estate investors

Real Estate Investment Opportunities within the Twin Cities

To better serve the needs of real estate investors in Minneapolis & St Paul as well as surrounding areas within the Twin Cities, I have recently earned the Certified Investor Agent Specialist™ (CIAS) Designation. With the CIAS, I have the training, tools and calculations to effectively serve the five investor types: First-Time Investor, Move-Up Investor, Portfolio Investor, Performance Investor, and Rehab and Resell Investor.

Real estate represents a consistent and stable way to build wealth, brings liquidity to our housing market, and stimulates our local economy. In fact, in the past year, investment and second-home properties represented approximately 27% of all residential sales. It’s also worth noting that nationwide, 43% of real estate investors earned less than $75,000 per year.

Today, real estate is quite literally on sale! There is an unprecedented opportunity to build wealth through real estate, and I specialize in helping all investors achieve their goals.

Contact me today at 952-929-2577 to learn more about investing in real estate.

In my 26 years of real estate sales, I can tell you the values are extreme. Don’t let this opportunity pass you by. Now is the time to purchase real estate.

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Want to Be a Successful Real Estate Investor? What You Need to Do

By Amon Minor

Are you looking to make money through real estate investing? If you are, you are not alone. However, real estate investing is a tricky business. There are some real estate investors who are successful, while others are not. If you are interested in becoming a successful, profitable real estate investor, you will want to make sure that you know exactly what you are doing, when buying real estate investment properties. That is why it is advised that you do your on research or signup to take a real estate investment course or class.

When it comes to taking the time to thoroughly examine real estate investing, there are many hopeful real estate investors who wonder why they should bother. Many assume that buying real estate properties, fixing them up and then renting or selling them isn’t a complicated process, but there is more to being a real estate investor than just putting a purchase offer on a property and doing a few repairs. By taking the time to actually learn about real estate investing, you are more likely to become a successful real estate investor.

One of the reasons why research increases your chances of seeing success and profits is because there are many real estate investing tips out there, just waiting to be found and used. What many do not realize that is many real estate investing tips, which include both dos and don’ts, are composed by successful real estate investors; those who have seen profits themselves. Getting your information from a successful, proven real estate investor is your best chance of success. This is because the information or tips that they give you are relevant, as they have often tried them out first hand. For that reason, you may want to look for real estate books or real estate courses that are written or being hosted by successful real estate investors.

Some of the many tips covered in many real estate investing books and real estate investing courses include tips on buying the bests properties, as well as how to make those properties rentable or sellable. As a real estate investor, you have the decision to fix up a purchased property and then resell it or become a landlord. Many real estate courses and books cover both real estate investment approaches, as well as outline the chances of success with each. As a real estate investor, you are your own boss; therefore, you are able to make your own decision, as to what type of investing you would like to do, but seeing information on past investors and their success may give you good ideas; ideas that could help you become a successful real estate investor.

In short, if you are serious about becoming a real estate investor, you will want to take a real estate investment course or purchase a collection of your own real estate investing books. When it comes to becoming a successful real estate investor, research cannot be emphasized on enough.

Amon Minor is a writer for Fastcashinrealestateforeclosures . com where you can find accurate information about Real Estate Investor and other related information.

Article Source: http://EzineArticles.com/?expert=Amon_Minor
http://EzineArticles.com/?Want-to-Be-a-Successful-Real-Estate-Investor?–What-You-Need-to-Do&id=506852

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Investing In Real Estate Investors

By John Roush

With the never-ending changes in our Real Estate Markets real estate professionals are starting to pay attention to the sound of new commission streams of income. Some realtors have either shied away or ran-away from such terms as “Cap Rate,” & “Cash-on-Cash Returns.” Terms that only the ‘smart’ and ‘numbers-oriented people use to determine if a Real Estate purchase is a “Good Deal”, or not. A majority of the realtor brethren attended real estate school because they are excited and passionate about the promise of selling real estate and making a fantastic living. That being said “Times are a Changing.” Even if you live in a Hot Market where residential real estate sells in 2-3 days there is an old approach to real estate that is growing faster by the day…..Residential Real Estate Investors.

