What is the Opposite of Cap Rate Compression?

Cap rate is a shortened reference to capitalization rate, which is an illustrative metric used to evaluate the attractiveness of an investment. The cap rate generally identifies how long it will take the investor to recover their investment. You can determine the cap rate using this formula:

Sep 5, 2023

Can Repairs Be Included in a 1031 Exchange?

With a 1031 exchange, you can “swap” real estate held for investment or business purposes into other property of equal or greater value (as long as you adhere to the IRS’ in-stone requirements). Meanwhile, the proceeds from your relinquished property or properties can cover costs in addition to that of the replacement property. These might include broker or agent fees, title search costs, and lawyer or CPA fees.

Sep 4, 2023

Who Receives a 1099-MISC Form?

The 1099-MISC form is an important tax document used to report various types of income that are not covered by W-2 forms. Independent contractors, recipients of rents and royalties, award and prize winners, and individuals with miscellaneous income may receive this form. It is vital for both recipients and issuers of the 1099-MISC form to understand the reporting requirements and deadlines to ensure compliance with IRS regulations.

Sep 3, 2023

Can a Power of Attorney Withdraw Money from a Bank Account?

A power of attorney (POA) is a designation of authority that is assigned by the principal or grantor to an agent or designee. POA can refer both to the legal form and the designated person, sometimes causing confusion. A further area of confusion is that there are numerous varieties of POA.

Sep 2, 2023

What Happens When You Sell a 1031 Exchange Property?

Let’s take a hypothetical situation.

Sep 1, 2023

What are the Advantages and Limitations of the Markowitz Model?

The Markowitz Model was developed in 1952 and has remained a cornerstone of portfolio construction. Some swear by the theory, while others see weaknesses. Let's examine these differences to better understand the practical uses of the Markowitz Model.

Aug 31, 2023

When Does a Springing Power of Attorney Become Active?

A power of attorney is a legal concept, but it does not have to involve lawyers in most cases. There are numerous variations of power of attorney (POA), but the basic premise is to appoint someone else to act on your behalf. Typically, individuals may employ a POA for convenience or necessity.

Aug 31, 2023

Executing a 1031 Exchange With Multiple Owners: What You Need to Know

Many ownership structures exist when it comes to owning real estate. There are single ownership, partnerships, and LLC arrangements. Then, there are multiple-ownership set-ups, like joint ventures or tenants-in-common (TIC).

Aug 30, 2023

What is an Example of an Alternative Trading System?

If you decide to invest in a publicly owned organization, you could turn to one of several public markets and buy a certain number of shares.

Aug 30, 2023

What to Look for When Reviewing 1031 Exchange Property Listings

Let’s say you’re an investor with tangible real estate holdings. Perhaps you want to upgrade those holdings by acquiring higher-value (or higher cash-flow) real estate property. Or you might be tired of hands-on ownership and are considering exchanging that income-producing property into a Delaware Statutory Trust (DST).

Aug 29, 2023

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