Real Estate Investing In a Down Market Timing may be everything, but is now the right time to invest in real estate, given the steep declines seen in the housing marketing in recent months? Some real estate investment professionals seem to think so. In fact, the smart investors are buying, buying, buying properties right now. Why? “First, let’s define what we mean by “investing,” says real estate mentor a [...]Real Estate Investing In a Down Market

Timing may be everything, but is now the right time to invest in real estate, given the steep declines seen in the housing marketing in recent months? Some real estate investment professionals seem to think so. In fact, the smart investors are buying, buying, buying properties right now. Why?

“First, let’s define what we mean by “investing,” says real estate mentor and author Minh Pham, whose popular real estate seminars pack convention rooms with novice real estate investors eager to learn how to make money with real estate. “Are you intending to be a knowledgeable, well-educated buyer of under-priced properties and stay in the real estate market for the long term in order to see excellent returns? Or are you looking for a get-rich-quick’ scheme? If so, my real estate seminars are not for you.”

Pham explains that buying a cheap property in the hopes of immediately reselling for a lot more than you paid is speculating, not investing. And speculating is as risky as buying a lottery ticket. No credible real estate investment coach will teach you how to speculate, because there is no way to guarantee profits.

But that doesn’t mean you can’t start seeing profits in a fairly short space of time – you just need to know what you are doing.

Becoming a successful real estate investor involves getting educated, doing excellent research, and putting together a well-thought-out strategy. This may seem like homework to some, but for those who have done it the financial rewards are more than making up for the time spent learning.

“Can you make money in real estate in a down economy? Absolutely. Can you do it without knowing what you are doing? Absolutely not,” says Pham. “Worst case scenario, you could lose thousands of dollars and end up being very disillusioned, as many people are right now as a result of not really understanding what they were doing. There are rules to any game, and if you don’t take the time the learn them you could lose your money.”

According to Pham and other real estate investing experts, in order to be successful it’s important to learn how to make money in both up’ and down’ markets. You need survival strategies for when the economy is bad, and know how to win in a competitive market when the economy is booming. “Don’t fear the competition – embrace it,” advises Pham. “If you see a lot of investors competing for deals, then know you’re not the only one that sees the potential for profit. There are more than enough good deals to go around. At any given time there are hundreds of properties for sale in local market niches, enough for every savvy investor to make the profits they’re looking for.

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President Obama signed a sweeping health reform bill The Patient Protection and Affordable Care Act on March 23rd. According to the Congressional Budget Office, it is expected to reduce the federal deficit by $124 billion.

Meanwhile its long term impact on landlords, property managers, property management companies and real estate professionals is not clear. If you fall into one of the above categories, you have to consider whether you are an independent contractor, employee or employer as it has different impact on you.

How Health Care Reform rolls out and what happens to who and when:
In 2010

1. Insurance Companies
1. Insurance companies have to remove life-time caps on illness costs, cannot drop you if you fall ill and cannot deny coverage to kids with pre-existing conditions
2. Independent Contractor Property Managers, Real Estate Professionals and Employees
1. Children up to the age of 26 can stay on their parents plan.
2. Medicare D participants receive $250 credit
3. Retirees between age 55-64 are offered re-insurance program
3. Employers Property Management Companies
1. If you own a property management company that offers health insurance, you get a 35% tax credit from premium paid
2. Small employers can get tax credit up to 50% of premium paid

In 2011

1. Insurance Companies
1. Insurers cannot raise premiums without providing justification or will be taken out of state insurance exchange pool
2. Independent Contractor Property Managers, Real Estate Professionals and Employees
1. Medicare D participants receive 50% off brand name drugs while in doughnut hole
2. Employees contributions to Flexible Spending Plans are capped at $2,500 limiting the amount that can be used to purchase health care with pre-tax dollars.
3. Penalty for non-qualified withdrawals from Health Savings Account (HSA) increases from 10 to 20 percent and 15 to 20 per cent for Archer Medical Savings Accounts (Archer MSAs)

In 2013

1. Independent Contractor Property Managers, Real Estate Professionals and Employees
1. If you are single filer and earn at least $200,000 per year or a joint filer earning at least $250,000 you will pay additional Medicare tax of nine-tenths of one percent called Hospital Insurance tax on income above these amounts.
2. Itemized deductions for unreimbursed medical expenses rises from 7.5 to 10 per cent. It has an impact on individuals who itemize deductions.
2. Employers Property Management Companies
1. New Medicare tax is to be withheld by property management companies

In 2014

1. Independent Contractor Property Managers, Real Estate Professionals and Employees
1. All individuals are required to carry health insurance or pay an IRS penalty of $750 per individual or 2% of income whichever is greater
2. Subsidies for payment of insurance cost are offered and family of four earning up to $88,000 (four times the federal poverty level) will get a subsidy.
2. Employers Property Management Companies
1. Employers or property management companies with 50 or more employees are required to provide health insurance or pay a penalty of $2000 per employee per year. State exchanges enable employers like property management companies to purchase insurance at rates similar to employees of big companies.

In 2018

1. Insurance Companies
1. All insurance plans offer preventative care with no co-pays and no deductible

This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software

Popularity: 76% [?]