Realty Tax Tips: Fill & Download for Free

Your colleagues are competitors who don’t care to be petty to you. There is no comrades here. Clients will always either love your therapy or absolutely hate it. Places will rip you off, underpay you, tax tips to the fullest, and insurance companies can have Free reign with your license. Your only option is get out of the business. I believe the most disappointing thing of all is that the associations only serve to bully and harass you while insurance decides who gets treated and who doesn’t. This totally biased approach allows for those who don’t fall in line to be punished and unjustifiably discriminated. To top it off thanks to shady practitioners, you can also expect to be constantly sexually harassed and deal with it. So play nice dear because in the end you’re on your own in this business.

A simple tip: DON’T BUY AT 65, RENT. Invest the money. Rent is cheaper in the short run. Owning is more expensive and is only better over the long haul when prices go up because of inflation. Right now, at 65, you don’t have what’s considered long haul time left. Furthermore with covid, many experts expect a crash in housing prices is imminent—either later 2020, or in early to mid-2021. When you rent, you may be the beneficiary of rent controls. Landlord fixes things, pays for utilities except perhaps hydro. Annual increases are much smaller than increases homeowners have to pay for climbing realty taxes, insurance and utilities. The important thing now is to become as liquid as possible. don’t tie up your cash. the economy is likely going to enter a dark depression and some chaos. Buy some gold and silver to protect yourself against declining currency values. Just don’t buy. At least not until the covid thing is completely under control and safe. Then you may be able to pick up bargains on houses that crashed, or that people lost because they had no income. The idea is that when you decide to buy real estate, buy for investment purposes. Rent it out for passive income. Be a tenant in your residence and a landlord in your investments. Those are my personal thoughts. I am not a financial advisor, so make your own decisions. Just consider my opinions and decide if they seem appropriate for you, or not.

I already wrote a fairly comprehensive answer about making about 4% per month. Check put my previous answers. It involves using the money as working capital in an active entrepreneurial endeavor, rather than a passive investment.But for 25% per annum in a passive investment, one of the best ways is rent-to-own single family homes. You buy an affordable house, and rent it to a family on a lease-option basis. They give you a deposit, and pay a higher monthly rent than the going market rent, because they'll get credit for some of it towards the purchase price if they exercise their option to buy. The tenant pays for all repairs. It's usually a 3 year deal. They need to improve their credit to qualify for a mortgage. If they get financing and buy from you, it's at a markup. If they don-t get financing and can't close the purchase, they forfeit their deposit and lose all the extra they paid you to build up a down payment. Either way, you should average between. 25% and 30% per annum on your equity. Be sure to charge them rent equal to or more than 1% per month of your purchase price. From that, you pay realty tax and insurance. You should be left with at least a 10% cap rate, ie, 10% of your gross house purchase price. So if you paid $100,000, and charge $1,000 per month rent. That's $12,000. Taxes and insurance, say $2,000. Leaves you $10,000. If less, then charge more rent, like $1,100. Per month.With 10% cap, ie $10,000. net before financing, you get a mortgage. Say $80,000. at say, 3% intetest with payments of both principal and interest of say, 5.5% constant. So you pay mortgage payments of $5,500. You're left with $4,500 cash on $20,000. cash, =22.5% cash on cash. Plus you've paid down principal on the mortgage of 2.5% of $80,000 or $2,000. You've earned 22.5% cash pus 10% ($2,000/ $20,000) on your investment, ie 32.5% or annum.75% of rent-to-own deals are never completed, ie, the renter/buyer walks, and forfeits all the extras paid. Caution: some get angry and seek to damage the house. Tip, pay them money to vacate after you inspect the home to ensure there's no damage.Because they believe they'll become owners, tenants treat the property like owners, taking care of it. Because of that, and that they are responsible for all repairs, managing a portfolio of these could be a breeze. You could avoid using a property manager.To make this biz model work, you need to be able to buy a house where the price X 1% is only slightly higher than the going rate for rents in the area. So it won't work if houses cost $500,000. and monthly rents are $1,500. You'll be able to charge $200, $250 or $300 per month more than prevailing rents, because the tenant will get credit for that extra off the purchase price. But you'd need $5,000. per month in rent, which won't fly. You need to look in other communities where house prices are much lower, say between $100,000 and $200,000.Rent-to-own, lease option single family homes is the best way to earn approx. 25% per annum on your money, and to have minimal work.