Real Estate Investing

Section 1031 of the Internal Revenue Code contains arguably one of the most powerful provisions of the tax code for real estate investors… the 1031 tax exchange. Many highly successful real estate investors have used this tax code provision in combination with aggressive pyramiding and upgrading strategies to amass huge investment property portfolios. Here’s how it works: OVERVIEW A Section 1031 Exchange allows you to exchange “like-kind” investment properties without triggering the payment of capital gains tax. As your property assets appreciate in value you have the ability to upgrade into larger properties with greater cash flow. Section 1031 also gives you the flexibility ... Read Full Story

The easiest method to begin a 1031 Exchange transaction is to contact a good Exchange Company. The information concerning the exchanger, time and place of the closings, and a copy of the contract to sell the relinquished property are the preliminary papers to start the process. From this information, the company makes exchange documents and forwards them to the attorney or customer. The lowest fee charged on a standard deferred exchange is $600. A 1031 Exchange , like any real estate transaction, involves balancing competing pressures in speed and quality. Therefore, companies in this line recognize pressures and design their service to satisfy both. ... Read Full Story

           What if you could be a cash buyer without having any cash? If you have equity in your home or other investment properties it may be possible to use it. You could refinance your current mortgage or add a second mortgage. A very good way may be to use a home equity line of credit or HELOC. A HELOC has several advantages over refinancing or taking out a second mortgage. A HELOC frequently costs very little, if anything, in the form of closing costs. If you take the HELOC on an investment property, you may have to pay for an appraisal or ... Read Full Story

The term investment property likely brings to mind real estate portfolio.  Remember always that this is only one type of real estate investment.  Real estate portfolios are a solid way to plan for the future.  However they are not the only way investment properties can create income for you.  Actually real estate investing does not always necessitate long term patience.  Some forms of real estate investing yield results much faster.    In order to succeed in real estate investing you need an open, creative mind.  Knowing as  many of your real estate investing options as possible will expand your opportunities.  Here are three ways ... Read Full Story

Real estate investing is extremely intriguing to many people.  After all, you can literally make hundreds of thousands of dollars on a single deal.  Of course, the converse is also true.  You could also lose that much without proper care. You do need some basic math in real estate investing .  Addition and subtraction is not all there is to it.  (They will be part of it though!)  You need to have a basic understanding of what different values mean.    It is not just a few investors that have lost their shirts because they misread numbers.  Know the issues at stake to avoid ... Read Full Story