Daniel Goodenoughis the author of the recently released book of fiction, The Caravan of Remembering, A Roadmap for Experiencing the Awakening of Your Life’s Mission. He has been a professional musician, research scientist, and graphic designer. In the past 30 years, he has taught thousands of students through The Way of the Heart program to discover their authentic life’s path, and to walk that path in the world. Recently, he has beenconsulting with companies to help them do business differently, responding to the today’s changing business environment with mindfulness, integrity, and heart.
Trapped in his life as a designer in Chicago that is both meaningless and safe, David hears a call he can’t resist to enter Caravan, a timeless, mystical world where he travels with mentors and other seekers to find his life’s meaning. Tools for the journey, including journaling and immersion in life’s story, are embedded in this rich tale, grounded in the author’s 30 years of working with life mission seekers. A series of questions in the back of the book helps readers apply what they’ve learned to their own lives.
The Caravan of Remembering: A Roadmap for Experiencing the Awakening of Your Life’s Mission.
www.caravanofremembering.com
www.thewayoftheheart.com
Topics discussed:
What is life’s mission, and why is it important in our lives?
How can we can discover our authentic life’s mission?
How can we answer the questions: “What did I come here to do, embody, and serve? Why am I here? Who am I called to become?”
How can becoming aware of our life’s mission help us to make better choices in today’s changing work environment, where young people may have up to 16 different careers during their lifetime?
How can we conduct business differently, with mindfulness, purpose, and respect for each other and the environment?
How can new ways of doing business actually lead to greater financial success? (Daniel has examples of this.)
Article Link: Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer
For a free electronic version of my bestselling book in 12+ categories text the word “ebook” to 587-317-6099.
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club
Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math!
________Here are the Show Notes________
Is dealing in Cryptocurrency dangerous?
Bitcoin grew in value by 1,000% in 2017.
Ripple was the best performing crypto, which had gains of 36,018% last year due to its ease of use. Each coin of Ripple is worth a small fraction of a Bitcoin. The technology makes it easier for banks, payment providers and businesses to send payments globally. They promise to deliver an experience that is instant, traceable, and inexpensive.
NEM is an enterprise blockchain with “smart assets.” It can also be used to manage things like currencies, financial instruments, supply chains, and notarizations. Think how eBay or Amazon takes data from UPS or USPS to track your packages, but a lot bigger.
Other Cryptos:
Ardor
Stellar
Dash
Ethereum (2nd biggest Cypto)
Golem
Litecoin (getting in mainstream vernacular)
BitcoinLearningCenters.com by Andy LaPointe
Mr. LaPointe created this complete bitcoin learning system from the ground up!
You will learn practical insights into this global phenomenon. By the end
of the interview, you will also have a practical understanding of
cryptocurrencies, blockchain technology and Bitcoin.
The information that Andy LaPointe will share is entertaining, insightful and easy-
to-understand. No matter who you are or your background, the information he’ll
share will help anyone to get started with cryptocurrencies today.
You listeners will learn:
– What is a Blockchain?
– What is Bitcoin?
– What is cryptocurrency?
– How blockchain and Bitcoin are related.
– How to determine if investing into cryptocurrencies is right for you.
– What are some of the misconceptions about Bitcoin, cryptocurrency
and blockchain.
– How to create the right cryptocurrency portfolio for you and your
financial future.
– And much more!
ABOUT THE AUTHOR:
Prior to getting involved with blockchain technology in 2013, Mr. LaPointe spent 15 years in the corporate world as a Registered Investment Advisor (RIA), Series 7 Stockbroker and Mutual Fund Wholesaler. He offers deep knowledge of the financial markets, blockchain technology, asset allocation, risk tolerance and cryptocurrency.
Andy LaPointe lives in Northern Michigan and is available for interview by calling 1-231-676-0643 (Eastern Standard Time) or email: [email protected]
– Instant Availability
Or visit: www.BitcoinLearningSystems.com
SPC followers are typically younger than 30 or older than 35. My observation is that when people have kids, that takes all precedence.
Launch 2019 with a 50-minute goals brainstorming session.
(we will not be talking real estate investing – the second half of the presentation will be our 2018 Quarterly recap – this will likely take us another hour… please stay if you can or listen on slient)
Here is the editable worksheet to follow along link
Topic: https://simplepassivecashflow.com/2019-launch/
Time: Jan 5, 2019 9:00 AM Pacific Time (US and Canada)
Here are some shallow things that I am shooting for in the next two years…
DO NOT READ BELOW THIS LINE!
