While you can fix and flip properties to pay off debt or build up equity, you are giving your profits away. If you buy to keep, at least for a little while you can make so much more per property:
- Increase in value when you fix it up or solve problems of the distressed seller when you buy.
- Rent it out while you hold it and your renter pays down your debt on the property.
- The property is generally going to appreciate in value
- And the big one is all the tax benefits that come from owning the property.
There are a lot of tax benefits, but talk to Eric Grannemann and he will tell you the one he uses a lot is the 1031 Exchange Tax Benefit. Starting with one property, renovating it, renting it out and then selling it a year or two down the road can generate a great profit between what he paid and what he owes between the appreciation and the tenant pay down. But if that profit is $100k, he gets to keep all that profit and transfer it into a bigger and better property if he uses a 1031 exchange. If he flips it for the cash . . . then Uncle Sam will take his share . . quite often 30 to 40% or more of the entire profit.
We have found that numurous MAREI members go to Eric for advice on how to get started or how to put together a deal . . . we wanted to let the entire membership benefit from Eric's vast knowledge, so we have asked him to join us in November to help educate us all!.
Agenda
5:00 Set up Time
6:00 Vendor Expo
6:00 Networking Time
7:00 Guest Host with Monthly Announcements
7:20 Guest Speaker
8:50 Networking & After Hours
Members:
Free For Members
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