Investing ... in Real Estate
One way or the other, one kind or another ,

"Real estate investing is always about the numbers, never about the wallpaper." - Larry Lick

The most viable investment available that involves possible tax incentives is still real estate. There is seldom reason to fear a downturn, the return can be substantial, and property that is purchased right and pro perly cared for will almost always appreciate in value .

Income property investments are typically held for long-term gain , as well as a hedge against inflation. Real estate investors actually profit from inflation because with a 30% equity, just a 3% inflationary increase in property values results in a 10% return on investment. Without even considering normal operating profits and tax benefits! See the RHOL page on Using Leverage in Real Estate Investing .

Real estate can be purchased in many forms , including: shopping centers, industrial buildings, warehouse net leases, apartments, single family residential housing, and even raw land. The investment can be direct, or through various kinds of partnerships and investment trusts.

Most pages are Member-Only
but some are available as a Non-Member Summary page

Be sure to check out our eCourse s,
Buying & Selling Income Property , Evictions ,  Collecting Judgments ,  Valuing Income Property ,  Managing Income Property , Buying Foreclosures

CONTENTS (Click to expand or collapse a list item )

• Analysis

  • An Analysis of investment Property Types

  • Large vs. Small Investments

  • Active vs. Passive Real Estate Investing   Non-Member summary

• Associations

  • Selecting An Owners Association Manager

• Affordable Housing

  • Federal Affordable Housing Program

• Buying Info

  • Buying Rental Property   Non-Member summary

  • Selecting a Real Estate Agent   Non-Member summary

  • Buying & Selling Income Property e-Course

  • Buying Foreclosures e-Course

• Financing

  • Other People's Money - Types of Loans

  • Seller Financing

  • Selecting A Mortgage Broker    Non-Member summary

• Inspections

  • Property Inspections   Non-Member summary

• Property Types

• Real Estate

  • Real Estate Regulatory Agencies

  • Selecting A Real Estate Agent

• Selecting Professionals & Employees

  • Selecting A Real Estate Agent   Non-Member summary

  • Selecting A Property Manager   Non-Member summary

  • Selecting An Owners Association Manager

  • Selecting A Contractor   Non-Member summary

  • Selecting A Mortgage Broker

• Tax Issues

  • Tax Ramifications

  • Tax Credits for Dummies

  • Section 1031 Tax Free Exchange

  • Capital Gains

  • Depreciation Recapture on Investment Properties

  • Property Tax Assessments   Non-Member summary

  • Self-Employed Persons

  • Federal Tax Amendments 1998

  • Estate and Gift Taxation

• Valuation

  • Valuing Income Property e-Course

• Zoning

  • Zoning and Non-Conforming Issues   Non-Member summary

  • Rezoning Real Estate   Non-Member summary

  • Ownership Restrictions Imposed By Law

  • Easements

  • Exceptions to the Rules

Financial history lessons should help all of us to conclude that - one way or another - families should have investments in real estate. There are several reasons, including: special deprecation and capital gains treatment, using leverage to build wealth, and to help compensate for the expected capitol depreciation likely to occur from government caused inflation.

We at RHOL highly recommend direct involvement in the rental housing business, and we are here to help you with every aspect of your endeavor. However, if you are not able or inclined to be a landlord, and fear the potential personal entanglements of partnerships with landlords, then LPs and REITs are certainly worth your consideration. But remember, passive investments require substantial fees and compensation to brokers and investment managers.