7 Ways Real Estate Investors Can Profit From Time Off | Real Estate Investing

7 Ways Real Estate Investors Can Profit From Time Off
REITs vs. Rental Property [And the 4 Pillars of Real Estate Investing ...
HowStuffWorks "How REITs Work"
NY Tech Day: 9 Tech for real estate investors | Investors Beat

7 Ways Real Estate Investors Can Profit From Time Off

Posted: 28 Apr 2014 02:00 PM PDT

While it may come as a surprise to many, taking a much needed break away from the rigors of the investing industry can actually be more beneficial than many have come to understand. A lot can be said for taking some time to yourself and recharging your batteries. It is in these moments that investors are able to refocus their priorities and gain a fresh perspective. Taking intentional time off with goals can compound the benefits even further and have investors making major gains.

There are many little regular tasks which seem like work, take time and yet are required to be done consistently in order for real estate investors to realize success. However, some of the biggest gains can be made effortlessly. Many of these moments actually come when investors and real estate CEOs commit to taking time off. So how can taking a break actually be more profitable than putting in more hours?

1. Preempt Burnout

Far too many real estate CEOs and investors wait until they are already burnt out, or even completely incapable of carrying on before taking a break. This is extremely counterproductive. It means poor work before taking a break (probably for months), and longer recovery and reboot periods. Regular days off and vacations can preempt this and actually boost overall performance and profit.

2. Time to Think

Real estate can be a chaotic industry sometimes. So much so that some find that they don't even have time to think. Even the weekends are spent catching up on work and personal must-dos with barely a moment just to think. Time out to think can bring better ideas, strategies and tactics; increasing the ROI on every hour on the 'job,' and sometimes preventing years of going in the wrong direction. Thinking on the fly, under pressure is a great talent, but even for the genius it doesn't provide for maximum quality thinking.

3. Networking

Slogging away from a home office or even just with the regular crew often restricts new contacts being made. Savvy real estate pros know that their success is directly linked to the number of new contacts that they make each day. So taking some time off can produce many new networking opportunities and actually sometimes be more profitable than hitting up existing lists.

4. Inspiration

Real estate education and sticking to proven systems is not only smart, but sometimes it's those lightning bolts of divine inspiration that yield the biggest breakthroughs. Some real estate investors are so busy they might not even realize they've been struck by lightning. Take time out to tap into your inner genius, and travel to find new inspiration too.

5. Fresh Market Research

As real estate investors go about their daily routines they develop a lot of knowledge about their markets. But they can also suffer from tunnel vision and end up running with blinders on. It's critical to stay on top of the competition, new industry trends, consumer patterns and more.

6. Quality Time

While the scheduling flexibility real estate investing offers is a dream come true for most, some find they slip into always being on call. This can be disastrous for all types of personal relationships. Take regular quality time off – unplugged to make sure your family doesn't fall apart and disrupt your business in a huge way later.

7. Real Profits & Success

Success isn't just about money. Even lots of money in the bank means little unless you are enjoying the journey too.

Sounds great, right? But how do you find time to take time off? Find more hours each week. One European nation is now testing a six hour work day, citing it is more productive. More than a day a week off is better too. For vacations – block it out in advance, spend the money on reservations and you'll be less likely to come up with excuses not to go.

REITs vs. Rental Property [And the 4 Pillars of Real Estate Investing ...

Posted: 28 Apr 2014 03:10 AM PDT

park place monopoly

"A common question I get asked from readers is: "Is investing in a real estate investment trust (REIT) a suitable alternative to buying rental property?"… There are many reasons to invest in REITs; they are a convenient, and most passive way of letting an investor gain access to the real estate sector. However, comparing REITs to rental properties is like comparing apples to oranges."

Read the entire article (and breakdowns!) here: FiFighter.com

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[Perfect photo by PT Money]

HowStuffWorks "How REITs Work"

Posted: 20 Mar 2014 05:48 PM PDT

Investing in income-generating real estate can be a great way to increase your net worth. But for many people, investing in real estate, particularly commercial real estate, is simply out of reach financially. But what if you could pool your resources with other small investors and invest in large-scale commercial real estate as a group? REITs (pronounced like "treats") allow you to do just that.

REIT stands for real estate investment trust and is sometimes called "real estate stock." Essentially, REITs are corporations that own and manage a portfolio of real estate properties and mortgages. Anyone can buy shares in a publicly traded REIT. They offer the benefits of real estate ownership without the headaches or expense of being a landlord.

Investing in some types of REITs also provides the important advantages of liquidity and diversity. Unlike actual real estate property, these shares can be quickly and easily sold. And because you're investing in a portfolio of properties rather than a single building, you face less financial risk.

