When you invest in real estate, you have to have a long term vision and patience. Unlike buying stock which can be readily purchased and sold, investing in real estate does not afford a quick sale. While it is true that in years past, people were able to flip properties and make fast money in real estate, for most real estate investors the idea is to buy and hold real estate. Some investors in real estate will benefit from federal income tax breaks and other investors in real estate can hold a piece of property and later sell it and buy other property while deferring the payment of any federal income taxes until the real estate is cashed out. Real estate is not a liquid investment and you may need to consider a long term strategy or option even if you are considering a shorter term investment in real estate. Read our articles on investing in real estate and learn about problem tenants and how to handle them. Learn about finding the right team to help you navigate the world of real estate investing. And, finally, learn about how to structure your investments, insure your real estate investments and minimize your federal income taxes.
Tenant Causes Rental Property Owner’s Credit Problems
A couple owned rental property and had asked the tenant to pay the Homeowner Association fees, and because of non-payment, the property owners have bad credit. Because the tenant did not pay the bill, a settlement was placed against the property owner that cause the owner a credit problem. Ilyce explains how this owner can rebuild her credit rating after the tenant did not pay Homeowner Association fees.
Renters Refuse Landlord’s Access
A rental property owner is ready to sell but the current tenants will not allow the landlord access to the home to show potential buyers. Many leases specifically allow a landlord access to a rental property to re-rent or sell it. Forcing tenants to give access to the rental property is a double-edged sword.
Siblings Inherit Commercial Property
Siblings have inherited property and now face several decisions on what to do with it. If everyone agrees to sell the inherited property, finding an agent who specializes in this type of property will help. If everyone agrees to keep the inherited property, someone will need to manage it, handle the finances and necessary repairs.
Flipping Real Estate In Down Market
What should you do when you were into flipping real estate and it's no longer profitable? Flipping real estate is less profitable when home market values go down. When the real estate market declines you should do your best to continue making mortgage payments so your credit doesn't get damaged.
Selling Investment Property Successfully
Selling investments property successfully is possible. In this column, Ilyce profiles Frank McKinney a successful high-end real estate developer. McKinney came from modest roots to successfully selling multi-million dollar investment properties and starting a foundation to provide food, housing, and medical support to the poor and homeless around the world.
Finding Profit In Real Estate
A homeowner is wondering if now is a good time to take his profit out of the townhome and buy a single family home. While property has appreciated dramatically over the years in some markets, we've seen the residential real estate market soften quite a bit in some areas. Now might be a good time to evaluate options and find out where profit can be found in real estate.
Residential Versus Commercial Mortgages
If you're thinking of buying a home as an investment property and then turning it into office space - should you look for a residential or commercial mortgage? With a commercial mortgage, you'll pay more in interest rates and points and fees. A residential mortgage may also offer a higher interest rate but it will be less than a commercial loan. One of the keys to find finding the right mortgage is talking to several lenders.
Limiting Taxes On Great Real Estate Investment
Making a large profit off of a home sale is a dream -- until it's time to think about capital gains. But a home seller may be able to keep up to $500,000 in profits without capital gains taxes if they meet certain requirements. The profit of a house is calculated by the sales prices minus costs and improvements.
Structuring Real Estate Investment Properties
A real estate investors have created an LLC to separate their personal and business properties. They are having trouble financing due to an increase debt to income ratio. If a large part of your income is from your real estate business or you have enough buildings to affect your income, many residential lenders will have difficulty giving you financing. You should try to find a commercial lender or a residential lender that has extensive experience with people that own many rental properties to help you out in your future deals.
New Tax Rules For Business Taxpayers
There are plenty of new tax rules that small business owners need to know about. Chet Burgess, an enrolled agent who owns Brookwood Tax Service in Atlanta, Georgia.gives some good small business tax advice from Chet Burgess, an enrolled agent who owns Brookwood Tax Service in Atlanta, Georgia. He says that calculating some of these deductions are very complicated, so business owners should pass it along to a tax professional.