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Are you an E, S, B or I in Robert Kiyosaki’s Cash Flow Quadrant?

Are you an E, S, B or I in Robert Kiyosaki’s Cash Flow Quadrant?

Watch today’s video training and learn what you are and how you can make more money in your life!

Ready to get started by masterminding with others who are working towards financial freedom? Then join a Finance Freedom Mastermind by clicking here, watching the free video training and get started!

5 Biggest Mistakes People Make When Investing in Real Estate

Would you like to avoid the 5 Biggest Mistakes People Make When Investing in Real Estate?

Well, pay close attention to today’s training and learn what I’ve learned from multiple millionaires who are successful real estate investors, including Tom Wheelwright from his book Tax-Free Wealth, and Robert Kiyosaki from his book Rich Dad Poor Dad.

 

5 Biggest Mistakes:

1) Thinking that buying a home to live in is an investment

-People end up using all of their savings as a down payment

-They stop saving when they realize how big their mortgage is

-end up paying money to the bank in mortgage interest

-they spend all their time improving and maintaining their house

-they don’t get experience as an investor

-Property taxes might increase at any time, causing some home owners to have to sell their homes

– Consolidating debt with home equity loans often causes increased spending, which leads to further debt

2) Not properly looking at the cash flow of an investment property

-Property Taxes

-Insurance (mortgage insurance, hazzard insurance, flood insurance, etc)

-Maintenance (plumbers, handy men, roof repair, leaks, etc)

-Management (handle rental laws, and evictions, filling vacancies, screening renters)

-Tenancy Vacancies

-Cost of down payment

-Cost of mortgage fees, points, interest

-Fixed interest mortgages vs adjustable rate

-Legal fees

-Accounting fees

-Tax prep fees

3) Buying your first rental property out of state, or out of your country

-Paying more for maintenance (not being able to check work)

-Management will be less likely to service you (as you are farther away)

-Cost to visit your property

-Lacking experience to run your own property and not gaining it as the property is out of state or out of the country

4) Not Claiming Depreciation for the building

According to Chapter 7 of Tax-Free Wealth, by Tom Wheelwright, one of the biggest mistakes people make, is that they do not claim depreciation of their real estate investment property.

Why, it’s because they are lazy, or their CPA is lazy, or they are ignorant of this important deduction.

In his example, he shows what would happen if you have an investor who buys an $800,000.00 apartment building that cash flows $12,000/yr, or $1,000/mo.

$800,000 (cost of home)
-$200,000 (cost of land)
$600,000 (cost of building and contents)
-$100,000 (cost of contents)
=$500,000 (cost of building)

$500,000
x 3.6% (depreciation for building)
=$18,000 (depreciation deduction)

Without claiming depreciation for the building, you would have to pay taxes on the $12,000 earned from the rental property.

When you claim the $18,000 in depreciation, the rental income is completely tax free, because your business claims a loss of -$6,000!

Not only that, if you structured it properly, the -$6,000 will pass through to your ordinary income tax, reducing your taxable income by $6,000!

5) Not Claiming Depreciation for the contents of your rental property

Tom Wheelwright points out that separating the contents from the value of the building alone is the proper way to file your taxes.

There must be a study conducted by either a CPA or an engineer to evaluate which parts of the investment property are considered contents, and which parts are considered the building structure.

The good thing for an investor, is that contents depreciate at a much faster rate than the building, which leads to a higher percentage used to calculate the depreciation of contents vs. the building structure.

In his example which I showed above, the contents of the building were valued at $100,000.

$100,000 (contents of the apartment building)
x 20% (depreciation for contents)
=$20,000 (depreciation deduction)

So, with the building depreciation, you can reduce not only the taxes on the rental income (you pay no taxes), you also reduce your personal taxable income even more!

$12,000 (rental income)
-$18,000 (building depreciation)
-$20,000 (contents depreciation)

Conclusion

Examples of How To Keep Your Money & Pay Less Taxes – from Tax-Free Wealth by Tom Wheelwright

In this video training we discuss Examples of How To Keep Your Money & Pay Less Taxes – from Tax-Free Wealth by Tom Wheelwright.

How much did you pay in taxes in 2016?

