Real Estate Investing

Investing in Real Estate is one way for wealth building.  There are several ways of investing in real estate.
  • REITS-Think of this as investing in Mutual Funds.
  • Investing with people that you know and forming a LLC.
  • Investing  by yourself with 20-25%.
  • Using your IRA and converting it to a Self Directed IRA.

Some of the benefits in investing in real estate.
  • Cash Flow-this is one of the most evident benefits of investing in real estate. Cash flow is the income left over after paying the mortgage and other expenses.
  • Appreciation-historically real estate values have increased over time.
  • Leverage-Unless to pay all cash, you are using the banks money to leverage your investment. 
  • Taxes & Deductions-One of the benefits in investing in real estate is that you can deduct expenses when renting the property.
  • 1031 Exchanges-For information on this click here.
  • Depreciation-This is another tax benefit of owning real estate investments and is how you recover the cost of income producing property. 

There are different types of investors. 
  • The first time investor-they have saved up enough down payment or they are using their IRA.
  • Move-up investor-they will be using their current home as a rental and buying another home to move into.
  • Portfolio Investor-they either are buying investments with a group (LLC) or they have been investing for years and are holding onto the properties.
  • Rehab & Resell-Known as flips. They buy properties in need of repairs and fix them up and resell immediately for a profit.

Whether you are trying to buy your first rental or your an experienced investor, I am here to help. Feel free to contact me if you have any questions about real estate investing (916) 791-9073.

Buying Real Estate investments with your IRA (Self Directed IRA) is a great way to start. For questions on the self directed IRA SelfDirectedIRARealEstateFAQs.docx.

Like anything else in life there can be pitfalls in real estate investing.
  • Emotion vs Logic-the numbers have to make sense.
  • Overpaying.
  • Over Leveraging-I have seen people lose everything because of this. It's better to own 1 or 2 properties and having a good cash flow compared to owning 5-6 and having a negative on them.
  • Management Problems-I recommend finding a good property manager.
  • Getting advice from the real estate agent only-you need to have a sit down with your CPA or tax attorney and be sure this is right for you.
  • Bad Tenants-everyones worst nightmare.
  • Trying to get rich quick-real estate investing is meant for a long term investment. 3-5-10-15 yrs.
When buying real estate investments be sure to have some kind of game plan, what are your goals and what's your exit strategy.

Real Estate Investing- Power Point Presentation RealEstateInvesting.ppt.

Curious about Rental Values in the Roseville Ca Area

Ken Brazil
Ken Brazil
2998 Douglas Blvd., #125 Roseville CA 95661