Posts

Showing posts with the label real estate

Opportunity Zones and other Bonus tax Incentives of Puerto Rico

Image
For over a year now we've been hearing about Opportunity Zones and Opportunity Funds if you're an investor or contemplating investing and haven't heard about them get on board. There are over 8,700 zones across the United States, territories and the District of Columbia. 863 of which are designated zones just in Puerto Rico alone that's 98% of the island.  Below is a small synopsis of the tax benefits to an investor investing in a Qualified Opportunity Zone. For example, if you sell any kind of security like stocks, real estate, etc and you invest your gains into a Qualified Opportunity Fund within 180 days of the gain these are the benefits. Please note you must make investments into the fund no later than December 31, 2019, to realize the full tax benefits of the fund .  Investment in the fund for 5 years there is a 10% deferral on your capital gain tax Investment in the fund for 7 years there is a 15% deferral on your capital gain Investment in the fund for 1

Opportunity Funds Vs. Act 185 "private equity funds"

Image
The new Real Estate investor buzzword these days is "opportunity zones". The frenzy is about the investor tax exemptions offered by investing in these zones. The US has already designated   8,700 zones across all the states, territories, and the District of Columbia. https://eig.org/news/opportunity-zones-map-comes-focus It is estimated that there is approximately 6 Trillion in unrealized gains . The benefits of the opportunity zones offer investors the opportunity to defer their capital gains for the next 5, 7, or 10 years. The break down goes as follows: Investors who invest in opportunity zones and wait 5 years will get a 10% deferral gains realized. If an investor waits 7 years to realize their gain, there is a 15% deferral. And if an investor is willing to hold our for 10 years there is a 100% exemption on all the gains. Now, this is where Puerto Rico's opportunity zone sets itself apart from the other 8,700 opportunity zones out there. Act 74  The T

Realtors perspective on Crypto and Real Estate

Image
Over the last 20 years, we have seen the Real Estate industry evolve. In 1998 I received my Real Estate license and studied from Gurus of the time like Carlton sheets with his no money down methods. To this day, many of those methods are still applicable. Being an investor has helped me as a realtor. Most Realtors I know are also investors. It just goes with the job description. After all, we are in sales, and most Realtors are there own best customer. Through the years, we have helped hundreds of homeowners and investors buy and sell properties. We have survived the inflationary cycles and have learned to adjust to the cyclical market conditions. Many seasoned Realtors will recall the recession, which started in 2008 and peaked in 2010. As a result of this bubble, cryptocurrencies were born. Here we were in 2019, Cryptocurrencies are a new asset class, and Real Estate has fully recovered and completed another inflationary cycle. As a Realtor, we have seen, over the last few ye

How to buy real property in Puerto Rico

Puerto Rico law does not prohibit or restrict a foreign person from purchasing real estate in Puerto Rico. Under Puerto Rico law, the title is referred to as fee simple and can be by a purchase and sale, gift, inheritance, exchange or by adverse possession just as the United States does. Fee simple entitles the owner to sell, transfer, mortgage, encumber, lease and/or use the property, subject to zoning regulations and recorded easements, covenants and other liens and encumbrances. Fee simple title can be acquired by a private contract between the transferor and transferee. However, if the parties wish for the transfer of title to affect third parties, the title must be transferred by a public deed executed before a notary public in PR. A certified copy of this deed is then recorded  at the Registry of Property of Puerto Rico (the “Registry.”) Parties to a real estate transaction must pay stamps and recording costs upon the execution of a deed which is to be filed in the Registry,

What does it mean to Tokenize Real Estate?

