Did you know that, today, it is wiser to invest in real estate than it is to get into stocks? Not only can real estate investing land you the home of your dreams, as reputable owner Stephen Dowicz will attest, but it might help you get into a new office for job-related reasons. If you are largely unfamiliar with real estate investor, you have nothing to fear. Here are 4 things that you should know in order to get the most out of this endeavor.
When it comes to real estate investing, having a plan is crucial. If you have a certain goal in mind, you must ensure that you have the proper time and money in place so that it may be reached. Will the time and money you commit ultimately be worth it? Maybe you will have to make adjustments. If you can set up a plan, particularly one that you can follow day after day, you will not have to worry about your goals being unmet.
"Location, location, location," is a typical quote in real estate investing, but its truth cannot be denied. Not only must you purchase a piece of property that looks nice, but you must ensure that it is located in a desirable spot. For instance, if you live on a street that does not have the best homes, investing in the one home that positively stands out can build equity. When investing in real estate, location matters for reasons like this.
Third, tax benefits should be looked into. One of the best examples, according to Stephen M. Dowicz, is the depreciation write-off. What this does is allow an investor to write off the depreciation as a tax reduction when making a purchase. Also, the IRS regards real estate investments as business, which means that more deductions have to be done. This is a situation where hiring a tax advisor might be in your best interest.
What about credit scores, which are essential for those that would like to invest in real estate? When an investor has a strong credit score that they have built over the course of time, they are more likely to borrow money without any difficulty. On the other hand, someone with outstanding payments may not receive the amounts that they are looking for. Before making this type of an investment, any discrepancies should be resolved.
When it comes to real estate investing, having a plan is crucial. If you have a certain goal in mind, you must ensure that you have the proper time and money in place so that it may be reached. Will the time and money you commit ultimately be worth it? Maybe you will have to make adjustments. If you can set up a plan, particularly one that you can follow day after day, you will not have to worry about your goals being unmet.
"Location, location, location," is a typical quote in real estate investing, but its truth cannot be denied. Not only must you purchase a piece of property that looks nice, but you must ensure that it is located in a desirable spot. For instance, if you live on a street that does not have the best homes, investing in the one home that positively stands out can build equity. When investing in real estate, location matters for reasons like this.
Third, tax benefits should be looked into. One of the best examples, according to Stephen M. Dowicz, is the depreciation write-off. What this does is allow an investor to write off the depreciation as a tax reduction when making a purchase. Also, the IRS regards real estate investments as business, which means that more deductions have to be done. This is a situation where hiring a tax advisor might be in your best interest.
What about credit scores, which are essential for those that would like to invest in real estate? When an investor has a strong credit score that they have built over the course of time, they are more likely to borrow money without any difficulty. On the other hand, someone with outstanding payments may not receive the amounts that they are looking for. Before making this type of an investment, any discrepancies should be resolved.
About the Author:
Real Estate Mogul Stephen Dowicz is a philanthropist and thriving businessman in the spa industry. He has made many charitable contributions over the course of his career and is an expert in private equity endeavors.