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The 9 Benefits of Investing in Real Estate: 9. Step up in cost basis to heirs at time of death or Defer, defer, die
ByWesley Fikes January 3, 2024January 3, 2024

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…

Read More The 9 Benefits of Investing in Real Estate: 9. Step up in cost basis to heirs at time of death or Defer, defer, die
1031 exchange | 1031 Like Kind exchange | Cash on Cash | Cashflow | Inflation | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

The 9 Benefits of Investing in Real Estate: 8. Tax deferral through 1031-like kind exchanges
ByWesley Fikes December 28, 2023December 28, 2023

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…

Read More The 9 Benefits of Investing in Real Estate: 8. Tax deferral through 1031-like kind exchanges
Alternate investments | Cash on Cash | Cashflow | Inflation | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

The 9 Benefits of Investing in Real Estate: 7. Tax-free cash-out refinances (or equity stripping)
ByWesley Fikes December 23, 2023December 23, 2023

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…

Read More The 9 Benefits of Investing in Real Estate: 7. Tax-free cash-out refinances (or equity stripping)
Alternate investments | Cash on Cash | Cashflow | Inflation | Interest rates | Passive Income | Rat Race | Reading list | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

The 9 Benefits of Investing in Real Estate: 5. Principle Pay Down
ByWesley Fikes December 19, 2023December 19, 2023

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,…

Read More The 9 Benefits of Investing in Real Estate: 5. Principle Pay Down
Alternate investments | Cash on Cash | Cashflow | Custom Homes | Inflation | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

The 9 Benefits of Investing in Real Estate: 4. Depreciation
ByWesley Fikes December 17, 2023December 17, 2023

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…

Read More The 9 Benefits of Investing in Real Estate: 4. Depreciation
Alternate investments | Cash on Cash | Cashflow | Inflation | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property

The 9 Benefits of Investing in Real Estate: 3. Inflation and interest rates
ByWesley Fikes December 16, 2023December 16, 2023

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…

Read More The 9 Benefits of Investing in Real Estate: 3. Inflation and interest rates
Alternate investments | Cash on Cash | Cashflow | Inflation | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

The 9 Benefits of Investing in Real Estate: 2. Appreciation via inflation
ByWesley Fikes December 15, 2023December 15, 2023

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…

Read More The 9 Benefits of Investing in Real Estate: 2. Appreciation via inflation
Alternate investments | Cash on Cash | Cashflow | Inflation | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

The 9 Benefits of Investing in Real Estate: 1. Leverage
ByWesley Fikes December 9, 2023December 9, 2023

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…

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Alternate investments | Cash on Cash | Cashflow | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Rental Property | Syndication

3 Ways to $96K a year.
ByWesley Fikes October 28, 2023December 9, 2023

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 federal…

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1031 exchange | 1031 Like Kind exchange | Alternate investments | Cash on Cash | Cashflow | Custom Homes | Interest rates | Passive Income | Rat Race | Real Estate | Real Estate Investing | Realty | Remodeling | Rental Property

Should I convert my primary residence to a rental?
ByWesley Fikes May 3, 2022May 16, 2026

There is a lot to consider when determining whether you should rent out your primary residence. I have been getting this question more frequently of late, so let’s look at some things I discuss with my clients. First on the list is to determine the market rental rate for your property. Use Realtor.com, Zillow, contact…

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