Make Your Investment Portfolio Work Harder For You

Posted on: June 7, 2022

Seattle’s straight-line real estate appreciation has ranged, conservatively, from 5-7% yearly for the last two decades. Some areas have had a higher appreciation, while some are emerging markets, but all are great opportunities to increase your portfolio diversity. Let me help you diversify your portfolio so you can optimize tax write-offs, mitigate risk and exposure, increase stability in your investments, and find hidden opportunities for great returns.

Optimize Tax Write-Offs

Investing in real estate offers a huge financial perk: tax write-offs. Knowing about all the deductions available to you is a great way to lessen your taxable income. For example, real estate investment tax deductions allow you to withhold expenses tied to all aspects of operating, managing, and maintaining a property. You can also use a pass-through deduction to remove up to 20% of your qualified business income by using a partnership or LLC designation. These tips, and plenty of others, are great ways to optimize your investment.

Mitigate Risk and Exposure

All investment opportunities also present risks and real estate is no different. However, every risk also presents a way to gain an investment advantage. For example, with experts predicting a market correction, houses that were selling at top dollar within days of listing just a month ago might be on the market for longer, which means that sellers must lower prices to reflect a more realistic market. While price appreciation may occur at a slower rate in times like this, it is a great opportunity to purchase a property at a lower price.

Increase Investment Stability

Investing in real estate is also a great way to maximize your investment potential. Real estate is a tangible asset, and one that also tends to maintain or increase its value over time in a less volatile manner than other investments. Taken with the substantial tax write-offs presented by real estate investing, and the potential for passive income through renting, real estate offers investors a uniquely stable and increasing investment prospect.

Find Hidden Opportunities

Speaking of passive income, real estate investments offer multitudes of ways to create it. One of the obvious income streams is through leasing rental properties. If you can rent out multiple properties, for example, you can build a substantial passive income relatively quickly. Property appreciation is another way, although potentially riskier since you will not actually see the results until you have sold the investment property.

Are you ready to evaluate your portfolio and find new opportunities to make it work harder for you? If so, contact me today and let's get started.

Work With Denise

My purpose has always been to help others, from being a tennis pro to teaching at Texas A&M to helping people invest in real estate. I have spent 30+ years helping people navigate the world of real estate. My goal is to both help you put together a real estate investment game plan and implement it.

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