HELPING INVESTORS EARN INCOME FROM REAL ESTATE
Licensed Real Estate Brokerage
Offices Melbourne, Florida | Serving Investors Globally
rental investing made simple
Whether we work together to finance an acquisition, acquire your property with seller financing, manage your one property or a large portfolio, our mission is to provide practical and common-sense solutions to domestic and foreign investors, unitl it’s sold®
Local experience is essential to creating a successful rental investing strategy. Our advisors understand local nuances, rules, and regulations.
Communication is less about talking and more about listening to the needs of our clients, by being proactive communicators we strive to find solutions before they become problems.
Transparency means upfront pricing, real-time data, up-to-date records, and regularly communicating with our clients to discuss their investments.
Until it's sold®
Proactively finding, correcting, and preventing problems, allows us to avoid costly blunders in the long run, results is better customer service and an improved bottom line,
managed rental investments
Real estate investing comes in all sizes, shapes, and forms, and keeping it as simple as possible provides the best possible outcomes from investment activities. As a result, we like to focus on buying, holding, managing, acquiring projects with seller financing, or working with private lenders who prefer a stable income stream secured with a first mortgage.
Direct ownership is a strategy that provides wealth creation, tax advantages, inflationary protection, and reliable streams of passive income that can be the bedrock of any investment portfolio, giving you direct control over the investment. Many real estate investors who invest directly retain us as property managers.
Seller Financing is an exit strategy for sellers who don’t want the expense or responsibility of direct ownership but still like a passive income stream secured by holding the first mortgage.
Private lending is a strategy that allows sophisticated individuals and commercial entities to invest capital in the form of a first mortgage on the individual property, which enables the investor to receive an income stream over a period.
Though there is no guarantee with any investing, including the acquisition of rental investments, seller financing, or private lending, a rental investment strategy can help investors minimize risk and maximize returns if appropriately executed.
real estate investing journal
Military members are afforded certain protections and benefits while in active duty, including protections relating to housing and accommodations. For this reason, landlords need to be aware of the laws that can affect the landlord’s relationship with its military...
The landlord-tenant relationship involves more than the exchange of rent payments for access to residency. In Florida, when a landlord and tenant enter into a lease agreement, they agree to be bound by a plethora of terms, whether express in the agreement or imputed...
Service dogs aid people with disabilities so that they can fully participate in daily life routines and activities. Dogs can be trained to perform many significant tasks to assist people with disabilities. These service dogs offer support to people with physical...
When a person sells a house, vacant land, or other pieces of property, there are certain requirements that must be followed. Most states require an affidavit of title. An affidavit of title is a document specifying that a property seller owns the property. In...
Non-U.S. individuals and corporations investing in real estate within the United States will need to be familiar with one of the biggest challenges facing foreign nationals involved in U.S. real estate: the Foreign Investment in Real Property Tax Act (FIRPTA). FIRPTA...
When it comes to real estate, although significantly different from owning a condo or renting an apartment, individuals may consider investing in a housing cooperative (often referred to as “co-op”). In considering whether to do so, purchasers should determine...
Real estate can be a great investment; when executed tactfully investors can expect to see great returns. One of the principal advantages of investing is the plethora of options available to optimize an investor’s tax situation. From tax-advantaged retirement accounts...
A cost segregation is a tax planning strategy that accelerates the depreciation of certain asset components of a larger real estate transaction. For investors who focus primarily on real estate, the potential tax benefits are rather substantial and result in upfront...
To Disclose or not to Disclose: Lessons on Securities Liability from Hutchinson v. Deutsche Bank Securities
Hutchinson v. Deutsche Bank Securities, Inc. involved the issue of whether the defendant made false statements and omissions in its registration statement. The defendant, CBRE Realty Finance, Inc. (“CBRE”), was a commercial real estate specialty finance company...
We work with a competent team
Our team of real estate advisors works hand-in-hand with highly qualified and specialized independent accountants, attorneys, and other professionals to understand the goals and objectives of each client. We then measure our success by identifying key results specific to our clients and testing them against our planned objective.
