I am totally focused on my client's
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ANTONY JEANTY
786- AND
Money-Making Information You'll Need to Succeed in Your Real Estate Investments.-- We are here to assist you! -- South
Florida Call a Realtor at: 786-
-- BEFORE YOU START INVESTING ANY MONEY:  LEARN THIS FIRST!
WELCOME TO: KNOWLEDGEFINANCIALGROUP.COM
When it comes to Real Estate, Knowing Your Stuff
is the Key to Success-------CALL  ANTONY AT:
786- --- Fortune Int.

Are you looking to buy or sell a home or other piece of property? The real estate
market is a difficult one, and should not be entered casually. With the right
information, you can make your venture a success, but all to often lack of
foresight and failure to do the proper exploration leave consumers in unfortunate
situations that are difficult to rectify. An educated consumer is a happy
consumer, and in no market is this truer than the property market. Before you
commit, learn as much as you can –
OR CALL A PROFESSIONAL
REALTOR AT: 305-784-6554-SOUTH-FL.--- FORTUNE
INTERNATIONAL REALTY whether you’re buying
or selling, you’ll never regret calling this number.

Real Estate Basics
To begin with the basics, let’s consider a few definitions. “Real Property” is legally
defined as “land and improvements permanently attached to the land.”
Improvements include everything from houses and garages to in-ground
swimming pools, but exclude portable items like mobile homes and tool sheds.
Also included in real property are substances beneath the land, such as gas,
minerals and oil.

There are many types of real estate, but most consumers will encounter only two:
single-family homes and commercial property. Commercial property may include
spaces used for retail, office, shopping, hotels, warehouses, manufacturing
facilities, apartment complexes, as well as vacant land zoned to be used for any
of those purposes. Aside from specialty properties like farms and industrial sites,
almost any property to be used for anything besides a single-family homes is
considered commercial.
SOUTH FLORIDA, FOR MORE INFORMATION
CALL ANTONY AT: 786- FOR A FREE
CONSULTATION!

Different rules govern transactions involving each kind of property, and it’s
important to know what you will encounter before you get started. The use of any
property is limited by zoning laws, which govern the purpose – for example,
housing, retail, or industrial – for which the real estate can be used. Zoning laws
also restrict the size and height of buildings, the portion of property that may be
used for parking, how far buildings must be set from the street and from each
other, and whether and what kind of hazardous materials can be stored there.
Public easement and right of way laws, which fall into the general category of
zoning, outline whether and which parts of private property must be reserved for
public use, usually in the form of sidewalks, electrical lines, sewer pipes, fire
hydrants and similar public goods. Laws differ from town to town, so if you are
looking at multiple locations, keep track of how each municipality’s rules will
affect how you can use your property.

Choosing a Real Estate Professional----- CALL:
786-
Although some people prefer to work on their own, it is usually good to hire a
licensed real estate professional if you are looking to buy or sell a house. You
may choose between a real estate broker, who is independently licensed to
review the entire market and show any house that suits your needs, and a real
estate agent who works for a specific company and is usually restricted to
showing properties in that company’s listings. Which one you choose will depend
on your needs, budget, and the number of real estate companies competing in
your area. If there are a large number of companies, you may do better with a
broker, but if there are only a few, you can save money by using an agent.
LET
ME BE YOUR REALTOR IF YOU ARE IN SOUTH FLORIDA.

No matter what type of professional you choose, there are a few things you should
consider before making your decision. How does the agent or broker intend to
market your house? How successful has he been in the past, particularly with
homes in your range and area? If he is an agent, what is his company’s track
record? What is the time limit on the contract you will sign, and can you break it
if you’re dissatisfied? Do you feel comfortable that he understands your needs
and will work hard to meet them? Recall that, above all, real estate agents are
salespeople, so be sure that you are confident that they are working with you as
well as for their employers. A great way to narrow down choices is to check the
Internet for websites that compare companies and agents in your area. You may
also want to talk with friends who have recently moved about their experiences
with local agents and brokers.

Buying and Selling: What You Need to Know------
CALL:  786-
When you are in the market to buy, your individual situation will determine
whether or not to hire a professional. You may find that you can do well enough
finding suitable listings without the help of an agent. However, if you live in a city
where good housing is scarce, you may want to engage someone to help you
discern the good from the bad. Real estate agents can also be very helpful when
it’s time to close the deal, sorting out what items are included with the house (for
example, appliances and furnishings) and working with the seller to divide costs
fairly.

