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.
Last fall, we gave the best seminar we’ve ever given. At least, that’s the feedback we got from over 100 happy attendees who took the trouble to write us to tell us how the event had changed their businesses and real estate investments. Every Tax Loopholes seminar we give is new because tax law changes every day, so we’ll never have that seminar again.
Today I want to tell you about the three BIG “ah-has” I took away from this seminar that have already made me thousands of dollars. And, even better, I’ll tell you how you can find out about even more of these real-life Hot New Loopholes.
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.
But, do you know which one little item will be most significant for you? At our Fall Tax Strategy Camp, Stephen Snyder, a leading FICO scoring expert, explained that the answer is really easy. Look at the negative indicators on your report and fix the first one!
My husband took that to heart. Following Stephen’s strategies for quickly fixing negative items on your credit, he was able to raise our credit score by over 80 points in less than one week. All it cost was a postage stamp.
With the number of properties we have, this “ah-ha” from Hot New Loopholes will make us literally hundreds of thousands–maybe even millions–of dollars. If you’d like to learn what we did from listening to Stephen give us hundreds of strategies in two full hours, then you’ll want to pay special attention to our Hot New Loopholes, an audio course. First, though, let me tell you about a couple of other “ah-has.”
2. Make money in real estate and NEVER pay taxes
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.
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