| Depreciation on these properties can offset regular income at tax time. If the property is mortgaged, use discipline to pay off the debt in the shortest time feasible. Proceed With Caution It’s best not to go it alone. Consult with professionals, including a CPA and attorney familiar with real estate, to learn about tax planning and asset protection. A realtor can also help with buying, selling, leasing and property valuation. As a property owner, you must be thoroughly familiar with real estate laws and regulations to avoid legal entanglements and fines. When you sell an investment property, you may be able to retain all profits and delay taxes by using an IRC Section 1031 exchange. If you go this route, you must follow strict regulations to acquire the replacement property. A Roth IRA may be used for real estate investing, and if done properly, the profits are never taxable. Consider protecting other assets by putting each property in an LLC, trust or other entity. Maintaining accurate, up-to-date records is as vital for real estate investment as it is for home building and remodeling. It is also important to have one or more exit strategies for each property. There are no real get-rich quick-schemes in real estate, but with a plan, hard work and follow-through, financial independence can be more than a dream. Jonathan Wallick, president of Wallick Construction & Restoration in New Orleans, is a remodelor and re-developer of distressed properties in New Orleans and New Mexico. He was NAHB Remodelor™ of the Year in 1998 and is an NAHB Remodelors™ Council trustee. For information, e-mail Wallick. The views expressed in this article are those of the author and do not necessarily reflect the views of NAHB. The information provided in this article does not constitute investment, legal, tax or other advice. The article is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. If legal advice or other expert assistance is required, you should seek the services of a competent professional person. | 
