What should be realized in real estate investment is the three financial statements. Not "tax saving", but "saving"!

When I was an employee of the company, I earned 4.6 million yen a year. I started investing in real estate at the age of 26, and now I have established assets of 750 million yen. Such an indispensable awareness of my smooth increase of assets in real estate investment is called the "three financial statements". This time, I will explain the "three financial statements". In real estate investment, we should be aware of "balance sheet", "income statement" and "cash flow"! The first is to establish a "balance sheet" (balance sheet), which represents the status of "assets" and "liabilities". Many people believe that real estate investment "borrowing from financial institutions looks risky" and "money planning looks difficult". But in practice, risk can be avoided as long as you "visualize" assets and liabilities in a balance sheet that anyone can easily do. The balance sheet only needs to fill in "assets" (total land and building prices) on the left and "liabilities" (total borrowings from financial institutions) on the right. The difference between assets and liabilities is "net assets" (self-owned funds). Increasing this amount of self-owned funds is a big goal. (the rental comparison table of "assets on the left" and "net assets of liabilities on the right") the second example is the production of "income statement". When it comes to the income statement, it may be a little difficult, but it's also very simple. Roughly speaking, each object only calculates "income" and "expenditure". I own 7 buildings, but use Excel to fill in income (rent, etc.) and expenses (management commission fees, electricity and water charges, taxes, insurance, cleaning fees, miscellaneous fees, etc.) for each property and check them. If you "visualize" the amount of money in and out of each item, "this item costs more than other items," the cleaning fee is cheaper than the management company asking the silver talent center, "set up vending machines to increase the income by about 10,000 yen a month," and so on, it's easy to re-examine income and expenses. [manage "income" and "expenditure" with income statement] example income rent: rent income gift fee renewal fee: gift fee renewal fee income miscellaneous fee: vending machine income and other expenditure management commission fee: water and electricity fee paid to the management company: electricity and water fee tax of the common department: real estate acquisition tax for the first year 2 Fixed assets tax insurance premium: fire insurance premium, earthquake insurance premium repair cost: repair provident fund and cleaning fee Miscellaneous expenses such as cleaning expenses when replacing occupants: the third provision not listed so far is the calculation of "NOI" (network operating income = net operating profit) and "net cash receipts and payments = the money left in hand". If you have an income statement, you can easily calculate it. "NOI" refers to the "net operating profit" after deducting expenses (operating expenses) from one year's income (rent income), indicating the profitability (that is, strength) of the object. NOI (operating net profit) = annual income-annual expenditure minus "loan repayment" from this "NOI" is cash flow. Cash flow is based on a minimum of 3% of annual rental income. Suddenly there is a repair cost, even if there are unexpected expenses, as long as you ensure that the "cash flow 3%" will be relieved. When you can grasp the flow of money involved in real estate investment through the "balance sheet", "income statement" and "cash flow", the business plan for real estate investment will be drawn up more strategically. Even for people who are not good at numbers, most things can be calculated automatically as long as they use applications and cloud services. Financial management starts with repayment simulations and business plans before buying a property. In terms of real estate investment, "saving" is more important than "tax saving". In addition to realizing the three financial statements while increasing the assets of real estate investment, we also realize that "saving" is more important than "tax saving". As long as they are not high-income earners with an annual income of more than tens of millions of yen, or assets who hold a large number of real estate, stocks, etc., the idea of "saving taxes through real estate investment" should be abandoned for the time being. In order to save taxes, the more deficits are settled, the less creditworthy individuals and legal persons are, and the harder it is to obtain loans from financial institutions. Especially for people like me who want to buy more property for the formation of assets in the future, they must settle with a surplus. The more taxes you pay on real estate investment, the better. In that case, you may tilt your head, but because it will be evidence that real estate management is smooth, you can pay a lot of taxes, and the attribute of financial assets increases credit. In my own opinion, "the issue of tax saving should be considered after expanding real estate investment to achieve the target of 10 billion yen in assets." As far as individuals are concerned, the higher the annual income, the higher the progressive tax rate, with 40 per cent for those over 18 million yen and 45 per cent for those over 40 million yen. Considering income tax plus resident tax, the highest tax rate on personal income can also reach 55% (income tax 45% + resident tax 10%). In this regard, for example, Hong Kong and Singapore only have income tax, with the highest tax rates of 17% and 22% respectively. On the other hand, in the case of a legal person, no matter how much profit it is, the tax rate of corporate tax is controlled at about 30%. If you have more income, you can save tax more than individuals. In this sense, I am also legal when I buy the third building, which is related to tax saving. To me, it seems that tax saving is enough, but decided that "instead of focusing on poor tax-saving measures, it is better to focus on the original real estate investment." On the other hand, I will not compromise on saving rather than saving taxes. Always enjoy your life and save your life at the same time. Because I don't like to think about it roughly, the family account book is kept at one yen. Some people will be surprised to say, "in terms of one yen!", "such a troublesome thing." "some people may be dumbfounded. I think it's my sex. The flow of money is "visible" in detail, and savings are also taken into account. This time we talked about the indispensable "three financial statements" of real estate investment. Saving is more important than tax saving. Get used to the three financial tables to "visualize" the flow of money. Compared with tax saving, improve the credit of financial institutions. In the awareness of these while continuing to invest in real estate, there will be good results. Please try it! Yagi Emily investor. After joining Nomura Securities, as a newcomer, he became the first and youngest lecturer in Donghai. After resigning at the age of 26, he began to invest in real estate, owning seven properties (750 million yen). The self-owned funds of real estate investment are saved with thorough savings. Now, as an IFA (independent financial adviser), he is responsible for the advice of financial products from a neutral position. With 20 and 30 generations as the center, the activities of beginners to save money with the goal of economic self-reliance have been sent to e-magazines as "imitation". The book wrote: "if you start now, you can get 100 million money!" ". The latest book, "the former Securities Women invest 700 million yen in Real Estate" (Diamond Company).

Yagi, Emily.