Loopholes of Real Estate (Rich Dad's Advisors (Paperback))

Loopholes of Real Estate (Rich Dad's Advisors (Paperback))

Garrett Sutton

Language: English

Pages: 352

ISBN: 1937832228

Format: PDF / Kindle (mobi) / ePub

The Loopholes of Real Estate reveals the tax and legal strategies used by the rich for generations to acquire and benefit from real estate investments. Clearly written, The Loopholes of Real Estate shows you how to open tax loopholes for your benefit and close legal loopholes for your protection.













($15,000 and $10,909, respectively). You multiply this “paper loss” ($7,256) by your tax rate (35 percent), and determine your tax savings ($2,540). You add the tax savings ($2,540) to your net cash flow from the property before taxes ($7,200) and come up with your true cash-on-cash return: $9,740, or 11 percent. Your true cash-on-cash return will show you how good (or not so good) a particular real estate investment will be for you. In this case, the investor put down twenty percent of the

the thought of paying lawyers, accountants and the state the extra monies for an entity. And, as they will say to me, “Don’t you ever bring up this asset protection malarkey again, Sonny.” And that’s fine. I am not offended. But I am able to offer a solution to the other family members who clearly see the various risks associated with owning real estate. Again, as with our 4 plex example, the structure is as follows: Bert, the coot, continues to hold his tenant in common interest in his own

of a single-member LLC allows for that joint holding to continue with added asset protection. Qualifying as a disregarded entity for income tax purposes is easy to do once you have a single-member LLC in place. You simply do not apply for an Employer Identification Number (EIN) and instruct your CPA to flow all the LLC tax items onto your personal tax return. The single-member LLC is considered disregarded for tax purposes because there is only one member (or—remember—two people according to the

utmost duty to your clients. And if you are buying and selling real estate, know that your brokers and agents owe you the highest level of trust and care. Loophole #46 If you are ‘wholesaling’ properties by bringing buyers and sellers together you may technically be acting as a real estate agent. California requires you to have a real estate license for such activities. Each state has a different take on it. Check with your state’s Department of Real Estate to understand if you need such a

inspections. If Buyer does give Seller notice of disapproved items within the time period specified then Buyer shall also provide Seller with copies of any pertinent inspection reports. Seller then has the option of correcting the deficiencies within_____days of receipt of notice of disapproval or voiding the contract and returning all earnest money deposits to Buyer. Personal Inspection A personal inspection contingency will give you an easy out should you want to back out before its

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