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All Forum Posts by: Robb Colley

Robb Colley has started 2 posts and replied 15 times.

Post: Piquing curiosity between Long Term Investing vs. Short Term Inve

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11
Piquing curiosity between Long Term Investing vs. Short Term Investing

Ever wonder about the difference between the benefits of short term vs long term properties? Balancing your investment portfolio is an ongoing task. To optimize your gains, you’ll need to fully understand the differences between long-term and short-term investments. They both serve a purpose, but you may need to focus on one over the other to reach your financial goals.

Long Term Investing: Overview

Long-term investing includes any asset you hold for more than 12 months. Technically, a year and a day would qualify as long-term, but most investors have their investments for at least three to seven years or more. Real estate is one of the most common long-term investments. Many people buy property as an investment they can hold for years as it appreciates over time. Other long-term investments include:

  • Stocks
  • Bonds
  • Retirement savings accounts
  • Any asset or financial instrument that is held for longer than a year

A long-term investment plan can handle a higher level of risk because it has more time to bounce back after incurring losses. In most cases, long-term investing should be reserved for funds that you don’t plan on needing for ten years or more.

Short Term Investing: Overview

As you can expect, short-term investing involves a shorter time horizon and typically holds assets for less than a year, although you can keep some short-term investments for up to three years.

Short-term investing is attractive to investors who want to make capital gains quickly. Their short-term nature is fueled by volatility and knowing the best time to buy or sell, so it usually requires a good amount of investment knowledge. Almost any asset could be short-term, but they’re commonly stocks, high-yield savings accounts, corporate bond funds, treasury bills, or money market accounts. These are highly liquid investments that are easy to convert into cash or sell in a short amount of time. Short-term investments deliver less of a return, but the tradeoff is that you can access your money quickly if you need it.

Is it Better To Invest Long-Term or Short-Term?

Investing long-term or short-term depends on investment goals, risk tolerance, and time horizon. One strategy is not necessarily better than the other, but each is better suited for particular wealth-building purposes. A fully optimized portfolio should have a certain amount of both long-term and short-term investments to achieve the best results. The right ratio for you will depend on your specific financial situation and how aggressive you want to be.

Capital Gains for Long-Term and Short-Term Investing

One significant difference we haven’t mentioned between long-term and short-term investing is the tax rate for income taxes. When you sell a capital asset for more than what you originally paid, it results in a capital gain. The term capital assets cover a broad range of items. Still, it refers to any asset owned for investment or personal purposes and has a useful life longer than a year. Some investors are taught that capital gains are taxed more favorably than other forms of income, but that’s not always true. It’s vital to understand capital gains taxes as they could affect your profit margin and your decision of when to sell. Long-term capital gains are taxed according to graduated levels for taxable income at 0%, 15%, or 20%. Most taxpayers that report long-term capital gains on their taxes pay a tax rate of 15% or lower. Short-term capital gains are taxed at the same rate as your regular income. Depending on your tax bracket, that can be anywhere between 10% to 37% in 2022. But it is best to consult with your tax advisor.

Pros and Cons for Long-Term Investing

A key benefit to long-term investing is less risk than short-term investing. A longer time horizon gives your assets time to recover from a down-market. If you’re planning to hold an investment for 20+ years, going through a recession around year seven will not be catastrophic. We know the economy goes through these up-and-down cycles, and you’ll be up in the long run.

When Should I Choose Long-Term Over Short-Term Investing?

It should be no surprise that the timeline for your financial goals is the most significant deciding factor when choosing long-term or short-term. Investing long-term is brilliant if you have a sum of money that you can live without for ten years. If you’re at least twenty years away from retirement, long-term investments like stocks or investment properties are a great way to slowly build wealth over the years. If you may need to access money in the next seven years, keeping your portfolio at a medium level of risk and liquidity is usually advised.

