Don't make this HUGE mistake when buying property
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- čas přidán 30. 11. 2022
- Don't make this huge mistake when buying property
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DISCLAIMER: I`m not a financial advisor and hence the content of these videos are for educational and entertainment purposes only. Investing is a risk related practice and should be approached carefully.
Please make another video going to detail on buying and renting properties through seperate entities
Sure thing will definitely look into this, will be a much longer video though. Will post it soon 💪🏻🚀
Hi Louis, may i have Jacos contacts. I would like to set a one on one. Thanks. Great video
Totally agree with you people need this knowledge and why
Thanks so much 💪🏻💪🏻
Louis, thanks for the great content buddy!
In my experience buying through a company does have a few drawbacks when you finance it through a bond:
- The banks will not finance a company without the owner signing surety. This then implies that the finance deal will still be based on your personal finances and the suretyship will reflect on your personal credit records. Sign a few suretyships then you will soon run out of the capacity to sign suretyships?
- Bank initiation fees and monthly service fees are significantly higher when financing through a company
- Interest rate is usually higher when financing through a company with little equity
- The admin costs do add up over time when financing through a company
It would be great if you could do a video comparing the two scenarios on a R500 000 property (including the tax implications upon death)!
Hi Glen , thank you for your comment. You have some really good points and you definitely understand the implications of investing in a different entity.
Just to elaborate a bit on some of the points. Signing surety can be done over and over again. Financing on the otherhand might not be granted if the person signing surety can't afford the loan. The idea would be to have a profitable trust or company to eventually sign surety instead of signing in your own name. This however takes time. But lets say you do run out of financing, a averag person would be able to own around 3-5 properties in his/her own name where as if you use trusts/Companies they will be able to own around 7-10
The registration and transfer cost is determined by the price of the property and not the entity its bought in. The admin cost from the banks side will also be the same.
Admin cost of the actual trust or company will be more because you need seperate financial statements and tax returns etc. This is definitely worth it since there is so many advantages to using a separate entity. I also regularly get prime rates even though its not bought in my own name.
Ill try to make a video about this but for now you can have a look at this video. I know its long but it might answer some of your questions. czcams.com/video/Ggym4H_CL7Y/video.html
Louis, we purchased all our properties through our business. (For all the good reasons). Alas as we live on the proceeds from the business we take very little out of the business. Regrettably when we attempted to buy a property subject to finance, the bank declined as the surity (us as directors) did not qualify on affordability grounds.
Thanks for sharing. I would like to know some of the details because it is quite strange that they didn't allow any debt. It depends on your net income and your own affordability and credit worthiness when signing surety for the company.
Feel free to pop me an email at louisreynhardt@gmail.com if you would like to share more info or consider booking a zoom call with me. Thanks for watching. 💪🏻
You've won over a new subscriber. Thanks, great video.
Great news. Welcome to the channel 🙏🏻
Hi, great video again. The different structures sounds great, please make these videos
Thanks so much.
I made a full video about this.
czcams.com/video/Ggym4H_CL7Y/video.html
Follow this link and let me know if you have any questions.
Would love to hear about the different entities.
Thanks Jean, will poat a video about this in the coming weeks.
Great video! I wish there were a small recap at the end would be helpful and possibly going deeper into there threors to help us take the fist steps.
Thanks Jared, will do some sort of recap in my coming videos. You can check out this video if you want to learn a bit more about the structuring. czcams.com/video/Ggym4H_CL7Y/video.html
Thanks for your comment
Thank you for an interesting video. Would like a video on property in Trust.
Thanks, my friend. Check out some of my other real estate playlist videos. Or search for Louis Reynhardt : trusts
Great topic. Hope to learn more on trusts, if possible and to transfer everything to a trust. How a trust is setup and are there costs involved to have it all in a trust etc etc etc.
