Real estate and estate plans
Real estate has long been considered a legitimate investment. Various forms of real estate investment exist, including but not limited to:
- Purchasing for the equity. Individuals may wish to buy a home because they feel the deal is exceptional. Perhaps, the home was foreclosed on. The home could have some minor aesthetic flaws that can be affordably corrected. Whatever the reason for the attractive property price, investors may wish to purchase and then later sell for a profit, or, purchase and obtain an equity line of credit. Either way, occasionally there are fast paced options to turn a profit on a property.
- Purchasing to rent. An investor could purchase with the intent to rent. In some cases, the rent collected from the tenant can exceed the cost of the mortgage or other expenses. A positive cash flow can be acquired through rental transactions.
- Real Estate Investment Trusts (REIT). A REIT is an investment similar to a mutual fund, where individuals invest in an organization that finances, or owns real estate that produces income. The amount of money earned and invested will vary depending on the specific REIT, but it is an option to invest in real estate without being required to purchase.
When purchasing a property, an individual may encounter legal obstacles. Real estate attorneys are trained to solve legal dilemmas regarding real estate. Some individuals seek the aid of a real estate attorney when developing a contract for the transaction. A real estate lawyer may be able to formulate a contract to fit the needs of the buyer or seller, should special requirements be necessary.
Many fiscally adept individuals will invest their earnings in an investment portfolio of some type. It may include owning the entirety of a property or investing with others in a REIT. Unfortunately, some investors incur injuries or accidents prior to liquidating their assets. The families are left to address the assets and may be required to determine how they will be distributed to the other members. This can often turn a stage of mourning into a stressful, and occasionally, hostile situation.
Fortunately, there are estate planning options, as an estate planning lawyer Phoenix trusts can attest. If you have acquired significant assets through investing, it may benefit you to develop an estate plan. A will can be created to predetermine how assets will be allocated after your passing. An estate planning attorney will be familiar with the development of a will and may be able to assist in your estate planning process.