The Takeaway

Both long-term and short-term investing can be a suitable way to achieve your financial goals.. In most cases, a well-balanced blend of both investment strategies is what you should strive for. For short term investment opportunities please feel free to reach out to me directly 

Post: New Investors in Alabama - South Alabama & Bessemer

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

Thank you 

That's what I'm here for . I remember meeting you and your husband at the Wharf

Post: Advice for someone starting out investing in AL

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

Montgomery has been very good to us !  You can also look  for the  Montgomery  real estate investor Club on FB . They have monthly meetings

Post: Investor wants to start flipping and hire me for the construction

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

I have an investor that has built 4 homes in the past year in Gulf Shores. The builder makes 10% of the build cost and the project manager makes 40% of the profit. Do not sell yourself short,you are the local rep and the reason the job will happen.

Let me know if I can help. We are located at the Wharf 

Post: Another reason to invest in Montgomery AL

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11
  • Military & DOD
  • In Montgomery, the military community contributes an estimated $2.6 billion to the local economy annually and represents 68,473 people (nearly 20% of our population). This number represents active duty military, students in/at Air University, AF Reserve, National Guard, DOD civilians, military contractors, military retirees and all their family members in the greater Montgomery Metro Area.

    Both Maxwell and Maxwell-Gunter AFB play major roles in the Air Force’s and our entire military’s cyber defense and cyber strategies efforts, and the effects of this spill over the bases’ borders into the rest of the area. The Defense Information Systems Agency Datacenter, located on Maxwell-Gunter, stores all of the electronic medical records for the entire Department of Defense. It is the largest Oracle database in the world. It is also one of only two military cloud datac enters for all of the DOD. Plus, the Program Executive Office for Business Enterprise Systems develops, acquires and sustains all of the applications for the Air Force globally, and the 26th Network Operations Squadron operates and defends the Air Force network worldwide.

    Maxwell AFB, the City of Montgomery, ans the Montgomery County Commission are participants in the Smart City/Smart Base initiative. Maxwell is the only military base in the nation to be designated a Smart Base in a pilot program with AT&T.

    In addition to being home to the Montgomery Regional Airport, Dannelly Field is the location of the Alabama Air National Guard. The 187th Fighter Wing is home to the 100th Fighter Squadron, which is one of the original Tuskegee units — the famous Red Tails.

    Continuing the legacy, Montgomery will be getting a coveted fleet of F-35s that will be "bedding down" with the Historic 187th Fighter Wing. Brig. Gen. Randy Efferson, Chief of Staff Air National Guard, enthusiastically explained how winning the F-35 program will help continue the important legacy of the Red Tails. “The 187th Fighter Wing is home to the 100th Fighter Squadron, which is one of the original Tuskegee units dedicated to flying African Americans in combat fighter aircraft,” he said. “This is a very important and immeasurable legacy for the State of Alabama. Receiving the F-35 ensures this legacy for the next half-century.”

  • article from the Montgomery Chamber

Post: 1st Vacation Rental/Financing

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

My office is at the Wharf in Orange Beach and I can send you a few lenders to touch base with. It is my experience that the local lenders in Gulf Shores and Orange Beach tend to be more successful in getting these loans closed. I also have seen a few owner finance deals, sometimes it's easier to refinance after you've had it for a year. Another thing that I have ran into in the area is to buy a condo that has a strong h o a. Reserve. I know of a condo on Perdido Beach Boulevard where the owners are getting hit with a $40,000 assessment!

Post: 1st Vacation Rental/Financing

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

Have you already located the property in Orange Beach?

Post: I’m a new investor in the Gulf Shores, AL area...

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

We have a company in Montgomery AL and in Orange Beach. We specialize in new construction cash flow properties and rental investment properties in Baldwin county.

Their is one investor club from Birmingham that has been coming down to get in the market. ALREI is the name of the club 

Post: Meeting realtor out of state (Montgomery AL)

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

@Melissa Camden

We have an investor team and PM team. We have an REO dept that usually carrys around 30-40 properties in marketing and 15-30 in premarketing. We offer turnkey properties and a large wholesaler database. We have sold over 2500 properties in the past 15 years.

Post: Investing in Montgomery, AL

Robb ColleyPosted
  • Real Estate Broker
  • Orange Beach AL
  • Posts 19
  • Votes 11

@Wesley Whitehead We have an investor team and PM team. We have an REO dept that usually carrys around 30-40 properties in marketing and 15-30 in premarketing. We offer turnkey properties and a large wholesaler base.