Help Clients Understand 1031 Exchanges

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Understanding How 1031 Exchanges Work

One big advantage real estate investors have is the ability to defer capital gains taxes by exchanging one property for another. If an investor handles it correctly, he or she can build an empire in investment property and pass it on to heirs without anyone paying a dime in capital gains taxes.

Why You Can’t Afford a House in San Francisco

This stunningly simple model reveals that the most important determinants of housing prices are mortgage rates and income. And whither they go, so goes the "bubble."

Should Clients Treat Their Home as an Asset Class?

Given the large equity buildup many homeowners have enjoyed, perhaps residential real estate should be managed just like any other security in the client's portfolio. Which means you need to be familiar with tax laws and market guidelines for this sensitive asset.

Understanding How Real Estate Fits Into a Portfolio

Counseling clients on whether to invest money in stocks or real estate poses some challenges to advisors. Evaluate the investment like any other asset class by looking at how liquidity, appreciation, risks, income, and taxes would best serve the client.