This deft group of real estate investors is taking real estate and the real estate investment world into a new era! No longer accepting the crazy volatility of the Dow Jones and NASDAQ families. Unwilling to accept the investment practices of their fore-fathers these Investors throw caution to the wind for returns above the traditional 5-6% in their Roth or IRA accounts. These Investors are bold and oftentimes aggressive. Today’s Real Estate Investors are all about the fast fix-n-flip, high appreciation, and rock solid monthly cash-flows. Cutting their teeth on investment in their own home-towns is only the beginning as the Serious Investors turn to points outside their own back-yards to other regions that demonstrate greater promise and higher returns. You may say well how does this older adult view their investment opportunities? For starters the age of these stealth hunters ranges from 28 to 68. From “Rich Dad-Poor Dad” book series to Trumps magical presence on “The Apprentice,” the young real estate entrepreneurs are making their dreams happen to the tune of 3-5 acquisitions a year! Got your attention now? The typical Investor has good to great credit scores. Excellent cash reserves or hidden resources of partners with cash, and a willingness to make the deal happen at nearly any cost. The best kept secret of all is that these investing beasts travel in packs. Where you see one another is very close behind. In other words they know the people that you need to know to grow your investor database even larger. If the real estate professional does a good job the happy clients are likely to refer many of their fellow-investors. Not just investor clients but their regular every-day real estate business. Face it, if you can demonstrate to your clients how adept you are with their largest personal purchase of real estate, then wouldn’t you suppose they will be over their “trusted real estate advisors” opinion on buying a basic home, condo or beach house?

So what if you haven’t been focused in the real estate investment sector. And you are thinking this all sounds pretty good, let’s give it a try. First question to ask yourself is who have your clients been working with or exploring their options of real estate investing with over the past 3-4 months. Statistically 6 out of 10 clients have considered investing in real estate or have already begun doing so before their realtor even has a chance to blink an eye. Got your attention now? How about the fact that in less than one year I increased my annual commissions by 30% by just positioning myself within my primary data-base of clients. All I did was let them know that I was ready, willing and able to begin assisting them with their “Investment Realty” needs. What I learned during the first year was that if I could create an environment for my clients to learn more about real estate investing that they would thank me in a variety of ways….Most importantly they would call me before writing a contract and would make sure that I was involved in every contract that wanted to make a real estate purchase. Before long 30% went up to 45% and further. Even if you aren’t interested in expanding your client database, at least consider protecting the turf you have for so long spent tireless amounts of time and financial resources to maintain their allegiance. On the other hand if you are looking at your real estate career and are wondering how to reposition yourself for market growth certainly to go well into 2025, here are a few known facts about how real estate investors can improve your business.

1. Real Estate Investors are literally everywhere. Successfully tapping into your current database could increase your annual commissions by 20-30%.

2. Real Estate Investors will be loyal to the professional that helps fill the gap of their investment education. Workshops, mentoring groups, finding the “golden deals” in your market makes a huge impact!

3. Investing in Real Estate Investors doesn’t have to mean that you lose your “typical” residential realtor position. Being a real estate investment specialist means you are smarter than the average realtor in the market.

4. Mortgage professionals are struggling to provide real estate investors with property deals, so when you can place an investor into a good deal the referrals will begin to flow even more.

5. Real Estate Investors tend to be more conscientious about your personal time away. Investors also like to shop Monday-Friday for their deals before the “Weekend Warrior” investors get out into the competition. This translates into more normal hours and days of operation for you and your business.

6. Real Estate Investors buy-sell cycles are shorter than primary home purchasers resulting in more transactions in shorter time-frames.

If any of these points are encouraging you to seek new options in your business then make sure to sign up for the monthly “Grow your Real Estate Investment business” e-mail newsletter from http://www.InvestorLoft.com additionally, other excellent tools to improve and expand your real estate business can be explored at the InvestorLoft’s educational Shoppe.

