While it is generally accepted that real estate offers significant opportunities to build wealth, there are general rules of thumb in terms of how to make money in real estate investing.

High quality real estate offers the most stable returns. Consequently, this level of real estate is the most expensive. Tenant-in-common investments offer individual investors access to institutional–quality real estate that would otherwise be out of reach.

Tenant-in-common investments, particularly Class A office buildings and industrial buildings such as those offered by FORT Properties, offer significant benefits for investors. First, in choosing a tenant-in-common investment, the investor is also choosing to relinquish the daily management duties that can become onerous. Tenant-in-common structured properties are overseen by experienced management companies.

Secondly, a fractional ownership opens investors to an entirely new level of real estate. Investors new to tenant-in-common investments are pleased to find that they can purchase an ownership interest in properties strategically located in growing regions — ones far too expensive for the individual investor.

While investors may ask how to make money in real estate, they should also query how to keep the money they’ve made. The Internal Revenue Service provides a section of the tax code to help investors defer capital gains tax on the sale of investment property: Section 1031. Under this section of the tax code, investors may exchange (relinquish one property and purchase one or more other properties) investment properties to defer capital gains tax if the investor follows the strict rules and timelines outlined in the code.

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