Very few of them, whether they own many properties or only a few, truly know and understand how to maximize the tax and legal advantages of real estate. I intend to recommend this book to all of my clients and colleagues who either already engage in, or express a desire in, real estate investing.
Garrett Sutton's book, "Loopholes of Real Estate", is the best and most comprehensive book that I know of to frame a person's perspective of real estate investment through the lenses of tax minimization, asset protection, and cash flow maximization.
Loopholes of Real Estate
Sutton, formerly a real estate broker himself and currently a real estate investor and attorney, brings real life experience, the law, and the professional knowledge of some of Robert Kiyosaki's greatest Rich Dad Advisors to bear in this outstanding work. This book is a survey of real estate law and investing concepts that is an absolute steal as a mass market product. The information in this book is sold for hundreds if not thousands of dollars in other media such as seminars, academic courses, and professional books.
Sutton covers a myriad of topics, with an overall emphasis on tax minimization and keeping your investments out of the reach of ambulance-chasing attorneys. Among the topics covered in this book are: Sutton's true brilliance is in how he crystallizes difficult, complex subjects into bite-size morsels that are easily consumed and digested by non-lawyers and non-real estate professionals.
The Audible version of this book is narrated by Sutton himself, in a folksy, conversational tone which you can hardly tell is a narration at all. Listening to the audiobook often made me feel as if I was sitting in a chair in Sutton's law office having a personal conversation with him about how to achieve my real estate investment objectives. It is an absolutely brilliant production. There are many other topics covered in this book which you will find helpful and enlightening. Throughout the book, Sutton uses the case study method used in law schools and business schools to bring to life the reasons why proper asset protection planning and tax strategies can both maximize your income, minimize your tax liabilities, and protect your investments.
In closing, I can't recommend this book more highly for anybody in any way connected with real estate. This should be the first thing you read about real estate investing, and Sutton provides numerous references for more in-depth discussions of certain topics.
Loopholes of Real Estate | Corporate Direct
I recommend purchasing the Audible version and listening to it in the car, doing the dishes, and performing other chores, and then either owning the physical book or Kindle edition as a desktop reference. Rich Dad has once again hit a home run, and has successfully demystified and deconstructed a complex and daunting profession.
With "Loopholes of Real Estate", the advantages of real estate investing are now open and accessible to ordinary Americans from every walk of life. A local real estate club host interviews the author, Garret Sutton, on a radio show. This book is mentioned in the interview. I am hooked by the title of "Loopholes" of Real Estate, as I am active in learning tricks for tax saving.
So, I go ahead and get a kindle version. After reading the whole book, I realize this book does not offer me any new tricks in saving tax from my real estate portfolio However, to my surprise, this book has quite some asset protection related subjects. And I do learn quite a bit on this subject from this book This book helps me to fully understand the purpose, the usage, the pro and con of a land trust.
And how the homestead exemption can protect asset. I especially like Garret Sutton's approach in this book by using layman terms to cover subjects that could be hard to understand. Even better yet, quite some examples or cases are used to ensure readers fully understand each subject well. I have been using both personal umbrella and commercial umbrella policies as the shield for asset protection.
This book really helps me to have a clear picture how to proceed from here to implement a better asset protection scheme. This book costs me less than 10 dollars. But what I got from it is far more than the book's cost. I highly recommend this book for real estate investors The Rich Dad series has once again published another "must have" book. If you are a student of the Rich Dad books, this book along with "Tax Free Wealth" see my review are the two most important books you will ever read to garner the knowledge needed to structure a long-term wealth-building strategy.
The basic Rich Dad books lay the foundation of wealth building. However, this book and "Tax Free Wealth" actually demonstrate how to do it, and why it makes sense to follow such plans. Jul 16, Laura rated it it was ok. Some of the ideas given in this book sound "too good to be true".
Are they legal in your state, under certain conditions, or only for certain people? Is some of the information obsolete? All things that require more specific information, and this book is not going to help you find it, but it might give you some ideas that could help you limit liabilities and make the most of your money if you aspire to become a landlord, real estate investor, etc. Dec 25, Elgi Carisa rated it it was amazing. Apr 12, Arco Building rated it really liked it. I don't think this book is bad after all. There are different strategies for each individuals to take and it would not have the same affects for everyone.
