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This episode is the first in our new ‘Lawfare’ series. We’ll be offering up shorter episodes focusing on the legal aspect of real estate investing.

Our first guest is attorney, Rob Gidel. Rob is a real estate attorney specializing in acquisitions, dispositions, development, financing and leasing. We’ve had Rob on the show once before and we’re glad to have him back!

This episode, Rob talks about net lease investments and using 1031 Exchange to purchase properties. He also shares tips for investors to avoid pitfalls.

1031 Exchanges & Single Tenant, Triple Net Lease Investments

A lot of multifamily and rental property investors love to use 1031 Exchanges to leverage new investments. If you’re not familiar, 1031 Exchanges allow for a deferral on capital gains tax from the sale of a property if the earnings are used to purchase another property.

However, some investors rush into buying a property on a 1031. This can get you into hot water if you don’t consider the purchase from an investment standpoint. If you purchase a property solely as a tax decision and not a financial decision, you may end up biting off more than you can chew. This is especially true for first-time investors of single tenant, net lease investments, or triple net leases.

Many investors who are new to net lease investments are enticed by the seeming ease of a long-term, single tenant. It may sound like an easy, hands-off investment strategy, but there are many nuances to triple net leases that make them complex.

Rushing blindly into an investment is never a good idea and net lease investments are no different. You do not want to miss this episode!

The post Ep. 148 Rob Gidel: Lawfare – 1031 Exchanges & Net Lease Investments appeared first on Real Estate Investing in Florida.

Don’t miss a single show!

Tax Credits

They sound nice, but real estate investors may think that they are not so easy to come by. Those investors who do happen upon them find usually find themselves bogged down by the IRS’ strict stipulations surrounding them.

Tax credits are, in fact, tools set in place to help investors grow their portfolios and while they may seem complex, they are accessible to any investor willing to do a little extra leg work.

While nobody should be expected to know the entire IRS tax code, real estate investors should be aware of some very helpful tax credits that can be applied to their assets.

Michele Pasquale, of Meridian Financial Solutions spoke with us previously about increasing your bottom line through cost segregation.

This week she discusses some more tax credits that real estate investors can apply to green or sustainable property endeavors.

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• Instated in 2005 Energy Policy Act and renewed annually
• Potentially set to expire end of 2016
• Tax deduction for energy efficient additions to commercial buildings +30,000 s/f
• 3 common components
  • Building envelope
  • HVAC
  • Lighting
• $0.30-$1.80/SF in tax credits
• Calculated on energy efficiency of entire building set to ASHRAE requirements

45(l)

• Residential tax credit for developers of energy efficient buildings
• Potentially set to expire end of 2016
• dollar-per-dollar deduction
• $2000/unit or dwelling
• Qualifying factors
  • Apartments, Condos, Town homes
  • New construction or rehab up to 4yrs
  • 3 stories tall or less

Disposition

• Tax credit for removal and retiring of building fixtures or components
• Book value of components can be written off as business deduction
• Components can not be purchased within same year as tax year filing with deduction and must be no longer in service

Have more questions on these or other possible tax credits? Call Meridian Financial Solutions for a free quote at 561-252-7282

The post Ep. 104 Landlord Tales – Tax Credits on Green or Sustainable Property Endeavors appeared first on Real Estate Investing in Florida.