Dean Graziosi’s Profit From Real Estate Now Review – Does it Truly Deliver?

Who is Dean Graziosi?

Dean Graziosi is a multi-millionaire and a very successful real estate expert and author. He has over 20 years of experience and teaches people on how to take his simplified business strategies and use them to make money in today’s bad economy and declining realty market.

His first sight of success came at the age of only 16 when he began making money buying and selling automobiles. He then carried on that success two years later when he made his very first investment at the age of 18. He purchased a ruined apartment building with no money down which he renovated and sold for a nice profit. From there on, Dean began taking his career to the next level by producing his first infomercial “Motor Millions,” in 1998 and then formed Dean Enterprises, LLC as his official production company in 2003. His first book “Totally Fulfilled,” was self-published and released in May 2006 and made the New York Times best-seller list. Other successful products that Dean has released are “Be A Real Estate Millionaire”, “Think A Little Different In Real Estate”, and the #1 best-selling real estate book in America “Profit From Real Estate Right Now”. He also gives back to the community by donating to Richard Branson’s “Virgin Unite” charity.

Dean Graziosi is an exceptional individual and has never let his poor childhood hold him back from accomplishing his goals and financial dreams. Today he continues to be a prosperous realty investor while being seriously committed to helping others achieve success.

What is Profit From Real Estate Right Now?

Well first you might ask what is behind the concept of “Profit From Real Estate Right Now”. Many people think that this is a terrible time to invest in the market because the economy is so bad today, but Dean thinks otherwise. He wants to prove that with a bad economy comes a better opportunity to make money in real estate right now. In this phenomenal book, Dean Graziosi wants to teach you how to take nothing but your own ambition and turn a huge profit in 30 days or less. It doesn’t matter if you have little or no experience at all with real estate because Dean Graziosi believes that anyone can do this and has never seen a better time to earn serious income than in today’s current recession.

Dean Graziosi shows you how to master his techniques and strategies in his many informative chapters, such as: Profit in a Down Real Estate Market Today, How to Identify Killer Deals, and Getting a Ton of Very Motivated Buyers to Find You. He also offers steps to take next at the end of each chapter and even provides some success stories of other people who have accomplished their goals with his book.

Is this book the real deal?

Well now that you know more about Dean Graziosi and what his book “Profit From Real Estate Right Now” is all about, there’s just one more question: can this book really help you become successful? I’ve done some intense research on this topic and Dean Graziosi himself and I did not find one bad report or complaint. In my opinion, personal experience is worth more than any report or article you’ll ever read, but you also have to consider the facts. You’ve seen some of the success that Dean Graziosi has already achieved and the fact that he has the #1 real estate book in America says a lot about what you can attain with his knowledge and 20+ years of experience.

His focus isn’t to just make money or seeks to rip people off. He’s devoted to helping other individuals reach the American dream of personal and financial freedom and success. I would definitely recommend Dean’s book to anyone looking to acquire expert advice on realty investing and how to profit from the current recession.

About the Author

Real Estate Tax Strategies And Forming An LLC

The 1st step in doing any real estate investments is to start a business. There are different types of business entities: sole proprietorship, Limited Liability Company (LLC), Series LLC (only in certain states), Limited Liability Partnership (LLP), LLLP, S-Corp, C-Corp. Series LLC can be set up in following states: Delaware, Iowa, Oklahome, Tennesee, Utah, Wisconsin.

