The Mesaros Team

Archive for December, 2009

You would agree if we say that property or real-estate is a profitable business. In fact, most people think of business property (sale and purchase of land, houses and shop) is relatively easy compared to other businesses. However, practice in the field was not easy. Many investors who already invest in property can not take advantage of it, even they could experience losses due to bad property location (not strategic enough).

Many investors in property loss because they were not investors. They are speculators who buy property. They bought the property in the hope the price will go up 6 – 12 months ahead. They are often less careful in analyzing the condition, location and the legality of the purchased property.

In fact, the business would become very profitable if we are not speculating. Therefore, to be successful, we must become ‘experts’ in the field of property. Most of the businessmen int property / real estate are the people who already are experts in this property. They do not buy property, land and buildings on the basis of speculation. They bought the property because the price is below market, strategic location, good prospects for the future and there is no problem with its legality.

Franchise vs Business Property / Franchise

We believe this property business more profitable and safer than a franchise business. If investors can not choose a suitable and proven franchisees, then the chance to go bankrupt in this business is big.

With a franchise business, most of investors’ money will be used for investment costs such as purchase business equipment, rental shop, until the business operations. Thus, if the franchise is not running, then automatically lose and the money investors would not back up the alias.

For the success of a franchise business, investors should not sit on my hands and rely on franchisees. Investors should be involved actively take care of business. In addition, the franchise business or other business bias Return on Investment (ROI) or payback rate could reach 3 – 5 years.

Now compare with the property business. Investors’ money will be used entirely to buy property such as land, buildings and shop houses, plus a small part to renovate. Other costs or operational costs is very small. Possible losses in this business is very small because of the money investors will return the minimum capital from the sale of the property back. And this possibility is very rare because usually the price of land and buildings are always rising every year.

So in our opinion, property business profits would be better than the usual business or franchise business. This business also will not take investor’s time much, because it will not engage in daily activities, day to day operations.

LLC stands for Limited Liability Company. As the name itself entails, a Limited Liability Company offers its members limited liability protection and a number of tax benefits. Forming a Limited Liability Company is now becoming a trend among business entrepreneurs and companies that are seeking for a business and management friendly environment in which they could run their planned business. Nevada has transformed into a heaven for corporations to build Nevada Corporations and LLCs who are looking for asset protection, low-taxation, confidentiality, and a business-friendly corporate/business environment with no personal income tax.

Stated below are some of the facts about forming Nevada LLC.

Forming a Nevada LLC

Forming a Nevada LLC can be advantageous to any business entity. They can enjoy the same security from liability and debt that they enjoy when forming a corporation. There are also substantial tax benefits to be garnered from the formation of an LLC in addition to this limited liability protection.

When forming a Nevada LLC, there is no restriction or limitation concerning the number of people making up the LLC. Moreover, there is also no limitation with respect to the types of stock the company chooses to have. The company must appoint an administrator who will be in charge of managing the organization.