Why Rental Properties

This article quickly explains the differentiating qualities of one unique investment property in comparison to the largest Real Estate firms or stocks. You can leverage your money, your time, your network, and with minimal corporate middle-managers, it always more returns to end investor. Tried and true, tested in stable and unstable markets and you have the ability to cherry pick the demographics that have wind at the sailspretty straightforward. Buy for cash flow, the property will appreciate through enhancing property and the demographic shifts in the area. There is a mortgage pay down in addition to various tax benefits like depreciation, accelerated depreciation of certain big ticket items and cost-segregation analyses that are very hard to do as a solo investor.

Tax Benefits of Real Estate

CPA insights into the tax code and common tax benefits which can allow for the property to pay out distributions and at the same time show a tax loss, mostly due to depreciation of the property. 1031 Exchanges allow for pushing off taxes if the property is identified within a certain period of time. The ability to take a refinance allows for a “tax-free” income without taxes until the property is sold.

1031 Exchange Tax Rules

CPA again defines what a 1031 exchange is from one property to the next by deferring taxes, similar to a 401k. Common benefits of 1031 exchanges with rules and guidelines and a process to identify the next property and an intermediary.

What is an Accredited Investor

Accredited investors definition with income and net worth limit for 506c. Though, 506b funds do not have that limitation with less that 35 investors that do not have to be accredited. Ideal for real estate with common $2-5M capital raises.

You do not want to be a landlord

What are the major hassles to becoming a landlord? Everyone has interesting stories – but simply put – for passive income to truly be passive, hours spent on real estate has to remain minimal. There are $5k/hour jobs and there are $20/hr jobs. If you have a net worth $1M+, it is likely you are making stronger incomes per hour somewhere else, and these tasks should be farmed out to someone else. The book “Who, Not How” is an excellent resource that dives deeper into this topic as well.

Getting Wealthy

“The poor are most definitely not poor because the rich people are rich. If the poor people do what the rich do, they would no longer be poor” – Warren Buffett. This article simply defines the power of decision making and not coasting through life, taking action consistently, practice continual progression and improvement. Raising the bar on your personal life and professional life as well as not letting your new, higher level of wealth impede on your growth. Lastly, no one gets further in life by doing the same as the herd. If you are different, you work harder, you network more, you learn continually and you take leaps to get to the next level.

Understanding 506b / 506c / Private Placements

A Private placement owner explains how he attained 5,000 units and what it is like to be a successful Limited Partner in Private Placements. What to look for, what fee structures exist, typical splits to General Partners and Limited Partners, and meeting expectations on what a syndication should provide.