Although it is possible to sell your home without professional help, but this should
be attempted with great caution. A real estate professional will help sort through
potential buyers to find people who are serious, work with to get a fair price for
your property, and be indispensable at closing time when it comes to dividing up
property taxes and other shared costs. In general, as a seller, you should expect
to run up against a number of expenses when you close on your house. These
may include excise tax (a tax levied on the seller of any property or item),
attorney and professional fees, property taxes, real estate commission, and fees
for survey, inspection, certification and other items, depending on the laws of the
state in which the house is sold.

Commercial Property: Buying and Selling-------
CALL: 786-
If you are looking to buy or sell commercial property, your best bet is to engage a
real estate attorney who can advise you on legal matters involving the transfer. As
with home purchases, it’s important to have the property inspected thoroughly
before committing to buy. You will also want to ensure that zoning laws permit
you to renovated buildings to suit your needs – for example, buildings that are
zoned as small retail outlets may not always be turned into restaurants;
warehouses may not necessarily be converted to apartment complexes. Real
estate lawyers will make sure that you know as much as possible about your
property before you buy.

Do Your Homework – You’ll be Amazed at the Difference it
Makes!
The best way to be successful in any real estate transaction is to come in with
your eyes open. Listed below or some top real estate websites that can help you
find what you're looking for today:

HomeGain: Selling Your Home? - Let local real estate agents know about the
home you'd like to sell so they can address your specific needs. They will send
you customized responses including their credentials, business experience, and
commission rates to compete for your business.
HomeGain: Buying A Home? - Let local real estate agents know about the home
you'd like to buy so they can address your specific needs. They will send you
customized responses including their credentials, business experience, and local
market knowledge to compete for your business.
Foreclosure Search: Simple Real Estate Secrets - Search foreclosures in the
USA. Includes bank foreclosures, court foreclosures, pre-foreclosures,
homeowners in bankruptcy, HUD homes, VA homes, government homes & more!
AS A PROFESSIONAL REALTOR, I'M MORE THAN HAPPY TO HELP.   JUST
CALL: 786- SOUTH FL.
Tax Advantages Of Real Estate-
Your rental income may be tax free if you do not receive net cash flow after expenses are deducted. This means that your mortgage is being paid down and you own more of the total value of the property (rather than just controlling
it), but you do not pay taxes on the money that is doing this for you. In addition to this, you can also pull out tax-free money by refinancing your loan if the property appreciates and the interest rates have fallen. Lastly, you may be
able to avoid paying taxes on the sale of a rental property if you sell it and reinvest the money in another property (called switching or tax-free exchange).  

Disadvantages of Rental Real Estate
For every upside, there is a downside, and rental real estate is no different. Rental real estate may expose you to the following:

Liability - What happens if a stair breaks under your tenant's feet? With the increase in frivolous lawsuits and the unquantifiable nature of "emotional distress", liability can be a scary thing. Providing someone with shelter in return for
money puts you and the tenant in a relationship where both parties bear responsibility. You have to be certain that the property you are renting out meets all government codes.

Unexpected Expenses - What do you do when you pull up the basement carpet and find a crack that opens onto the abyss? It is impossible to prepare for every expense related to owning rental property, so there are bound to be some
unexpected ones. Things such as boilers, plumbing and fixtures often need to be replaced and are not prohibitively expensive. However, faulty wiring, bad foundations, compromised roofing and the like can be very expensive to
repair. If you can't find a way to pay for repairs, you will be left without a tenant and with the grim prospect of selling the property at a significant discount. Also, as building codes evolve over time, lead paint, asbestos, cedar roofing
tiles and other materials that passed inspection in the past may be reevaluated to your disadvantage.

Bad Tenants - No one wants to have to use a collection agency to collect overdue rent. Unfortunately, almost every landlord has a story that involves police cars escorting his or her tenant out of the property - erasing all hopes of
getting the five months' worth of overdue rent. Bad tenants can also increase your unexpected expenses and even hit you with a lawsuit.

Vacancy - No money coming in means that you have to make the payments out of your own pocket. If you have an emergency fund for the rental property, you will be able to survive long vacancies with little trouble. If you don't have
one, you may find yourself scrambling to pay the rent to the harshest landlord of all - the bank.
Tips
Minimizing the disadvantages of owning real estate is actually quite simple. While you won't be able to eliminate the pitfalls completely, following these guidelines will take the teeth out of their bite.

