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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.
This offering of Grand Rounds looks at articles from around the web that deal with adding real estate to your portfolio.
When I first started out my portfolio was comprised solely of stocks and bonds.
It took a little bit of convincing from my radiology partner to look into real estate but in the end I knew he had a point.
There are many tax advantages owning real estate, with the ability to use depreciation or even kick any capital tax gains down the road with 1031 exchanges.
Commercial real estate can definitely seem daunting.
Pick the wrong property and it can turn out to be a money pit rather than a source of cash.
It is therefore imperative to build your knowledge base before you start deploying your hard-earned cash into real estate.
Fortunately Passive Income MD gives you a good guideline in, “How to Get Started with Real Estate Investing.”
For those of you, like me, who prefer a hands-off type approach to real estate, a logical step would be being involved in a real estate syndication deal.
With so many real estate syndications out there it can feel like going through a minefield trying to find the right one.
Of course having the convenience of being hands-off in real estate comes with a price as the sponsors and managers of the property have to get paid as well.
Debt-Free Doctor gives you a crash course about how a real estate syndication works in, “The Ultimate Guide To A Real Estate Syndication Structure.”
There are die-hard stock/bond investors and die-hard real estate investors that make it seem like it is an either or binary choice.
I am sure you can succeed financially concentrating on one of these options, but I feel the best option is to have a horse in every race.
Speaking of races, curious how a real life case example of how a competition between stocks/bonds versus real estate turned out?
Financial Success MD does just that in, “Who Wins: Real Estate or The Stock Market? A Real Life Contest.”
No matter how knowledgeable or prepared you think you are, mistakes are bound to happen.
This is especially true with real estate investments.
You can either be defeated after a major mistake or you can use it as a teaching opportunity.
Semi-Retired MD takes the latter view in, “Learning From Our Biggest Mistakes.”
Ordinary income is my least favorite type of money (as opposed to my favorite type of money).
Ordinary income carries the biggest tax hit so it behooves you to try and reduce the amount of tax you pay on it as much as possible.
Real estate can be a great option to do this.
White Coat Investor explains in, “Two Ways to Use Real Estate Losses Against Your Ordinary Income.”
Hope you enjoyed the reading material.
Have a great rest of the week.
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