Ep #1,015 - Tax Expert Explains How To Reduce Taxes (Legally)

[00:00:00] [SPEAKER_01]: Welcome. This is the Lifetime Cash Flow Through Real Estate Investing podcast.

[00:00:06] [SPEAKER_01]: This is where you'll learn strategies to help you achieve lifetime financial freedom through real estate investment.

[00:00:12] [SPEAKER_01]: Your host, Rod Khleif, has owned over 2,000 homes and apartments.

[00:00:17] [SPEAKER_01]: And he brings experts in all aspects of real estate investment and management onto the show.

[00:00:23] [SPEAKER_01]: Now, here's your host, Rod Khleif.

[00:00:26] [SPEAKER_02]: Welcome to another edition of Lifetime Cash Flow Through Real Estate Investing.

[00:00:30] [SPEAKER_02]: I'm Rod Khleif and I am thrilled that you're here.

[00:00:32] [SPEAKER_02]: And you're going to get tremendous value today from the gentleman I'm interviewing.

[00:00:36] [SPEAKER_02]: His name is Tommy Thornburg, and he's the president of Prime Corporate Services.

[00:00:40] [SPEAKER_02]: And to give you an idea of what they do, well, they've started in 2012

[00:00:44] [SPEAKER_02]: and they have started 150,000 businesses, a corporate lead like LLCs for example.

[00:00:51] [SPEAKER_02]: They've done tens of thousands of tax returns.

[00:00:53] [SPEAKER_02]: So they provide services to people like my warriors, my clients.

[00:00:58] [SPEAKER_02]: And so we're going to talk about a lot of strategies.

[00:01:01] [SPEAKER_02]: In fact, I just had him speak at our warrior event and add value to my warriors this last weekend.

[00:01:06] [SPEAKER_02]: We had a warrior only event with a few hundred of my coaching students, my warriors.

[00:01:09] [SPEAKER_02]: And he added a ton of value there.

[00:01:12] [SPEAKER_02]: It was a line of people waiting to talk to him after he was done.

[00:01:14] [SPEAKER_02]: So you definitely want to plug in and listen to this episode.

[00:01:18] [SPEAKER_02]: Welcome to the show, brother.

[00:01:19] [SPEAKER_03]: Thank you. Thank you for having me. Amazing event. That was fun.

[00:01:21] [SPEAKER_02]: Oh, thanks. Thanks. Thanks. Yeah, it was fun.

[00:01:24] [SPEAKER_02]: And you know, he's got the tagline, it's not what you make, it's what you keep.

[00:01:28] [SPEAKER_02]: And that will help you make it. He can help you keep it.

[00:01:31] [SPEAKER_02]: So yeah, so maybe give us a little more background.

[00:01:34] [SPEAKER_02]: I didn't, you know, probably butchered the bio there.

[00:01:37] [SPEAKER_02]: But if you want to just tell us a little bit more about what you do

[00:01:40] [SPEAKER_02]: and then we'll drill down on some of these things, huh?

[00:01:44] [SPEAKER_03]: Yeah, I appreciate it. It was awesome.

[00:01:46] [SPEAKER_03]: When we first started Prime Corporate, we just noticed there's a hole in this market

[00:01:51] [SPEAKER_03]: and the reason for it is when you go, you've experienced this, I'm sure

[00:01:55] [SPEAKER_03]: you go talk to an attorney and you get it depends or it's really heavy on

[00:02:00] [SPEAKER_03]: the asset protection side. And when you go ask the same questions to your accountant

[00:02:05] [SPEAKER_03]: to your CPA, a lot of times it's the path of least resistance to file that tax return.

[00:02:11] [SPEAKER_03]: So that's our goal is we've got a full team of CPAs and accountants.

[00:02:15] [SPEAKER_03]: We've got a full team of attorneys, complicated questions.

[00:02:18] [SPEAKER_03]: Let's force them to find the common ground of what is best for you as an entrepreneur.

[00:02:24] [SPEAKER_03]: Because a lot of times it's not the same answer and that's our goal between entity structure,

[00:02:29] [SPEAKER_03]: tax savings, we're able to find thousands if not tens of thousands of dollars in tax savings

[00:02:34] [SPEAKER_03]: for a lot of our clients that are entrepreneurs.

[00:02:37] [SPEAKER_02]: Well, we're going to drill down on that for sure.

[00:02:39] [SPEAKER_02]: Now on the entity structuring side, I mean guys, you know, this business really is driven by LLCs,

[00:02:46] [SPEAKER_02]: limited liability companies. You know, you're not going to buy a property and put it in your own name.

[00:02:50] [SPEAKER_02]: You're not going to put it in a corporation.

[00:02:52] [SPEAKER_02]: You're not going to put it in a partnership anymore.

[00:02:54] [SPEAKER_02]: It's going to go into an LLC and you need help forming those LLCs.

[00:02:57] [SPEAKER_02]: And you know, if you come to one of my boot camps, you know, one of the pieces I do is on entity structuring

[00:03:02] [SPEAKER_02]: and I'll show a chart where you've got the property being owned by an LLC.

[00:03:06] [SPEAKER_02]: You've got, you know, branding company LLC in some cases, you've got a holding company LLC.

[00:03:12] [SPEAKER_02]: So there's a whole structure of different LLCs that are needed in this business.

[00:03:17] [SPEAKER_02]: And you know, I know you guys also help with business credit development where you can form an LLC

[00:03:22] [SPEAKER_02]: and get some business credit, which is really more in the single family space.

[00:03:25] [SPEAKER_02]: But still it's a real value add, you know, component of what you do.

[00:03:31] [SPEAKER_02]: So you can form the LLCs but let's talk about the taxation.

[00:03:36] [SPEAKER_02]: I think that's really, I know that that piqued a lot of people's interest at my warrior event.

[00:03:40] [SPEAKER_02]: And you know, most CPAs as we all know, basically drive using the rear view mirror.

