Coaching Call with a Million Dollar Investor (Chris)

On today’s podcast we’re going to be doing a coaching call but a little bit of announcements. We’re going to be unveiling the new Infinite Banking e-course. I put this together to get all our questions on infinite banking. I think a lot of you guys listen to this stuff on a podcast and you hear all the benefits of it.

A lot of benefits, a lot of high net worth investors do it. I think every investor over a million dollars network should definitely have some sort of Infinite Banking policy but it’s not all sunshine and rainbows as you guys know. I do it! At the end of the day, I think the benefits outweigh the cons, but get yourself educated.

Check out our infoPage@simplepassivecashflow.com /banking to learn more there, get free access to that e-course. Probably tell you guys about a couple hours to get through, but again, that’s free. Check that out there. We’re also going to be doing a bootcamp one of these weekends.

Make sure you guys sign up there, get on the email list by going to simple passive cashflow.com/club, to get the invite to that free a weekend boot camp. And some other things that I’m following other than the Delta spike in COVID cases.

Peter Thiel, he screwed it up for everybody. If you guys don’t know the story, but Peter Thiel basically stuffed his Roth IRA with a whole bunch of severely undervalued stocks B shares, whatever you call it, but basically that he pissed off the government.

And now the government is tightening a lot of these self-directed IRA. And pretty much screwing everybody’s even doing the regular Roth and regular IRA. We’ll see what happens. Who knows they might put a capital in the Roths. A one thing I’m looking for is they might be putting like a appraisal requirement on all your assets in there where they make you get. a $5,000 appraisal fee

Which would pretty much Kubosh the whole point. You’re going to have to base so much in fees, but I’m looking for this in the next RISE Act. Something that was put on the faults when Trump was in office, but is coming back up. Of course it’s going to be sold as I forget what RISE stands for, but it’s Hey, let’s help Americans save money.

By changing a bunch of the ways that the self-directed IRAs, etcetera work. But I think it’s gonna screw a lot of you more sophisticated investors up. I don’t do any retirement accounts. I don’t know why anybody really does it. If you invest in real estate. If you guys do crypto, I’d probably do it on crypto, but, check out my long list of reasons why at simplepassivecashflow.com /QRP. But, beyond the lookout for that infrastructure bill, I’m actually pretty bullish overall. There was the recession is over the world’s shortest recession of what, like two months or something like that is over. And looks like rents are coming back up.

I think the rent more terms, how they stay how they are, always offers stability I feel bad for the small landlords. It’s the small landlords who are put in a hard space once all these moratorium are up and things start to open up. Whereas, on the larger apartments, the commercial property managers have a lot more tools at our disposal to adequate the protect ourselves, the landlords.

I’ll be on the lookout for the rise act, the secure act whatever, they’re going to call the infrastructure bill.

And then some of you smart investors out there that utilize the whole buying something under market in your IRA, swapping it over to Roth. That little chikaru you guys like to do that I think is a little risky. I think might be definitely going away as they might put in some kind of nasty language in the RISE act where they’re saying you cannot buy things under fair market value.

Which makes no sense if you’re a real estate investor, you’re always buying under a fair market value. But anyway, we’ll try and be on the lookout together. If you guys want some more insider tips, join our family office. Ohana mastermind, go to simplepassivecashflow.com/journey and enjoy the show.

 

We are going to be doing a coaching call with a million dollar. We’ll just call it that! Call it a million dollar net worth investor. Chris, he’s been part of the HUI pipeline club for quite a while.

About 2016.

I always remember when we have calls and I remember we were talking when I was at my past day job.

Back when you used to live here?

Yeah. Why don’t you give us a little context on yourself. You’re up there in Washington, where I used to be.

I live in the Northwest. It’s like you said, I work in the power industry as a technician there electrical task 📍 guy.

We have two kids, my wife works and we own a business also. Started chugging along on real estate when I started talking to you back in 2016 had done a lot of actual like futures trading and other types, like stock investing, hoping that would set me free, and learned a lot.

