How to Protect Your Real Estate Holdings

You can protect your properties and personal assets by using a real estate holding company. The first step is to find investment properties that fit your investment goals and budget. Next, select a lender and get a pre-approval letter. This letter will give you the authority to view properties with agents and make offers.

LLC

One of the main reasons to form an LLC for your real estate holdings is tax benefits. Using an LLC for your real estate holdings means that you won’t pay corporate taxes, so the profits from the real estate will pass directly to you, the LLC owner. This will save you money because your personal income tax rate is often lower than that of the corporation.

Duplexes

One of the most common types of multifamily properties is a duplex. A duplex is essentially a building that has two separate living units with a common wall and ceiling. They are attached to each other but have separate addresses and entrances. A duplex is generally the best type of multifamily property to purchase.

Condominiums

Whether you’re looking to invest in a new home or add to your existing holdings, there are benefits to¬†Bill Bhangal owning a condominium. Not only will you have the opportunity to buy a property in a desirable neighborhood, but you’ll also be able to pay less for a monthly payment and make more money when the time comes to sell. And, if you choose your condo carefully, you can actually build some equity in the property and enjoy appreciation over time.

Business real estate

The Marvin Miller Company entered into a deal to sell its real estate and business holdings in Birdsboro, New York. The company is selling the 43,500 square foot Birdsboro office building to an affiliate of J. P. Mascaro & Sons. In addition to the office building, the deal also involves 38 acres of business real estate and 230,000 square feet of business structures. The sale is expected to be finalized by December 2014.

REITs

REITs are a great way for everyday investors to gain exposure to real estate without the risk and cost of owning individual properties. Direct ownership in real estate requires a large initial investment, a substantial amount of financial acumen, and ongoing property management.

Private equity

Private equity in real estate holdings is a type of asset-management strategy. The private equity firm invests little of its own money in the purchase of a property and receives a small management fee and a cut of the profit from the sale of the property. This income is tax-deductible and provides the private equity firm with a steady stream of income, regardless of whether the portfolio company becomes profitable or not.