Category: Real Estate
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Real Estate Syndication vs REIT: Which is Right for You?
Real Estate Syndication vs REIT: Which is Right for You? New Passive Investor Circle members often think that a REIT is the same as a real estate syndication. If you want to check out my video breakdown on the two, take a look here: Both investments offer unique opportunities to invest in real estate, but…
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Introduction to 721 Exchange: A Strategy for Capital Gains
Introduction to 721 Exchange: A Strategy for Capital Gains The 721 exchange, also known as the UPREIT (Umbrella Partnership Real Estate Investment Trust) transaction, is a popular strategy among real estate investors for deferring capital gains taxes. This technique allows property owners to contribute their real estate into a REIT (Real Estate Investment Trust) in…
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What Is Return Of Capital vs Return On Capital?
What Is Return Of Capital vs Return On Capital? When diving into the world of investments, it’s important to understand various financial concepts. And two of those concepts I’ve encountered after investing in real estate syndications are Return of Capital and Return on Capital. While these terms might sound similar, they have different meanings and…
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How Much Do Car Washes Make? A Guide to 2024 Profits
How Much Do Car Washes Make? A Guide to 2024 Profits My first vehicle was a black and silver 1985 Chevy Blazer. It had chrome wheels that, if clean, they’d shine and make all the difference in the world. My personality likes things neat and clean, so I’d wash it several times a week. Back…
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2024 Bonus Depreciation Bill: Tax Relief Insight
2024 Bonus Depreciation Bill: Tax Relief Insight There’s a new bonus depreciation bill in town….and here’s the lowdown: The “Tax Relief for American Families and Workers Act of 2024,” also known as HR 7024, was passed by the U.S. House of Representatives on January 31, 2024, with an overwhelming majority vote of 357-70. This legislation…
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How Does a Reverse 1031 Exchange Work In Real Estate?
How Does a Reverse 1031 Exchange Work In Real Estate? Typically, real estate investors are excited when their property sells for a profit. But here’s the deal: occasionally, this sale can be a double-edged sword. Why? They’re happy because they made money, but that happiness can quickly become deflated when they get their tax bill…
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How to Qualify As A Real Estate Professional (As a Doctor)
How to Qualify As A Real Estate Professional (As a Doctor) One of the best ways to avoid taxes and build true wealth is to qualify as a real estate professional (REP). Here’s a video walkthrough of what that looks like: With REP status, you can offset some of your business/practice income with deductions…
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What Is a LOI In Real Estate – Basics Explained
What Is a LOI In Real Estate – Basics Explained In real estate transactions, a Letter of Intent (LOI) plays a crucial role as an initial gesture towards a potential agreement. Consider it a formal yet non-binding document outlining your intentions to purchase or lease a property. Although not a legally enforceable contract, an LOI…
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What Is ROI in Real Estate Investing?
What Is ROI in Real Estate Investing? Real estate investing is one of the most popular ways for busy professionals to build wealth. But as with any type of investment, it’s important to educate yourself on the basics of how it works. One important metric to consider is the return on investment (ROI), which helps gauge…
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Reducing Tax on Rental Income: The Role of Passive Losses
Reducing Tax on Rental Income: The Role of Passive Losses As a periodontist, I was never taught anything about money, much less real estate or taxes, in school. The fault is mine for not seeking this information earlier in my career. It’s amazing that once you learn how to use the tax code correctly, it…
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2024 Bonus Depreciation Update: Is It Coming Back?
2024 Bonus Depreciation Update: Is It Coming Back? In 2024, there have been some changes to the bonus depreciation rules. One notable development is the passage of the Tax Relief for American Families and Workers Act of 2024, which includes a 100% bonus depreciation provision and research and development expensing and expands the Child Tax…
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What Is a Private Placement Memorandum (PPM) In Real Estate?
What Is a Private Placement Memorandum (PPM) In Real Estate? A private placement memorandum (PPM) is an important document for businesses seeking to raise capital by selling securities to a select group of investors. This legal document discloses essential details about the investment, including the company’s financial information, risks associated with the investment, and the…