Back Taxes For Real Estate – Some Dos And Don’ts Of Paying Them

There are many vital things that should be known when dealing with back taxes for real estate. This is often a very complex and confusing subject, there are some parts to this subject that you need to be aware off to avoid paying more than what is required to be paid. This is often considered as a delicate issue, and before a person considers himself to be a expert there are loads of thing for him to do and lots to learn. Back taxes for real estate are considered the domain of experts and are not designed for amateurs.

The first thin that a person needs to do is to understand the working of taxes in his/her area in relation to property. An overall over view of taxes is an good idea, but to get a clear picture of back taxes for real estate it is important to study about specific taxes that are applicable in a area, specially the property tax laws that are applicable. A clear understanding about all the laws relating to the properties owned is a obvious pre-requisite. A person is expected to familiarize himself with this things, without which understanding of back taxes for real estate becoming extremely difficult. Realization that a lot of hard work needs to be put in to understand this subject must hit the person sooner or later.

The main reason why the study of property tax laws applicable in a particular area is important is that, tax laws vary from state to state and some times even city to city and town to town. For a good knowledge of back taxes for real estate it is important to have a area specific knowledge. Other from the location of the property in a particular state or city, taxes depends also upon the zone in which the property is and the use it is put to. Intimate knowledge of all the above is very important in understanding back taxes for real estate.

This probably is not a task that needs to be contemplated by the beginners as over payment of taxes is a very distinct possibility. Over payment of taxes is something that no person would like to do, as it would mean parting with hard earned money. Therefore it is best to take help when it comes to paying back taxes for real estate. Professional help is the best help in this case. Professionals calculate the right amount that needs to be paid, nothing more nothing less. Even though hiring a professional is a little expensive, it turns out to be a money saving investment on the whole, as he would end up saving a lot more.

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How a Commercial Real Estate Investor Can Make Higher Returns

As a commercial real estate investor, you can increase your returns and pocket tax-free cash by utilizing leverage and refinancing (also known as using “Other People’s Money”). This benefit is just one of the reasons why investing in commercial real estate frequently comes out on top when measured with other forms of investing.

Leverage is the use of borrowed funds to complete an investment transaction. The higher the proportion of borrowed funds used to make the investment, the higher the leverage and thus, the lower the amount of equity required.

Here are some examples of how leverage works for you:

Magnify Your Gains in Price with Leverage

Assume you acquire a $100,000 property. You borrow $80,000 and put $20,000 down. During the following 5 years, the CPI advances by 50 percent, however your property lagged behind the CPI by only increasing 25 percent. Your real wealth went down, right? No, it increased. The $100,000 property is now worth $125,000 so your equity wealth (your original $20,000 down) has grown to $45,000. You have more than doubled your money, while inflation has only increased your $20,000 to $30,000. Real estate investing builds wealth because it grows acorns (small down payments) into free and clear properties worth many multiples of the original amount of invested cash.

Magnify Returns from Cash Flows with Leverage

Traditionally, investors not only magnify their equity gains from leverage, they also magnify their rates of return from cash flows. You pay $1,000,000 cash for an apartment building that yields a net income (after all operating expenses) of 7.5 percent with no financing. Not bad. But if you finance $800,000 of that $1,000,000 purchase price at, say, 30 years, 5.75 percent interest, you invest just $200,000 in cash. Your net income equals $75,000 (7.5% X $1,000,000) and your annual mortgage payments (debt service) will total around $56,000. You pocket $19,000 ($75,000 less $56,000). You’ve boosted your cash flow return (called cash on cash return) from 7.5 percent to 9.5 percent ($19,000 divided by $200,000).

Refinance to Pocket Cash without Paying Taxes

Refinancing occurs when a commercial real estate investor replaces their existing financing with new financing.

Say after 10 years your $1,000,000 property is now worth $1,500,000. You’ve paid down your loan balance to $650,000. Your equity has grown from $200,000 to $850,000 ($1,500,000 les $650,000). You obtain a new 80 percent loan-to-value ration (LTV) mortgage of $1,200,000. You pocket $550,000 tax free. However, I suggest that you don’t spend that cash. I suggest that you reinvest it. Buy another income property. Yes, you now owe higher monthly mortgage payments on your first property and your cash flows from that property will decrease. But with the additional cash flows from your second property, your total cash flows will go up.

As a commercial real estate investor, that’s called having your cake and eating it, too!

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Why Do People Think Email Marketing Is a Good Idea?

If you’re investing time and money in digital marketing for your business, you might have heard about how email marketing can serve your business. Email marketing is commonly regarded as one of the most effective tools for promoting your brand to potential customers, even outperforming other strategies such as social media. Email marketing campaign services exist for a reason, after all.