[00:03:48] [SPEAKER_02]: I mean, they're basically looking at the past.

[00:03:50] [SPEAKER_02]: They're not proactively planning or doing anything like that.

[00:03:53] [SPEAKER_02]: Do you want to speak to what you offer in that regard?

[00:03:57] [SPEAKER_03]: Proactive versus reactive is number one.

[00:03:59] [SPEAKER_03]: You hit it right on the nail.

[00:04:01] [SPEAKER_03]: Tax planning happens throughout the course of the year.

[00:04:03] [SPEAKER_03]: And if clients can train themselves to make it a part of their business that January, February, March, quarter one, going into October, November, December.

[00:04:14] [SPEAKER_03]: That's business shopping spree season.

[00:04:17] [SPEAKER_03]: Right?

[00:04:17] [SPEAKER_03]: If you've generated income through W2 through 1099 through real estate, that's your opportunity to be able to reinvest to better your cash flow positioning for the future.

[00:04:28] [SPEAKER_03]: And that's a lot of what we offer, whether you want monthly calls, quarterly calls, one annual call, whether it be bookkeeping, whether it be organization, whether it be trackers.

[00:04:39] [SPEAKER_03]: A lot of it's just muscle memory.

[00:04:42] [SPEAKER_03]: Similar to a lot of the warriors that I was able to meet.

[00:04:45] [SPEAKER_03]: A lot of them said the same thing.

[00:04:47] [SPEAKER_03]: Follow what Rod has to say and the stuff works.

[00:04:49] [SPEAKER_03]: There's no secret behind that.

[00:04:51] [SPEAKER_03]: It's the same thing for us from a tax standpoint.

[00:04:53] [SPEAKER_03]: We've seen the mistakes.

[00:04:54] [SPEAKER_03]: We've seen the wins.

[00:04:55] [SPEAKER_03]: If you follow the process, if you proactively plan and you decide where you want your dollars to go to better your future, your kids future, your grandkids future.

[00:05:07] [SPEAKER_03]: That's what really creates legacy long term.

[00:05:10] [SPEAKER_02]: Well, let's talk about some, I mean, you brought up some of the different strategies that people can use to minimize their taxes.

[00:05:17] [SPEAKER_02]: And some of you guys may have heard of some you may not.

[00:05:20] [SPEAKER_02]: I mean, of course in our world we've got cost segregation and bonus depreciation and stuff like that.

[00:05:25] [SPEAKER_02]: But talk about some of the stuff you talked about at the warrior event this last weekend.

[00:05:29] [SPEAKER_03]: Yeah, three strategies that I shared with everyone.

[00:05:32] [SPEAKER_03]: The first one are health savings accounts.

[00:05:36] [SPEAKER_03]: Health savings accounts are amazing.

[00:05:38] [SPEAKER_03]: It's one of the only deductions that you get triple the benefit on.

[00:05:41] [SPEAKER_03]: And you can put if you're single, 4,000 and some change.

[00:05:45] [SPEAKER_03]: If you're married, 8,000 and some change.

[00:05:47] [SPEAKER_03]: That number changes every year.

[00:05:50] [SPEAKER_03]: But you put the money in, it's deductible.

[00:05:53] [SPEAKER_03]: You take the money out, it's deductible.

[00:05:55] [SPEAKER_03]: You pay medical expenses with it, it's deductible.

[00:05:59] [SPEAKER_03]: So all it works as is a savings account.

[00:06:02] [SPEAKER_03]: Very, very simple, easy way to save thousands of dollars in taxes.

[00:06:07] [SPEAKER_02]: I actually should be doing that myself.

[00:06:09] [SPEAKER_02]: Yes.

[00:06:09] [SPEAKER_02]: Because you know, you've got medical expenses all the time.

[00:06:12] [SPEAKER_02]: I'm old as dirt.

[00:06:13] [SPEAKER_02]: So of course I've got stuff going on.

[00:06:15] [SPEAKER_02]: So what else?

[00:06:17] [SPEAKER_03]: The second strategy that I shared was paying your children.

[00:06:20] [SPEAKER_03]: This is a lot of the line afterwards that you were talking about.

[00:06:23] [SPEAKER_03]: This is a lot of what that was.

[00:06:26] [SPEAKER_03]: I've got two little girls, three year old and a one year old.

[00:06:29] [SPEAKER_03]: And both of them will make $14,500 this year.

[00:06:34] [SPEAKER_03]: Really?

[00:06:35] [SPEAKER_03]: As long as it stays under the standard deduction,

[00:06:37] [SPEAKER_03]: you're tracking what it's for.

[00:06:39] [SPEAKER_03]: They're doing legitimate business and legitimate work.

[00:06:42] [SPEAKER_03]: They're cleaning the office.

[00:06:44] [SPEAKER_02]: What the heck is a three year old doing?

[00:06:45] [SPEAKER_03]: Well, they're models.

[00:06:46] [SPEAKER_03]: Oh, they're models.

[00:06:47] [SPEAKER_03]: They look like their mother.

[00:06:49] [SPEAKER_02]: Thank God, right?

[00:06:50] [SPEAKER_03]: They wouldn't have been models.

[00:06:51] [SPEAKER_03]: They looked like me.

[00:06:53] [SPEAKER_02]: So wow, they're models.

[00:06:55] [SPEAKER_02]: Okay.

[00:06:55] [SPEAKER_03]: But I get the business right off.

[00:06:58] [SPEAKER_03]: They don't make enough to pay taxes.

[00:07:00] [SPEAKER_03]: And we've got a lot of clients that they'll teach financial literacy to

[00:07:05] [SPEAKER_03]: their children and have them pay their expenses.

[00:07:07] [SPEAKER_03]: They'll invest it for them.

[00:07:09] [SPEAKER_03]: There's a lot of things you can do,

[00:07:11] [SPEAKER_03]: but you got to track it.

[00:07:12] [SPEAKER_03]: Got to make the transfer where we want to make it as legitimate as possible.

