It’s one of the oldest tricks in the book, refinancing your Miami real estateto buy more Miami real estate. They call it pyramiding through refinancing. It is a great avenue toward building wealth.
We’ve all seen investors buy properties and fix them up in order to resell them for a profit. Many investors then turn around and use those profits to make new real estate purchases. One problem these savvy investor’s face is capitol gains tax. When pyramiding through refinancing, you avoid having to deal with capitol gains taxes because technically you are not selling anything.
It all begins with by buying your first piece of Miami real estate. It’s best if it’s an improved income property, such as a duplex or multi-unit building that will generate enough cash flow to cover all operating expenses and your mortgage payments. The ideal property would be located in a solid, growing area. Beware of decreases in property value as it could prevent you from being able to refinance and make your next Miami real estate purchase.
With the application of deductible allowances, most of the net income earned within the years you own each piece of property will be sheltered from taxes. Of course, when you sell your Miami real estate, you will be subject to capitol gains tax. Pyramiding through refinancing is a great way to avoid paying capitol gains taxes and to build wealth. If you never sell all of your Miami real estate, the estate can be left to your heirs at the increased value established at the time of your passing, without ever having to pay capitol gains taxes on any profits derived from ownership in this property.
To find out more information about investing in Miami real estate, be sure to contact the team here at Global Market Realty. We can show you how to make wise real estate investment decisions that will be sure to produce rewards for years to come. Contact us today!
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.
How you can use Miami real estate to build wealth in a slow market
It’s one of the oldest tricks in the book, refinancing your Miami real estate to buy more Miami real estate. They call it pyramiding through refinancing. It is a great avenue toward building wealth.
We’ve all seen investors buy properties and fix them up in order to resell them for a profit. Many investors then turn around and use those profits to make new real estate purchases. One problem these savvy investor’s face is capitol gains tax. When pyramiding through refinancing, you avoid having to deal with capitol gains taxes because technically you are not selling anything.
It all begins with by buying your first piece of Miami real estate. It’s best if it’s an improved income property, such as a duplex or multi-unit building that will generate enough cash flow to cover all operating expenses and your mortgage payments. The ideal property would be located in a solid, growing area. Beware of decreases in property value as it could prevent you from being able to refinance and make your next Miami real estate purchase.
With the application of deductible allowances, most of the net income earned within the years you own each piece of property will be sheltered from taxes. Of course, when you sell your Miami real estate, you will be subject to capitol gains tax. Pyramiding through refinancing is a great way to avoid paying capitol gains taxes and to build wealth. If you never sell all of your Miami real estate, the estate can be left to your heirs at the increased value established at the time of your passing, without ever having to pay capitol gains taxes on any profits derived from ownership in this property.
To find out more information about investing in Miami real estate, be sure to contact the team here at Global Market Realty. We can show you how to make wise real estate investment decisions that will be sure to produce rewards for years to come. Contact us today!
Ready to move to Miami? We have several Miami Homes, Miami Foreclosures, Miami Rentals, Miami luxury foreclosures, Miami Condo foreclosures. Search the Local MLS for Hundreds of Miami Homes and Miami Real Estate. Please contact us for a list Miami homes.
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