Table of Contents
~ Challenges you will face in buying property
~ Why I Buy Property In A Company Name
~ The Step By Step Guide
~ Advanced and Alternative entities
~ My Story
~ Killer Offers for you
~ Additional Guides for You
Real estate is especially rich with opportunities to grow your money – BY USING THE BANK’S MONEY!
And by Bank I mean any institution or person that is willing to give me money
I want to help create a more prosperous world in which as many people as possible empower their personal growth.
That’s why I’m passionate about sharing with people like you to become well-to-do property investors.
I believe in a world where continuous learning and personal growth are shared, so that everyone has the opportunity to unlock their full potential
Are you ready to take your property investment strategy to the next level? Discover why savvy investors are buying properties in the name of a company and learn how you can benefit from this powerful approach.
Whether you're just starting or looking to expand your portfolio, this guide will show you how to maximize your returns, protect your assets, and streamline your property management.
When i first started, I bought property in my personal name, and soon realized the limits in buying power and risks associated to that
But this frustrated me and led me to discover
The rules Of Bank Lending
In short, Banks play by a set of rules. And If you know the rules, you can win.
And this works like a charm.
But, From my own experience & from helping others,
I know that real estate investing can seem intricate & bewildering,
and not everybody knows their rules. I certainly didn't when I first started
But over time I learnt simple ways to break it down & make it easy.
And this this guide is going to cover just that:
~ Why I buy in a company name
~ How to buy in the name of a company
~ Alternative and advanced structures overview
1 - I don't have a company yet
2 - I don't know how to setup a company
3 - But the company is not making any income
4 - Who can help me with this
5 - What is the best structure of
6 -Who your power team needs to be
7 -How to finance the property
When I coach people, we go through a series of profile tests.
partly because I need to know how to get the best out of you,
but mostly, to help you, make your own decisions.
Some people are Accumulators, and the Accumulator is
the safest of the profiles, relying on a system of small steps to achieve success.
Warren Buffet is one such accumulator
In other words they prefer to accumulate over time .. be that for savings or earnings.
They will more than likely choose savings at the end.
Ps: How do accumulator's buy property... one solid brick and mortar at a time.
Others are like me, Star profiles.
We are quick on our feet, make quick decisions, and the more daring of the wealth profiles
Opera Winfrey is a famous Star Profile.
But, we love to spend money. Not in 30 years. Not in 10. But now.
So we will more than likely choose the short terms savings each time
PS: How do Stars buy property ... Big, flashy, bold and we share it with the world!
This first strategy then, is more inclined towards those who are more cautious
and like building over time
Buying in an entity such as a company (PTY) offers significant advantages that have transformed the way I manage and grow my portfolio. Here's why I choose to buy in the name of a company
Professional Image & Credibility:
Operating through a company enhances your professional image, making it easier to secure financing and negotiate with sellers.
My Investment partners are more confident to loan us money when our investments are managed under a corporate entity.
Lastly, Companies can build credit independently, which can be advantageous for future investments and expansion.
Partnerships
I prefer not to use any of my own money, and when possible, none of my own risk.
As such I tend to partner with Investors who either have a high mortgage affordability,
and/or cash to invest.
When this happens, the investment partner stands surety on the loan
And the cash investor provides the funds to refurbish and pay for other costs
Income Splitting to pay for School fees
Do you have kids?
If yes, you have family members who can be shareholders in the company, and you can distribute dividends to them, potentially taking advantage of their lower tax brackets.
This strategy, known as income splitting, allows the company’s income to be taxed at a lower overall rate, resulting in significant tax savings.
Think of your Children's school fees being paid for by distributions from the company
Tax Efficiency:
When it comes to property investment, I've found that purchasing properties under a company offers
Companies pay a lower corporate tax rate typically ranging between 20% to 28%compared to personal income tax with rates as high as 45% by holding properties within a company.
You can also significantly reduce your tax liabilities and keep more of your profits and enjoy the benefits of deducting business-related expenses such as maintenance, management fees, and interest on loans, which can further reduce your taxable income.
Driving out to see the property... that's an expense
Calling your tenants and need a phone and phone contract... that's an expense
Need internet in order to be able to manage the business .. that's an expense
These costs get deducted in your business before you get taxed
Liability Protection:
Protect your personal assets from potential risks associated with property ownership. By using a company as a legal entity, your personal wealth is shielded from lawsuits, debts, and other financial obligations tied to your properties.
