Tax Deductions Are Essential For Positive Cash Flow in Real Estate Investing

Net positive cash flow from a rental property is the equivalent to the Holy Grail for landlords; it may seem mythical or even impossible to some would be investors, but what makes positive cash flow attainable are the tax breaks given to rental property investors.

The concept of owning a rental property is pretty simple in theory, you buy a property, and over the course of a few years the asset increases in value, while your tenant essentially pays the mortgage and lowers the loan amount. This creates a scenario where the gap between the home price and the note amount, or your equity, is continually increasing.

The one major hurdle with this premise is that is difficult to find a property where the area rent for the home will cover the mortgage, insurance, taxes, and repairs up front. This is what keeps most people out of the real estate investment game, negative monthly cash flow.

The best way to negotiate negative cash flow is through knowledge of tax planning and tax deductions. Real estate investors are allowed to deduct mortgage interest, insurance, taxes, home repairs, depreciation expense and any utilities bills that are paid out of pocket. These expenses are netted against rental income, and the subsequent gain or loss is reported on Schedule E of your 1040.

By far, the most important tax deduction for real estate investors is depreciation of the building. You do not spend any capital to take this deduction, like you would for taxes or insurance, depreciation is only a loss on paper, but is fully deductible. For example, a home purchased for 200,000 dollars will generate a yearly depreciation expense between six and seven thousand dollars depending on the price of the land in that area.

Add the depreciation expense to the loss generated by rental property, (assuming you have negative monthly cash flow) and you arrive with your total tax deduction for the year. This deduction will reduce your taxable income, and your total tax bill, giving you the opportunity to greatly improve your net cash flow from the rental. The easiest way to determine your total tax relief is to multiply the tax deduction by your marginal tax rate, or the tax rate you pay on the last dollar you make.

Have your tax professional crunch the numbers for you in regards to a rental investment, and you will see it is very possible to turn a three or four hundred dollar a month loss, in to positive monthly cash flow.

Posted in Tax | Tagged | Comments Off on Tax Deductions Are Essential For Positive Cash Flow in Real Estate Investing

Cancun Real Estate Region – An Emerging Convention Destination

If you have been keeping an eye on Mexico Real Estate area’s growth, you cannot help but notice that Cancun Real Estate is not just areas number one beach destination but has also emerged as an international travel hub and a preferred destination for business conventions. Cancun has over the years beefed up its infrastructure and amenities thanks to which it has now acquired an important place in the Mexico and Latin American region.

As an indicator to its increasing importance and clout, annual meeting of the Inter-American Development Bank (IDB) was held in Cancun recently. More than 1,500 registered guests attended the meeting of the IDB. They met in Cancun Convention Center. End of March will mean a heavy influx of visitor to Cancun as thousands of American and Canadian university students on their spring break will also visit the city.

Despite the last year’s slowdown, Cancun ‘s tourism industry has bounced back with a vigor and confidence. Though, Mexico was one of the hardest hit countries due to a string of unfortunate events such swine flu scare, global recession and negative press regarding Mafia, Cancun steadily worked on developing its infrastructure and amenities and positioned itself as the one of the first regions in the area to emerge even stronger. With a renewed beaches and better infrastructure, Cancun is one of the leading tourist magnets in the region.

According to data from the Cancun Hotel Association, of the total 28,500 hotel rooms, about 74% are currently occupied. This figure is expected to increase in the coming months due more tourist inflow.

The meeting had a special significance since, as IDB President Luis Moreno observed, “the first IDB loan for tourism was granted to Cancun during its construction where “the funds were used to build an airport, a port and the first hotels in the city.”

The IDB meeting marks an important anniversary of boosting real estate for international investors in this region and aiding in the development of Real Estate in Mexico in recent decades. The meeting also reflects Cancun ‘s emerging role of being an international convention hub an achievement which promises to bring further growth to the region’s real estate industry.

This continued growth in tourism is a positive signal for Mexico Real Estate investors. The real estate market has got an extra dose of confidence which means that condos in Cancun will continue to be a hot choice for buyers and the region will be supported by an ever expanding urban infrastructure, with well maintained and expanding road network, shopping malls, restaurants and other facilities.

