It’s time to create an estate plan to take advantage of the big tax exemption

For 2020 the Internal Revenue Service raised the estate tax exemption to $11.58 million per individual, or $23.16 million per couple. For now, here’s what you need to know to make the most of your estate planning, according to experts. Because of the inherent uncertainties, estate planning professionals urge entrepreneurs to take advantage of favorable conditions when they can. Experts advise that you take advantage of today’s favorable estate tax environment because it’s unlikely to come around


For 2020 the Internal Revenue Service raised the estate tax exemption to $11.58 million per individual, or $23.16 million per couple.
For now, here’s what you need to know to make the most of your estate planning, according to experts.
Because of the inherent uncertainties, estate planning professionals urge entrepreneurs to take advantage of favorable conditions when they can.
Experts advise that you take advantage of today’s favorable estate tax environment because it’s unlikely to come around
It’s time to create an estate plan to take advantage of the big tax exemption Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: ilana polyak
Keywords: news, cnbc, companies, big, advantage, million, assets, exemption, tax, planning, plan, business, gift, entrepreneurs, estate, shares, create


It's time to create an estate plan to take advantage of the big tax exemption

Tom Merton | Getty Images

Owners of large estates have reason to celebrate. For the second year in a row, the estate-tax exemption has increased to keep up with inflation, offering families with substantial assets the ability to shield a bigger portion of their estates from estate tax. For 2020 the Internal Revenue Service raised the estate tax exemption to $11.58 million per individual, or $23.16 million per couple. A provision of the Tax Cuts and Jobs Act of 2017 more than doubled the exemption and raises it each year to keep pace with inflation. That gives entrepreneurs and small business owners an opportunity to shield more of their assets from estate taxes. If you hope to take advantage of today’s generous exemption amount, you’d better act fast, though. The current threshold is set to expire at sunset in 2025, at which time it could revert to the pre-2018 exemption level of $5 million (indexed for inflation) for an individual taxpayer. The sunset could come even sooner if Democrats sweep the legislative branch and the presidency. The party has made no secret of its disdain for the tax law that reduced the tax burden on wealthy taxpayers. For now, here’s what you need to know to make the most of your estate planning, according to experts.

Strike while the estate-tax exemption is high

Estate planning is always an inexact science. Political sentiment changes, budget priorities shift, and fiscal realities set in. Because of the inherent uncertainties, estate planning professionals urge entrepreneurs to take advantage of favorable conditions when they can. One common strategy is to make gifts up to $11.58 million during your lifetime because every taxpayer has the ability to transfer that amount while they are alive or at their death without incurring estate tax. “Many entrepreneurs and small business owners are not effectively using their gift tax exemption, which will reduce the size of their estate,” said Andrew Sherman, an estate planning attorney and partner with Seyfarth Shaw. Transferring appreciating assets — such as a stake in your business — offers even more tax savings potential, especially if your business is still in its early stages. For example, say you gifted $1 million of your business to one of your children, but at the time of your death, those shares were worth $10 million. By making the gift early, you’ve only used up $1 million of your exemption. “If you have shares in your own business, you can gift [them]; then the appreciation takes place out of your estate,” said Michael Garry, a fee-only certified financial planner and lawyer at Yardley Wealth Management in Newtown, Pennsylvania. The annual gift exclusion is $15,000. There’s no tax owed up to that amount. Gifts over that amount start to chip away at your lifetime gift exemption of $11.58 million. Experts advise that you take advantage of today’s favorable estate tax environment because it’s unlikely to come around again. Harry Drozdowski, director, legacy and wealth planning with Abbot Downing, the ultrahigh-net-worth unit of Wells Fargo, described how this worked for a client recently. The entrepreneur had just started his business and transferred a 25% stake in his company into a trust for his two children, who were 10 and 8 at the time. A year later the business sold for more than $1 billion.

Many entrepreneurs and small business owners are not effectively using their gift tax exemption, which will reduce the size of their estate. Andrew Sherman partner with Seyfarth Shaw

“It cost him $50,000 in exemption because the business wasn’t worth anything at the time, but now $250 million is out of his estate,” Drozdowski said. “That’s why I always say the earlier you start, the better.” You can also use these gifts for philanthropic pursuits. “Many entrepreneurs are generous, but they have not set up foundations or transferred assets, which would exempt those assets out of their total estate,” noted Sherman. Even better: The IRS recently issued a ruling that it wouldn’t “claw back” those large gifts should the estate tax exemption revert back to the old threshold after 2025, giving taxpayers assurance that any planning they do today will hold up. However, if you don’t use up the full exemption amount and the threshold does get reduced in the future, you won’t be able to do so retroactively.

