You are viewing the printer-friendly version of Hot New Strategies for 2006Hot New Strategies for 2006Some say that last year was tough for real estate investors looking for ways to cash flow their properties. Some people who have not yet invested in real estate wonder if they have missed out on the real estate rocket. The answer is...who caresIf you are trained to see deals everywhere, know how to create value where none existed, and have the ability to use general wealth building and tax reduction strategies in everything then you don't need to worry about the next big thing. You can create it. There are real life hot new loopholes: Higher credit score means lower interest rate There is one little thing on your credit score that could bring your score down 100 points or more. It might be enough to raise your score by a point or more. This one item could cost you $200 or more every month in cash flow on your property. How do you know which item it is? Look at the negative indicators on your report and fix the first one. Just knowing this one thing could make you hundreds and thousands of dollars. Make money in real estate and never pay taxes New laws make it easier than ever to buy and sell real estate through your pension plan. Did you know that your IRA or your ROTH IRA can borrow money with an up to 70% loan to value? Consider setting up a RE IRA LLC. This LLC is managed with you acting as a manager. Your pension is the member of the plan. The LLC then writes the checks and makes the deposits. You won't need to run everything through an absentee administrator. Free up the money in your pension plan and start making some real money with real estate. New tax loophole: Production deduction Congress has given business owners and real estate investors a gift. If you are a manufacturer (the definition is broad) you get 3% deduction this year and it wont cost you a dime. 3% is not a lot, but it is free. The definition of manufacturer includes pretty much any company that takes something and changes it to resell or rent. That means if you rehab a house, you are a manufacturer and get this new tax loophole. If your business is involved in construction or engineering, you qualify for the special benefit. Be sure to check with a tax attorney. aa |