Section 1031 Exchange Rules

Section 1031 Exchange Rules

What Is a Section 1031 Exchange? The Rules & What You Need to Know

The first thing you need to know is that a Section 1031 exchange isn’t for everyone. By that, I mean there are many situations where doing one just doesn’t make sense. Having said that, let’s take a look at the definition and what it does.

Even though, a 1031 exchange can be very complicated, for many, there are major tax advantages to it. For instance, you may have a parcel of real estate that you want to sell, but in doing so, it will generate a big profit and a big tax bill. In this case, a 1031 exchange might be a good option for you. View full post…

Read More... Please comment

Tips for Buying Investment Property

Tips for Buying Investment Property

Credit tips for buying investment property

(BPT) – If you love the idea of being a landlord and don’t mind being on duty around the clock, buying investment property may be the wealth-building option for you.

Property values have enjoyed a steady increase over the decades. That’s why real estate has earned its reputation as a sound investment that builds wealth and credit.

Most people, however, don’t have the quantity of cash on hand to purchase a house or apartment building outright. Still, if becoming a landlord means taking out a 30-year mortgage, the monthly payments from the tenants should be enough to service the loan and build equity for you, while leaving some cash flow so you can maintain the property.

If buying investment property sounds like a step you’d like to take, here are some credit considerations every investor needs to know.

1. Be mindful of the inquiry stage

Once you decide to purchase an investment property, it’s important to do everything you can to make sure your credit score stays as high as possible until the loan is approved and signed. Your goal is to land the best possible interest rate because View full post…

Read More... Please comment