Mezzanine level debt and preferred equity are two ways for the sponsor of a real estate deal to lower the need for his own equity. Naturally, those investments must offer a higher return and higher risk than the first lien debt holder.
Active real estate investors qualify for many unique tax breaks, some of which require you to be a "real estate professional" to get. Learn how to qualify, and also about deductions you can take without qualifying.
I have had a number of representatives of real estate crowdfunding sites wish to submit guest posts to the site. I have turned a whole bunch of them down.
[Editor's Note: This is a guest post from Eric Tait, MD, MBA, a practicing internist and a professional real estate investor. After having a few lengthy arguments with Eric on the Sermo forum, I invit...
Syndicated real estate deals are generally structured to have a down payment of around 1/3, and last 5-7 years. This maximizes cash flow, protecting it from taxes by the depreciation while still taking advantage of leverage and spreading the transaction costs over multiple years.
Before you buy an investment property, you had better run a few numbers to make sure it will be a profitable investment. Failure to do so leads to an albatross around your neck!
John T. Reed writes self-published real estate books. You should read this one before getting in to real estate investing.
Depreciation allows you to defer taxes for decades, or maybe all together.