One of the greatest advantages of investing in real estate is depreciation, as many investors know. Along with other deductions such as insurance, property tax, and maintenance, depreciation can greatly lower your federal taxable income taxes. But how does depreciation really work? When to Use Depreciation Depreciation allows you to spread the initial price of a rental property - excluding the land - over time. As an investor, you can...
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When discussing real estate investing practices, the idea of active versus passive investing is often one that is the root of many heated debates amongst investors. Like many other investment practices, there are strong pros and cons for each method, however, understanding the complexities of each and how they relate to your specific investment needs is what’s most important. Active Investing Active real estate investing can be characterized as the...
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Diversification is essential to mitigating your risk as a passive real estate investor. Chances are you became a passive real estate investor because you did not have enough time to devote to your investment business or because you do not have the knowledge required to become a successful active investor. However, there is another very important reason to become a passive investor and that is the opportunity to diversify, even...
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You can rest assured that you will make some mistakes when you start your real estate investor business. That’s ok, as long as you learn from your missteps. Here are seven of the most common mistakes entrepreneurs who make when they invest in real estate, and how to avoid them. 1. Not Keeping your Eyes on the Prize: When you start your real estate business, make sure to have a...
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Smart investors looking for a good investment opportunity in real estate turn to multifamily buildings for an attractive return. For many, the main advantage that comes to mind is a steady income stream but there are many other benefits to multifamily ownership as well. With a rental property, you are likely to hand off the day-to-day management to a professional property manager so you can become a passive investor. Here...
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