[00:07:17] [SPEAKER_02]: So you open a bank account in their name?

[00:07:19] [SPEAKER_02]: Yep.

[00:07:19] [SPEAKER_02]: Joint account obviously with you on there as well.

[00:07:21] [SPEAKER_02]: Yep.

[00:07:21] [SPEAKER_02]: But it's in their name.

[00:07:24] [SPEAKER_02]: You deposit less than what is it 14?

[00:07:27] [SPEAKER_02]: 146 this year.

[00:07:28] [SPEAKER_02]: 14600 in there.

[00:07:30] [SPEAKER_02]: You document what it's for in some fashion,

[00:07:32] [SPEAKER_02]: some sort of a ledger I suppose.

[00:07:34] [SPEAKER_02]: Yep.

[00:07:34] [SPEAKER_02]: And then you give it to your CPA and say this is deductible.

[00:07:37] [SPEAKER_03]: We've got really cool trackers.

[00:07:40] [SPEAKER_02]: You do it.

[00:07:41] [SPEAKER_02]: I guess you would do the tax piece at that point.

[00:07:43] [SPEAKER_02]: Yep.

[00:07:43] [SPEAKER_03]: Right.

[00:07:43] [SPEAKER_02]: Okay.

[00:07:44] [SPEAKER_03]: And I'm going to get the trackers to get to all of your warriors.

[00:07:48] [SPEAKER_03]: I had a blast.

[00:07:49] [SPEAKER_03]: It was a great event.

[00:07:50] [SPEAKER_02]: By the way, if you're driving right this down, warriorpcs.com,

[00:07:54] [SPEAKER_02]: that's how you can get access to this information with Tommy

[00:07:58] [SPEAKER_02]: and Tommy and his company and set up a call really.

[00:08:01] [SPEAKER_02]: That's how they set up a call, isn't it?

[00:08:02] [SPEAKER_02]: Just to talk about what you guys have,

[00:08:04] [SPEAKER_02]: which I'm 100% behind here.

[00:08:06] [SPEAKER_02]: So, okay.

[00:08:07] [SPEAKER_02]: So you've got the health savings plan,

[00:08:10] [SPEAKER_02]: which I'm going to look into myself.

[00:08:11] [SPEAKER_02]: Good God.

[00:08:12] [SPEAKER_02]: I can't believe I've never done that.

[00:08:13] [SPEAKER_02]: You know, my kids,

[00:08:14] [SPEAKER_02]: I don't think I can use my kids anymore.

[00:08:16] [SPEAKER_02]: They're too old, but I sure could have.

[00:08:19] [SPEAKER_02]: What else?

[00:08:20] [SPEAKER_03]: Another one that is very popular is the Augusta Rule.

[00:08:24] [SPEAKER_03]: What's that?

[00:08:24] [SPEAKER_03]: And the Augusta Rule, it started because a gentleman

[00:08:27] [SPEAKER_03]: in Augusta, Georgia, got audited for renting out his house

[00:08:31] [SPEAKER_03]: during the Masters Golf Tournament.

[00:08:33] [SPEAKER_00]: Hmm.

[00:08:33] [SPEAKER_03]: And what this rule says, it's section 280A.

[00:08:37] [SPEAKER_03]: And what it says is you can rent your house out

[00:08:39] [SPEAKER_03]: up to 14 days a year, tax-free.

[00:08:43] [SPEAKER_03]: Okay.

[00:08:44] [SPEAKER_03]: So how I implement this strategy is on the fifth of every month,

[00:08:48] [SPEAKER_03]: my business signs a rental agreement to rent out my house.

[00:08:53] [SPEAKER_03]: I go over minutes, meetings, bookkeeping, monthly goals,

[00:08:57] [SPEAKER_03]: quarterly goals, and have a set amount where the business

[00:09:01] [SPEAKER_03]: gets the ride off.

[00:09:02] [SPEAKER_03]: But I didn't rent it out enough days to take the deduction

[00:09:06] [SPEAKER_03]: or to claim the income on the other side.

[00:09:09] [SPEAKER_02]: So what are those amounts?

[00:09:11] [SPEAKER_02]: I mean, give me an idea how that works.

[00:09:12] [SPEAKER_03]: There's a really cool website.

[00:09:14] [SPEAKER_03]: It's called Peerspace.com.

[00:09:16] [SPEAKER_03]: Peerspace.

[00:09:17] [SPEAKER_03]: Peerspace.

[00:09:17] [SPEAKER_03]: P-E-E-R-SPACE.COM.

[00:09:21] [SPEAKER_03]: Okay.

[00:09:21] [SPEAKER_03]: And what I love about this website is it'll tell you

[00:09:24] [SPEAKER_03]: how much you could rent your property for on an hourly basis.

[00:09:28] [SPEAKER_03]: So if you're not renting it for a whole day, once again,

[00:09:30] [SPEAKER_03]: let's do it legit.

[00:09:32] [SPEAKER_03]: But you could also get comps through Airbnb or VRBO.

[00:09:36] [SPEAKER_03]: Okay.

[00:09:37] [SPEAKER_02]: So you justify the amount based on Peerspace

[00:09:39] [SPEAKER_02]: or some other website that rents houses by the day

[00:09:45] [SPEAKER_02]: or the hour or whatever.

[00:09:46] [SPEAKER_03]: It has to be reasonable.

[00:09:47] [SPEAKER_03]: Yeah.

[00:09:48] [SPEAKER_03]: But once again, our average client that facilitates

[00:09:51] [SPEAKER_03]: that into their business, it's an average $8,000, $9,000

[00:09:55] [SPEAKER_03]: of savings for them by making sure that they have

[00:09:58] [SPEAKER_03]: the proper documentation on an annual basis.

[00:10:00] [SPEAKER_03]: Some clients much more, but the average is $8,000 to $9,000

[00:10:04] [SPEAKER_02]: in tax savings.

