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        <title>Denver Real Estate Blog</title>
        <link>http://www.denversrealestate.com/blog/real-estate-investing/</link>
        <description>Denver real estate topics including local metro Denver community news and events.</description>
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            <guid>http://www.denversrealestate.com/blog/buying-real-estate-for-rental-purposes.html</guid>
            <link>http://www.denversrealestate.com/blog/buying-real-estate-for-rental-purposes.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Buying Real Estate For Rental Purposes</title>
            <description> <![CDATA[ 
When a person is looking to buy a home, they should choose to call a real estate agent in the local area in which they are trying to purchase their home. This agent will let them know of the available residential homes in the area of interest. The first thing that most people ask an agent is about the neighborhood, some ask if it is a good or nice neighborhood, while others concentrate on the price. Although a nice neighborhood is great to live in, there are some positive aspects to buying a home in a potentially &quot;bad&quot; neighborhood.

The economic issues with, less than great neighborhoods is what sets the price of the real estate so low. If purchasing property there, the only thing to worry about is the neighborhood changing, for the better, because it cannot get any worse. Some say that there is better rental opportunities in rough neighborhoods because it is cheaper, there are more people that cannot afford to buy a home than those that can, and the cash flow is better.

When renting out a piece of property in a rough neighborhood, if you keep your property maintained, then more than likely you can charge more for someone to rent your property because other rental homes in the area are not well maintained. When the economy happens to take a downfall, homes in richer neighborhoods are affected more than those that are in rough neighborhoods. Money has little to do with renting out a property, but it has a lot to do when you are thinking of buying a piece of property. Some would rather buy seven or eight pieces of property in a rough neighborhood, opposed to spending the same amount of money for one home in a nicer neighborhood.

There are many other ways to invest in real estate, but one that turns over a good profit would be renting out to a tenant. This provides possible income for months, possibly years, and all at the cost of a small budget home with minor repairs in a potentially bad neighborhood that has room for improvement. Many land lords choose to rent to those that can pass a criminal background check or those that have fairly decent credit, when being the landlord you get the choice of who you want to rent to. You have the choice to run a questionable characters credit or approve them on good faith, as long as you have a reason that can be proven in a legal matter to accept or deny the prospective tenant.
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            <pubDate>Fri, 07 Jan 2011 18:29:41 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/real-estate-investing-nows-the-time.html</guid>
            <link>http://www.denversrealestate.com/blog/real-estate-investing-nows-the-time.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Real Estate Investing: Now's the Time</title>
            <description> <![CDATA[ 
People say that your home is your greatest asset. Well, unless it's earning you money, it is not an asset at all; it is a liability. If you have a bit of capital and great credit, or relationships with people who may want to invest with you, this is a great time to jump into the world of real estate investing. Interest rates are at an all-time low, home prices are more affordable than they have been in years, and the market is flooded with houses whose owners would love to sell, even at a bargain. Make a house into an asset by renting it out for a little more than the mortgage, interest, and insurance costs you, and it becomes an asset.

There are many benefits to owning a rental property (or more than one). Buy something that needs a little cosmetic work, make it pretty, and get a tenant. By making those few improvements, the value of the home will have increased. Talk to your bank and see about getting a home equity line of credit. Now you have a bit of money on hand that you can use to invest in a second property. Just repeat the process of finding something that needs a little work, do the work, and get it rented. Keep your rentals in good repair, make sure the yard and home are kept up to your standards, and don't keep renters who don't play by your rules or pay your rent on time. Write up a rental agreement that covers everything, and stick to it. Develop a relationship with a real estate broker, so that they can alert you to any great deals that come on the market.

When looking for rental properties, try to stick to one area. Don't spread your rentals all around town. Become an expert in one neighborhood. Besides, it will be easier to keep an eye on your houses when they are all in one area. Put similar features into the houses, like the same brand of appliances or the same paint, or the same carpet. Ask companies like exterminators or landscapers or HVAC service people for discounts for multiple houses.

