Real estate investments can offer a distinctive combination of advantages not found in other financial opportunities.
derived from borrowing capital to acquire the investment, potentially creating a larger return than if the principal had been invested on an “all cash” basis.
rather than the quarterly or yearly dividend typically received from investments such as stocks, or others that offer less frequent income payouts. Also important are the tax-sheltering possibilities of real estate income.
which shelter real estate income through depreciation of property value and interest deductions. In addition, capital gains taxes can be deferred when exchanging investment properties through a
1031 Exchange
- They do not want the responsibilities of property management.
- Finding appropriate properties in which to invest can be difficult.
- It can require putting large investment amounts into a single asset, even with the leverage afforded by real estate.
- Management responsibilities limit them to investing in properties that are close in proximity.
Over the past 50 years, a variety of investment options have helped alleviate these concerns, while maintaining the inherent benefits of investment real estate. Collectively, these options are known as
Co-Ownership of Real Estate (CORE) investments.