Thanks man, will make a video specifically about this. These are some good questions. Keep a look out for the video in the near future 💪🏻🇿🇦🙌🏻
👊Thank you
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Thank you, great video as always, looking forward to your next video where you will unpack buying property under a trust. Please also include the financial implications such as having to appoint an auditor to check your yearly financial statements plus taxes🙏
Thanks alot , I will definitely look into making a video about this in the near future. Will try to post it here when its uploaded🙌🏻💪🏻
@@louisreynhardt thank you, much appreciated 🙏🙏🙏
Always Thankful!!! ❤️ Thanks once again... I've been waiting for someone to simplify this and advise us straight up!! No left, right, run here, jump there, and tadaaah!!! Congratulations! You're in a pile of debt sh!t
Pleasure Girl, really apreciate your comment! Thanks for watching 🙌🏻💸
Nice tips.
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Very insightful and helpful video even though I don't own property yet, I hope one day I will. Love to learn from an experienced person like you who actually bought property and know the process.
Sadly with the latest interest rate hikes, I doubt myself and many people will be buying property anytime soon.
What are your thoughts on when to buy property with regards to the interest and inflation rates ?
Thanks alot, your comment really means alot. Never say never, if you are driven to buy property, you will buy property. I always say, the best time to buy property was 20 years ago, if not then , now.
There will always be economic cycles, ups and downs with interest rates, if you want to own property long term the best time to buy is now. No one can time the market. Its the same with stocks. I am still making offers on proeprties even with the higher interest rates.
Hope this helps💪🏻
Please do the video on owning property under different business regimes
Sure, check out the videos inder my property playlist. There is many videos touching on this. Comment again if you still have questions. All the best 💪🏻
Wow. Thank you so much. What the procedure to follow when investing in a trust?
Im sure you watched my trust video that explains a bit more in detail. If you still have questions, you can let me know so I can answer them 🙌🏻
hi louis...I am addicted to your channel since 1 week ago. You are exactly what I've been looking for. I currently own two properties in south africa and am about to purchase a third. I don't intend to stop any time soon as this is my long term retirement plan. However, I spend most of the year overseas and therefore, I don't have the ability to set up trusts etc. Is there any way that I can hire someone to do what you do for me?
Thanks for supporting the channel. Appreciate the positive feedback. You can always pop me an email st louisreynhardt@gmail.com and we can chat from there. I can recommend someone who can help you with the trust setups remotely.
Which company do you use for setting up trust and company structures to buy property in
I use Prosperity Enterprises. They are a great member to have on your team. You can use my name as reference. Just google them.
Thanks for the information where do I go to open a company can it just be a company or must it be a specific company?
You can open an LLC. I would suggest working with an accountant who can guide you and advise you on the admin and tax implications 💪🏻💪🏻
Hi thanks for the great advice.
Can you buy a property in your business name and use your salary as appreciation income?
You can use your companies income for the bond. If it has a track record of more than 2 years and it has the affordability.
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im learning alot from your videos Louis, how do i learn more about property investing, any courses or books you can reffer me to?
Hi Bevan,
Thank you for watching me videos. Really appreciate your comment. Keep watching CZcams channels to educate yourself. You can look at bigger channels like Meet Kevin, Graham Stephan, or even another RSA channel, Laurens Boel.
Some books would be Rich dad, poor dad,
Rich dad, poor dad, Cash flow quadrant.
All the books of Jason lee
Laurens Boels book called financial freedom through property.
Somer other books can be Napoleon Hill, think and grow rich.
If you want to reach out to book a one on one session, you can send me an email at louisreynhardt@gmail.com
@@louisreynhardt thank you for the feedback, allow me to brush up on my knowledge first before i reach out to book a one on one session.
have a great week
I need you to. Explain this video waaaaay longer lol... South African in Germany wanting to invest back home
Sure thing, planning on making a more detailed video about buying property in a trust 💪🏻
Hey Louis .. Thanks so much for the information brother... I bumped into your videos today... am going through all of them now... I am in a process of buying a rental property on my personal name , how easy will it be to transfer it to my business ( CC ) after a year or too...will be a wise idea ?
Thanks so much for your comment, glad you came across my channel. There's alot of valuable videos about property that you can watch on my channel.
