The Major Tax Benefits of Real Estate



Do you know about the tax benefits to homeownership? We’re talking about two of the most common today.
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Before we start, let me just say that I’m not an accountant or tax attorney and you should always consult those people before making a final decision on real estate sales or purchases. However, there are certain tax benefits to owning real estate that you can take advantage of if you decide to take the leap.

Right now in 2019, a homeowner who is selling a house is allowed to take $250,000 from that sale to buy a new home without having to pay taxes on it. For married couples, it’s $500,000. If a home was purchased a few years ago for $300,000 and then sold for $800,000 at a later date, you have $500,000 in gross proceeds that you can use as a down payment on your next house without having to give the government a cut. 

For investment properties, a 1031 exchange is also a great tax tool. It allows you to defer your taxes to your next investment property. You will have to pay taxes when you sell the property, but you can also leverage your investment to get something that can make you more money in the future without having to pay taxes on it again. There are plenty of accountants we know who are experienced in this and can help out if you need it.

A 1031 exchange allows you to leverage your investment.


If you want to build wealth in real estate, these are two very important things to know about. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What Financing Options Do First-Time Investors Have?



Today, let’s discuss the options you have if you’re looking to become an investor but are struggling with the financing.
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What can you do to get your first investment property if you don’t have enough for the 20% down payment?

Actually, you have a couple options in this situation:

First, if you don’t have enough for a 20% down payment, there are other loan programs for investment properties to consider. Some companies can offer down payments as low as 5% for some properties! Of course, the market always changes and we’ll constantly have to update our understanding of what is available, but regardless, there are programs with requirements other than the traditional 20% conventional loan.

Second, try bringing in a partner. If you’re taking the steps to buy your first investment property and you’re willing to do all the necessary work to find the deal but you don’t have the cash to make it happen, you might work with a partner who can fill in that half of the equation.

Who would count as a viable partner? Well, tell the people you know and trust—like your friends, family, neighbors, etc.—about your goals and dreams. Give them the rundown of your plans and see if they’re interested in joining you in your venture. There are plenty of people out there who might have the cash, but like the hustle, and it’s through them that you have an opportunity to get your foot in the investment door. It won’t necessarily be easy to find the right person at first, but finding a well-funded partner to match your drive and vision is a good way to overcome that barrier.



If you want to get into the investment game, there are opportunities in the market to be had by those with the proper drive.

Lastly, look for a contract-for-deed. Now, because the market is doing so well, there won’t be a lot of these opportunities. But again, the market always changes, and eventually these contract for deed options will come back in a stronger suit. Essentially, a contract for deed is an arrangement in which the buyer makes regular payments to the seller until the amount owed is paid in full or the buyer finds another means to pay off the balance. Until the balance is paid, the seller retains legal title to the property. If you can find a seller who wants to keep their cash flow but doesn’t want to take the tax hit, this may be a viable option for you.

Ultimately, if you want to get into the investment game, there are opportunities in the market to be had by those with the proper drive. If you’d like to dig into this topic further or if you have any questions, feel free to give me a call. We can put together a plan for you to help you build wealth. I look forward to hearing from you soon.

Is It a Good Idea to Sell to a Cash Offer Company?



Selling your Minneapolis home?
Check out our free home value report
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I get a lot of questions from homeowners about the advertisements you see from cash offer companies. These advertisements promise to buy your home as-is for cash and close in a very short timeframe (e.g., 48 hours). 

Is it a good idea to sell your home to one of these companies, though? 

In certain situations, yes. If you need to move out of your home quickly and have it sold within a week, for instance, this is a great option. 

If this doesn’t apply to you, though, there’s one big drawback that comes with selling to a cash offer company: You won’t get a retail offer (i.e., maximum value). 

Since these companies are essentially investment companies, their goal is to either sell your home after they own it or rent it out and make a profit, and part of that process requires making an offer below market value. 



Since these companies are essentially investment companies, their goal is to either sell your home after they own it or rent it out and make a profit.

If you have a longer timeframe in which to sell and you’re looking to get maximum value for your home, you’re better off listing the conventional way with a team such as ours. 

If you’d rather consider one of these cash offers that will allow you to sell quickly, don’t hesitate to give me a call, because I can refer you to several buyers who’d be interested. 

If you have any other questions, feel free to reach out to me as well. I’d be happy to help you.