John T. Reed’s real estate investment blog

Tens of millions of people want to “invest” in real estate. But I doubt very many of them have thought through what an investment really is. Webster’s New Universal Unabridged Dictionary says an investment is, “the property in which one invests.” That’s tautological and therefore unhelpful. That same book defines “invest” as “6. to put (money) into business, real estate, stocks, bonds, etc. for the purpose of obtaining an income or profit.” I wrote a rather advanced book on the fundamentals of real estate investing which you may want to read. Click on the cover to get more information about...

The horrible five stages of a US hyperinflation crisis todaySep 20, 2024.You have been warned more about the coming hyperinflation than you were warned about any other financial crisis, yet hardly anyone is taking the protective steps that will be illegal after the day the dollar dies.. How I got over fear of buying my first duplex..Why Kamala cannot get rid of obstacles to lower home prices. Are financial advisers really right about the benefits of rebalancing and diversification?.Problems with IRAs and 401(k)s you probably never heard about Do not buy a condo—ever.. Figure out how you are going to...

I just got an interesting testimonial from a real estate book reader in the Netherlands. I frequently get asked if my real estate investemnt books apply to foreign countries. Yes and no. Yes on the basic approach. No with regard to customs and laws unique to the country in question. A Swedish reader said the fact that he was probably the only guy in that country who had read my books was a virtue. In the land of the blind, the one guy who read American John T. Reed’s books on real estate investment is king. He was a contrarian...

Copyright by John T. Reed I discuss this subject in two of my books:  and  There is great demand for ways to get around due-on-sale clauses in mortgages for four reasons: to preserve a below-market interest rate to avoid a credit check when the prospective buyer has poor credit or inadequate cash or income to afford the property to use the Stonecrest line of Tax Court cases to avoid paying income tax on excess mortgage relief over basis. to lease-option a one- to four-family house (which generally relates back to the second reason). Reason for the due-on-sale clause Real-estate investors...

Copyright by John T Reed One of the most common questions I get from readers is whether they should incorporate, form a limited liability company, use an S corporation, and so forth. This is a manifestation of the asset-protection movement which has arisen in recent years as people have heard about more and more lawsuits that successfully stretch the law to cover more and more situations. I did a comprehensive article on LLCs in particular in September 2021. Hypercomplex The short answer is there is no answer. Each form of ownership has advantages and disadvantages. You need to pick the...