How to prepare for the Comeback of Real Estate!!
This last year has been a tough year for real estate investors looking
for ways to cash flow their properties. I've talked to a lot of
business owners or employees who have not yet invested in real estate
and wonder if they've missed out on the real estate rocket. And,
everyone wants to know, "What is the next big thing?" And here is my
radical response: I don't care.
You see, if you have trained yourself to see deals everywhere, know
how to create value where none existed, and have the ability to use
general wealth-building and tax-reduction strategies in
everything--well, if you have those things, you don't need to worry
about what the next big thing is going to be. You can create it.
1. Higher credit score = Lower interest rate
Did you realize that just one little item on your credit score can
bring your credit score down 100 or more points? And that might be
enough to raise your credit score by a point or more.
On an average priced home of $250,000, you could end up paying $61,000
more over the course of a loan. In fact, fix that one little item and
you suddenly have $200 or more each and every month in cash flow on
your property.
New laws make it easier than ever to buy and sell real estate through
your pension plan. Did you know that your IRA--or better yet, your
ROTH IRA--can borrow money with an up to 70% loan-to-value?
Consider setting up a RE IRA LLC. This special LLC is manager-managed with you personally acting as a manager. Your pension is the member of the plan. The LLC then writes the checks and makes the deposits. You won't need to run everything through an absentee administrator.
There was a lot of information contained in that last paragraph. It's
all possible, and won't tell you how to go through each step of this
plan that lets you make money and never pay taxes if you have a ROTH
IRA or delay taxes if you use a regular pension plan. Free up the
money in your pension plan and start making some real money with real estate.
3. New tax loophole: Production deduction
No one is talking about this amazing gift that Congress has given
business owners and real estate investors. If you are a
"manufacturer", and the definition is pretty broad, you get a 3%
deduction this year, and it won't cost you a dime. Of course, 3% isn't
a huge number, but it's free!
The definition of manufacturer includes pretty much any company that
takes something and changes it to resell or rent. That means if you
rehab a house, you're a manufacturer and get this new tax loophole. If
your business is involved in construction or engineering, you're
qualify and get the special benefit.
So many ways to accomplish your goals this year in Real Estate!! What
are you going to do?
For any questions, please comment below. For investment services, leave a message at 314-246-9484 or you can email at dhibb99@gmail.com
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