Each of them has its advantages and disadvantages. The only true flow through taxation entity and the most beneficial in terms of holding real estate is Limited Liability Company. Limited Liability Company allows you to pay for business related expenses with pre-tax dollars. It is very important to understand that when you get paid and receive your paycheck, your taxes are already deducted and all your expenses whether they are real estate or business related are deducted on AFTER-TAX basis. When you have an LLC, you take all business expenses, deduct them, and pay income tax on what is left over. LLC does not require records and minutes of meetings. Filing paperwork is limited to articles of organization that lists LLC members. Tax Advantages: LLC is a pass through entity and if it is a single member the entity is considered disregarded by IRS. A corporation is subject to double taxation where not only the profits are taxes but also distribution in the form of dividends are taxed as well. The other advantage is flexibility in terms of LLC ownership transfer. LLC ownership is guided by Operating Agreement, which is an internal document. In order to change ownership all that needs to be done is the Operating Agreement and no filings are required besides updates with IRS for given tax ID number. LLC is the only entity that is NOT subject to loss limitation! It also has less filings than an S-Corp and very easy to maintain. If you have multiple properties, have them each in LLC and have one LLC to be your holding company that would own all the other LLCs. For tax purposes your main holding LLC will be a sole member LLC for the other ones and you will need to file only one tax return. In addition to the tax benefits LLC also allows you to have a basic level of asset protection. If your business owns the assets, they are separated from your personal assets and in case of a law suit they can not be touched. Please, note that LLC is a BASIC level of asset protection and if the opposing party has a good attorney there are many ways how your personal assets can become a part of a law suit. It is called piercing corporate veil. For example, you are required to have a separate bank account for an LLC. If your LLC owns your property, then all property relates income and expenses have to come out of that particular bank account. If this is not done, the LLC status can be disqualified and your personal assets become part of the lawsuit. Your LLC must be in good standing with the state and your must have adequate information on your article of organization. The purpose of the business must be clearly stated with no exclusions and you must file amendments when necessary. If you buy real estate, you should say that you buy, hold, rent or lease residential real estate; if you sell, you must state that you buy for the purpose of resale for profit, etc. In some states it is necessary to publish LLC in a local newspaper, and it can get very expensive; in other states like Maryland you need to pay annual fee, which is currently $300 a year. You need to check on your state requirements and guidelines and always be in good standing with the state.

Primary Residence. If you have an LLC, you might need an office and conveniently enough it could be in your personal residence. According to IRS Code 288G, you are allowed to deduct rent payments for your office space in your personal residence.

Depreciation. It is the most beneficial deduction in real estate! While your real estate is appreciating, you are allowed to depreciate it over the life of the building, which is 27.5 years and take the deduction against your income. However, depreciation is allowed only against the building, land can not be depreciated. For example, if you own a house thats worth 100,000, the value of the building might be only $80,000 and the value of the land is $20,000. Thus, you are allowed to take depreciation expense against the value of the building only.

Accelerated Depreciation. You might have heard from your accountant that accelerated depreciation is not allowed against real estate, and it is true, but there is a way to make improvements deducted in prior years and it all depends on how they are classified. For example land improvements such as curbs, sidewalk, and landscaping are depreciated over 15 years; personal property is depreciated over 5 years. Items that are considered personal property according to IRS code 1.48-1(c) must have one of the following features 1. accessory 2. function 3. movability. Basically everything that is an accessory, functions or movable is real property. If you are doing a rehab and can install movable walls, you can deduct the cost of improvements over 5 years. If they are not movable, then you will have to take 5-6 times less deduction for improvements in the next 5 years. Make everything you can either function, be an accessory or make it movable! One commercial developer built his office building with light weight movable walls and was able to deduct $80,000 that same year.

DEALER status. When flipping properties it is important to avoid “DEALER” status. In some case it can be avoided by flipping properties through different entities, in some cases by doing a few transactions, but the easiest “investor friendly” way is to simply state your INVESTMENT INTENT. If you state that your investment intent is buy, hold, lease, and rent properties unless forced to sell under certain conditions like need for working capital, you can get away with not being considered a DEALER.

IRS Red Flags. There are also certain things you should not do that would raise red flags to IRS and you might get audited. First, do not report too much rental income loss, there are plenty of expenses you can find to reduce your pre-tax income. Second, do not over complicate your asset protection structure. Having too many business entities on top of each other, or having domicile headquarters in Las Vegas, NV, tax free state could be a red flag. Reporting losses for more than 2 years always raises red flags. The common sense behind it: “if you do not make money why are you still doing business?”. Reporting excessive donations, high expenses vs high income can also cause an audit.

