We are Gareia Georgia Real Estate Investors Association Issue10: Invest in Yourself with Real Estate November/December 2016

PRESIDENT'S CORNER

Election Year Thoughts

By the time you are reading this the election will be behind us. Regardless of who won, we can be thankful that as Americans we have much more control over our own financial well-being than any of the candidates do. Even when tax laws change and taxes increase certain wealth-building principles will remain the same: invest early and wisely, spend below your means, and learn how to minimize the tax bite as the rules change.

Let’s take a short look at each of these.

  1. Invest early and wisely. Start early to reap the benefit of compounding over time. As earnings are added to your nest egg you can watch them grow faster over time. Eventually these earnings should grow to cover your spending. Also learn to invest wisely without taking undue risk. Warren Buffett’s Rule Number 1 was “Never lose money.” When asked what Number 2 was, he replied, “See Rule Number 1 Always protect your principal when seeking greater returns. One reason landlords at GaREIA have chosen real estate as a path to increasing wealth is because it can provide a relatively steady stream of income while the underlying value of real estate generally goes up over long periods of time.
  2. Keep spending below your means. This sounds simple, but many people spend their paycheck and then wonder why they do not have enough to start investing. The savings and investing have to be a high priority. Many financial advisors suggest at least 10 percent of your income. But the bottom line is that by spending less and investing more you will be able to achieve financial freedom sooner.
  3. Minimize the tax bite. Learn strategies to reduce taxes such as the use of depreciation to offset earnings from rental property. Understand rules for long- term and short-term capital gains taxes and the tax rates for each. Did you know that the lowest long-term capital gains tax rate is 0-percent? Most people qualify for Roth IRAs and this can be a very effective tool to accumulate wealth tax-free. A Roth Solo 401(k) can provide greater benefits. A 1031 Exchange can let you trade up your equity in a property into another property, thereby deferring capital gains taxes. And Section 121 of the tax code lets you keep $250,000 tax free gains from the sale of a personal residence, or $500,000 for couples. Perhaps best of all is that you do not have to be a CPA to understand all of these strategies. Just spend time learning from those who master these techniques and figure out which ones make sense for your given situation. And learn how these masters adjust their strategies as the tax laws evolve.
Change is inevitable. There will be some people who blame circumstances and make excuses. Others will see varying degrees of success based on the efforts they have chosen to make. Who is in control of your financial future?
By Mike Jacobson, GaREIA President

GaREIA MOTIVATIONAL MINUTE

GRATITUDE: THE SECRET TO SELF-MOTIVATION

Research shows that an “attitude of gratitude” can measurably improve your overall well-being. Finding little ways to express your appreciation and be more thankful can... well, watch this short video to find out

A Season of Giving.... Happy Thanksgiving

GAREIA GENERAL MEETING

Monday, November 14, 2016 - Doors open at 5:30pm Wyndham, 6345 Powers Ferry Rd, Atlanta 30339

“Top Investment Strategies Without the Hassle of Tenants, Toilets or Trash: How to Make Big Profits with Small Storage Facilities”

Scott Meyers, Keynote Speaker

Scott Myers - Small Storage Investor Expert

What You Will Learn at the Event:

  • The 3 Reasons why Self Storage is Booming and why you need to get into the business Right NOW!
  • Why Self Storage has higher profits than ALL other forms of real estate
  • How to find undervalued deals (where nobody else is looking!)
  • The multitude of ways to fund Self Storage deals and a little known government loan program that allows you to purchase them for $0 down!
  • How to FINALLY create passive income in real estate without all the hassles of tenants, toilets, and trash
  • How to buy unwanted commercial real estate for pennies on the dollar and convert to high demand Self-Storage
  • How to create a hands-free management system for your Self Storage business using kiosks.
  • How to earn $10,000 finder’s fees in our new earn while you learn referral program.
  • The two reasons why this is one of the hottest markets (huge demand) in the United States for Self-Storage Facilities
  • PLUS – Scott will reveal the biggest real estate play in the nation in 2016...
December General Meeting & Holiday Celebration

GaREIA 2016 Holiday Party & Vendor Tradeshow

Come celebrate the season with GaREIA, good food, good friends, special entertainment, and networking with our Business Associate Sponsors!

Featuring Alan Reyes, Motivational Speaker, Trainer, Hypnotist, & Real Estate Investor

Alan Reyes in action

Monday, December 12, 2016 5:30 - 9:00 PM Wyndham, 6345 Powers Ferry Rd, Atlanta 30339

Tickets only $20.00 per Member &/or Guest! ($50 Value) for a Grand Buffet Dinner!! Plus Entertainment, Prizes and Surprises! This event sold out last year so grab your spot early!

Limited Seating - Only 100 tickets available! Reserve Your Seat Today!

MUST PRE-REGISTER BY

WEDNESDAY, DEC 7th AT 12 PM!

Join us to celebrate the holidays, our achievements in the year behind us, and the great things ahead in the New Year of 2017!

GaREIA Holiday Party 2015
We are collecting for Toys for Tots. Feel free to bring a new unwrapped toy and drop it in the Toys for Tots Collection Box at the party! The Collection Box is also at the GaREIA Headquarters if you would like to drop it off there.

89% Of Investors Want To Put Money In Real Estate A New Survey Shows

By John Triplett

A new survey shows 89 percent of U.S. investors are interested in putting their money into real estate to benefit their family in some way and want to be geographically close to their investments, according to a release.

The survey shows 80 percent of investors believe a real estate portfolio is one of the best financial legacies they could leave for their family.

The new survey says that family is a driving motivation behind real estate investments, much more so than property flipping, according to the Better Homes and Gardens Real Estate survey done by Wakefield Research.

Where Buyers Found their Homes

By Brad Beckett

Sometimes, conventional wisdom just goes without saying. However it is good to step back and look at the data. This week’s infographic (courtesy of the National Association of Realtors) reveals that nearly half (44%) of home buyers found their home on the internet with barely 1% doing so using a newspaper. Keep that in mind when you’re ready to move your next flip.

National Association of Realtors
Median Seller Tenure Steadily Increased Since 1985

By Brad Beckett

According to data form the National Association of Realtors Profile of Home Buyers and Sellers, the median seller tenure has steadily increased since 1985, where it was 5 years compared to 9 in 2015. The highest value was in 2014 when it crept up to 10 years.

National Association of Realtors Profile of Home Buyers and Sellers
“…market changes in the last decade have caused sellers to remain in their homes longer, increasing the median number of years in the home by 50 percent more than they did 20-30 years prior.”

How Supply & Demand

Impacts Real Estate

By Brad Beckett

The law of supply & demand is one of the most fundamentals of Economics. Buy low, sell high….We’ve heard it time and time again. The folks over at Keeping Current Matters recently assembled this handy chart (using data from the NAR) showing how Supply & Demand impact the real estate market.

Keeping Current Matters

Happy Holidays from Our GaREIA Family

to Yours!

Always remember, GaREIA is here to provide educational material, not legal advice! Do not apply this information to your specific situation without the advice of an attorney and any other appropriate professionals.
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