Analysis of Financial Statements - Property Management

Robert Kiyosaki likes real estate investment because real estate involves every part of his financial statements. Starting with his best-selling book from

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 Robert explained that many of his excellent books are continuing. from

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 The real estate provides cash flow to his income statement, and in terms of the income statement, he can deduct the depreciation of the property as a fee.

As can be seen from the balance sheet, he is able to appreciate in terms of assets, and the leverage provided by banks makes the balance sheet's liabilities more complete.

Through the property management company, you can also access the four parts of the financial statements. The following are:

Balance Sheet: Assets Bar

Every property that generates a monthly rent is an asset. The right to manage the property can be sold to another property manager for a sum of money.

Balance Sheet: Responsibility

Robert also uses the money of his banker. from

Leverage from

 In order to buy a large property with only a small portion as a down payment. When the value of the property rises, he can retain the entire realized amount without sharing it with the bank. He can use the leverage and still get a 100% appreciation.

In the property management business, leverage is achieved by controlling the income of the property. The $500 monthly rent for the property gives the property manager $50 in revenue. If the manager thinks that $500 is too low for the region, then she or she can increase the rent by 10% to $5,50, and the management company's income will increase by 10%. How many companies can increase their revenue by 10% without causing an uproar in their customers?

Income statement: income column

As a property management company, you charge a 10% management fee directly from the top after collecting the rent. Here, if the manager thinks the rent is too low, the manager only needs to increase the rent and increase the income of the manager and the owner. This is a win-win situation!

Income statement: expense column

Although Robert Kiyosaki is able to depreciate the building as a fee, the property management company cannot afford this tax benefit because the property manager does not own the building - the owner does, but the manager can make money from the expenses incurred. Owned by the owner.

Let us say that the tenant is calling to say that the pipe under the sink is leaking. The manager sent his repairman to repair the leak. The repairman sent the bill to the property management company for $12.00 in plumbing and $30 per hour.

Now, the property manager marks the note as $10.00 and now charges the owner $12.00 for the part and $40.00 for the repair time. $10.00 is for the administrator to answer the tenant's phone and send the repairman's orchestra.

Now, by managing 200 properties to increase this situation, you will find that cost increases are an important source of managerial revenue.

As you can see, real estate allows investors to take advantage of all four parts of the financial statements. As a property manager, you can rely on the owner's shoulders and get some of the same benefits of cash flow and leverage, and you can actually profit from the property in ways that investors can't afford.

This is the best part - and the best example of the ultimate leverage of property management: the manager is not responsible for the bank's payment of the mortgage. The owner is responsible! The property manager can make money from the property without being liable to the individual who first created all the funds.

Really a concept!

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