Podcast#92 – #LaneHack – Coaching & Group Coaching Programs

Fill out this intake form and Email Lane@SimplePassiveCashflow.com

More details: SimplePassiveCashflow.com/coaching

 

Coaching packages including everything Lane knows and following elements:

Pick the path that is right for you:

    • Buy Hold Rentals
    • Remote Turnkey Rentals
    • Go big with Apartment Investing
    • Decoding Syndication as a Limited Partner
    • Raise money from others and Syndicate
    • Building a team

 

Find & Analyze deals

    • Be able to point out Sucker deals for “Californians”
    • Underwrite the property conservatively via cashflow analysis
    • Get every dollar on the table in the due-diligence period and punch list negotiation
    • Get the best financing option with Lane’s preferred lenders
    • Leverage Lane’s Deal-flow and Rolodex

 

Put it all together

    • How to setup your personal systems to not go crazy
    • Balance with your full-time job
    • Optimize taxes with my best practices and the proven professionals to advice you
    • Best technology to use
    • Learn the investor mindset and remove limiting beliefs
    • Future goal setting and clear 5-year plan after our program is over

 

Other possible scope of services

    • Growing your brand
    • Syndicate big and small deals
    • Start your own podcast
    • Internet marketing
    • Networking the right way

More details: SimplePassiveCashflow.com/coaching

My big takeaways from the list of 2018 Tax changes

Part 1 here

1) Standard deduction and personal exemption combined and seems like everyone is getting more… so its a wash IMHO.
2) Less deductions for those who don’t have a business like real estate investments. Sigh… it just gets harder and harder for working professionals.
3) Sorry to those paying Alimony… Yay to more kids though although we all know that’s a huge net negative unless you put them to work in the farm
4) Mortgage interest capped, this is to pay for general cuts across the board. Smart investors will find away to make their home an above the line business expense.
5) 20% pass through on personal return from business yay!
6) Estate tax limits increases… must be a favor for some old poker buddies?
7) Lower corporate tax to hopefully re-patronize companies who ran away from USA.

I went down the following list and updated my personal spreadsheets to calculate my tax liability. You should too… just Don’t hand it over to your CPA!

INDIVIDUALS

Effective Date: 1/1/18.
Expires 1/1/26.
Real Estate Taxes on Primary Home plus State & Local Income Taxes Capped at $10,000.
Standard Deductions:
Single: $12,000.
Head of Household: $18,000.
Married Filing Join: $24,000.
2% Itemized Deductions Eliminated:
Tax Preparation Fees.
Unreimbursed Business Expenses.
Continuing Education Expenses.
Licensing Fees.
Investment Expenses.
Alimony – Effective 1/1/19 Alimony No Longer a Deduction to Paying Ex-Spouse and No Longer Income to Recipient Ex-Spouse.
Mortgage Interest Deduction Limited to $750,000 for Primary and Secondary Home New Mortgages Obtained After 12/15/17.
Home Equity Interest Deduction on $100,000 Only Allowed For Home Improvements.
Real Estate Tax Deduction for Vacation Homes No Longer Allowed.
Moving Expense Deduction No Longer Allowed.
Casualty Loss Deduction No Longer Allowed Except in Presidential Declared Disaster Areas.
Medical Expense Deductions Adjusted Gross Income Threshold Reduced from 10% to 7.5% But Only For 2018 & 2019.
Alternative Minimum Tax Exempt Income Thresholds Increased From $54,300 (Single)/$84,500 (Married Filing Joint) to $70,300 (Single)/$109,400 (Married Filing Joint).
Alternative Minimum Tax Exemption Phaseouts Increased From $120,700 (Single)/$160,900 (Married Filing Joint) to $500,000 (Single)/$1 Million (Married Filing Joint).
Note: This means that if your income exceeds the $500,000 or $1 million phaseout amount, you are no longer eligible to exclude $70,300 or $109,400 from Alternative Minimum Tax.
Child Tax Credit:
Increases From $1,000 to $2,000 Per Child, For Children Under Age 17. Also, This Credit is Refundable Up To $1,400 If You Quality (Meaning – You Meet The Low Income Tests).
Phaseout Increases From $75,000 (Single)/$110,000 (Married Filing Joint) to $200,000 (Single)/$400,000 (Married Filing Join).
529 Plans Change – You Are Now Allowed to Use $10,000 Per Year to Pay For K-12 Education Tuition, Materials and Tutoring.
Obamacare Penalty is Eliminated Effective 1/1/19.
Marriage Penalty is Removed From All Tax Brackets.
Income Tax Brackets Will Now Be Adjusted For Inflation Using a Much Slower Measure Called Chained Consumer Price Index For All Urban Consumers.
PASS THROUGH ENTITIES