By John E. Roush, Broker-Owner Atrium Real Estate Investments. John is a full-time real estate agent specializing in real estate investment and real estate investment education. To contact John send all correspondence to Johnr@investorloft.com

©2005 http://www.investorloft.com

Article Source: http://EzineArticles.com/?expert=John_Roush
http://EzineArticles.com/?Investing-In-Real-Estate-Investors&id=45945

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Rules and Requirements For 1031 Exchange

Rules and Requirements For 1031 ExchanBy William Jonas

Real property should go into rules and requirements needed for 1031 exchange IRS rules. A lot of people may have any question for in the sale of their real property and about 1031 exchange should consult a tax professional. For people who may not have heard about this 1031exchange, it was created during the year of 1990. The main purpose of having this 1031 exchange is to help real estate investors who are in a real estate business. They can benefit from their investment by re-investing their properties for exchange to their old properties.

Although this process may seem like ordinary tax federal procedures, it is essential to your business for you to gain knowledge about exchange rules. Just like other business ventures, there are a lot of requirements for you to qualify in this 1031 exchange code.

A minimum of at least two properties should be involved within the transaction. You cannot use your own home to qualify for 1031 exchange code. You have to hire a personal real state lawyer to help you in fixing legal processes involving 1031 exchange. You may also choose to hire a qualified intermediary to ease the problem of getting 1031 exchange requirements.

You have to go after the 45 day rule. You only have 45 days from the actual date you “sell” your property to see the property that you want to “buy.” Keep in mind that rules are presented because you are responsible in doing an exchange and you are required to follow exchange rules. It is better if do not trade your property, pouch the money, and look for a new property. Take the 45 day rule to look for the right property for your exchange.

The 1031 exchange take the 180 day rule. You only have 180 days from the classification date up to the final closing date to be able to accomplish the whole exchange process. These dates cannot be stretched according to your needs. You must accomplish the deal within the time allotted by the IRS to take benefits out of complimentary tax treatment. If the 180th day is Sunday, you cannot get an extra day. It is exactly 180 days regardless of any day it might fall.

Look for a buyer for your property. The person that might purchase your property is not exchanging your property for their property. You are not forced to buy their property even though the 1031 exchange is referred to as an exchange deal. The exchange only happens through a QI holding then only exchanging the title of the property to all parties later.

It can be referred as a person who enters a contract along with you to transfer any asset that you give up to acquire the new property you choose to replace. This new property will replace your old property. The 1031 exchange can limit your right to borrow, pledge, and receive benefits or any property by the qualified intermediary. All this can greatly help you in engaging into this 1031 exchange. If you have a lot of assets it means more good investment for your business.

Author Bio: Written by William Jonas – Bristol 1031 Exchange Services, Inc. provides 1031 tax deferred solutions to real estate investors nationwide. Costa Mesa, CA 92626.

Article Source: http://EzineArticles.com/?expert=William_Jonas
http://EzineArticles.com/?Rules-and-Requirements-For-1031-Exchange&id=3292689

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The IRS Definition of an Exchange

If you have ever stumbled upon http://www.IRS.gov you have probably seen that there is a wealth of information on there. Some people find the site hard to navigate or simply find that some of the information is a little difficult to understand. If you are someone that is interested in real estate investments, it is vital that you make sure that you are fully aware of all the laws, restrictions and taxes that you have to face.

Of course, you already know that you have to pay taxes on the properties that you sell, but what about if you are exchanging a property or two? Believe it or not, there is an exchange program set up through the IRS that allows a person to take the proceeds from the sale of a property and invest it into a new investment property that is equal to or greater than the fair market value of the property that sold.

Section 1031 is where you want to focus for such benefits. The 1031 tax exchange is fairly simple to complete but there are a few things that you have to know in order to make sure that it is something that you are going to be able to take full advantage of. The IRS definition of this exchange is the exchange of qualified properties, which will defer the capital losses or gains that would typically be due upon the sale. There are two basic types of exchanges under the 1031 tax exchange regulations. There is the simultaneous exchange and then there is the delayed exchange.

The delayed exchange does seem to be the more typically used but the simultaneous exchange does have its place. The simultaneous exchange is where a property is accepted as “payment” from someone purchasing his or her property, in lieu of a cash payment. There are still value rules that have to be adhered to which are clearly defined on the IRS website. Typically though, real estate investors who are selling their property are not dealing with someone who has a property that they want to take on.

