Realty411 - Your Source for Real Estate Investment Information CashFlow Express - Featuring HGTV's Flip or Flop! | Page 18

By Christopher Urso, URS Capital
Partners Elite Apartment Coaching

I

t’s no secret that real estate is a taxfriendly investment. There are not many
investments that offer the tax advantages
that real estate provides. Now, I’m no
hater of Wall Street. I feel that diversity is
important to any portfolio; but when it comes to
taxes, real estate has many other investment
vehicles beat.
Buying an apartment building allows your
tenants to pay down your mortgage while
building equity with little to no tax burden. Here
are some of the tax strategies that make apartments so investor-friendly.
The beauty of depreciation is that an investor can show a loss that can dramatically lower
their taxable income on their investment property. There are further depreciation that can
be taken through furniture, fixtures and equipment. (Standard Disclaimer -> I am NOT an

your property are also tax free. This is an exit
plan that many of our clients use; reinvesting the
refinanced portion into another, larger deal.
Many of our investors have used a 1031 exchange. This allows you to sell a property and
reinvest the proceeds deferring all capital gains
taxes. There are many specific IRA guidelines
that need to be adhered to, including a narrow time window; but the investor will be able
to defer their taxes for as long as they hold that
investment! Make sure that you work with a 1031
specialist, as the guidelines are very specific and
must be followed to a “t”.
Investing through an IRA, specifically a selfdirected IRA, is how we were able to raise $17
million of private money. This money is already
earmarked for retirement, making it the perfect
way to allow an investor to get started investing in
real estate. Becoming well versed in self directed

The beauty of depreciation is that an investor can
show a loss that can dramatically lower their
taxable income on their investment property.
accountant, so make sure that you check with
your accountant for proper declarations.)
The proceeds that come from refinancing

IRAs will allow you to educate your potential investors if you’re looking to syndicate larger deals
and raise private capital for your own projects.

Tax benefits are just one of the benefits of
investing in apartments. Economies of scale
(lot of beds under one roof), burgeoning demographics, and an attractive lending climate, all
make investing in apartments one of the fastest ways to secure your future.
Whether you are just starting out and want
to create a legacy for your family, you have
done some single family deals and want to
scale your real estate business faster, or have
done some deals and want to syndicate larger
deals and bring in investor dollars, investing in
apartments is the path to true security.