Meet the Founder
James Timothy White, 35, was born in Calgary, Alberta, Canada, and is a citizen of three countries Canada, the United States, and the United Kingdom. White changed his family’s destiny when he acquired his first rental investment at 18-years old with funds earned from his landscape construction business. Today, White is the licensed real estate broker and co-founder of RentalInvesting.com, a passionate real estate investor and serial entrepreneur.
Reviews From The Web
WHY do WE RENTAL INVESTING?
Are you an experienced or prospective investor looking for the perfect asset to unlock the full potential of your capital? We’re a Licensed Real Estate Broker in Florida, and we have the perfect answer: rental investing. Whether you’re eager to diversify an existing real estate portfolio, take your first steps into real estate investing, or looking for other retirement income opportunities here’s why we are passionately in love with real estate investing.
Tenants Understand How the Process Works
Landlord and tenant laws require tenants of both residential and commercial rentals to pay rent on time. Most renters who fall behind on lease payments know they have to move out on their own or face eviciton. Did you know an uncontested residential or commercial eviction in Florida can be completed in only 14 days? If there is a contested eviction the courts will require the tenant pay the rent “in-trust” to protect the landlord from tenants who make up excuses on why they are not paying rent to stay in the property longer.
Real estate has a predictable cash flow
Real estate isn’t the only investment sector that’s likely to yield a strong return on investment. However, rental investments, offer predictable cash flow that increases over the life of the property, with cashflow you can pay to recover your initial capital outlay or pay interest and principal payments, and once the mortgage is paid for the parents can become a primary source of income.
For example, If you buy a $300,000 property with a $60,000 down payment in Florida that rents for $2500 per month, your cash return on investment will be about 10% annually, this does not include property appreciating and income tax depreciaton. Even after recovering the initial cash outlay and maximizing asset depreciation, you can still continue to receive leaase payments.
Real estate appreciates in value
Property markets may encounter short-term declines, but the long-term curve will always show a positive trajectory. Between 1997 and 2006, before the economic crash, property prices in the U.S. more than doubled. Once the market recovered following the crash, prices started to climb once more. You can expect the same to happen throughout the current decade.
The economic fallout of the COVID-19 pandemic will slow the appreciation rate, in some area, but suburbs, like Melbourne, Flordia have seen significant price increases. One of the main reasons that we love rental property investments, s that the immediate rental income and is followed by the long-term benefits including appreciation (inflation protection), depreciation, and stable cash-flow for the life of the property, if managed reasonably.
Real estate can be leveraged
Making capital work harder is one thing. But the opportunity to leverage financial growth courtesy of the bank’s money is a way to build wealth, the goal would be not to over-leverage, which many real estate investors do time and time again and lost it all in a market down-turn. With most rentals, you can leverage about 4x your capital, and with today’s low-interest-rate environment and strong rental market, and the other benefits of ownership, it may make more sense than ever to invest in rental, even with the current economic uncertainty.
By leveraging a rental investment purchase it allows you to purchase a better property, in better locations providing better long term results, cash-flow, and higher depreciation expenses which can offset income taxes.
For example, while a property that delivers a 20% ROI may sound better than one that offers a 10% ROI, the leverage factor means that the second option is better. A 20% ROI on $100,000 will deliver $20,000 in profit. Conversely, 10% on a $400,000 property that included a $100,000 down payment delivers $40,000.
Real estate provides equity buildup
Equity buildup is an attractive feature of buying a rental investment rather than renting one. This is because the equity is built thanks to the mortgage payment made or return of the principal if investing cash, being paid by your tenants, and when a real estate investor recovers the capital outlay and takes the entire depreciation expenses, they can choose to cash-out-refinance, but more property, and avoid capital gains tax, or sell the proeprty for cash or seller-financed and receive long term secured income stream.
Real estate is improvable
The long-term appreciation of real estate is a crucial part of the appeal behind wanting to invest in rental property. However, rental investment owners can also increase their property value and rental rates with property upgrades, like kitchen, bathrooms, paint, backyard transformations, and attic conversions, improving the energy efficiency of older properties, among others.
When improving rental investment, property upgrades should be made thinking about financial benefits and expenses if the improvements will translate into more desirability for the home, translating into equity buildup, finding better tenants, and demanding higher lease rates.
