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Investing in Real Estate

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Real Estate Investing Buying and owning real estate is both a satisfying and lucrative investment strategy. Monthly rent, equity, passive income, and tax breaks are some of the benefits of real estate investing. There are endless ways of investing in real estate , from securing a home mortgage to building rental properties. Unlike bond and stock investors, real estate investors can use leverage to acquire property by paying a portion of the property cost upfront and paying the balance plus interest over time. Typically, a conventional mortgage requires the applicant to make a 20% to 25% down payment. However, in some cases, a borrower only needs a down payment of 5% to buy an entire property. Upon acquiring a mortgage, you control the property from the moment you sign the papers. Therefore, you can even take out a second mortgage and secure it with the same property. If done right, real estate investing can be lucrative or even flashy. It can bring an additional income stream an...
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Alternative Mutual Funds

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Alternative mutual funds are SEC-registered, publicly-traded mutual funds that employ complex investment and trading strategies. Also called alt funds or liquid funds, alternative mutual funds hold non-traditional investments. As their name implies, alt funds seek to accomplish the fund’s objective through non-conventional investment and trading strategies. Alternative mutual funds invest in assets like leveraged loans, global real estate, start-up companies, commodities, and unlisted securities that provide exposure beyond the conventional stocks, bonds, and cash. Understanding Alternative Investments Any financial investment that does not fall into one of the categories of traditional investments is an alternative investment . Private equity or venture capital, managed futures, hedge funds , commodities, art and antiques, and derivative contracts are all examples of alternative investments . Institutional investors or high net worth individuals/ accredited investors hold most alt...
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Hedge Funds vs. Mutual Funds

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The main goal of investing is maximizing returns. With so many investment options available, it can be daunting to determine the best investment vehicle. Among the investment products available, hedge funds and mutual funds are the most common. Both funds provide investors with the benefit of diversification by allowing them access to a pool of investment funds. Both funds are also portfolios managed by a portfolio manager and aim to achieve high returns through diversification. Pooling of funds means that a fund manager or a group of managers use the investment capital obtained from multiple investors to invest in securities that align with a specific investment strategy.   Hedge Funds Like mutual funds , hedge funds have a basic pooled structure. However, hedge funds are provided privately; therefore, they take higher risk positions to obtain higher returns for established investors. As such, hedge funds may use leverage, options, short-selling, and other alternative strategie...
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Understanding Hedge Funds

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What Are Hedge Funds? A hedge fund is not a specific type of investment; it is a vehicle for investment. A hedge fund pools money from investors to invest in costly, high-risk, but high-reward securities and other opportunities. Unlike mutual funds, hedge funds are not heavily regulated. They have more leeway, allowing fund managers to pursue investments and strategies that could increase the risk of investment losses. Hedge fund managers use a wide range of strategies, including trading esoteric assets and buying with borrowed money in an effort to achieve high investment returns for their clients. Hedge funds are considered risky investments accessible only to accredited investors, usually high net worth individuals (HNIs) and institutions who can afford the high fees and the risks involved. Understanding the Hedge Fund Initially, hedge funds solely focused on hedging or minimizing the risk of an investment. The managers of conventional investment funds would devote a portion of...
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1031 exchange 200 rule

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The 1031 exchange rule is a tax code provision that allows investors to swap one property for another without having to pay capital gains taxes. It’s a valuable tool for investors who want to maximize their profits, and it can be especially helpful in a hot real estate market like the one we’re seeing today. Here’s what you need to know about the 1031 exchange rule, including how to use it to your advantage. What is the 1031 exchange 200 rule? In a 1031 Exchange, the 200% rule refers to the maximum dollar amount that an investor can exchange up for. In order to qualify for a 1031 Exchange, the Investor must identify replacement property or properties within 45 days of the sale of the relinquished property and complete the exchange within 180 days of the sale of the relinquished property. The identification of replacement property is made by either describing the property in a signed document or by actually purchasing the property. The deadline for identifying replacement property is...
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