Funding
Explore everything from strategies to get the most bang for your buck to foundational knowledge that will get you ahead of the competition.
Then find a reputable lender here.
Back To: All Topics
Funding
Explore everything from strategies to get the most bang for your buck to foundational knowledge that will get you ahead of the competition.
Then find a reputable lender here.
Back To: All Topics
Section 1031’s Journey from Obscurity
The journey of the tax code pursuant to IRC section 1031 is striking when viewed against this moment in United States real estate history. Never before have U.S. real estate investors acquired and stood with so much appreciation in real estate in such a short period of time. Never before ...
Anyone who’s been in real estate long has heard of the various percent rules floating about; the 70 percent rule, the 50 percent rule and the dreaded 2 percent rule. These rules are, of course, just rules of thumb to be helpful guides when evaluating properties. But while I believe ...
Credit, Using it Creatively & Responsibly
I once used a promotional “zero-percent-interest-and-zero-points" cash advance feature on my $25,000-limit credit card to buy a $25,000 property. Then, I refinanced it with a local community bank at 100 percent loan-to-cost (75 percent loan-to-appraised- value) within six months, right before the initial interest free period expired. That credit card ...
Roth IRAs: The Best Legacy-Building Tool
If you leave nothing else for your loved ones, be sure that they inherit a Roth IRA from you. Even if the account has a tiny balance, leaving behind a Roth IRA provides a legacy benefit of overwhelming value: a lifetime of tax-free investment profits. In short, an inherited IRA ...
Project Management for Better Productivity
Real estate investors often find themselves overwhelmed, which is one of the main sources of disappointment in this popular industry for new investors. Ask any active investor at a local real estate investors’ association (REIA) meeting what surprised them when they started investing full-time, and most will mention that they ...
1031 Exchange & the Role of the Agent
While most real estate transactions conducted in the United States have a real estate agent involved, not many of them are clear about their role in the 1031 Exchange. What should the role of the agent be with the principals in the transaction and what duties, if any, can the ...
3 Effects Tax Cuts Could Have on Economy & Housing
When President Trump signed the Tax Cuts and Jobs Act on December 22, 2017, he accomplished a number of things with a single swipe of a pen. Those things included: Cutting the corporate tax rate from 35 to 21 percent Cutting the top individual tax rate to 37 percent Reducing ...
FHA May Refuse to Insure Loans on Energy Efficient Properties
The Federal Housing Administration (FHA) recently released new restrictions on the types of mortgages it will insure and eliminated certain energy-efficient homes in the process. In early December 2017, the FHA reversed a policy from the previous presidential administration that allowed the FHA to insure mortgages on homes carrying liens ...
Tax Cuts & Jobs Act May Help Marketplace Investors
The commercial real estate industry clearly benefits from the Tax Cuts and Jobs Act recently passed by Congress and signed into law by President Trump. Even changes to the individual mortgage interest deduction and other limits on homeowner deductions may actually end up aiding the market for value-add multifamily projects ...
Proposed Tax Reform Could Impact REIs
The proposed tax reform hit the internet last week. Though there are likely to be many changes and revisions, in its current form, there are many impacts to those who invest in real estate. Let’s explore these. Changes in Deductions The proposed tax reform has changed, reduced, and eliminated many ...
Bitcoin Appears in More Real Estate Closings
Cryptocurrency has been slow to take hold in real estate, making an appearance mainly when a seller hopes to garner media attention for a listing rather than as a serious form of payment. However, the controversial currency bitcoin, which is now accepted in many retail locations and restaurants in the ...
PITCH: How to Present Your Real Estate Deal to Private Money Lenders
| 108 pages | 28,909 words | 2.5 hour read | Excerpt In the word of real estate, there is more than one way to obtain the money you need to complete a transaction. Traditional lending may work for some investors, but for others, going to a bank is simply ...
Pricey Seattle Market Also “Most Affordable”
When you think of Seattle, Washington, you probably do not immediately think “affordability” in terms of its housing. After all, a metro area with a median home price of $610,000 is not necessarily accessible to the average home buyer. However, when that average buyer is, more than likely, an IT ...
How Tax Reform Could Affect U.S. Homeownership
Will President Trump’s tax reform proposal put a major dent in the housing market? Some experts say by doubling the standard deduction, the mortgage interest deduction will lose relevance because taxpayers won’t bother to itemize, and that will, in turn, discourage people from buying homes. But are tax savings the ...
3 Ways to Prepare for the Next Real Estate Correction
It is common knowledge that the housing market is cyclical, but while most investors agree this is the case, they do not have firm plans in place to help them adjust their investment strategies when downturns occur. Certainly, some investors thrive in down markets, snapping up great deals and setting ...
Mortgage rates are slowly and steadily rising. These current market conditions make buying a home particularly attractive in today’s market. Homeownership has always been viewed as one of the central pillars of the American dream and, because your home is often your largest asset, it can be an incredible means ...
The 401(k) Mistake that Can Easily Cost You $30,000
As an individual retirement account (IRA) custodian, I often encounter investors who have been using their IRA or 401(k) accounts to buy and sell real estate in ways that are costing them serious capital. These sticky situations do not always lead to the so-called “implosion” of a retirement portfolio that ...
3 Disasters Where Self-Directed Investors Made a Huge Difference
Lately, the news has been full of natural disasters and recovery efforts. Everyone in the country wants to help with the recovery from Hurricanes Harvey and Irma. In fact, one self-titled “IRA Expert” even implied in a very public promotional campaign that real estate investors using their self-directed retirement accounts ...
The Truth About Tax-Free Profits in Real Estate IRAs
If you love the idea of huge real estate investing returns but dread the tax bills that come with financial success, then you share a common bond with just about every other investor in the country. However, if you realize that there are actually ways to create “tax-free profits” in ...
Can Your Street Name Cost You 44 Percent of Your Sales Price?
It seems impossible, but selling a house on a street with the wrong name could cost you 44 percent of your sales price. According to a recently-released tidbit from Zillow, sellers who list properties on a street with a certain negative name could end up making 44 percent less than ...
Private Lending and Personal Guarantees
Physical property is one of the soundest forms of loan collateral in existence, so it’s no wonder that lending entities of all types, from megabanks like Wells Fargo to private, individual lenders, like real estate so much. As our sitting president has famously said for decades, “Real estate is always ...
2 Effective Ways to Get the Best Contractors on Your Team
Are you ready to hit the ground running with flips, but have no bench of contractors to do the work? If so, then you are facing one of the most common issues that stall out new investors, but don’t worry. The lack of reliable labor obviously presents a problem of ...
Trendspotting vs. Falling for the Hype
As a contractor who works exclusively with real estate investors, I often hear some “dangerous language” from my clients. I’m not talking about obscenities! I’m talking about investors who are so eager to spot the “next big thing” that they convince themselves that certain areas are about to take off ...
Insurance Myths Debunked, a Think Realty Series
Let’s debunk one of the trickiest myths in property insurance: Self-insurance is too risky. This is one of the trickier myths we discuss because everything depends on what line of coverage we are talking about. Let’s debunk the main myth first. When I am speaking to different groups across the ...
Owning rental properties is always an adventure if you choose to manage those properties personally. While no two days will ever be quite the same, there are some basic processes that you can implement to make the landlording experience a little smoother on a day-to-day basis. Here are three insider ...
