The Realized Team’s Picks
New Bills Seek To Amend Opportunity Zone Census Tracts
The Qualified Opportunity Zone (QOZ) program has attracted a lot of congressional attention in recent months, including several legislative proposals. How should current or potential future investors in QOZs view these proposals? In this article, we will discuss some of the recent developments and the possible ramifications.
How Does Location Impact My Real Estate Investment?
Location, location, location. We’ve all heard it before and certainly the location of an investment property is a huge driver of the investment’s performance. While it may be easy to spot a “good” location, there are also some locational risks that are often overlooked. From the market the property sits in, to its location within a retail center, location is fundamental to determining why tenants, occupants, and customers are driven to a particular commercial or residential property. As you review and compare different real estate investment opportunities, here are some important factors to consider.
The Tax Implications Of Exchanging, Selling, Or Inheriting Investment Property
Owning investment property means much more than maximizing cash flow through rent growth and occupancy. Owning investment property means managing the taxes that come with it, whether that be in the form of taxable income or capital gains. In this article, we’ll discuss three key differences between exchanging, selling, or inheriting investment property, and the tax implications that come with each scenario.
Frequently Asked Questions About Capital Gains
Most Americans will admit that instant gratification is an Achilles’ heel, especially in their personal financial realm. Digital devices increase the ease in which we execute transactions to buy. The Federal Reserve offers proof: credit card debt has entered the stratosphere: it has reached $1.04 trillion and is still on an upward trajectory.
Rights and Responsibilities of Joint Ownership
Owning property with multiple people can lead to complex scenarios. Before taking part in a property with multiple owners, it’s best to know what you are getting into, what your rights are, and options that are available to you when it’s time to sell the property.
When Is The Right Time To Sell My 1031 Exchange Property?
The Internal Revenue Code Section 1031 is very clear about the process investors must undergo to defer recognition of capital gains (and, therefore, to defer paying taxes on those capital gains). Specifically, you have 45 days from the date you relinquish your asset to find a “like-kind” replacement. And, you have 180 days from the date you relinquish Real Estate A to close on that replacement Real Estate B. These timelines are chiseled in IRS stone, with no exceptions.
What Are The Problems With Real Estate Investment Trusts?
Investors have a deep emotional attachment to their investments; abdicating control is not something that comes easily. Real Estate Investment Trusts (REITs) are alluring to investors due to the high dividends, which can boost the value of their portfolio. However, there are a few factors that should be considered prior to loading up on REITs. Read them below.
The Hidden Risks Of Opportunity Zones
Qualified Opportunity Zone (QOZ) investments are among the highest risk opportunities available for real estate investment. It is essentially ground-up development in unproven locations. There are a few apparent major risks, such as development completion and lack of liquidity, but investors should also consider the more hidden risks that these opportunities may contain before making their investments.
Disadvantages Of Qualified Opportunity Zones
On realized1031.com, we’ve discussed the benefits of the QOZ program extensively. Some of the primary highlights are: Deferral and reduction of original gain. Dismissal of gain in the fund if held for 10 or more years. Opportunity to grow tax-optimized wealth. Fund managers like to flaunt these benefits. But listening to only the benefits of an investment opportunity doesn’t tell the full story. In this article, we’re going to cover three areas that present real risks to QOZ investors.
What You Should Know About Real Estate Crowdfunding
Real estate crowdfunding has made real estate investing available to a broader range of potential investors. But this ease of access also means it is easy to make a bad investment. Before you begin turning over your hard-earned money to a real estate crowdfunding platform, here are a few things you should know about investing in real estate crowdfunding deals.