Keep Your Expectations Reasonable - Have the goal of positive cash flow, but don't expect to be purchasing a new yacht at year's end. If you keep your expectations in check, you won't be tempted to jack up the rent and push out
good tenants.

Find a Balance between Earnings and Effort - Are you "hands on", or should you work with a property management firm? Current income doesn't seem so great if you are putting in another full-time shift working on your rental
property. There are property management firms that will run your rental property for a percentage of the rental income.

Know the Rules - Federal and state laws outline your responsibilities and liabilities, so you can't claim ignorance when something happens. You will have to do some reading; nevertheless, it is better to spend 20 hours in the library
than in the courtroom.

Have the Property Inspected - One of the best ways to avoid unexpected expenses is to have the property inspected by a professional before you buy it.

Make Sure Your Leases Are Legal - If you make a mistake on the lease, you will find it more difficult to litigate if a tenant violates the terms.

Take the Time To Call References and Run Credit Checks - Too many landlords rush to fill a vacancy rather than taking the time to make sure the prospective tenant is a better option than an empty property. If you have time, you
may want to drive by a prospective tenant's current living space - that is what your property will probably look like when that tenant lives there.
Join the Landlords' Association in Your Area - Joining an association will provide you with a wealth of experience as well as sample leases, copies of laws and regulations, and lists of decent lawyers, contractors and inspectors. Some
associations may even allow you to join before you buy a rental property.

Make Friends with a Lawyer, a Tax Professional and a Banker - If you find that you like owning rental properties, a network including these three professionals will be essential if you want to increase your holdings.

Tips For The Prospective
LandlordS AND INVESTORS

Investing in rental real estate looks like a great idea on
paper. You just buy a place in a nice area, find
tenants and let the cash roll in. However, there are
some matters you have to consider before buying a
property and putting a "for rent" ad in the newspaper.
Here we provide a rundown of the pros and cons of
owning rental property and give you a few tips on how
to turn a profit as a landlord.


Advantages of Rental Real Estate
The advantages of rental real estate are quite
substantial. One that is not listed below is the fact that
when you own rental real estate, you own a tangible
asset. You can paint it when you're happy with it and
throw rocks at it when you're not. Shares of Enron, by
contrast, are much harder to hit with a stone. (To learn
more, see Diversification Beyond Equities.)

Many people who feel uncomfortable investing in
financial instruments have no qualms about investing
in real estate. This is a psychological distinction, as a
bad stock and a bad rental property are equally
capable of losing money, forcing you to sell for a loss.
That said, here are the advantages that show up on
paper:

Current Income - This refers to the rent money that is
left over after the mortgage and related expenses have
been paid. Current income is basically monthly cash
that you did not have to work for - your property
produces it for you.

Appreciation - This is the increase in value that
properties generally experience as time passes.
Appreciation is not guaranteed. However, if you own a
property in a stable area (cities), the property will likely
increase in value over the years. Even properties in
sparsely populated and less desirable areas may
appreciate due to general inflation. (For more on this,
see the Inflation Tutorial.)

Leverage - Rental properties can be purchased with
borrowed funds. This means that you can purchase a
rental property by putting down only a percentage of
the total value. Essentially, you can control the whole
property and the equity it holds while only paying a
fraction of its total cost. Also, the property you
purchase secures the debt rather than your other
assets. You may lose the rental property, but you
shouldn't lose your own home.
REAL ESTATE INVESTMENT

Investing In Real Estate

Buying real estate is about more than just finding a place to call home. Investing
in real estate has become increasingly popular over the last fifty years and has
become a common investment vehicle. Although the real estate market has plenty
of opportunities for making big gains, buying and owning real estate is a lot more
complicated than investing in stocks and bonds. In this article, we'll go beyond
buying a home and introduce you to real estate as an investment.


Basic Rental Properties
This is an investment as old as the practice of landownership. A person will buy a
property and rent it out to a tenant. The owner, the landlord, is responsible for
paying the mortgage, taxes and costs of maintaining the property. Ideally, the
landlord charges enough rent to cover all of the aforementioned costs. A landlord
may also charge more in order to produce a monthly profit, but the most common
strategy is to be patient and only charge enough rent to cover expenses until the
mortgage has been paid, at which time the majority of the rent becomes profit.
Furthermore, the property may also have appreciated in value over the course of
the mortgage (according to the U.S. Census Bureau, real estate has consistently
increased in value since 1940), leaving the landlord with a more valuable asset.
There are, of course, blemishes on the face of what seems like an ideal investment.
You can end up with a bad tenant who damages the property or, worse still, end up
having no tenant at all. This leaves you with a negative monthly cash flow,
meaning that you might have to scramble to cover your mortgage payments. There
is also the matter of finding the right property - you will want to pick an area where
vacancy rates are low (due to demand) and choose a place that people will want
to rent.

