Most of us now have our taxes filed, and we are looking ahead at ways to manage our finances for the coming years. If you find yourself in this category, this information will most likely resonate well with you. It might just be the time to work towards an additional real estate investment.
This would be an investment beyond purchasing a home for you to live in, which should always come first. Those of you who own your own home should consider further real estate investing.
The benefits of real estate investing can be huge. In most cases, the tax write off and tax savings will definitely help with your future planning. While I am neither your accountant, tax advisor nor tax preparer, understanding how depreciation comes into play as a write off is an impetus to get the ball rolling. Once you have taken the plunge so to speak, you will see the benefits for yourself.
Once we have established the purchase of a property we rent out, and we want to expand our base into something more with our built up equity, there is an IRC 1031 Tax Deferred exchange available to us. While there are guidelines and rules to follow for a transaction to properly qualify for this tax treatment, it does create an excellent opportunity for us investors.
If and when you decide to go down this path, there are many ways to access funds to do so. The most common for gaining the capital is using the equity in your primary residence via a home equity loan. You could have other assets for this investment too, as each situation is different.
One important question to ask yourselves is are you comfortable with the thought of having someone else renting your property? If the answer is no, well, this is not for you. If that works for you, then please keep reading a bit more.
The rental demand in our area is extremely strong. There are way more folks needing homes than there are homes for them. There is a tremendous housing shortage in our area, and that also supports the long term prospect of values increasing and rents rising. Also, being in the sun belt is where we will always see continued growth and demand continue.
The value of an experienced Real Estate professional who has a history and proven track record of using these strategies is always the best source to assist in putting your plan into action.
As an active investor for over 50 years, I have guided several customers through the process and have assisted in hundreds of 1031 exchanges over the years. With proper guidance and counsel, these strategies can increase your net worth several times over, and definitely propel you down the path of financial freedom in whatever way that statement resonates with you.
Here at Ken Follis and Sharon Robinson Group, we have the experience to guide you through the process and help you choose the right property and investment. We believe in this whole heartedly and have firmly established ourselves as active investors.
We would love to speak to you about your future plans in investing and home purchasing. Let's sit down and formulate a plan tailored just for you. Come see us at 100 N. Main Ave. in Fallbrook, or call or email us, Ken Follis at 760-803-6235, [email protected] or Sharon Robinson, 949-295-1161, [email protected] or visit kenfollisandsharonrobinsongroup.com.