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BOOKS EVERY REAL ESTATE INVESTOR MUST READ:
Financial Freedom with Real Estate Investing: https://amzn.to/37cRAiN
The BRRRR Rental Property Investment Strategy Made Simple: https://amzn.to/3a3nDDF
How to Create Wealth with Intelligent Rental Property Investing: https://amzn.to/2KbY2xj
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not: https://amzn.to/3mdckLg
Rich Dad Poor Dad for Teens: The Secrets about Money That You Don’t Learn in School: https://amzn.to/3gCBORl
How to Win Friends & Influence People: https://amzn.to/3ndo1my
“Truth About House Hacking” Video Link: https://youtu.be/OHzL1-TobyE
“Flipping Houses Slowly for MORE Money” Video Link: https://youtu.be/_E7bFxjZbu4
Only time will truly tell what Biden has planned for the economy and how it will impact the real estate markets, but for an early indicator we need only look at Biden’s own campaign website. In fact, his site has a pretty comprehensive plan mapped out, which covers everything from affordable housing to eliminating discriminatory lending practices, but one major point of interest for new real estate investors is Biden’s targeted tax credit. For those of you who have been waiting on the sidelines for the “Right Time” to make your first investment in real estate, pay attention! This is it. For all of you watching, whether you’re a new investor or a seasoned one, pay attention – there’s a grey thumbs up button, down below, and if you hit it, it will turn this really awesome shade of blue, and that will make everyone happy, but if you’d like to make me even happier, please hit that Red Subscribe button as well.
Biden is proposing something he’s calling the “First Down Payment Tax Credit,” a refundable and advanceable credit worth up to $15,000 for qualified buyers. Biden’s intent is to make that money available at the time buyers seek to purchase a home; they won’t have to wait until they file a tax return to get it. The specifics of how the credit works will be something to watch, assuming it gets passed. The details of WHO will qualify, and whether there are specific requirements you need to meet will also need to be ironed out.
If this concept sounds familiar, that’s because it’s designed off of the temporary tax credit that was part of the American Recovery and Reinvestment Act of 2009, which was passed to help the economy move past the Great Recession. For that credit, qualifying buyers needed to have not owned a home during the three-year period prior to claiming it.
So is this a REAL opportunity to Start Investing in Real Estate? The financial barrier to getting started in real estate investing is the biggest deterrent for most new investors, as well as the biggest reason why so many families struggle to buy a home. But while Biden’s new tax credit could make homeownership a lot more attainable, it won’t necessarily spark a huge investing surge right away. For one thing, if the rules that apply to the new credit are the same as the ones that applied under the American Recovery and Reinvestment Act, the credit will only be available for homes used as a primary residence; rental properties will not qualify. Also, $15,000 isn’t a whole lot of seed money, given the way home prices have spiked recently.
Regardless of it’s final form, if the First Down Payment Tax Credit does go through, it will definitely help a lot more people to become homeowners. It also may help in other ways, like House Hacking, where you buy a duplex or triplex so you can live in one unit and start renting out the others immediately, or buying a larger house than you need and renting out the extra rooms to your friends – and, if you’re a house flipper, it will increase the pool of buyers looking to buy your completed project. If you’re utilizing the slow flip strategy that we did any entire video about, where you live in your flip and do the renovations, room-by-room, then this new tax credit can absolutely increase your ability to buy a flip project.
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