If you don't want to manage the tenants, their rent, repairs, and filling vacant houses, hire a property management company. They come with a cost, but in the long run, they save you a lot of stress. Consider their fees as overhead, and add it on to the price of the rent. Make sure you rentals pay for themselves, and have a little left over to pay you, too.
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            <pubDate>Thu, 06 Jan 2011 10:30:47 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/investing-in-foreclosed-homes.html</guid>
            <link>http://www.denversrealestate.com/blog/investing-in-foreclosed-homes.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Investing in Foreclosed Homes</title>
            <description> <![CDATA[ 
Investment opportunities are everywhere nowadays as people are looking for someone to help them along their way. However, probably the most common investment opportunity is real estate. Not only are foreclosures numerous to find, making it incredibly easy to find a home that is going for lower than average price, meaning that if you sell the house once you make a few adjustments, you could make a large percentage of money. But, people should also look into purchasing a foreclosed home as a long-term investment, meaning that they rent the property to people.

Each option has advantages and disadvantages. For example, flipping a foreclosed home requires that you have working capital to start with so that you can make these adjustments and upgrades in order to bring a better selling house. However, you must also get the house for a reasonable price. Since the market is a bit tricky, you do not want to invest more than the home is worth because you end up losing in the end.

On the other hand, purchasing a foreclosed home to make available to rent is a great option for those who want to make their money back over time. Those who can do this, will find that they have a steady stream of income coming in throughout the year as long as the house is being rented. However, they do have to deal with all the duties that come with being a landlord. This includes fixing things when they go wrong, providing insurance on the home to protect themselves, as well as being available for emergencies at all times of the day and night.

So, which is the better option? That really depends on what your goals are. If you want to make profit in a short time, then flipping a foreclosed home is going to be your best bet. For those that want a steady stream of income, renting a foreclosed home is the option to go with. In either situation, the person should be aware of a few things. First, many times foreclosed homes are in bad shape because the previous owners take out their aggression at losing their home on the home. Meaning you could find a lot of work needing to be done. Secondly, purchasing the home does not make sense if you cannot get it for the right price. Remember foreclosures are numerous, so do not get your heart set on just one specific house, as this is a good way to lose money.
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            <pubDate>Sat, 01 Jan 2011 13:46:05 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/tax-deferral-for-investment-property-transactions-with-a-1031-exchange.html</guid>
            <link>http://www.denversrealestate.com/blog/tax-deferral-for-investment-property-transactions-with-a-1031-exchange.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Tax Deferral For Investment Property Transactions With A 1031 Exchange</title>
            <description> <![CDATA[ 
A tax deferred exchange makes it possible to avoid paying capital gains tax when moving investments between two similar types of property. Without this tax deferral, tax would have to be paid when one investment property was sold, even if the intention was to use the money to buy another investment property of the same kind. By using a tax deferred exchange, it is possible to avoid paying any capital gains tax until the final property is sold, without replacement. Avoiding capital gains tax will allow more money to be retained and invested in the replacement property. 

A like-kind investment property is one that is intended to be used for a similar purpose as the original investment property, for example, a real property that will be used for business, trade or investment purposes. For example, a house that is rented out can be exchanged for a retail property since both are intended to be run for business purposes. The properties must lie within the United States. Investments that would not be considered as like-kind exchanges for a property include stocks, bonds, certificates of trust, trade or property that will be sold on, or an interest in a partnership. 

In order to benefit from a delayed exchange it is necessary to fulfill certain criteria. For example, the exchange must take place within the specified time limit. The replacement investment property must be identified in a maximum of 45 days and the purchase of this property must be closed in a maximum of 180 days after the sale of the original property is closed. If a tax return is filed before the end of this 180 day period, then the purchase must be closed by the time the return is filed. 

None of the proceeds that are generated from the sale of the investment property can be kept by the investor. They must all be used to buy the replacement investment property. The money will not pass into the hands of the investor at any time during the exchange. Instead, it will be held in the temporary possession of a qualified intermediary. This intermediary cannot have worked as an agent of the investor. They cannot, therefore, have acted as the investor's broker, attorney or employee in the two years before the exchange. Relatives and controlled corporations are also excluded from acting as intermediaries. The usual intermediary in such a transaction will be a trust company, title insurance or escrow. It is important to choose a trustworthy and reliable qualified intermediary. 

