What Biden Wants To Change In Real Estate Investing - YouTube

What Biden wants to change in real estate investing?

Okay, President Biden is a Democrat.

We had a republican president with Donald Trump and things in Real Estate investing

has changed.

I don't care whether you're a democrat, a republican or independent.

You need to know this.

I'm going to share exactly what Biden wants to change.

Let's go.

I'm going to break down really quickly some of the changes that President Biden is proposing

to change and how it affects real estate investing.

I'm going to share with you what I think is the most important thing of all of the changes

that have been proposed.

And last but not least, I'm going to share with you my dirty little secret on how I'm

going to make even more money under this presidency.

Hi, I'm Noelle Randall.

Real Estate entrepreneur, mentor and mom of 5.

And as a long time real estate investor, I can tell you I watch to make sure what the

proposed changes are in real estate investing that affects me.

I don't necessarily get into politics anymore.

I used to.

I used to care who is the president and who is the governor and senators and all this

other stuff.

But as I have grown my income and changed my tax bracket, I can honestly tell you, poliitcs

really does not mean that much in my life.

I really don't focus on it very much.

I really don't necessarily care who's the president and all that other stuff.

In fact, I usually find that most of what is going on in politics is a complete waste

of time to what entrepreneur.

Now, again, I'm not being disrespectful.

If you love the news and watching the news in politics, more power to you.

But I'm just going to be really honest with you.

As a millionaire entrepreneur, I really just don't care about politics.

I only care how it affects me.

So, I'm going to talk to you about how this presidency and what some of the proposed changes

are for real estate investing and how they affect me and what I plan to do about it.

Real estate investing has changed my life.

I have lots of rental properties both short-term and long-term rental properties.

Meaning, I have real estate that is vacant and unfurnished that are rent out like apartments.

I also furnish them and put the towels and the forks and the knives and put some of those

properties on Airbnb.

And that is a very profitable model for me.

In fact, I make more money off of my long-term rentals than I do with my short-term rentals.

I also do rental arbitrage where I don't even have to own the properties.

I lease properties and then I still get some of those to cash flow.

So, I have a really diversed, mixed of properties in my portfolio.

I have condos, I have apartments, I have single-family homes.

And I even have timeshares and things like that.

Basically, if it's real estate and I can make money, I have it in my portfolio.

And now that I am focused on bigger apartment buildings and really scaling the business

for its hundreds of millions of dollars, my whole focus has changed but I still care about

real estate investing and what laws affect what I am doing.

So, this is the only reason why we even would care.

So, no for the future.

You do not care about politics.

You couldn't care less who's the president, only about the changes and how they affect

you.

So, let me tell you just a couple of the changes and how we're affected and what you'll do

about them.

So, the first major changes proposed by the Biden administration is the elimination of

the bonus depreciation.

Now, I know I said a mouthful there.

The elimination of the bonus depreciation.

Let me tell you what that means.

As a real estate investor, we are allowed to depreciate things for a very long time.

Big purchases.

For example, if we refurnished a property or if I remodel a property or I did something

really big like landscaping, I could depreciate that on my tax return over a very long period

of time.

There's a bonus depreciation.

So, of course, you'll be able to write down the depreciation of assets that you have and

take that as a tax credit.

So, one of the major benefits for a real estate investor especially in the tax world with

tax credits and tax loopholes is the fact that we can do this bonus depreciation.

So, under the Trump administration, there was something called the TCJ act which stands

for Tax Credit and Jobs act.

President Trump has put in an act that allowed you to do bonus depreciation and how a lot

of benefits for some higher-level people.

Just being really honest with you.

Not saying that I am a republican or democrat.

Just telling you honestly, there was a lot of things in the tax credit and job acts that

helped real estate investors.

And one of them was bonused depreciation because it will allow us to write off even more than

we would normally are able to.

This allowed me to renovation projects.

And it did actually incentivize real estate investors to make investments in their properties

because we have that tax credit.

So, if there was a time where I was thinking of changing all of the appliances or doing

a renovation on my property, this was a big incentive because I have that tax credit where

I knew I would be able to write off a lot of those purchase calls.

And so, this was an amazing benefit.

The Biden administration has proposed eliminating this bonus depreciation.

This is a big deal because like I said, as a real estate investor, this is a big incentive

for us to do projects on our properties.

Now, because of the Biden administration has done some other things and we have some really

low-interest rates and things like that, I'm just going to move to something else.

But this is a big deal.

Having bad credit or that bonus depreciation no longer be a tax credit is going to take

away some of the incentive of other real estate investors to do some of these bigger projects.

