Investment Information

Investment Information

Current and future real estate investments should accomplish your goals and objectives!

Wealth Building:

If the goal is to buy and leverage for multiple investments each year, be sure a plan is in place for each purchase. Include timing, type of property, after-tax rate of return (yield) expected, and future values of each investment. Project in the plan how to accomplish it, what you want to achieve and when you want to achieve it. Put the plan in writing and follow it. Be sure to work with a Broker that knows how to work with you to determine your after tax investment rate, cash flow after taxes, and investment performance summary. A skilled investment property broker and a well versed accountant should be part of your investment team.

College Education:

Many sharp investors buy a property, such as a single family residence, for each child when they are young, and use it to fund their college education. When the child is ready for college, they refinance the property to use the equity they have earned over the years, or sell the property to fund the education. (Sometimes the income flow from the rents received can be just the right amount of assistance needed, depending on the investment). If this is your objective, have a meeting with your real estate broker to determine the type of investments that would be of most interest. Let your broker interview you to determine your personal situation and needs. Once he/she has your requirements in mind, they can prepare an investor analysis for you.

Retirement Income:

If you currently own real estate, or other investments, and want to slow the work pace down a bit, your objective may be to find real estate investments that will pay the highest yield and most income each month. In this case, you might have a lower tax rate and larger equity in your home or investment properties. This is the time to analyze if your money is currently in the right investment. If this is the focus for you at this time contact a well versed real estate broker that understands investment properties and calculations and see if you sit in the best position you could be at this time. Your broker will be able to work directly with your accountant help you determine the best options.

High income earners (high tax bracket):

This group of investors may want to invest in properties that produce a high after tax yield, but don’t currently add to taxable income. If this is the category you fall into, set up an appointment with a real estate broker that knows about investment properties. After you discuss your specific situation, he/she can find the right investment for you, and prepare an analysis for you and your accountant to help accomplish your objectives in the investment.

Current real estate holdings:

Do you know if your current real estate investments are performing for you as they should? What is your after tax rate of return or yield? Have you depreciated the property to the end of its usefulness for you? Could you exchange from a single family to a multi-family residence or commercial property and improve your portfolio? If you don’t know the how to determine the answers to these questions, you might want to contact a real estate investment broker and/or an accountant that can help you. Many people own real estate, but may not know if it’s really performing to its highest usefulness for them. It might be worth a look to see if you could be doing better than you currently are.

Investment Specialist

Call Daisy Borba for more information on creating and managing wealth through real estate investing and property management. Her experience in investment property is extensive. She personally owns investment properties in the Tri-Valley areas in Alameda and Contra Costa Counties. Please call our office for a free no obligation appointment to discover our specialized knowledge and award winning customer service at 925 200-6922.

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