Can you guess how much my friend worth $24 Million Dollars paid?

I recently hosted a private training with a local real estate investor/developer on June 7, 2017, and the shocking truth of his tax bill was revealed…

In 2016 he paid in taxes only $5,000!!!!!!!!!!!!!!!

How did he do it?

How is it he pays less in taxes than most people working pay check to pay check, and he is a multi millionaire?

The key to wealth is in the details…the tax details!

BUT how can a working class person learn to understand taxes like the ultra rich?

Well, that’s why I’m here, to make the secrets easy to understand for everyday people, just like you and me.

Watch this video training and be ready to finally understand how to use the tax laws to create more money in your pocket.

The First 3 Wealth Files – Are You Programmed To Be Rich?

Did you know that, according to T Harv Eker in the book Secrets of the Millionaire Mind, we have wealth files in our brain?

These wealth files determine whether we are going to be rich, middle class or poor.

We can change our wealth files too if we put in the work!

This blog will focus on the first 3 Wealth Files, and the exercises you can do to reprogram your wealth files to create a rich life!

Wealth File #1

Rich people believe “I create my life.”

Poor people believe “Life happens to me.”

DECLARATION “I create the exact level of my financial success!”

Touch your head and say “I have a millionaire mind!”

1. Every time you catch yourself blaming, justifying, or complaining, slide your index finger across your neck, as a trigger to remind yourself that you are slitting your financial throat.

2. Do a “debrief.”  At the end of each day, write down one thing that went well and one thing that didn’t.  Then write the answer to the following question: “How did I create each of these situations?”  If others were involved, ask yourself, “What was my part in creating each of these situations?”

Wealth File #2

Rich people play the money game to win.

Poor people play the money game not to lose.

DECLARATION “My goal is to become a millionaire and more!”

Touch your head and say “I have a millionaire mind!”

1. Write down two financial objectives that demonstrate your intention to create abundance, not mediocrity or poverty.  Write “play to win” goals for your:

a. Annual Income

b. Net Worth

Make these goals achievable with a realistic time frame, yet at the same time remember to “shoot for the stars.”

2. Go to an upscale restaurant and order a meal at “market price” without asking how much it costs. (If funds are tight, sharing is acceptable.)

P.S. No chicken!

Wealth File #3

Rich people are committed to being rich.

Poor people want to be rich.

DECLARATION “I commit to being rich.”

Touch your head and say “I have a millionaire mind!”

1. Write a short paragraph on exactly why creating wealth is important to you.  Be specific.

2. Meet with a friend or family member who is willing to support you.  Tell that person you want to evoke the power of communication for the purpose of creating greater success.  Put your hand on your heart, look that person in the eye, and repeat the following statement: “I, _________[your name], do hereby commit to becoming a millionaire or more by _________[date].”

Tell your partner “I believe in you.”

Then you say, “Thank you.”

Conclusion

Follow the exercises, and see your wealth files change to be set for wealth!

Please put your experiences and your answers to the exercises in the comments below!

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What Is Your “Money Blueprint” and How Do You Change It?

Did you know you have a money blueprint?

And this money blueprint will determine if you are rich, poor, middle class?

Did you know that it’s easy to change it IF you have the right tools?

Today we are going to talk about what your money blueprint is and how to change it!

 

Need help with your money blueprint?  Take a Millionaire Mind Experience seminar!

 

You can also have 1 year of support in a mastermind where you create passive income and reduce debt – Apply for the Finance Freedom BETA Mastermind here

11 Key Steps to Finance Your FREEDOM

Would you like 11 key steps to get you on the path to financing your freedom?

I’m talking about time freedom, the freedom to choose your lifestyle, the freedom to work on your own projects, take a day to meditate and work out, go to matinees with your spouse…whatever you want.

Do you want real freedom in your life, so that you have time time to really explore what you were meant to achieve, bring forth and accomplish on this planet?

That’s what today’s video training is all about, the 11 Key Steps to Finance Your FREEDOM.

Freedom is a lot closer than you think!

P.S. I left my bank job on Dec 23, 2017 and have since been helping become financially free faster, CLICK HERE to see how I can help you spend more time with your families, and doing what you love!