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Hollywood Real Estate Law Blog

Steps for setting up a real estate holding company

When making any type of investment, there is always a risk that the investment could backfire. While the market value of properties tends to go upwards, recessions can occur unexpectedly, and money can be lost. This is why investors naturally want to protect their assets when making investments. One way to do this is to start a real estate holding company, otherwise known as a real estatelLimited liability company (LLC).

By creating an LLC for your investment, it means that if you lose money on the investment, your personal assets will not be affected. The following are the steps that you should take when creating a real estate LLC.

Why should I do a 1031 exchange?

A 1031 exchange is a hugely important way for property investors to defer capital gains tax. Capital gains taxes can prevent investors from having the capital to make new, lucrative investments after a sale. This is why so many successful investors swear by 1031 exchanges.

If you are starting to consider using profits made from one property to invest in another property, you will likely be able to benefit from a 1031 exchange. The following are three reasons why you may benefit from it.

Tips for purchasing your first investment property

Purchasing a second property could be one of the best investments you ever make. Investment properties can be rented out to cover the cost of loans you have taken out against the property, and at the same time, you may even be able to gain an additional passive income from them. Property tends to increase in value over time, particularly if you make strategic choices about the type of property that you invest in.

You must think carefully about your tactics and goals before purchasing an investment property. The right property for you will depend on your long-term goals, your budget and the amount of passive income you want to earn. The following are some tips to pay attention to.

Here's why you need an attorney to handle a commercial lease

Your business aspirations may have started at the kitchen table or were developed in the back bedroom of your home, but you're growing. Now, it's time to sign your first commercial lease.

While this is an exciting time -- and you're no doubt eager to move forward -- it's still wise to hire an attorney to review any commercial lease you're thinking of signing before you make a mistake.

Consider property taxes when buying a new house

The list price of your new home isn't the only cost you'll face. You need to carefully think over all of the financial details when deciding what house to buy.

One important thing to consider is what the property taxes are going to look like. Based on the location of the home and the value of that house, the taxes could be vastly higher than what you had at your previous home. This is sometimes a surprise to homeowners who are upgrading from a starter home in a cheap neighborhood to a true family home in a nice neighborhood, where they end up paying thousands more per year.

What commercial lease details should you carefully go over?

If you've begun searching for Hollywood office space, then you've probably discovered that most Florida landlords want to lock you into a pretty long lease. Their goal is to get you to sign a long-term contract so that they'll know what type of money to expect for the next few years. Tenants often make the mistake of not thoroughly reviewing the commercial lease before signing on the dotted line.

The most important thing that you can do is to read your entire lease. You shouldn't let your prospective landlord pressure you into signing it. You could regret your decision down the road. You should have an experienced real estate or contract lawyer do the same as well.

Title insurance can keep keep you headache-free in the future

When you're buying your first Florida home, it's common for your realtor, lender, closing attorney, title company and others to recommend purchasing title insurance. Some of them might require that you buy it. There are various reasons why these parties may recommend that you buy title insurance.

As you're likely aware, every transaction including the purchase and sale of a home, levies, liens, easements and other property-related matters are all recorded with the Florida county in which the property is located. It's the responsibility of the Hollywood title company or attorney handling your purchase transaction to search those county records to identify any ownership concerns with the property.

What should I know if I'm buying my first rental property?

Sure investment bets are a bit like unicorns. They don't exist. Any investment carries some risk, however negligible. But the good news is that there are ways that you can lower your risk of losing money on your investment in rental properties. Read on for some suggestions on what to do before making the leap into landlord territory.

Secure your funding

What 1031 exchange deadlines do I need to be aware of?

The amount of taxes that you have to pay when you sell off your Florida home can be quite high. This is why many sellers take time to apprise themselves of the different tax savings options that they can pursue to minimize their tax burden. The 1031 exchange is often one that sellers pursue.

A 1031 exchange is a process by which you can defer making capital gains tax payments on any property you sell. You have to locate another home to purchase by a set deadline to be allowed to re-invest those proceeds tax-free though.

Real estate limited liability corporations can lower your taxes

If you are a real estate investor, then you're well aware of how saving every little dollar is key to being able to get into investing in your next fix and flip. Keeping your tax burdens low is one of the benefits associated with setting up a real estate limited liability company (LLC).

Real estate LLCs function a bit differently from other types of corporate formations. This incorporation structure exempts you from paying taxes that you may derive from your business dealings. If this sounds too good to be true, then you're not alone. There's an explanation for why you don't have to pay corporate taxes on the funds that your corporate LLC generates.

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Jeffrey Feinberg, P.A.
4651 Sheridan Street
Suite 200
Hollywood, FL 33021

Phone: 954-962-8889
Fax: 954-966-6259
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