Month: August 2020

When you have something valuable, you want to make sure that you keep it safe.  By investing in the right types of protection and insuring your real estate property and the things that you hold inside of it, you will have the ability to keep the things that are valuable or have the ability to replace them.  One of the ways that you can ensure protection of your property is by asset protection.  

Asset protection is a plan that is designed to protect your real estate and the things that you own inside of the real estate.  If any type of financial disaster occurs, you will have replacements and ways to ensure that the value of your property isn’t lost, even if something unexpected happens.  

If you are just looking into asset protection, you will want to look at possible options through your own investigation or through talking to a lawyer.  An analysis will be taken of the amount of money that you can protect as well as how your valuables are linked to the demographics of the area.  Once the assessments have been made, you will be given an estimate of how much money you can receive in protection as well as the programs that may be best for you.  

The asset protection that will be defined when you have this analysis done will vary according to the state law.  Retirement and disability benefits are usually not considered a part of asset protection.  Personal items may also not be included in asset protection.  Things such as furniture, clothing, jewelry and other personal assets will most likely not be covered.  Some states will allow a certain percentage of these assets to be covered instead of providing full coverage.

If you want to make sure that what you have received the most in case of an accident, then your real estate investment shouldn’t just include finding the right loan.  It should also include looking at the assets and finding the best ways to get the most out of them.  By protecting what you own, you will be more likely to keep what you love.

If you’re renting a home, apartment or a condo it’s important to know that your items are not insured under the home owner’s insurance policy. That means if there is a fire, theft, or any damage to the home, your belongings are not covered. 

Here are some things to consider:

• Renter’s insurance is sold by traditional insurance companies. You can likely find a policy with the same company you have an auto insurance policy with. And financial advisors and planners often sell this type of insurance.

• Renter’s insurance is generally very affordable. Not at all like a home owner’s policy which can be quite expensive. This is because renter’s insurance simply covers the cost of replacing your belongings, not the home or exterior. Even though renter’s insurance is easy to find and generally inexpensive, it still makes sense to compare policies, their coverage and the rates. You can find a competitive rate with a few minutes of research.

• Most policies cover the full replacement cost of your belongings. Take a look around your home and consider what it would cost to replace them if the home burned down. Probably more than you want to lose, right?  For a small annual premium or a monthly payment, your items are covered.

• Policies generally cover against theft, fire, vandalism, and electrical damage. They typically exclude flood and hurricane damage however you can often purchase extra coverage or a rider if you’re concerned about these issues.

• One thing many people don’t know about renter’s insurance is that personal or family liability coverage is generally also part of a renter’s insurance plan. This means you don’t have to deal with the financial cost of civil liability cases that stems from injuries on the rental property premises.

Before you apply for renter’s insurance take an inventory of what you have. Take photographs and list each item with replacement costs. You can also take a video tape if you don’t want to take hundreds of photographs. This will help you estimate how much coverage you need and it will certainly come in handy if anything ever happens and you need to file a claim.

Once you choose a policy and file an application for insurance, make sure to review the policy when you receive it in the mail. Make sure everything is stated as you expect it to be and be sure to ask questions now. It’s better to have the answers before anything happens.

Renter’s insurance is an important step to take to protect your belongings and your assets. It’s relatively inexpensive and easily available.

There are several ways to benefit from owning property and being involved in real estate.  Not only does this come from finding the right property, loans and people to work with, but also moves into finding the best ways to save money while you own a property.  One of the well known ways to save an extra dollar is by becoming involved in a 1031 exchange.  

A 1031 exchange is a specific tax form that can help with the profits and losses that you have received for the year.  They are usually used for those that own extra real estate property as an investment.  This form will allow you to roll-over the profits that have been made from a sale made from a real estate property.  From here, you can purchase another property instead of paying the tax back on the property that was already purchased.  

The major benefit of a 1031 exchange is that it allows for you to be able to delay specific taxes and instead invest into other properties.  If the property is invested in, then the taxes that are taken from capital gain will not be used later on.  A second benefit to a 1031 exchange is that it allows for more equity to be a part of the investment.  Because of this, each time you invest in a new property from the 1031 exchange, the properties will gain a higher value.  

The one thing to keep in mind if you are considering a 1031 exchange is that the new investment has to be what is known as kind.  This means that the investment must be the same as the property that has already been made.  Before getting into a 1031 exchange, it is important to consider this point, as it can cause problems with new investments later.  However, if you have enough that was made out of the purchase for the 1031 exchange, you can purchase more, or fewer, amounts of the same type of property.  

If you are moving into building your own type of benefits from real estate, then knowing about the 1031 exchange is important.  This will help you with getting more out of your property and laying the foundation for your success in real estate.