There are two lanes we advise owners of real estate to go down:
1. Asset Protection and Estate Planning – we want you to make sure you are strategically set up with how you own your properties (LLC, Corporation, Partnership, Sole Proprietorship) so you are protected if someone tries to come for your assets. Also, we want to make sure your succession strategy is designed to meet your goals so that your estate is passed on in the way that you want it to be and ensuring the government takes the least amount required by law.
2. Tax mitigation – here we want you to take advantage of all legal tax strategies to ensure you only pay the minimum required by the government.
Note: We are not accountants so we cannot give accounting advice. What we do advise is that you get proactive with your wealth building strategy in both of these “lanes” and the way to do that is to create a team of professionals that can give you the best guidance. That team may include:
Estate Planner: They will make sure your succession plans are still set up to achieve your goals.
Tax Planner: This person will help you determine where, when, and how to buy real estate to minimize the current and future tax implications
CPA: This is the person who will help you implement your tax and estate strategies
Attorney: This person will help you properly and correctly set up your entities, mitigate your legal risk, and
Real Estate Professional: This is the person that will help you identify properties that match your wealth strategy and will help you buy and sell assets as you grow your wealth.
There are a lot of books that will lend insight to these concepts but the two I lean on most are Robert Kiyosaki’s Right Dad Poor Dad and Tom Wheelwright’s Tax-Free Wealth.