The Success of Flipping Real Estate

The definition of real estate property flipping is when a real estate investor buys homes and then turns around to sell them hoping to make a profit. To see a positive gain, the time between purchasing the property and selling it can range from months up to a year. Being your own boss and having the freedom to invest in real estate with the hope of earning more than a 9 to 5 job is very enticing. Here are two types of real estate flipping options:

  1. An investor buys a property and fixes it up to make money from selling the home at a higher price than what they paid for it.
  2. An investor buys a piece of property as is at a time when there is a rapid rise in home values. They hold onto the real estate for a few months and then resell it at a higher price to make an increased profit margin.

Property flipping sounds like a great way to increase your income, but is it for you?  Of course, the right strategy plays a key role in the success of flipping. There is financial planning involving a capital gains tax, the right type of return you can expect, and choosing the right real estate.

Even though you are considering flipping a home, you should still conduct an inspection. Use an experienced contractor who can not only point out the obvious but who can also inform you of any hidden surprises once you begin a repair job. Whether you have real estate experience or you are an individual who flips properties for profit, please perform your due diligence.

In other words, before you purchase a flip property, ensure that the title is clear and free from liens. Work with a knowledgeable business planning and consulting firm with high-quality services for real estate investors and business owner resources.

To be a successful flipper, let’s follow the money. When you buy a real estate to flip and fix it up, the profit you receive is taxed under the capital gains rules. To be excluded from paying a capital gains tax, you can fix up your property and live in it for over two years because you are considered a homeowner.

As a flipped property, the IRS treats your real estate purchase as an inventory purchase and not a capital asset. Therefore, the IRS categorizes your flipped property profits as plain income that is subject to a self-employment tax. To enter the real estate game of property flipping, you must be aware of your upfront capitalized costs because it is a pricey expense before you make a good profit.

Your capital costs generally include the following:

*price of your real estate property

*upfront and indirect material and labor costs

*utility costs

*rent

*insurance

*production period interest for capitalizing costs in preparing a property for development and sale

Real estate taxes

If your flipped property is a rental, first you fix it up and then you hold it for a year which very likely will help negate your paying long-term capital gains taxes. Also, if you flip a home within one year, your gain is treated as a short-term capital gain which is taxed at your area’s lowest tax rate.

There are many reasons why people invest in flipping real estate properties. The TV flipping stars enjoy working with their creative hands, plus they have the money and time. If you want to make your flipping improvements a DIY project, you will save money of course, rather than hiring several home improvement contractors.

At the end of the day, whatever your reasons are for flipping real estate, know the rules of the game so that you don’t get stuck with lemons you can’t turn around and sell, thus spending more than your gain would have been.

Your key factors in flipping involve knowing your tax liabilities and purchasing costs, which means choosing the right properties, refurbishing costs, holding costs you can afford, and consult with experienced real estate flippers and business real estate consultants to save yourself an expensive headache.

How to Invest in the Trump Economy

Politics and stock markets are very closely linked. Economic indicators are severely affected by political decisions, as are earnings. Considering we live in complicated economic times, not in the least due to the new Trump Administration, it can be difficult to predict how markets are going to move. However, experts like Stephen R Buzzi believe that it is possible to thrive economically during the Trump administration.

In the first few months following the presidential election, it was understandable that there was a lot of political uncertainty, something that is seen after every presidential election. However, it seems as if things haven’t slowed down at all, with one geo-political disaster after the other. And the result is that financial news websites are now filled with political headlines, and every political headline is a piece of financial news.

The Political Impact

President Donald Trump promised to restore spending on the US infrastructure, and he promised American jobs for American people. The direct impact of this was that the materials sector experienced significant growth – even though none of these promises have been made good on yet. Trump is struggling to really find his place in government, and this has an impact on the economy.

For instance, the IMF rapidly slashed their original growth rate, dropping it from the expected 2.3% in 2017 to 2.1%, and leaving it at 2.1% for 2018, down from 2.5%. This means growth is actually cut, and that is one of the many things that seems to hurt Trump’s ego. He did promise, after all, 4% growth, something that is looking increasingly unlikely.

