This week I’m going to talk to you about rent control, this is a very important subject to me because I own property. Moreover, I own property in Inglewood, California. Inglewood is probably one (1) of the most valuable land across the globe. Here is Why?
- There is a limited supply of land.
- It is geographically desirable land that happens to be adjacent to Los Angeles International Airport, as well as the Port of Los Angeles and San Pedro.
- Last but not least, The New LA Stadium which is going to house the LA Rams and the LA Chargers and the LA Clippers are breaking ground in 2021.
I own property adjacent to the New LA stadium and in 2019 California’s Governor Gavin Newsom, illegally passed rent control law, even though the citizens of the State of California voted NO in 2018.
As a result, I had to figure out how to get around Newsom’s illigal actions and all of the other politicians actions that try to make it impossible to do business in the State of California. I was struggling with just how to solve this problem as I didn’t want to sell because if I sell, I would have to do a 1031 exchange into another property and if I did that, I would buy something else at the top of the market and managing an out of state asset is problematic.
So the way I got around rent control and paying more in taxes is by using debt and doing a cash out refinance. You probably heard it in my song. I talk about the Financial Freedom Formula in my rap video and how I say I use debt and I reduce my taxes. Well, that’s exactly what I did. I use debt even more debt now as I did what’s called another cash-out refinance. Yes. I’m going to pull my money out of my properties in perpetuity and never sell them, this way I can get my cash out of California and still reside her tax free since my interest expenses is higher, thus so are my deductions. . So if you can, don’t allow the state of California to force you into selling your property and moving that money into a very high expensive property someplace else. Instead, evaluate your numbers, evaluate your properties and see if your loan to value is maybe 30% or 40% or less, maybe even 50% or less, then go to the bank and do what’s called a cash-out refinance.
That is a more appealing way for you to keep your property, continue to allow it to generate cash flow, and to get all your money out of the state of California Tax-Free.
Why is it tax-free?
Well, as I said before, debt is debt. It’s tax-free. That’s what my Financial freedom Formula Teaches others to do. You can get the Formula for yourself here. It’s free of charge. Using debt and reducing taxes is the only way you can actually achieve financial freedom for yourself quickly.
Of course, you can also save money, get out of debt, invest for the long haul. We have been hearing that forever, but it ain’t gonna work.
The way that you can mitigate rent control, especially in Southern California, is to do what’s called a cash-out refinance. You should be doing that anyway, even if you’re not in a rent control area. Why? because money is free. Yes. One thing that was eye-opening for me over the last five years is really learning how many people have not gotten filthy rich with a decade of free money.