Hendar Tubagus IM rated it it was amazing May 18, Vicente rated it it was amazing Apr 06, Karim rated it really liked it Oct 15, Jason Yu rated it really liked it Jun 12, Patricia Aldecoa-Laxina rated it it was amazing Apr 22, Aisha Washaha rated it it was amazing Oct 19, Richard Major rated it it was amazing Jun 04, Jessie rated it it was amazing Mar 09, Sally Ford rated it really liked it Oct 15, Matthew Chan rated it liked it Sep 17, Shawn rated it liked it Nov 22, Venice rated it it was amazing Dec 02, Kirby rated it it was ok Mar 01, Francesca Brown rated it really liked it Aug 02, Ted Heitz rated it it was ok Aug 28, Dee rated it it was amazing Sep 16, Red Sarazen rated it really liked it Sep 15, One of the things you speak about is knowing when to open and close those loopholes.
How does that improve the results of a real estate investor? On the tax side, you want to take advantage of depreciation. You want to be able to write off the value of the building over the 27 or 35 years. You want to close the legal loopholes that are out there. It means though that all of your personal assets are exposed.
You cover 53 loopholes, and these are loopholes that real estate investors should consider or even take advantage of. I found three categories. There are tax strategies, legal strategies and even selection strategies. Can you touch on the difference between good and bad debt?
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Good debt is using our credit system to borrow money to put money in your pocket. Good debt would be using a mortgage to acquire an apartment building. You can use s and you can go up to bigger properties. There are all sorts of ways to increase your net worth.
The name of the game is to create cashflow. Mortgage rates may be going up, but there are still opportunities out there for people to utilize good debt to their advantage. In every market, people can make money using good debt. There are always deals to be found, you just have to know where to look and how to invest. Why is it dumb not to have asset protection? We live in the most litigious society on Earth.
Loopholes Of Real Estate Investing with Garrett Sutton
There are more lawyers and lawsuits in the United States than anywhere else. Your chances are the same whether you buy a ticket or not with the lottery. The second way was through the litigation lottery. They were going to sue someone. Instead of holding real estate in your individual name, you need to hold it in a limited liability entity like the LLC.
We need to take the steps right at the start to protect your assets because we live in this society where attorneys are able to have contingency fees. That gives attorneys an incentive to sue. Knowing that, we have to take steps to protect our assets. Attorneys have a lot of incentive effect. Let us help, we can collect, no risk. If they do sue, you want to have plenty of insurance.
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- Loopholes Of Real Estate Investing with Garrett Sutton.
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Insurance is the first line of defense. Entities are the second line of defense. If an attorney sues and the insurance is not satisfactory to cover the claim, they are able to get a judgment against you personally. If you hold a duplex and fourplex in your individual name, they have the ability to foreclose upon those assets.
They can sell it for the benefit of not only the victim but the attorney themselves because they are getting a third of those properties. We have to understand that and protect ourselves accordingly. I know readers hear this time and time again. If you get involved in a fraudulent conveyance, you transfer your properties into an LLC, the court can unwind that on the grounds that you were trying to avoid paying a legitimate creditor.
The contingency fee attorney is going to have a tough time, especially if we use the right entities to get at the real estate properties you own in a car wreck situation. I always recommend that you have insurance on your home and auto.
An umbrella policy is a good extra measure of protection. On top of the insurance though, because insurance companies have an economic incentive to not settle every claim, they go out of business if they settle every claim, you have to have these other protections in place, including the LLCs for real estate and other assets.
Loopholes Of Real Estate: You want to have all of these things in place. You have one line of defense followed by another line of defense. With the layers come structure. Do you own any real estate? Lying in court is not a good thing. You can be involved in perjury.
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In our society, there are enough lies in it already. Rockefeller and he did okay. He used entities back in the day. Before, Teddy Roosevelt, he used a lot of trusts to protect himself. The concept is the same. We have a homestead exemption. We have other ways to protect your primary residence. Everybody should look into having a homestead to protect the equity in their home. Your assets are protected. What would you say to people in terms of the best entities to hold real estate? The LLC and the LP are designed to provide asset protection for their owners, especially through the charging order procedure which varies from state to state.
California, New York and Georgia are fairly weak. Nevada, Wyoming and Delaware are strong.
That is where the depends comes in. You mentioned LPs or limited partnerships. My understanding is that an LLC is better, but why choose one over the other? At the giant level, the LP requires two entities. A limited partnership is on the title to the real estate. We have that personal responsibility. No one wants that. To do the LP right, we have to form two entities, the limited partnership itself and another entityto be the general partner.
California has a gross receipts tax on LLCs. In some cases, it does make sense, especially in California to use the limited partnership. There are reasons to use the limited partnership. They can make distributions to the kids without the kids demanding that they sell the fourplex, so they can go on tour with the band. The limited partnership works in family situations. It works in situations where you have a lot of income in the State of California, you can save money with a limited partnership. They have become the most popular entity now in the country.