I'm sick of paying taxes..

[lsiberian]

Seriously folks let's all eat some ice cream, drink some beer and let it go before we lose members again over issues that none of us really have a say in.

 

[lsiberian]

So $150K in property tax for over 25 years, not too shabby, I pay more than that in one year, lol... they also tax us on our cars every year here, some other states just get taxed once, we get annual vehicle property taxes... my 2013 rubicon taxes were $1280 for last year, I think it has 1900 miles on it, I paid sales tax on almost $40K when we bought it {$2800} so to date it has cost me over $2 per mile just in taxes!!!!!!

The fact is you probably belong in Texas with your guns, cars, and money. If you have family you could get a lot of plane tickets for the tax money you are losing.

 

[ImcLoud]

The fact is you probably belong in Texas with your guns, cars, and money. If you have family you could get a lot of plane tickets for the tax money you are losing.

I own property in TN and believe me I will be there full time soon!!! Problem is my businesses are here, I looked into paying to have them ran full time, but the problem is no one is going to do it the rite way, I am going to wait until the kids are out of high school {my youngest is in the 7th grade}then we are most likely going to liquidate EVERYTHING and move on {watch that tax bill, me and my accountant had this convo about a week ago, if I were to liquidate now, I would pay over 50% in taxes and legal!!!}.

I have everything setup to be pretty much paid to zero before 2020 so liquidating the commercial real estate will be 100% profit!!! Try to do that in any other business... simple business plan anyone can do it, you can be a millionaire in 15 years!!!! anyone is interested let me know the recipe is no secret...

 

[ImcLoud]

OK, so I already got a couple inquiries about being a millionaire in 15 years lol.....

I'll do a short post about this, you need good credit, a little dp capitol {years ago you could do with out any start-up money, but that is changed now}, and being handy helps...
Alright so a lot of people started to lose there homes years back, this created a unique opportunity, houses were cheap, loans were cheap, and people need places to live...

So for round numbers say you buy 10 houses each with 2 apartments for $100K each. Your total monthly payments will be around $800 per property {15 year fixed}{depending on interest rate, tax rate, insurance rate, down payment, ect} now if you collect $700 per apartment in a perfect world you make $600 a month times 10 apartments times 12 months that is $72,000 per year, but here is what you do with that $72,000 at the end of the year after you pay all the upkeep, income tax, missed months of rent, ect ect ect say you have $38K left, you dump 75% of that back into the mortgages, and after the second year you will know what a good safety net is for an account balance, so you can dump the rest back into them mortgages, year after year you do this and you will end up paying these houses off in 10 years with just mediocre luck... Now you have 10 paid off properties making you $170K gross and all you have to pay is taxes, upkeep, and insurance... OR sell them, you should see 5% per year over your initial cost {give or take 5% in this economy, lol}....

So there it is A million free dollars in 15 years... I didn't buy all my property at once, I own over 20 {not counting my commercial stuff and the home I occupy} some of them with up to 7 units in each, most are paid in full already but all will be paid off in the next handful of years... I know a couple others that do the same thing and I always worked my normal job, this is totally separate and I don't really take money from it as income, I reinvest 100% of it since my company and my wife's job take care of us and our normal investments...

Its smart to start slow, start with 1 duplex, then see how it works, I am going to be closing on a property soon, a 2 story 3 family for $78K, needs around $40K invested after purchase to bring it up to my property standards {I will do porcelain tile and 3/4 oak flooring throughout the entire place, new hvac, new plumbing, and electrical, granite in the kitchen and baths, new doors, and locks {this house already has new windows}, new paint, and this house needs some plaster and a roof}. The house will take 3 months from closing to occupied, I am going to be around $1000, $1000, and $700 for the rents, the down payment {closing costs, and money down} will be $33K. That and the money to bring it back to life will come out of my real estate co. and in 3 months this property will be depositing $2700 per month back into the company!!! But I have the means to get something like this done and fast, without hiring a lot of outside help, my real estate co pays my contracting co to do the work...

Anyway that is it in a nutshell, if you have the time and know how its a good way to retire early or with a live a little more comfy.. I don't recommend it as a full time job although it can feel that way sometimes, because then instead of building itself it is supporting you, work your regular job and let this work for you....

 

[ParadigmDawg]

Wouldn't it be easier if I just took your money?

OK, so I already got a couple inquiries about being a millionaire in 15 years lol.....