So, that is something that is very important that you know.

Let me tell you the next thing.

Number 2, the elimination of 1031 exchanges.

This is a big change that is proposed.

Like I said, the Biden administration has proposed eliminating a 1031 exchange.

This is a big deal.

Huge.

Even before I started investing in real estate, I think the 1031 exchange, I want to say came

out like in the 1920's.

It is this awesome amazing thing for real estate for investors that allows us to not

pay taxes on our profits when we sell an investment property.

It's something that most people have no idea about even exist.

It is a multi-billion dollar business.

So, let me give you a quick example of how this all works and the proposed elimination

of 1031 exchanges.

So, say for example I have a rental property and I decide to sell it.

When I sell that rental property, the profits that I make, so say I'm making $30,000 and

that's the money that's going to come to me after I sell it, those are considered capital

gains or profits on that property.

And I would have to pay taxes on that money because obviously, that's income.

Well, with the 1031 exchange, instead of that $30,000 coming to me, the money would be sent

to someone called a qualified intermediary.

A Q-I.

Meaning, unrelated third party to the transaction.

This person would just hold my profits and with a certain amount of time, I have to buy

another rental property with that money and then I am not taxed.

It is called a 1031 exchange.

Meaning, I am exchanging one investment property for another.

So, when I sell a rental property, the money that I make for it, if I buy another rental

property or another investment with it that I don't have to pay taxes on it.

It's an amazing thing for real estate investors and it's a whole business, okay?

This is an entire business.

Qualified intermediary companies make a ton of money and it's a great business to be in

and it's a way that wealthy people keep more of the money that they make.

So, this proposed change actually is huge.

But most people really are not talking about it.

I'm going to be very honest with you, I don't think he's going to actually change.

Again, I could be completely wrong.

We'll see.

Obviously, this is a recording.

And we will find out if Noelle was right.

But like I said, 1031 exchanges have been around for so many years.

And so many investors use this as a tool to buy more investment properties and it does

incentivize real estate investing.

I honestly (again, not getting into politics), I don't think this is one that should happen.

We will see.

But this is going to be huge if it does into effect.

if it does go into effect then I probably again won't be able to use a 1031 exchange

anymore.

Also, that entire industry of 1031 exchanges with qualified intermediaries and those whole

companies, that whole industry would be gone.

Again, not sure if this is actually going to go through.

We'll see.

And here is the most important change proposed by the Biden industry.

And I actually love this proposal even though I don't qualify.

The Biden administration has proposed a $15,000 first-time homebuyer credit.

I think this is absolutely amazing.

As you may already know, Millennials are not buying homes at the rate that they used to.

As a person that just turned 40, I don't think I'm a Millennial and I own tons of real estate.

But I think that generation below me is really having a hard time getting financed for real

estate and also have no real interest in owning real estate because there are a very mobile

generation.

People like moving around a lot more.

So, this proposal from the Biden administration is very timely and I think it will boost the

economy.

Like I said, Noelle is a real estate entrepreneur.

But I also have a master's degree from Penn State in economic development.

And my education has trained me to know that these type of incentives will improve the

housing market and the housing economy overall.

I think this is a great proposal and I hope that this one does go through.

I think that more people should be incentivized to buy homes especially first-time homebuyers.

We have so many people that have student loan debt and things like that and they're not

able to qualify for a home even though they're able to pay rent which kind of let you know

if someone is able to pay rent, they should also be able to pay their mortgage.

But I am not going to necessarily get into that because like I said, I don't do politics.

But anyway, the point of this is that this is a really great proposal.

And this is going to really bring more people into the market and a lot of people are going

to buy houses because of it.

Once you couple this $15,000 tax credit with low interest...

Right now, we're seeing interest rates below 3% on a 30-year fixed which is unheard of

and super low, Millenials and groups like that will be able to afford more housing and

this tax credit will incentivize them to go buy housing.

So, this is going to be a great opportunity for real estate.

But just know it's going to create more competition.

I have written an entire book that I am giving away to you absolutely free where I teach

all of these.

My new book, Real Estate Millionaire Secrets is absolutely free.

If you go to noellesfreebook.com.

That's Noelle (N-O-E-L-L-E with and S), noellesfreebook.com.

Again, I have written this book and poured my heart into teaching you real estate investing

how to start from zero with bad credit and no money and become a multi-millionaire in

real estate.

I give you checklist, tools, resources, and everything that I did and use to become the

person that you see today.

I just want to make sure that you have all the resources, all of the tools, and all of

the knowledge that you need to be successful.

This is Noelle, to your success.