Finance: 10 Important Tips to Successful Real Estate Investing

10 Important Tips to Successful Real Estate Investing

Written by Neda Dabestani-Ryba

Continued from page 1

5. Know where your tenants are coming from If repparttar last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect repparttar 150449 tenants' security deposits at closing.

6. Assess repparttar 150450 tax situation Taxes are an integral part of successful real estate investing, and they often make repparttar 150451 difference between a positive cash flow and a negative one. Know repparttar 150452 tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate insurance coverage If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs Ask repparttar 150453 local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent.

9. Consult Your Accountant Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with repparttar 150454 constantly evolving tax code.

10. Inspect! Make sure that you always perform a thorough inspection of repparttar 150455 property before buying it. Never, ever buy any property without at least examining repparttar 150456 site. In some cases, hiring professional inspectors to examine repparttar 150457 structural mechanical system may be a sound investment.

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/ Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Preserve Equity, Build for the Future Using a 1031 Tax Exchange

Written by Neda Dabestani-Ryba

Continued from page 1
1031 Exchanges are complex mechanisms and like all IRS requirements very specific. For example, exchangers have 45 days from closing to identify properties they intend to purchase and 180 days to complete repparttar

purchase. Purchase and Sale agreements must include verbiage indicating repparttar 150448

intent to affect a 1031 Exchange. The 45-day time frame used to be onerous for sellers. Now, they can opt for a Reverse Exchange, in which an additional third party called "the exchange accommodation title holder" (EAT) acquires title to repparttar 150449

replacement property until repparttar 150450

original property sells. Reverse Exchanges shift repparttar 150451

45- and 180-day time frame to repparttar 150452

selling side of repparttar 150453

transaction. With an Improvement Exchange, which also uses an EAT to hold repparttar 150454

replacement property, sellers can build investment properties from repparttar 150455

ground up or improve existing properties. The improvements have to be built and paid for during repparttar 150456

180-day period. If you are interested in a 1031 Exchange, repparttar 150457

first step is to consult your tax advisors as well as an attorney or CPA who is knowledgeable with 1031 Exchanges. Make sure that your real estate professional knows you plan to conduct an exchange and be sure that he or she is familiar not only with repparttar 150458

process but also with repparttar 150459

specific documentation and time frame mandated by repparttar 150460

IRS. This article is intended to inform readers, but does not constitute any financial or legal advice.

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