Monthly Archives: August 2016
Regardless of whether you are a real estate agent or a loan officer, there are plenty of occasion where you will want to offer a bottle of wine as part of celebrating some event. This includes the successful sale of a home, as well community events where you may want to have a high profile. At the very least, when you use custom real estate wine labels, you can rest assured that they will grab everyone’s attention.
The Prestige Associated With Custom Wine Labels
Consider a situation where you are a fairly new real estate broker in your local area. Even though there may be plenty of potential houses for sale, you may be having a hard time drawing clients. As may be expected, homeowners will always want to find a real estate agent that will help them get the highest price possible. In many cases, people automatically equate custom labeled objects with the kind of prestige that brings in more money. Therefore, when you offer wine bottles with custom labels, you will be creating an air of distinction that will set you ahead of other real estate offices. At the very least, a good bottle of wine is less trite than a pen or business card with your name and phone number on it.
Getting Noticed in Your Community
If you are a loan officer, it may be difficult for you to gain recognition in your community. Typically, your bank will have to sponsor some type of event, or you will need to get involved in various community activities. Even though you may enjoy taking part in these occasions, you can still make use of wine bottles with custom real estate labels on them. Among other things, you can send these bottles of wine to business owners in your area, as well as provide a list of real estate agents that you work with. In these difficult times, you will always want to find some way to network with other business owners in order to further the ability of your office to create vital loan transactions.
Celebrating a Special Sale
When you work closely with someone that wants to buy or sell a home, there is nothing quite like the moment when all the pieces come together. While you may not feel comfortable with giving a large scale party, you can still provide a free bottle of wine to the new homeowner, as well as the people that just sold their property. Even though they may not need to conduct further business with you, the bottle of wine will stay in their home, as well as their memories. From there, they may feel quite happy to refer other people to you that need the services of a realtor.
There is no question that real estate transactions represent an enormous value to the community, as well as the individuals trading property for money. As a real estate broker or loan officer, you will always need to think about creating an image associated with elegance and affluence. A bottle of wine with your custom logo on is one of the easiest things you can do to create this image.
In addition to simply forming a business entity, there are some other useful vehicles for saving on taxes. This is not a discussion of business write-offs, but rather of techniques or tools for keeping more of your revenue. Examples include:
1031 tax exchanges
Use of living trusts
Dividend paying whole life insurance
Self Directed IRA
In the case of exchanges and trusts, these tools allow for transfers or upgrades of assets without being subject to substantial capital gains taxes. Sure, there are rules and regulations for how to do this properly, but again that is a better question for an accountant or estate attorney.
In the case of whole life insurance or retirement accounts, these tools allow you to use capital housed in them to invest in real estate or other commodities. The return that is paid back to them can be structured to where it is tax deferred or, in some cases, even tax-free. Be sure to ask your team members about these kinds of tools for your business and also keep your eyes peeled at your local REIA meetings because these also are common discussion topics.
Winning the game of business and tax savings is not about beating or outsmarting the IRS. This is old school thinking. If you have to write a big ugly check to Uncle Sam then this means that you had a decent year. Go make more money and hope that you’ll have to write a bigger check next year.
Key Point: Remember, your duty, as a business owner and real estate investor is to focus on revenue, not cost control.
Many of us have the mindset that sticking it to the -tax man’ is good, which implies an adversarial relationship with the government’s tax system. That just isn’t the case when it comes to running a business. Without a doubt, the best way to minimize your taxes is to be a business owner. Companies are taxed at a lower bracket than individual earners and, to boot, are taxed on net income, not gross income like everyone else. That itself is a huge plus for bringing more organization to your business.
When it comes to how you are viewed in the eyes of the IRS, the exact stats are staggering. Corporations and LLCs that claim certain business deductions are some 7-10 times less likely to be audited than a sole proprietor who makes the same deduction claims. Why? A corporation is a business that usually has its own tax identity and thus is less likely to throw up red flags to auditors. Individuals have every right to run their own businesses without the use of an entity, but they also must be more cautious when it comes to deducting expenses. The IRS simply keeps a closer eye on sole proprietorships, due to past and present abuse of the business deductions that are allowed. Whatever you do, keep good financial records and you’ll have little to worry about.
In summary, when the government makes it clear that incorporating or registering an LLC is a proven way to reduce your risk of tax audits, why not go with it? These entities can also be better ways to protect assets, and once you have assets worth protecting, you can and should want to do everything you can to get the job done.
So, continue investing in your education as a real estate investor, too. There are many opportunities out there, be selective and choose proven avenues that will help you use the information and actually make money using it. I encourage you to check out the tools I can provide, it’s the same material I use everyday in my own business.