I'll do a short post about this, you need good credit, a little dp capitol {years ago you could do with out any start-up money, but that is changed now}, and being handy helps...
Alright so a lot of people started to lose there homes years back, this created a unique opportunity, houses were cheap, loans were cheap, and people need places to live...

So for round numbers say you buy 10 houses each with 2 apartments for $100K each. Your total monthly payments will be around $800 per property {15 year fixed}{depending on interest rate, tax rate, insurance rate, down payment, ect} now if you collect $700 per apartment in a perfect world you make $600 a month times 10 apartments times 12 months that is $72,000 per year, but here is what you do with that $72,000 at the end of the year after you pay all the upkeep, income tax, missed months of rent, ect ect ect say you have $38K left, you dump 75% of that back into the mortgages, and after the second year you will know what a good safety net is for an account balance, so you can dump the rest back into them mortgages, year after year you do this and you will end up paying these houses off in 10 years with just mediocre luck... Now you have 10 paid off properties making you $170K gross and all you have to pay is taxes, upkeep, and insurance... OR sell them, you should see 5% per year over your initial cost {give or take 5% in this economy, lol}....

So there it is A million free dollars in 15 years... I didn't buy all my property at once, I own over 20 {not counting my commercial stuff and the home I occupy} some of them with up to 7 units in each, most are paid in full already but all will be paid off in the next handful of years... I know a couple others that do the same thing and I always worked my normal job, this is totally separate and I don't really take money from it as income, I reinvest 100% of it since my company and my wife's job take care of us and our normal investments...

Its smart to start slow, start with 1 duplex, then see how it works, I am going to be closing on a property soon, a 2 story 3 family for $78K, needs around $40K invested after purchase to bring it up to my property standards {I will do porcelain tile and 3/4 oak flooring throughout the entire place, new hvac, new plumbing, and electrical, granite in the kitchen and baths, new doors, and locks {this house already has new windows}, new paint, and this house needs some plaster and a roof}. The house will take 3 months from closing to occupied, I am going to be around $1000, $1000, and $700 for the rents, the down payment {closing costs, and money down} will be $33K. That and the money to bring it back to life will come out of my real estate co. and in 3 months this property will be depositing $2700 per month back into the company!!! But I have the means to get something like this done and fast, without hiring a lot of outside help, my real estate co pays my contracting co to do the work...

Anyway that is it in a nutshell, if you have the time and know how its a good way to retire early or with a live a little more comfy.. I don't recommend it as a full time job although it can feel that way sometimes, because then instead of building itself it is supporting you, work your regular job and let this work for you....

 

[ski2xblack]

Paying down mortgages early is great, provided you have already maxed out contributions to any and all tax deferred accounts first. Using your example, if the homes are held by a corporation then a profit sharing account can take pre-tax contributions up to $22K/yr/person. Put the money there before pre-paying the mortgages and compare where your at at the end: either with a bunch of houses you own, or with a bunch of houses you own AND a fat account that's compounding nicely.

 

[ImcLoud]

Wouldn't it be easier if I just took your money?

Oh' people have tried, believe me it would be much much harder... plus it would take you forever to get here on your bike...

 

[ImcLoud]

Paying down mortgages early is great, provided you have already maxed out contributions to any and all tax deferred accounts first. Using your example, if the homes are held by a corporation then a profit sharing account can take pre-tax contributions up to $22K/yr/person. Put the money there before pre-paying the mortgages and compare where your at at the end: either with a bunch of houses you own, or with a bunch of houses you own AND a fat account that's compounding nicely.

I just went over so much stuff with my accountant, I am sure he is doing everything he can, its his business and I trust him and his partners. He bombarded me with stuff this year almost a 5 hour meeting and he hasn't filed a thing yet, they are predicting an increase in cap gains and a bunch of other changes that happened this year that affect us...

The corporation makes a lot of money, for the first few years it didn't but now that it holds a lot of assets and is seeing 6 digit annual profits the accounting is so far over my head its not even funny to think about, just down right stressful at times. BUT, that is why you hire professionals and keep everything on the front page.

A good cpa is more important than a lawyer, they have done things, like set up accounts for my children and wife that are 95% tax free, education accounts, donations, the list goes on and on BUT, when I say my business plan it to pay off mortgages fast and not pay interest, thats what it is...