The main advantage of a 1031 tax deferred exchange is in the savings that are made when capital gains tax does not have to be paid. The money can be used instead to purchase a higher value replacement property. The 1031 exchange is the only way to defer all taxes when transferring an investment between two like-kind properties. However, all of the money must remain invested in order to benefit from the tax deferral, so a 1031 exchange is not suitable if some of the funds need to be released. Another disadvantage of the 1031 exchange is that a fee will need to be paid in order to perform the transaction. 

It is a good idea to consult with a Tax Attorney or CPA before arranging a 1031 tax deferred exchange. If you decide to proceed with the exchange, you will need to add an exchange addendum to the contracts for buying or selling real estate and to notify the qualified intermediary. The exchange agreement will need to be arranged with the intermediary, who will need to be kept informed of all developments. You will need to make sure that the proceeds of the sale are transferred directly to the intermediary when the sale is closed, and you will then need to notify them of the replacement properties within 45 days. Within 180 days, you will need to close the purchase of the replacement property and ensure that the intermediary transfers the money. 
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            <pubDate>Tue, 28 Sep 2010 09:03:39 -0600</pubDate>
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            <guid>http://www.denversrealestate.com/blog/the-investment-power-of-real-estate.html</guid>
            <link>http://www.denversrealestate.com/blog/the-investment-power-of-real-estate.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>The Investment Power of Real Estate</title>
            <description> <![CDATA[ 
Wealth accumulation does not have to be about reinventing the wheel.&nbsp; All one really has to do is let history guide you to follow the methods which have worked for decades.&nbsp; 

History dictates that since the Great Depression real estate has always appreciated in value over any given ten year period.&nbsp; This is important for both Realtors and their clients interested in purchasing a home to realize as we are in the latter stages of a market downturn heading into an upturn. 

The real estate market WILL AND IS SHIFTING UP!

This graph demonstrates the power of leveraged real estate investments vs. stock market investing over time.



&nbsp;

Nationally the average appreciation in real estate over any given 10 year period is 5%.&nbsp; That means that real estate valued at $200,000 will appreciate to $310,300 over ten years.&nbsp;&nbsp;Turning a $10,000 initial down payment&nbsp;into $110,300 of CASH EQUITY.

This should provide a new perspective on the accumulation of wealth.&nbsp; Especially when one realizes that this can be repeated many times over.
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            <pubDate>Wed, 04 Nov 2009 10:13:55 -0700</pubDate>
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            <guid>http://www.denversrealestate.com/blog/learn-how-your-ira-can-own-real-estate-vacation-property-and-land.html</guid>
            <link>http://www.denversrealestate.com/blog/learn-how-your-ira-can-own-real-estate-vacation-property-and-land.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Learn How Your IRA Can Own Real Estate, Vacation Property and Land</title>
            <description> <![CDATA[ 
With the roller coaster rides that an investor typically endures while investing in typical stock market based securities many IRA owners are looking for alternative investment options.&nbsp; Alternative investment options that the major investment firms dont promote and dont want you to know about. 

Yes there are alternative investment opportunities for an IRA than the typical mutual funds that your typical major investment firm recommends.

Self Directed Individual Retirement Accounts ( IRA ) allow you to invest in and hold a diverse range of assets.&nbsp; These investment opportunities include Real Estate, Land, Commercial Property, Condominiums, Rental Properties, Mobile Homes, Foreign Real Estate and MUCH MORE.&nbsp; Oh yeah, yes you can even leverage your alternative IRA real estate investments to create the same kind of returns you see on a normal home purchase with a standard mortgage.

Yes there are rules and guidelines but the bottom line is this.&nbsp; If youre tired of the mutual fund games played by the major investment firms with your IRA and want to expand your real estate investment portfolio, then contact me now!

Contrary to what those major investment firms recommend, it is possible to invest your IRA assets in real estate and still enjoy all the tax benefits of that self directed or ROTH IRA. 

A key element in this is ensuring that you use professionals who understand how this can work for you.&nbsp; We network with financial planners who specialize in alternative IRA investment options.&nbsp; Contact us today to get the process started.

Find out more by downloading this FREE REPORT.
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            <pubDate>Tue, 27 Oct 2009 14:32:56 -0600</pubDate>
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