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.
Can You Buy a Multifamily Home with a VA Loan?
A multifamily residential property contains separate dwelling units for more than one household. The property has shared walls, floors, or ceilings but individual entries. It can include duplexes, triplexes, quads, apartments, condos, townhouses, and other attached housing. Multifamily housing can also include mixed-use developments, where the lower floors have retail, office, or commercial tenants and the higher levels contain housing units.
Is Sale Of Rental Property Subject To Net Investment Income Tax?
On January 1, 2013, 26 U.S. Code § 1411 - “Imposition of Tax” went into effect, to help fund the Affordable Care Act. What this meant, in plain English (and continues to mean), is that the net investment income tax, or NIIT, is assessed on certain net investment income of individuals, estates, and trusts that demonstrate income higher than the statutory threshold amounts.
Can You Do a HARP Loan on an Investment Property?
What is HARP? The U.S. Federal Housing Agency created the Home Affordable Refinance Program (known as HARP) in 2009 to help homeowners who owed more than the value of their homes. The main conditions for eligibility were that the mortgage had to have been purchased by either Fannie Mae or Freddie Mac (the two government-sponsored mortgage entities) before May 31, 2009. The borrower had to be in an "underwater" position. Also, the borrowers were required to be current on the payments, and the property had to be maintained in good condition. If the homeowner was delinquent or had walked away from the home, they did not qualify. This program terminated as of the end of 2018.