Keep control

While some strategies make sense from an estate tax perspective, they may not sit well with entrepreneurs who are used to being in control. You need to to be able to balance the need for estate planning with what’s good for your business, too. “A lot of [estate] planning means giving up some kind of control [over your assets], and many entrepreneurs don’t want to do that if they don’t have to,” Garry said. One strategy is to reorganize your business so that you have both voting and non-voting shares. “Then you can take non-voting shares and put them in trust for your children or other family members so you’re able to make the gift and still retain direct control of the business,” explains Marve Ann Alaimo, an estate lawyer and partner with Porter Wright Morris & Arthur in Naples, Florida.

Make sure you take care of succession planning, too


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: ilana polyak
Keywords: news, cnbc, companies, big, advantage, million, assets, exemption, tax, planning, plan, business, gift, entrepreneurs, estate, shares, create


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Bezos buys Warner Estate in Beverly Hills for a record $165 million

Amazon Chief Executive Jeff Bezos, the world’s wealthiest person, has purchased a Beverly Hills mansion known as the Warner Estate from media mogul David Geffen for $165 million, a source familiar with the deal said on Wednesday. Geffen purchased the Warner Estate in 1990 for $47.5 million, a then-record price for a Los Angeles-area home, according to the Journal. It was not immediately clear if the Amazon CEO plans to make the Warner Estate his primary home. The Wall Street Journal said Bezos p


Amazon Chief Executive Jeff Bezos, the world’s wealthiest person, has purchased a Beverly Hills mansion known as the Warner Estate from media mogul David Geffen for $165 million, a source familiar with the deal said on Wednesday.
Geffen purchased the Warner Estate in 1990 for $47.5 million, a then-record price for a Los Angeles-area home, according to the Journal.
It was not immediately clear if the Amazon CEO plans to make the Warner Estate his primary home.
The Wall Street Journal said Bezos p
Bezos buys Warner Estate in Beverly Hills for a record $165 million Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-13
Keywords: news, cnbc, companies, 165, reported, journal, million, buys, bezos, record, estate, warner, hills, according, los, beverly, property, purchased


Bezos buys Warner Estate in Beverly Hills for a record $165 million

Amazon CEO Jeff Bezos laughs at a discussion at the Air Force Association’s Air, Space and Cyber Conference in National Harbor, Md., Sept. 19, 2018.

Amazon Chief Executive Jeff Bezos, the world’s wealthiest person, has purchased a Beverly Hills mansion known as the Warner Estate from media mogul David Geffen for $165 million, a source familiar with the deal said on Wednesday.

The sale price is believed to be the highest in a Los Angeles-area residential real estate transaction, surpassing the previous record of $150 million reportedly spent by media executive Lachlan Murdoch last year to buy the Chartwell estate in Bel-Air.

The Chartwell chateau was familiar to television viewers of the 1960s as the palatial home of the fictional Clampett family in the CBS classic sitcom “The Beverly Hillbillies.”

The 9.4-acre (3.8-hectare) property sold by Geffen to Bezos — in a deal first reported by The Wall Street Journal — boasts a stately Hollywood pedigree all its own. It is named for Jack Warner, the Warner Bros Studio chief who built the mansion in 1937.

Geffen purchased the Warner Estate in 1990 for $47.5 million, a then-record price for a Los Angeles-area home, according to the Journal. The Chartwell property set a new all-time high for the state when it sold for about $150 million late last year, the Los Angeles Times reported at the time.

Bezos, whose net worth was estimated by Forbes at $131 billion this year, owns properties around the world. It was not immediately clear if the Amazon CEO plans to make the Warner Estate his primary home.

Last week, the New York Post reported that Bezos and his girlfriend, Lauren Sanchez, were house hunting in Los Angeles and touring mansions throughout the area. Bezos has been searching for a home for the past year, according to the Post.

The Wall Street Journal said Bezos purchased three New York apartments earlier this year in a deal valued at about $80 million.

In addition to the $165 million he paid Geffen for the Warner Estate, his venture capital firm Bezos Expeditions paid $90 million to buy a tract of undeveloped Los Angeles land from the estate of the late Microsoft co-founder Paul Allen, the source told Reuters. The Allen property was purchased as an investment property, according to the source.

