Give To The IRS What is Due To The IRS – Paying Taxes for Your Rental Income Property

Letting go of 25 to 35 percent of your income to tax is often a painful but compulsory thing to do. You would think of the things you could have bought with the said amount: renovate your multi-door apartment, go on a family vacation, finance another investment, or whatever it is that you want to spend on. However, the tough reality remains that we have to pay the IRS their share but there are many ways to minimize that tax burden. Check back soon for info on how to minimize your rental income tax burden.  So to deal with reality, let us abide by the law and file our income taxes so that our friends from the IRS will not haunt… Read the rest

Don’t Be Alien to Tax Lien Investing

If you think you can make money in real estate investing only by buying, selling, fixing and renting houses, think again. Take the time to explore the vast field of real estate investing and you will discover other earning opportunities that involve minimal risk and require little capital since you do not actually pay for a piece of the real estate. One of which is through tax lien investing.

What is Tax Lien Investing?

The local government, the state or the county collects various forms of taxes so that it can provide services and benefits to its citizens. One kind of tax it collects is property tax, which is typically paid to the county where the property is located. In the event that the property owner misses a tax payment, the government… Read the rest

In the past, real property has been a symbol of wealth and power. The moneyed elite own vast lands and were the landlords. Today, buying investment property has stood the test of time as a vehicle for accumulating wealth. In recent years, the idea of investing in real estate with little to no money-down has become popular especially since it means that anyone can own a property even without much funds. Many people also look into buying investment property as another investment vehicle to prepare for retirement. With the profitability of real estate investing, many people were said to be able to achieve early retirement.

Buying Investment Property for Appreciation

“Don’t wait to buy real estate. Buy real estate and wait.” This is real estate guru Robert Allen’s way of saying buy, hold and wait for the value of… Read the rest

Investing in real estate can be truly financially rewarding when you know what you are doing. When you buy investment property, you should already have in mind what many real estate investors call the exit strategy that you are going to implement for that particular property. This means that when you get involved in a deal, it must be clear in your mind how you are going to make money out of it. When you buy investment property, you can consider five ways of earning.

Buy Investment Property for Appreciation

Some people who are unacquainted with the real estate business think that the only way to make money when you buy investment property is by buying and holding the property until its value appreciates. You make money through capital gains. Although the value of real estate has always been… Read the rest

REI Doors Open To All

The relative ease of entry is luring more and more people to turn their hands to real estate investing, or REI, not to mention that information about running the lucrative housing business is all over the Internet; you just have to discern which tips and advice to follow. It requires little, some would even say zero, capitalization that is why it is welcoming to beginners. Less capitalization also means lesser risk for losses for the newbies. However, the most enticing lure why people get into REI is the substantial profits that could be raked in in a relatively short time if you get things right.

ROI in REI

One of the most common measures of the quality of an investment is the Return on Investment or ROI. It… Read the rest

These days, getting funding for your handyman specials from hard money lenders are getting harder as their requirements become more rigid. Traditionally, getting funding from these private lenders was almost as swift as their speed of driving by the property involved in the deal for inspection.  At the present real estate climate, however, many of these lenders may check on the tax returns, bank statements and current pay slips of borrowers. For this reason, some REI’s may be seeking for other financial fountainheads to fund their deals. Usually in their search for alternative source, they give Federal Housing Administration’s 203K loans the brush-off.

Giving 203K Loans A Second Thought

Ever since the Department of Housing and Urban Development set down the moratorium on investor involvement in the 203k Rehabilitation Program, ethical REI’s avoid this loan program lest they be… Read the rest

With the tremendous earning potential in real estate investing and the velocity of money with which one can rake in earnings doing this business, financial freedom and early retirement could just be on the horizon for many successful real estate investors. If you are one of them, then perhaps, the forecast that Social Security may no longer be able to pay full benefits in the years to come as it is about to run a negative cash flow by the year 2017 is none of your concern. It may not even matter to you if you cannot yet avail of tax-free distributions from your IRA. However, a savvy real estate investor like you can make use of your expertise to accelerate the growth of your IRA. This is through self directed real estate IRA’s.

Self directed IRA’s are a… Read the rest

Why Try Private Money Lending?

To Extinguish an Impending Burnout. While you push your way in the real estate investing arena, do you sometimes wish you could slow down and slack off from the frenzy of scouring for handyman specials, hammering away rehabs and hawking your wares? Were there times you wish you can just call for a time-out, watch the game from the sidelines and hand out water to the thirsty players? If you are feeling this way, why not consider crossing over to the other side and try your hand at private money lending.

To Satiate Curiosity and Spur Growth. Let’s say you have considerable amount of capitalization as a successful real estate investor who has been around the block for some time.You have stabilized your finances after several flips… Read the rest

Foreclosures Drowns Banks With Unwanted Assets

The turbulent waves of foreclosures continue to wash out distressed home owners who are unable to keep their finances afloat. As these combers ebb, their backwash brings back to shore hordes of homeless families for the government to look after and piles of foreclosed properties for the banks and developers to deal with. Unlike a seashell collector who may not mind the extra weight of the pieces she gathers from the shore, these institutions do not enjoy collecting these foreclosed properties as loads of them cause an imbalance to their financial statements.

Bulk REO Packages – Banks’ Life Jacket, Nourishment to RE Investors’ Pocket

That is why they have come up with bulk REO packages or groups of “real estate owned” by the bank that are greatly discounted for bulk purchases so that banks… Read the rest

Do not become a landlord or fix and flip real estate investor without the appropriate reserve funds.

Without the appropriate reserve funds you will most likely be adding to our economy’s foreclosure backlog and just become another statistic. Take this advice seriously, it has been learned the hard way by many investors that have come before you. Refer to Murphy’s Law.

The Perfect Rehab?

How many rehab projects have you heard of that have had no hiccups, no delays, and no surprises?  Ask this to a group of real estate investors at your local REI club and you’ll quickly find out that the perfect rehab or long term rental doesn’t exist.  From surprise foundation problems to the guaranteed buyer/tenant that all of sudden cannot close on the deal; surprises are a part of this business.

Property Rehab Gone Wild

Even… Read the rest