Ron Climer Mountain Messages
Ron Climer writes about real estate topics in western North Carolina. Motorcycle destinations are a favorite topic. Ron also writes about public speaking skills and presentation skills.
Sunday, January 14, 2024
This Scam Is So Simple
Thursday, November 16, 2023
Do You Have a Story To Illustrate That Point?
Wednesday, January 18, 2023
New Real Estate School In Daytona Beach, Florida
Monday, December 26, 2022
Ron Climer Real Estate School in Daytona 2023
Friday, April 29, 2022
Karen Climer and Ron Climer Are Real Estate Instructors
Friday, October 9, 2020
Use Donald Trump's Tax Reduction Tools So You Will Pay No Taxes
It has been reported in the news lately that in recent years, Donald Trump paid only $750 in taxes to the IRS. How can this be?
Would it surprise you to learn that interest paid on a mortgage is tax deductible? How much is the annual interest on four hundred million dollars? Trump pays mortgage interest. He does not owe tax on the money he pays as interest. If you owned some rental property, and if you were paying interest on a mortgage on that rental property, those interest payments would be tax deductible.
Do you know what is better than tax deductible interest? DEPRECIATION, the real estate owner's ultimate tax deduction. Interest paid on a mortgage is tax deductible. Trump probably pays twenty million a year in interest. He does not have to pay taxes to the IRS on that money. He does have to have income to pay that interest.
Depreciation is better than that! If Trump owns five hundred million dollars worth of real estate, he can write off (as an expense) depreciation of about thirteen million per year just as if he is paying the thirteen million to someone. Who is he paying it to? Nobody! What a loophole.
Let me help you pay less taxes. |
If you are a forty year old employee earning $100,000 per year salary, you are probably paying taxes to the IRS. You could buy yourself a duplex for $250,000, You could put $25,000 down and get a $225,000 mortgage. The rent could make the payments. Time and inflation would cause the property to increase in value. As you made the payments with the rent money, your equity would grow every month as your principal payments reduced your mortgage amount. The interest would be tax deductible.
Just like Trump, every year you could write off about $7200 in depreciation. You could tell the IRS that you had this depreciation expense. Who are you paying the $7200 to? Nobody. It works for Trump. It will work for you.
If you are currently paying money to the IRS, there is no better way to reduce your tax bill than writing off some depreciation on rental property. Call me, Ron Climer, Realtor at 828 755 6996. I will help you buy your first rental property. Real estate is the ideal investment. Watch this short video.
If you do this when you are forty, thirty years later you will be seventy. You will ask yourself," Where did the time go?". Now, your first investment property is paid for. It is free and clear. Not only that, it has doubled in value. The rent has also doubled. Owning real estate is wonderful. What a retirement program!Friday, July 31, 2020
Old Realtors, Please Quit Bullying Young Realtors
Learn what has to be done and why. Zig Ziglar told a story about a young man that went to his family gathering. His young wife asked her mother in law why she cut the end off the ham before she put it in the oven. Her mother in law told her that was the way her mother always did it. The new wife asked grandma why she cut the end off the ham before roasting it. Grandma said her mom had taught her to do it that way The new wife went in the other room and asked great grandma why she always cut the end off the ham. Great Grandma told her it was because her roasting pan was too small.
If you learn that some aggravation or chore is unnecessary, don't do it Don't suggest that your client aggravate himself complying with a nonsense rule.
For instance, it states in the listing that, "cash offers must be be accompanied by a "proof of funds" letter. Who made that rule? The seller or some Realtor that heard about this technique at a seminar?
Would you advise your seller to accept this offer? $300,000 price, $40,000 escrow deposit, no finance contingency, we close in ten days. No accompanying "proof of funds". Would you? If you did, you would likely be sitting at the closing table ten days later. OR you could suggest to the seller that we NOT accept this offer without a "proof of funds" letter.
Would you advise your client to accept this offer as it is or would you demand a "proof of funds" letter? I would advise my client to take the offer. Ten days later, he will either be closed or he will get half of the forfeited deposit and I will get the other half. With a $40,000 escrow deposit, this transaction will very likely go to closing. If it doesn't close, we have wasted ten days. Who cares? I still have the listing. I know that the seller will accept $300,000. The seller has $20,000 in his pocket and so do I. The buyer knew all along that he did not have the financial wherewithall to close. Who is he mad at? Only himself.
The original purpose of a "proof of funds" letter was so the buyer's agent did not waste their time showing property to a buyer that did not have the ability to buy. In many instances, it should be a concern to the seller that the buyer may be unable to close. Not always. Very few rules are always.
What if the listing agents says, "We will not submit your offer without a "proof of funds" letter? First, why would a listing agent say such a thing? In Florida and almost all states, the law requires the listing agent to PRESENT ALL OFFERS to the seller unless they have written instructions to do otherwise. Mr. Young Realtor, let Mr. Old Realtor know that if your offer is not presented to the seller, he should be prepared to defend himself to the Real Estate Commission investigator. This may seem harsh. When you deal with a bully, the bully needs to know that you don't like being bullied.
Quit putting up with bullies. Call a prospect today.