If you buy in your personal name and eventually want to transfer it to a trust or a CC you will unfortunately have to pay the transfer and registration cost again. So if you are not too much in a hurry I would suggest using the right structure. I am busy working on a video about this and should post it tommorow or on Friday, this will help you alot. Keep a look out for this video
@@louisreynhardt Thanks Louis... I have put notifications on for your channel... Enjoy the festive with your family and stay safe
Please do an entity based video
Hi Johan, Ive made a video with my mentor that goes into detail about the entities. I know its a long video but its definitely worth the watch. Alot of info that is hard to find is shared in the video. You can also reach out to Jaco to speak about the trusts/CC in more detail.
I hope this helps and would love to hear your feedback. Heres the link : czcams.com/video/Ggym4H_CL7Y/video.html
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Can one setup a trust while in a process of applying for finance and do get 100% loan?
Yes, you can if you add it to the suspensive clauses in the OTP. But I would suggest sorting it out before hand.
Please consider my property course as it holds a lot of value and important information.
To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration process.
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Big bro, kindly help me with your attorney that did setup your trust.
Sure, pop me an email at louisreynhardt@gmail.com 👊🏻
❤what if you buy three on your name and thereafter open a CC to buy more through?
Great question, but it won't work unless you have a Cc that is profitable on its own and on its own has enough affordability to buy the property.
Meaning opening a new CC wont work
@@louisreynhardt or buy three on your name and then open a trust if you want to buy more on? Thanks for the answer!
It will be the same as my previous reply. You can always try to sell your property from your personal name to the entity, but obviously theres alot of cost involved. So starting of the right way is best practice.
Hope it helps
If you buy a property through a structure like a Trust, do they submit all the documents like Municipal clearance, Tax Clearance, Funding etc. ? Or do you still need to submit those?
Yes, the process works the same as It would in an individuals name 💪🏻
Do you advise buying a property through a Trust even for a cash purchase?
Good question, but yes, I do. There are so many different benefits to buying in a separate entity compared to buying in your personal name
So the Trust owns your property and you live there? Isn't there a risk then to loose the property?
Thanks for your comment. Just explain the risk factor? This, in fact, is less risky
How would you own property? In your own name, Trust or a CC?
Is this for investing purposes only or does it apply for home loan as well?
By the way, I mean for a house not necessarily for renting but as your own house to stay in
Yes it's applicable to owning your own home aswell. You still have more protection from creditors and more tax advantages if you own it in a trust.
But for the average person its okay to own it in your own name, theres just better options out there
@@louisreynhardt Thanks man. recently discovered your channel, great content. You got yourself a new subscriber.
Thanks Ernest, welcome to the youtube family 💪🏻🇿🇦💸
Why would you spread misinformation by saying that if you transfer your own property into a trust that you cannot get around paying transfer fees again. Have you not heard of registering a bare dominium? Or are you just an amateur when it comes to property investments?🤣😂
Just remember the word context.
Why would you register a bare dominium instead of just structuring correctly from the beginning? There is also cost involved with registering a bare dominium/usurfruct.
This all looks very well in theory, but the trouble with these complex structures is the energy, management, and specialised tax knowledge that are required when done in practice. (The channel is for beginners and hence it is explained in a more simple way) When we consider the time value of money, comparing the current value against its value in the future, it becomes apparent that there is also little to gain or lose in terms of tax.
This is why I prefer keeping it simple. There are often other ways around the problem that are much less complicated, more workable, and, therefore, more likely to be implemented instead of trying to fix a problem that never should have occurred.
I really do appreciate your comment and sharing your knowledge on the channel, I think it can really be valuable if you approach it a bit differently.
What a d#ck .......
Sounds like you the amateur Bon Jovi
@@calmmusic6374 did i hurt your feelings little girl?
@@bonjovi7120 Dude, is alles ok by die huis ? The guy (Louis) answered you politely noting your condescending ways. You come back and play the man again. Please deal with your concern and respect his channel and effort. Oh. Just make your own channel and explain the idea there. Have a great year ahead.
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