This month, we’ll talk about what drives value in Net Leased Properties. Many of us already know that investment real estate is valued based on the income it generates. This value is further influenced by the quality of that income.
One of the big benefits we receive from our investment real estate (including partial interest properties) is tax savings from the depreciation benefit. If we own the land our building is on, we can only depreciate our improvements’ value since land is not depreciable. With a ground lease, however, we don’t own the land. Therefore, our entire purchase price can be depreciated – for potentially substantially more tax savings!
Hate the loan application process, but need a new loan to fulfill your 1031 Exchange requirements? Partial Interest properties come with turn-key debt that can make your replacement property purchasing process a lot simpler.
Since 2001, my investors have purchased over 545 partial interest properties – including DSTs. Once an investor purchases the property; what then? Does it sell sometime in the future? When? This month, my article walks us all through the plans and the process.
Common financial advise tells retirees to wait as long as possible to start taking social security benefits in order to maximize their benefits. This ignores the fact that you’ll bee giving up years of monthly income in order to do so.
Some investors are waiting for interest rates to drop before they buy property. This month, I will suggest that they reconsider that strategy. After all, lower interest rates usually lead to higher prices – and refinancing at a lower rate for a lower monthly payment is possible in the future.
A new multifamily asset class has emerged called “Build to Rent.” A Build to Rent apartment community is constructed by homebuilders as single family homes or townhouses, but then leased out as apartments and sold to investors in one package. This could offer investors an interesting “additional exit option” that we will discuss this month.
I believe that higher population growth leads to a higher number of potential renters for our apartments, and a higher number of potential customers for our tenants.
Using The Service Station Deduction To Shelter Capital Gains And Accumulated Depreciation Taxes From Investment Real Estate Sold Without A 1031 Exchange
Most of my clients are buying income producing real estate and, at the same time, buying what the IRS calls more depreciable basis that can better defer (potentially forever) taxes on their real estate income.
Sometimes meeting leverage requirements in a 1031 Exchange can be challenging. This month, I’ll talk about how we can, through a “combo exchange” mix higher and lower-leveraged properties together to meet IRS requirements and achieve our clients’ goals.
