Commercial Real Estate Investment Articles

In this short video, attorney and real estate investor, William Bronchick, explains the benefits of using a land trust for your real estate investments.

You’re probably aware of the significant tax benefits available to real estate investors who are using self-directed IRAs. If you read my previous article, 5 Ways to Invest in Real Estate with a Self-Directed IRA, you’re also aware of the diverse real estate investment options available to you through these retirement accounts. Even so, the most common question I hear is, “But what if I don’t have enough money in my IRA?”

In this video, attorney Bill Bronchick explains how the Dodd-Frank Act applies to real estate investors.

“I would say that single family homes are cheap now. If I had a way of buying a couple hundred thousand single family homes… I would load up on them, and I would take mortgages out at very, very low rates. So it’s a very attractive asset class now.”

“I would say that single family homes are cheap now. If I had a way of buying a couple hundred thousand single family homes… I would load up on them, and I would take mortgages out at very, very low rates. So it’s a very attractive asset class now.” ~ Warren Buffett

With the Federal Reserve’s ongoing statements that they may eventually “taper off” their Quantitative Easing (QE) investments in early 2014, mortgage rates have increased.

It galls me to watch television business “experts” share the same old ineffective retirement advice – save up a big nest egg and live off the interest. This bad advice is ruining people’s lives, as millions of seniors who have followed this advice for decades are discovering right now.

In this 24-minute video, attorney and real estate investor, Bill Bronchick shows how to maximize privacy, maximize protection, and minimize taxes by using these entities. He discusses the pros and cons of each entity.

The best tax deductions are those that do not require cash outlay, yet generate tax savings for you while the property is still generating a positive cash flow and appreciating. “Component” depreciation puts a lot more cash in your pocket. A prime example is rental property depreciation, which is a “paper” deduction you take with no cash outlay, yet it creates cash in your pocket via the tax savings from the deduction. For example, a $3,000 depreciation deduction saves you $900 in a 30% tax bracket. Even better is Component Depreciation (or cost segregation analysis), which is breaking out the property’s cost into depreciable components with shorter recovery lives. This equates to significantly higher depreciation deductions and savings. In the above example, if you used component depreciation, the deduction would be $10,000 (instead of $3,000) with a savings of $3,000 (instead of $900) or a big difference of $2,100 cash in your pocket.

As the famous cowboy, actor, and American humorist, Will Rogers, once said: “Buy land. They ain’t making any more of the stuff.”

Investing in real estate through a self-directed IRA offers many tax advantages to real estate investors. With these advantages, comes a set of rules and regulations that must be followed in order for the IRA to remain compliant and maintain its tax-advantaged status.

If you read my first book, Investing Now, the second chapter is titled “Cash for Today or Wealth for Tomorrow.” If you had to answer that question, what would your answer be? BOTH, is what I would guess most would say! The question is fundamental to your real estate investing model. Many people start off wholesaling and flipping houses retail and never make the transition from transactional income streams into long-term wealth building and residual income streams.

If you read my first book, Investing Now, the second chapter is titled “Cash for Today or Wealth for Tomorrow.”

When you get into “selling” scenarios (like wholesaling, retailing, options, lease options), the IRS (or your CPA) may try to classify you as a real estate “dealer.” Being tagged as a “dealer” could be a financial disaster because unlike a real estate “investor,” you are subject to the highest ordinary income tax rates, plus self-employment taxes, and possibly alternative minimum taxes (AMT). Thus, 50% or 60% or even more of your hard-earned profits could be drained by taxes.

One of the biggest problems real estate investors face is getting the seller to sign the contract. Real estate investor and attorney, Bill Bronchick, says stop talking so much and start listening more.

Are you looking for a new tenant or trying to sell a house? Interested in finding more private lenders? Do you need a referral to a good contractor? A great way to do all of this is with the power of Facebook, Twitter and LinkedIn. The key is to be able to maximize your message to your connections.

Are you looking for a new tenant or trying to sell a house? Interested in finding more private lenders? Do you need a referral to a good contractor? A great way to do all of this is with the power of Facebook, Twitter and LinkedIn. The key is to be able to maximize your message to your connections.

A trust is a legal arrangement or entity to hold, manage, control, privatize, protect, or take care of property in certain special ways. Trusts are not publicly created by a state corporate bureau, but by private written contracts between two parties – the grantor and the trustee. The trustee creates the contract for the benefit of a third party – the beneficiary. Typically the beneficiaries include the grantor, their spouse, and heirs, such as children, grandchildren, etc.

Long time real estate investor, education, and attorney, Bill Bronchick, explains his three favorite ways to find good real estate deals: For Sale By Owners Motivated Landlords (aka “Burned Out” Landlords) Probate

Many homeowners find out their existing mortgage is listed as “inactive.” An inactive status can refer to the transfer of their mortgage to another loan servicer, or to a few other factors as noted below.The difference between having an inactive or an active MERS (Mortgage Electronic Registration System) loan may determine if the property owner has any improved or worsened home equity, or a truly saleable asset.

When it comes to real estate investing with a self-directed IRA, your options are nearly limitless. You can choose between direct property, notes, tax liens, REITs, and more.

A “Contract for Deed” is also known as an “Installment Land Contract” or “Agreement for Deed.” These are owner financing tools for buying or selling real estate with owner financing.

A “Contract for Deed” is also known as an “Installment Land Contract” or “Agreement for Deed.” These are owner financing tools for buying or selling real estate with owner financing. For more details see:

A retiree moved from New York City to Pennsylvania and paid $150,000 all cash for a nice 1,700 square foot house. It was all brick, had a large two-car attached garage, nice level yard, two fireplaces, and almost the entire lower level was also finished (adding almost another 1,700 square feet of finished space). You certainly couldn’t find anything like that for that kind of money in New York City. After living there for five years, the retiree passed away. Some family members moved into the house, and since the house was owned free and clear of any mortgage, they lived there without having to pay rent or mortgage payments.

Seller financing helps you “supersize” your real estate investments. Okay, I confess. Once in awhile, I do indulge in McDonald’s burgers. And when I order a #1 combo, they always ask me if I want to “supersize” it.