Make An Investment In Commercial Cannabis Real Restate

Posted by Greenzone Props on May 13th, 2019

Did you know that 80% of the world’s wealthiest people gained a big bulk of their wealth through commercial real estate investments? No matter if the investment is in a small apartment or sizeable commercial building, not only is commercial real estate a smart investment, it can also give you some significant tax advantages.

Any expenses related to owning commercial property, such as maintenance, upgrades or renovations are potential deductions. Even though these may be considered out-of-pocket expenses, they improve the value of the building. Other potential deductions include condo fees and association fees.

California Cannabis Commercial Real Estate is also deductible, which means any interest you pay on your commercial property over the course of the year can be deducted from the tax you’ll owe. For example, if ,000 of your ,000 of your mortgage payment interests, you will accrue ,000 that can be deducted from your taxes over the course of the year.

One potential benefit owning commercial property can bring you are lower capital gains tax rates when compared to more traditional retirement investments such as an IRA. For example, when you access IRA funds, you will be billed on those funds depending on your personal tax rate. On the flip side, when you sell a commercial property the capital tax rate associated with it are typically lower than the personal rate from the IRA.

Lastly, are the post-sales tax savings. If you leave a commercial property to beneficiaries, and they sell, they will only pay tax on the value of the property since the time of your death. Beyond taxes, the purchase of a commercial building serves as a de facto succession plan. Since many businesses do not have solid succession plans in place, the investment in commercial property can mean an individual has a guaranteed asset at the end of its life, one that can be passed on for generational wealth.

Commercial cannabis real estate crops and livestock, fossil fuels, and precious metals are one of the most volatile of alternative investment options. Unpredictable events such as natural disasters and world events can have a direct impact on prices and savvy investors can use this to their advantage. Commodities do offer high liquidity, however, and that is not an option offered by many other investments such as real estate.

Investments can be made by hedge fund managers in options like stocks, commodities, derivatives, futures, and many others. Investors often realize positive returns because of the broad leeway. However, hedge funds have a relatively steep barrier to entry with minimum investments of 0, 0000 or more. Investors should thoroughly research hedge fund managers before jumping in.