Loopholes of Real Estate

by Garrett Sutton

Voted Best Business Book in 2014! by Pacific Book Review Loopholes of Real Estate clearly reveals the tax and legal loopholes you need to know to be a successful real estate investor. Knowledge is power; this book is a must read for the strategic investor. - Geraldine Barry, President SJREI Association & Publisher of REI Voice Magazine There is no time like the present to take steps towards a successful real estate investing venture especially with using this book as your guide. Written by Garrett Sutton who is an acclaimed author, lawyer and advisor to the well-known and well-received, Rich Dad Poor Dad series of financial self help books. Mr. Sutton has also authored numerous other books on Financial/Business self help, therefore the reader can rest assured that the information contained in this book is reliable because it is coming from an expert source and is not offering vague advice on a "get-rich-quick scheme." Loopholes of Real Estate is an updated version of previously published edition(s). The book is divided into five parts each section relevant to the varied aspects of successful real estate investing and the loopholes that protect the resulting assets. Part One - Real Estate Advantages contains the background information (theories and facts) on real estate investing and its benefits. Part Two - Get in the Game advises readers on how to devise an investment plan, gather your personal advisement team, and decide on your investment. Part Three - Tax Strategies - demonstrates how to analyze the financial potential of possible investments, looks at tax advantages and managing your investments. Part Four- Legal Strategies illustrates various legal methods for protecting your investments. Part five - Selection Strategies informs readers of legal and other issues pertinent to choosing a potentially profitable property. Found at the end of every chapter, are sections that detail the viable loopholes related to the information included in the chapter. Also contained in the book are multiple, relevant checklists, referrals to other informative resources (online) and books written by other experts in the real estate field. Being that I am neither a real estate Investor nor someone who has a working knowledge of such things, I expected this book to be boring and doused in confusing lingo but instead I was pleasantly surprised. Written in a friendly tone and worded so that it is easy to understand, this is a precisely written, thoroughly organized guide to all things real estate; it does not just inundate the reader with laws, tax rules, and loopholes it offers lucid explanations demonstrated by case examples that depict real life situations. Additionally, this is not just a book for those looking to attain wealth through real estate investing it also serves as an intensely informative resource for business owners, married couples, business partners, and particularly homeowners, especially chapters 25 (Protecting Your Home and Related Asset Protection Strategies), 29 (Duties Owed by Real Estate brokers and Agents), and 30 (Legal Due Diligence). This is an excellent book for those looking to invest in real estate - the information contained in this book does well to clarify the do's, don'ts and loopholes and I heartily recommend this book as a must read for anyone interested in real estate on any level. Whether you're buying your first home, or adding another multi-unit apartment complex to your vast real estate portfolio, Garrett Sutton's book is a fantastic overview of the "nuts and bolts" of buying, owning and selling real estate. - Pacific Book Review ...Sutton ( Run Your Own Corporation , 2012, etc.), an attorney, expert in business law and one of ... Robert T. Kiyosaki's stable of Rich Dad Advisors, offers clever, if complicated, new ploys to grow

Genres: Business, Finance, Money, Personal Finance, Nonfiction, Economics, Audiobook

352 pages, Paperback

First published January 1, 2013

About the author

Garrett Sutton, Esq. is a Rich Dad Advisor, a nationally acclaimed corporate attorney and asset protection expert.

A graduate of the University of California, Berkeley and Hastings College of the Law, the University of California’s law school in San Francisco, Garrett has written a number of books guiding entrepreneurs and investors. Garrett’s best sellers include: Start Your Own Corporation, Loopholes of Real Estate, Writing Winning Business Plans and Run Your Own Corporation in Robert Kiyosaki’s Rich Dad Advisor series. Garrett is also the author of How to Use Limited Liability Companies & Limited Partnerships and the co-author of Finance Your Own Business.

Garrett is the founder of Corporate Direct and Sutton Law Center, which since 1988 have provided affordable asset protection and corporate formation and maintenance services for investors around the world.

