The IRS’s 3 Buckets APP: The Application and Process They Use to Keep You Stuck If you’ve never read The Creature from Jekyll Island by G. Edward Griffin, I highly recommend it. It lays out how, back in 1913, a group of bankers met at J.P. Morgan’s estate on Jekyll Island and devised two powerful…
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 things…
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 simply…
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, is…
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 an…
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,…
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 to…
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. 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 real…
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 real…
