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.
Many of my clients own multiple properties, and it’s not uncommon for them to sell at about the same time. When this happens, we will combine their 1031 Exchange Accounts. There can be many benefits to doing so, as this article examines.
Net Leased Properties are valued according to the amount of income they provide, the length of their leases, and the financial strength of their tenants. We can increase value in such properties by improving any of these three metrics. This month, we’ll discuss how to enhance tenant credit.
Real Estate investments can potentially generate more work, worry, trouble or pain for their owners. What is the “Pain Factor” of your real estate investments, and can we lessen that by exchanging into different properties?
A big part of investment success comes from analyzing your performance. What works, what doesn’t, and what can you do better? To do this, you’ll need to produce a Cash Flow Statement for each of your properties. It’s not hard to do – this month’s article will walk you through it.
Single Family Residential rentals create poor cash flow when compared with NNN leased or multifamily investments. The reason for this is actually a benefit to Single Family owners – their values are comparatively higher than other investment properties. This month, we’ll explore the potential benefits you can enjoy when moving from single family to NNN or multifamily investments.
The Opportunity Zone is a powerful tool that Congress created that allows investors to defer non-1031-eligible Capital Gains through real estate investing. Congress has not extended the legislation that created this tool, so the current round of Opportunity Zone funds on the market may be the last once they sell out in 1st quarter, 2024. This could be your Last Call if this is something that can help you.
