When we talk about financial goals, most investors immediately think of cash flow and Cap Rate. If you are making decisions on your investments based solely on these factors, you may be missing the bigger picture.
Taxation:
The issue of taxation is an ever changing one however, when partnering with your accounting professionals we are able to plan for long term saving in your marginal tax rate through depreciation. While most investors understand the concept of depreciation, the cost recovery calculations and resale implications to your investment yield may be an area that our professionals can show how a little planning now can add to your investment performance in the years to come.
Cap Rate Versus Internal Rate of Return:
Cap Rate is an effective gauge of performance of a real estate invest today. The problem with Cap Rate is that it is only a snapshot and does not take into account the full term of your investment. When we look at an investment from a Internal Rate of Return aspect, we will see the long term rate on your investment over the entire term.
Managing Income and Expenses:
Income and expenses are the basis for your investment value. If your management of these expenses is not managed well, your property resale value, appraisals and potential refinance opportunities could be at risk. Our consultants can perform periodic reviews of your operations that can save you from costly mistakes at the time of disposition.
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