[00:10:05] [SPEAKER_02]: Let me ask you a question.

[00:10:07] [SPEAKER_02]: When you look in the mirror, do you say to yourself,

[00:10:09] [SPEAKER_02]: I've got this.

[00:10:10] [SPEAKER_02]: I have control of my life.

[00:10:12] [SPEAKER_02]: So that's the question.

[00:10:13] [SPEAKER_02]: Are you taking 100% ownership for every aspect of your life?

[00:10:16] [SPEAKER_02]: And that also happens to be the topic of this week's

[00:10:18] [SPEAKER_02]: Own Your Power clip, owning every aspect of your life,

[00:10:21] [SPEAKER_02]: 100%.

[00:10:22] [SPEAKER_02]: Now, there's so many people considering doing a side hustle

[00:10:26] [SPEAKER_02]: right now.

[00:10:27] [SPEAKER_02]: You know, they're not making enough money in their core job.

[00:10:29] [SPEAKER_02]: They know they want more.

[00:10:30] [SPEAKER_02]: Maybe that side hustle be real estate if you're listening to me.

[00:10:33] [SPEAKER_02]: Now, if you're working or even if you're out of work

[00:10:35] [SPEAKER_02]: and you know you need to get something going,

[00:10:37] [SPEAKER_02]: I've got an incredible event you should consider,

[00:10:39] [SPEAKER_02]: especially if you know real estate is the direction

[00:10:41] [SPEAKER_02]: you're headed.

[00:10:42] [SPEAKER_02]: Now, I'm having my three day full blown multifamily boot camp

[00:10:45] [SPEAKER_02]: in Orlando, November 8th, 9th and 10th.

[00:10:48] [SPEAKER_02]: It's the only live in person event I do each year

[00:10:50] [SPEAKER_02]: because they kill me because it's three days of me.

[00:10:52] [SPEAKER_02]: But there'll be over a thousand people there.

[00:10:55] [SPEAKER_02]: Networking will be incredible.

[00:10:56] [SPEAKER_02]: This is not a big sales pitch like other events.

[00:10:59] [SPEAKER_02]: It's just training you on every aspect of this business.

[00:11:01] [SPEAKER_02]: And when you leave, you'll know how to find deals,

[00:11:04] [SPEAKER_02]: how to build a team, how to select a market,

[00:11:06] [SPEAKER_02]: how to raise all the money you need for your deals,

[00:11:08] [SPEAKER_02]: how to evaluate them and finance them and syndicate

[00:11:10] [SPEAKER_02]: and join venture and just a ton more.

[00:11:12] [SPEAKER_02]: And we'll have several panels each day

[00:11:14] [SPEAKER_02]: of super successful operators answering all your questions.

[00:11:17] [SPEAKER_02]: Now, it is drinking through a fire hose.

[00:11:19] [SPEAKER_02]: So bring your A game.

[00:11:20] [SPEAKER_02]: Honestly, it's the best way to learn total immersion with me

[00:11:23] [SPEAKER_02]: and a thousand other people for three full days.

[00:11:25] [SPEAKER_02]: It's going to be kick ass.

[00:11:27] [SPEAKER_02]: And the price is ridiculously reasonable.

[00:11:29] [SPEAKER_02]: So no excuses.

[00:11:31] [SPEAKER_02]: Text the word Bootcamp to 72345

[00:11:34] [SPEAKER_02]: or go to rodinorlando.com.

[00:11:36] [SPEAKER_02]: Again, text Bootcamp to 72345

[00:11:39] [SPEAKER_02]: or go to rodinorlando.com.

[00:11:42] [SPEAKER_02]: And I promise you'll be glad you came.

[00:11:43] [SPEAKER_02]: In fact, if you come and you don't love the event,

[00:11:46] [SPEAKER_02]: afterwards I'll give you your money back.

[00:11:47] [SPEAKER_02]: And I don't mean like it.

[00:11:48] [SPEAKER_02]: I mean freaking love it.

[00:11:49] [SPEAKER_02]: Okay.

[00:11:50] [SPEAKER_02]: Again, text Bootcamp to 72345

[00:11:53] [SPEAKER_02]: and I'll see you there.

[00:11:54] [SPEAKER_02]: Correct.

[00:11:55] [SPEAKER_02]: Okay.

[00:11:56] [SPEAKER_02]: And you do it one day a month, you said.

[00:11:59] [SPEAKER_03]: Yeah, that way it spreads it out

[00:12:01] [SPEAKER_03]: and it's actual planning.

[00:12:03] [SPEAKER_03]: So yeah, as long as it stays under 14,

[00:12:05] [SPEAKER_03]: if not, you got to claim the income.

[00:12:07] [SPEAKER_02]: So it's under 14K.

[00:12:09] [SPEAKER_02]: Okay.

[00:12:09] [SPEAKER_02]: Very interesting.

[00:12:10] [SPEAKER_02]: So those are just some examples of the tax savings

[00:12:13] [SPEAKER_02]: and tax strategies that you can help someone implement, right?

[00:12:17] [SPEAKER_02]: Yep.

[00:12:17] [SPEAKER_02]: So you've got attorneys that do the entity structure.

[00:12:20] [SPEAKER_02]: You've got CPAs that deal with the taxation.

[00:12:23] [SPEAKER_02]: What are some other things you do?

[00:12:25] [SPEAKER_03]: The other big area that we focused on this year

[00:12:27] [SPEAKER_03]: has been a state planning and BOI,

[00:12:31] [SPEAKER_03]: the dreaded BOI.

[00:12:32] [SPEAKER_02]: That's the new LLC requirement.

[00:12:34] [SPEAKER_03]: Beneficial ownership information.

[00:12:37] [SPEAKER_03]: The financial crimes enforcement network,

[00:12:40] [SPEAKER_03]: government agency, totally separate,

[00:12:42] [SPEAKER_03]: doesn't affect your privacy.