The Warner Estate, the Journal reported, features expansive terraces, sprawling gardens, several guest houses, a tennis court, and a nine-hole golf course.

“No studio czar’s residence, before or since, has ever surpassed in size, grandeur, or sheer glamor the Jack Warner Estate on Angelo Drive in Benedict Canyon,” according to a passage from the book “The Legendary Estates of Beverly Hills” quoted by the Journal.


Company: cnbc, Activity: cnbc, Date: 2020-02-13
Keywords: news, cnbc, companies, 165, reported, journal, million, buys, bezos, record, estate, warner, hills, according, los, beverly, property, purchased


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Trump to attend campaign fundraising event at Oracle Chairman Larry Ellison’s Rancho Mirage estate, report says

President Donald Trump is expected to attend a campaign fundraising event at Oracle Chairman Larry Ellison’s California estate next week, the Desert Sun reported Wednesday. The event is set to take place at Ellison’s Rancho Mirage estate on Feb. 19, which is less than two weeks before the Super Tuesday primary election, which includes California’s primary. According to an invitation posted on the newspaper’s website, the event will include a golf outing at Ellison’s Porcupine Creek home. Support


President Donald Trump is expected to attend a campaign fundraising event at Oracle Chairman Larry Ellison’s California estate next week, the Desert Sun reported Wednesday.
The event is set to take place at Ellison’s Rancho Mirage estate on Feb. 19, which is less than two weeks before the Super Tuesday primary election, which includes California’s primary.
According to an invitation posted on the newspaper’s website, the event will include a golf outing at Ellison’s Porcupine Creek home.
Support
Trump to attend campaign fundraising event at Oracle Chairman Larry Ellison’s Rancho Mirage estate, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: riya bhattacharjee
Keywords: news, cnbc, companies, mirage, pay, president, estate, desert, republican, rnc, report, supporters, outing, ellisons, golf, larry, event, oracle, rancho, trump, fundraising


Trump to attend campaign fundraising event at Oracle Chairman Larry Ellison's Rancho Mirage estate, report says

President Donald Trump is expected to attend a campaign fundraising event at Oracle Chairman Larry Ellison’s California estate next week, the Desert Sun reported Wednesday.

The event is set to take place at Ellison’s Rancho Mirage estate on Feb. 19, which is less than two weeks before the Super Tuesday primary election, which includes California’s primary.

Riverside County Republican Party Chair Jonathan Ingram told the Desert Sun that having the president visit the Coachella Valley had “immense value” for local Republicans.

“It’s showing that he understands that California actually matters in respect to being a Republican and a conservative,” Ingram said.

According to an invitation posted on the newspaper’s website, the event will include a golf outing at Ellison’s Porcupine Creek home. Supporters will have to pay $100,000 for the golf outing and to have their photo taken with the president. Supporters can pay $250,000 for a photo, golf outing, plus participation in a round table with the president.

Other names on the invite include RNC Chairwoman Ronna McDaniel, RNC Co-chairman Tommy Hicks Jr., RNC Finance Chairman Todd Ricketts and Trump’s campaign manager Brad Parscale.

Secretary of State Mike Pompeo met with tech leaders during a trip to the San Francisco Bay Area last month, which had included Ellison, as well as Nextdoor CEO Sarah Friar and venture capitalist Marc Andreessen.

Read the full story in the Desert Sun.


Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: riya bhattacharjee
Keywords: news, cnbc, companies, mirage, pay, president, estate, desert, republican, rnc, report, supporters, outing, ellisons, golf, larry, event, oracle, rancho, trump, fundraising


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UBS reportedly racing to curb outflows at landmark real estate fund

UBS is reportedly racing to stanch outflows at its landmark $20 billion real-estate fund amid worries about its retail holdings and extended underperformance. The Swiss bank’s Trumbull fund owns real estate in Cambridge, including the CambridgeSide mall as well as properties across the country in New York, Chicago, Los Angeles and San Francisco. If real estate fund managers don’t have enough cash on hand to meet a small number of redemption requests, they may be forced to initiate the sale of pr


