Home Featured Property Commercial Listings Apartments Forums Contacts  
It takes many good deeds to build a good reputation, and only one bad one to lose it.
Benjamin Franklin

  Main Menu
Investor Tips
TIP #1 (Leveraging Your Money) 

One of the greatest financial aspects of buying a home is the ability to leverage your money. Simply put, leverage allows you to use a small down payment and financing to purchase a larger investment. For example, if you bought a $125,000 home with 10 percent down, you leveraged the $12,500 down payment to purchase an asset worth 10 times that amount!

Appreciation The benefits of leverage really become apparent with appreciation, or the rise in value of a property. Using the above example, say you were to live in the house for 5 years, and during that time property values in your area were to rise an average of 2.5 percent a year. Your home would then be worth over $141,000. By putting only 10 percent down, you get to enjoy the appreciation for the full amount!

Paying yourself In addition to the 10 percent down, you'll also have to make mortgage payments. But with each payment, a certain amount of money is being used to pay down the principal balance that you owe. This is called building equity. So in the event you sell your house, not only can you realize a profit from your leveraged money, you also have a chance to pay yourself back for the money you've put in over the years. No wonder so many people consider a home an excellent investment! 

TIP #2 (Take Full Advantage of the IRC Sec. 1031 Exchange Program) 

Given the current real estate market, there are many reasons why real estate investors might be examining their holdings. Opportunities abound. And in order to profit from them, its critical to know all about Internal Revenue Code Section 1031.

1031 allows real estate owners to defer capital gains tax when exchanging like kind property. This means you can sell a real estate property for another piece of real estate (for example, you can sell a condo and buy a shopping mall or vice versa without incurring capital gains taxes).


1031 allows real estate owners to exchange several properties for one.

1031 allows real estate owners to diversify by exchanging a property in one state for a property in another.