How To Include Tax Depreciation In Your Sales Pitch

Real estate professional

As a real estate professional you're selling properties to both under occupiers and investors are investing in this property with a sole purpose of making money wealth now and in the future tax depreciation makes a big difference to the cash flow on these properties and many investors don't understand it or don't understand as much as they should I want to arm you with the tools to be the trusted professional and knowing that this is important know that it can be some money that makes a big difference to these investors and how to use it to help you to sell more property the first role play.

We're going to do is I'll play the agent who's selling a property and running an open house and Irene has just been through the open house what I want to do is show you where tax depreciation fits into that discussion because we've identified that Irene's potentially an investor and something to help you get that sail across the line so Irene you've been through the property you've you know tell me what do you think yak know it looks really good to me I've also had a look at your appraisal here for the rent and four hundred dollars a week sounds really good as well.

So I'll have a look further over it and get back in touch with you next week great Iran now I'll have the rental part of the office actually provide a bit more information so that we'd love to manage the property for you as well of course but something else I did come across recently is I've spoken to the guys at but about tax depreciation and as an investor this place is you know pretty new I think there's a lot of the time if there's a deduction in tax depreciation that people don't take advantage of and it's pretty easy to find out what sort of numbers that could be and it will make a bit of a difference to the amount of you know money will cost you to hold on to the investment there's a website that has the cat as a calculator on there you can get some indication of the numbers.

So we'll I’ll send it out as well if you like so you can you know see how much money you might be able to save through that might help you to be able to for the property easier yeah well that actually sounds like really good information so please do send me link you've got my information and y'all get back in touch with you after I had a chance to look it all over great I’ll do that now guys that's just an example some water how you can just sort of almost continue that discussion when they're thinking like thinking when you're thinking about to leave you know I know that appreciates these years I know it's worth some money and you might be able to get an indication of what that is and it doesn't cost you anything to do that so if they are going to talk to their account about it or crunch their numbers in any way.

Tax Depreciation

We'll make it look better you welcome back this role play will be a follow-up call on Irene I'll play the agent again and Irene's been through an open looked at the property she's thinking the numbers don't quite stack I'll try to give you an idea of how you may be able to pull tax depreciation into that to help you get that sail across the line and give it another chance today I'm really well now you're a great you can through smith street the other day I just wonder if you had any interest in moving further well I was actually thinking about that I've done a few calculations been working through the numbers and it just doesn't seem to work for me at the moment in terms of the cash flow.

So yeah it's not something that I think I move informed me that the moment okay well look that we have done the rental appraisals and we usually like to be a little bit conservative with those because we don't want to give you a number and then you get a surprise later on you know if the rent was ten or twenty dollars a week difference do you think that would make a difference look not really in terms of my calculations if it's just ten or twenty dollars more than it still puts me in a good cash flow position that I don't envy in ok so the ten to twenty dollars is not really going to make the difference have you thought about tax depreciation at all not really but is it really going to make that much of a difference well look I'm not the expert but I know that the tax depreciation deductions are something that a lot of investors don't get and it does make sometimes a fair difference to the cash flow to investors on their properties.

So how about I obtain an estimate for you of how much that might be I know the guys of but and I'll have a look at the property and give you some sort of indication of what sort of tax depreciation deductions they might be and you can have a look at your numbers ago and have a chat to your account if you wish to and if that makes the number stuck maybe we can have another chat there might be something that does see you yeah send it through and I'll rework my numbers and see how it goes from me great I'll organize that and send that through I’ll give you a call next week just to follow up and see how that way great thanks your call right now guys that's a way I would probably join yourself back into that discussion with an investor who probably doesn't know that much about some of these numbers.

We can give you those estimates for free on any property that you think you've got an investor on to give an indication that they can use while they put their numbers together of how much appreciation might be and will actually make quite a difference to the to the cash flow for the investor welcome back this role play will be me as an agent probably selling a new project where we've actually already organized some tax depreciation estimates that we can help and provide as part of the sale we provide these for free for your projects and there I'll just show you how we can potentially use it to get the sail across the line Irene will be an investor coming in to look at this project and we'll just do a bit of dialogue around that.

So I really we've had a look at the plans we're pretty confident with the project we like the area we like the developer he's done a lot of good projects for us in the past do you have any further questions well I was looking at the documentation it all looks really good with the plans of really good as well so yeah I'll have to do a few number crunching calculations and then see if we can afford it and I'll be able to get back to you soon great well you've got you know the rental appraisals in there and the guys have been fairly conservative with those so that should be should be pretty good the other thing that we've got in there for when you crunch in your numbers.

If is we've already gone and seen the coin survey about this project because it's a new project you get pretty good tax depreciation deductions now these deductions are something that a lot of investors sort of don't understand very well and but we actually understand that they're really important and so we found that the other two bedroom unit in this projects going to get about ten to twelve thousand dollars a year in tax depreciation so that helps it to cost you a little bit less to own and we've already got the numbers there so when you crunching those numbers make sure you take that into account and you can bring the guys at bat.

And I’ll talk to you about if you've got any more questions that sounds actually really good so maybe I will do that I'll just get their details from you later maybe then I'll give them a call great well they're all on the documentation there but we're you know we can we can do that really easily now guys that's like a situation where you probably don't even need quite that much detail in that discussion but just saying look we've already crunched these numbers for you in tax depreciation we've already seen but and the numbers are there so if they are an investor who knows a little bit about it they'll be looking for these numbers that will make it look a little bit better so the cash flow on that property is better that you're selling thanks and you.

Tax Depreciation



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