SAVING INCOME TAXES THROUGH REAL ESTATE INVESTING…

SAVING INCOME TAXES THROUGH REAL ESTATE INVESTING…

?PART I OF II…

?Why do you invest in real estate??You want cash flow, appreciation, and income tax benefits.?You want DEPRECIATION!!!?But when you start digging down in the secret places in your mind and in your heart, you want security, and you want an asset that you can pass on to your children to make their lives easier.?But how do you find the right piece of property?

?Location, Location, and Location!?The three basic principles of real estate.?You make money and have an appreciating asset if it is in the right LOCATION.?How do you determine what is the best location to either build or buy real estate??There are statistics that you can easily find about areas in the United States where the population is moving.?They tell you what states and cities are growing the fastest.

?One of my colleagues, who will remail nameless, does podcasts all the time on the computer and he has charts and charts and statistics, and more statistics and I watched one of his podcasts once.?Yes, you need statistics to get an idea what state and near what city you want to buy or build multifamily housing or self-storage facilities or both or something else but then you have to get on the ground and put your walking shoes on and determine where you want to locate your real estate.

?But you don’t bet that a state or city is the best place, you bet that a NEIGHBORHOOD is the best location for you.?And you look at the statistics of what cities are growing the fastest and then get on the ground and talk to people.?You talk to store owners who decided, based on information that they had, that this neighborhood is going to grow enough to pay the mortgage on their house, or even give them the income to even buy a house.?They are placing their trust in the neighborhood to buy them groceries, a car, clothes on their back, all the necessities of life and a few luxuries.

?But you cannot stop there.?You have to go to the school and see the types of students that come out of the school at the end of the day.?You have to talk to the policeman who walks the beat and who has seen the changes to the neighborhood.

?I grew up in Flushing, Queens, New York.?That’s where Shea Stadum was and the new ballpark is, where the National Tennis Center is where they play the U S Open every year, where the World’s Fair was in 1964.?Most of you were not even born in 1964 but I was 18 and it was a GREAT place to take a date.?

?My parents moved to Flushing in 1952 when I was 6 years old.?Then the neighborhood was 99.9% Jewish.?Now, that same neighborhood is 99.9% Chinese.?Both groups and ethnicities are good for a neighborhood.?You have low crime and the schools, because of the makeup of the students, give a high quality of education.?A great place to build or buy.