Transferring your property to your business

Transfer Your Property To Your Business

Thinking of transferring your real estate property to your business entity? While Fola Financial does not assist with real estate transactions, here is some insight to consider:
You will have to transfer the deed for your property.

A deed transfer can be done with a Quitclaim deed via a title company in the state of which you purchased the property. Doing so will notify the state that you are transferring the real estate property from personal ownership to be owned by your business entity.

Transferring ownership does not transfer your mortgage.

While transferring your property ownership to your business will provide protection and leverage capabilities, it will not transfer your mortgage. Be sure to contact your lender first to make sure they are aware of the transfer of ownership and will allow you to complete the transfer, while still being personally liable to the mortgage.

What purpose does this property provide for your business?

The purpose of the investment property will need to be added to an operating agreement for your company. You will need to have a drafted operating agreement for the company that includes the purpose of the investment property. This can be done by contacting a lawyer or by using operating agreement contract templates.

Update all current contracts that involve the property.

Once the deed transfer is complete, any contracts that involve the property will need to be updated to list your business entity information as the owner of the property.

The entire process has a few steps, it usually is pretty quick once your lender approves the transaction, and you create a contract for your title company.

While Fola Financial is not a licensed real estate company, its Founder and CEO, Sheneya Wilson is an active real estate investor and emphasizes the ability of real estate ownership to create generational wealth.

Interested in learning how to get started in real estate investment?

Join the Real in Real Estate master class, led by Sheneya Wilson on August 3 and 4th!

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Eliminate the fear of the IRS and paying taxes by informing yourself about the tax codes and preparing in advance!

Make the Tax Code Work For You

Every tax payer has the opportunity to benefit from the tax code, when they have knowledge of how the tax code works and take the steps to tax plan throughout the year.

This may seem like an intimidating endeavor at first, but by working with a tax preparer to create a tax plan for your specific needs, you can set up a system of habits to set you up for success before tax season even starts!

Creating a system of habits can encourage you to think about how you are investing your money into your education, business or plan for retirement, versus simply spending your money on the latest trends.

Shifting your mindset and actions can benefit you in the long run by enabling you to have a record of your expenses, as well as any possible tax deductions.

In fact, a little bit of knowledge about how tax codes work, can benefit you in the long run, especially when you partner with a tax prepration team that has your best interests at heart.

Fola Financial is here to help you achieve that goal by legally and ethically reducing your tax liability through the use of tax advantage savings strategies, tax sheltering, and deductions/credit maximization!

If you’re ready create a tax plan that will help you make the tax code work for you, click below to schedule your free tax prep consultation:

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This blog post was inspired by the CNBC article “Why it’s so hard to file and pay U.S. taxes” featuring an interview with Sheneya Wilson, Founder & CEO of Fola Financial LLC.
Click here to watch the video feature and read the article.
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What’s Your Income ID?

We are officially in the 2nd half of 2021! This is a great time to check in with ourselves to see if our income goals are matching what’s in our accounts!
So let me as you this question…

That’s right, your income ID? This one little letter could be the difference between you working for your money and your money working for you!

Five years ago I read Rich Dad Poor Dad by Robert Kiyosaki, where I learned about the four ways to produce income. Think of each of the below quadrants as your income ID:

After reading the book, my perspective about wealth shifted drastically.
Back then, I was working at a “Big Four” accounting firm trading my valuable time for money … and it wasn’t even much. A 65k salary is around 45k after taxes… A six figure salary sounds good, but that does not mean you pocket 6 figures.

In fact, most individuals that make six figures pay close to 40% of their income to the IRS and State & Local governments. Ouuuchhhh!
Just to put it into perspective, I have clients that net around 1-2 million and pay less than a 28% effective tax rate (both federal and state combined).

I started Fola Financial 3 years ago, and moved into the S quadrant (self- employed). I was determined to free myself, but noticed that I was still trading much of my time for money .
The thing about entrepreneurship is that you typically do start there, but the goal is to eventually move into the B quadrant (Business owner), which is focus on when advising my clients.

Yes, contrary to popular belief, there is a huge difference between being self- employed versus a business owner.
If your goal is “financial freedom”, you want to move into the B & I quadrants ASAP.

Over the past 3 years I buckled down and turned Fola Financial into a B business. Meaning that if I need to take a 3 month break, the business will still operate on its own due to the systems and processes I implemented, and of course my amazing staff.

I grew a passion for passive income and moving into the I quadrant (Investor) in 2019. With my current real estate portfolio, I make more than enough in monthly cash-flow to cover my monthly expenses, so technically I am already “financially free”. (This doesn’t even include income from Fola, my other businesses, or my stock portfolio).

I share this because as we are living in such unprecedented times, it is important to be aware of how the decisions you make now affect the life you will have in the next 5-10 years.

If your goal is to live financially free, learning how to shift your income ID to B or I, ideally both is better, is key!

Want to meet with Fola Financial to discuss your plan to achieve your goal income ID? Click below to schedule a consultation or browse our services!

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