Get involved in AZ Residential Property Management and make MONEY!

GET RICH: Phoenix Property Management without the Hassle!!

We have found that many qualified real estate investors miss out on the opportunity because of a number of BIG misperceptions and misunderstandings. One of the most frequent concerns that comes up with such individuals is a concern over the time and effort it might take to manage an investment property. This issue is often compounded if someone has one property they are managing on their own and find it a challenging proposition.

Balancing the Effort and Rewards of Residential Property Management:

The important thing to understand is that the many financial rewards of owning investment properties is a separate issue from managing those issues. In fact, many experienced real estate investors learn very early that they prefer to use a professional property manager so they can easily add to their ownership portfolio.

Many individuals who own real estate property are retired or have the type of jobs where they can handle their properties on their own. These investors actually look at their ownership as a form of second job, or even a hobby of sorts. However, most real estate investors realize the cost of property management is a cost of business best handled by professional firms.

The simple fact is that if your job makes the opportunity cost of finding tenants or fixing leaking toilets too expensive, you can avoid these hassles with property management services.

The Value of Experience, Contacts and Volume

Today’s residential property managment company has a number of tools they can use, most of which are not available to the individual property owner. This includes sophisticated software, automated maintenance and inspection, and online payment systems.

Likewise, the experienced property manager will have a full contact list of reliable and cost-efficient tradesmen and repair people to call upon. They often get better prices on services and parts, and know they can get a job done in just one call. This makes for happier tenants and lower long-term expenses. This benefit also extends to the benefits of regular inspections and preventative maintenance, ensuring your costs in these areas are kept to a minimum.

In addition to these issues, the effective property manager will help you keep your occupancy rate at a higher level you may attain on your own. It’s important to realize that just one month of additional rent on a lease can cover most management fees for an entire year.

Let a professional property manager make your real estate investment hassle-free. KRK Realty & Mangement, top property management company in Phoenix is one of these such companies that can help you invest in rental real estate or help you manage your own home investments! 

Dont fall for the common Tax Day mistake by investing in the typical IRA or Roth IRa!

If you are one of the millions of Americans wise enough to regularly add to your retirement account, you understand the importance of planning ahead. However, unless you that process includes real estate, you need to reevaluate your strategy. You may not be tapping into the full power of this relatively UNKNOWN federally-approved way to save on taxes and accumulate wealth. Kevin Kirkwood helps many Arizona residents utilize this opportunity.

Make Your IRA the Landlord in AZ:
Many savvy investors understand the role real estate ownership plays in any well-diversified portfolio. However, only a small number of individuals realize that their retirement accounts, in particular self-directed IRAs, can purchase and own real estate and accumulate tax-deferred earnings.

Of course, it is common to look at real estate as an excellent way to legally minimize current tax liabilities while deferring taxes. However, it it important to know that ownership of many properties is best held in your tax-advantaged retirement account. This is especially the case for situations where your purchase generates significant returns from a property that generates substantial cash flow and profits.

The math here is simple. When you buy a property individually, you normally leverage it with a mortgage and use the interest, depreciation and other expenses to lower  taxable income. You effectively get a discount on the interest you pay a lender because it is deductible, and you save real dollars by having that deduction
.
On the other hand, your IRA doesn’t need this form of tax savings, as it already produces tax-deferred income. If, however, it becomes the banker, that interest normally paid to leverage a property effectively flows back to you, accumulating and compounding without taxes over the years.


Understanding the Relationship:
Looking at the situation another way, it helps to separate your current portfolio from your retirement portfolio. Let’s assume you have $300,000 in liquid funds in your retirement account, earning a blended average of 6 percent. Also, assume you talk with your accountant and they help you set up a self-directed IRA if you don’t already have one. If you put $150,000 in that account, it is effectively ready to serve as a bank and earn the interest you pay on your separate, leveraged real estate investments.

Once you have the account set up, let’s continue our hypothetical situation by having you buy an investment home with that $150,000 cash. Let’s also assume conservatively you will net $900 a month in rents on that house after all expenses, including property management fees and a 90 percent occupancy rate. It’s a simple calculation to show that you earn better than 7 percent on that cash flow, all now tax-deferred. That is before any subsequent long-term appreciation.
When you sell the house and take a profit, that return is also protected from taxes until you start drawing out your funds in retirement. Moreover, those profits also accrue compounded tax-deferred earnings while they sit in your IRA.

Investing in Real Estate is an Increasingly Popular Retirement Strategy
As more Americans accumulate substantial cash in their retirement accounts and interest rates remain low, billions of dollars are flowing into self-directed IRAs for real estate purchases. With the right property management firm, such as KRK Realty, this is a hassle-free way to increase your overall portfolio return while using the tax-deferred aspect of retirement accounts more wisely.


Of course, as with any such decision, be sure to check with your financial adviser to make sure of the current laws and regulations affecting any such decision. Once you do, Kevin Kirkwood will show you how to be a landlord in AZ and help you earn above-market returns.