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Becoming a Real Estate Investor

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Becoming a Real Estate Investor

“Anyone can do it- not everyone will”  Gary Keller

We assist individuals who seek financial freedom, by unlocking the world of real estate wealth. Your CIAS Specialist is trained to assist potential clients in investing in real estate as a solid financial decision and allow investors to create a balanced investment portfolio.

Cash Flow

Cash flow is one of the most distinguishable benefits of investing in real estate.  Simply put, cash flow is the rental income remaining after expenses and mortgage are paid. 

Appreciation

An additional benefit of real estate investment is appreciation.  Appreciation is the increase of the investment’s value.  Historically, real estate values have a consistently increased over time.

Leverage

For those looking to invest less in a down payment, cash flow may decrease; however doing so will increase the investment’s return.  This is known as leverage.  Leverage is largely unique to real estate investing, and is a key benefit for those seeking larger returns.

Taxes & Deductions

A significant benefit of investing in real estate is the ability to deduct expenses when renting the property, such as maintenance, advertising, insurance, property management services, legal fees, utilities, taxes, and interest.

Depreciation

Depreciation is another tax benefit of real estate investing, and is how you recover the cost of income producing property.  This is done by deducting some of the cost of the improved value- of the building, not the land—each year on your tax return.  The reasoning behind depreciation is that property suffers from wear and tear over time, and therefore the taxable value of the property depreciates accordingly.

Using and Leveraging Retirement Savings (Self Directed IRA’s)

Options for retirement investing in real estate, is the self-directed IRA.  A SDIRA allows investors to specifically choose the types of investments for their retirement, including real estate.  The benefit of the SDIRA is having control over your financial future, AND being able to invest with tax deferred income. 

1031 Exchanges

 Section 1031 of the tax code provides tax deferrals for like kind properties.  In general, all real estate is ‘like-kind” property, except real estate outside of the territorial United States.

The Primary benefit of the 1031 exchange is the deferring of capital gains taxes paid on the sale of an investment property.