So you’ve found a rental property with great ROI, but it’s in a state with high property taxes? Should you proceed with the deal, or look in a more favorably taxed state? That’s our first question for this Q&A Monday!
On this episode of Investing in Real Estate, I’m answering three listener questions. You’ll learn about topics like property taxes, LLC structures, and bank accounts. Click play to hear my answers to your investing questions!
On this episode you’ll learn:
- Why high property taxes aren’t always a bad thing.
- How to arrange your LLC structure.
- How banking accounts work when you own multiple LLCs.
Why High Property Taxes Aren’t Always a Bad Thing
When you’re looking at an investment, focus on the long-term stability of the ROI. The smaller components of that ROI (like property taxes) don’t necessarily matter. For example, we do a lot of investing in Texas, which has high property taxes. But in that particular market, the ROI is still excellent. Not to mention, many times higher property taxes can mean better schools, more amenities, and longer term tenants.
How to Arrange Your LLC Structure
There are two main ways to set up your LLCs. The first is the traditional hub and spoke model. This is what we use, and have set up through WealthAbility. The second model is called a Series LLC, which we talked about with Scott Smith. I recommend you look into both, and talk with a professional who can help you determine which method better fits your circumstances.
How Banking Accounts Work When You Own Multiple LLCs
If you have a holding company, the holding company owns and operates the smaller LLCs. The holding company pays all the taxes, but each LLC is required to have its own bank account. For further clarification and advice, seek the advice of a certified public accountant.
Ask Me a Question at morrisinvest.com/clayton
Episode Resources
Book a Call with Our Team
morrisinvest.com/Clayton
WealthAbility
Save Money on Taxes, Protect Yourself from a Lawsuit with Scott Smith
Download the FREE Financial Empowerment Bootcamp
Download the Freedom Cheat Sheet
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
