#1 Phrase Heard This Week From Real Estate Investors & Agents
Posted @ 12:41 am - Filed under 1031 Exchanges, Real Estate Investing, Purposeful Planning, Buying Income Property, Investment Lessons, BawldGuy Axiom
Today I bring you a quick principle. It’s not new, here or anywhere else. I bring it up often in fact. But this week, beginning this past weekend, I’ve heard this phrase at least a half dozen times.
“Nobody’s ever told me that before” OR “I’ve never been asked that question — I wonder why?” OR “If we hadn’t talked today, I’d of done exactly what you just told me to avoid. Wow.”
It was about variations on tax law as it relates to tax deferred exchanges. What to pay attention to when making offers on income property. Why it could matter big time what time of year you close escrow. Why one part of the country could be affected by certain strategies, while another blissfully trudges on. The potentially severe consequences of proceeding without that one little nugget of info can be staggering. That’s not hyperbole by any stretch. Hint: The IRS has no sense of humor.
Forging ahead without understanding what you simply don’t know, can, and more often than not, will make your life miserable. Hittin’ a wall you didn’t know was there ain’t cool no matter how you dress it up. We’ll discuss some examples later this week. The irony is, the consequences can be so outa whack compared to the simple actions a real estate investor can employ to avoid them.
Contrary to popular belief, ignorance is best dealt with (Read: Cured) not by emergency action, but by actual real world knowledge. Go figure.
There’s a distinction between proceeding with caution, and knowing which way is north on the dang map for Heaven’s sake. There is no designated safe corridor in real life. You either know, or you don’t know. Do we cut the red or the blue wire? BOOM!! Oops.
BawldGuy Axiom: For most real estate investors ‘proceeding with caution’ means hoping they’re not missing anything when they pull the trigger. Surveys have shown conclusively this is, many times, a dangerous strategy. Just sayin’…
I invite you to listen to both Purposeful Planning podcasts, Grandpa Economics, and my personal favorite, Close To Retirement.
One of the above mentioned conversations saved an agent’s client well over $20,000 in taxes. It wasn’t the agent’s doing. She was protecting her client, ‘who read a lot, and knew they were right’. Her client owes her a free lunch fer sure. (And there should be cloth napkins.)
Don’t be one of those real estate investors who, after the fact, wonder why ‘nobody ever told me that before’.
Before ya make any more moves, call or email me. I wanna hear yer story. I love this stuff. Hit the Contact BawldGuy whatchamacallit. It works. He who is Without Hair is awaiting.
This entry was posted on Wednesday, July 16th, 2008 at 12:41 am and is filed under 1031 Exchanges, Real Estate Investing, Purposeful Planning, Buying Income Property, Investment Lessons, BawldGuy Axiom. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.