UBS is reportedly racing to stanch outflows at its landmark $20 billion real-estate fund amid worries about its retail holdings and extended underperformance.
The Swiss bank’s Trumbull fund owns real estate in Cambridge, including the CambridgeSide mall as well as properties across the country in New York, Chicago, Los Angeles and San Francisco.
If real estate fund managers don’t have enough cash on hand to meet a small number of redemption requests, they may be forced to initiate the sale of pr
UBS reportedly racing to curb outflows at landmark real estate fund Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: thomas franck
Keywords: news, cnbc, companies, racing, outflows, reportedly, wall, funds, estate, ubs, cambridge, landmark, investors, curb, sale, street, requests, real, fund, trumbull


UBS reportedly racing to curb outflows at landmark real estate fund

Renovations include new floor tiles and a switch from brass accents to stainless steel at the CambridgeSide mall in Cambridge, MA on Jun. 13, 2017.

UBS is reportedly racing to stanch outflows at its landmark $20 billion real-estate fund amid worries about its retail holdings and extended underperformance.

Investors are standing by to withdraw some $7 billion from the UBS Trumbull Property Fund as a growing number move away from more cautious funds, a person familiar with the matter told the Wall Street Journal.

Hoping to stem the flow, UBS has reportedly offered to cut costs for investors willing to stay in the fund and to forego management fees for new investments, the Journal added citing an analyst presentation to the City of Cambridge, Massachusetts.

The Swiss bank’s Trumbull fund owns real estate in Cambridge, including the CambridgeSide mall as well as properties across the country in New York, Chicago, Los Angeles and San Francisco.

UBS did not immediately respond to CNBC’s request for comment.

An isolated uptick in redemption requests can lead to a host of issues for investment funds like Trumbull if other investors grow nervous the peer withdrawals and, as a result, choose to join the exodus.

If real estate fund managers don’t have enough cash on hand to meet a small number of redemption requests, they may be forced to initiate the sale of properties. The sale of such illiquid assets can take time and add to investor angst in the meanwhile, placing even more pressure on the manager to sell property.

But in contrast to riskier private-equity funds, which dictate when investors are allowed to extract money and include early-exit penalties, the majority of big core funds aren’t as strict about how often or how much its clients are allowed to redeem.

And while Trumbull isn’t the only big-bank property fund seeing outflows, its underperformance versus industry benchmarks has hastened the investor flight. It had performed worse than the NCREIF NFI-ODCE index on a 1-year, 3-year and 5-year basis as of a 2018 presentation to the City of Naples, Florida, Police and Fire Pension Plans.

— Read the original Wall Street Journal report here.


Company: cnbc, Activity: cnbc, Date: 2020-02-11  Authors: thomas franck
Keywords: news, cnbc, companies, racing, outflows, reportedly, wall, funds, estate, ubs, cambridge, landmark, investors, curb, sale, street, requests, real, fund, trumbull


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Sephora to open 100 stores in 2020, in bid to grow outside of the mall

Beauty retailer Sephora has big growth plans, at a time when many businesses are shutting their doors for good. The company, owned by Louis Vuitton parent company LVMH, will open 100 stores in 2020. This marks its largest real estate expansion to date, more than doubling its store growth in 2019. “We love our stores in malls … but the focus on this next 100 is more off-mall locations,” Jeff Gaul, senior vice president of Real Estate and Store Development at Sephora Americas, said in an intervi


Beauty retailer Sephora has big growth plans, at a time when many businesses are shutting their doors for good.
The company, owned by Louis Vuitton parent company LVMH, will open 100 stores in 2020.
This marks its largest real estate expansion to date, more than doubling its store growth in 2019.
“We love our stores in malls … but the focus on this next 100 is more off-mall locations,” Jeff Gaul, senior vice president of Real Estate and Store Development at Sephora Americas, said in an intervi
Sephora to open 100 stores in 2020, in bid to grow outside of the mall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-04  Authors: lauren thomas
Keywords: news, cnbc, companies, grow, open, sephora, growth, bid, mall, think, store, real, stores, gaul, 2020, outside, company, 100, estate, focus


Sephora to open 100 stores in 2020, in bid to grow outside of the mall

Beauty retailer Sephora has big growth plans, at a time when many businesses are shutting their doors for good.

The company, owned by Louis Vuitton parent company LVMH, will open 100 stores in 2020. This marks its largest real estate expansion to date, more than doubling its store growth in 2019. And the focus, with this growth, will be on expanding outside of shopping malls.

