Why Invest? Understanding your ROI & Cap Rate

Investing in real estate is the only true way to grow lasting wealth. We have all heard this before but how? And where do you start? RE investments can offer the investor more diversity and less volatility. Another benefit is that while an investor can earn rental income on a property the property will also gain value through appreciation. Depending on your experience level and the diversity of your portfolio you need to be able to answer in order to be better serve you with your investment purchase. Aute, nostrud nisi mollit Ipsum proident ad velit veniam. eu laboris sed, labore occaecat. Lorem ipsum dolor Commodo do exercitation sit

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1031 Exchange

Explained:

What is a 1031

Exchange?

A 1031 exchange is a tax deferral program. It is the process of swapping or “exchanging” one business property for another “like kind” property. This then allows the investor to deffer their capitol gains taxes. Keeping more cash flow in the investors pockets. There are however, some rules.

Items to remember

about the 1031

exchange.

When utilizing the 1031 exchange the investor will need to be mindful of a few components. The first is that the business properties must be “like kind” properties. Meaning the IRS must view them as the same business types. Another, component is there is a time frame that this process needs to complete in. An investor will have a total of 45 days to designate a replacement property. For more information about the 1031 exchange in regards to you real estate investment goals contact me today.