April 2019

Several years ago, Dr. Robert M. Doroghazi, a noted cardiologist, wrote a book entitled, “The Physicians Guide to Investing.” Warren Buffett, chairman of Berkshire Hathaway, said it should be “required reading at med schools.” Dr. Doroghazi makes these important points when it comes to investing: (1) “Real estate should represent a significant position in every investor’s portfolio; and (2) “…real estate should be a core holding” in a person’s investment portfolio. What is it that makes real estate such an important investment that every high net worth investor, not just physicians, should consider real estate as a “core holding” in…

Accredited investors receive privileged access when it comes to investing in securities. So, it’s important to know if you are an accredited investor. An accredited investor is a person or business entity who is allowed to deal in securities, which may be publicly-traded stocks or private units in a limited liability company (LLC) or a number of other things, which may or may not be registered with financial authorities like the Securities and Exchange Commission (SEC) or a state securities commission. Accredited investors are entitled to view certain securities offerings if they satisfy one (or more) requirements regarding income, net…

Real estate professionals have a distinct advantage when it comes to investing in real estate. Most people who invest in real estate have to follow what the Internal Revenue Service (IRS) calls Passive Activity Rules. These rules are found in Internal Revenue Service Publication 925. When an individual invests in real estate, it is likely that, even if you have a positive net cash flow from the property, the early years may show a taxable loss due to depreciation, which is permitted to be taken on the property. Here’s a quick example assuming you acquired a 50-unit apartment for $7,500,000…

Commercial and residential real estate are two different animals. Most states define residential real estate as buildings which contain one-to-four living units while commercial real estate is any real estate...