If you’re new to digital marketing, you’re probably shaking your head in disbelief. How can this generation still be into email? Marketers know email is not only alive, but still ever so relevant, easy to use, inexpensive, and most importantly, effective. Here are reasons to invest in creating an email marketing campaign.

1. Email Is Not Restrictive

We’re past the phase of Facebook giving business owners and advertisers a chance to promote their brands, only to take it back after several privacy issues and algorithm changes. Luckily for marketers, Facebook paves one way of advertising online, but it’s not the only possible, or even best, method.

This is where email shines. You don’t have to worry about any algorithm changes that could reroute your entire marketing strategy. In fact, you don’t even have to worry about your audience disappearing or moving to the next best platform.

Your email list is still a list of people who want to hear from your company. Even if they choose to unsubscribe, emails boast a 20 per cent open rate-that’s higher than a Facebook metric equivalent, “people talking about this”, which stands at 5 per cent.

2. Email Stands the Test of Time… Better Than Social Media

Social media is fast-paced, which means your posts easily become old news in the span of, give or take, two days. Emails can last longer than two days, because people don’t get emails as fast as they consume social media updates, and with that, your emails won’t be phased out as easily.

3. Email Marketing Is Easy to Integrate With Other Digital Marketing Strategies

With emails, you can easily embed your social media accounts or website. You can even encourage your recipients to follow your account on social media through your email newsletter, and even regularly remind them to check your new blog posts.

4. Sending Emails Will Help Retain Your Customers

Sending emails regularly can increase the chances your existing customers buying from your brand again. In fact, not all your emails have to be sales pitches; emails can actually be a way for you to pitch your brand personality and values, and even encourage engagement with interactive content.

A great example: Glossier, a US-based skincare brand, sends their subscribers emails with random content, like a photo of a baby goat to greet their customers a “good day”. Not only is it a great display of brand personality, but a great way to nudge your customers every now and then to remind them of your business.

Email marketing is one of the most effective digital marketing strategies. Your first few attempts may not be as successful, but with persistent efforts, your return on investment will skyrocket. Should you need any help with your marketing campaign, there are several email marketing campaign services ready to assist you, and they’re usually just one email away.

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Toting Bad Credit & Seeking Home Loans- The Offer of a Bad Credit Home Loan

If you are holding onto a poor credit history, whether it’s due to irresponsible credit card spending, a home foreclosure action or a filing for bankruptcy, you might think your options of buying that dream home you always wanted are few and far between. But, you’d be sadly mistaken. Do you think that qualifying for – let alone applying – for a home mortgage purchase is impossible in a position such as yours? If you do, it’s understandable why you feel that way with, especially acknowledging how home mortgage purchasing has proved most stringent in the past toward bad credit persons. Yet, despite the fact that having a poor credit history is indeed a drawback when striving to gain a home loan, times have changed as have many lenders.

Recognizing The Bad Credit “Spread”

Taking into account the bad credit plague and how it has touched and affected most individuals, mortgage lenders have taken the almost universal bad credit situation into consideration and accepted it’s dominant presence. More simply, and to all bad credit individual’s benefit, lenders and home mortgage companies have ushered and put forth the relieving inclusion of what’s called the “bad credit home loan.”

Bad Credit Home Loan Options Are There

What’s even more appealing and better for those with poor credit seeking home loan opportunities are the choices with bad credit home loans. Bad credit toting persons have the choice between two types of loans, both secured and unsecured. Each type has it’s defining aspects as well as advantages and disadvantages.

Secured loans are loans in which a form of security is held against items in which you already own, such as your car, business and so on. Particularly, these types of loans are beneficial if you’re looking to borrow a decent amount of cash with bad credit under you belt. This is especially the case if you’ve had difficulty attaining a loan from a traditional lender or in house bank. Also, here interest rates are significantly lower than most unsecured loan rates.

Now, unsecured loans are a bit different. They’re not secured by forms of property you already own and are actually quite hard to come by, especially if you’re requiring significantly lower interest rates. But, on the other hand, unsecured loans are now offered through many a finance company with lowered interest rates.

Offers Of Bad Credit Home Loans Are Everywhere

Many Internet based mortgage companies have not only recognized the current bad credit home loan callings but also accommodated to them. Not only for reasons of assisting those who have been ignored and snubbed off in the past, but also for business reasons have these mortgage companies put bad credit home loans into effect. They also have the capability to offer such loans – such in house banks and smaller-sized mortgage lenders cannot actually financially support providing bad credit home loans. Thus, the online-based, larger and more monetarily-adept mortgage lenders stepped in. And thank goodness though they did because now, those once hopeless bad credit carrying persons looking to obtain a home loan actually can, and with ease no less.

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