Property Taxes. Real Estate Investors are subject to a number of taxes including property taxes. Assessed value and market value of the property always have a gap. In 2007 assessed value was normally lower and in 2010 it is 99% of the time higher than market value of real estate. The taxes are not always reassessed depending on the market cycle and it is your responsibility to dispute them. In state of Maryland it is allowed to dispute personal property taxes within 60 days off settlement date or file before the end of the year for the next year hearing. Even though taxes are a deduction against income, they are not a tax credit, and the more you can minimize your expenses the more profit you will end up with. In order to successfully dispute your tax bill you would need to show the comparables and recent sales prices of real estate in your area. You will also need to compare the real estate that was recently sold to your property in terms of structure, number of bedrooms, bathrooms, square footage, amenities, etc.

Capital Gains Taxes. This type of tax is imposed only when you sell the property. The difference between purchase price and sales price is subject to this tax. There are exemptions to homeowners who lived in the property for at least 2 years and the amount of profit. There is a way to defer capital gains taxes by doing a 1031 Exchange. Make sure that you contact an escrow company and do everything within IRS guidelines. According to this IRS rule you can sell your property, find another property, make an offer within 45 days and settle on a new property within 6 month and defer paying capital gains taxes. According to the IRS tax rules, the property you are buying must be “likewise” property, meaning it does not matter if it is bigger as long as it is “investment” just like the one you just sold. So you can buy a single family house and buy an apartment building as long as both were investment properties.

What is essential to know before setting up an LLC?

The NAME. Your business should be in the name of your LLC. Most companies name LLC by the street address, for example 17 Lexington Ave LLC…I prefer to name them by the number and street name only without St..Ave..Ct.etc For example 17 Lexington LLC. It is just easier to remember and shorter to write. When you get a number of LLCs set up it starts getting confusing which one was St or Street or Ave, and the correct spelling of the LLC is essential in absolutely everything you do.

CHECKING NAME AVAILABILITY. Once you pick the name, you need to check the name availability with the Secretary of State Office. In many states in could be done online, and if you go to Secretary of State Office, they can check it there for you as well. I like to go in person to file all paperwork just because I can get everything done right there and get all paperwork in my hands the same day. In state of MD it costs extra for expediated service but it is worth paying because you need to get your bank account and everything else straightened out right away.

ARTICLES OF ORGANIZATION. Articles of Organization is the name documents that lists members and managers of the LLC. It does not have to be registered with the state, at least in MD and NY.

REGISTERED AGENT OR RESIDENT AGENT. An LLC requires a resident agent to serve on behalf of the LLC. It can be a business entity or individual that resides in the state where LLC was formed. For example, if you live in state of New York, you can list your name and address as a registered agent, or hire a company to represent the LLC. If the LLC is formed in another state, it is necessary to have a registered agent in that state.

LLC organizer. Members of LLC or somebody authorized to register LLC.

EXISTENCE of the LLC is perpetual and does not end with the death of its members.

WHAT MISTAKES TO AVOID WHEN SETTING UP LLC:

1. Start without a budget. It is necessary to incorporate budget for setting up LLC, which includes filing fees, fees to maintain LLC (in state of Maryland department of assessment and taxation required $300 annual payment just to maintain LLC in good standing), fees that accountant will charge extra at the end of the year to file taxes, some states require LLC to be published and it might be VERY costly (e.g. in New York it can cost a couple thousand dollars, but Maryland does not require publishing at all), initial contribution requirement needs to be met, annual fee to resident agent, separate bank fees might be charged for an business account like checks, monthly service fees.

2. Neglect to check the name availability. It is absolutely crucial to check the name availability for LLC before filing and paying the fee that might be non-refundable! Not only that, if you file paperwork, you wil probably have the same LLC name where the title is transferred to the property and it can become a problem.

3. Always hire an attorney. It is not true that only an attorney can file paperwork and write up documents. Anybody can be qualified to file on behalf of LLC, and in many cases it is unnecessary to pay attorney fees.

4. .Neglect the other paperwork. It needs to be checked what paperwork is required and needs to be filed in each state, and it is YOUR responsibility to check even if you hire a professional to do it for you.

5. Contribute lots of Caputal-might not be a good idea. Each state has a minimum amount required to be contributed to the LLC. Only this amount or what you need is necessary to contribute, because if you need to withdraw funds it becomes distribution of capital which is a taxable event in the eyes of IRS.