Then my neighbor’s house came up for sale and I started looking seriously into what it would take to have rental properties and dove into bigger pockets and your website at the time of your podcast and just tons of podcasts and got fired up on it. And looking at the slower moving animal that is real estate investing.

What made you finally get rid of like the stocks and options and all that type of stuff?

I don’t do it anymore. It was definitely time consuming and it’s just seems so unpredictable. Just trying to check on, I was doing an option selling and try to do that monthly income model. It was so volatile and just not a lot of fun trying to sleep in doing that thing.

I just ended up really, the fire got lit by this house that was right by me or which I did not buy, but it got the fire lit and I just started digging. And ended up, I got into the turnkey if you want to chat about that for me.

Why did you not end up buying that rental nearby?

The whole bigger pockets land and the financial calculators that you get the 1% rule is really why I did it. Honestly, it would’ve been a good deal for us just because of speculation and the houses have gone crazy around us. But you don’t know and so that’s the very first thing you learn, you don’t go for cashflow.

It would have been a break, even deal for us. As far as the rent, barely making it and no cashflow, but it would have been a great speculation as far as appreciation you don’t know that and no one tells you to do that.

People invest that way, right? Buy low, sell high, go on appreciation. And if you’re bleeding cash a little bit every month, most people that’s how they invest.

I guess I got talked out of it just because I’ve done the speculation thing with the stock trading and stuff. And so I wasn’t really interested in speculating anymore.

I was interested in cash flow and so I ended up not pulling the trigger on that deal and then really did a ton of podcasts on turnkey investing and retail turnkey thing. I ended up all over looking at tons of different stuff and really I just pulled the trigger on ensemble.

And after awhile I was like, I’m just going to do this. It seemed like a huge deal at the time. Now in hindsight, if you haven’t get operator, even though you’re paying retail, it still works. It still makes money every month. I’ve been in that for four years now.

And it’s just been chugging along for better or worse there’s been nothing to do. That’s where I’m at. I was not tempted to buy anymore. There was a fire lit buy pretty quickly by thinking about multi-family and mobile home parks in particular. And I went down that path and that’s been a two year journey of being involved in that.

Let’s get people up and where we are in the scorecard here. Cause this is what evolved really matters is what your net worth is. Your net worth is just shy under a million dollars, just call it that on a good day.

You’ve been pretty good with your money, right? Like most people in our group compiled a bunch of assets, have your liabilities in order. Now let’s take a snapshot of like your monthly velocity. You make a pretty good salary on 9,000 a month. You’ve got some real estate income. The important thing here is in net cash flow 3,600 a month. You’re able to put away and save maybe 40 grand a year. Is that about right?

Yeah, I would say, that would probably be about right. That’d be probably max right now, depending on. This has nothing to do with the business that we own right now, what you’re seeing here. I would say 40 is a good number right now.

That’s awesome! You’re not making a huge salary, like some of these other guys, but you’re definitely in the average of where people are saved. Most guys are between 30 to $50,000 a year. And at that point, you’re moving at a pretty good clip.

You’re not buying a syndication or two every year or two syndications or more, or three houses every year, but you’re steady making progress. And at this rate, you’d probably be a lot different financial situation. I don’t know if you’re gonna be financially free at five years, but you’ve got to definitely getting there probably going to be there and like under 10.

It all matters on your living expenses. And I know the picture here. I can just guess from seeing so many financial profiles like this, I’m sure you can tighten the belt a little bit, but you’re just seeing the light at the end of the tunnel and you’re gonna coasted there.

You don’t need to live in ramen noodles. We don’t. We have some perspective on that for sure. You’re going to live a little bit, and it’s like just there, right? As you lay out the plan, the tightening maker may not. When we talked a long time ago, you were doing the turnkey stuff. I think that’s what connected us in the universe. And then you went off the simple passive cashflow registrar. You became more of a do it yourselfer kind of guy. Tell us how that little experiment went. What did you go off by? What did you do?

I wandered out, I got very interested in the mobile home park thing.