Real estate coincides with retirement
As the principal reductions increase and interest payments decrease in response to making monthly repayments, the cash flow of the rental investment improves. This means that if appropriately managed, a property can preserve wealth, continue to deliver a stable source income, which increases with inflation.
For rental investing, retirees that do not want the responsibilities of ownership can choose to either sell the property and receive a lump sum of cash, or choose to seller finance the property and continue to receive secured monthly principal and interest payments over a period of time.
Real estate is tax deductible
Rental investors can also offset the expenses associated with running a property, ain’t equity build-up, and cash-flow. The list of tax-deductible items largely relates to the upkeep and maintenance of the property, property taxes, insurance, and property management fees, and even mortgage interest can be deducted. Many real estate investors quit early due to the perception of not earning enogh cash-in-hand right away fail to realize the amount of income taxes saved with deprecation expenses, the equity build-up by making principal reduction payments and the asset appreciation of time. If you map out these three considerations over time rental investment can produce returns unhead of anywhere else.
Real estate is depreciating asset
If you are an investor looking for tangible assets real estate naturally stands out as one of the best options. While property investments appreciate over time due to inflation and market trends, properties themselves will depreciate. For example, appliances within the property will show a decline over time. Structural elements lose value too. In the United States, residential rentals are depreciated using the Modified Accelerated Cost Recovery System (MACRS), a depreciating method that depreciates residential property over 27.5 years. This is the amount of time the IRS considers to be the “useful life” of a rental property, while commercial real estate depreciates over 39 years.
What about a cost segregation study? Cost segregation is a tax planning strategy that accelerates the depreciation of certain asset components of a larger real estate transaction. For investors who focus primarily on real estate, the potential tax benefits are rather substantial and result in upfront cash flow from a reduced yearly tax burden. Without cost segregation, single-family and multifamily real estate are depreciated straight-line over 27.5 years and commercial real estate over 39 years. In contrast, with a cost segregation study, certain asset components can be “segregated” from the larger asset purchase for the purpose of accelerating depreciation – in effect, reclassifying 27.5-year property into shorter-term lives that still meet IRS regulations.
Friendly Tax Rate on Capital Gains
There are two main types of capital gains: short-term and long-term and range from 0%-20%, which varies depending on your income, your tax filing status, and how long you hold real estate. Then there is FIRPTA. the Foreign Investment in Real Property Tax Act (FIRPTA) which converts international real estate investors.
Because everyone investors’ situation is different it’s important to use a qualified CPA who specialized in all real estate transactions related to investing.
Real estate gains are deferrable
Real estate gains are deferrable, and It’s one of the most attractive features for rental investors hoping to invest in property on a long-term basis. Here are examples on how to defer capital gains.
- Wait at least one year before selling a property.
- Leverage the IRS’ Primary Residence Exclusion. Keep in mind, under the Section 121 exclusion, and you’ll have to own and use the property as your primary residence for two out of the five years immediately preceding the sale date.
- Sell your property when your income is low, for example, when you’re ready to retire.
- Take advantage of a 1031 Exchange.
Remember, It is imperative to use a qualified CPA who workes with rental investors and properties regularly.
HOME OWNERSHIP RATE IS GOING DOWN
The homeownership rate in the U.S. is at just 67.9%. It has seen a slight uptick in the last several quarters, but in general, the rate seems to be showing a downward trend. There are a few possible reasons for that trend.
First, the economy is a bit up in the air, especially in the wake of the COVID-19 pandemic. As of August 2020, the unemployment rate in the U.S. was at 8.4%, but the pandemic took its toll on a lot of people, financially, and for many families and individuals across the country, it simply isn’t the best time to buy a house. So, more people will turn to rental properties that they can make their own and call home.
Additionally, Millennials now officially outnumber the Baby Boomer generation. Millennials are considered to be anyone between the age of 23-39 as of 2019. That means that many of them have just gotten out of college or are starting to look for their first solid job. Not many can afford to buy a house, so rental properties are more appealing and more affordable.
Simply put, there is a high demand for quality rental homes, and because of the large population looking for them, buying property is a wise investment opportunity.