If you're thinking about how to get the highest return on your 500K investment here's the first thing: don't put it all in the same place! When you have $500,000 to invest, you should diversify your portfolio by investing in several sectors of the economy. That way you will have various returns from various places. Investing a half-million dollars may not be something that anyone can do, but if you...
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Presently, the commercial real estate (CRE) sector is witnessing a boom, and savvy investors are keying into this. What investor would want to pass up an opportunity to enjoy long-term leases, passive income, affordable properties in booming markets, and zero or the little landlord responsibility that comes with triple net (NNN) investments, a fast-rising sector in CRE? Whether you're new to real estate...
When it comes to investing in a 1031 Exchange Tenants in Common, an informed choice can make all the difference. Getting the basics right can save you a lot of money, taxes, and even maintenance responsibilities. Often used for tax purposes, 1031 Exchanges are beneficial for a mortgage and in heirship too. But is it worth it to invest your hard earned money in a Tenants in Common ownership? How can you...
When renting property, a lease is a formal contract that lays out the responsibilities of the tenant and property owner. It details the length of ownership, due date of rent, and who’s responsible for what in the maintenance of the property. In this blog, we’ll cover the different types of lease available, including: Full service leases Net leases We’ll briefly look at the prominent features...
Are you interested in getting started in commercial real estate but want an investment where you can be hands-off and earn a passive income? Triple net lease properties might be the perfect segway from residential to commercial properties. NNN leases are typically large franchise stores, such as Starbucks, Walgreens, and 7-Eleven, that have a stable and guaranteed cap rate every year. Triple net leases...
Building your wealth while maintaining a personal life can be a huge challenge. For this reason alone, investing in passive income properties has become increasingly attractive to investors. It's no secret that many wealthy people hold multiple investment properties to create a steady cash flow that supplements their regular monthly income. There are various options in the real estate market for both the...
As you’re probably looking to maximize profits from your investment property, you should learn how to minimize your tax liability. If you took advantage of the depreciation method for tax deductions, know that the IRS will come knocking. The IRS will want to get some portion of that money back through depreciation recapture. This isn’t helping your total tax bill at all! Luckily, there are some tax...
Successful real estate investors looking to diversify their portfolios buy and sell properties all the time. However, real estate transactions are typically accompanied by a myriad of fees, costs, and taxes that can diminish profit margins. A 1031 exchange allows investors to dispense with certain real property and acquire another of a similar commercial nature. These are referred to as the...
When we talk about commercial real estate leases, you are probably already familiar with the two types of leases: a gross lease and a net lease. These leases serve as an agreement between the parties involved (a commercial tenant and the landlord). They cover the basic details of which party will be responsible for the maintenance and upkeep of the property (basically, all the expenses). While a...
An excellent example of a multi-tenant net lease property is the apartment building from the famous sitcom Friends. The building’s landlord receives rent from at least four of the six main characters in the series and the other tenants and the owner of the coffee shop, Central Perk, which is situated on the first floor of the building. Now imagine an alternate universe where Terry, the owner of Central...