Image
Tokenization, when applied tо Real Estate, is thе рrосеѕѕ of acquiring real estate via the offering of digitized shares or membership interests, encoded in units and issued through customizable contacts that are distributed as tokens. To simplify this соnсерt, we can say that we uѕе tоkеnizаtiоn аѕ a method tо turn rightѕ of аn asset intо a digitаl tоkеn. These tokens can be stored in ethereum wallets, like myetherwallet, Trezor or ledger wallets, which allow for portability and ability to exchange with others for value. Through the tokenizing оf assets, wе hаvе a digitаl rерrеѕеntаtiоn оf a real-world аѕѕеt on a blockchain. To tоkеnizе a рrореrtу iѕ bаѕiсаllу gеnеrаting a token through a Smart Cоntrасt and givеѕ that token a value corresponding to a real world asset, such as Real Estate. Whаt iѕ important to the token creator, iѕ hоw you will manage thе tоkеnizеd рrореrtу and how investors will beneifit? Is the offering an Equity offering or a Debt based offering? Aѕ in the cas

Bitcoin’s Value and Satoshi Cycle

Image
Without getting into the real driving force of Bitcoin serving as the reserve currency in cyprtospace and as the emerging financial technology on the blockchain, here are some fundamental elements as to why Bitcoin has value. In order to get into the dynamics of what gives Bitcoin its intrinsic value, we need to establish a few definitions. First off when we say a storehouse of value we are referring to assets which retain their value and increase over a period of time and not subject to inflation, like the dollar. Real Estate is a prime example of a storehouse of value. For example in New York where there is no room for expansion and acquisition is competitive. The intrinsic value in Real Estate is enormous. We are seeing this across the country in many cities as supply and demand do their dance. Another storehouse for value can be Stocks and Bonds. If you invested in Amazon, Google or Apple at its inception you currently would be worth millions! Today these Stocks still serve as

Syndication of Real Estate with a Cryptocurrency

Image
Syndicating real estate is nothing more than crowdfunding. Syndication is the concept of investors pooling their capital together to acquire more substantial assets that they would unlikely be able to purchase on their own. Now the first question is why investors would want to invest in Real Estate over Gold or stocks? Real Estate has shown a slow and steady rate of growth over time. It has also been able to withstand the economic cycles by adjusting to the markets rates and conditions while maintaining the integrity of capital appreciation. More recently we have seen considerable growth in the crowdfunding of crypto-related projects. The ease of being able to reach a global audience while being able to offer a securitized digital asset is bringing in a new age of possibilities for the syndication of any venture, but primarily real estate. The other advent of this platform is the marketing aspect. Because the audience is on this internet platform 24/7, social media becomes the p

Why Real Estate makes an ideal cryptocurrency

Image
www.usrealcoin.us  In today’s unstable financial markets investors and everyday savers are limited to fixed, no income interest accounts that are not inflation proof and have stagnated at all-time low levels of interest. Complex investments such as hedge funds require substantial initial investments and have high qualifications that provide little or no liquidity while being vulnerable to bankruptcy. The proposition of blockchain technology are evolutionary, not revolutionary. Blockchain is not proposing the whole-scale reinvention of modern money and banking, but Instead, offer a current approach to the centuries-old tradition of building wealth by acquiring assets of solid and tangible value. Debt free, income-producing real estate has always had intrinsic value and been inflation proof while protecting savers wealth. Real estate has a high tangible asset value. There will always be value in your land, and value in your home. Other investments can leave you with litt

The Syndication of Real Estate with a Cryptocurrency

Image
Syndicating real estate is nothing more than crowdfunding. The concept of investors pooling their capital together to acquire more substantial assets that they would unlikely be able to purchase on their own. Now the first question is why would syndication of investors want to invest in Real Estate over Gold or stocks? Real Estate has shown a slow and steady rate of growth over time. It has also been able to withstand the economic cycles by adjusting to the markets rates and conditions while maintaining the integrity of capital appreciation. More recently we have seen considerable growth in the crowdfunding of crypto-related projects. The ease of being able to reach a global audience while being able to offer a securitized digital asset is bringing in a new age of possibilities for the syndication of any venture, but primarily real estate. The other advent of this platform is the marketing aspect. Because the audience is on this internet platform 24/7, social media becomes the