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All Forum Posts by: Laith Ali

Laith Ali has started 9 posts and replied 39 times.

Post: Any High W2 earners out there?

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21
Originally posted by @Bilal A.:

To the High W2 earning BP members out there, what strategies have you used to decrease your W2 taxable income? Depending on what state you earn your wages, income tax rates of 40-50% are unreasonable. Most of you likely don’t qualify as real estate professionals and won’t unless you quit or dramatically reduce your regular work hours so what tax planning strategies (particular to real estate investing) have you used besides taking depreciation and mortgage interest deductions? I realize that with enough properties, you can eventually replace your W2 with passive income and deduct losses against it. Do you massively leverage your high income to get loans and build your portfolio fast? Paying multiple three figures in taxes plus FICA is simply ridiculous. Thanks in advance!

The best way to lower taxes is to get people who represent us in congress, and lower our taxes. The only problem I seen is that there are alot of high income earners who don't mind paying 50% in taxes, they are use to it. If there are more people like you, have them contact me and we can make some real change.

Post: Cash Back Credit Cards

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

I usually get a few a year. I use to sign up for the ones where you spend $500 and get $200, but from my experience sometimes I would have to call them to get the $200 so its kind of a hassle. I always pay the full amount so they never make anything off me, but most people aren't like me. Usually you have to pay $40 for a late fee anyway. The interest rate is high. It's just a number game. Alot of Americans have credit card debt so I'm sure they are making alot of money.

Post: cash flow investment in bay area

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

I think you should consider out of state investment considering the low return on investment. You can contact me and I can help you.

Post: What is the BEST book you've ever read on NEGOTIATION?!

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

In my opinion I don't think you need to read about negotiation. Its all about who has options. If you have alot of other potential investments, you can just say, I have better options and that's it. From his side, if he has other buyers willing to pay more then it doesn't make sense to sell to you. 

I think you have to be careful about some techniques you hear about because they are basically fraud and deception. Some techniques just prey on ignorant people and I don't like that strategy. A good example is car salesman. Alot of people I know consider them people who will lie to sell.

Post: Real Estate Partner with Full-time Engineer

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

If you are interested in investing out of state you can pm me.

Post: Dealing with Closing and negotiations

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

You have to read the contract before you sign it. I know the contracts are long but trust me don't ever just take the word of your agent. You're a businessman, don't think of yourself as a customer. In general the contract should say that you can back out the deal if, fails inspection, you couldn't get the finance, you discovered its in a flood plain, and a couple other exceptions. 

Post: What is your tax rate when flipping houses

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21
Originally posted by @Russell Brazil:
Originally posted by @Laith Ali:

I was hoping there was something i was missing because I always hear owning a business is great because you pay so little in taxes, but at the same time I also hear business pay so much taxes. I'll believe the second statement from  now. It's really a shame that we have to pay so much taxes, its going to be really hard to grow your business if they keep taking half your income. 

I pay a lot in taxes....and you know what, I feel blessed to live in a time and a place where I can make a ton of money doing something I love.  

It's really interesting that you feel blessed paying that much in taxes. I wish you could send some money my way so that you would get more blessing :)

Post: What is your tax rate when flipping houses

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

I was hoping there was something i was missing because I always hear owning a business is great because you pay so little in taxes, but at the same time I also hear business pay so much taxes. I'll believe the second statement from  now. It's really a shame that we have to pay so much taxes, its going to be really hard to grow your business if they keep taking half your income. 

Post: What is your tax rate when flipping houses

Laith AliPosted
  • Hazelwood, MO
  • Posts 40
  • Votes 21

Hi Everyone, I'm about to obtain a house and flip it. I was wondering what you're tax rate is when you flip houses. From what I read, I could be paying 40-50% in taxes. Do you guys have any strategies you use to save on taxes. Also is the IRS going to look at your taxes with more closely since there is a lot of money coming and going. 

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