What is a Real Estate Investment Firm?

WHAT IS A REAL ESTATE INVESTMENT FIRM?

A real estate investment firm takes funds from clients and gives them returns on those investments. This involves buying properties, completely renovating them, and then selling them for a profit. These firms find old, unwanted, and distressed properties and buy them. Once the sale is final, the property is renovated, increasing the property value.

The renovations on these properties are different for each condition. Although the renovations are done with your investment, you don’t have to involve yourself in the work. Here at LeavenWealth, we make sure to provide great living conditions for tenants and increase rents to market.

For people looking to invest in the real estate market but don’t have time to find the properties, renovate them, and resell them, a real estate investment firm is the best route. Here at LeavenWealth, we take care of this for you.

WHAT KINDS OF PROPERTIES ARE AVAILABLE?

This is one of the biggest advantages of working with a real estate investment firm like LeavenWealth. We have vast portfolios, and you can choose the deal you want to invest in.

PROPERTY MANAGEMENT

Some real estate investment companies do not manage the properties they’re handling. If you’re a new real estate investor, it’s best to hire a full-service investment company like LeavenWealth. We manage the properties, so our investors don’t have to.

How to know which REAL ESTATE INVESTMENT FIRM to choose?

If you’ve decided to partner with an investment firm, there are a lot of companies to choose from. Here are some reasons LeavenWealth stands out:

Overall

Real Estate Investing minimizes risks that you could experience with investing in other options like stocks. By doing this, you are guaranteed returns on your investment. Investing with LeavenWealth creates an easy investment process so you can sit back and relax with passive income.

How To Strategically Scale From 4 Houses In 4 Years To 2400+ Units And Multiple Businesses – With Chris Pomerleau

Use Partnerships And Syndications To Learn How To Rely On Others To Take Your Investing Career To The Next Level – With Chris Pomerleau

How To Increase Your Real Estate Net Worth With Leveraging

Things You Need To Know About Leverage When Investing In The Real Estate

Even though producing millions overnight is nearly impossible, investors are always looking for the best and fastest ways of doing so. There are various strategies to earning income from real estate, it just depends on what choices you will make, and one of the things you will have to decide on is if you should leverage or not.

But clearly, to make up your mind, first, you will have to gain enough information. That is why I have decided to list some of the things you need to know about leverage when investing in real estate.

What is Leverage?

Leveraging means borrowing money in order to purchase or manage your real estate property. The most common way of leveraging in real estate is taking out the mortgage, which means that you will be borrowing money from the bank to generate better returns from your investment.

Investors use leverage in real estate in case they don’t have enough money, or to maximize returns by putting less of your own cash into the properties.

How does Leverage work?

The concept of leveraging in real estate is increasing your returns by using someone else’s money and putting as little of your capital as possible. Leverage enables investors to either purchase a property they couldn’t afford at the moment or to invest in multiple properties.

For example, let’s say, you own $100K cash, but the property you are interested in costs $300K, in that case, you can either settle with the cheaper property or use leverage and purchase the property you wanted from the beginning.

How do I Leverage my investment?

To leverage your investment, you will have to work either with a bank, credit union, or private money lender. No matter which way you will choose, before landing you the money, the lender will first explore the property, its values, and the expected income it could generate. Additionally, they will also decide how much they are willing to lend and how much you will have to pay yourself.

For example, if you’re planning to purchase a $500K property and the bank (or others) will loan 70%, it means that they will be paying $350K, while the rest ($150K) should be covered by you.

Conclusion:

Leverage is the way for investors to purchase the properties they wouldn’t be able to afford, or either to avoid putting all the money in a single property, in order to purchase others.

Omaha Real Estate Meetup with Chris Pomerleau

Collin Schwartz with Logan Rankin: 100% Ownership vs. Syndication

Tax Time with Mitch Hagen

That time of year when you’re looking at your tax bill and you probably have plenty of thoughts, emotions, and words…most of them are probably not fit to share on this blog.

If you find that to be the case, you’re also probably wondering what else you could do or could have done to be in a better position. Specifically, those in real estate, consider how depreciation can change the equation in the short-term and your long-term family wealth generation.

Below is one question to consider*.

1. What is the latest date you can determine your depreciation on a rental property for the Calendar Year 2021 Income Tax Return:

a. Situation: You buy a rental property in November 2021, which has tenants in place. You know there is depreciation generated from your rental property, but you don’t know where to start on calculating this, so you put it off. It’s now April 2022 and tax returns are due. You extend your tax return to buy you more time with the feeling that you still don’t know what your depreciation is for your 2021 tax return, and you think it is too late to do anything about it…
b. Insight: You do NOT need to determine your 2021 depreciation by 12/31/2021. You also do NOT need to determine your depreciation by 4/15. You need it by the date you file, which could be as late as 10/15/2022 for your 2021 tax return. In some cases, you may even amend a previously filed tax return and adjust your depreciation determinations. Be sure to keep your tax advisor updated before, during, and after you’ve purchased your rental property so that they work proactively for you on these and other matters.

We are not tax advisors, but we have seen many different scenarios and work frequently and regularly with our advisors (tax, legal, banking, and other team members) on our real estate deals.

We would be happy to connect further on some of our experiences and appreciate your feedback on some of your experiences on the above or other topics. Please reach out or comment below to continue the conversation!

We’ve found the real estate community to be a very inclusive and informative group that we want to continue as well. See below for our comments section and our contact information. Thanks!

– Mitch Hagen, Director of Finance
OBO LeavenWealth (and related businesses)

*This is not tax or legal advice. We are not obligated to update this post with potential updates. Consult your tax advisor regarding the below and other options that may be available to you before taking any tax positions.

The Missing Pieces in Developing Effective Passive Streams Of Income with Collin Schwartz

0-25 units in JUST 4 months while working a full-time job