Acquiring Lots The Right Best Way!
During the latest real estate boom, many speculators were cashing in by purchasing land and finding a buyer who was willing to pay more than what it was originally purchased for. But, land is a great investment as long as you follow these simple strategies to make money.
The first rule to remember is that if you own real estate the "right way" then it is always a safe and good investment. In other words, using your cash will help keep your bottom line stable and secure, without putting your assets on the line. To have a home that is paid off is the utmost in stability and mental ease, because you do not have to worry about the possibility of losing your property. I realize this is not an option for most people, so maybe consider it as an ideal more than anything else. For those whom this strategy is a possible or realistic one, real estate is the safest place to store your cash, and avoid being taxed on it.
Keeping your real estate that is free of debt as rental or income properties is a great way to compile a source of income that is always there when you need it. If you earn a six figure income and want to avoid paying the full amount of taxes on it, you can reduce your tax liability on your net sheet by buying real estate. Using your tax money to purchase real estate, instead of simply paying it directly to the IRS, is easier than you might think, and will effect your net sheet in such a way that you will actually pay less in taxes. You tax professional can explain all of the ins and outs of using your income in this manner.
If you do not have enough money to purchase a rental outright, maybe you can save enough money to simply buy a building lot and wait until you can save up more money to build on it, after all, there are more than the market needs right now. You can get some very good deals on the building lot market, especially when buying REO lots in bulk. The best investment plan for buying building lots would be a longer term plan that involves buying and holding, due to the fact that they will not yield much, if any, profit for some time in the short term.
I advise people to buy with any means, other than bank financing, due to fees, interest and other prosperity killers. You can even start a partnership with a local builder to build income housing on your lots and split the money, to begin to establish a positive cash flow on lots that otherwise would not be paying you much if any income. - 23162
The first rule to remember is that if you own real estate the "right way" then it is always a safe and good investment. In other words, using your cash will help keep your bottom line stable and secure, without putting your assets on the line. To have a home that is paid off is the utmost in stability and mental ease, because you do not have to worry about the possibility of losing your property. I realize this is not an option for most people, so maybe consider it as an ideal more than anything else. For those whom this strategy is a possible or realistic one, real estate is the safest place to store your cash, and avoid being taxed on it.
Keeping your real estate that is free of debt as rental or income properties is a great way to compile a source of income that is always there when you need it. If you earn a six figure income and want to avoid paying the full amount of taxes on it, you can reduce your tax liability on your net sheet by buying real estate. Using your tax money to purchase real estate, instead of simply paying it directly to the IRS, is easier than you might think, and will effect your net sheet in such a way that you will actually pay less in taxes. You tax professional can explain all of the ins and outs of using your income in this manner.
If you do not have enough money to purchase a rental outright, maybe you can save enough money to simply buy a building lot and wait until you can save up more money to build on it, after all, there are more than the market needs right now. You can get some very good deals on the building lot market, especially when buying REO lots in bulk. The best investment plan for buying building lots would be a longer term plan that involves buying and holding, due to the fact that they will not yield much, if any, profit for some time in the short term.
I advise people to buy with any means, other than bank financing, due to fees, interest and other prosperity killers. You can even start a partnership with a local builder to build income housing on your lots and split the money, to begin to establish a positive cash flow on lots that otherwise would not be paying you much if any income. - 23162
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posted by X - Men @ 1:13 AM
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