Robert Kiyosaki Real Estate Investing Part 1 of 5

Robert Kiyosaki Real Estate Investing Part 1 of 5
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Discover the best legal entity if you are going to be investing in real estate

30 thoughts on “Robert Kiyosaki Real Estate Investing Part 1 of 5

  1. WhaT states can creative financing not be an option!? Tennessee? Due to deed "regulations?" I was also wondering about your mentoring program. Thanks for the knowledge Phil…Just bought your book! Waiting on it to show up!!!

  2. A few thoughts from a tax accountant here:
    1. Owning real estate as a sole pro does not necessarily trigger self-employment tax, nor the filing of a Schedule C.  Most likely, you are going to file a Schedule E, and the rental income is not subject to SE tax.  So creating an S Corp for the purpose of avoiding SE tax would be a waste of time (and money).  If you are a flipper, then that is another story.  But I think most people watching the video own real estate as a landlord and therefore will not be subject to SE tax.

    2. Passive income is not taxed at preferential rates.  You are referring to capital gains here.  Rental income, although considered passive income, is not capital gains, and is taxed at the same rate as your W2 active income.  

    3. Owning real estate inside an S Corp is ill-advised.  Here are a few reasons why:
    A. Shareholders in S corporations are often limited in their ability to deduct rental losses.  Losses are limited to your basis in the S Corp (this is the biggest drawback).
    B. Most residential lenders will NOT give a mortgage to an S corporation.
    C. S Corporations historically have had a much higher audit risk than other entities.
    *I could probably name 10 more reasons.

    I liked your video, just thought I'd share my thoughts.

  3. In your video I understood you to suggest "flipping" under a sole proprietorship and "renting" as an LLC due to a tax benefit.  Could you provide some more detail as to what exactly the expected tax advantage would be.  I'm unclear as to what tax benefit to expect based on maintaining separate entities.  Thanks.

  4. I have been watching your videos the past few days. Thanks for the presentations. Your easy to understand. I'm seriously thinking of testing the waters in real estate in my area. i recently got completely out of dept and have a decent job in the oil field. So your videos are helping me out. Thanks bud.

  5. I own 4 rental properties at this time. I am sole proprietor. What amount of liability coverage do you recommend? I now have $300000 per property. I feel like that may not be enough. What do you think? Thanks and by the way, I really enjoy your videos and have learned a lot. Thanks so much for taking the time to make these videos and posting them on YouTube.

  6. Hey, Phil  I'm a landlord in DC. I need to set up a LLC. This is what I'm doing. I'm converting my 4-unit apartment into CONDOS. Once this is done.I plan to live in one and sell the three or rather two to paid off the hard money loan…the third one will be profit. What Entity do you suggest?

  7. Hello Phil my name is Mark and I want to go into the real estate industry I don't know anything and have no experience what's so ever what should I do ?

  8. I already own a rental property that orgionaly was also my home (duplex)…is it too late to set up a entity like an LLC? 

  9. any advice for a partnership llc where both partners live in different states? any advice, comments, information is appreciated! thanks!

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