By Jon Swire

Have you started investing in real estate and aren’t sure how to take the next step to grow your portfolio? If so, you’re going to want to read my tips on how to use 1031 Exchanges and Cash-Out Refis to Explode Your Wealth.

Now that you’ve taken the first step and started investing in real estate, the next step is to learn the basics of 1031 Exchanges and Cash-Out Refinances so you can use these tools to explode your wealth. By using each of these where appropriate, you’ll be able to grow your real estate portfolio and passive income stream, without paying any taxes. The key is to take advantage of each in the right situation.

Cash-Out Refis are used when you own a property that has appreciated in value, and therefore so has your equity. Under current tax guidelines you’re allowed to do a cash out refi and do whatever you’d like with the proceeds, tax free. So, you can take the money and use it to purchase another property, thereby increasing the size of your portfolio and your passive income stream. You’ll go from owning 1 property to 2, and having two income streams instead of one.

Like Cash Out Refis, you’re going to consider doing a 1031 Exchange once your property has appreciated in value and your equity has increased. 1031 Exchanges allow you to sell a property and defer taxes until sometime in the future. You can then use those funds that would have gone towards taxes to purchase another larger property that generates an even larger cash flow stream than the one you sold. You can do this over and over throughout your investing career, and I have clients who have been doing this for 30 years or more. Remember, there are time constraints placed on 1031 Exchanges that you must meet, and you should discuss these with your accountant and real estate professional.

Cash-Out Refis are best used in situations where the property you own is one you’d like to keep. Maybe it’s in a good location, has a solid tenant base, or has excellent prospects for future appreciation. 1031 Exchange’s on the other hand, are best used when you’re ready to sell a property and move on. This typically occurs for any number of reasons: you’ve exhausted your depreciation, the building is older and has higher maintenance costs, the area is declining or the tenant base is troublesome, meaning it’s difficult to collect the rent on time each month.

Make sure you analyze your real estate holdings at least once per year to figure out if its time to do a Cash Out Refi or 1031 Exchange. The key to exploding your wealth and climbing the Property Ladder is to keep your equity moving and continually increasing your real estate holdings and the size of your passive income stream. Remember; before you make any financial moves you should always consult your Accountant or Tax Professional to fully understand the implications of what you’re planning.

Home owners – Is now the time to move up?

Apr 30, 2009, 9:12 am.

Current home owners are asking themselves – is now a good time to move up? Many are considering a move sooner rather than later.

What are some reasons for making that move right now?

1. Low interest rates
2. Increased supply of homes on the market so you can find your next home
3. Lower home prices will mean you spend less for your next home
4. Home buyers are in the market. Well-priced homes are selling. Yours can too.

Even with the price of your current home being affected by today’s real estate market, many are seizing the opportunity to get into their next (dream) home now! Some are selling now, and then choosing to rent and take a “wait and see” approach.

Whatever your strategy, the opportunities are out there!

Sofitel London St James – London, : From £165 per night

Apr 30, 2009, 7:09 am.

Fourth Night Free – From £165 per nightWhether you love to plan ahead or just want to get away on a whim, Sofitel hotels welcome you to stay one more night.

Sofitel St James London occupies one of the finest addresses in London, right on the corner of Pall Mall and Waterloo Place. Situated in the midst of a prestigious and lively dist…… …
www.perfectescapes.com …Full Story

Thousands Of Houses Open Their Doors (WCPO Cincinnati)

Apr 30, 2009, 1:00 am.

In an effort to generate interest realtors opened the doors to thousands of homes for sale in Hamilton County and Northern Kentucky.

Source:Thousands Of Houses Open Their Doors (WCPO Cincinnati)

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