| I invite you to take the next few minutes
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| | increase the value of your new $110,000
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| to learn the truth about the real estate
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| | property?It is amazing what a cleanup, a
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| market, how it compares to other methods
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| | little landscaping and a paint job can do
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| of building assets and why it is such a
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| | to increase the value of a property. Only
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| lucrative form of investing. Many
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| | a few hundred dollars well spent can
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| potential investors will say, 'I need to
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| | result in huge value gains in Orlando
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| get into the Florida Investment Property
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| | Investment Property. Your $110,000
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| market', especially taking into account
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| | property with a little effort could
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| current stock market fluctuations and the
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| | easily be worth $115,000, $120,000 or
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| HOT market for investment properties, but
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| | more virtually overnight! Do you have to
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| simply don't know the facts about Orlando
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| | do any of this work yourself? Absolutely
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| property investing and how to use sale
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| | not! If you like to do that sort of thing
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| and leaseback method of property
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| | then have at it, but if not, simply hire
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| management.When is the last time your
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| | it done and accept a little lower net
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| financial advisor or stockbroker tried to
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| | gain.Reason 4:
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| convince you that moving a portion of
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| | Superior Tax Position: The tax code in
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| your assets into the Florida Investment
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| | the United States is geared to reward
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| Property market might be a good idea?
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| | Investors who make housing and other
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| Never Right? The 'why' is simple. They
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| | property available to the population.
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| don't earn commissions when you buy
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| | When you invest in stocks, you are taxed
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| Florida Investment Property. It is also
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| | at some of the highest rates in the tax
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| likely that you have probably never had
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| | code. When you invest in Orlando
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| an 'apples to apples' comparison of
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| | Investment Property, you put yourself in
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| stocks versus Florida Investment Property
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| | one of the best tax positions in the
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| quite like the one you will see
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| | business world. Remember the wealthy that
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| here.Reason 1:
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| | hold substantial portions of their assets
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| Leverage: Banks will not typically loan
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| | in Orlando Investment Property? Tax
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| money to buy stocks. Banks will however,
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| | advantages are one of the main reasons
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| compete fiercely to loan money to buy
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| | this is true.Continuing with the above
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| Florida Investment Property. Your first
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| | example, let's say that you have
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| question should be, 'why is that'? It has
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| | completed your 'deal' with the $10,000
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| to do with risk management, which we will
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| | invested with a 90% mortgage to purchase
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| discuss later. The fact that banks want
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| | the $100,000 property that appraised for
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| to loan you money to buy Florida
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| | $110,000 (because you 'found a good
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| Investment Property creates a situation
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| | deal'), which you improved to say,
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| which we will call LEVERAGE.Let's assume
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| | $115,000 by spending another $1000 on
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| that you have $10,000 to put into some
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| | cleanup etc. Assume that one year passes
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| type of investment. If you choose to buy
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| | and the Orlando Investment Property
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| $10,000 worth of stocks, you will own
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| | market grew by 6%, your property would
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| exactly $10,000 worth of stocks. Pretty
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| | now be worth $122,000. So far, so good
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| straight-forward. However, suppose you
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| | right? If you are like most people, you
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| choose to invest that $10,000 into
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| | may want to spend some of your hard
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| Florida Investment Property using a 90%
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| | earned money.Let's do the numbers. You
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| mortgage (which in many cases can go up
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| | have a mortgage at current rates that
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| to 95-100% mortgages in today's market),
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| | started at $90,000 and after a year worth
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| you will own $100,000 worth of Florida
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| | of payments (the majority of which are
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| Investment Property. If both of your
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| | tax deductible) you still owe
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| investments were to appreciate by 10%,
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| | approximately $89,000. However, your
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| your actual gain with your stocks would
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| | property is now worth approximately
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| be $1000 where your actual gain with
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| | $122,000. If you were to refinance at 90%
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| Florida Investment Property would be
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| | once again, you would take out a new
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| $10,000. That equates to an actual 10%
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| | mortgage of approximately $110,000. This
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| return on investment vs. a 100% return on
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| | will leave you with approximately $21,000
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| investment. That's what we call
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| | in cash in your pocket. Now, the BIG
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| leverage.Leverage: Florida Real Estate
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| | question; do you have to pay tax on that
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| vs. Stocks
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| | money? Absolutely Not! You have not sold
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| The traditional argument against Florida
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| | the property or realized a 'capital
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| Investment Property Investing (mainly
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| | gain'. You have simply borrowed money
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| from Stock Brokers) has always been 'I
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| | from yourself. You are able to do what
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| can get an average of 10% from stocks
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| | you wish with that money, free from any
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| with little effort so why would I invest
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| | tax whatsoever. Obviously, a good
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| in Orlando Investment Property that only
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| | strategy might be to purchase two more
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| appreciates 6-7% per year'? This
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| | properties just like your first
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| point-of-view is not taking leverage into
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| | deal!Also, we have not taken into account
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| account.If you take the above statement
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| | the fact that ALL of your interest
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| to be true and compare the REAL numbers,
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| | payments on this property are tax
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| the stock investment gained 10% of the
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| | deductible. In addition, you are also
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| initial $10,000 value (or $1000) and the
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| | able to depreciate the property itself
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| Orlando Investment Property investment
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| | and all of its contents for additional
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| gained 6% of the initial $100,000 value
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| | tax advantages if you choose to do
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| (or $6000). That is still an actual
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| | so.Let's be fair and compare the Orlando
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| return of 10% versus 60%. It is not hard
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| | Investment Property tax position with the
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| to see which investment provides a
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| | stock scenario. Assume that the $10,000
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| greater immediate return on investment.
