Commercial Real Estate Investment Articles

Two of the most popular types of retirement savings plans available today are the Roth IRA and the 401(k) plan. In 2001, Congress married these two types of plans by passing the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), which included a provision allowing 401(k)s (regular and solo/individual) the opportunity to make Roth 401(k) contributions after the 2005 tax year.

Analysis paralysis–one of the biggest blocks of successful real estate investing. That’s when you stumble into a good deal, then stop dead in your tracks. You worry about the decision, and never do anything. In my first six months of investing, I looked at hundreds of great deals and froze.

When the account owner is ready to take distributions, they may do so, tax-free, as long as the account has been open for five years, and they are age 59? or older.

Identity Theft is the fastest growing crime in America today. Would you know what to do if it happened to you?

This last year has been a tough year for real estate investors looking for ways to cash flow their properties. I’ve talked to a lot of business owners or employees who have not yet invested in real estate and wonder if they’ve missed out on the real estate rocket. And, everyone wants to know, “What is the next big thing?” And here is my radical response: I don’t care.

So often, beginning real estate investors focus on techniques that they lose sight of the important issue: Is this a good deal? Learning to recognize a good deal takes research, education and, above all, experience. Here’s a good formula to determine whether a potential real estate purchase is a deal. It’s a simple acronym called C.L.E.A.R.

As investors who buy homes directly from motivated sellers, we are usually listening to a seller’s sad story. It is important to know where to “draw the line.” What we mean is, some of us are strictly business and don’t even flinch at the saddest of stories. If the numbers don’t work, “Sorry. Try another investor.”

A key to understanding the power of using “paper” in real estate transactions is to understand that despite what a promissory note might state on its face as the amount of debt owed, it could very well have different perceptions of value to different folks.

As investors who buy homes directly from motivated sellers, we are usually listening to a seller’s sad story. It is important to know where to “draw the line.” What we mean is, some of us are strictly business and don’t even flinch at the saddest of stories. If the numbers don’t work, “Sorry. Try another investor.”

Fact: Well, let’s see what a Supreme Court Justice had to say about that. Justice Learned Hand said, “There is nothing sinister in arranging one’s affairs so as to keep taxes as low as possible. Everybody does so, rich and poor, and all do right. Nobody owes any public duty to pay more than the law demands.”

Once you know the date, time, and terms of a tax sale, get a copy of the list and start researching tax lien properties. I realize you may be holding a list with descriptions of hundreds–even thousands of properties. And I know that if you are unfamiliar with real estate it looks like page after page of unintelligible words and numbers.

For an overview on getting started and collecting information, read Tax Lien Investing Basics (Part One)

As investors who buy homes directly from motivated sellers, we are usually listening to a seller’s sad story. It is important to know where to “draw the line.” What we mean is, some of us are strictly business and don’t even flinch at the saddest of stories. If the numbers don’t work, “Sorry. Try another investor.”

Acquiring investment real estate can be handled with many approaches. Two very popular “no money down” approaches are lease options and “subject to,” or “getting the deed.”

This last year has been a tough year for real estate investors looking for ways to cash flow their properties. I’ve talked to a lot of business owners or employees who have not yet invested in real estate and wonder if they’ve missed out on the real estate rocket. And, everyone wants to know, “What is the next big thing?” And here is my radical response: I don’t care.

Okay, you’re on the front porch of a house in foreclosure, and silly you, you just knocked on the front door. What are you, crazy? Gulp! Easy, relax, we so have this thing handled . . . Now what? Don’t tell me you have to think about it, and don’t you dare tell me it’ll all be okay because you’re “just there to help.”

Two of the most popular types of retirement savings plans available today are the Roth IRA and the 401(k) plan. In 2001, Congress married these two types of plans by passing the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), which included a provision allowing 401(k)s (regular and solo/individual) the opportunity to make Roth 401(k) contributions after the 2005 tax year.

One of the most popular property types in commercial real estate are “triple net,” also known as “NNN” deals. These are typically single-tenant retail properties leased to tenants with high credit ratings on “net, net, net” terms (hence the NNN acronym), meaning the tenant is responsible for real estate taxes, insurance, and all maintenance.

Partnerships can be very lucrative for real estate investors. A partnership is “a legal relation existing between two or more persons contractually associated as joint principals in a business.”

So often, beginning real estate investors focus on techniques that they lose sight of the important issue: Is this a good deal? Learning to recognize a good deal takes research, education and, above all, experience. Here’s a good formula to determine whether a potential real estate purchase is a deal. It’s a simple acronym called C.L.E.A.R.

Have you ever created a deed right there at the seller’s kitchen table? If so, did you bring along a typewriter or just use theirs? Or even better, did you hand write everything up or use one of those office supply store, fill-in-the-blank forms? What are you, some kind of chucklehead or somethin’?

Savvy investors understand that they can often put together more deals through incremental negotiations over the actual repayment terms of the property sale as opposed to focusing solely on the property’s sale price.

Savvy investors understand that they can often put together more deals through incremental negotiations over the actual repayment terms of the property sale as opposed to focusing solely on the property’s sale price.

Whether you plan to rehab or wholesale, you’ll need to build a buyers list. These are the investors to whom you’ll sell properties. If you plan to wholesale real estate, these folks can make you very rich.

In a huge victory for managed and self-directed IRA owners everywhere, the U.S. Supreme Court ruled in April 2005 that IRAs receive Federal Creditor Protection. This means that creditors cannot seize assets in an Individual Retirement Account.