The delayed exchange is perfect for these cases. The investor can sell his or her property and then shop for another, from a third party. The investor has forty five days from the date of the sale to identify the property that he or she is interested in purchasing and using for the section 1031 exchange. To identify the property, the investor must submit his or her intentions to the Qualified Intermediary in writing. It is important to note that the forty five days does include weekends and holidays. If you miss the deadline, you miss out on the tax deferment. There are no exceptions granted under the 1031 tax exchange rules.

But the forty five day timeline is not the only timeline you face. Once you identify the property or properties that you want to purchase in the exchange, you have only one hundred and eighty days from the sale of your property to purchase the new ones. It is a good thing that you are allowed to identify up to three properties of interest since the timeline is so strict. Even if you are only interested in taking on one additional real estate investment property, you will have options if something falls through. If the property you identified falls through and you are not able to purchase it, then you are not able to take part in the 1031 exchange if your forty five day period is up. If you identified more than one property during that time frame, you will be able to simply try to purchase another one from your list. This means that you should have no problem taking full advantage of the tax deferment benefits that come from the section 1031 exchange.

It is also important to know that the Qualified Intermediary holds on to the proceeds from the property you sold until it is transferred over to purchase the new property or properties. You also have to make sure that the property or properties that you take on are of equal fair market value of the property that you sold. They can also be worth more than the property you sold, they just cannot be worth less, otherwise, and they will not qualify for the section 1031 exchange.

When dealing with the 1031 tax exchange for the first time, you might want to look around for a little outside help. The last thing you want to do is to miss out on the tax deferment. Having to pay on your capital gains now could mess up the plans you have to reinvest into some more investment properties. The more money you have to purchase new properties, the larger and quicker your overall wealth will grow. Sure, you will pay taxes when the time is right, but for right now, you can take advantage of section 1031 and build upon your wealth.

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What are Some of the Mandatory Time Frames And Rules For 1031 Exchange?

Those who are experienced real estate investors might already know all of the ins and outs of the 1031 rules. Those who are just getting started in investments or who are simply looking into their options may not yet understand all of the 1031 requirements that are needed to be fulfilled in order to gain the tax benefits that are sought after.

The first thing you want to do is to make sure that you are very familiar with all of the ins and outs of the 1031 requirements. By missing just one little fact, step, or piece of information, you could literally miss out on thousands of dollars. Wouldn’t you much rather that money be invested into another piece of real estate than given to the IRS right now? Of course, if you are not looking to reinvest in real estate, the requirements for the 1031 will not matter to you. If you want to build your wealth though, make sure that you are closely watching for the requirements.

To start, you have to have an investment property that you are selling. This is not a place where you are living, although you could have tenants in the property. Once the investment property sells, you have to name another property that you are purchasing in place of that one. The new property and the property you are selling have to be of “like kind”. This means that the value of the new investment property must be at least the same value of the property you are selling, if not more. In some cases, the new purchase can be of several different properties as long as they add up to be of “like kind” when it is all said and done.

You have exactly forty five days from the date that you sell your property to name the property or properties that you are using as the replacement. The 1031 rules clearly state that the forty five days is not negotiable, you cannot get an extension. There are no exceptions to this rule. You either comply with the rules or miss out on the tax benefits. One thing that seems to mess a lot of people up is that the forty five days does include weekends. It even includes holidays such as Christmas and Easter. So, make sure that you are counting down your forty five days exactly. You do not want to miss the deadline by even one day because you would not be able to take part in the 1031 exchange and you would miss out on the tax benefits.

Now, while you have forty five days to name the property that you want to use as the replacement, or the trade, you have only one hundred and eighty days from the date of the first sale to gain the replacement property or properties in your name. You want to make sure that you are taking your good old time with this. Those one hundred and eighty days can move pretty quick and a lot of things with the sale can go wrong or cause a delay. Also, if your IRS tax bill has a due date that comes before the one hundred and eighty days, you will have to go by that due date, which means you do not have as much time as you would have thought at first.

Make sure that you are not waiting until the very last minute for all of your transactions. Also make sure that you are looking over all of the 1031 rules and regulations. If you do not know what you are in for, you may miss some of the 1031 requirements and miss out on that tax delay. This could be the difference of getting another investment property or not getting one. It may seem like the 1031 requirements can go on and on forever, but once you really dive in there and start reading through everything; you will find that the 1031 rules are pretty straightforward.

