Real estate agent sales funnel for Legal Services

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as a real estate agent you're probably really good at selling properties but you haven't probably thought much about how to save money on taxes or how to structure the business so that way that you don't end up in a bad situation for legal liability purposes so I have actually represented real estate agents before or when they've got into really hot legal trouble and the one thing that runs up time and time again about it is that somebody bought a property that had something wrong with it and what do they do they turn around and sue everybody right after they find out that the property went sideways now we're always gonna hope that your brokers insurance is gonna kick in to be able to help protect you but in the meantime if they decide that you intentionally misled somebody or did anything that's egregiously wrong in that and that's all their decision by the way your insurance won't cover you and this is where you need an LLC structure to step in to protect you so the LLC structure is very crucial to be able to give you that extra level of protection so you can know you can rest easy at night but even more importantly it's there to be able to help you save a ton of money on your taxes and let me show you how so what you end up doing is is that you form an LLC in the state of wherever that you're operating as a real estate agent and this company is gonna be the one that's gonna be your face to the world it's not gonna own any assets all its gonna do is be able to serve between as a buffer between you and the rest of the outside world so this is the one that's gonna send emails to people you need to hire any contractors to be able to do anything for you otherwise just gonna be known as like your face for everything that happens right it's also gonna be the one that's gonna take in any of the payments that are being made so if anything happens to this LLC you end up to the lawsuit your worst case scenario would you shut that LLC down you start up a new one you don't have to worry about that lawsuit freaking phenomenal right you hope the insurance is there to protect you but you don't have to rely on it in the meantime all the money that you have gets paid through to this LLC so if you watch me of my tax videos what you would know is is that if you're making over $50,000 a year what you would do is is that you would take this as an S corporation tax election and this is going to sell help save you on self-employment tax to be able to help you save at about 8% off of what you would normally be making your taxes now once you start making over one hundred and thirty thousand dollars a year there's more advanced structures to be able to use but most people fall into that 51 30 K range so that's what we're gonna focus on for here so one thing you can do is is help save yourself 8% of your taxes just so that one strategy alone as a real estate agent would you can also do is now you're an LLC right you have your own business here you're the only employee of your own LLC in this circumstance because your broker is actually hired your LLC to be able to do those services and what you're able to do then is also establish your own solo 401k which is going to be able to save you up to fifty six thousand dollars on your taxes every single year now with your solo 401k guess what you're able to do you can go make tax-free investments to go buy real estate and you can get financing underneath your solo 401k you can decide that you want to become a hard money lender and make ten fifteen twenty percent interest on the money that is all inside of your retirement account by loaning it out to other people through bridge loans mezzanine financing or the network of connections that you currently have so the net effect of this guys is that as you're making money into your LLC always be able to classify this LLC as an S corporation save you money on self-employment taxes as a real estate agent also consider using a solo 401k to help save you fifty six thousand dollars a year on your taxes just right off the top to be able to then turn around and make whatever investments you want to with that if you ever need to be able to get take money out you can actually loan yourself back up to fifty percent of the value of your solo 401k in cash directly to you so just because you put into a retirement account doesn't mean you're not gonna have the cash there I'm in case you ever need it so this is the number one strategy that every single real estate agent should be using right now to save money on taxes to protect themselves from liability hey thanks for watching this video if you want more high quality content just like this you can find it here in our youtube channel or going to our website royal legal solutions com we have a ton of free content from our blogs or videos the podcasts that I have been featured on whatever question you have we're gonna have it there for you you [Music]