____________________________________________
5 things you accomplished in 2018?
Move around… do 10 push up, jumping jacks, squats!
5 more things you accomplished in 2018? Reflecting and celebrating the wins in 2018
Top 3 things that were impossible?
What did you do to make those three things possible?
[Health: Get to 155lbs]
[Wealth: Get rid of all turnkeys, do fund]
[Relationships: Create community]
[Personal (skill, hobby, enjoy?): Find something new and fun]
On the last day of 2019… I will be immensely satisfied when I…
[Get down to 155 lbs and raised $3M in fund]
If it does not scare you bit… Its not high enough.
If you accomplish it what will it give you?
[A level that I can maintain and focus on quality.]
In TEN YEARS… I will be immensely satisfied when I…
[$25k passive a month with still being able to interact with a person a day.]
“We over estimate what we can do in one year and underestimate what we can do in ten years” -Tony Robbins
5 things you did NOT accomplished in 2018?
[Weight goals
Find a new hobby outlet
Operate in a less frantic mode]
Why not?
1) Disconnect
2) surrogate to accomplish the same why
3) used the wrong strategy
4) lacked knowledge/resources/people
5) you took the easy way
6) crabs in a bucket (peer group)
Creating the plan…
Break down the goal in four chunks:
1) Complete routine of activity 3 days a week
2) Evaluate progress in March 1
3) Possible add 4/5th day of activity
4) Evaluate progress in June 1 and at that point address diet
3 People hack: 1 person above you, at your level, and below you that you mentor
Setup environment
Four tendencies: upholder, rebel, questioner, obliger
Rewards
Taking action
Scheduling in the calendar (not recurring cause it won’t be special)
Every two weeks review big goals
Would you like an accountability partner?
Most of you folks are hard-charging achieving types who listen to my podcast at 2X speed. For once you need to stop that just for this exercise.
Set the timer for 20-40 minutes and get into the right State.
Getting into this State is critical. Music, a little wine, whatever floats your boat…
Get a pen, paper, (or your computer/mobile device) and a quiet space and here we go…
The group coaching is something that I have been trying to put together a couple years now after I accumulated a lot of content and got a feel for coaching students these past few years in a one-on-one setting – see SimplePassiveCashflow.com/coaching
I’m code naming this project, “The Journey to Simple Passive Cashflow” and it will consist of:
1) 27 weeks of curated content with concepts building on top of each other
2) Participants go through those modules together and are able to interact on the Bi-Weekly Call and the Private Facebook group in a “group study” environment
3) Bi-Weekly hour power calls switch between the topics of a) Acquiring you direct investment and b) more high-level wealth building concepts and syndication education
It’s going to be a really cool format where people take the journey together. Think like a Fraternity/Sorority without the weird stuff. When I was going through programs it was most beneficial to connect and climb the ladder with quality people. Who knows someone of your Cohorts might do a deal together or become lifelong friends or accountability partners.
1) Currently open for investors – 101-Unit Class C in Gulfport MS
2) 30% – MFH Apartment
3) 90% – Finally a Non-MFH fund syndication (where I do the admin/accounting) to lower costs and get higher prefs and lower minimal investments. Q2 2019
Current investors in past deals let’s meet up when you are in Hawaii. Non-investors you can still kick it with Lane
The Hui Deal Pipeline Club is a free investor club where I filter investments and underwrite the numbers and partners myself. Unlike other investor lists and groups, my investors have personal access to me and know that I personally have skin in the game investing alongside with my investors.
We have acquired over $155 Million dollars of real estate acquired by syndicating over $13 Million Dollars of private equity since 2016.
Track Record of success:
15 Apartments Buildings Purchased, 2 Manufactured Home developments, and an Assisted-Living Facility
2,100+ total units
10 US Markets – AL, GA, IN, OK, LA, IA, TX, WA, PA, MO
Started investing in 2009 – 9 years of experience
Countless Mastermind and Mentorships in the Live & Virtual clubs through the education platform at SimplePassiveCashflow.com
2,600 investors and 100 new Kool-Aid drinkers every month!
Erin Lowry (https://brokemillennial.com/) is the author of Broke Millenial, a book about how to stop scraping by and start getting your financial life in order.