Perhaps the biggest difference between a rental property and other investments is
the amount time and work you have to devote to maintaining your investment.
When you buy a stock, it simply sits in your brokerage account and (hopefully)
increases in value. If you invest in a rental property, there are many responsibilities
that come along with being a landlord. When the furnace stops working in the
middle of the night, it's you who gets the phone call. If you don't mind handyman
work, this may not bother you; otherwise, a professional property manager would be
glad to take the problem off your hands - for a price, of course.

Real Estate Investment Groups
Real estate investment groups are sort of like small mutual funds for rental
properties. If you want to own a rental property, but don't want the hassle of being a
landlord, a real estate investment group may be the solution for you. A company
will buy or build a set of apartment blocks or condos and then allow investors to buy
them through the company (thus joining the group). A single investor can own one
or multiple units (self-contained living space), but the company operating the
investment group collectively manages all the units - taking care of maintenance,
advertising vacant units and interviewing tenants. In exchange for this
management, the company takes a percentage of the monthly rent.

There are several versions of investment groups, but in the standard version, the
lease is in the investor's name and all of the units pool a portion of the rent to
guard against occasional vacancies, meaning that you will receive enough to pay
the mortgage even if your unit is empty. The quality of an investment group
depends entirely on the company offering it. In theory, it is a safe way to get into
real estate investment, but groups are vulnerable to the same fees that haunt the
mutual fund industry. Once again, research is the key.

Real Estate Trading
This is the wild side of real estate investment. Like the day traders who are leagues
away from a buy-and-hold investor, the real estate traders are an entirely different
breed from the buy-and-rent landlords. Real estate traders buy properties with the
intention of holding them for a short period of time (often no more than three to
four months), whereupon they hope to sell them for a profit. This technique is also
called flipping properties and is based on buying properties that are either
significantly undervalued or are in a very hot market.

Pure property flippers will not put any money into a house for improvements - the
investment has to have the intrinsic value to turn a profit without alteration or they
won't consider it. Flipping in this manner is a short-term cash investment. If a
property flipper gets caught in a situation where he or she can't unload a property,
it can be devastating because these investors generally don't keep enough ready
cash to pay the mortgage on a property for the long term. This can lead to
continued losses for a real estate trader who is unable to offload the property in a
bad market.

A second class of property flipper also exists. These investors make their money by
buying reasonably priced properties and adding value by renovating them. This
can be a longer-term investment depending on the extent of the improvements.
The limiting feature of this investment is that it is time intensive and often only
allows investors to take on one property at a time.

REITs
Real estate has been around since our cave-dwelling ancestors started chasing
strangers out of their space, so it's not surprising that Wall Street has found a way to
turn real estate into a publicly-traded instrument. A real estate investment trust
(REIT) is created when a corporation (or trust) uses investors' money to purchase
and operate income properties. REITs are bought and sold on the major
exchanges just like any other stock. A corporation must pay out 90% of its taxable
profits in the form of dividends to keep its status as an REIT. By doing this, REITs
avoid paying corporate income tax, whereas a regular company would be taxed its
profits and then have to decide whether or not to distribute its after-tax profits as
dividends.

Much like regular dividend-paying stocks, REITs are a solid investment for stock
market investors that want regular income. In comparison to the aforementioned
types of real estate investment, REITs allow investors into non-residential
investments (malls, office buildings, etc.) and are highly liquid - in other words, you
won't need a realtor to help you cash out your investment.

Leverage
With the exception of REITs, investing in real estate gives an investor one tool that
is not available to stock market investors: leverage. If you want to buy a stock, you
have to pay the full value of the stock at the time you place the buy order. Even if
you are buying on margin, the amount you can borrow is still much less than with
real estate. Most "conventional" mortgages require 25% down. However,
depending on where you live, there are many types of mortgages that require as
little as 5%. This means that you can control the whole property and the equity it
holds by only paying a fraction of the total value. Of course, your mortgage will
eventually pay the total value of the house at the time you purchased it, but you
control it the minute the papers are signed.

This is what emboldens real estate flippers and landlords alike. They can take out a
second mortgage on their homes and put down payments on two or three other
properties. Whether they rent these out so that tenants pay the mortgage or they
wait for an opportunity to sell for a profit, they control these assets despite having
only paid for a small part of the total value.  