[00:12:43] [SPEAKER_03]: I don't know if you saw this,

[00:12:44] [SPEAKER_03]: but Alabama is fighting it to deem it unconstitutional.

[00:12:49] [SPEAKER_02]: Good lord.

[00:12:50] [SPEAKER_02]: I mean, it's just bureaucracy at its finest.

[00:12:53] [SPEAKER_02]: Good lord.

[00:12:53] [SPEAKER_03]: How they're going to implement it, I have no idea.

[00:12:56] [SPEAKER_03]: There's 40 million entities.

[00:12:58] [SPEAKER_03]: And from last I saw there's not even 10 million

[00:13:01] [SPEAKER_03]: that have completed it.

[00:13:02] [SPEAKER_03]: Wow.

[00:13:03] [SPEAKER_03]: But I mean, they're threatening $500 a day fines.

[00:13:06] [SPEAKER_03]: Right.

[00:13:07] [SPEAKER_03]: Up to two years in jail.

[00:13:09] [SPEAKER_02]: Fat chance.

[00:13:10] [SPEAKER_02]: But I mean still it's ridiculous.

[00:13:12] [SPEAKER_02]: You guys help people get that done.

[00:13:14] [SPEAKER_03]: We put together a really awesome portal

[00:13:16] [SPEAKER_03]: where you can put all of your entities into it.

[00:13:19] [SPEAKER_03]: You fill out the information you need,

[00:13:21] [SPEAKER_03]: you upload your driver's license, your passport,

[00:13:24] [SPEAKER_03]: and it'll send you if your driver's license is going to expire.

[00:13:28] [SPEAKER_03]: It'll email you and say,

[00:13:29] [SPEAKER_03]: Rod, hurry up and update your driver's license

[00:13:32] [SPEAKER_03]: so that you can stay compliant.

[00:13:35] [SPEAKER_02]: So is it a yearly thing?

[00:13:36] [SPEAKER_03]: It's just whenever something changes.

[00:13:39] [SPEAKER_02]: I see.

[00:13:39] [SPEAKER_02]: Okay.

[00:13:40] [SPEAKER_03]: So the BOI, it's part of it.

[00:13:43] [SPEAKER_03]: It's just like setting up a business entity.

[00:13:45] [SPEAKER_03]: We're just going to include it.

[00:13:47] [SPEAKER_03]: We're going to help everyone make sure that it's taken care of.

[00:13:49] [SPEAKER_03]: Check it off the list.

[00:13:51] [SPEAKER_03]: Focus on generating income.

[00:13:52] [SPEAKER_02]: Right.

[00:13:53] [SPEAKER_02]: So what else?

[00:13:54] [SPEAKER_02]: You do the entity structure and the BOI piece associated with that.

[00:13:58] [SPEAKER_02]: You do the tax preparation and tax planning,

[00:14:01] [SPEAKER_02]: which is huge because most CPAs don't.

[00:14:04] [SPEAKER_02]: What else do you do?

[00:14:05] [SPEAKER_03]: The other two are estate planning and business credit.

[00:14:08] [SPEAKER_02]: That's right.

[00:14:09] [SPEAKER_02]: We talked about business credit where you can form an LLC

[00:14:11] [SPEAKER_02]: and you help people basically get lines of credit for their LLC.

[00:14:15] [SPEAKER_03]: Yeah, we're currently getting over $4 million a month

[00:14:18] [SPEAKER_03]: in business credit and corporate funding.

[00:14:21] [SPEAKER_03]: And I know that...

[00:14:22] [SPEAKER_02]: So you're helping people get that much a month from different people

[00:14:25] [SPEAKER_02]: getting that kind of credit?

[00:14:26] [SPEAKER_03]: Combine clients.

[00:14:27] [SPEAKER_03]: And like you said, for the multifamily,

[00:14:29] [SPEAKER_03]: not the most important thing in the world,

[00:14:32] [SPEAKER_03]: but if you have other businesses or single family,

[00:14:34] [SPEAKER_03]: be able to use business credit for just business related expenses

[00:14:39] [SPEAKER_03]: to keep yourself organized and to build up larger lines of credit.

[00:14:44] [SPEAKER_03]: Great benefit.

[00:14:45] [SPEAKER_03]: It takes time.

[00:14:46] [SPEAKER_03]: It's not an overnight solution,

[00:14:47] [SPEAKER_03]: but it's a good option long term.

[00:14:49] [SPEAKER_02]: Great.

[00:14:50] [SPEAKER_02]: And you help facilitate that basically.

[00:14:52] [SPEAKER_02]: We're going to take a break from this great episode

[00:14:54] [SPEAKER_02]: for a word from our sponsor,

[00:14:55] [SPEAKER_02]: which is the multifamily bootcamp.

[00:14:57] [SPEAKER_02]: Now financial success is what you're after.

[00:15:00] [SPEAKER_02]: We are rapidly approaching one of the greatest opportunities

[00:15:02] [SPEAKER_02]: I think we're going to see in our lifetimes

[00:15:04] [SPEAKER_02]: to capitalize financially.

[00:15:06] [SPEAKER_02]: So if you know real estate is the vehicle for you,

[00:15:08] [SPEAKER_02]: you're crazy not to spend a couple days with me

[00:15:10] [SPEAKER_02]: at one of my bootcamps.

[00:15:11] [SPEAKER_02]: I've always got one right around the corner.

[00:15:13] [SPEAKER_02]: Thousands and thousands of people have taken action

[00:15:15] [SPEAKER_02]: on their journeys to creating generational cash flow

[00:15:17] [SPEAKER_02]: for themselves and their families from attending my events.

[00:15:20] [SPEAKER_02]: I don't sell anything at this event.

[00:15:21] [SPEAKER_02]: So it's basically 16 to 18 hours of training

[00:15:23] [SPEAKER_02]: with nothing being sold.

[00:15:25] [SPEAKER_02]: Kind of an old brainer if you're serious about this.