Effective Date: 1/1/18.
Expires 1/1/26.
U.S.-Based LLCS, S Corps, Partnerships and Sole Proprietors, Real Estate Investors, Trusts and Estates, REITs and Qualified Cooperatives
20% Deduction Allowed On Individual Income Tax Return. This 20% is Applied to Your Share of the Taxable Income From a Pass Through Entity.
Deduction is Phased Out if Your Income is Too High: Phaseout Begins at $157,500 (Single)/$315,000 (Married Filing Joint).
Non-Service Businesses Who Exceed The Phaseout Amount Default to This Limitation:
50% x Wages Reported On Pass Through Business or
25% x Wages Reported On Pass Through Business Plus 2.5% x Tax Basis of Depreciable Property.
CORPORATIONS

Effective 1/1/18
Permanent – Meaning No Expiration Date.
21% Flat Tax Replaces Graduated Tax Brackets.
Territorial System Replaces World-Wide System
All Foreign Profits of U.S.-Based Corporations No Longer Taxed Effective 1/1/18.
Pre-1/1/18 Untaxed Foreign Profits of U.S.-Based Corporations Automatically Subject to Corporate Tax, Even if Those Foreign Earnings Remain Held Oversees. Tax Rates on “Old Foreign Profits”:
8% x Untaxed Foreign Profits Invested in Illiquid Assets Plus
15.5% x Untaxed Foreign Profits Invested in Cash and Cash Equivalents.
ESTATE TAX

Estate Exemption Increased From $5,490,000 (Single)/$10,980,000 (Married Couples) to $11,000,000 (Single)/$22,000,000 (Married Couples), Effective 1/1/18.
OTHER

50% Entertainment Deduction No Longer Allowed, Effective 1/1/18.
Tax-Free Parking/Transit Subsidy No Longer Allowed, Effective 1/1/18.
100% Write-Off of Qualified Fixed Assets, effective 1/1/18.

This tells you per your state exactly how it is affected:

https://www.washingtonpost.com/…/busi…/tax-bill-calculator/…

Are you stuck holiday shopping?

Sitting around waiting in lines or family to finish holiday shopping? Here is some good reading?

https://www.cnbc.com/2017/12/14/older-wealthier-americans-are-the-new-renters.html

https://www.realpage.com/mpf-research/leaderboard-annual-permits-remains-largely-unchanged-october/

https://www.axiometrics.com/resources/axio-media/blogs/marriage-family-household-statistics-could-help-explain-propensity-to-rent/

http://www.nreionline.com/multifamily/has-multifamily-market-growth-been-stronger-urban-or-suburban-settings

https://alndata.com/multifamily-floorplan-distribution/?utm_source=December2017Newsletter&utm_medium=Email&utm_campaign=Read+the+Article

Like this type of content? Please email to a friend! Want to join the closed Facebook group? Use this link to setup a time to chat: https://calendly.com/simplepassivecashflow/20

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Podcast#082 – Fundamentals – Interview with Brad Baldridge

Paying for College Expenses with Coverdell, 529s, and hacking the Financial Aid

Brad Baldridge is a late-stage college planning specialist. He helps parents of high school students plan and pay for college using strategies such as merit aid, need based aid, tax planning, savings and investing for college, negotiating with colleges, scholarships and loans. Over the past 10 years Brad has directly helped hundreds of families plan and pay for college. He has provided in-depth college plans resulting in increased financial aid, scholarships, identification of the right schools at the right price, and better loans.

