Posts Tagged ‘real estate investing’

Importance of Education

Friday, September 25th, 2009

By Jon Swire

If you have previously purchased your first home or even started looking at income properties, I am sure you remember when it first closed. I certainly do. It was a great feeling to sign those documents and truly own my first property, but many investors also feel unsure of what they are doing in terms of a long-term investment strategy. After all, you don’t know what you don’t know.

The key to success in any business is education and planning. The first step is to learn as much about your subject matter as possible, which will provide you with confidence when doing current and future deals. In this case, it’s learning to use 2-4 unit properties to make successful investments to secure your financial future.

I’m a big believer in education and that’s one of the reasons I teach at UCLA Extension and around the country, training folks on 2-4 unit properties. It is also why I launched my program and have now built the tools that every investor—no matter how experienced—needs to succeed in real estate investing.

I’ve had the opportunity to work with and train thousands of investors and real estate agents over the past few years and the most consistent feedback I hear is that the training they received provided them with the confidence they needed to work with income producing investment property. Remember, knowledge is power and the perfect first step to securing your future is to gain the knowledge so you can make the best investment decisions possible.
In addition to books, DVDs, webinars, and financial models to analyze investments, I also offer one-on-one coaching to help investors effectively sort through their real estate investment opportunities. Click here for more information on this proven real estate investment training program.

Investing In A Down Market

Tuesday, August 18th, 2009

By Jon Swire


In this edition of my video blog I discuss the current state of the market and the 3 reasons why now is a great time to invest in real estate. Not only is debt historically cheap but prices have fallen down to 2001 and below levels in many areas. And you remember the old adage, ‘buy low and sell high’. Finally, we’re predicted to go into a period of high inflation making it a great time to be a real estate owner. You’ll repay that cheap debt with deflated dollars while your rental income rises due to inflation.

So stop thinking about investing and get in the game. Take the first step towards creating the foundation of your future wealth.

The Next Step to Develop Your Real Estate Portfolio

Tuesday, May 5th, 2009

By Jon Swire

In this edition of my video blog I discuss how you can go from making $55,000 per year to being a multi-millionaire through real estate investing and the tools required. After all, for many of my clients, students and investors the hardest thing for them is changing their mindset and allowing themselves to believe that they can one day retire a millionaire. Revisit the information I shared with you in the Free Video and Chapter 1 of my book, the 30 year plan, which starts with a small investment today and generates over $100K per year in income by the time you retire. The key to being successful is getting started, developing a plan and being consistent.

Consistency over time will yield great results. So put a plan in place and set some goals for the next 1, 3 and 6 month periods to get started on your path to financial freedom.

Understanding 1031 Exchanges

Thursday, April 30th, 2009

By Jon Swire

Are you thinking about selling an investment property but aren’t sure what a 1031 Exchange is or how to do one. If so, check out my tips that will save you thousands of dollars in taxes.

1031 Tax Deferred Exchanges are one of the biggest benefits of real estate investing. This tax code allows you to sell a property today and defer taxes on the gains well into the future, thereby using those monies to purchase a larger property with a larger cash flow. 1031 Exchanges are one of the tools you have available to help you climb the Property Ladder and grow a portfolio that can generate enough passive income for you to retire on.

The key to a successful 1031 Exchange is to understand the rules that govern them. There are 3 key rules that you must follow and not run afoul of. If you don’t, you risk blowing your 1031 Exchange and having to pay the taxes today that you’ll owe on your gains.

The first rule is that you must replace debt with debt and equity with equity. This means that the total value of the mortgage on your new property, or replacement property as it’s called, must be equal to or greater than the mortgage on the property you sold. And, you must use all of the equity from the sale for the purchase of the replacement property.

Next, the proceeds, or funds, from your sale property must pass directly from your escrow company handling the sale straight to your accommodator. An accommodator is a 3rd Party Intermediary that will help you with the transaction and will escrow your funds for the time between when you close your sale property and when you complete the purchase of your replacement property. Remember, you can NEVER take possession of these funds, or you will void your exchange and have to pay taxes.

The final rule deals with timing. Within 45 days of the close of escrow of your sale property you must identify in writing to your accommodator what your anticipated replacement property is going to be. This is critical as it’s necessary to have on file in the event of a tax audit. And, you must complete your exchange within 180 days of the close of your sale property. This is also critical as it results in an invalid exchange if it doesn’t happen. It’s one of the easiest things for the IRS to monitor, so be careful with regards to your timing.

If you follow the above rules you’ll successfully complete your 1031 exchange and defer your tax bill sometime into the future. You can continue to do this from one property to the next over many years and even generations. Finally, make sure you speak with your accountant or tax professional before making a decision to sell. You want to be clear on the tax code and any other issues you may not be aware of.

Please visit http://theresnofreelunchinrealestate.com/ for more information, tips, and services.

Also visit http://theresnofreelunchinrealestate.com/news.html to view  complementary webinars on 1031 Exchanges and other investment topics!