Conclusion
We have looked at several types of real estate investment. However, as you might
have guessed, we have only scratched the surface. Within these examples there
are countless variations of real estate investments. As with any investment, there is
much potential with real estate, but this does not mean that it is an assured gain.
As with any investment, make careful choices and weigh out the costs and benefits
of your actions before diving in.
REAL ESTATE INFO
No matter what's happening in the
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MORTGAGE HOUSE: HOW AND WHERE TO FIND MONEY
TO BUY A PROPERTY? Financing your real estate
investment; easy
steps, fast & simple...
How to Invest in Real Estate...Buying real estate is a popular way to invest, and—if you do it right—you can make some real
money! You know why? Because property is valuable. As Mark Twain put it, “Buy land.

They’re not making it anymore.” Studies show that most Americans think real estate is a great long-term investment.1 So, what holds people
back? Let’s be honest: Investing in real estate is a big commitment that requires a lot of time and money. And it’s important to fully understand
how to invest in real estate before you dive in.--------
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How to Invest in Real Estate ?There are many ways to invest in real estate with varying amounts of money, and varying degrees of
time commitment, capital, investment horizons, risk, and return potential. Some earn income and appreciation, and some only earn income. Real
estate investment strategies fall into two groups: active and passive investments.,..
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REAL ESTATE INVESTMENT:
Active Real Estate Investing (Doing it Yourself) Active real estate investing necessitates significant
personal knowledge of real estate and hands-on management or delegation of responsibilities. Active investors can work as real estate
investors part-time or full-time, depending on the number of their investment properties and the nature of those investments --
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Passive Real Estate investing (The Hands-Off Way) Passive real estate investing offers opportunities to invest in real estate for
everyone: those with extensive real estate and financial knowledge and those with limited or no expertise. Passive real estate investors typically
provide only capital and allow professionals to invest in real estate on their behalf.

As with stocks and bonds, they’re only responsible for their own investments and not the fund at large. In general, passive real estate
investments offer a greater potential for passive income than most active real estate investments, which typically require more hands-on
management.

Real estate investing is the purchase, ownership, lease, or sale of land and any structures on it for the purpose of earning money. Real estate
generally breaks down into four categories: residential, commercial, industrial, and land.
Active Real Estate Investing (Doing it Yourself)------------
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Types of Real Estate Investing ...Real estate investing comes in different shapes and sizes. I want
you to understand your options so you can make the best decision for your situation. Here are the most common ways people invest in real
estate.Home Ownership We need a mindset shift in our culture. Lots of people have the ambition to buy a home, but I want you to reach higher.
The goal is to own that bad boy.---
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Real Estate Investing?--------Residential real estate:
Residential real estate consists of single-family homes, multi-family homes, townhouses, and condominiums. Occupants may rent or own the
properties that they live in. Homes larger than four units are generally considered commercial property. ------
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Commercial real estate: Commercial real estate is property that is used for the purpose of business. Commercial real estate is classified
as office space, retail space, or multi-family homes. Some examples of commercial real estate properties include business offices (office),
restaurants (retail), and large apartment buildings (multi-family). -------
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Industrial real estate: As the name suggests, these properties serve an industrial business purpose. Some examples include shipping or
storage warehouses, factories, and power plants.------
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Land: Land generally consists of undeveloped property with no structures on it. There are limited ways to earn money from land as an
investment. Landowners can earn money through land usage, such as agriculture---------
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In addition to property types, there are three main ways to make money from real estate investments: interest from loans, appreciation, and rent.  
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Interest from Loans (or, in the parlance of real estate, “debt”): A real estate loan is an arrangement where investors lend money to a
real estate developer and earn money from interest payments on the principal of the loan.

Debt investing can provide regular cash flow for an investor.
Depending on the number of lenders, there can be one or several types of debt within the capital stack of loans. Types of debt include senior
debt, junior debt, and mezzanine debt. Debt can also be secured or unsecured.  
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Appreciation: As with the ownership of any equity, real estate ownership gives an investor the ability to earn money from the sale of that
equity.
The appreciation, or increase in the value of a property over time, represents the potential profit available to an investor when that property is
sold.  Unlike debt investments or rental income, a sale provides one large, single return. Equity can generally be categorized as preferred equity
or common equity.   
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Rent: A property can be leased by owners to earn income from rental payments. As with the income generated from a debt
investment, rental income can provide a regular income stream.

