Loopholes of Real Estate

(1 customer review)


Loopholes of Real Estate reveals the legal and tax strategies used by the rich for generations to benefit from real estate investments. The book clearly identifies how these loopholes can be used together to maximize income and protect investments.




Loopholes of Real Estate will teach you to:

  • Open up the tax loopholes available only to real estate investors
  • Close the legal loopholes of unlimited personal liability
  • Pay less in taxes, while using the bank’s money
  • Determine the right way to hold title to your real estate
  • Protect your real estate — including your home — from predators and creditors
  • Want more detail? See the Table of Contents

Written in easy to understand language, this book de-mystifies the legal and tax aspects of investing with easy-to-follow, real-life examples. Clearly written in an easy-to-understand style, this book de-mystifies the legal and tax aspects of real estate investing for the reader’s great benefit. A best-seller in 2004, this book has been revised and updated in 2013 for the current real estate marketplace.

Book Reviews

“This is an excellent book for those looking to invest in real estate – the information contained in this book does well to clarify the do’s, don’ts and loopholes and I heartily recommend this book as a must read for anyone interested in real estate on any level. Whether you’re buying your first home, or adding another multi-unit apartment complex to your vast real estate portfolio, Garrett Sutton’s book is a fantastic overview of the “nuts and bolts” of buying, owning and selling real estate.”–Pacific Book Review

Loopholes of Real Estate clearly reveals the tax and legal loopholes you need to know to be a successful real estate investor. Knowledge is power; this book is a must read for the strategic investor.” -Geraldine Barry, President SJREI Association & Publisher of REI Voice Magazine

“Novice investors will find it an excellent road map for getting started. Readers looking for easy money may be discouraged by Sutton’s demonstration of just how complex real estate money can be, but others will find helpful guidelines, tips and tricks presented in a clear, engaging style.” Kirkus Reviews

About the Author

Garrett Sutton, Esq. is a corporate attorney, asset protection expert and best selling author of 10 books. He has sold more than 850,000 books to guide entrepreneurs and investors. For more than 29 years, Garrett Sutton has run his practice assisting others in protecting assets and maximizing financial goals. The companies he founded, Corporate Direct and Sutton Law Center, have helped more than 10,000 clients protect assets and incorporate businesses. Garrett is a member of the elite group of “Rich Dad Advisors” for bestselling author Robert Kiyosaki.

Garrett Sutton is the author of Start Your Own Corporation, Loopholes of Real Estate, Run Your Own Corporation, The ABC’s of Getting Out of Debt, Writing Winning Business Plans and Buying and Selling a Business in the Rich Dad Advisors series.

Reviews (1)

1 review for Loopholes of Real Estate

  1. Kristin Larsen

    I am an attorney in private practice and have many clients who fancy themselves real estate professionals. Very few of them, whether they own many properties or only a few, truly know and understand how to maximize the tax and legal advantages of real estate. I intend to recommend this book to all of my clients (and colleagues) who either already engage in, or express a desire in, real estate investing.

    Garrett Sutton’s book, “Loopholes of Real Estate”, is the best and most comprehensive book that I know of to frame a person’s perspective of real estate investment through the lenses of tax minimization, asset protection, and cash flow maximization. Mr. Sutton, formerly a real estate broker himself and currently a real estate investor and attorney, brings real life experience, the law, and the professional knowledge of some of Robert Kiyosaki’s greatest Rich Dad Advisors to bear in this outstanding work. This book is a survey of real estate law and investing concepts that is an absolute steal as a mass market product. The information in this book is sold for hundreds if not thousands of dollars in other media such as seminars, academic courses, and professional books.

    Sutton covers a myriad of topics, with an overall emphasis on tax minimization and keeping your investments out of the reach of ambulance-chasing attorneys. Among the topics covered in this book are:

    (a) the basics of asset depreciation including using cost segregation to maximize passive loss;
    (b) overview of 1031 exchanges and the basics of how to use and implement them;
    (c) concepts of property management;
    (d) how to hold real estate, including a devastating indictment of land trusts and the scam artists who promote them as a form of asset protection;
    (e) how to structure your real estate holdings, including how to use corporations, limited liability companies, and limited partnerships, including the different tax classifications of same (e.g., “S corp” versus “disregarded entity”);
    (f) how to layer your protective countermeasures using insurance, debt encumbrances, your state’s homestead exemption, and equity stripping;
    (g) the different ways to hold title to real estate (e.g., the differences between tenancy in common and joint tenancy);
    (h) The different types of conveyances (e.g., grant ‘warranty’ deeds versus quit claim deeds) and their legal implications;
    (i) the “double negative” problem of investing in real estate using a Traditional (or Simple/SEP) IRA; and how to use a self-directed Roth IRA to invest in real estate if you choose to do so; and
    (j) how to protect your personal residence from creditors, including the proper use of your state’s homestead exemption, LLCs, and debt encumbrance.

    Sutton’s true brilliance is in how he crystallizes difficult, complex subjects into bite-size morsels that are easily consumed and digested by non-lawyers and non-real estate professionals. The Audible version of this book is narrated by Sutton himself, in a folksy, conversational tone which you can hardly tell is a narration at all. Listening to the audiobook often made me feel as if I was sitting in a chair in Sutton’s law office having a personal conversation with him about how to achieve my real estate investment objectives. It is an absolutely brilliant production.

    There are many other topics covered in this book which you will find helpful and enlightening. Throughout the book, Sutton uses the case study method (used in law schools and business schools) to bring to life the reasons why proper asset protection planning and tax strategies can both maximize your income, minimize your tax liabilities, and protect your investments.

    In closing, I can’t recommend this book more highly for anybody in any way connected with real estate. This should be the first thing you read about real estate investing, and Sutton provides numerous references for more in-depth discussions of certain topics. I recommend purchasing the Audible version and listening to it in the car, doing the dishes, and performing other chores, and then either owning the physical book or Kindle edition as a desktop reference. Rich Dad has once again hit a home run, and has successfully demystified and deconstructed a complex and daunting profession. With “Loopholes of Real Estate”, the advantages of real estate investing are now open and accessible to ordinary Americans from every walk of life.

    Thank you, Mr. Sutton and Mr. Kiyosaki.

    – A. H. Sudbury

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