His articles and quotes have been published in The Wall Street Journal, New York Times, CBS.com, Time.com and Credit.com. More information is found at CorporateDirect.com and Sutlaw.com. Garrett serves on the boards of the Birmingham, Alabama-based American Baseball Foundation and the Nevada Museum of Art in Reno, Nevada. He is married with three children and lives in Reno, Nevada.

Reviews

[Mark Sylvester · Rating 3 out of 5]

Lots of helpful tips on asset protection, tax saving and legal strategies for real estate investment. Most of the content is US related so for me living in Canada, I need to do further research to see how applicable it is, but either way I felt like this book offered a great foundation for getting into real estate investment and understanding what it all entails!

[Tao Lee · Rating 5 out of 5]

You can lose in a trial if your renter gets injured on your property and you knew there are cautious signs that could have been avoided. Land trust = no asset protection. LLC are asset protected. You will pay an extra llc tax in Ca. One property in one llc? If you need to bankrupt, so be it, is it the best strategy? There are always real estate everywhere, no matter where you are. Consider tax advantages is the main concern. Apartment nowadays NEEDS storage unit, or the stand alone storage unit will take your business. The lower the rent, the larger pool of people who will be interested.

[Adriana (Mea) Gutierrez · Rating 5 out of 5]

I bought my first house recently, and I’m glad I read this book while in the search process. This book gives valuable information and for someone who knew absolutely nothing about the industry this was easy to grasp. It made me feel more at ease using real estate verbiage and knowing what to ask as we saw houses.

It also made me question what my end goal was with this property. Was it something I wanted to live in for the next 30 years, rent it out at some point, try to flip it? There are so many options and with this book I was able to get ideas to make the most of my investment.

There are many examples, just sift through the ones that are relevant to you, sticky note them, think about them and make your own informed decision based off the information provided.

Also, it’s probably best to read more than one source material to get a rounded opinion. I’ll be looking for a more books to read on real estate investing. If anyone has read anything particularly helpful, please drop the name below- thank you!

[Mark Blane · Rating 4 out of 5]

Sutton takes the reader through the following "tax loopholes" that I found relevant to what I wanted to learn:

1. Depreciation,
2. Cost Segregation in Depreciation,
3. the Real Estate Professional Exemption,
4. Section 1031 Exchange,
5. the Medicare 3.8% Surcharge,
6. why purchasing real estate with your IRA is a bad idea,
7. Limited Partnerships,
8. Equity Stripping,
9. how to take Title, and
10. how to review your Title Report.

For me, getting the above 10 right is getting your money and real estate investment "right." This just reinforces my growing new belief that the IRS Tax Code is a book showing you how to be a business owner, and investing your funds in housing (real estate) in order to reap huge back end tax savings. The more you learn, the more earn in this game.

[Dan Korth · Rating 5 out of 5]

This book offers the most straightforward and comprehensive overview of the strategies, benefits, risks and potential pitfalls that every real estate investor needs to understand. Taxes, legal entities, 1031 exchanges, asset protection, buying, selling, this book covers all of it. As is typical for Rich Dad Advisor books you can't read this book and know everything you'll need to know. You still should consult with your own advisors on specific deals. However, reading this book will provide you with enough info to have intelligent conversations with your advisors and help you know the questions to ask. I can't recommend this highly enough to anyone who is, or is interested in becoming, a real estate investor.

[Gregg · Rating 4 out of 5]

Very Good, Very Lucid. The ideas explored are laid out in a step by step format that allows the reader to build a thorough understanding of real estate fundamentals. The legality of Loopholes that makes real estate investing prudence are shown in real-world stories and case histories. Read, Invest, and Enjoy!

[J Roberts · Rating 3 out of 5]

This book started out weak. It came across as a sales pitch for the first half. I was about to put it down when I dove into the technical matter. The second half of the book made reading worth it. If I were the author, I'd consider rearranging the work and reducing the filler.

