What Are the Major Risks in Real Estate Investing?
Every investment has risk. Earning a return above the risk-free rate means taking risk. The analysis of risk is a big topic. But there are some real estate risks that we can identify as being much higher than other risks. This isn’t to play down lesser risks. But at least knowing where major investment risks lie can provide a quick risk mitigation checklist for potential investments.
What Questions Should I Ask Myself Before I Retire?
A comprehensive retirement plan requires some extensive pre-planning to ensure you’ve built enough financial assets to live comfortably as you age.
What Is the 50/30/20 Budget Rule?
Creating a budget – and sticking to it – are fundamental elements of managing your personal finances.
Who Owns the Building in a Ground Lease?
The idea behind a ground lease is that a landowner owns vacant land, and leases that land to a tenant (which can also be a developer). The tenant then builds a structure on the site, while paying monthly rent to the landowner to occupy the acreage.
What Is the Rule of 72 in Finance?
There are many different formulas investors can use to determine how their money will grow over time.
How Do Opportunity Zones Work?
Qualified Opportunity Zones were created as part of the Tax Cuts and Jobs Act (TCJA) in 2017. The zones are designated census tracts that are identified as low-income and in need of greater economic investments. The Treasury Department has recognized over 9,000 after being nominated by each state and most U.S. territories. Qualified Opportunity Zones (QOZs) offer several tax advantages for investors. Investments in opportunity zones offer a permanent capital gains tax exclusion for those willing to hold the investment long enough. Here are the three primary opportunity zone tax benefits provided:
1031 Exchange Timeline and Identification Requirements
Executing a successful 1031 exchange requires taxpayers to follow strict process rules or risk that the IRS won't allow the transaction. The result of a failed exchange can be an unexpected and unwelcome capital gains tax bill, so investors should proceed carefully.
What Is a Zero Net Lease?
A Zero net lease is a type of commercial property lease. It falls within the category of N leases, where the N stands for net. These include single net lease (N), double net lease (NN), and triple (NNN) net leases. The zero net lease is a type of NNN lease.
What Is REIT Dividend Risk?
Many investors turn to real estate investment trusts (REITs) for portfolio diversification, dividend income, and potential long-term appreciation of their initial investment capital.
How Can I Join a Real Estate Investment Group (REIG)?
Some real estate investors like to work independently, buying and selling properties with just the capital they have. Others prefer to craft a more in-depth portfolio, perhaps with fractional ownership of assets that they buy through a Delaware Statutory Trust or a REIT. Every investment method has its advantages and potential disadvantages. One less common approach is through a real estate investment group (REIG).
