Of the four types of real estate, our niche real estate projects provide the ‘biggest bang for the buck’. The reason is that usually most of the investment can be deducted in the first years of operation. In contrast, residential and commercial buildings are often deducted over their natural lifespan. If the investment is financed with a loan, that amount can be deducted also.
Perhaps the biggest advantage of this type of investment is that these projects can go from concept and raw land to income-producing properties very quickly, so little time is wasted putting purchases into service – a requirement for tax efficiency.
The types of niche real estate we use now for tax-advantaged investments are boat docks, houseboats, and RV sites. All can generate a strong cash flow. In each case the land is owned separately but still adds to the overall investment returns.
To learn more, please schedule a call so that we can discuss your specific goals.