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| | initial stock investment grew by 10% in
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| Additionally. these numbers do not take
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| | the first year, creating a gain of $1000
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| into account any income from your
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| | and you wish to access it. If you draw it
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| property during the course of the year,
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| | out, you will pay from 20-28% (or higher)
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| or the substantial tax advantages to
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| | in capital gains tax in order to have
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| owning property, which we will discuss
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| | access to this money. This reduces your
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| later.Reason 2:
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| | net gain to $800 (actual 8%) or less,
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| Value: As we mentioned previously, if
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| | depending on your tax situation. Compare
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| you invest $10,000 into purchasing
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| | that to Orlando Investment Property and
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| stocks, you own $10,000 worth of stocks
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| | you are beginning to get the
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| (a fairly obvious point). If you invest
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| | picture.Reason 5:
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| $10,000 into purchasing Orlando
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| | Limit Your Exposure To Risk
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| Investment Property using the leverage of
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| | Risk Management: Do you remember at the
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| a 90% mortgage, you own $100,000 worth of
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| | top when we said that banks would compete
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| Orlando Investment Property right? Well,
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| | fiercely to loan you money on Orlando
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| only if you paid retail for your
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| | Investment Property? The answer to the
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| property. Any savvy investor will tell
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| | 'why' is very simple. Low Risk. Banks
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| you that there are excellent deals to be
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| | incur little if any risk when loaning
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| had in Orlando Investment Property, you
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| | money on Orlando Investment Property due
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| just have to find them.What if you
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| | to the steady, solid growth rate of the
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| purchased a $100,000 property that
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| | property market, as well as the fact that
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| happened to be worth $110,000 the day you
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| | if you default on your payments they will
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| bought it? Does it happen? The answer is
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| | simply sell the property to somebody
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| yes, all the time. If you have your eyes
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| | else. This is in direct contrast to the
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| open and are willing to 'go through the
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| | volatile stock market, which can vary
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| numbers' to find good deals, they are all
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| | daily with sharp increases and decreases
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| around you. You may be asking yourself,
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| | in value. Furthermore, banks realize that
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| why would anybody sell a $110,000
| |
| | a property isn't going anywhere, whereas
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| property for $100,000?Value: Making money
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| | many investors know all too well about
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| when you buy.
| |
| | .com and other types of companies that
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| The reasons are endless as to why a
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| | were there yesterday and gone today.This
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| quick sale is desired, but just to name a
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| | is all not to say that Orlando Investment
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| few: job relocation, divorce, an estate
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| | Property markets don't go down from time
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| is being settled or maybe a current
| |
| | to time, however the dips are much less
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| appraisal on the property simply wasn't
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| | dramatic than that which can take place
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| done prior to selling. By 'finding this
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| | in the stock market, proven out by the
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| deal' you have accomplished two
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| | banks' willingness to loan money on
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| things.You have added $10,000 to your
| |
| | property.Reason 6:
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| asset column in the form of equity.You
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| | Protecting your peace of mind.
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| have created additional LEVERAGE for
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| | Finally, Now that we understand the
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| yourself as the value of your property
| |
| | value of leverage and risk management we
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| increases (a 6-10% gain on $110,000 is
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| | realize that a 6% Orlando Investment
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| better than a 6-10% gain on $100,000!)
| |
| | Property gain 'beats the pants off' a 10%
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| Remember, you make money in Orlando
| |
| | stock gain in actual return on investment
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| Investment Property when you buy, not
| |
| | by a wide margin (approximately 50%, not
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| when you sell.Reason 3:
| |
| | taking into account several factors that
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| Control: Let's take our assumption one
| |
| | can increase this number such as tax
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| step further. When you buy your $10,000
| |
| | advantages, income on property etc.)
|
| worth of stocks, what can you do to
| |
| | Owning good, solid Orlando Investment
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| increase its value? If we follow the
| |
| | Property allows you to sleep at night, or
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| previous assumption, you have invested
| |
| | go on an extended vacation without
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| $10,000 using a 90% mortgage to purchase
| |
| | worrying about your asset column. This is
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| a $100,000 property that has an actual
| |
| | directly opposed to holding a substantial
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| value of $110,000 because you 'found a
| |
| | percentage of your assets in stocks.
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| good deal'. So what can you do to further
| |
| |
|