And it’s why I got interested in it because when you look at mobile home parks, what’s interesting about them is that they can be passive in some respects. If the mobile home park is all tenant on homes that is a really cool model where the person that lives there owns her own home, they just climb you rent the dirt to them and you just maintain the property.

That’s not the part that we bought. We definitely saw the lure of the higher rents from owning homes so we bought a park and I have a partner on it. It was just two of us. We bought a park that that has 25-ish tenant and our I’m sorry, we own 25 of the home. It’s a lot of work.

As far as just keeping people in. It’s a low-income housing community is what it is. I’ve learned a ton about it. I definitely get that the tenants own their own homes or I don’t even know their names barely. Actually I say that it’s like, they’re really super easy they just do the thing and take care of their house.

They pay me rent every month. You run into problems in a mobile home park when you’re hunting people to collect rent and they don’t own the house and they trash it. You may have said this before, but it’s like pig pen or something. It gets, they go crazy.

And so you get to rehab or, do a rent to own handyman special kind of stuff, doing a lot of that stuff every year. Pretty much every couple of months with turnover. But the other thing I’ve learned is that, low-income housing is high demand and we never have an issue with vacancy.

You’ll have vacancy just because you’re turning one over, just cleaning it up, but really it is pretty incredible. I’ve seen the whole thing and I do realize that I’d prefer to be more of a passive investor at this point in my life. It’s something you’re always thinking about when it’s yours and you’re the operator you’re everything, and you’re communicating with the manager and doing all that.

That’s the story. The partner you went into was he more sophisticated operator experience with this stuff. Nope. We were both just interested in doing it. Had done like the kind of a Academy mobile home park bootcamp stuff. Exactly. Just pretty much just fired up newbies and dove in.

And the person we bought it from was super helpful. And that was probably the easy part honestly, we had that person helping us and they had tons of properties in that area, they just held our hand on it. And we got go on that way. And yeah, that was the story.

I will say like that the mobile home park education out there. There’s only one group that does it, but they actually do a pretty good job of actually teaching it to you. It’s a shame that there’s a plethora of multifamily crews teaching it but they only teach out how to buy the properties.

None of them actually teach you how to operate it because a lot of them have been operated them thing or own rental or own multifamily in reality. But I think Frank and Dave do a pretty good job. Yeah, you get a lot of operation stuff and they’re available to you, and it’s it was good.

I felt like he showed up with stuff. He just, I, yeah, it was like maternity thing. It was like once it was super scary and then we did it with the mobile home park too, it was like now we’re in it. However many thousands of miles away doing it. Both of you guys are remote?

It’s remote and he spent a lot of time on the phone. The business exists inside my phone? Did you guys know each other or you just happened to meet up randomly? Yeah, meet up randomly! That’s crazy! It’s just powered out and have been so two years in now over two years of doing it and we’re thankful for our manager.

Be cause it’s been a crazy year what really no desire to travel there right now. It’s just spend letting a check along that’s as we can given everything going on and still demand as far as that goes.

How many times did you visit that property?

Once I’ve only ever been there once. The weekend I bought it and I can say that crazy. We got a good manager. She managed a ton of the properties of, or three or four of the guys properties that we bought it from a regular human. We learned our lesson actually right off the bat.

Hiring somebody that was living there in the park. That was one of the low-income tenants. It was a lot of drama that we pretty quickly realized was a mistake. That’s what’s hard with mobile home parks because there’s not that infrastructure, there’s not a plethora of different third party property managers in that asset class.

The two you guys would have had the gun around and interview specific people have trained up on a day, which is hard. Exactly! We’re lured in by the money and doing it. It seemed great and it’s been fine.

It’s a learning experience but it’s pretty time consuming. And for where I’m at in my life, it’s just not the right time. Like I say, it is for sale we’re trying to move on from that and do some other stuff passively. Okay. How much money do you guys have tied up in it and get leverage?

I have about 225 tied up into it for me and I’m hoping to chat with you about deploying that.

