Investing in Real Estate December 7, 2024 - 3:54 AM EST |
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Investing in real estate can be one of the smartest things you do to secure your financial future. At ValuePlus Properties, we offer many services to help investors engineer their real estate success. Our goal is to expertly represent your interests in the real estate transaction while providing an additional checkpoint analysis of each property's profit potential.
Investors find our exclusive Market Intelligence capabilities to be of great value for planning and analyzing investment projects. An investor who is well-informed, well-prepared, and well-represented by a knowledgeable agent puts the odds in their favor. Be prepared to succeed. Get ValuePlus Properties on your side. Contact us today!
There are many real estate investment options to choose from depending on what form of return is most appropriate for you (e.g., current income, capital appreciation or tax-free income), how much risk you can tolerate, and your investment time-frame. For example:
Investment Type | Cash Flow | Risk | Capital | Tax Deduct | Estd. ROI5 | Hold Period |
---|---|---|---|---|---|---|
Fix & Flip1 | _ _ | Med | Med | Low | High | 3 - 6 months |
Rentals2 | + + | Low | Low | High | Med | 7+ years |
Redevelop & Convert3 | _ _ _ | High | High | Low | High | 1 - 2 years |
Land Develop | _ _ | Med | Med | None4 | High | < 5 years |
Land Speculation | _ | Low | Low | None4 | Low | 3+ years |
Vacation Homes | + | Med | Low | High | High | 7+ years |
1 - Buying a property, quickly conducting intelligent renovations, and selling it at a profit.
2 - Rental properties may include single-family and multi-family homes such as duplexes, triplexes, quads and apartment houses, or commercial property.
3 - For example, turning a warehouse into a mixed-use retail space with loft apartments or converting apartments into condos.
4 - Land is not depreciable. However, like most type of real estate investments, parties taking an active management role (as defined by the IRS) may be able to deduct as much as $25,000 against ordinary income annually.
5 - When selling investment properties, you can usually defer capital gain taxes by purchasing another investment property with the proceeds and electing to treat the round-trip transaction as an IRS section 1031 Exchange.