 Exchange Impacts

In most cases, you can’t use a 1031 exchange to defer capital gains taxes and depreciation recapture on primary residence sales. Properties eligible for a like-kind exchange must be used for investment or business purposes; primary residents don’t fall under this category.

Mineral Rights and 1031 Exchanges

Section 1031 of the Internal Revenue Code allows you to sell investment real estate and put the proceeds into like-kind property that is of equal or greater value. Adherence to the IRS’ rules can mean deferring capital gains taxes and depreciation recapture.