“We love our stores in malls … but the focus on this next 100 is more off-mall locations,” Jeff Gaul, senior vice president of Real Estate and Store Development at Sephora Americas, said in an interview. “We are getting closer to where she lives and works, where she does most of her errands … where she can pull right up and grab something.”

Sephora will also be looking to grow in cities like Charlotte, North Carolina, and Nashville, Tennessee — not necessarily urban markets like New York and Los Angeles, Gaul said, calling it a “hub and spoke strategy,” where the so-called Sephora hubs have already been planted in major metros.

“We hope to create a network of stores to serve clients in all the needs that she has,” he said. “We do not believe retail is dead. We think quite the opposite. We think it is alive and kicking.”


Company: cnbc, Activity: cnbc, Date: 2020-02-04  Authors: lauren thomas
Keywords: news, cnbc, companies, grow, open, sephora, growth, bid, mall, think, store, real, stores, gaul, 2020, outside, company, 100, estate, focus


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Airbnb hires Disney veteran to lead Experiences division ahead of expected public listing this year

The home-sharing company announced Wednesday that it has hired 15-year Disney veteran Catherine Powell to lead its Experiences division, which offers tours and other activities for guests such as cooking classes. The Experiences division could play an important role as Airbnb eyes an expected public listing later this year. Airbnb said Wednesday it has expanded the Experiences division to offer more than 40,000 experiences in more than 1,000 cities. The news comes after Airbnb announced earlier


The home-sharing company announced Wednesday that it has hired 15-year Disney veteran Catherine Powell to lead its Experiences division, which offers tours and other activities for guests such as cooking classes.
The Experiences division could play an important role as Airbnb eyes an expected public listing later this year.
Airbnb said Wednesday it has expanded the Experiences division to offer more than 40,000 experiences in more than 1,000 cities.
The news comes after Airbnb announced earlier
Airbnb hires Disney veteran to lead Experiences division ahead of expected public listing this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-29  Authors: deirdre bosa william feuer, deirdre bosa, william feuer
Keywords: news, cnbc, companies, veteran, lead, hires, experiences, public, division, airbnb, powell, real, disney, paris, listing, catherine, expected, estate, company


Airbnb hires Disney veteran to lead Experiences division ahead of expected public listing this year

Euro Disney S.A.S President Catherine Powell attends the presentation of a study on the economic and social contribution of Disneyland Paris in Paris on February 24, 2017, as a part of the 25th anniversary of Disneyland Paris’ events.

Airbnb is making some big hires ahead of its expected public debut later this year.

The home-sharing company announced Wednesday that it has hired 15-year Disney veteran Catherine Powell to lead its Experiences division, which offers tours and other activities for guests such as cooking classes. Powell most recently ran the U.S. and Paris theme parks for Disney.

The Experiences division could play an important role as Airbnb eyes an expected public listing later this year. Investors will look to see if Airbnb has successfully expanded into new services and offerings.

Airbnb launched Experiences in 2016 to diversify beyond its core offering of accommodations and capture more of the travel economy.

It remains unclear if Experiences is a meaningful source of revenue for the company, which is privately valued at more than $30 billion. Experiences brought in $15 million through the first three quarters of 2018, The Information reported, the most recent figures available. Airbnb said it brought in more than $1 billion in total revenue for the second quarter of 2019.

Airbnb said Wednesday it has expanded the Experiences division to offer more than 40,000 experiences in more than 1,000 cities. The company pushed into new categories of Experiences last year, such as cooking and animal experiences.

“Catherine is the perfect person to lead this business,” Airbnb co-founder and CEO Brian Chesky said in a statement. “Some people can come up with creative ideas. Others know how to run big teams and scale big businesses. Catherine can do both.”

Joe Zadeh, who was among the first 10 Airbnb employees, spearheaded the launch of the Experiences initiative in 2016 and is still listed on the company’s site as vice president of Experiences. The company announced earlier this month that Zadeh will transition out of the Experiences division to lead a team meant to serve stakeholder interests.

“Airbnb is a truly inspiring company with a mission that sits at the heart of the Experiences Economy,” Powell said. “I’ve seen firsthand how Experience Hosts take Guests on amazing adventures and I know Airbnb has a unique opportunity to deliver experiences that are distinct, authentic, immersive, and memorable. The potential for this business is virtually unlimited.”

The news comes after Airbnb announced earlier this month the hiring of Jesse Stein, a former executive of the real estate private equity firm KHP Capital, as global head of real estate. Stein will be tasked with establishing new real estate development projects as Airbnb looks to break into traditional real estate investing to supplement the supply of listings on its site.