• Coverdell has low contribution limits (2k per year) but the good thing is that it can be used for a wider range of education expenses

• 529 is State sponsored and some states have special breaks based on where you live

• Do the Coverdell first and then the 529 in most cases

• Tuition, fees, computer, room and board, prescribed supplies, and groceries. Up to the cost of what the dorm would be. Sorry no beer

• Need to start before high school or even when a toddler

• You can transfer it to another brother or sister

• Its rare to have too much money in a 529

• Consider making a higher rate of return outside a 529

• A 529 has a menu of choices just like the 401k

• Show that you own nothing so that you don’t make to much money to qualify for financial aid

• The net value is what is important for financial aid

• The look back is two years (prior prior year) but this changes from time to time

• What about putting funds back in the grandparents generation? Gifts from grandparents are reported by income. So time it for the last year of college.

• Can’t use trusts to hide the asset, but can use irrevocable trusts

• There are tax credits but check your taxable income so you don’t

 

Thank you Brad Baldridge for joining us on Simple Passive Cash flow!

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Podcast#081 – Fundamentals – Interview with Mark Podolsky – The Land Geek and Raw Land Investing with Facebook Craigslist buy sell groups

Mark J. Podolsky (AKA The Land Geek) is widely considered the Country’s most trusted and foremost authority on buying and selling raw undeveloped land within the United States. He has been actively investing in Real Estate and Raw Land since 2001 and has completed over 5,000 unique transactions. Mark’s company Frontier Equity Properties, LLC is an A+ rated BBB real estate company.

Topics that are covered in this episode:

• Go on Treasury List to see who owns back taxes

• Unsophisticated come into ownership of raw land

• Buy it at 20-30% value, ensure so encumbrances

• The neighbor’s are the first people to buy if not maybe they want to sell theirs and now you have a larger tract

• Use Facebook and craigslist

• Use owner financing

• 3-5% response rate of offers

• All counties are different on how you get land listings

• Use gegolook.com or use craigslist or what three words app

• Facebook buy and sell groups

• Use special warranty deed and full warranty deed

• Blinkist

• Stop being an optimizer once you have your simple passive cashflow number

Thank you Mark Podolsky for joining us on Simple Passive Cash flow!

 

Podcast #076 – Interview with MC Laubscher, The Cashflow Ninja

In this episode MC Laubscher from South Africa explains how his foundation is centered around the infinite banking concept. He tells us where his passive income is coming from, and talks about some investments he is trying to turn into passive income. Laubscher will walk you through his journey of how he purchased his first single family property out of university in South Africa, and how he got to where he is now.

Topics that are covered in this episode:

  • Uses infinite banking to create cashflow and make investments
  • Purchased first property in South Africa in 2001
  • USA leads in creative deals
  • Started with an informal mentorship for them
  • Infinite banking is what wealth Family Offices use
  • Sick, alone, broke in 2011 – the person that is responsible is you
  • Get up in the morning and start moving
  • What you value is not what someone else values
  • Abundance/Scarcity Mindset
  • Is this your highest and best value… if not table it or have someone else do it
  • Document the processes to outcource things
  • A home gym would cut down on time traveling
  • I am not entitled to anything
  • Figure out what takes your time and write down a process to outsource
  • Email Lane if you have questions about infinite banking
  • Self reflect and figuring out what you are good at

 

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Podcast #073 – Interview with J. Martin, Organizer of SFBay Real Estate Summit

J. Martin shares his story about how he became the founder/host of the SFBay Real Estate Summit and how he funded his world exploration through real estate. Here are some of the topics we discuss in this episode:

  • $85K Passive income with a furnished rental business and other rental investments
  • He started a meet up in San Francisco and Josh Dorkin from BiggerPockets contacted him
  • After the 2012 BiggerPockets summit he copied the speaker list and called everyone
  • Replicate what people want
  • A lot of REI clubs are pitch-fest with profit sharing
  • Contact me with an iTunes review or referral to a new listener and I will let you know who to stay away from
  • Speech or topic meeting appeal to new members
  • Open circle
  • Don’t be an ask-hole, always add with value
  • Think what the potential mentor needs and do it
  • A lot of people what to be active when they really want to be passive
  • In every interaction try and add value
  • Give away info and value to see who are the sharks out there
  • There can be value to talking to people who do completely different type of investing thing using the same tool
  • IP Targeting to target certain people
  • Before an event look people up and see who you want to meet
  • Have a goal of what you are looking for and what you have to give
  • Make the initial contact to follow up later
  • Just realize that everyone else is there looking to people just like you
  • In today’s market J Martin is realizing that he can’t travel and purchase to properties and is traveling
  • He likes to deploy capital when the odds are best in his favor
  • Funding & Deals work in inverse

Thank you J.Martin for joining us on Simple Passive Cash flow!

