Property owners face a real challenge in today’s market. Values have consistently appreciated since the Great Recession, but the future market looks very different.
As a property owner, you need to weigh your short and long-term personal wealth and real estate strategy against what’s happening in the market. But to do that, it’s important to consider the following questions:
Real estate isn’t simply a set of binary buy and sell choices. The best options for investment return, wealth accumulation, and tax benefits are rarely the obvious ones.
Take control of your assets today. Let’s chat about how our innovative real estate consulting and advisory services will help you make more informed decisions.
Enhancing Business Value through Strategic Real Estate Holdings
Many business owners conflate their business value with the value of their real estate. However, a business’s true value is the present-day dollar figure of all expected future cash flows. Real estate, when used to house operations, augments core functions rather than driving business value.
Real estate should be viewed as a standalone investment. Strategic capital budgeting decisions should reflect this perspective, offering diversification from core operations and strategic tax benefits. Additionally, real estate can serve as a retirement investment for residual income after selling your business. If you need to pay rent, consider fostering equity growth by taking out a mortgage and paying yourself rent instead.
Interested in building a new facility but don’t know where to start? Need a real estate consultant to manage a “one-off” development project? Explore our real estate development solutions for small businesses below.
Active & Passive Real Estate Investment
In an era of unpredictable returns and economic uncertainties, real estate investment stands out as a tangible hedge against inflation and market volatility. With almost 40% of dollars ever printed in 2020 seeking new avenues, finding a non-speculative asset is crucial to protect your buying power.
Investment real estate offers consistent monthly cash flows from rentals, alongside potential capital gains from property appreciation. Its tangible nature provides a unique appeal amidst speculative bubbles and virtual currencies.
As a real estate investor, you can leverage financial instruments, enjoy strategic tax benefits, and choose between active or passive investing roles. However, sourcing good deals is challenging. At RRS Capital Management, we work with investors of all types – private equity, high net worth individuals, family offices, and mom & pop investors – to demystify the investment process and maximize returns.
Here’s what one of our investors had to say:
“I was in a situation where I didn’t need to sell, wanted anonymity, and wasn’t going to market my property – but I wanted to reallocate my investment dollars in other places. Matt was able to source and bring a qualified investor to the table, underwrite and structure the deal so it made sense for both parties, and close the transaction quickly. He helped me maximize my equity on the investment sale.”
Jerry W., Founder, Custom Home Builder
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