A New Status Quo

According to Buzzi, it is important that investors learn to understand the difference between where growth truly is, and where it should be. This is done by looking at the GDPNow forecast instead, for instance, since they show what the current status quo is. Trump is not managing to get things done as quickly as he promised (look at the Affordable Care Act, for instance), and this means investors need to reset their projections as well.

Steve Buzzi warns that investors cannot ignore the political/financial headlines, however. These have had a significant impact and must be watched. However, this doesn’t mean established strategies and trends have gone out the window. In fact, most investor like Buzzi who have stuck to their old strategies have been very successful, experiencing consistent gains and solid wins, despite Trump’s administration.

The key difference is, however, that action now has to be swift in certain areas, and slow in others, and this seems to have been turned around. Hence, investors have to become more patient and they have to review their expectations of where the risks are. Buzzi has important strategic knowledge and can therefore understand which strategies will affect which items, and how the turbulence can be navigated through appropriately. Yes, there is a turbulent stock market, but that only means that investors need to continue to show confidence, despite political issues, or the economy could collapse.

Your 5 Priorities Buying A Family Car

Ready to settle down, start your family, and replace that flashy coupe with something a little more practical for a young and growing family? Exchanging the car of your youth for something more practical for a life that involves kids, dogs, commutes, and road trips can be painful at first, but with the right car, you’ll be surprised how much you enjoy it. When you’re trading in, these are some of the top features that should be on your priority list for a family car.

#1 Safety

When you’re putting kids in the back seat, there is no higher priority than safety. If you’re looking for a safe, affordable vehicle, the Mazda 3 was a 2017 IIHS Top Safety Pick+, ranking highly in terms of side and roof strength, head restraints and seats, front crash prevention, headlights, and other criteria. Every year, the Insurance Institute for Highway Safety awards its Top Safety Pick to those cars that meet these criteria, while Top Safety Pick+ winners offer that much more. In 2017, special emphasis was put on nighttime road visibility and headlight performance. When you’re visiting relatives out of town during a snow storm or going up to a relatives’ cottage on a summer long weekend, you’re going to appreciate the extra visibility of a Top Safety Pick+.

#2 Cabin Space

Driving around Toronto can be frustrating; negotiating traffic, finding a parking space, fitting between a delivery truck half-on the sidewalk to your right and a line of parked cars to the left. An SUV or even a crossover isn’t always the best option for city driving, but you still want a sedan with lots of room for kids and pets. According to Popular Mechanics, three of the roomiest sedans include the Honda Civic, the Hyundai Elantra, and the Mazda3 5-Door.

#3 Storage

You want a vehicle that can grow with your family, and that doesn’t always mean having more kids. Even if you want to stick to a family of 3 or 4, as those kids grow up, so will their interests, and that can mean lugging around a whole lot of sports equipment, musical instruments, art projects, and more. Make sure you get a car that can accommodate it all.

#4 Affordability

Mazda is already one of the most affordable family car brands you can find, but if you’re saving for a condo or a house in the city, you’re going want to save every dollar can and buy a used Mazda car. You can find great deals on Toronto Mazda cars at the right place. Look around Mazda dealerships in Toronto for a big inventory of new and used Mazda cars and ask about pricing. One place to start is Yorkdale Dufferin Mazda, an award-winning local Toronto Mazda dealer.

#5 Driving

Last but not least, just because you’re trading in for a family car doesn’t mean you shouldn’t get to enjoy driving at all. One thing that many car critics can agree on: for a responsible family car, Mazda keeps the fun in driving. SkyActiv and G-Vectoring technologies can make a big difference in your daily commute, and you can test drive them at a Toronto Mazda dealership like Yorkdale Dufferin Mazda. Don’t let practicality take all the fun out of driving when you don’t have to.

