Real Estate Marketing Letter before & after

Real Estate Marketing Letter

BEFORE

Depreciate 50% of Your Investment Property in 1 Year!

Great tax implications and “other people's money” are two of the benefits experienced by real estate investors. What happens when these benefits are coupled together and amplified to change the experience from good to great? The investor recognizes increased cash flow.

In today's market it is difficult for investment property sellers to justify the asking price of property with the increase in interest rates and a decrease in tenants. With record low interest rates over the past few years, tenants have bought their own homes creating a reduction of quality tenants to fill vacancies. Many property owners are facing forced sells due to their increased monthly payments associated with their adjustable rate mortgages.

Real estate is still an attractive investment. Here's how to make it more attractive: consider investing in new construction within the Gulf region. The Gulf region is covered by the Gulf Opportunity Zone Act of 2005.

The Act allows for a special depreciation allowance related to the cost of qualified property placed in service during the tax year. The allowance applies only for the first year the property is placed in service. For qualified property placed in service in 2006, you can take an additional 50% or 30%, special allowance. In other words, an investor can deduct up to 50% of the property this year! The allowance is an additional deduction you can take after any IRC Section 179 deduction and before you compute depreciation for the year you place the property in service.

To be qualified GO Zone property, the property must also meet three tests.

1. Acquisition date test. The property must be purchased after August 27, 2005, with no binding written contract for the acquisition in effect before August 28, 2005. Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after August 27, 2005, and before January 1, 2008.

2. Placed in service date test. The property must be placed in service for use in a trade or business or for the production of income before January 1, 2009 in the case of qualifying nonresidential real property and residential rental property.

3. Location. The property must be located in the Go Zone. The GO Zone covers parts of Alabama , Louisiana , and Mississippi .

If this extraordinary deduction creates losses in the current year, the losses may have the benefit of being carried back five years.

To ensure that the property is the right investment for you and to maximize the benefits, seek advice from your accountant, attorney, mortgage broker, real estate agent and other professionals for advice regarding this investment. For more information, or to be referred to local professionals to take advantage of this unique opportunity, contact either Carrol Gatlin or Liz Pederson.

Carrol Gatlin, CPA is a partner at Freeman Wehmhoff Gatlin, PLLC. She is also co-host of the weekly radio talk show called The Business Building Network ( http://www.businessbuildingnetwork.com/). She can be reached at 763-545-9950 or at cgatlin@fwgcpa.com .

Liz Pederson of Edina Realty is a licensed real estate agent in Minnesota . Along with Carrol, she is co-host of The Business Building Network. She can be reached at 612-701-5852 or at mailto:lizpederson@edinarealty.com.

AFTER

How Successful Investors Are Still Making
Big Money in Real Estate

If you are finding it difficult to make money in the current real estate investment market, perhaps you are looking in the wrong place. Believe it or not, real estate is still a great investment. And we can prove it. Would you be interested in a new construction project where the Federal Government allowed you to deduct 50% of your investment in one year?

As you know, when great tax benefits and “other people's money” are combined and amplified by government “investment zones”, the opportunity to multiply wealth increases significantly.

Thanks to the Gulf Opportunity Zone Act of 2005 , the Gulf region is the new Gold Coast of new construction investing .

Why?

Because the Act allows for a special depreciation allowance related to the cost of qualified property placed in service during the tax year. The allowance applies only for the first year the property is placed in service. For qualified property placed in service in 2006, you can take an additional 50% or 30%, special allowance.

In other words, an investor can deduct up to 50% of the property!

The allowance is an additional deduction you can take after any IRC Section 179 deduction and before you compute depreciation for the year you place the property in service.

Of course, to be qualified GO Zone property, your investment must meet three tests.

3. Location. The property must be located in the GO Zone. The GO Zone covers parts of Alabama , Louisiana , and Mississippi .

Are there more potential benefits? Yes.

Because if this extraordinary deduction creates losses in the current year, the losses may have the benefit of being carried back five years !

To help select the right investment for you and to maximize the benefits , seek advice from your accountant, attorney, mortgage broker, real estate agent and other professionals regarding this investment.

For more information, or to be referred to local professionals to take advantage of this unique opportunity , contact either Carrol Gatlin or Liz Pederson .

Carrol Gatlin, CPA is a partner at Freeman Wehmhoff Gatlin, PLLC. She is also co-host of the weekly radio talk show called The Business Building Network (www.businessbuildingnetwork.com.) She can be reached at 763-545-9950 or at cgatlin@fwgcpa.com.

Liz Pederson of Edina Realty is a licensed real estate agent in Minnesota . Along with Carrol, she is co-host of The Business Building Network. She can be reached at 612-701-5852 or at lizpederson@edinarealty.com.