You didn’t really make money on this? This is just got your original, down payment back out. We’re not, it’s under contract to sell. We’ll see how, in the end we should make some money, when it’s all done, I’m not going to say what that is until it’s all done.

We need to speculate on it now we’re talking taxes. We need to know. It’s 50 grand or something like that? Oh, it’d be more like about 70 grand. Okay. Here’s what it would be, but I can work with that. Not much. And then maybe you took some depreciation too throughout the couple of years.

I don’t know, maybe 80 grand capital gain plus depreciation recapture. You’re thinking. I think so. You’d have to speculate on that a little bit. I’d have to look back to read that. Okay. A lot of syndications, they’re going to get 50 to 70% of what you put in as passive losses to offset that right away. We can talk about that in a little bit. Like the turnkey in Memphis, how’s that guy going? It’s just smooth. It’s funny. And a super smooth we had the glitch this year with COVID itself.

The person lost her job. It was like a half payment one month and then I got, everything back the next month. It’s been super smooth. Far I’ve had a couple of patients it’s been. It’s a big operator. I’ve been tempted to sell, but I’m like, I don’t know why I would deal with it.

Just selling it. I don’t know. I guess I couldn’t do it a sec. I’ve only had it for four years, so I’ve just been paying interest or it’s the wrong end of the amortization table. I wouldn’t sell them until you’re tapped out on deployable capital and then look to sell it.

It’s not going to be a lot of money there. Yeah. And if it’s work, if you’ve got a good tenant, that’s gold, right? The good tenant is a big thing, but the search to get there is above the cost of the road to get there. Let’s put that on this tab right here, there’s like a deployment plan.

You can put on here what you’re going to sell to get funds and how you’re going to deploy it. That’s how to use this tab. Okay. But I would say. If you have any other liquid cash that you want to invest, or as we start to transition more into what’s the deployment plan now. The deployment plan is going to be the funds for the mobile home park right now.

I have cash sitting around that I’m wondering if I shaded this 45,000- ish cash that comes back in that’s really just the money coming back in from my investments. I could sit on that or not. I’m trying to decide if I should put that like in AHP type deal and I just don’t know how liquid they are.

You’re get the money back out a couple of months to two months. The other thing is there’s always the loan from my 401k, you can always do the 50,000 from that pretty quickly too. Probably faster than getting that money at AHP too. You are running a little fat here on liquidity definitely. I don’t think you need that much, maybe 20 or 30 grand, but yeah, I think that’s where a lot of conventional financial advice is, you need X amount of expenses.

You don’t really need that. If you are able to get it from a credit card line or take it out from your Roth IRA or IRA. You know that we’ve got to get your good to get your money in the game. You’re not $2 million stimulant dollars a year. No, I can flame it. Yeah. I’d like to get it moving. Oh, actually a question I had though for you, and I think as far as deployment, I was thinking about selling the note that there’s two notes up there, just up the page a little bit.

One of those is a, is it a self-directed IRA? It’s fine, but the $30,000 note originally, now it’s 25,000. In my name coming back to me, it seems like it might be better off deploying that into a syndication or something, instead of just income.

That’s taxed, like regular income. It seems like a better option to move it out of there. Sell that and move on and put it into a syndication. Yeah. If you’re only making 9%, age does everything for you and both of my ordinary income. Not saying you would go down one specifically.

I would say, correct me if I’m wrong here, but invest the mobile home park money 200,000 there. And then either the note or you’re gonna touch any of this, the stock stuff, or are you going to keep that where it’s at? Right now, I’ll probably leave that word is other than I may I have the ability to pull that $50,000 loan off my 401k.

Where seemingly unrelated question. But this ties in, what is your adjusted gross income around as a household? A 125. Okay. You guys don’t pay too much taxes. Now, you guys are under the 300 threshold.

This year will be quite a bit different more. We bought a business last year that has got quite a bit of income. We’re trying to get all of our books handled right now. I can’t give you an exact number, it won’t be a crazy high. It might still be under 200.