4 Tips To Help You Trade And Travel At The Same Time

Many people would love to be able to travel the world, however, most people can’t because of their job commitments. Some traders have, however, managed to keep making money while traveling the world.

What are these traders doing differently, and how can you make money while traveling to far-flung places? We’re going to look at this now:

Learn As Much As You Can About Trading

Before you head off to an exotic country and travel to places you’ve always dreamed of, you need to learn as much as you can about trading. Read up on the Timothy Sykes Millionaire Challenge, and gain as much knowledge as you can.

This is the ideal way for you to work, as it means you won’t be stuck in front of your computer reading up, while everyone else enjoys being somewhere special.

No-one can ever know everything about trading on the stock market, but you should get a lot of knowledge under your belt before you even think about stepping on an airplane.

Look For Internet Cafes And Hotels With WiFi

One of the best things you can do before you set foot in any country is to find out who has WiFi, where they are, and how long you can stay there. You’ll probably need to work at least a few hours every day, so you’ll need a base to work from.

Before you finalize the plans for your next trip, search online for internet cafes and hotels or hostels that have WiFi. Regular cafes in the area may also offer free WiFi, just make sure you buy a few drinks and snacks now and again, or they may ask you to leave.

Ask the staff at your hotel how much WiFi they offer for free. Some hotels will let you use as much as you want, whereas others will have set a limit. If you go over the limit it’s likely you will be charged for it.

If you’re about to reach the limit set by the hotel look for an internet cafe somewhere and complete your day’s work without worrying about being charged a fortune.

Keep Reading The Financial News

It doesn’t matter what country you’re in, or where you’re heading to, you need to keep up to date with the financial news. Set up your computer in the corner of your hotel room, or in the perfect spot on the beach, and find out what is happening.

Keeping on top of the financial news will help you to make the right decisions, thereby improving your chances of making a profit.

Don’t Make Assumptions About Profits

You may assume that you’ll do quite well as a trader, but this isn’t always the case. Some people make a lot of money on the stock market, but most just make a little here and there.

Don’t make any assumptions about how much profit you’re going to make, instead be realistic about it. It would be a shame if you booked 2 weeks at a 5-star hotel in Italy, assuming you could pay for it, when in reality, your profits may only cover a 3-day stay.

Trading and traveling at the same time can be a lot of fun, but it can also be hard work too. Make sure you learn a lot about trading before you hit the road, and look for places that have free WiFi so you can work.

Be sensible about what you can and can’t do, and you could find yourself trading and traveling for years.

What Are The Prices And Fees For Using IRS-EIN-Tax-ID?

Whenever it comes to submitting forms to the government, you already know that there are usually fees and costs that go with it. No matter what you do, Uncle Sam will try to squeeze a few extra dollars out of you in the process. As a new business, applying for a federal tax ID number is no different, although there is an easier way to submit your paperwork, rather than dealing with the IRS directly. IRS-EIN-Tax-ID application prices are comparable to what you would pay anywhere else, but the convenience is second to none. To help you understand what’s involved, let’s look at the application process.

Choosing an Entity Type

As a new business, what kind of company will you be? A sole proprietorship? A corporation? There are many different options from which to choose, and most of them will require an Employer ID Number (EIN) to file properly come tax time. If you’re unsure of which entity you should be, irs-ein-tax-id.com offers brief explanations regarding each one as well as the benefits and downsides of choosing them.

Filling Out the Form

No one likes to do paperwork, even less so when taxes are involved. Fortunately, you can do everything online, meaning that you don’t have to waste paper or cramp your hand by writing all of your information down manually. Simply type in the various details (as spelled out on the form), and you’re ready to go as soon as you hit “submit.”

Paying the Fee

As you may have noticed, that is fee without an S. When you apply for a tax ID online you only have to pay a one-time expense of $185. Best of all, because the process is so streamlined, you can get approval within hours so that you can get your business up and running. Also, should there be any issues with your forms, you can request a full refund, minus a small processing fee of $10.

Applying for an EIN may seem like a complicated process, but now it doesn’t have to be.