More and more people are buying real estate, as an investment. For 20+ plus years real estate has been part of our financial portfolio. Some houses have been rentals and some have been flips. Real estate is a staple for investing. Real estate can be a great enhancement to any financial portfolio and a great tax shelter as read in a recent Inman News article.
The Real Estate professionals at The Gus Anthony Team are well qualified to help clients maneuver the process of investing . The Gus Anthony team knows about investing and while we can give the best advise from experience, we advocate that investors consult an accountant regarding tax liabilities and shelters.
1. Borrow cash against the asset
Real estate is the easiest asset to borrow against. The investment property is a way to secure cash to invest in the property for repairs and updates. Work done to investment properties can also be tax deductible. Some investors like to think that the “renter” is paying for the loan(s) on the property. Investor loans can be obtained for the initial purchase of an investment property, loan programs and terms vary. Contact a lender for rates and terms.
2. Shelter capitol gains using like-kind exchanges
To shelter real estate investment cash flow from taxes, buy like-kind properties through tax-free exchanges, also referred to as a Section 1031 exchange. The property must be a like kind and must be purchased at the same or higher price of the “sold” property. An investor can buy a second property without paying tax on the sale of the first property or at least shelter the gain (profit) by rolling it into the 1031 exchange.
3. The first time investor
The first time investor starts with the first home purchase. The steps: Purchase the home and get a 1st time buyer loan (when possible), live in the home at least 6 months, identify another home to purchase and financing, rent out first home and move into the new home. The rented home may not produce income right away, but there should be tax benefits plus, someone else is paying for the investment and over time that first home will appreciate and rent will go up.
4. How We Can Help
The Real Estate professionals at The Gus Anthony Team are well qualified to help clients maneuver the process of investing. We can help turn a home into an investment while moving up and into another home. We are also very well versed on ROI and work with investors at all levels. The Gus Anthony team knows about investing and while we can give the best advise from experience, we advocate that investors consult an accountant regarding tax liabilities and shelters. We have found many great properties for many investors and we have solutions and programs specific to this matter. Contact us and we can work together to grow a financial portfolio that includes Real Estate
With proper planning, rental real estate can create tax reductions while allowing the renter to pay for the house. A compliment to any financial portfolio.