As long as you are taking the time to read through all of the 1031 requirements, you will be just fine. If you find that the process begins to sound a little confusing for you, all you have to do is talk with your real estate attorney and he or she should be able to understand everything about the 1031 rules and requirements.

If you do not yet have a real estate attorney on retainer, you may want to consider getting one, even though you do not have to have one in order to take advantage of the 1031 exchange. You just never know when there will be additional tax breaks or deferments that you can take advantage of. The more you know and the more loopholes you take advantage of, the bigger and better your overall wealth will become.

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What are the Mechanics of a 1031 Exchange-How Does it Work?

If you have ever wondered just how it was that real estate investors can go from one property to another without looking as though they just paid thousands of dollars in taxes? The reason they are able to move from one property to the next is simply because they are taking advantage of a little known secret called the IRS 1031 exchange. Without taking advantage of this exchange, someone would have to pay the typical taxes on the sale of a property. Then, they would have to take what is left and try to invest in another property. This can be extremely hard to do but luckily, there is an easier way.

The 1031 exchanges are easy enough to understand, in terms of the basic concept. The basic concept is that the real estate investor is selling one property. Instead of paying taxes on that sale, the investor wants to purchase another investment property. The equity from the sale of the first property is used to invest in another property that is equal to or greater than the first in terms of value. When the money from the equity in the first home is used to purchase the second home, this is the 1031 exchange. Taxes are deferred. Wealth is built. Futures are secured.

As you can easily see, the basics, or the skeleton of the plan, is easy enough to understand. Understanding all of the rules, regulations, guidelines and timeframes is a little different. There are many things that could come up which could completely foil your plan to take advantage of the 1031 exchange. These are just simple little mistakes that could literally cost you thousands of dollars. To make sure that this is not something you are faced with, you want to make sure that you are studying the rules and guidelines of the 1031 exchanges as though you are studying for the bar exam.

The first thing you will want to realize is that there are very tight guidelines that are involved with the 1031 exchange. You want to make sure that you are extremely clear on what those guidelines involve so that you are not making any costly mistakes. You will quickly see that the timelines are the most important. The time lines for the 1031 exchange actually involve two parts.

When you first sell your investment property, you will have forty five days to identify the replacement property that you want to purchasing. This forty five days starts from the sale date and it is forty five days exactly. There are no extensions and certainly no exceptions. The holidays and weekend count as part of the forty five days so you are not just looking at business days when you are counting down.

Then, you only have a total of one hundred and eighty days from the date of the first sale to complete the acquisition of the second property. In some cases, if the investor’s IRS yearly tax due date is creeping up sooner than the one hundred and eighty days, the investor will only have until then to finish everything up. So whichever comes first, the one hundred and eighty days or the federal tax return due date, that is when everything must be wrapped up and completed in order to take advantage of the 1031 exchanges.

It is also important to make sure that you understand what types of properties qualify for the 1031 exchange and which properties do not. By making sure that you completely understand the rules for the 1031 exchanges before you jump in head first, you will ensure that your attempt at saving a substantial amount in tax money right now will be a success. You need to first realize that since the 1031 were built for the purpose of helping investors, the properties that you are selling and purchasing must be investment properties. These are not going to be properties that you live in. They can be rentals and properties that you are simply flipping.

The properties that qualify for the 1031 exchange also have to be “equals”. The property that you are purchasing must be of an equal value or greater than the one you sold. Basically, you want to make sure that you are “trading up” in order to qualify for the tax breaks that come from using the 1031 exchanges.

Since there is a lot that has to be done in a very little amount of time, it is important to make sure that you are getting as much help as possible. If you have a real estate attorney or an accountant, that is great. They will be able to help you through the process. Make sure that you are not leaving it all in the hands of those you have hired. You want to make sure that you are fully learning about the 1031 exchange so that you can make sure that everything is falling together nicely for you. Even though there are a few rules and regulations you have to deal with, the tax deferment advantage that you receive is well worth it. You can finally invest in the real estate that is going to set up your financial security for the future.

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