[00:15:27] [SPEAKER_02]: To check it out,

[00:15:28] [SPEAKER_02]: text the word links to 72345

[00:15:30] [SPEAKER_02]: or go to rodslinks.com

[00:15:33] [SPEAKER_02]: Again, text links to 72345

[00:15:35] [SPEAKER_02]: or go to rodslinks.com

[00:15:37] [SPEAKER_02]: I promise you'll be glad you came.

[00:15:39] [SPEAKER_02]: Let's get back to it.

[00:15:40] [SPEAKER_02]: And then estate planning.

[00:15:41] [SPEAKER_02]: So talk about that for a minute

[00:15:43] [SPEAKER_02]: because that's important.

[00:15:44] [SPEAKER_02]: So many people forget about this.

[00:15:45] [SPEAKER_02]: I mean, look at people like Prince

[00:15:47] [SPEAKER_02]: died without a will.

[00:15:48] [SPEAKER_03]: Crazy story.

[00:15:49] [SPEAKER_02]: I mean, and I mean,

[00:15:51] [SPEAKER_02]: millions and millions of dollars

[00:15:53] [SPEAKER_02]: and I mean the government took how much of his money?

[00:15:57] [SPEAKER_02]: I mean like half I think or something

[00:15:58] [SPEAKER_02]: or maybe.

[00:15:58] [SPEAKER_03]: I mean, I think that when he passed his estate was showing

[00:16:02] [SPEAKER_03]: that it was worth 100 or 200 mil.

[00:16:04] [SPEAKER_03]: And it took six to eight years.

[00:16:06] [SPEAKER_03]: Something like don't quote me on the time.

[00:16:07] [SPEAKER_03]: It was a long time over five years

[00:16:10] [SPEAKER_03]: and it was worth like 600 million.

[00:16:12] [SPEAKER_03]: So it actually worked out in this scenario.

[00:16:15] [SPEAKER_03]: But I think that all the money ended up actually going to

[00:16:18] [SPEAKER_03]: it was either his mother or his father that he was.

[00:16:21] [SPEAKER_02]: Oh, so they were able to make it work.

[00:16:22] [SPEAKER_02]: Okay.

[00:16:22] [SPEAKER_03]: But they didn't want he wouldn't have wanted it to go there

[00:16:25] [SPEAKER_03]: from what I understand.

[00:16:26] [SPEAKER_03]: So.

[00:16:27] [SPEAKER_00]: Oh, wow.

[00:16:28] [SPEAKER_03]: Another common misconception is that you hear stories like

[00:16:31] [SPEAKER_03]: that and a lot of people think that trust

[00:16:34] [SPEAKER_03]: and wills are only for very wealthy, very rich individuals.

[00:16:39] [SPEAKER_03]: That's that's not the case.

[00:16:40] [SPEAKER_03]: If you own assets, a bank account, a retirement account,

[00:16:44] [SPEAKER_02]: a real estate anything.

[00:16:46] [SPEAKER_03]: Yeah, it's worth it to protect it and to make sure

[00:16:49] [SPEAKER_03]: that that asset and those dollars are going to who

[00:16:53] [SPEAKER_03]: you truly want and not to a state tax,

[00:16:55] [SPEAKER_03]: not to a state tax, not to probate.

[00:16:57] [SPEAKER_02]: Right.

[00:16:57] [SPEAKER_02]: There's ways to minimize or eliminate that just by structure.

[00:17:01] [SPEAKER_03]: Just the emotional damage that happens amongst families

[00:17:04] [SPEAKER_03]: and what already is a very stressful situation.

[00:17:07] [SPEAKER_03]: Right.

[00:17:08] [SPEAKER_03]: Is very avoidable by having these pieces.

[00:17:10] [SPEAKER_02]: And so you do living wills, trust, power of attorneys,

[00:17:14] [SPEAKER_02]: all these things that need to be done.

[00:17:16] [SPEAKER_02]: I remember I did it with my ex need to update it.

[00:17:19] [SPEAKER_02]: In fact, you just reminded me I need to update that stuff

[00:17:21] [SPEAKER_02]: now that we were no longer together.

[00:17:23] [SPEAKER_02]: But, you know, all that stuff needs to be taken care of

[00:17:26] [SPEAKER_02]: in case something happens.

[00:17:27] [SPEAKER_02]: So the people that you want to get your stuff actually get it.

[00:17:31] [SPEAKER_03]: Yeah, I hate to toot my own horn on this one, but I'm going to.

[00:17:36] [SPEAKER_03]: Okay.

[00:17:36] [SPEAKER_03]: We we made a really, really awesome portal over the last year

[00:17:40] [SPEAKER_03]: and BOI is part of the reason that we did this.

[00:17:43] [SPEAKER_03]: And as we're building it, we're like our clients would love

[00:17:46] [SPEAKER_03]: the estate planning to be in a portal as well.

[00:17:49] [SPEAKER_03]: So a lot of what we're doing now is you can just log into

[00:17:52] [SPEAKER_03]: a portal and you go buy another multifamily property.

[00:17:55] [SPEAKER_03]: You set up another business like you're constantly doing.

[00:17:59] [SPEAKER_03]: Once a year, you can log into this portal, update life changes

[00:18:02] [SPEAKER_03]: and everything's completed.

[00:18:03] [SPEAKER_02]: I do that on a Word document.

[00:18:05] [SPEAKER_02]: Literally, I do what you just described on a Word document.

[00:18:07] [SPEAKER_02]: But I love the fact that you've organized that, you know,

[00:18:10] [SPEAKER_02]: it basically heading.

[00:18:11] [SPEAKER_02]: This is terrible in case I die.

[00:18:13] [SPEAKER_02]: It's the heading of my Word document so that, you know,

[00:18:15] [SPEAKER_02]: that people can find what they need to find if something

[00:18:17] [SPEAKER_02]: happens to me.

[00:18:18] [SPEAKER_02]: But now I love that you've got that organized.