Depending on how a property owner manages their real estate (whether independently or through a hired property manager), they may keep all
of their earnings or share earnings with a property management company. Rental payments may offer the potential for passive income
depending on the investment method.  

Knowledge Financial Group - WARNINGS: Each category of real estate and type of investment carries its own set of risks and rewards.
Regardless of how you invest in real estate, it’s important to choose investments wisely by testing the strengths and weaknesses of
opportunities.=========

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Rental Properties Owning rental properties is a great way to create additional revenue—it could easily add
thousands of dollars to your yearly income. Then, if you decide to sell, you could earn a nice profit. It all depends on what type of property you
buy and how you manage it. The key is to always buy in a good location that has potential for growth. Hear me on this:

While rental properties are a great investment option, being a landlord has its challenges. You’ll face seasons when someone doesn’t pay rent or
you’re in between renters. You also have to consider the additional expenses of maintenance, repairs and insurance. Now you have to deal with
the 3 T's = Toilet, Tenant, and Trash.----------
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How to Make Money Investing in Real Estate ?You can make money from real estate properties two different ways:
appreciated value of the property over time and cash flow from rental income. We’ll break all that down in a bit. But before we jump in, I want to
make something crystal clear: You should pay for investment properties with 100% cash.

Don’t even think about getting into debt for a rental property, people! A 100% down payment takes debt out of the equation, lowers your risk,
and sets you up to make more money a lot sooner. Appreciated Value Despite the ups and downs of the real estate market, most properties
increase in value over the long term.

The fancy investing word for an increase in value is called appreciation. And the key to buying real estate that
appreciates is location. You want to buy in a part of town that’s on an upward climb in terms of value. Also, buy at a low price and ride out any
downturns in the market until your property has appreciated. Having a fully funded emergency fund (three to six months of living and repair
expenses) will give you the upper hand while you wait for the right time to sell.----------
============

Rental Income Generating income from rentals is the top reason why investors purchase a property. 2 Once you’ve
secured renters, owning and renting out property is a great way to make additional income without a lot of effort.Other than needing cash on
hand to cover any repairs or maintenance, your part is pretty hands off.

There’s even less for you to do if you hire a property management company—but that will cut into your profits. Regardless, you make money
simply from being the owner of the property. Keep in mind, though, that dealing with renters can be frustrating and time-consuming. Do your
homework before you allow someone to rent your property
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Tax Implications of Real Estate Investing? Okay, now we’re getting to the fun part (yes, math is fun, people. Y’all hush.) Even if you
live to crunch numbers, taxes for real estate properties are complicated. So my first piece of advice is this: Get a tax pro on your team. They’ll be
able to help you understand the impact of your investing decisions and keep you up to date on tax code changes.In the meantime, here are the
most common taxes you’ll run into when it comes to investing in real estate.Capital Gains

Tax When you sell an investment property after owning it for at least a year, you’ll pay capital gains tax on the profit.
Let me put that phrase in plain English for you: capital refers to assets (in this case, cash) and gains are the profits you make on a sale.
Basically, if you bought a piece of property and sold it for a profit, you’ve made capital gains. Makes sense, right?Here’s an example:

Let’s say you buy a property for $100,000. Years later, you sell the property for $160,000. That’s a gross profit of $60,000.Of course, you also paid
a real estate commission fee when you bought that property. Good news:

You can deduct that from your capital gains. Let’s say the fee was $9,600 (6% of the property’s price)—that brings your capital gains down to
$50,400. How is that $50,400 taxed? It depends on your filing status and your taxable income for the year.

Most taxpayers will end up paying a capital gains rate of 15%, but some higher-income folks will pay a 20% rate—while lower-income earners
won’t pay any capital gains taxes at all.

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Short-Term Capital Gains Tax .. If your taxable income was $100,000 in 2020, you would pay 15% tax on your capital gains. In this
example, 15% of $50,400 means you’d pay $7,560 in taxes. What about a short-term investment like a house flip? When you’ve owned the
property for less than a year, your profits are taxed according to short-term capital gains. But if you sell at any point beyond one year, those
profits will be taxed at the long-term rate.-------

What’s the difference between short- and long-term capital gains tax? Long-term capital gains tax uses your taxable
income to determine how much you owe on just the profit you made from the sale of your investment property. Short-term capital gains tax is
even simpler. The profit you make from a short-term investment is counted as part of your overall annual income and will be taxed according to
your personal income tax bracket.

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