The Huge Gift that Keeps on Giving: Powerful Christmas Magic
The Huge Gift that Keeps on Giving: Powerful Christmas Magic
The Huge Gift that Keeps on Giving: Powerful Christmas Magic. How many times throughout the year are we looking for the ideal gift?
What if I told you I have the perfect gift? Many of you have experience with this gift. It keeps on giving. We can offer it as a legacy that can transcend generations and provide a hand to future generations.
The Huge Gift that Keeps on Giving: Powerful Christmas Magic. A friend of mine, Rachel, told me that her mother, when she passed away, left her an inheritance of $70,000. However, Rachel’s Mom is in excellent health, and this money will not be available for some time.
Rachel has a young family and is an investment real estate investor. She had run out of money for down payments on new properties. She had several joint venture arrangements, but finding more partners became more challenging.
The Huge Gift that Keeps on Giving: Powerful Christmas Magic
I asked Rachel if she had ever considered having her mother gift the $70,000 now. Conversely, her Mom would see how these funds, over the years, would help Rachel and her family build a healthy investment portfolio.
Rachel’s Mom hesitated to consider Rachel’s request and thought the banks might have an issue with this.
Creating a Generational Foundation
Rachel has two daughters, ages 11 and 13.
When tenant turnover occurs, her daughters help her clean their revenue properties. However, the girls thought their parents were in the cleaning business!
One day, Rachel’s Mom decided to help Rachel and the girls clean a tenant turnover. However, on this day, Rachel explained to the girls that their cleaning property belonged to their parents.
She explained that the tenants paid rent while the rental income covered the cost of the ownership.
The girls asked, “What was the cost of ownership?”
Rachel explained that the bank had lent their parents money to buy this property, and they had to make a mortgage payment to pay the bank back.
The city where the property is located has property taxes, which cover the cost of running the city. Each house owner has to contribute money to help run the city.
On the other hand, Rachel explained that their parents had to cover the costs of fixing the house from normal wear and tear.
The tenant was responsible for any utilities, including power, gas, electricity, water and trash removal, cable and internet, and telephone.
Rachel explained that any money left over would be kept in the bank. Rachel mentioned that this new money would help someday fund the downpayment to purchase another revenue property.
She explained to the girls the concepts of equity and principal paydown above and that capital growth and principal paydown were their legacy.
The girls understood some of what their Mom told them, but not all. Rachel knew she had time over the following years for her girls to understand the complete process behind owning investment real estate.
Change of Heart
Rachel’s Mom heard the whole story and realized that she had raised her daughter to be a wise and business-savvy woman who was building a business to help her family now and in the future.
With the housecleaning completed for the new tenant’s arrival, Rachel’s Mom took everyone out for supper and let Rachel know she would give the $70,000 to Rachel now.
Rachel promised her Mom she would talk to her accountant and bank to ensure everything was up and up.
When she met her accountant, Rachel asked,” Can momentary gifts be used to purchase real estate?” His answer was yes. Her accountant told her that each lending institution has a standard form for the money received as a gift and does not need a repayment.
Do your research: contact your bank to learn more about gifting or receiving cash.
Rachel contacted one of the major banks, which has a form called a Gift Letter. The form is straightforward to fill out. The gift letter is sent to the bank manager and confirms the amount gifted. It also identifies who the money is gifted to and their relationship to the person gifting the funds. The person can be a friend or family member.
The form has an area for the address of the property purchased. The Gift Letter states:” No part of the gift is to be provided by any Third Party having any interest (direct or indirect) in the sale of the subject property.”
The form has a section on Verification of the Existence of Gifted Funds. The structure has two options: the giftor takes the form to the bank and signs it at the bank or attaches copies of their bank book or statements of investment confirming the number of gifted funds given.
Gift that Keeps on Giving
Rachel’s Mom felt terrific about giving her daughter the $70,000. Conversely, she is now spending more time with Rachel and her granddaughters while helping to clean more tenant turnovers.
This gift gave much more than just the money; conversely, it created a strong bond and a living legacy for the family.
If you want to learn more about having a living legacy for your family, listen to the following podcast. The Remarkable Value of a Living Legacy
Help give the gift that keeps living and giving, such as investing in real estate.
About the author, W. Rick
Dynamic entrepreneur and sales management strategist; with over 20 years of experience in his field. Rick has achieved multimillion-dollar sales growth while providing award-winning sales leadership and coaching in highly competitive markets.
An active real estate investor since 2002, Rick has developed his purchasing strategies and processes specializing in vacation and recreational properties, single-family homes and condo rentals.
In 2005, Rick re-financed his first rental property to fund the purchase of more positive cash flowing rental properties.
Rick sits on the Board of Directors for several condominium associations and is an active President and Treasurer. Sitting on these boards has given him a wealth of experience and insight into working with property management companies.
Rick has partnered with several joint venture associates and is committed to creating a positive investing experience for his associates by finding the properties, developing the investment, securing the financing and executing a proven positive cash flow system.
Why should you choose Rick as your Online Vault to Investment Real Estate Success Advisor?
An outstanding mentor and coach, Rick will work with you to build your investment real estate business starting from the foundation. From guiding you through the market research and critical drivers, building your team of trades, realtors, and lenders to attracting the investment real estate properties right for your portfolio and the joint venture partners to help you grow.
Through direction and training, Rick will help you develop your investment real estate goals and be a catalyst for you to purchase your first investment real estate property so you can build a strong financial foundation unlocking sustainable wealth and a living legacy for you and many generations to come.
Thank you for taking the only asset that gives us so much through life, but we can never get back our time.
Please join Rick on living his mantra:
” Prosperity for all aspects of your life forever.” W. Rick Harris