She talks about how she learned about finances at a young age, how she gave up her dream school so she could live her dream life, and how living in New York inspired her to write her book, Broke Millenial.
“Invest your spare change,” may be a catchy line but you really can’t invest your spare change to wealth. It has to be more than spare change.
In the financial world, you are above nothing. Just because you have a college education doesn’t mean that is your way out of financial difficulty. You also need to be prepared to take non-professional jobs or jobs that might be below you.
Just like in any financial goal you have to figure out how to take a high-level idea and break it down into smaller parts. Think of whatever your long-term financial goals are and work backwards to break it down into something that is actually more achievable. A lot of people in their early twenties have beautiful, lofty dreams but no tangible steps on how to get themselves there.
Podcasts are great sources of information.
Saving is important but earning more is bigger. To earn more is a key part of building wealth.
The biggest thing when it comes to feeling in control of your money is that you have to identify what you truly value. Don’t allow other people to dictate where you should spend your money.
Fundamentals – Bonus Depreciation via Cost Segregation Studies with John Collins
Since Mr. Trump enacted new tax law, 100% Bonus Depreciation creates significant tax benefits in the acquisition year.
In one of my apartments $3M, 52-unit building is looking to get more than $266K in tax savings (at 37% tax rate) in his first year of ownership.
On syndications, depreciation is distributed to investors on the K-1 Form.
Not making any promises as depreciation amount is primarily based off building specifics and amount of leverage used in a deal but here is a real-life example from a $50K investment in the first year K-1 in 2018 utilizing cost segregation.
Passive Losses!
Note this is a Class C apartment deal
Basics
One of the cool things about investing in real estate is that the properties create a paper loss. For single family homes, you can take 1/27 the value of the property (minus land value because that does not devalue over time) per year for 27 years. This is what is shown below. A cost segregation juices this deduction as it puts the asset on a more aggressive depreciation schedule which front-loads as much depreciation as the tax code allows. This is one of the reasons why bigger deals are better because they can support a 5-8K cost segregation study.
Paper losses due to depreciation!
What is Cost Segregation?
Cost Segregation is the identification of building components and reclassifying the tax life on each of those components. Typical components that can be reclassified include a building’s non-structural elements, such as carpet, decorative lighting and trim, dedicated electrical and plumbing, and security systems; exterior land improvements, such as landscaping, curbs, sidewalks, fencing, and signage; and indirect construction costs, such as architect and engineering fees and construction permits.
Commercial properties establish a 39-year depreciation schedule, and residential properties establish a 27.5-year depreciation schedule. For example think of a 3 bedroom single family home in Birmingham, Alabama that is worth $100,000. Of that approximately $65,000 is determined to be the building value and $35,000 is determined to be the land value. Each year you can deduct 27.5th of the building value which is about $2,363 a year that can once again offset income gains. This can be taken for the next 27.5 years until all the value on paper is depleted. Unfortunately, you cannot deduct the land.
However, the IRS assigns a tax-life to each of the individual components.
Most components that qualify for accelerated depreciation can have their tax life reclassified to either 5, 7, or 15 years:
5-year tax-life components: tangible, personal property assets (carpeting, decorative lighting and trim, dedicated electrical and plumbing, and security systems)
7-year tax-life components: all telecommunication related systems (cabling, telephone, etc.)
15-year tax-life components: land improvements (landscaping, curbs, sidewalks, fencing, and signage)
What is a Cost Segregation Study?
A Cost Segregation Study is a strategic, tax-saving tool that can be used by companies and investors who have constructed, purchased, expanded, or remodeled any kind of commercial real estate (including 1 to 4 unit residential rental properties). The study allows the owner to take advantage of accelerated depreciation deductions and defer federal and state income taxes on the reclassified building components mentioned above.
During a Cost Segregation Study, components of a specific property or leasehold improvement are identified and reclassified for depreciation over a shorter time (5, 7, or 15 years). For example, 30% to 90% of the total electrical costs in most buildings can qualify for 5 or 7-year depreciation. The result of a Cost Segregation Study is that a property owner’s tax obligation is reduced and his cash flow is increased.
Is Cost Segregation something new?