[00:18:20] [SPEAKER_02]: So guys, again, if you're interested in checking this out,

[00:18:23] [SPEAKER_02]: there's no cost to do this.

[00:18:24] [SPEAKER_02]: To set up a call with this team, go to warriorpcs.com

[00:18:28] [SPEAKER_02]: and we'll get you hooked up with that.

[00:18:30] [SPEAKER_02]: So I know that on the LLC front, you're not doing syndication.

[00:18:33] [SPEAKER_02]: Syndication is a very complex LLC structures

[00:18:36] [SPEAKER_02]: and, you know, I've got an SEC attorney that's awesome

[00:18:39] [SPEAKER_02]: for that, Merrill Calliser.

[00:18:40] [SPEAKER_02]: He speaks at my boot camps.

[00:18:42] [SPEAKER_02]: And you need an SEC attorney for that because of the complexity.

[00:18:45] [SPEAKER_02]: I mean, if you guys saw one of these organizational charts,

[00:18:47] [SPEAKER_02]: the LLCs will make your eyes cross.

[00:18:49] [SPEAKER_02]: But the thing that you can help with is when somebody first gets

[00:18:51] [SPEAKER_02]: started setting up their branding entity, you know,

[00:18:55] [SPEAKER_02]: to hang their shingle as it were, you know,

[00:18:57] [SPEAKER_02]: to legitimize themselves, you know?

[00:19:00] [SPEAKER_02]: And I will tell you, let me give you a little feedback on that.

[00:19:02] [SPEAKER_02]: So and I teach this at my boot camps,

[00:19:04] [SPEAKER_02]: but let me just tell you right now.

[00:19:05] [SPEAKER_02]: So when you're setting up one of these branding entities,

[00:19:07] [SPEAKER_02]: you know, like mine is CREquityCapital.com,

[00:19:11] [SPEAKER_02]: commercial real estate equitycapital.com.

[00:19:13] [SPEAKER_02]: And our domain is CREcapital.com.

[00:19:15] [SPEAKER_02]: So when you set up one of these entities and he'll help you do that,

[00:19:19] [SPEAKER_02]: there's still some things you need to check.

[00:19:20] [SPEAKER_02]: Like you need to make sure it's available to Secretary of State, right?

[00:19:24] [SPEAKER_02]: You should check the name with USPTO.gov

[00:19:27] [SPEAKER_02]: and make sure there's no trademark or anything on it.

[00:19:31] [SPEAKER_02]: And then you should see if there's a domain that ties into it

[00:19:34] [SPEAKER_02]: in any way that even if it's not exact,

[00:19:37] [SPEAKER_02]: but, you know, that'll, that'll, that you'll be able to use.

[00:19:40] [SPEAKER_02]: And then, and then you, you know, and most of these entity names end in

[00:19:45] [SPEAKER_02]: investments, real estate, you know, capital, you know, things like that.

[00:19:51] [SPEAKER_02]: Solutions, concepts, things about nature.

[00:19:54] [SPEAKER_02]: And so, you know, you set up your name and you do all these other things

[00:19:58] [SPEAKER_02]: and, you know, Tommy's team can help you get that LLC set up

[00:20:02] [SPEAKER_02]: and you're off to the races.

[00:20:03] [SPEAKER_02]: And then if you want to do business credit on it,

[00:20:05] [SPEAKER_02]: we can discuss that with you and so on and so forth.

[00:20:07] [SPEAKER_02]: But yeah, on the syndication side,

[00:20:09] [SPEAKER_02]: that's done by an SEC attorney just to clear that up.

[00:20:11] [SPEAKER_02]: I want to make sure there's clarity on that.

[00:20:13] [SPEAKER_03]: I'm happy you did after Merrill spoke right before me,

[00:20:16] [SPEAKER_03]: right?

[00:20:17] [SPEAKER_03]: I was chasing him out of the room getting his information to talk to him

[00:20:20] [SPEAKER_03]: and go through everything.

[00:20:21] [SPEAKER_03]: Right.

[00:20:22] [SPEAKER_03]: Because it is two completely different worlds.

[00:20:25] [SPEAKER_03]: Right.

[00:20:25] [SPEAKER_03]: It's so important to make sure that you have the SEC component on that side.

[00:20:28] [SPEAKER_03]: Right.

[00:20:29] [SPEAKER_03]: With the entity side to simplify this for everyone,

[00:20:32] [SPEAKER_03]: the three things that I tell people to really look at

[00:20:35] [SPEAKER_03]: whenever you set up a new business.

[00:20:37] [SPEAKER_03]: Number one, privacy and protection.

[00:20:40] [SPEAKER_03]: How much privacy do you want?

[00:20:42] [SPEAKER_03]: Do you want your name, your address, those things listed on state websites?

[00:20:45] [SPEAKER_02]: So you go to Delaware, Wyoming or Nevada.

[00:20:47] [SPEAKER_03]: Or I also, you can even use registered agents.

[00:20:50] [SPEAKER_03]: Oh, sure.

[00:20:50] [SPEAKER_03]: Virtual addresses to make sure your address isn't on there.

[00:20:53] [SPEAKER_03]: Yeah.

[00:20:54] [SPEAKER_03]: But yeah, Wyoming's my favorite.

[00:20:55] [SPEAKER_03]: Yeah.

[00:20:56] [SPEAKER_03]: Simple, easy, a little bit less expensive.

[00:20:58] [SPEAKER_02]: Less expensive than Delaware.

[00:20:59] [SPEAKER_02]: You know, Delaware is more money.

[00:21:01] [SPEAKER_02]: Some banks were required Delaware, believe it or not,

[00:21:03] [SPEAKER_02]: on the SEC front or on the lending front.

[00:21:05] [SPEAKER_02]: But those are two the best for sure.

[00:21:08] [SPEAKER_02]: Delaware and Wyoming.

[00:21:09] [SPEAKER_02]: And I said, Nevada is probably a close third.