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Bad Data: Class C/B vs Class A

Being an Industrial Engineer by education it drives me crazy how “Bad Data” is prevalent everywhere… much like how English majors get headaches over my writings.

“Lifestyle Asset Class” is the Class A inventory. The place rich people live in (or people who think they are) and what institutional and unsophisticated investors invest in.

“Renter-by-Necessity” is the Class B/C inventory. This is where blue collar hard working Americans live and where sophisticated investors are able to carve out double digit gains with stabilized properties that still produce cashflow in case of a market correction.

Take a look at the data below for All-Classes and compare it with “Lifestyle” and “Renter By-Necessity” tables and take note how you can’t take data you read in the Wall Street Journal at face value. We invest in “Renter-by-Necessity” properties and we need not let the “Lifestyle” data skew our analysis.

All Classes Data

 

Using Life Insurance to be your own bank

Video: Using Life Insurance to be your own bank

Find more videos in the video section. And please share the podcast by emailing it (I know you guys don’t want to share on social media because you are scared of others knowing that you are going to quit your job. I just want to get the word out that there is something other than the stock market!

The inspiration behind this:

I got really upset the other day. A friend of mine was talking to a so called financial planner and was getting sold Whole Life Insurance. To set the stage, the subject client did not have investments or much cashflow. Why the heck was Whole Life Insurance was being prescribed?!? Oh because Whole Life has some fat commissions and the ding-dong financial planner does not know enough to get themself out the rat-race.

I have been doing a lot of thinking lately… about what I really want to do with myself. One realization I have discovered is when something gets you so upset or passionate (like a financial planner screwing regular people… people who don’t have the cashflow or liquidity and being sold on the BS line of “conservative investing”) you have found a higher calling.

My rant is now over… As we covered very briefly on this past podcast. We are not talking about buying these types of policies for “insurance” or death payout, we are doing it for liquidity (to invest) and shield assets from creditors or lawsuits. I spoke to a couple other life insurance guys (smart guys) but they don’t get this either. They just tried to sell EIULs which do have higher yields but don’t have the liquidity component we are looking for so we can take out a loan from ourselves to invest and make a spread on the difference.

SPC065 – #LaneHack – Resonance Frequency & 10 ways to appear engaged at your day job

Happy Independence Day!
It is currently my 10 year anniversary of working and being a productive adult in the workforce
Somewhere along the way I found my way into this real estate investing and dedicated my efforts to building passive streams of income to do what I want, where I want, with who I want
Anti Rich Dad Poor Dad will call us undisciplined and with poor work ethic
I have collected the data points of over a hundred calls with investors and have found that it is rare that someone is able to align what they are good at and what they are passionate about
If you like what you do (I mean Saturday morning like what you do) consider yourself lucky
I use the analogy of a sonicare toothbrush and resonance frequency

10 ways to appear engaged at your day job with you are building passive streams of income
1) walk fast and move around frantically – general work areas
2) don’t tell people where your are going on vacation (ie going to Dallas to look at apartments)
3) don’t take calls in your car where people can see you
4) don’t drive a fancy car to work
5) attempt to look like your bring a brown bag to work… Say something like you are being healthy
6) invest in a small compact laptop to analyze deals and emails & Google Drive!
7) use calendar scheduler and VAs to schedule your calls around your work
8) when asked why you are not investing in the company sponsored 401k just say you are a government conspiracy folk… It will be easier to understand
9) just nod and say yes!
10) when you purposely keep your workspace cluttered so you look busy and appear indispensable
(Just for fun!)

And btw keep the day job as long as you can. SimplePassiveCashflow.com/quit