Next year, will the business do the same thing? We’re going to try to make sure it does. We have plenty of things that you can buy. We’ll keep it down. We’re pouring money into infrastructure right now. We’re we have enough expenses. I think that okay then to zero.

Yeah, the zero that income out. And that’s the goal of the business, right? On taxes. Okay. I’ll leave this alone. You can incorporate in as you feel comfortable with. I would think since you’re not in a high tax bracket, even with the business to take it out slowly would be the thing to do.

If you’ve heard me multiple times, I don’t like these types of retirement plans because you’d rather pay to taxes now. Taxes growing up. Your tax bracket is lower now and then you don’t get the passive losses that play that game from this stuff but if you take the character. Oh yeah.

Okay. You don’t have to decide now, but I would say, maybe think about just leaking out 20 to 50 or a hundred grand every year. Through like a 72 T thing? Or how would you say doing that? No just cash it out. Yeah. Okay. But I’ll just let that stew for you right now.

We’ll see. Exactly. Yeah. That’d be like a chat with the tax guy. No, it’s not tax for the tax guy. It’s a little right here. You don’t have to talk. No tax guy tell you about. It’s which way do you want us to stir the ship man? Yeah. The tax guys down in the engine room.

I’m telling you what happens if you do it. I’m telling you what’s going to happen. We all know. Just don’t worry. Your tax bracket is basically, and how much you’re going to take. And then just wait out from there is what you’re saying. But that’s more of a strategy thing, right?

You need to do the math on. All right. If you take it out and you start investing in cash, what will the implications be? Will you be making more money there? What kind of losses will you be getting? Will there be cost segregations done? That’s what you need. That’s your job.

That is not the job of your CPA tax person. Big thing. It’s your number one expense in life. Got to know what that is. That’s not the job of your tax guy. That’s unfair for them to know. I’ve definitely heard you say that before. It’s getting up to speed on that stuff is really a goal this year, just to be dialed in.

Good questions ask. Yeah, it’s pretty simple. I would say come to the bubble or get around the other people in our tribe. You’re not going to get it if you want to pay somebody to tell you how to do it. I think that’s costly. You guys can’t afford having office consultant under $5 million net worth.

But you’re gonna have to get this from your peer group of other high net worth accredited investors what they’re doing. I would highly recommend that and just getting around other high net worth people is a big thing and yeah not on the bigger pockets. That’s for sure. So I would think about that maybe taking out maybe 50 or a hundred every year and put it to investments, but you got a backlog, you got the mobile home park things first.

Ideally with the mobile home park thing, the way it’s going to work is sell it in the beginning of the year so you have the entire year that builds up your passive losses. Follow up, do you know how much passive losses do you currently have just built up? I don’t know, go look at your form. I think it’s 48 25.

No, it’s not. I don’t know. It’s 48 something. Okay. But if it is a form that has all your passive losses on it, your federal depreciation schedules. Okay. I would ask your CPA for that but they don’t give it to you or they screw around with you. They’re playing games, cause this is a big game that CPA’s played.

They don’t like to give it to you because now they know you’re shopping for a new CPA and that form has a lot of built in formulas and calculations in the spreadsheet. You might have 20 or $30,000 of built up losses, suspended, passive losses to offset that mobile home park sale. Again, I think you said you’re looking at maybe an $80,000 capital gain plus depreciation recapture.

So if you already had $30,000 to spend in losses, now we’re only looking at 50,000. Okay. Different. Okay. Yeah. Okay. So if you went into a normal syndication that does 70%, 80% leverage and does it cost sake and 50 cents of every dollar is, Put back as bonus appreciation. You’re one, you’d knock that out with a hundred thousand dollars investment.

Okay. But, so that’s how you that would probably knock out your, what you’re going to get on that mobile home park. Things move super slowly, right? As you’ve seen the mobile home park, it’s probably going to be quarter two when you actually sell it. But then you have to go in into another deal before the end of 2021 to kind of book that, to offset it.

Yeah. And in your opinion, given where I’m at, would you deploy do that in multiple chunks at a different deals? If they’re available, a hundred thousand electric 5% rule, right? I don’t want you to put more than $150,000 into anyone deal. You. You didn’t follow that role on the mobile home park?