Company: cnbc, Activity: cnbc, Date: 2020-01-29  Authors: deirdre bosa william feuer, deirdre bosa, william feuer
Keywords: news, cnbc, companies, veteran, lead, hires, experiences, public, division, airbnb, powell, real, disney, paris, listing, catherine, expected, estate, company


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I spent 12 hours with a top real estate agent in LA—here’s what it takes to be the best

Aaron Kirman has sold roughly $6 billion worth of real estate over his 25-year career, making him one of the top realtors in Los Angeles. He routinely sells multimillion-dollar properties, including one estate for a whopping $65 million, and on his new CNBC show, “Listing Impossible,” he helps homeowners sell their luxury real estate. He also runs the Aaron Kirman Group (AKG), a real estate team he started in 2017 that’s grown from seven agents at its inception to nearly 70 today. Entry-level ag


Aaron Kirman has sold roughly $6 billion worth of real estate over his 25-year career, making him one of the top realtors in Los Angeles.
He routinely sells multimillion-dollar properties, including one estate for a whopping $65 million, and on his new CNBC show, “Listing Impossible,” he helps homeowners sell their luxury real estate.
He also runs the Aaron Kirman Group (AKG), a real estate team he started in 2017 that’s grown from seven agents at its inception to nearly 70 today.
Entry-level ag
I spent 12 hours with a top real estate agent in LA—here’s what it takes to be the best Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-25  Authors: kathleen elkins
Keywords: news, cnbc, companies, estate, job, agents, laheres, lot, spent, hours, aaron, sell, agent, hard, takes, best, real, kirman


I spent 12 hours with a top real estate agent in LA—here's what it takes to be the best

Aaron Kirman has sold roughly $6 billion worth of real estate over his 25-year career, making him one of the top realtors in Los Angeles. He routinely sells multimillion-dollar properties, including one estate for a whopping $65 million, and on his new CNBC show, “Listing Impossible,” he helps homeowners sell their luxury real estate. He also runs the Aaron Kirman Group (AKG), a real estate team he started in 2017 that’s grown from seven agents at its inception to nearly 70 today. As a top realtor, Kirman makes seven figures, but not all agents earn a ton of money — and that’s one of the biggest misconceptions about the job. “On average, agents make anywhere between $30,000 and $50,000, which isn’t what the public thinks that they make,” he tells me when I spent a day shadowing him from 7 a.m. to 7 p.m. “It’s a lot less than you think because it’s such a competitive industry.” Entry-level agents can bring home even less than that because “it takes about a year to sell something,” he says.

The author and Aaron, in front of a $65 million home CNBC Make It

Over the course of the day I spend with Kirman, he lets me in on what it takes to make it in the cutthroat industry. Here are his three keys to success:

You have to put in the time

Even Kirman, who’s established himself as one of the most successful agents in the country, works long days that often end past 9 p.m. A misconception about the job is that realtors, especially those at the top, don’t work that hard. “It’s a tough job,” he assures me. “There are a lot of nuances that make it extremely complicated.” When it comes to being successful, “60% of it is showing up,” he says. “You just have to work really hard.” While he logs a lot of hours, “it’s in a different format than most [jobs],” he says. “I don’t sit at a desk or in an office. I’m out and about.”

You have to be brutally honest

Kirman has worked hard over his career, “but I especially credit my success to one secret: I’m brutally honest with my clients,” he writes for CNBC Make It. “If agents don’t tell their clients what mistakes they’re making, it can take much longer for a home to sell.” During the day I spent with him, two of our appointments were to assess the staging of homes nearly ready to put on the market. True to his word, Kirman didn’t hold back when offering feedback. His commentary ranged from, “Hate the chandelier. We gotta get this down.” to “Everything is disgusting,” which was his gut reaction to one particular home theater.

I especially credit my success to one secret: I’m brutally honest with my clients. Aaron Kirman star of CNBC’s “Listing Impossible”

He’s also had to tell homeowners things like, “you have terrible taste,” “your house is worth much less than you think,” and “the layout of your house is awful.”

