We know investing! In the last decade we have invested across the real estate spectrum – single-family, multi-family, townhome, lots and small commercial properties, both in the city and in the suburbs. We have purchased foreclosures, properties that needed rehab and other properties that made sense from a cash-flow perspective. The knowledge and experience we gained from this decade of being landlords and remodelers has proved invaluable in assisting our clients today.
There are several questions that people interested in investing need to answer for themselves to make sure they understand their real estate investment strategy.
- Is your primary objective equity upside or cash flow?
- Do you want to self-manage the property or hire a property manager?
- To what degree do you want to use leverage (i.e. debt)?
- To what degree do you want to remodel a property?
- How long do you want to hold the real estate for?
As experts in this field, we are able to talk clients through the pros and cons of each to help them understand the upside and downside to each decision.
Also, when it comes to real estate investing there are several tax advantages that are beneficial to real estate investors. One huge benefit of working with the Deveau Realty Team is that John is a licensed CPA in Texas. As such, John is able to talk clients through each of the tax benefits, which include:
- Homestead exclusion on gain of sale of your home
- Step-u basis for property passed on to beneficiaries
- Lower capital gains tax rates for property held more than one year
- 1031 tax-free exchanges
- Depreciation as an allowable expense
- Rental income not subject to SE or FICA taxes
- Tax free borrowings against equity in property (as allowed by lender)
We believe investors that have a well-thought-out investment strategy (i.e. they know why, how and where to invest), and understand the specific tax benefits based on that investment strategy, always results in a much happier outcome. All too often we hear something along the lines of ‘we have some money saved and would like to purchase another property as an investment’ and that is the full extend of the investment strategy. To say it bluntly – a rudderless ship ends up going nowhere. You first have to know where you want to go and why, and then with our expertise, we can offer you the advice and real estate services to help you get there.
Our Services to Landlords
Having been landlords for many years we know that finding a good tenant is of paramount importance. We market your home in a way to make sure that you are attracting qualified applicants. Also, as we have a vast network of contractors we have used in the past, we are able to make recommendations to our clients for almost whatever their need may be.
We know from personal experience that the holding periods on certain rental properties may not be forever. As such, we are able to help clients understand the financial comparison of selling vs. renting to evaluate what the likely cash flow vs. equity outcome would be. Due to lifestyle changes or being in a different season in life, one’s investment thesis may have changed and instead of managing a dozen rental properties they would like to ‘cash-out’ and pursue other investments. Regardless of your need as a landlord, whether it is to find a new tenant or to partner with you in the sale of your rental property, we are a team that help you with your real estate goals.
If you have been a real estate investor for many years or just getting started, working with the Deveau Realty Team means you are working with a team that has experience and knowledge gained from real hands-on experience. Unlike the many real estate infomercials that one may hear on T.V., we will tell it to you like it is and provide you with realistic expectations.