Tag Archive for ‘stock market’

2012-2020 Road to Recovery – U.S. Housing Market

Everyone knows the old adage, “buy low and sell high.” The problem is that this feels counter intuitive at the time. Those people who sold during the housing bubble run up and preserved their cash are the same investors buying up property now. Housing is turning around and now is the time to get in the game.

Investment Real Estate Better than Stocks?

Warren Buffet said he’d buy up ” a couple of hundred thousand” single family homes if it were practical to do so. He went on to say that this is a long term strategy. The idea is to purchase with a 30 year mortgage with low rates and to refinance (if rates go down).

Why all the press?

President’s Tax Proposal Impacts Cash Flow Real Estate

The dramatic return difference between dividend-producing stocks and cash flow real estate makes cash flow real estate very compelling. It will become even more so if the president’s latest budget proposal becomes law. I expect the looming law changes will cause cash flow real estate to become a more mainstream investment for millions of Americans.

Real Estate as an Asset Class

After extensive research and experience within a specific market and its sub-markets, trends and characteristics develop that allow an investor to set up portfolio models similar to other asset classes.

Case Study – Generation X & Saving for College

With sluggish 529 returns, Jim and Ruth needed a way to invest that would ensure stronger returns. They needed an assets that would generate income and help fund their daughter’s college ten years from now.

This case study shoes how investment property was the answer, providing strong cash flow now and appreciation potential to help them meet their goals.

Time to Re-balance your Portfolio?

Adding additional positive cash flow real estate assets to an investment or retirement portfolio can both stabilize volatility and significantly affect returns. Opportune times for adding real estate include; when downsizing (using leftover equity for a 1031 exchange), upon retirement (as an alternative investment for a lump sum cash out), or after receiving an inheritance (where the goal is to preserve capital and maximize annual cap rate).

The Tax Advantages of Investment Real Estate (3 of 3) – 1031 Exchanges

1031 Exchanges are one of the most valuable tools to build an investment real estate portfolio while deferring taxes indefinitely. This case study illustrates the value of 1031 Exchanges and outlines long term tax deferral strategies.

Investors Taking Advantage of Tightening Lending Standards

Investors have been acquiring investment properties at a record pace in recent months, as the cash-on-cash returns in many markets have been consistently above 10%.

Fueled by three factors: low median home prices, high rents, and low interest rates, investment homes purchased in 2010 and 2011 have the potential to be the highest performing cash flow properties that we will see in the next 20 years.

Stock Market vs Real Estate Part IV

So the final verdict is?

A carefully chosen real estate investment offers a potent combination of investment stability, high cash flow, tax benefits, and ability to leverage appreciation that is unmatched by the stock market and most alternative investment classes available to most investors.

Stock Market vs. Real Estate Part III

As I have been investing for the last 30 years, I have concluded that real estate offers one of the most attractive classes of investment available to the average investor. In this installment we will look at some of the fundamentals as to why that is the case, especially for single family homes as the investment vehicle.