I have friends and have heard stories of people that did NOT do this, and it doesn't always work, I have actually heard way more bad than good come from it.... A friend of my cousins was flipping houses and owned some rental property, everything mortgaged 100+% if there was equity he would take it and put it in what ever he could... Because and I quote "why would I pay a debt that is only costing 4% when I am getting a 8-12% return on investments"... Well I heard he was worth over a million dollars at one time now he rents an apartment and works as a paralegal...
When things were good that was fine, if you pulled out at the perfect time, you would have made money, but if you stayed in you lost... My wifes 401K was over $300K a while back it had dropped as much as 80% {I think it may have been 60%}, she always did high risk high yield and invested the maximum, if we put that money into mortgages it would have been in the bank...

So anyway, I let the accountants do what they can, but my business plan is for that company "NO DEBT, NO COST" so as long as the business is paying for itself I expect no salary, but I want all my properties paid off and as fast as possible...

I don't think people realise what you pay for interest over 30 years, even if your rate is 4%... if you take $250K for 30 @4% you pay $190K in interest over the 30 years.... Same amount and rate just push that down to 15 years and you pay $80K thats a savings of $110,000 ... But in reality a 15 yr is going to save you 1% interest so in real numbers its $130K saved for just coming up with an additional $4-500 per month!!!! I am averaging paying off these houses in 8-11 years, I am paying $18K in interest on investment mortgages start to finish!!!! Even the accountants say its phenominol and they never seen anything like it, I constantly get the ole' "if you are ever looking for partners on future endeavors please let me know", lol Why would I split my profit in half when I can just give the bank $20K over 10 years and keep it all?

I am a simple guy, I make a plan I stick to it and I ride it out changing only what doesn't work... As grand pa said "even a bad plan is better than no plan" you start mixing stuff around and you end up with a mess, keep everything in line because whats easier to follow than a straight line?

 

[GO-NAD!]

I think part of it is the USA's vast population vs Canada. Not to sound flippant, but there isn't anyone in Canada comparatively speaking.
Our one state of California has a greater population than all of Canada. So with that comes more call for services, etc.
Oh, and more corruption and waste.

Well, due to economies of scale, government services in the US should be far less expensive than up here. As for corruption, Quebec is holding a massive inquiry into corrupt relationships amongst government/business/unions.

And we don't need lessons in waste. Propping up completely non-viable businesses is a national pastime here.

 

[ImcLoud]

What are you saying there is corruption in canada too? Now I have lost all faith in the world...

 

[GO-NAD!]

What are you saying there is corruption in canada too? Now I have lost all faith in the world...

Don't get me started on that clown...

 

[ImcLoud]

this guy takes the best pics, heres one with his entourage...

 

[GO-NAD!]

this guy takes the best pics, heres one with his entourage...

Rob Ford makes Marion Barry look like an angel....

 

[ImcLoud]

yes that guy is a media and late show gold mine... He's like if Lindsay lohan and chris farley got rolled up into a canadian politician...

 

[lsiberian]

yes that guy is a media and late show gold mine... He's like if Lindsay lohan and chris farley got rolled up into a canadian politician...

In a van down by the river.

 

[psbfan9]

OK, so I already got a couple inquiries about being a millionaire in 15 years lol.....

So there it is A million free dollars in 15 years... I didn't buy all my property at once, I own over 20

Want to make it 21? I have a house I'm selling on land contract. The pay off is $43,000.00. I'll sell you the contract for $20,000.00.

 

[Irvrobinson]

While there are some great points being made... Chris is the only one really qualified to speak on the subject and chooses not to.

Where did you pull this comment out of? Any taxpayer is qualified to have an opinion about how their money is spent, and what is their "fair share". (I despise that term.)

 

[Rickster71]

Where did you pull this comment out of? Any taxpayer is qualified to have an opinion about how their money is spent, and what is their "fair share". (I despise that term.)

Really??
Of all the things I've posted in this thread, that's what you respond to.

 

[Irvrobinson]

Really??
Of all the things I've posted in this thread, that's what you respond to.

Of all the things that you've posted in this thread that's the only thing I've found really off-base, that people who pay taxes aren't really qualified to have an opinion about how they're taxed. I don't mind diversity of opinion, I mind being told arbitrarily that someone else's (especially mine ) doesn't count.

 

[Nemo128]

I read all the earlier comments... I found this amusingly relevant.

The Daily Show 2014 01 09 Jon Stewart - Slumdogs vs Millionaires - YouTube