Why Real Estate Became Even Better Than Gold With The New Trump Tax Changes

The United States national debt is forecasted in 5 years to enter its “Death Spiral” phase by borrowing money to pay interest on debt service. Combine that with insane stock market volatility for the foreseeable future, and you have the perfect case for investing in hard assets.

In addition, the economy is in what looks like the last innings of the second-longest economic expansion since 1854. While nine consecutive years of economic growth is impressive, how do you prepare your portfolio for when the music stops?

Come and learn from our panel of industry experts on how you can accumulate safer returns while eliminating volatility from your investment portfolio.

This panel was curated, and will be moderated by commercial real estate expert Michael J. Flight. The panel includes industry leaders Buck Joffrey, Dana Samuelson, Lane Kawaoka, and Rich Checkan who will share the secrets of gaining outsized returns while minimizing risk.  

Investing in Commercial Real Estate gained a giant boost in interest with the Tax Cuts and Jobs Act of 2017, and is set to outperform stocks or bonds with less volatility in the coming years.  Gold is also becoming more important as a safe haven for your hard earned investment dollars. Combining the passive income and tax shelter benefits of real estate with the hedge of gold might be your best way to thread the needle of projected disaster.  

One of the most favorable reasons to invest in real estate is its ability to provide downside protection for your capital with a higher return profile. Pairing the tax-advantaged returns of real estate with the rock-solid attributes of gold can insulate your hard-earned capital from the storms ahead.

Real estate, especially commercial real estate, provides not only appreciation, but also cash flow through long term leases with quality tenants. Generous depreciation allowances and special incentives have been recently signed into law by President Trump (he is a real estate guy after all). Entitled Tax Cuts and the Jobs Act of 2017 are allowing real estate investments to create cash flow and investment returns while simultaneously creating tax losses that shelter income. Depending on your status as an investor, and how your investment is held, those losses may also shelter W-2 income and income from other investments.

Buck Joffrey (real estate/cryptocurrency), Lane Kawaoka (real estate), Michael Flight (commercial real estate) will discuss the benefits of cash flow sheltered by depreciation including the new 100% Bonus Depreciation for certain aspects of real estate. They will also discuss Mortgage Interest Deductions as a cost of doing business, and the new 20% Pass-Through Deduction for Qualified Businesses held by Limited Liability Companies. With real estate, there is no payroll tax, low capital gains taxes, IRA eligibility, and the ability to defer taxes using Section 1031 (and like-kind exchanges). Even if you do not hold the property yourself, you will still benefit from these tax savings if you invest in private Real Estate funds. These funds take the mentioned tax breaks, and use them to make your returns even better.

Despite these reasons, we are aware that there are always two sides to a coin. That is why we brought on precious metals experts Dana Samuelson and Rich Checkan, to help us catch what we may be missing with gold. Gold, since 1900, has been the best long-term store of value and is an excellent tool for long-term wealth preservation. Other benefits of gold and precious metals are: Inflation and stock market hedging, private and confidential, high liquidity (you can take gold with you anywhere in the world), not susceptible to being erased or hacked, no counterparty risk, and most importantly gold can’t be printed by the government. Governments have shown a long train of abuses and usurpations including garnishing wages, freezing bank accounts, and confiscating investment funds.

As stated perfectly by Katina Stefanova “we are entering uncharted waters with global debt levels over $250 trillion, nearing the end of one of the longest economic expansion cycles in history and the extremely poor labor force demographic trends of slowing growth and aging. These macroeconomic headwinds will incentivize policymakers to run larger deficits and central banks to print money, which should increase the attractiveness of gold.”

Gold and Real Estate are physical assets; real assets, not paper or blips of code on a screen. They are both exceptional inflation hedges. When combined, they can become a powerful strategy for tax-sheltered passive investment returns with a hedge against inflation, and government stupidity and duplicity.

We hope to see you at FreedomFest on Friday, July 19, 2019, at 3:10pm in the Chablis Room of the Paris Las Vegas Hotel & Casino in Las Vegas Nevada to meet and discuss these ideas.

About the Author: Michael J. Flight

Michael J. Flight is a real estate entrepreneur who is an expert in commercial real estate, especially shopping center investment and NNN retail real estate.  Michael has been active in commercial real estate for the past 35 years and has handled more than $600 million worth of real estate transactions. Michael has been featured on many business podcasts, served on numerous non-profit boards, held elected office, and shared as a featured speaker on real estate investment, poverty alleviation, and free markets. He is also an Amazon #1 Best Selling author with the book DESIRE, DISCIPLINE & DETERMINATION: LESSONS FROM BOLD THOUGHT LEADERS More information can be found at www.michaeljflight.com and www.concordiarealty.com

Concordia Realty Corporation has been successfully connecting sound economics with experience in real estate for more than 28 years.  We are a premier private real estate investment and management firm that specializes in Retail Real Estate, including Shopping Centers and Single-Tenant Net-Lease Detail/Medical (“Medtail”) properties. Our wide range of experience has uniquely positioned us to redevelop and repurpose properties that are experiencing disruptions related to technology and merchandising.  This experience has built a skill-set that helps to add value to all of our real estate ventures.

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