Answers to building solid in Real Estate Investing and Product Creation! The Internet marketing you've been waiting for!
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Valerie Adams
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http://www.GetRealEstateCoaching.com
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Why is the business relating to real estate so popular? Before you had the buying and selling of properties. Now, with the widespread use of the Internet, we have real estate trading which is basically “I buy yours you buy mine” kind of arrangement.
The term real estate is used to refer to any property, which is permanently attached to land such as buildings and houses. Most people refer to it as real property but there are situations wherein the term real estate is used for the land and the building together while real property refers to the ownership rights of the land itself. On the other hand, the word real is used to categorize these properties as “things” as opposed to “people”.
Records show that the idea of real estate; can be traced as far back as 1666. With the idea of personal property becoming more widespread, real estate has become a major area of business in the United States. In fact, economists claim that economic slumps are directly related when there is lower revenue generated by this industry. In order for the USA to get back on track and stay there; Americans need to view land and buildings as an investment.
There are many types of real estate: residential, commercial or industrial property. The most common transactions involve the buying and selling of residential properties such as apartments, condominiums and multi-family homes. Sometimes families who want to move to a different state finds it difficult to find dwellings on their own so they usually do a map search of the area they’re moving to so as to find any houses which are either for sale or for rent. This way, they get to pick the properties they want without having to travel yet, thereby saving time, effort and money. In some cases, people contact a real estate agent who can then give them a tour of the area so that they get to see the houses and to possibly bargain for the price of the property.
In US and Canada, finding property is easy because of the existence of the multiple listing system or MLS – a data base where real estate brokers can share information about the properties their clients are planning to sell, or in some cases, planning to buy. Most people who want to buy a house usually have no idea where to start so they call a real estate agent. When you do so, the agent searches the MLS to find details about the property. At present, there are about 700 different MLS in the US with new competitors like Hubzu.
But now there is a new way to get into the game. Wholesaling and a lot of retail buyers are turning to wholesalers and house-flippers to buy their dream homes. As an investor you must keep your eyes open for these opportunities because it is an exit strategy in real estate investing with the highest amount of return; as it relates to single family residential properties. The tip here.. Buy low, rehab well (quality and not quantity) and sell retail for more bang to the buck!
If this article was helpful please be sure to subscribe to my blog and get updates on future articles and content and LEAVE a COMMENT below.
For more information on starting a career in real estate investing or to learn how to consistently do 5-7 deals each month; contact me for an appointment to discuss.
See you at the Top!
Valerie Adams
Valerie@ConversionMarketingExpertz.com
Just like in any other business, real estate investing would require you to pay different kinds of taxes. Two of which are income tax and property tax. To know the twists and turns of real estate investing, you should know what these taxes are, when do you pay them and their difference.
As the name suggests, income tax is tax that is deducted from your income. It is charged on the financial income of people, corporations or further legal entities. There are different systems of this kind of tax coupled with different degrees of incidence. Charging this kind of tax can be proportional, progressive or regressive.
When tax is imposed on incomes of companies, then this may be called corporate tax, profit tax, or corporate income tax and if self-employed, self-employment Tax. Tax from the earnings of an individual is usually charged from his total income. But in the case of corporations, the tax is usually charged from the net income of the corporation.
In terms of real estate investing, income tax comes in when you are profiting or having income from your property. For example, you have invested in a piece of land and leased it, then you would have to pay income tax from the income you get from your rentals.
This includes your gross income or all amounts that you received as rent. Rental income is considered to be any payment that you received for the use or the occupation of your property.
However, the positive side effect of charging income tax in real estate investing is that you can deduct different expenses of renting property from your total rental income. Generally, the rule is that you deduct your rental expenses during the year in which you pay them.
Expenses that you can deduct include advertising, cleaning and maintenance, utilities, insurance, taxes, interest points, commissions, tax return preparation fees, travel expenses, rental payments and expenses on local transportation.
If you are a taxpayer under cash basis, you usually report your rental income on your return in the same year that you constructively or actually received it. You fall under this category if you report income the same year that you receive it, despite the month you earned it.
In real estate investing, you also pay property tax. This is also known as millage tax. Property tax is said to be an ad-valorem tax, where a property owner pays depending on the value of the property being charged.
There are basically three different kinds of property. First is land, then your improvements to the land, such as buildings; and last but not the least, personality like manmade objects that are movable.
Real property, real estate and realty are all terms used to pertain to the combination of improvements and land. In real estate investing, the taxing authority usually requires or does an appraisal of the property’s monetary value, and then tax is assessed in ratio to the value.
If you really want to get into real estate investing, then you should know what form of property tax that is used in the municipality you are investing in.
One common mistake that real estate investors make is their confusion between special assessment and property tax. These are actually two different forms of taxation. One is an ad-valorem tax, which highly relies on the property’s fair market value for justification, while the other highly depends on a special enhancement that is called a benefit for its justification.
In real estate investing, the rate of your property tax usually comes in percentage form. To calculate your property tax, you multiply the assessed value of your property with the mill rate and then divide them by one thousand.
For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.
Valerie Adams
Valerie@ConversionMarketingExpertz.com
Valerie "The Coach" Adams 