Tax Reduction

Hi friends 🙂

My name is Neta Or, an opponent's partner and runs our operation at Paz Group and the relationship with the investors - very pleasant!
In my daily work I encounter quite a few things that may be new to you, so I will try to share with you every time something like this arises. This time it is going to be a bit long but worth quite a bit of money.

Let's talk about TAX REDUCTION.
The property tax payable by the property owner in the United States is an insignificant annual expense and can reach thousands of dollars each year in some areas.
I don't have to tell you how critical every dollar is in the business plan when making a decision about a particular asset,
And there are quite a few investors who, when they discover that the property has a high property tax, are giving up the deal. Right? Not sure.

The property tax is derived from the market value of the property which the municipality determines each year by multiplying the value estimated to be twice the tax rate of that city.
But what happens if you are a smart investor (and you are like that) and you bought an asset worth less than his estimate in the municipality?
So the good news is that not only did you buy a property at a lower price than the market, but now you can leverage it to reduce property tax.

Each year, requests for reduction of property tax can be submitted, in which the owner of an asset paid much less than the appraised value of the property, claims to the municipality that the value of the property must be updated according to the investment made.
Most of these applications are made through lawyers who are well versed in the process and can represent you with the municipality.
They usually only benefit when the application is received so there is no risk of spending money for free.
In most cases, if there are no surprises or unusual circumstances -
The application will be approved, the property owner will receive a tax reduction, and most of the tax reduction will also be set for several years.
This saves thousands of dollars every year!

You can see a property in Shaker Heights, Ohio, where our investor purchased $ 66,000 (not including redevelopment).
At the county site, the property's market value is estimated at $ 117,900 by the municipality, and the property's current property taxes reach nearly $ 5000 annually.
In a month's time, the municipality will review our request to reduce the tax on the property, and if it is approved, the investor will receive a return on 2018 and a tax reduction for future years.
The potential return on the asset for the investor will jump from 12% to almost 15%. In short - worth buying below market prices 🙂

* The above information refers to Ohio. Of course, every state has its own rules, but it's worth checking out. Good luck to everyone!

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