Robert Kiyosaki, as property investment, property as many touches all parts of the financial statements. From his best-selling book Rich Dad, Poor Dad and sat in several of his books later, “said Robert, as the flow of real cash, profit and loss and expense, income which is able, the depreciation of real estate as a deductible expense.
As is clear from the account, it is able to understand the assets and leveraging the bank’s liabilities will be made available.
As an administrator, you can also click on the four components of financial statements. Here’s how:
Balance: the asset column
Each production is a fixed monthly rent benefit. It is possible to manage the rights to sell the property to another manager for a lump sum payment.
Balance column responsibility
Aka Robert uses its bankers use the money to buy a big house with only a small percentage as a deposit. If the property increases in value may retain the entire amount of discretion, without the stocks in the bank. Can use leverage and have the pleasure of 100% of estimated value.
In asset management, support achieved by controlling the product of a house. One feature that the production of $ 500 per month in rent is a property manager benefit of $ 50. If the manager believes that $ 500 is too low for the region if it can be rented from 10% to $ 550 and benefits management companies increased by 10% accordingly. How many companies can have their income by 10% without riots take it to their customers?
Profit and loss account, the income column
If a property management company, the direct administration of your gratuity of 10% of rents collected. Again, if the manager believes that the rents are too low, the manager just asking rent increases and income, the manager and owner. It’s a win-win!
Profit and loss account: expense column
While Robert Kiyosaki is able to amortize the building as an expense, a property management company, none of this tax benefit as a manager or owner does not own the building, but with a manager extent of money for expenses incurred by the owner of the building.
Suppose, for example, a tenant, that the leaking pipe under the sink calls. The manager sends its technicians to repair the leak. The specialist will send an invoice to the manager of plumbing parts $ 12.00 $ 30.00 more for his hourly rate.
The manager highlighted by the bill, say $ 10.00 and now the owner charges $ 12.00 for parts and $ 40.00 for the repair time. $ 10.00 for the orchestration of the manager to call the tenant and sending artisans.
Now multiply this scenario by the administration of 200 properties, and you will see that the cost mark-up is an important source of income for a manager.
As you can see, a real estate investors to use all four parts of the audit. As property manager, you can fall back on the shoulders of the owner and get some of the same advantages of cash flow and debt, and you can actually by the property in a way that an investor may receive , ie the cost increase.
And here’s the best part of the essence and influence the ultimate property management company: The manager is not responsible for the bank to make payments on the mortgage. The owner is responsible! The owner is able to make money from home, without personal liability, the Bank of the asset that creates all the money first.