No, I did not. You at 20% of all in it, probably back then your net worth wasn’t as high. So yeah, that was a, that was breaking a Cardinal sin, my friend, but Hey, it’s real estate. It works out well, most of the time. Yeah, it’s true. It’s a forgiving asset class. Slow moving and forgiving.

Yes. Deploying into multiple things this year, that would be hopefully if everything, hopefully deals are available and able to get that deployed. It’s just like when I sold my in 2018 or 17, I sold seven or eight rentals for our capital game of $200,000, but I had gotten two deals and I had several hundred thousand dollars of passive losses built up.

Have you sat the offset, so that essentially doing the same thing here for you,

Get that done. Then worry about the retirement funds, that’s okay. That’s definitely what I’m thinking. I don’t want to freeze stuff up. And like I say, I have the cares act distribution, which isn’t a huge cause you can chop that up into three pieces.

That’s not going to add much. To our bottom line this year, I tell it to you now, because you got to decide in the next few months, whether you’re going to really do this crazy idea that Lane’s talking about. you’re going to take out 30 to 50 grand every year, 30 to a hundred grand every year for the next three to five years.

It’s a slow thing. This note that’s not in your retirement funds? I would unload that as you can, just in the same style is unloading the turnkey. Like maybe just throw the turnkey on Roofstock they allow you to list it with a tenant in place.

Okay. Okay. You’re not obliged to sell it. You’re still making cash flow on it. And then same thing. Like this note, you can sell it while you’re collecting payments at the right price. What I would recommend. You don’t want to really sell this in the next few months, but just put it up anyway.

Just put it up at a, make me move price and see what happens. Yeah. The turnkey or the a note. You mean both of them. Okay. I’ll have to look into that. And then. Yeah, they squeeze down the liquidity. I don’t think you need as much. Yeah, I can definitely deploy that. Yeah. I don’t know if you want a little bit of a cashflow stream.

Maybe you thought 20 grand and HP or something like that before they, their current fund goes away. Pretty straight forward, I think. Yeah. There’s not a ton of moving parts right now. Yeah. It’s just, yeah. We’re waiting on kind of a load of capital to come in and then nothing crazy to do right now.

I don’t think unless I get that. We’ll move forward that your highest and best uses at your day job don’t get fired. I don’t know what all the business is, but it’s the business of a capital intensive business. You need money to do marketing or. Not at all. Nope. It’s a local service business.

And we bought it, it was already cash flowing. An owner finance deal. There’s not a lot to it. It’s not capital intensive at all. We make money. If anything is just time, it’s time, that’s all it is. Yep. It’s learning.

We’re going to build it up to turn it into an asset to try to possibly. Sell that to you at some point here. We’re learning the ropes of that business now, too. I guess we’re glad for it. Mobile home park now, service business, just learning. Yeah. That’s, you guys are in a good spot.

You got a day job. That’s probably low stress makes pretty good money. Yeah, recognize that you can not put your heart and soul into it and put it somewhere else and make money there. And that’s your, all your highest and best use to put your overflow time into the business? I think the only thing for you guys is maybe this is maybe years down the road, but I don’t own that service-based business.

You can turn it into some kind of passive cashflow stream as opposed to right now it’s ordinary, right? It’s a business. Yeah, but maybe you, when you reposition it, you stabilize it, you sell it off to somebody, but you retained investor rights. You find some young whipper snapper who wants to trade his time for money and you just, you maybe you’re still working on it.

Don’t get me wrong. But you change your compensation from, An ordinary income business to more of a K one passive stream. So that’s a conversation you could have with your CPA, but, follow me here. Yeah, you’re the one having steering this conversation. They’re not going to tell you, Oh, Chris, we should turn this into passive income so we can take your passive losses that you have a glut of and offset that they’re not going to come up with that stuff.

