REAL ESTATE INVESTING 101 Minnesota
Why Invest With Us?
Are you looking for a tax-beneficial way to diversify your investment portfolio? Unsure how to get started? The Van Mill Real Estate Group focuses on real estate investments, types of properties, types of leases, tax benefits and tax deferment. After reading, please feel free to request a complimentary consultation to help better align your goals with an implementable strategy.
Many real estate investors enjoy the residential market given the plethora of buyers and renters and property types from which to choose. Regardless of the economic cycle, there is always a residential investment model that boasts strong returns; whether that be through property appreciation or cash flowing opportunities.
Commercial property is classified as any non-residential property, or a residential property containing 5+ units (i.e. apartment buildings). There are a multitude of methods in commercial real estate to generate financial gains, either from capital gain or rental income.
Seeking out foreclosure properties (also known as banked-owned and REO properties) may lead to equitable buying opportunities. Read this article to learn if acquiring bank-owned property aligns with your investigating goals and strategies.
Short sale properties present another opportunity to acquire real estate for under market values, especially if you are amenable to doing some property repairs. Read this article to learn the pros and cons of short sale properties, and if they can be worked into your investment strategy.
Property rehabbing is often times better known as “flipping properties” or “fix-and-flipping” properties. Both describe the process of buying a distressed property with the purpose of repairing and improving to resell in the short-term (3-6 months). This article describes the fundamentals that lead to a successful and profitable rehabbing investment.
This is one of the longest practiced secrets of real estate investing. The ability to acquire real estate through sensible financing allows one to “buy with leverage”, thereby creating the opportunity to magnify gains. There are a multitude of financing products available, so be sure to align your financing product with your investing goals (while managing risk).
While there are no shortage of infomercials out there preaching how you can make a fortune investing in real estate, you can also lose the shirt off your back if your risk exposure is not managed. Don’t make the mistakes covered in the article!
Not only does real estate allow for buying leverage through financing, real estate affords an investor with exclusive tax deductions, depreciation, and tax deferral avenues to help you grow your investments in a compounding nature.
Section 1031 of the Internal Revenue Code allows for “tax deferment” on real estate investing profits realized from a sale, if the sale proceeds are applied towards a “like investment”. By properly leveraging this massive tax benefit, one is able to defer paying income tax or capital gains (possibly indefinitely) on their real estate investments.
Managing a few properties on your own is feasible (when you’re first starting out in real estate investing). However, as your portfolio grows, you have to make the decision to “invest yourself” full-time to manage your portfolio, or keep yourself “liquid” by hiring property management help to allow you to focus on the most profitable activities.