REITs came about in 1960, when Congress decided that smaller investors should also be able to invest in large-scale, income-producing real estate. It determined that the best way to do this was the follow the model of investing in other industries -- the purchase of equity.

A company must distribute at least 90 percent of its taxable income to its shareholders each year to qualify as a REIT. Most REITs pay out 100 percent of their taxable income. In order to maintain its status as a pass-through entity, a REIT deducts these dividends from its corporate taxable income. A pass-through entity does not have to pay corporate federal or state income tax -- it passes the responsibility of paying these taxes onto its shareholders. REITs cannot pass tax losses through to investors, however.

From the 1880s to the 1930s, a similar provision was in place that allowed investors to avoid double taxation -- paying taxes on both the corporate and individual level -- because trusts were not taxed at the corporate level if income was distributed to beneficiaries. This was reversed in the 1930s, when passive investments were taxed at both the corporate level and as part of individual income tax. REIT proponents were unable to persuade legislation to overturn this decision for 30 years. Because of the high demand for real estate funds, President Eisenhower signed the 1960 real estate investment trust tax provision qualifying REITs as pass-through entities.

A corporation must meet several other requirements to qualify as a REIT and gain pass-through entity status. They must:

Be structured as corporation, business trust, or similar association
Be managed by a board of directors or trustees
Offer fully transferable shares
Have at least 100 shareholders
Pay dividends of at least 90 percent of the REIT's taxable income
Have no more than 50 percent of its shares held by five or fewer individuals during the last half of each taxable year
Hold at least 75 percent of total investment assets in real estate
Have no more than 20 percent of its assets consist of stocks in taxable REIT subsidiaries
Derive at least 75 percent of gross income from rents or mortgage interest

At least 95 percent of a REIT's gross income must come from financial investments (in other words, it must pass the 95-percent income test). These include include rents, dividends, interest and capital gains. In addition, at least 75 percent of its income must come from certain real estate sources (the 75-percent income test), including rents from real property, gains from the sale or other disposition of real property, and income and gain derived from foreclosure of property.

We'll look at the different types of REITs next.

NY Tech Day: 9 Tech for real estate investors | Investors Beat

Posted: 27 Apr 2014 09:00 PM PDT

It was apparent at NY Tech Day that NYC's tech scene has grown into it's own to rival Silicon Valley's. There were well over 400 exhibitors with 12,000+ attendees. I spoke with both founders, Jesse Podell and Alec Hartman the day of the big event and it was clear their team put in a mighty effort to support the community and innovation.

Here's the pick of my favorite real tech from the event.

1. KeyMe

This mobile app lets you scan and store an electronic copy of your keys in the cloud. When you need a copy of the key, you can either have it delivered to you or go to one of their local KeyMe kiosks to have it reproduced on the spot. Great for forgetful tenants also. These guys won the NY Tech Day innovation award and it's not hard to see why!

2. Sefaira

I'm a big fan of "going green," but being an investor, I want my bottom line to be covered. These guys have made software to allow architects and developers to establish the energy efficiency of a building at the very beginning – the design stage.

3. Zenly

Pre-vetted apartments for rent with video providing landlords a way to directly advertise to prospective tenants. Landlords will also save time with fewer in-person appointments where prospective tenants having already had an early look at the apartments via video.

4. Bookmarc

The Pinterest for design projects enabling architects, designers and rehabbers to bookmark an architectural library for their next renovation or development. Products and services range from furniture to wall coverings with everything you will need to maximize the look and feel of your space.

5. RentHackr

The Yelp for apartment buildings where landlords can review feedback on what their tenants really think of the new recycling facilities or artwork in the lobby allowing owners an opportunity to improve their services. Prospective tenants can also save and receive notifications of the buildings they are interested in moving into when there are vacancies.

6. SiteCompli

This platform helps keep commercial, residential owners and managers on top of compliance issues, saving time and money through reducing the risk of fines and penalties.

7. MyHomePayge

Similar to BuildingLink, except much more sophisticated, this product is used in apartment buildings as a communication tool between property managers and tenants. Operators can view maintenance requests, collect rent electronically and showcase local deals as a great value add to build loyalty with their tenants.

8. View the Space

This cloud-based leasing and portfolio management software provides CRE brokers and owners with real-time tracking and analytics across their entire portfolio.

9. Proprly

This one's for the Airbnb hosts (yes, I know about all the controversy here in NYC), but for those landlords who are leasing out their property to travel guests, these guys provide a expert cleaning and key delivery service to help the changeover process go a little smoother.

Real Estate Investing

Thursday, 1 May 2014