Yeah. That’s not their job. Their job is not to transform your life

okay. Yeah. I definitely, I need to get more education around that and, just to know what the right question to ask my dad at this point that’s certainly a goal this year. I don’t know if that’s possible in your business, we have some Doctors, they own a medical clinic and that’s how they do it.

So they changed the color of money from ordinary the passive. So now they’re able to use the passive losses to offset their ankle and they don’t need to be real estate professionals to do that. Okay. Yeah. That’s, the goal is to, is you nailed it yet, finding that young whippersnapper and all that to get them, it would be a good,

it’s not a high tech job. And who cares if you’re getting paid top dollar, I don’t know what your salary from that, but like maybe you were making a hundred grand a year from that business who cares if it’s 50 or 60,000 young worker stuff, it doesn’t get the game. It doesn’t get the perfect picture you’re getting paid and the passive income color, which you can drive down to zero.

What’s your other stuff going on? Yep. That’s the goal. We’re just building it right now. It’s slightly more time consuming. Does your where your guys’ AGI is getting real, super professional status, I don’t think is a big deal. You don’t really need it.

That’s more for the guys above 300,000 a year. Does your spouse work? She runs the business. She’s the sole owner. Okay. We could make, use the owner and free her up if you made a lot more money at your day job, if some people are listening, that would be a move that we look into, but for where you’re at, the way you guys are doing it is optimal.

I think. Okay. It’s just where we are now. We’re, it’s a, it’s learning as we go and seeing what works best for us. And this is, best right now. It sounds like you might need a new CPA,

we’re in the hunt for that right now, actually. There’s a section in the e-course currently that has how do you interview a new CPA? Okay. But I would ask them in your situation Hey, I have this business. Can you tell me about, changing this money from ordinary income to passive income and how that would happen?

What if I were able to do this, how would the passive loss would I be able to use my passive loss to offset my passive income for my business? That’s the main point of doing that is to offset the passive losses from your investments. Is that what you’re saying? You want to ask him that at least that’s my style.

How you ask him not a stump, the chump question. Oh, tell me about non conservation easements, right? But you want to have a dialogue with them and just feel them and see if they, you can work with them. if I have a lot of passive losses, how can I use them?

They’re like, no, you can’t do that. That’s a business. You can’t do that. Then, you’re not working. It’s somebody who’s open-minded who’s creative. Maybe they just don’t have the experience. Okay. I think that’s one way you can ask, that’s the least of my style in our mastermind.

We have people do it different ways to vet the CPA, but that’s my style. It’s I go in there, how can I use the passive losses to offset this cup right here? They’re like, Oh, you can’t do it. That’s not someone who you want to work with.

We want somebody who’s Oh, okay. So this is ordinary income and you can’t offset it with passive income service professional. If we were able to change it from ordinary to passive, right? Like your notes, for example, that’s yeah. Yeah. So to have that intellectual conversation with your CPA is unfortunate.

That’s maybe you have to get up to that level of yourself too. I definitely need to get there, but it’s I feel like I can have a conversation with them. I think that’s what’s hard for a lot of CPAs. Most of their people coming through the door or totally blew this up and stuff.

They’re like, Oh my goodness. Another sucker. You’re only going to have to do 401ks or self related Roths. Sorry buddy that’s all you got. They know you don’t have anything else cooking, just like the average American out there. Right! Yeah. I’ve been on the hunt really for somebody for a while.

At least gonna ask me good questions too. And I’m willing to pay for it for a while for sure. We’re gonna figure that out this year. Cool, Chris, I appreciate you doing this. I think a lot of people, follow the little journey out to mobile home park.

Yeah. Glad to chat with anybody about that. Yeah. There’s a lot of stories. If you guys haven’t please check out the website and join our clubs simplepassivecashflow.com/club and we’ll see you guys next time.

Close Menu

Free resources!

1) LP Syndication Guides & Turnkey Rentals

2) Accredited & Pure Investor Networking Opportunities

3) Free Trial of Passive Investor Accelerator eCourse

Join Our Community!

Free 15 minute
Strategy Call

*No sales pitch. Period.