Real Estate Pitfalls Laid Out By Uncle Sam

There is a whole host of reasons that make the US an attractive proposition when it comes to investing in overseas real estate. The markets have not only recovered; they are starting to boom again. The choice is almost unrivalled and the chance to make a buck or two is definitely possible. To top it all of, you have a guy that is desperate to make Uncle Sam great again, whether you like him or not.

However, pitfalls pave the way to most successes, which is why you need to know what mistakes are out there and how you can best avoid them.

Don’t Ignore The Taxes

If you have a backlog of property investments to your name then you’re going to know this hard truth; the profitability of your investment depends upon taxes. The more you are aware of the more profit you can hope to make. That’s why we suggest you do your homework. Know what legal tax breaks you can be afforded, or what write-offs you can use, as well as any deductions you could be awarded. Terms such as section 1031 aren’t used outside the US, but they are a fantastic way of growing your portfolio while avoiding capital gains tax.

Make Sure You ‘Get’ The Process

Buying a property overseas always comes with its nuances, but the USA is packed full of them. The terminology, the legal requirements, the insurances, and even variables that change from state to state. It makes sense to have these protections in place, though, especially considering this is a fast-track way for many to get a green card. For that reason, always get the guidance of EB-5 lawyers and specialists, people in the know that can talk you through a process and help make sure you don’t become one of the many that see their application denied simply because they didn’t understand the process.

Don’t Fall For The Trends

Never make a permanent decision based on a temporary opinion or temporary emotion. That is one of the golden rules of life and certainly American real estate. As such, don’t base your decision to invest somewhere solely on a ‘best place to invest today’ article; do your own due diligence. If you fancy the idea of Miami, then check it out first because you’ll suddenly realize how high the poverty rate is. These kind of facts are not going to be highlighted in marketing documents or sales pitches. So make sure you are doing as much legwork as possible and, if you can, go with a transparent real estate advisor; someone you can trust or someone who has been recommended by someone you trust. But always check out what they are saying.

Avoid Rush Hour

Rushing into a real estate investment is a pretty bad idea, especially with the US. We know there are dangers in dragging your feet for too long, but there is little worse than buying a place because it was a nice off-plan development in a city you have actually heard of and the rental yields are okay.  It is just not the way to successful gain a nice long-term financial reward.In fact, it aligns itself closer with ways to ruin your investment than to improve it. By all means be proactive and set a loose deadline so you don’t miss out, but look at the numbers, crunch them as hard as possible, and have a contingency plan just in case.

Strapped For Cash? Here’s How You Can Make Money From Your Home

There are some times in life when we can all do with a bit of extra cash to get us through till our next paycheck. But what happens when you have exhausted all of the usual options, such as bank loans and overdrafts? Well, you only have to turn to your very own home to find some more money. There are a number of ways your home can get you money when you need it. Not sure how? Here are some handy ways to make money from your home.

 

Refinance Your Property

Do you think you are now at a point where you are able to reduce your mortgage’s interest rate by 0.250% or more? If so, then it sounds like you are in a good place to refinance your property. And this can help you release a lot of cash that was tied up in your home. Once you do refinance your property, you will be saving a lot on your mortgage repayments. And this can ultimately have a lot more spare cash left over at the end of the month. If you are interested in refinancing, you can find out more on websites like www.calmtg.com/refinance/.

 

Rent Out Your Spare Room

If you have a spare bedroom in your home, you could make a nice little sum of money from renting it out. You could list it on sites like Craigslist if you are interested in finding a permanent lodger. Getting a lodger is a great way of securing a steady monthly income from the rent. But if you get someone who you don’t get on with, you may end up stuck with them! If you’d prefer not to rent your room on a permanent basis, think about using AirBnB to advertise it to holidaymakers. This way, you only have to rent it out for a few nights at times that suit you.

 

Turn Your Home Into A Movie Set

There are lots of location agencies who travel up and down the country looking for new sites and locations to shoot films and TV shows. If you are interested in offering your home, you can sign up on one of the agencies’ websites. You will get more money if your home is used for a movie rather than a TV show. But there is still plenty of money from TV programs, so don’t dismiss them just yet! Take a look at location agents’ websites for more information: www.shootfactory.co.uk/.

 

Sell Your Home’s Clutter

When was the last time you cleared out your wardrobe or cupboards? If it’s been a while, it might be worth going through one soon. You never know what you might find in there! There could be plenty of things that you can sell on eBay. If you find a lot of old belongings that are still in good quality, you may even want to hold a garage sale. You could be surprised at how much cash you make through selling your old things!

 

Real Estate Investment Strategies For The New Investor

If you have heard about the incredible financial benefits associated with real estate investing, you may eager to make your first investment. While real estate investments can be risky, they also have tremendous upside potential that may be difficult to overlook. As is the case with any other type of investments, you need to approach real estate investing strategically. These tips will help you to develop a strategy that is right for you.

Prepare Your Personal Finances

Real estate purchases are huge financial transactions. Some investors pay cash, but more commonly, real estate loans are used for investment leverage. Regardless of whether you are buying a rental home or a commercial investment property, your financial situation will be scrutinized when you apply for a loan. Your credit history, employment history, liquid assets, non-liquid assets and other factors will all be reviewed. Before you begin searching for your first property, analyze and prepare your finances so that you can present yourself in the best possible light to banks and investors. This is also a time to determine how much money you want to contribute as a down payment for your first investment.

Locate Partners

Many real estate investors get their feet wet on their own, but others will join forces with a more experienced investor for their first investment. If a partnership is an option for you, look for a dependable partner who has profound experience and who is willing to show you the ropes. Consider setting up a legal entity to purchase the property under after consulting with an attorney and an accountant.

Leverage Strategically

One of the most substantial benefits associated with real estate investing is the ability to leverage your investment with financing. However, this should be done strategically. Consider that the down payment that you make on a property will affect the monthly payment and overhead. Because of this, it also directly impacts your monthly profitability and your overall return on investment. There are many real estate financing options. Rates and terms vary based on the property type, down payment amount and other factors. Therefore, it is important to find the right financing along with the right property. These two generally are not independent factors.

Grow Your Portfolio

Some investors are satisfied with owning one investment, and they are thrilled to use the return to improve their quality of life. Others, however, want to grow their portfolios. You can continue to save money for each new purchase and down payment, or you can use equity in your existing investments to expand your portfolio over the years. For example, you may start with an investment in a few houses. After building equity in these rental properties for a few years, you may sell those properties and use the proceeds for a down payment on a small apartment complex. Over time, you can build a huge real estate portfolio with smart investments.

As is the case with any type of new investment, take time to educate yourself about real estate. Use the resources available to you, such as real estate agents, investor partners, property managers and others, to expand your knowledge. With these efforts and a solid strategy to establish and build your portfolio, you may soon be a seasoned and wealthy real estate investor.