Forgive me for asking, but... - Posted by NB(ID)

Posted by John Behle on March 23, 2000 at 23:32:27:

Paper gives good cash flow. It can be financed 100% and higher like real estate and actually easier when you know the right sources.

Paper provides great safety if purchased properly. With paper you are lower down in the “equity chain”. You are more secure than the owner. His/her equity comes after you. If they don’t pay the note, you get the property.

Paper provides great “upside potential”. There are over 117 different ways to fix up, improve, trade and restructure paper for greater profit.

As far as tax advantages? You can invest in paper tax free (deferred) through IRA’s, Pension Funds, etc. - but there are no depreciation advantages that shelter other income. Investing in paper won’t shelter income from a job - but it can result in you quitting the job sooner.

Forgive me for asking, but… - Posted by NB(ID)

Posted by NB(ID) on March 23, 2000 at 21:24:49:

compared to buying a 3 unit apartment house where one has several tax deductions available, what are the tax deductions one can take in the “paper” world. Are there any tax shelters?

Thanx–Angels on your body:)

Re: Forgive me for asking, but… - Posted by CarolFL

Posted by CarolFL on March 24, 2000 at 07:36:45:

Dar NB, Do I sense a “either/or” scenario in your question?

Isn’t it rather a question of strategy? If you see the end from the beginning, you may want to include depreciable RE and cashflow rich paper in an overall picture.

(I’m more than willing to be wrong!)