You have to understand people


Company: cnbc, Activity: cnbc, Date: 2020-01-25  Authors: kathleen elkins
Keywords: news, cnbc, companies, estate, job, agents, laheres, lot, spent, hours, aaron, sell, agent, hard, takes, best, real, kirman


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5 tips for making money in real estate from an Indiana couple bringing in $2,000 a month

It’s also the reality for Indiana couple Greg and Holly Johnson, both 40, who net an average $2,000 per month in rental income from two homes. “We plan to use our rental income as part of our retirement plan,” says Holly, who writes about personal finance on her blog, Club Thrifty. Though it hasn’t always been easy, Holly says she has learned a great deal, and she shared her best advice for anyone who is considering buying a rental property. But, as they learned when they purchased a second prop


It’s also the reality for Indiana couple Greg and Holly Johnson, both 40, who net an average $2,000 per month in rental income from two homes.
“We plan to use our rental income as part of our retirement plan,” says Holly, who writes about personal finance on her blog, Club Thrifty.
Though it hasn’t always been easy, Holly says she has learned a great deal, and she shared her best advice for anyone who is considering buying a rental property.
But, as they learned when they purchased a second prop
5 tips for making money in real estate from an Indiana couple bringing in $2,000 a month Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-23  Authors: emily glover, susan roane
Keywords: news, cnbc, companies, month, mortgage, landlords, tips, holly, johnsons, bringing, indiana, rate, making, rental, 2000, interest, property, real, estate, income, renters, money, couple


5 tips for making money in real estate from an Indiana couple bringing in $2,000 a month

Real estate is often touted as one of the most reliable investments, and the prospect of earning passive income from a tenant while a property appreciates is appealing. It’s also the reality for Indiana couple Greg and Holly Johnson, both 40, who net an average $2,000 per month in rental income from two homes. The money allowed them to pay off one home “extremely early” and double up on payments for the second house, which is on track to be paid off within five years. “We plan to use our rental income as part of our retirement plan,” says Holly, who writes about personal finance on her blog, Club Thrifty. This was all possible because they purchased their first home in their 20s with a bigger goal to become landlords. Though it hasn’t always been easy, Holly says she has learned a great deal, and she shared her best advice for anyone who is considering buying a rental property.

1. Get familiar with specific taxes and fees

The Johnsons’ first rental property was also their first home; they were allowed to purchase it with a 3% down payment and get a lower interest rate. But, as they learned when they purchased a second property intending to rent it out, they needed a more robust 20% down, and the interest rate was higher. They were also surprised to learn that property tax caps in Indiana are double for rental properties. Because Holly knew the market in her hometown, she was still confident that rental income would offset monthly expenses. However, landlords operating in areas they don’t know as well may be in for a financial loss if they can’t charge enough to cover payments.

Video by Jason Armesto

2. Communication with tenants is key

It’s fairly standard for landlords to run background and credit checks. Holly is just as interested in what she can read between the lines from these reports, though. “I mostly do this to ensure renters are being truthful on their applications,” she says. “Our longest term renters don’t have excellent credit, but they were very straightforward about it. I appreciated their honesty and we’ve had a wonderful experience with them.”

3. Expect emergency expenses at the worst times

When it comes to homeownership, expect the unexpected, they say — especially when renters are involved. “We had a renter do about $5,000 worth of damage on one of our properties several years ago,” Holly says. “We had to replace all the flooring, all the interior doors in the home, a giant window on the front of the home, and more when they moved out.” Having a separate fund with the equivalent of 3 to 6 months of rent reserved — essentially, a emergency fund for the business — allowed the Johnsons to cover the expenses without dipping into their personal bank accounts.

Video by David Fang

4. Paying off the mortgage should be a priority

The Johnsons decided to throw their profits back into their one rental that still has a mortgage. By taking an aggressive approach, they are minimizing interest payments: “This mortgage is currently on a fixed rate loan at 4.95% APR, so we’re saving approximately that amount by prepaying.” Having a fully paid mortgage also gives them a financial buffer to clean a rental or make repairs during the gap between tenants.

