Today's podcast digs deep into the investment strategy of buying one real estate property a year. Also answering questions about a 20% retirement savings rate, S and C corps, starting a 501c, best student loan interest rates & lots more.
There are lots of ways to effectively invest in real estate. Here's how we're doing it.
Podcast #35 Show Notes: Interview with Jordan Goodman from Money Answers [Update: I recorded an addition to this podcast in December of 2018, about 11 months after this podcast originally ran. Make su...
Some people don't like investing in index funds in retirement accounts. I don't have a problem with a little marketing hype, but when the facts are wrong I'm going to call you out on it.
Some successes come from luck, while other successes come from smart decisions. But a great deal of financial success comes from putting yourself in a position where luck can do its thing.
Don't commit your hard-earned capital without doing your due diligence. It is better to be with a great manager in a good deal than in a great deal with a bad manager.
We dedicate 20% of our portfolio to alternative investments (mostly real estate.) Here's how we're currently invested and how that will change in the next year.
When evaluating a real estate investment, you have to look under the hood. And when you get under there, you better know the difference between a radiator and an alternator. You don't buy a car just looking at the horsepower and you shouldn't buy an investment just looking at the projected return.
Another option for investing in real estate is turnkey direct ownership. You have more control and tax benefits than syndicated shares but there are downsides too.
I don't talk about it a lot, but we do invest in real estate and anticipate investing even more as the years go by. Here's a snapshot of our current real estate empire.
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.
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.
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.