Speaking of a lifetime, the death rate is still one per person and we are all going to make it. When it comes to taxes, real estate, and death, there is some good news for your heirs if you have properly planned. One of the benefits of doing like-kind exchanges, as well as other thingsContinue reading “The 9 Benefits of Investing in Real Estate: 9. Step up in cost basis to heirs at time of death or Defer, defer, die”
Category Archives: Cash on Cash
The 9 Benefits of Investing in Real Estate: 8. Tax deferral through 1031-like kind exchanges
One of the other benefits of real estate that is held for investment purposes, is the ability to sell an asset with substantial capital gains and have the ability per the tax code to defer the taxes by replacing the relinquished property with another property via a 1031-like kind exchange. A 1031-like kind exchange simplyContinue reading “The 9 Benefits of Investing in Real Estate: 8. Tax deferral through 1031-like kind exchanges”
The 9 Benefits of Investing in Real Estate: 7. Tax-free cash-out refinances (or equity stripping)
I want people to understand equity stripping, which is something I did not take full advantage of over my career in real estate investing. I should have planned better. The point I would like to make in this section as you begin to understand principle pay down, overall appreciation of the asset, and leverage, isContinue reading “The 9 Benefits of Investing in Real Estate: 7. Tax-free cash-out refinances (or equity stripping)”
The 9 Benefits of Investing in Real Estate: 6. Cash on Cash returns during your lifetime
In addition to benefits like principal paydown or asset appreciation, cash on cash returns that should be enjoyed every month, is yet another great aspect of investing in real estate and realistically all that will matter at some point in your life if you wish to create enough income to either supplement or replace anContinue reading “The 9 Benefits of Investing in Real Estate: 6. Cash on Cash returns during your lifetime”
The 9 Benefits of Investing in Real Estate: 5. Principle Pay Down
Another benefit of investing in real estate and leveraging the income of others (tenants) is that someone else will pay down the principal balance of the loan used to finance your real estate investment. Depending on the asset class, tenants could be a company, business, or individuals. Everyone needs a place to transact, store things,Continue reading “The 9 Benefits of Investing in Real Estate: 5. Principle Pay Down”
The 9 Benefits of Investing in Real Estate: 4. Depreciation
Is depreciation a benefit of investing in real estate? Does that mean the value goes down? I didn’t get it when I first began investing in real estate to the extent that I do now. I did not completely understand the depreciation of an asset, for tax purposes, on an asset that was supposed toContinue reading “The 9 Benefits of Investing in Real Estate: 4. Depreciation”
The 9 Benefits of Investing in Real Estate: 3. Inflation and interest rates
While we are discussing inflation, I wish I would have better understood the real impact of inflation on interest rates and what that means for the actual cost of money. Let’s discuss an interest rate of 3.4% and an inflation rate of 6.8% (according to BLS.gov/cpi for December 2021) and look at the outcome. InflationContinue reading “The 9 Benefits of Investing in Real Estate: 3. Inflation and interest rates”
The 9 Benefits of Investing in Real Estate: 2. Appreciation via inflation
When I first began investing in real estate, I did not understand the real impact of inflation (or dollar devaluation) on real assets, how it is designed into our system by the Federal Reserve, and how that impacts your investments. So, let’s take a look at the visual price of property appreciation and the realContinue reading “The 9 Benefits of Investing in Real Estate: 2. Appreciation via inflation”
The 9 Benefits of Investing in Real Estate: 1. Leverage
Real estate can be a great investment opportunity. Real property and real estate tend to build value and real wealth over time, which produces a return ON and OF your initial investment in multiple ways. We will take a simple look at the power of 1) leverage, 2) appreciation via inflation, 3) consideration of realContinue reading “The 9 Benefits of Investing in Real Estate: 1. Leverage”
3 Ways to $96K a year.
While I am still in the process of writing my book, let me share some concepts from one of the chapters about 3 ways to make $96,000 a year of tax advantaged “passive” income (which would be the equivalent of making $192,000 at a W-2 job and giving 50% away to state, local and federalContinue reading “3 Ways to $96K a year.”