6. SKIP over BUY-SELL agreement. It is necessary to have an exit strategy, especially when LLC is a partnership because you never know what can go wrong and it is always better to have everything in writing.

7. Get tax ID later is not a good idea because it is better to get everything right away including a bank account. Without tax id you cant have a bank account and without a separate bank account IRS can disregard LLC as a business entity

8. Just ballpark the income tax. Never estimate what your income and expenses are and keep accurate records of everything. If you have a separate LLC account for the property, write checks from that account for all expenses including maintenance, state fees, property taxes, management fees, advertising fees, and all other expenses related to that property.

9. USING LLC account for personal benefit is absolutely unacceptable and can be VERY COSTLY. If you ever get in a lawsuit, the other party may sephina bank statements. If LLC account was not used solely for the purposes as stated in operating agreement and contain unrelated expenses, the status of the LLC can be disregarded and you can become personally liable for the law suit.

Effective Real Estate Call Capture Advertising For the Holidays

Even in a recession, individuals flock to shopping malls and places of business during the holidays. From stopping at gas stations on their way to holiday parties to shopping for gifts in department stores, people are out enjoying the jovial atmosphere during the holiday season. Because of this, companies often find the holidays to be an ideal time to advertise and grow their business. This is true for the real estate industry as well. While the holidays may not be a booming time for home sales, the beginning of a new year can be. Because a home buyer or seller usually ends up working with the first agent they talk to, now is a good time to pump up the advertising efforts. Catching buyers and sellers early in the decision making process is crucial.

Traditional methods such as holiday cards, signs, and billboards can no longer meet the growing needs of real estate agents who often work long, demanding hours. Agents cannot always answer every call that comes in. They many times don’t have the budgets to hire assistants to help them answer phones while they are showing properties or meeting with other clients. This means that the efforts spent on holiday advertising can be quickly lost on customers who call, do not receive an answer, and never call back.

Call capture, however, is an innovative tool for real estate agents who want to make the most of their advertising dollars during the holidays. This technology allows agents to not only have the ability to identify interested customers, but also to learn which of their holiday advertising methods work best. And because call capture allows callers to listen to a pre-recorded message, real estate agents are spared the need to answer every phone call.

By advertising their call capture numbers during the holidays, agents can grow their business. The holidays draw more people out of their homes and offices – they attend parties at homes and places of business, they shop in new neighborhoods, and they dine at new restaurants. With more people in the areas that an agent advertises in, the more likely it is that larger numbers of people will respond to advertisements. This is especially true when visitors to a neighborhood see a property that they are curious about or interested in. When real estate agents advertise their call capture numbers, these visitors can – with no pressure – place a phone call from their cell phones to listen to the pre-recorded message about the property.

Additionally, the holidays also provide many innovative ways to advertise call capture numbers. While signs in front of properties are an obvious example, holiday billboards, sponsorship of holiday events, and even cards and gifts allow real estate agents to extend pressure-free opportunities to consumers to learn more about their available properties and services. Holiday billboards give individuals a chance to offer holiday greetings, while advertising a call capture number that can encourage individuals who are interested in purchasing a home to call.

Many communities have holiday events such as plays, concerts, and school pageants. Donating to these events is a way to give back during the holidays, but sponsorship also comes with the opportunity to advertise on the event’s brochure or playbill. When real estate agents feature their call capture numbers, they have the opportunity to reach a larger customer base. Finally, holiday cards and gifts can also be advertising opportunities for the real-estate business. These opportunities, along with traditional ways of advertising in newspapers and newsletters, allow real estate agents the chance to give back to the community while still advertising their call capture number.

Further, by using call capture, real estate agents can quickly see a boost in their businesses. Because people are most likely still in the early stages of the decision making process during the holidays, they will be put at ease by knowing the can get a pre recorded message – not a high pressure sales pitch. Instead, customers can simply sit back and listen to the message describe the features of a specific property. At the same time, real estate agents are given access to the customer’s number through the call capture technology, allowing the agent to pursue the relationship with a friendly follow-up call. Finally, this technology allows real estate agents to make informed choices about where to advertise, since the call capture technology isolates and tracks which advertisement generated each call.