5. Make decisions on homes with your head, not heart


Company: cnbc, Activity: cnbc, Date: 2020-01-23  Authors: emily glover, susan roane
Keywords: news, cnbc, companies, month, mortgage, landlords, tips, holly, johnsons, bringing, indiana, rate, making, rental, 2000, interest, property, real, estate, income, renters, money, couple


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LA’s top real estate agent says this is the biggest misconception about the job

As a top realtor, Kirman makes seven figures , but not all agents earn a ton of money — and that’s one of the biggest misconceptions about the job. Aaron Kirman has sold roughly $6 billion worth of real estate over his 25-year career, making him the No. A top producer is selling between $30 million and $40 million of real estate a year, which equates to a $300,000 or $400,000 salary. Another misconception, he says, is that the realtors at the top don’t work that hard: “It’s a tough job. ETDon’t


As a top realtor, Kirman makes seven figures , but not all agents earn a ton of money — and that’s one of the biggest misconceptions about the job.
Aaron Kirman has sold roughly $6 billion worth of real estate over his 25-year career, making him the No.
A top producer is selling between $30 million and $40 million of real estate a year, which equates to a $300,000 or $400,000 salary.
Another misconception, he says, is that the realtors at the top don’t work that hard: “It’s a tough job.
ETDon’t
LA’s top real estate agent says this is the biggest misconception about the job Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: kathleen elkins
Keywords: news, cnbc, companies, agent, agents, real, estate, world, biggest, misconception, kirman, million, work, theres, las, think, job


LA's top real estate agent says this is the biggest misconception about the job

Entry level agents can bring home even less than that because “it takes about a year to sell something,” he says.

“On average, agents make anywhere between $30,000 and $50,000 , which isn’t what the public thinks that they make,” he tells CNBC Make It . “It’s a lot less than you think because it’s such a competitive industry.”

As a top realtor, Kirman makes seven figures , but not all agents earn a ton of money — and that’s one of the biggest misconceptions about the job.

Aaron Kirman has sold roughly $6 billion worth of real estate over his 25-year career, making him the No. 1 agent in Los Angeles and among the best in the country.

A top producer is selling between $30 million and $40 million of real estate a year, which equates to a $300,000 or $400,000 salary. “Then you have the very, very, very top, which is a select few that make more than a million,” says Kirman. “And there’s one level up, which is big, mega brokers. There are not that many in the world, but there are a few, and I’m pretty lucky to consider myself one of those.”

“Mega brokers” make between $5 million and $12 million a year.

Another misconception, he says, is that the realtors at the top don’t work that hard: “It’s a tough job. There are a lot of nuances that make it extremely complicated, and I think that agents deserve every penny of every dollar they make.”

Even Kirman, who’s established himself as one of the most successful agents in the world, works long days that often end past 9 p.m.

To be successful in real estate you have to put in the hours, he says: “60% of it is showing up. You just have to work really hard. And then there’s intelligence involved — you have to understand market dynamics, human nature and the product.”

Plus, he adds, “there’s always a little bit of luck.”

″Listing Impossible″ airs on CNBC Wednesdays at 10 p.m. ET

Don’t miss: A day in the life of the top real estate agent in LA, who makes millions selling luxury properties to the super rich

Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: kathleen elkins
Keywords: news, cnbc, companies, agent, agents, real, estate, world, biggest, misconception, kirman, million, work, theres, las, think, job


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A day with LA’s top real estate agent

A day with LA’s top real estate agentAaron Kirman knows how to close a deal: He’s sold about $6 billion worth of real estate over his 25-year career, making him the No. 1 agent in Los Angeles and among the top in the country. He routinely sells multi-million dollar properties, including one estate for a whopping $65 million, and on his new CNBC show, “Listing Impossible,” he helps stubborn homeowners sell their luxury real estate.


A day with LA’s top real estate agentAaron Kirman knows how to close a deal: He’s sold about $6 billion worth of real estate over his 25-year career, making him the No.
1 agent in Los Angeles and among the top in the country.
He routinely sells multi-million dollar properties, including one estate for a whopping $65 million, and on his new CNBC show, “Listing Impossible,” he helps stubborn homeowners sell their luxury real estate.
A day with LA’s top real estate agent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15
Keywords: news, cnbc, companies, real, stubborn, sold, sells, day, worth, routinely, whopping, estate, las, sell, properties, agent


A day with LA's top real estate agent

A day with LA’s top real estate agent

Aaron Kirman knows how to close a deal: He’s sold about $6 billion worth of real estate over his 25-year career, making him the No. 1 agent in Los Angeles and among the top in the country. He routinely sells multi-million dollar properties, including one estate for a whopping $65 million, and on his new CNBC show, “Listing Impossible,” he helps stubborn homeowners sell their luxury real estate.


Company: cnbc, Activity: cnbc, Date: 2020-01-15
Keywords: news, cnbc, companies, real, stubborn, sold, sells, day, worth, routinely, whopping, estate, las, sell, properties, agent


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