Tax/Accounting

How do we calculate ROI?

There does not seem to be an industry standard for calculating the ROI (Return on Investment) based on the properties income, so for the sake of clarity, we calculate our Cash ROI’s in the following manner go here

Whats the right corporate structure?

The most common vehicle for ownership of property is an LLC BUT because everyone’s circumstances are different you should always discuss these questions with your CPA and/or lawyer.

How do you avoid tax?

There are many ways to legally minimise the tax you need to pay by claiming legitimate expenses BUT you cannot avoid it and what many people fail to get is the more tax you’re paying, the more money you’re making. And again make sure you consult your CPA to claim all available deductions

Who collects the rent money?

The Property Management Company collects the rents on a monthly basis and will disburse surplus funds to you after deductions for their fees and if you have a bank loan in place the disbursement will also be net of PITI.