[00:21:11] [SPEAKER_03]: Yep.

[00:21:11] [SPEAKER_03]: I would agree with that.

[00:21:12] [SPEAKER_03]: And then the second thing is tax benefits, profit or loss.

[00:21:16] [SPEAKER_03]: And I think this is important.

[00:21:18] [SPEAKER_03]: Those of you that create active income,

[00:21:21] [SPEAKER_03]: make sure you identify the type of income.

[00:21:23] [SPEAKER_03]: Is it active or is it passive?

[00:21:25] [SPEAKER_03]: Because a lot of times one of the first things

[00:21:27] [SPEAKER_03]: that we try and review with tax clients,

[00:21:30] [SPEAKER_03]: there will be people that come to us with just LLCs,

[00:21:32] [SPEAKER_03]: generating active income.

[00:21:34] [SPEAKER_03]: Right.

[00:21:35] [SPEAKER_03]: And if we change to that S corp election,

[00:21:37] [SPEAKER_03]: it allows them to save, pay themselves a salary

[00:21:42] [SPEAKER_03]: or a distribution and then avoid half that self-employment tax.

[00:21:46] [SPEAKER_02]: So to recap, you guys do entity structuring LLCs.

[00:21:49] [SPEAKER_02]: You absolutely do, you do tens of thousands of taxes a year.

[00:21:53] [SPEAKER_02]: You do estate planning so that, you know, when you pass,

[00:21:56] [SPEAKER_02]: the right people get what you want.

[00:21:58] [SPEAKER_02]: And they don't pay a bunch of estate tax.

[00:21:59] [SPEAKER_02]: And you do business credit.

[00:22:00] [SPEAKER_02]: Now, if someone calls you guys,

[00:22:04] [SPEAKER_02]: what can they expect on a phone call?

[00:22:06] [SPEAKER_03]: Yeah, that call is free.

[00:22:08] [SPEAKER_03]: That call is for you.

[00:22:09] [SPEAKER_03]: That calls for anyone that's listening.

[00:22:11] [SPEAKER_03]: Let's first make sure that we can actually bring value, right?

[00:22:15] [SPEAKER_03]: And what we'll do is we'll break down 45 minutes to an hour

[00:22:18] [SPEAKER_03]: free call.

[00:22:20] [SPEAKER_03]: What do you already have in place?

[00:22:22] [SPEAKER_03]: What are your goals?

[00:22:23] [SPEAKER_03]: What are your dreams over the next year?

[00:22:25] [SPEAKER_03]: Five years, 10 years?

[00:22:27] [SPEAKER_03]: Let's first of all make sure the entities

[00:22:29] [SPEAKER_03]: are all set up properly.

[00:22:30] [SPEAKER_03]: Right.

[00:22:31] [SPEAKER_03]: They're talking to each other.

[00:22:32] [SPEAKER_03]: And then we can look at what the other things are

[00:22:34] [SPEAKER_03]: and make sure that you have the estate planning.

[00:22:37] [SPEAKER_03]: You have the credit if it's something that benefits you.

[00:22:40] [SPEAKER_03]: We're filing the taxes the right way,

[00:22:42] [SPEAKER_03]: but it really is just an overall discovery call

[00:22:45] [SPEAKER_03]: to make sure that there's no holes,

[00:22:47] [SPEAKER_03]: no gaps in what you're doing.

[00:22:49] [SPEAKER_02]: Yeah, simple enough.

[00:22:49] [SPEAKER_02]: It's very similar to somebody, you know,

[00:22:51] [SPEAKER_02]: wants to apply to our Warrior program.

[00:22:53] [SPEAKER_02]: Just it's a discovery call just like that.

[00:22:56] [SPEAKER_02]: So that sounds good.

[00:22:57] [SPEAKER_02]: Okay.

[00:22:58] [SPEAKER_02]: Well, listen, brother, I really appreciate you coming on the show

[00:23:00] [SPEAKER_02]: and adding some value.

[00:23:01] [SPEAKER_02]: And I think, you know, your services are definitely in need,

[00:23:04] [SPEAKER_02]: which is why I had you talk to my warriors,

[00:23:06] [SPEAKER_02]: which I do not let many people talk to my warriors.

[00:23:08] [SPEAKER_02]: But, you know, that was very educational.

[00:23:11] [SPEAKER_02]: I'm like, dude, let's get you on the podcast when I heard it.

[00:23:13] [SPEAKER_02]: So here we are.

[00:23:14] [SPEAKER_03]: I appreciate it.

[00:23:15] [SPEAKER_03]: I will say this as well.

[00:23:18] [SPEAKER_03]: That's a high level group.

[00:23:19] [SPEAKER_03]: I really, really enjoyed it.

[00:23:21] [SPEAKER_02]: Yeah.

[00:23:22] [SPEAKER_03]: Not only high level from a business sense,

[00:23:24] [SPEAKER_03]: but just good people.

[00:23:25] [SPEAKER_02]: Oh, it's an extraordinary group.

[00:23:26] [SPEAKER_02]: And I hear that from anybody that gets in front of them.

[00:23:29] [SPEAKER_02]: They don't see groups like that, you know,

[00:23:31] [SPEAKER_02]: that engage, that excited, that motivated,

[00:23:35] [SPEAKER_02]: that supportive, they help each other.

[00:23:36] [SPEAKER_02]: It's extraordinary.

[00:23:38] [SPEAKER_02]: But, well, thanks, brother.

[00:23:39] [SPEAKER_02]: I appreciate you coming on.

[00:23:40] [SPEAKER_01]: Yeah, thanks for having me.

[00:23:41] [SPEAKER_01]: Thank you for listening to the Lifetime Cash Flow

[00:23:44] [SPEAKER_01]: through Real Estate Investing Podcast.

[00:23:56] [SPEAKER_01]: At rodcleaf.com.

[00:23:59] [SPEAKER_01]: Tune in next week for our next show.