Author: Donna Nocero

Posted in Real Estate | Tagged | Comments Off on Cancun Real Estate Region – An Emerging Convention Destination

Understanding Full Service Internet Marketing Services

Deciding to promote your business online is one that is taken lightly. Thousands of companies compete online on a daily basis. This opportunity has opened up doors for all sized companies in all industries, giving you the freedom to trade on a global scale.

While having a website designed, adding some products and information is great, it isn’t quite enough to ensure that your customer base sees your company among the hundreds of other companies around the world offering the same products or services. You need to focus heavily on your internet marketing to ensure that your online presence is enough to help your business grow moving forward, help you achieve online success and become a dominating competitor.

This means that you should consider a full service internet marketing service. Unless you have hours of time on your hands each day to focus on your online marketing efforts, hiring a professional company can give you the time and freedom you need to focus on the day to day running of your business while the service provider will focus on growing your business in an online environment.

The first thing you will find a full service internet marketing services provider will do is focus on your website. They need to ensure that it is optimized for your particular target audience. They should provide a complete website analysis, providing you with reports on what needs changing, what is working and possibly even, what pages to include to help you grow moving forward.

They will focus on SEO, search engine optimization, this will include local SEO where they will ensure that your address appears on each and every one of your web pages. Local SEO has become a valuable marketing tool and you need to follow the SEO guidelines to ensure that Google notices your company to help push you to the top of search engine results.

From here the full service internet marketing services provider will focus on all your on page optimization. This is your actual web pages. They will conduct a thorough analysis to ensure that you are using the right keywords to reach your target audience. They will also ensure the web pages you provide are valuable and give your customers the information they need.

The next step is focusing on your off page optimization, this includes your press releases, articles, blogs and more. The company should assist you with these marketing initiatives, helping you increase online brand visibility and direct your customers back to your website, where hopefully you will start seeing an increase in revenue moving forward.

Any reputable full service internet marketing services provider will ensure that they do a through keyword analysis for your particular company. Keywords are used in all online marketing and are focused on words used by your potential customers. The service provider will identify works that are most commonly used in search engines and then use these words to help promote your business in the future.

It is important to note that internet marketing is not an overnight success. You can’t hire a full service internet marketing company to handle your online reputation and expect to wake up tomorrow morning and be the first name you see when you search for a product or service that you supply. This process takes time and requires constant work and monitoring, but over time you will start to see an improvement as you make your way up the ranks to enjoy success in the long run.

In addition to the services listed above, your full service internet marketing provider should also provide you with a complete competitor analysis, they should assist you with your social media efforts and they should protect your online reputation at all times.

Posted in Markets | Tagged | Comments Off on Understanding Full Service Internet Marketing Services

Bridging Loan UK: Making a Financial Bridge for You

Nowadays, property transaction has become so common in the UK. Many people in the UK are buying a new property by selling their present ones. Are you planning to purchase some property in the same way? Can you manage the two things simultaneously? If you are in doubt about this, you can get the assistance of the bridging loan UK, which will make your property transaction easier and smoother.

The bridging loan, available in the UK, is a sort of secured loans. So, the requirement of collateral is a must to avail the loan amount. Usually, borrowers in the UK use their new purchasing property as collateral against the lending amount. Any sort of property including housing or auction property, commercial property, retailing shops, overseas property can be used as collateral.

In a bridging loan, the value of the property plays the main role, not the purchasing price of the property. With this loan, a borrower can avail the amount ranging from £25,000-£500,000. In case of a higher amount, the equity of the property is checked. Nevertheless, in the UK, a borrower can avail up to 75% of the property value as a bridging loan.

A bridging loan is mainly a short term loan. So the repayment period of this loan varies within a few weeks to six months. One also can expand this period up to 2 years. During the term period, borrowers need to pay only the interest rate and the principal amount can be repaid after selling the property. And in case the loan is matured before selling the present property; the loan will be transferred into general loan automatically without charging any penalty.

For a UK borrower, a bridging loan can be advantageous in many senses. Let’s check the advantageous attributes of the loan.

With a bridging loan UK, a borrower can get the assurance of easy finance. This loan assures borrowers to get the finance within 24 hours.

A borrower with a bad credit score can also get the benefit of this loan.

Posted in Loans | Tagged | Comments Off on Bridging Loan UK: Making a Financial Bridge for You