Cost Segregation is not new. On the contrary, it has been in existence since 1954 when the IRS allowed for certain personal assets to be accelerated into a shorter life class. However, it wasn’t until Hospital Corporation of America sued the IRS in 1997, and won, that the IRS revisited the issue of accelerated depreciation. The IRS ruled that property qualifying as tangible personal property under the former Investment Tax Credit (ITC) rules would also qualify for purposes of federal income tax depreciation under MACRS (Modified Accelerated Cost Recovery System).
The IRS Chief Attorney wrote a memo saying, “. . . Cost Segregation, for it to be properly applied, had to involve those with competencies in architecture, engineering or construction and/or construction techniques, in order for personal property assets to be accurately identified and segregated.” As a result of this memo, Cost Segregation became a viable tax-saving strategy allowed by the IRS.
What type of real estate is eligible?
Commercial real estate (including 1 to 4 unit residential rental properties) eligible for Cost Segregation includes buildings that have been purchased, constructed, expanded, or remodeled since 1987. A study is typically cost-effective for buildings purchased or remodeled at a cost greater than $100,000. A Cost Segregation Study is most efficient for new buildings under construction, but it can also uncover retroactive tax deductions for much older buildings.
What are the steps involved in the process?
From start to finish, the Cost Segregation process can be broken down into the following steps:
Engage a reputable Cost Segregation firm that utilizes engineers and architects trained in Cost Segregation and its application to the proper allocation of assets.
The engineer determines what documents are available (e.g. planning, construction, invoices, appraisal, and current tax depreciation) for reference and referral.
The engineer then sets a schedule for surveying the subject property and gathering the available documents for review prior to arrival at the subject property.
For those documents that are unavailable, time is then scheduled into the Cost Segregation process for document recreation using known industry standard costing data (Marshall & Swift and/or RS Means costing publications). After all necessary documents are acquired, it takes about 4 to 6 weeks to finish the process.
The site survey is executed and completed. Time varies for each survey, but it can be completed within as little as an hour. During the survey, measurements are taken and all areas are photographed for IRS verification and substantiation of asset values.
The engineer returns to the office and “crunches the numbers.” This is when all documents are reviewed in detail, assets are verified and measured against known costing data, and asset reallocation is applied.
A review committee then examines the results of the analysis completed by the engineer of record to verify its veracity and confirms it meets and exceeds IRS guidelines per the Cost Segregation Audit Techniques Guide.
Once approved, the study results are compiled into a final report that includes: all IRS tax code to substantiate the reallocated assets, spreadsheets identifying all assets categorized according to their building codes, representative photographs of the reallocated assets, and the engineer’s credentials for IRS review.
Final report is issued. Digital copies are emailed to the client and the CPA of record for application to the client’s tax return.
Why bother? I’ll eventually get the deduction.
As investors, we like paper depreciation to occur earlier because that offsets gains earlier and gets more money in our pocket earlier. Just like you give a mouse a cookie…. Give an investor a dollar early and… they will turn em and burn em.
In other words, you are not creating more depreciation but you are shifting it earlier to take advantage of the time value of money concept.
On the project level in a single asset LLC arrangement the more you can lower your tax liability the more you can significantly increase your cash flow and create more value for investors.
A Cost Segregation Study in effect gives you an interest-free loan from the government for the first 15 years, which you will then repay interest-free over the remaining 25 years. Wouldn’t you rather have your money? There are also advantages to doing a study if the building is going to be sold (via 1031 exchange) or if the owner of the building dies.
Does the Cost Seg need to get done this year (Dec 2018) or do we just need to acquire in this year (2018)?
For bonus depreciation, we just need to acquire. The Cost Seg can be completed in the next year (2019).
How much will I save on taxes?
Most Cost Segregation firms will perform a free analysis if you provide your basic property information and tax rate. From the information you provide, they can provide a conservative estimate of the accelerated benefits you can expect, as well as their fixed fee proposed for the final study.
Typically, tax savings from 5% to 10% of the building’s original tax-basis are generated, but there are instances where it can be substantially more. Each property and circumstance is unique, so it requires a case-by-case approach to give you a definitive answer.
How much-accelerated depreciation can I get?
Certain types of commercial property can be grouped together to give us an idea of the percentage of those types of buildings eligible for accelerated depreciation. Your results may be greater, or less than those quoted here, but in general, property that falls into one of the following categories is most likely to result in accelerated depreciation within the specified ranges.
Commercial Property Types:
Apartment Buildings 15 – 25%
Dental/Medical 30 – 60%
Health Care 25 – 65%
Heavy Manufacturing 30 – 80%
Industrial 25 – 70%
Light Manufacturing 20 – 45%
Office Buildings 15 – 25%
Research & Development Facilities 30 – 75%
Restaurant 15 – 30%
Retail Centers 10 – 25%
Senior Living Facilities 15 – 30%
Warehouse 5 – 15%
Does Cost Segregation have other benefits?
Yes. Cost Segregation can provide additional tax benefits. It can reveal opportunities to reduce real estate tax liabilities and identify certain sales and use tax savings opportunities. Under certain circumstances, segregated assets may qualify for a special bonus depreciation allowed by multiple tax reconciliation acts enacted by Congress. Additionally, a Cost Segregation Study can
Maximize tax savings by adjusting the timing of deductions. When an asset’s life is shortened, depreciation expense is accelerated and tax payments are decreased during the early stages of a property’s life. This, in turn, releases cash for investment opportunities or current operating needs.
Create an audit trail. Improper documentation of cost and asset classifications can lead to an unfavorable audit adjustment. A properly documented Cost Segregation Study helps resolve IRS inquiries at the earliest stages.
Capture retroactive savings. Since 1996, taxpayers can capture immediate retroactive savings on property added since 1987. Previous rules, which provided a four-year catch-up period for retroactive savings, have been amended to allow taxpayers to take the entire amount of the adjustment in the year the Cost Segregation is completed . . . this alone is huge. This opportunity to recapture unrecognized depreciation in one year presents an opportunity to perform retroactive Cost Segregation analyses on older properties to increase cash flow in the current year.
Lower property insurance premiums. Since it generally costs less to insure personal property, versus real property, building components reallocated as personal property should reduce your insurance costs as well.
How much does a Cost Segregation Study cost?
On average, the total fee will generally fall between 5% and 20% of the estimated Net Present Value tax savings shown on your free analysis. This can be impacted by how large or small the real estate project is. In addition, the location, accessibility, and quality of the records and documents impact the ultimate cost. Minimum fees can be as low as $2,000 for small projects, and some firms GUARANTEE a minimum of 500% ROI (fee vs. tax recovery) on projects over $500,000.
How long does a Cost Segregation Study take?
The time that a Cost Segregation Study takes depends on the size of the project and the completeness of the documentation that you can supply. Generally, it takes about 4 to 6 weeks from the time the appropriate documentation is received and recreated.
What is required of me to have a study done?
You need to provide as much of the original documentation pertaining to planning, construction, and current tax depreciation as you can. This could include a complete set of construction plans, current tax depreciation records such as tax returns, building cost budget information, final AIA (American Institute of Architects) application and a document of certification for payment or other cost information, change orders, direct or indirect costs paid by the owner that are not included in other documents, and other information depending upon the project.
What if I lack some of the needed documents?
Even if you lack some of the necessary documentation, a study can still be performed for you. Construction, engineering, and other specialists will do an extensive site visit. They will measure and estimate using currently accepted costing techniques and pricing guides (such as the IRS-recommended costing publications Marshall & Swift and RS Means) to determine the costs that qualify for shorter recovery life periods.
Can’t my CPA do a study for me?
CPAs are not qualified according to the IRS guidelines. However, most Cost Segregation firms will gladly work with them on a consulting basis to complete the work for you. Remember, the IRS Chief Counsel issued a memo that made it clear what constitutes proper “methodology” in applying Cost Segregation, and it must be done by people who are competent in architecture, engineering or construction and/or construction techniques. See “Is Cost Segregation something new?” above.
Will a study increase the chance of an audit?
A study conducted by a reputable Cost Segregation firm should strictly adhere to the IRS Cost Segregation Audit Techniques Guide. The type of study most firms perform actually decrease your chances of an audit because the study places you in Internal Revenue Code Tax Compliance. However, be aware there are six different Cost Segregation methods allowed by the IRS, and not all are of equal merit. There is currently no standard method, and there is still some ambiguity about which method is best. If you have heard conflicting information about what is, and is not possible regarding Cost Segregation, this is probably why – it depends on which method is being used.
Will I be assisted in the event of an audit?
A reputable Cost Segregation firm can assist you in the event of an audit. They will focus on doing the Cost Segregation Study to create documentation and support for conclusions so that these are easily communicated and resolved with the IRS. In fact, you should expect a final report that is “all inclusive.” It should quote specific Internal Revenue Codes related to the reallocated assets. Additionally, it should provide photographic evidence of these same assets for complete substantiation of the assessment.
Conclusion:
The Pro’s
Reduction in tax liability
The deferral of taxes
Bump in up front cash flow
The Con’s
Costs typically range $4,000-$8,000, depending on property size/asset value
Accurate and complete documentation is required and requires effort to collect
Cost segregation is not feasible below $100,000 property value
Cost Segregation studies is one of the easiest and quickest way to squeeze a little extra profit out of an investment. If you played race video games in your youth (or still do) it’s like paying for the inexpensive computer chip upgrade, its a no brainer. If you don’t get that reference, its “low hanging fruit.”
If this is a concept new to you, you may be able to go back to previous years taxes and get back some benefits this year. Often times getting a quote is free and quick.
Segregation Holding LLC performs Cost Segregation Studies in all 50 states and throughout the globe for US tax-paying citizens owning investment property outside the US.
SimplePassiveCashflow.com/133va
David from Military to Millionaire
Currently still enlisted in Army and spent some time as a recruiter
Don’t blow you money on a nice car
VA Loan – 0% down home loan for a primary residence with no private mortgage insurance (PMI)
You can buy up to a 4 unit
Move and buy at each difference duty station
Generally, 410K loan is the max with exceptions for high price areas like Hawaii
Relocation benefits
Do you stay enlisted in the military
Don’t underestimate the tax-sheltered allowances and perks
A pretty impressive event. Its where 2000 financial bloggers, you-tubers, and podcasts this year gathered around all this money.
In 2006, I started reading financial blogs. Sole of my favorite was getrichslowly, Wallet Hacks, and of course mr money mustache. FinCon started in 2011 with just a couple hundred people.
Real estate investing is a minority. 95% of people are debt adverse and about the 4% rule. Buying cash so so debt. Living small is selfish? Make 150k a year and retire when you are 35…
The Millionaire Next Door book is not the type of lifestyle I would like to live.
I am cool with how it is enough to be happy and content.
Other Findings:
New investment account that incorporates mobile interfaces and suto-AI. Mint app has click to invest and banking apps have click to refi. It’s a little dangerous.
A cool 5% instant liquidity online savings bank that invests in inventory loans. Let me know and I can connect you with that as I try to do more due diligence on my own.
Liberty health share – religious-based health insurance
Side gigs – consistent theme from high performing growth mindset W2 employees who are not getting fulfillment at their bureaucratic day jobs.
Interviews to follow in video…
Please share this with friends because if you don’t soon you won’t have any friends to have mid-day lunch with when you not doing anything
Article Link: Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer
For a free electronic version of my bestselling book in 12+ categories text the word “ebook” to 587-317-6099.
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club
Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math!
________Here are the Show Notes________
I worked with Matt’s team way back when in 2014 buying turnkeys. Simplepassivecashflow.com/turnkey Since then it is interesting as times change how his strategy has changed.
We just completed the last deal for an Mobile home park. Which is a little different than apartments.
Please leave an iTunes review – Help fight negative one-star review
Earning $30,000/mo through single-family homes and seller-financed notes.
Epic Real Estate started selling turnkey properties in 2009.
Built successful portfolio, but returns lowering. However, real estate always a good purchase to buy and hold long-term.
Amortization, depreciation, appreciation, and leverage (wealth multiplier) all make real estate investing attractive.
Focusing more on lease options now for C- and D-class properties to rent properties and eventually sell them to tenant.
Went from 7-figure year as a musician to bankrupt at 34. Found real estate mentor at grocery store and life changed.
Real estate is the final frontier for the average person to have a legitimate shot a creating wealth.
Paid $22,000 for mentorship in 2006. Everyone thought it was insane, but helped him get started.
People who made it were ready for it. “Move faster than your doubts.”
Find the deal first and then the money will find you.
Authored book “Do Over” that chronicled struggles and how he built his real estate empire.
Be intentional with who you surround yourself with. Peer pressure works.
Always be looking for a coach and outgrow them. Results accelerator.
Spends $100,000/year on masterminds – worth being around the right people of doers.
Goal was to increase passive income and decrease expenses. In 4 years became “retired,” but wants to be wealthy; not just financially independent.
