Tax Reform And Real Estate: An Overview
Part 2 in the Realized Series "2017 Tax Reform Impact on Real Estate" It’s no secret that President Donald Trump and the Republican-controlled Congress have made tax reform a huge item on their agendas. Though the rhetoric is plentiful, what has been released so far is a one-page reform proposal from the Trump Administration, and the House of Representative’s tax reform proposal, A Better Way Forward on Tax Reform which was issued in 2016.
Limiting Your Liability: Mortgage Financing Risks
A recurring theme in our writings is managing risk in real estate investing. While most investors understand that debt can be a powerful tool to enhance returns, it is a “double-edge sword” that may increase the risk profile of an investment. However, a lesser understood risk of mortgage financing is its potential to increase losses beyond the amount of equity invested.
What is a Credit Rating?
A key concept in real estate investing, particularly with single-tenant, net-leased properties, is the credit quality of the underlying tenant. A credit rating is an estimate of an entity’s ability to honor its financial commitments.
8 Ways to Mitigate Risk in Real Estate Investing
Part 3 in the Realized Series "Risk Management and Real Estate" Part 1: Risk In Real Estate Investments Part 2: How to Reduce Risk in Real Estate Investing “Quick buck artists come and go with every bull market, but the steady players make it through the bear markets.” -Lou Mannheim to Bud Fox, Wall Street (1987 film)
How to Reduce Risk in Real Estate Investing
Part 2 in the Realized Series Risk in Real Estate Investments Part 1: Risk In Real Estate Investments Part 3: 8 Ways to Mitigate Risk in Real Estate Investing
Risk In Real Estate Investments
Part 1 in the Realized Series "Risk Management and Real Estate" Part 2: How to Reduce Risk in Real Estate Investing Part 3: 8 Ways to Mitigate Risk in Real Estate Investing
Real Estate As An Inflation Hedge
Inflation, from an economic standpoint, can be defined as a prolonged increase in prices of goods and services. If inflation rises faster than your income or value of your assets, in effect, you are losing ground on your purchasing power or real (inflation adjusted) net worth. It’s no wonder that savvy investors are concerned with inflation and turn to real estate as an important piece of their investment portfolio.
Losing Money in a 1031 TIC?
Recently, I’ve had several conversations with real estate investors who own Tenants-In-Common (TIC) replacement properties that are going to be sold in the near future. In each case, sometime during the past decade they used part of their 1031 exchange funds to purchase TIC properties that are now being sold because mortgage is coming due. Unfortunately, several of these investors will receive substantially less in sale proceeds than they originally invested due to poor property performance. Needless to say, these folks aren’t real happy.
Tax Reform May Eliminate 1031 Exchanges & Mortgage Interest Deduction
Part 1 in the Realized Series "2017 Tax Reform Impact on Real Estate"
Benefits of Real Estate Investing
According to a Morgan Stanley Wealth Management Investor Pulse (December 2013) survey of 300 millionaires, 77 percent indicated they owned real estate as an alternative investment – more than double the next closest choice of alternative investments.¹ With so many investment options these days, real estate remains the investment of choice for several reasons:
