Investments: Buy and Hold

Real estate in New Jersey offers great long-term investment opportunities both in diversity and yield. Two of the unique aspects of real estate investments are leverage and depreciation.

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What leverage does, is allow you to use OPM (other people's money) to fund your projects. As long as the yield on the investment is higher than your financing interest rate, you are making a return on your investment, and all the amount you financed! In addition, every dollar paid towards the principal gets you closer to having enough equity to start your next project.

 

The benefit of depreciation is that it allows you to have a large deduction over many years, without actually investing any more cash, with a payback that is taxed at a lower capital gains rate. Or better yet, do a 1031 exchange at the end of the asset's life, and defer the tax altogether.

 

Add to all that the fact that, even when an investment results in no gain or worse a loss, dirt can never go to zero value.

 

We are experts at finding and evaluating investment opportunities.