This structure ensures that any financial or legal troubles remain within the company, minimizing your personal exposure. Its called ring fencing as its a limited liability company
Estate Planning & Succession:
Simplify estate planning by holding properties in a company,
where shares can be transferred or inherited without the complications of
personal ownership. This approach helps ensure a smooth transition of your
assets to your heirs or business partners.
Avoid estate duties and capital gains tax that would
otherwise apply if properties were held in your personal name.
Retaining Profits Within the Company
when your property is held by a company, you can choose to retain profits within the company rather than distributing them as dividends.
This allows us to reinvest the profits into more properties or other business ventures, growing your portfolio without triggering additional personal income tax.
Scalability
If i can afford a R1m mortgage, and I buy a R1m property .... ive used all my spending power
In a company i can use my spending power multiple time with multiple banks and multiple PTY's
In short, I can buy 1 property in Company A and get a mortgage from ABSA
I can then buy another property in company B and get a mortgage from FNB
The list goes on.
Loss Carryforward
:
Step 2 - Submit your OTP
If you like the property submit an OTP quickly. In some cases i do this even before seing the place. If youve followed my guidance on how to ensure the OTP is investor friendly, you will at least two get out of jail free cards to exit the OTP
click here for the short course on this
🎤 Introduction to Experts: The discussion features Michael Bowen, Jacques du Toit, and Jaco Grobelaar, covering topics of property investment, structure, and accounting.
🏗 Company Background: Jaco introduces his company, Prosperity Enterprises, which focuses on property investment, structuring, and education.
💼 Financial Expertise: Jaco’s professional background is in finance, having worked as a CFO before moving into full-time property investment.
📚 Property Structuring Importance: The conversation highlights the necessity of structuring investments properly to protect assets from creditors and reduce taxes in the future.
🏦 Trust and Asset Protection: Jaco emphasizes why having assets and debt in your name exposes them to risk and why a trust-owned company structure is key for asset protection.
⚖ Trust Administration: Key points are discussed on the importance of trust administration, including the need for independent trustees and compliant trust structures.
📊 Importance of Financial Statements: Audited annual financial statements and treating property investment as a business are crucial to ensuring success and securing financing from banks.
🌱 Growth Goals for 2022: Both Prosperity Enterprises and ZAHomes focus on growth through partnerships, financial structuring, and property acquisition across South Africa.
Would you like me to introduce you to my Property Accountant and Trust Administrator?
“I believe in a world where continuous learning and personal growth are shared, so that everyone has the opportunity to unlock their full potential”
This is what I believe in, This is what drives me, and this is what makes me feel alive. Its never been about the money for me, its always been about the learning and the sharing. The only reason the money became important is because I wanted to go and learn more, but those experiences required travel to Los Angeles, London, Dubai, Thailand and Fiji to name but a few. Expensive places indeed.
And so, ever since reading Rich Dad Poor Dad, I’ve been following property investing as a way to level up my financial life and build my wealth. Wealth in knowledge and wealth in finances. And today, I can say I love looking for ways to share that wealth through people like you.
If you’re ready to level up your life, Finances or your current Property Portfolio with me, then the section below called "Offers" is just for you. I'm also on social media and regularly upload to my Youtube channel & website blog.
I'm looking forward to sharing this journey alongside you so we can all reach financial independence together.
Michael enjoys white-water kayaking
& body boarding
+ He is a Master Scuba diver.
He is seriously committed to animal welfare & protecting wildlife.
and loves his Dogs deeply
As adventure traveler he has visited 42 countries on 5 continents seeking personal growth and experiences.
OFFERS
AMA Call
In my Ask Me Anything (AMA) calls, you can ask me anything you would like me to coach you on. It's a one time only, deeply discounted opportunity for you to get started, get unstuck or get growing
1 Month Of Coaching
Your 1 month get started coaching series
4 calls in 4 weeks
Free access to my Mini courses
3 Months Platinum Coaching
Enjoy the benefits of a Coaching Programme made just for you. , that entails a powerful combination of formal coaching sessions, and my number on speed dial when you are in urgent need of advice and support
So if any of these offers are of interest, please click below to visit the webstore
If you liked this guide, you might like my other guides
My courses cover everything you’ll need to create for a thriving real estate portfolio.
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