Go Global The Changing Face of the International Real Estate Investor By Patricia Tan Overseas purchasers of Florida real estate are attracted to our shores by many of the same things that draw people from the northern U.S.A. and Canada. Our reputation as the Sunshine State, beautiful beaches, availability of outdoor activities and water sports and relatively low cost of living have continued to entice retirees and buyers of second homes to invest in our real estate market. We have however, in the course of our international marketing activities over the last year, seen some significant changes in the profile […]
1031 EXCHANGE By Jeff Riddell If there are taxes to be saved, a 1031 exchange should be considered as the exit strategy for any real estate that qualifies. Under the current rules the process is simple: Hire a qualified intermediary (QI) company and sign an exchange agreement, sell your relinquished property, escrow the proceeds with the QI company and reinvest in qualified replacement property within 180 days. Except for personal use properties, any real estate qualifies if it’s held for investment or productive use in a trade or business—including rental real estate of every kind. Tax deferred exchanges under Section […]
1031 Exchange Qualified Properties By Jeff Riddell Over the last several articles, we have covered real estate investing for various age groups, from youngest to oldest. One thing is common to all of the age groups: There will come a time when every real estate investor decides to dispose of his investment. If you don’t like to pay capital gains tax (or recapture of depreciation, if applicable), we should touch on the subject of 1031 exchange. The sleeping giant has in fact started to awaken. After my company, U.S. 1031 Exchange Services, Inc., facilitated over 500 exchanges in 2005, business […]
Seniors And Real Estate Investing By Jeff Riddell Last article, we discussed real estate investing for those folks in the 50-65 age range. Next is the 65-80 group—with due respect because I am one of them, I’ll call them seniors. If you are in this age bracket, it goes without saying that you should have started your real estate investing career earlier. At this age you will not be able to use the power of leverage and compounding to create wealth from real estate to the same extent as those who started young, but you should still have some real […]
Real Estate Investing For Baby Boomers By Jeff Riddell Last article, we discussed middle age real estate investing. Next is the 50-65 bracket—I’ll call them the baby boomers. In my opinion, this is the time to become more conservative in your real estate investing; and more diversified in your real estate holdings regardless of whether you are a beginner or long term investor. If you started your real estate investing career earlier while you were in the 20-35 bracket—or even in the 35-50 bracket—by now you have probably accumulated a pretty nice portfolio of real estate holdings such as houses, […]
Middle Age Real Estate Investing By Jeff Riddell Last article we discussed real estate investing by young folks. But what if you are older and your time horizon shorter? Let’s discuss the 35 to 50 age bracket next—I’ll call it middle age. Although many people are well into real estate investing by the time they are in this age bracket, let’s assume you are just getting started. If you’re 40, you likely have at least 25 years before retirement; probably more because I believe the days of retiring by 65 are numbered. The entry strategy for this age bracket depends […]
Real Estate Investing For All Ages By Jeff Riddell In the next few articles, we’ll talk about the approach of different age groups to real estate investing. Let’s start with the 20-35 age group; let’s call them beginning wealth builders or BWBs. Unless they won the lottery or inherited a lot of money, BWBs are usually capital challenged. Most people in this age bracket are finding it difficult enough to make a down payment on a home, let alone enough to make an investment real estate down payment. But for those who have the discipline to swing it, this is […]
Entity Ownership Of Real Estate By Jeff Riddell Last article we talked about how individuals can own real estate. Now let’s turn our attention to ownership in an entity. Let’s look at a few. We’ll start with corporations. You probably know that corporations—other than some federal corporations like banks—are formed under state law. Although corporations are great for businesses, corporate ownership of real estate is generally not favored regardless of whether the corporation has elected to be taxed as an “S Corporation” or a “C Corporation.” Double taxation—both corporate and shareholder level—can be one problem (at least in a C […]
Alternative Ways To Own Real Estate By Jeff Riddell If you’re ready to start your real estate investment career—or have already started and may be acquiring more properties—we need to talk about how to hold title. In other words, who should be the “grantee” in the deed you receive. The first choice, of course, is yourself, or you and your spouse if you are married. Most people take title to their properties in their own name when they are beginning their real estate investment careers because it is simple and cheap. You sign the purchase contract in your own name […]
You can start investing in real estate at any age. If you are young and want to start the conventional way by purchasing a single family house or small rental property, build a team first—relationships are everything in real estate. If you are older and just getting started, you can take the approach I suggest in this article to adding real estate to your investment portfolio.
The benefits of owning investment and rental real estate are pretty obvious: wealth building and cash flow. The time to buy is when prices are low. Now let’s expand on that with some tax talk.
Jumping into real estate investing without a plan can be painful. Biting off more than you can chew is one problem; panic instead of patience is another problem.
Real Estate Investing By Jeff Riddell Andrew Carnegie said: More money has been made in real estate than in all industrial investments combined The big boys know all about it and have made fortunes for generations through real estate. Even the railroad barons of the 19th century knew that wealth was in real estate. When they built the transcontinental railroad in the 1860s, the government gave them 640 acres of land for each mile of track they built. They believed they could sell the land for millions as business was drawn to the railroad, and they were right. Real estate […]
JOHN’S STORY (Part 2 of 2) Excerpt from 21st Century Real Estate Investing By Jeff Riddell IT’S NO SECRET Andrew Carnegie said “More money has been made in real estate than in all industrial investments combined.” The big boys know all about it and have made fortunes for generations through real estate. Even the railroad barons of the 19th century knew that wealth was in real estate. When they built the transcontinental railroad in the 1860s, the government gave them 640 acres of land for each mile of track they built. They believed they could sell the land for millions […]
John saved about $4,000 from his soldier pay during World War II. A year after finding a job and saving some more money, he was able to buy a duplex in 1948 for $15,000 with a $10,000 mortgage. There was never much cash flow from the duplex because John used the money to fix it up. After five years, he sold the duplex for $22,000. John had $13,000 left after paying off the mortgage, which had reduced to $9,000 with the help of amortization and some extra money John occasionally added to his monthly payment.
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Tuesday, March 30, 2010
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