Bookkeeper should be the first role you should outsource. Transaction coordinators and marketing person also helpful.
Hardest part of the business is to find the deal and get into contract.
Visit www.epicrealestateinvesting.com to check out the Epic Real Estate Investing Podcast.
Article Link: Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer
For a free electronic version of my bestselling book in 12+ categories text the word “ebook” to 587-317-6099.
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club
Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math!
________Here are the Show Notes________
Estate planning
Guests I have are giving insights but always hire your own person because these things require personalization
I try to bring guests on and ask the questions that I think you folks would ask.
I believe you need to have a basic level of knowledge before engaging with a professional
For those of you who are in the Mastermind and my current investors you will hear about my Fort Knox strategy which makes LLC enitites creation look like childs play
Email me any questions to feature on the next ask Lane podcast or monthly email newsletter
Andrew L. Howell is the Co-Founder of the law firm, York Howell, with a focus on asset protection.
Many useful tools out there, but where do you as an investor fall on the asset protection spectrum?
Two fundamental risks: 1) Asset-based risks 2) Direct-based risks
Real estate considered as “hot” assets because liability risks are greater – more than equity.
Liabilities both inside and outside the asset.
Typically form a holding company to hold limited liability companies to abate asset- and direct-based risks.
Holding properties in one LLC basket is good, but still risks if something happens in one property.
Concentrate on family protection first (trust, wills, etc.). Then move to next level of asset protection planning.
If own property out-of-state, advise on setting up a parent LLC in states with charging-order protection.
Tough LLC rules and taxes for poor California residents!
Need to do your due diligence on reviewing PPM’s – especially who you are doing business with.
Asset does not create liability risk for LP’s; only GP’s.
If you get personally sued, can go after your MFH syndications and other assets even as LP.
6% of current generation feels obligated to give back to kids. Instead of giving, create a bank.
Article Link: Text “simple” to 314-665-1767 to download the Hui Google Drive files and the 2018 Rental Property Analyzer
For a free electronic version of my bestselling book in 12+ categories text the word “ebook” to 587-317-6099.
Please help the show by leaving a review: http://getpodcast.reviews/id/1118795347
Join the Hui Deal Pipeline Club! SimplePassiveCashflow.com/club
Pardon the grammar – I’m an Engeneer, Enginere, Engenere… I’m good with math!
________Here are the Show Notes________
Jake and Gino have a great podcast and definaetly fit in the category as guys who are growing and doing things right
Let’s work together to redirect money from the Wall-Street casinos and corrupt financial institutions…To help the endangered ‘Middle Class’ savers find safer, more profitable investments in Main Street opportunities benefiting local communities. Join Hui Deal Pipeline Club and check out the sSimplePassiveCashflow.co/mission
Gino Barbaro from Jackandgino.com who focuses on MFH real estate.
Group owns 848 units valued at >$50 million. Expecting to go up this year.
Took 5 years to get $25K-30K/month in passive cash flow.
Fumbling around in the beginning with smaller cash flow amounts, but snowballs over time.
Came from the corporate world to managing a family restaurant. 2008 transitioned to real estate to make better use of time outside of the kitchen.
Highly recommend reading “The E-Myth” by Michael Gerber. Need a visionary, manager, and technician for any business.
Believes you need a Connector, Executer, and the Backbone. Can’t do all 3 – pick 1 or 2 and hire out.
95% of blocks are internal. The rest are external. So, focusing on resolving limiting beliefs and get a life coach.
Google Tony Robbin’s 6 human needs. Have to continue to grow and contribute in a large way.
Relocated to Florida and aiming to obtain $40K/month by end of this year.
Have lifestyle work for his business; not his business work for his lifestyle.
Becoming more efficient by hiring a VA and Digital Marketer for jackandgino.com. Wants to spread content and message; not work on menial tasks.
Focus on 1 or 2 niches for real estate and become an expert at it.
MFH has more barrier-to-entry v. stocks, crytocurrencies, etc. The more people in it, the less profit margin there will be.
Share weekly successes. It’s not bragging, it inspires people and surround yourself with the right people.
Be present in the moment. When you’re at work, with family, etc. focus on dealing with that situation.
Visit www.jackandgino.com. Also on FB, LinkedIn, Twitter, and Instagram. E-mail works too: [email protected]