[RJ Martino · Rating 4 out of 5]

Very detailed, thorough and in depth.

[Eric · Rating 4 out of 5]

Worth buying for reference

[Adam · Rating 4 out of 5]

Cash flow investing is a slow Loopholes are necessary for tax sheltered personal cash flow!
Nuggets of Truth:

These casual half baked excuses are maddening
Are you timely with rental payments or forgetful with rental payments ?
Get rich slow or poor fast
Will you be a honey and help us raise money
I don't lend money anymore it causes amnesia
Ira real estate tax free
Take advantage of your own valuable real estate...your mind!
4 types of income earned income passive income portfolio income
O.P.T. Other peoples time
I hold the bulk of your wealth in real estate
I'm a man on the street investor

[Delvin · Rating 5 out of 5]

I learned so much from this book! I have goals of investing in real estate one day. If anyone else does and wants to get started, read this book! The author gives you the good and the bad. I took notes the whole time while reading. Very informative!

[Kathleen · Rating 4 out of 5]

This book has a lot to offer in ways of re-thinking investing in real estate. Fair warning, if you live in CA everything is a lot more complicated than the book describes (and the author does warn of this)

[Loretta Wong · Rating 4 out of 5]

The Loopholes of Real Estate reveals the tax and legal strategies used by the rich for generations to acquire and benefit from real estate investments. Clearly written, The Loopholes of Real Estate shows you how to open tax loopholes for your benefit and close legal loopholes for your protection.

[Angel Carlos · Rating 4 out of 5]

Give me a really good insight on own real estate as LLC LP corporation S or C

[Seth · Rating 5 out of 5]

One of the best books that tells you the why and how REI is good for you financially.

[Alex Song · Rating 4 out of 5]

Pretty good overview. It’s not super arcane. Accessible. Pretty useful.

[Mark Bunch · Rating 4 out of 5]

A great read for people wanting to discover legal and finacial loopholes assocated with real estate investments.

[Anthony Guarnera · Rating 5 out of 5]

Goes deep into loopholes of real estate

[Lori · Rating 3 out of 5]

Good info. Kind-of boring.

[Boukman Bastia · Rating 4 out of 5]

Loved It!,

This book introduced to me so many differnt concepts concerning real estate.I also love how he had simple stories to expand the sometimes complicated concepts.

[Beth Crews · Rating 4 out of 5]

Helpful in understanding tax advantages, liability mitigation, and legal strategies for owning real estate investments.

[Cheri Chiddix · Rating 5 out of 5]

Lots of good info. Covered a lot of topics for those just starting. Provided tax insight that will give you a starting point when talking with your CPA.

[Time · Rating 5 out of 5]

good

[Rich Simpson · Rating 4 out of 5]

Slightly misleading title, but still a great lead for real estate investors.

[Ronald J. Pauleus · Rating 4 out of 5]

Really goood facts and insights in here!!!

“Real estate offers huge financial advantages to those who will learn the system.”

[Cagefighter18 · Rating 4 out of 5]

Good book on asset protection and entity structuring thru real estate.

[Halim · Rating 4 out of 5]

Interesting points and very detailed. You might as well find a solution that could literally dave your business and family situations.

[Marie Mcentire · Rating 3 out of 5]

Lots of good info, good refer book

[Ben Harriman · Rating 5 out of 5]

So great book on technical aspects of real estate holding and investing. Lots of real life cases of best and worse case scenarios. You will gain understanding how you should structure for asset protection and tax savings and what and who to watch out for.

[Brad Solomon · Rating 4 out of 5]

Lots of great advice in this book. He goes into everything from asset protection to tax savings to how to pick the best property. Very useful and an easy read. Gives real life examples to make the concepts easier to understand. It's impossible for him to discuss every states individual laws so it's still on the investor to look into these, but this is a great book to give the beginner plenty to think about.