Lease options and pure options are the best investment tool available for investors. They allow minimum investment of cash with higher returns without risk. They are invisible, portable private and not attachable. They can also be exchanged tax-free under code section 1031. They can be used for real estate, mortgages, sales contracts, agreements-for-deed, personal property leases and more. They can avoid the liability for lead based paint, pollution, sinkholes, mold and other problems related to the ownership of real property. Under conditions option properties could be depreciated and exchanged tax-free.
Land trusts are the best title holding entity for real estate and they can be used in all 50 states. They have been used in Illinois since the 1890s and several other states have added trust statutes. They offer many benefits not available to other title holding entities. A land trust as an operating system delivers benefits in all phases of a real estate business. It provides a management structure, a partnership and syndication system, a financing alternative, an estate planning tool, a firewall, and much more. It changes the character of real estate to personal property where witnesses and notaries are not required to transfer ownership. Tenants, bureaucrats, tradesman, contingency fee attorneys and many others are discouraged by the privacy barriers of the land trust.
IRA-401k Checkbook Control
Less than 2% of the people in the US have control over their IRA funds. Many people have their funds in the stock brokerage or bank accounts that are performing very poorly. Real estate investors see many opportunities for IRA investments and they can easily double their account each year by taking advantage of options, contracts that can be assigned, wraparound loans, sandwich leasing, buying and selling a property, and many other higher leverage and safe techniques. Pension plans and 401K’s can be transferred to independent IRA custodians and eventually to a trust controlled by the taxpayer.
A 1031 Exchange must be carefully arranged giving consideration to all applicable rules within the IRS tax code. (Cost for a complete exchange is $650.00) Keys Capital Inc. plays an integral role in this process by providing investors and their legal, financial, and real estate advisors the level of assistance needed for a successful 1031 exchange.