Real estate investors have a wealth of tax strategies at their disposal. This is one of the primary motivators for investors to choose real estate as their primary asset! We’re here to give you the rundown on one of the most powerful tax-deferral tools at your disposal: The 1031 Exchange.

Summary: A 1031 Exchange defers capital gains taxes through the sale of one investment property and the purchase of another "like-kind" property.

How do you choose a worthy investment market? Here’s a hint: if everyone is talking
about it, it’s probably not the right choice. By the time the cat is out of the bag on “hot” real estate markets, the window to score deals is closed.

And what passive real estate investor wants to waste their time on speculation?

Investing in real estate is an exciting prospect with the potential to totally transform your financial future. But it’s also intimidating for first-time investors, and understandably so! A significant amount of money is at stake, and there’s so much for new investors to learn.

As a result, many newcomers opt for a turnkey approach. That is, they purchase properties from an established turnkey provider that handles property acquisition, renovations, resident placement, and property management.

In today’s real estate landscape, the rules of the game are evolving. Investors are entering the space with high expectations—and sometimes without the preparation necessary to meet them. I’m seeing it in investor conversations, online forums, and in the hundreds of inquiries we receive each month at REI Nation.

If you’re investing in real estate for the first time, you probably have lots of questions. After all, there are so many options and strategies available. It can be overwhelming! But let’s focus on one of the bigger decisions investors must make: To invest in older properties that require renovation or opt for shiny, brand-new builds.

We’ve been in this business for a while now. It’s safe to say we’ve seen just about everything the market can throw at real estate investors, from housing market crashes to global pandemic panic. Good times and tougher ones, too. 

We’ll let you in on a secret, though: your success in real estate investment rarely has to do with market conditions. It has everything to do with the things you can control. As a turnkey investor, you rely on a team to get the job done. Critical to that team is property management. 

And what’s the most essential quality in your property manager? Proactive communication. 

A survey shows that, aside from rent costs, the number one most cited reason for rental residents to forgo lease renewal was an unresponsive and ineffective property manager. 

Further Reading: Crucial Questions New Investors MUST Ask a Property Management Company

Where should you invest in real estate? It’s the age-old question. We can make an excellent case for a few specific markets, but we want to speak more generally here. Real estate investment strategy is often about the slow zoom-in—focusing on general principles that grow in specificity as you move towards your personal pinpoint.

Early retirement. The prize many real estate investors have their eyes on. If they can generate enough passive income to make up for an active career, they’ve made it. 

The word on the street is recession.

April 15^th is creeping up on us. Many people procrastinate on tax filing (don’t worry, some of us are guilty, too!), but there’s little room for investors to make the same mistake. Dread and procrastination are holding you back in more ways than one.