Did you know that if you own investment property - and you sell that property, usually you will have to pay capital gains tax on it? This can be VERY expensive for US investors - but NOT if you use a 1031 Tax Exchange!

This is because the IRC Section 1031 allows investors to defer their capital gains taxes indefinitely by transferring their gain into another like-kind property of equal or greater value.

The 1031 exchange is Uncle Sam's gift to the US tax payer - in that it's like an interest free loan that is indefinite.

Contact a company to act as your qualified intermediary to successfully facilitate your exchange.

Sooner or later, most of us decide to make the metamorphosis from renters to home owners. Finding homes for sale in Minneapolis can be a smooth process for the home buyer if they are careful enough to use a professional real estate agent.

Some people make the mistake of thinking that they can save money by NOT using a real estate agent - and this is a misconception that will actually cost you extra money when you buy!

This is because there's so many new ideas for first time home buyers in  to beware of. For instance, a 1st time home buyer can get as much as 30 to 35 thousand dollars MORE in financing than someone who has previously purchased a house in the past! Just understanding this is a substantial point to make certain your mortgage broker knows so that when you go looking for Minneapolis homes for sale you know how much you can afford to buy.

When you are buying a Minnesota home for the first time it can be very pleasing. It can also be extremely unnerving. There’s a lot of info to comprehend in a relatively short time period. There is new terminology to learn and you will have a dozen or more questions!

From a psychological standpoint, whenever you’re studying new information you only remember around 20 percent of the first exposure to it, so even though you already inquired about something, you might need to ask it repeatedly before it ‘sinks in’. A good Realtor in MN will know this and use it to bring all the home buyer’s terminology to a more simplistic level so that it can be perceived by your brain. It is not even a bad idea that you to write the answers down as you speak with them so you can recap the info later.

As a first time buyer as well, you’ll have the ability to get all the first time buyer loan programs that other people can no longer get! Why is this good news, you ask? That’s because now you can buy approximately thirty-thousand to thirty-five-thousand dollars MORE of a home in MN same monthly payment as other home owners. These programs are available basically because Uncle Sam wants people to own Minneapolis real estate. They feel that you are a more stable and responsible individual in order to purchase, and manage your own house, so they’ve made these incentives available to encourage anyone that is “on the fence” about their 1st purchase and to make it a bit easier!

And as for new buyers the 1st main inquiry is typically ”what do I do first?”. Some people begin on the internet or in the local paper looking at what is available and that’s a perfect way to see what is in your area, but now when can you see them? That is where I come in. If you want to make an appointment to visit the inside of a place for sale, a MN Realtor must set up that appointment for you, obtain the codes for the lockbox & open the houses up for you. Your Real Estate Agent is accountable for everyone that enters that house as well. Once you start viewing houses as well, consider speaking with someone at a lending institution or a bank as well, to make sure you are looking at a pricing bracket that you can qualify for (as well as afford). Some home-shoppers are taken aback when they qualify for less or more than they thought and were looking at the wrong housing for their income bracket, squandering their own precious time.

Beware  too, that a lot of Minnesota Realtors in the business will try to get you to sign an agreement right away that says you’ll work with them and only them. You don’t need to sign anything like that. They are just attempting to assure that they “lock you in”, but you can literally try different Realtors and use as many as you like. Or even interview them to see who you like best & who’s going to serve your needs! At the end of the day, they don’t won’t be paid until you purchase a house using their services and even that is paid of the seller’s fees, not the buyer’s!

“I plan to buy my first Minnesota investment property this year.” That is something you can make a plan for and ask some questions about. The questions you may want to ask are, do I have the capital to buy Investment properties in Minnesota outright? If not, can I borrow the money or find partners? What type of income property do I want to purchase? Make up a concrete goals so that you have something to work with. Now you can take steps...

Perhaps the investment is a larger property - (like an apartment building for example). In that case, you may actually be able to find several investors to go into the deal with you if you can afford to put down a percentage. It depends on your skill at locating deals. That is a skill that will need to be developed. There is no time like the present to begin!