Real Estate Risk Profiles
The relationship of risk and return is a core concept to any investment decision. Nearly every investment (apart from keeping money under your mattress) is designed to produce an expected return - typically through income, capital appreciation , or some combination.
Four Ways Real Estate May Build Wealth
You’ve probably seen the late-night infomercials, reality TV shows and get-rich-quick books on real estate investing. Most focus on buying properties for peanuts, making a few minor cosmetic upgrades and flipping the property for big bucks. Unfortunately, for the average investor, it seldom works this way.
What Is A Net Lease?
If you’ve ever considered investing in commercial real estate, you’ve likely heard the term “net lease” or “triple-net” mentioned. Unfortunately, these terms can have different interpretations depending on the context and market. They are also amongst the most commonly misused terms in real estate, which can be quite confusing for potential investors.
Pros And Cons Of Various Property Types
Although most commercial real estate properties have the ability to produce income, the strengths and risks in their potential cash flows differ by type of property. Traditional commercial property types are generally considered to consist of multifamily, retail, office and industrial, however, several other property types are becoming more accepted by investors. Let’s take a quick look at different investment property types along with their relative pros and cons. It should be noted that this post is a generalization and that all properties are subject to asset-specific traits.
Pros and Cons of a 1031 Exchange
A 1031 exchange is a tax-deferred exchange of one investment property for another. The IRS permits investors to sell an investment property and defer capital gains, provided they reinvest the proceeds into a replacement property. If you are currently investing in real estate, this probably seems intriguing. In determining if a 1031 exchange is right for you, consider the following pros and cons:
Is Your 1031 Money Safe? Know Your Qualified Intermediary Risks.
The name “qualified intermediary” (QI) — or 1031 exchange accommodator — is somewhat of a misnomer. When I hear something is “qualified,” I tend to think that it has been limited, or is less-than-positive . But when it comes to a QI, most of the time this is not the case..
Tax Benefit Of Real Estate Investing - Examples
When properly structured, real estate can be an extremely tax efficient investment. Benefits are produced by the following three components: Depreciation Interest Deduction 1031 Exchange
Is a Reverse 1031 Exchange Right For You?
You find a property that you really want to purchase, but you know you have to move quickly to take advantage of the investment opportunity. The problem is you haven’t sold your existing property yet. A Reverse 1031 Exchange might be the answer and could save you thousands of dollars in capital gains taxes.
7 Things You Need to Know About 1031 Exchanges
Like-kind 1031 exchanges are widely used by real estate investors to create and preserve wealth. In simple terms, §1031 of the US tax code allows you to defer paying capital gains taxes, and what’s called "recapture" on the profits from selling a property, provided they are “exchanged” (i.e., reinvested) into another like-kind property.
Benefits Of 1031 DST And TIC 1031 Property Investments
Real estate investors contemplating a 1031 exchange must make many decisions. Perhaps the most important, but often ignored, is the replacement property they need to purchase in order to defer their capital gains taxes. Investors have just 45 days from the date they sell their property to find, evaluate and notify the IRS of the potential replacement properties. This is a daunting challenge for even the most experienced investors, particularly in markets where a 1031 investor has competition from other buyers.
