Month: October 2019

Lower Your Taxes:

Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.

For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant does not pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive.

In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these “losses” can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense — you are not actually spending any money — the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.

Seek advise from your Income Tax advisor or a CPA regarding the above information before beginning your investing in real estate program!

Have a Positive Cash Flow:

There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow.

Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow — whether it is pre-tax or after-tax — requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.

Use Leverage:

One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage.

Benefit from Growing Equity:

While investing in real estate is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD’s, the return on investment for real estate purchases can often be greater.

The key to investing in real estate is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it’s time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.

Short Sale Definition:

A Short Sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property and; the underlying lienholder (Lender) agrees to accept a purchase offer from a Buyer that does not cover the existing mortgage including any costs of sale; and the Seller does not have sufficient assets to make up the deficiency.

Short Sales and Distressed Homes for sale make up a large percentage of the available homes for sale in County. Selling or Buying distressed real estate properties can be difficult for both Seller’s and Buyer’s in negotiating with the underlying lender (lien holder) in obtaining the desired decision from the lender, acceptance of the offer presented. Each lender has a set of rules for receiving and reviewing any offers that may be presented to them for Short Sale consideration. I have successfully helped to coordinate the processing of many Short Sales with several different lien holders.

If you are a Seller in Pre-Foreclosure or looking for sound information on how to avoid foreclosure, please contact me for Short Sale information that will assist you in making an informed decision. I cannot and will not guarantee to prevent a foreclosure sale.

If you are looking to buy Distressed Properties or wanting to discuss your options in Selling a Distressed Home. please contact me for Short Sale help.

Let me help you, as your Short Sale real estate Agent and Broker Specialist, with your Distressed Property Search and provide you with a list of the Short Sale and Foreclosure properties that meet your search criteria.

I can also help you with buying Foreclosure Homes, Bank Owned homes, Real Estate Owned (REO) and bank foreclosures for sale by providing you with real estate foreclosure listings of foreclosed properties.

Short Sale homes are often homes in foreclosure and may already be involved in the foreclosure short sale process.

Short Sale Buyer and Seller assistance offered for all pre-foreclosure homes and properties located in Snohomish County including: Arlington, Bothell, Brier, Edmonds, Everett, Granite Falls, Lake Stevens, Lynnwood, Marysville, Mill Creek, Monroe, Mountlake Terrace, Mukilteo, Snohomish, Stanwood, Sultan & Woodway.

We also offers Short Sale assistance in King County, Washington including: Auburn, Bellevue, Black Diamond, Bothell, Burien, Carnation, Clyde Hill, Duvall, Enumclaw, Federal Way, Issaquah, Kenmore, Kent, Kirkland, Lake Forest Park, Maple Valley, Medina, Mercer Island, Newcastle, North Bend, Redmond, Renton, Sammamish, Seattle, Shoreline, Snoqualmie, Vashon Island, West Seattle & Woodinville. King County Washington Short Sale homes.