Home, Sweet... Rental?
Investing in single-family homes, then turning around and renting those assets to other people, can be a good strategy for your portfolio. These properties can be easier to buy than their multifamily counterparts, and have become increasingly popular among potential tenants. Green Street projects that of the 3.9 million projected new renters that will come to market by 2020, nearly 40% will opt for single-family residences.1
Digging Beneath The QOF Clutter
At Realized Holdings, we spend a lot of time reminding clients that due diligence is essential when it comes to real estate investments. Due diligence is also important when it comes to investing in a Qualified Opportunity Fund (QOF) as part of the overall Qualified Opportunity Zone program (QOZ). This tax-deferral program allows you to invest capital gains into QOZs, with the added benefit of spurring lower-income community development.
Retail-Based Clinics As Real Estate Investments
Once upon a time, if you were ill or required a physical check-up, you likely paid a visit to your primary care physician. That doctor might have had his or her office on a hospital campus, or in a nearby medical office building; in fact, that hospital could have owned that building.
The Flexibility Of A Drop And Swap
Partnerships can be an ideal legal structure for investors interested in acquiring, owning and operating real estate. A partnership consisting of two or more people can help boost capital availability and operational experience, while providing liability protection and tax pass-through treatment on your income tax return.
Capital Gains Strategies: Taking Charge Of Your Gains
Most investors are likely aware that geopolitical turmoil exerts its toll on the markets and, in turn, on their investment portfolio. A massive crisis is not even necessary to impact someone’s portfolio value. Market volatility is something every stock and bond investor has to learn to endure.
Qualified Opportunity Funds Vs. Opportunity Funds: Are They Interchangeable?
Googling the term “opportunity fund” leads to approximately 194 million results, and the definition of still is not explicitly clear when delving through these results. Adding to the confusion are the websites, such as Enterprise Community Partners (ECP), pointing out that some opportunity funds are based on “a new provision in the Tax Cuts and Jobs Act”, and are “a new class of investment vehicles that aim to responsibly drive much-needed capital in distressed communities throughout the nation.”1 In other words, ECP is talking about the newly passed Qualified Opportunity Fund (QOF) program.
Real Estate Return Objectives & Investment Constraints, Part 2
As we discussed in a previous blog, understanding of personal return objectives and investment constraints is often overlooked in real estate investing, although the same principles should apply as with any financial investment. In that blog, we focused on return objectives, what they are, and how they might impact your decision-making when it comes to investments. Also discussed was risk tolerance, which, when paired with return objectives, are used to determine the best investment “fit” for an investor.
The Evolution of the Retail Asset Class, Part 2
As we mentioned in Part 1 of this series, e-commerce is changing the way we do business. From the way we communicate to the way we transfer products and services, these changes have a dramatic impact on the real estate industry, especially affecting the productivity and value of retail property types. Although one may believe that this particular sector of real estate is stable, looking to increasing values since the Great Recession, a recent shift in returns has shown evidence of a distressed market, that has been significantly impacted by how the sector has been conducting business, and how consumers are reacting.
Real Estate Investing Return Objectives & Investment Constraints, Part I
If you’ve ever met with a financial advisor to discuss your investment portfolio, you’ve likely heard the terms “return objectives and investment constraints”. This seems fairly straightforward. You certainly want to know what kind of returns you might receive from certain types of investments. And, it’s a good idea to understand what might be standing in the way of those returns.
Six Strategies For A Smooth 1031 Exchange
In a previous blog, we noted that 1031 Exchange rules can be challenging. That article focused on three Internal Revenue Service (IRS) rules when it came to identifying the replacement property or properties for a successful exchange.
