This is a good topic to revisit every once in a while because apps are always improving, and they’re always coming out with new ones. Thinking back even 10 years now, I don’t know how we managed without smartphones! If you’ve been wanting to leverage technology into productivity and profitability, here are some proven solutions for real estate flippers!
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Read more about The Best Mobile Apps for Flippers
For good or for ill, county and municipal governments rely on property taxes to provide services to their residents. Police and fire protection and school districts all rely on homeowners’ timely payment of property taxes in order to fund their payroll and operations. And that’s where tax lien investing comes in. When a homeowner is delinquent in filing taxes, an investor sometimes comes to the county tax office and pays the tax on the homeowner’s behalf.
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Read more about Tax Liens
It’s been a long dry spell, but it’s looking like significant improvements are providing a better return on investment for real estate investors than they have in years. That’s good news for flippers, because that’s just one more way for a fix-and-flipper to add value.
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Read more about Renovations and a Margin of Safety
Here’s a bit of good news for small landlords: The Internal Revenue Service has introduced a “safe harbor” for deducting repairs to investment properties from ordinary income. Normally, the IRS does not allow you to take a full current-year deduction for anything they consider a renovation or improvement. They only allow you to take a first-year deduction on repairs, which the IRS defines as projects that do not materially add to the value of a property
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Read more about The Safe Harbor for Landlords
Depreciation is a double-edged sword. It’s a big part of why real estate works so well with leverage as an investment. Taking the depreciation allowance on investment property is a critical part of the attractiveness of real estate investing, from the point of view of the cash-flow investor. But the rules governing depreciation are notoriously baffling, and occasionally trip up even tax professionals.
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Read more about Real Estate Depreciation Tips
Tax season is here – and as any veteran flipper knows, it ain’t what you have – it’s what you get to keep. In the flipping business, deductions are crucial. Unless you have a handle on your expenses, and can accurately deduct them, the Internal Revenue Service can only tax you on your gross. If your record keeping is slovenly or you aren’t alert to the deductions you can take, even getting 90 percent of your deductions right is enough to murder you.
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Read more about Tax Deductions for Flippers
President Obama indicated last Friday that he will sign the Homeowner Flood Insurance Affordability Act of 2013, which eases the earlier Biggert-Waters reforms and grants property owners a reprieve from a planned sharp increase in flood insurance premiums. The problem is that politicians have overruled the actuaries for years, setting National Flood Insurance Program premiums far too low. As a result, the NFIP is, well, actuarially insolvent.
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Read more about The Flood Insurance Affordability Act
Plumbing can be a flipper’s nightmare, because leaky or corroded pipes can cause problems that are not readily apparent to the eye, but become all to obvious when you start making modifications to the home. You can think you’re replacing some old tile, or redoing some drywall, and encounter a nightmare of leaky pipes, water damage, mildew and wet rot that was invisible when you inspected the property.
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Read more about Avoiding a House With Plumbing Problems
Last July, I warned that policymakers in Washington, increasingly desperate for revenue, were beginning to look hungrily at the home mortgage interest deduction. Indeed, I specifically pointed out to readers that Representative Dave Camp, (R-Michigan), and the chairman of the House Ways and Means Committee, was holding hearings collecting testimony designed to undermine the case for the home mortgage interest deduction. Camp is making his move.
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Read more about The Tax Reform Act of 2014
Don’t look now, but the federal government seems to have developed a website that actually works! The Consumer Financial Protection Bureau – the federal watchdog agency created under the Dodd-Frank financial reforms of 2010, has created a site that aggregates mortgage data nationwide and collects it in a series of well-executed infographics.
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Read more about The New Mortgage Data Website