Podcasts about Amortization

Lets dive into the emotional and practical considerations of paying off a mortgage early, explore the benefits and drawbacks, personal experiences, and broader financial implications of renting versus owning a home. Key Topics and Timestamps Introduction to Mortgage Conversations (00:00:00) Overview of the episode's focus on mortgages, buying vs. renting, and personal finance strategies. Emotional Factors in Paying Off Mortgages (00:01:30) Ginger shares her excitement about paying off her mortgage early and reflects on the emotional journey behind that decision. Key Quote: "Your peace of mind from paying off your mortgage is a huge win." (00:03:10) Amortization and Mortgage Strategies (00:08:00) Discussion about choosing between 15-year vs. 30-year mortgages and strategies on optimizing payments. Action Item: Use an amortization calculator to improve understanding of mortgage payments. (00:12:00) Choosing Between Buying and Renting (00:21:00) Exploration of the pros and cons of renting compared to owning, highlighting personal flexibility. Key Quote: "Customize your financial journey according to your personal needs and goals." (00:18:18) Simplifying Life through Financial Independence (00:25:00) Talk about minimalism and how it impacts choices around owning or renting. Action Item: Evaluate whether renting allows you more freedom and flexibility in your life. (00:25:59) The Role of Travel Rewards (00:37:00) Importance of managing spending while maximizing benefits from travel rewards programs. Key Quote: "Consider preloading gift cards to manage your travel rewards spending." (00:43:57) Conclusion and Key Takeaways (00:49:00) Final thoughts focused on empowerment in financial decisions and seeking small improvements in life. Key Insights Emotional well-being is crucial. Choosing to pay off a mortgage should factor in personal comfort, as financial decisions often intertwine with emotions. Flexibility vs. Certainty: A 30-year mortgage can provide flexibility, allowing individuals to make extra payments while having lower base payments. Renting offers freedom: For some, renting can lead to a sense of liberation and a less complicated financial life. Travel rewards must be managed wisely: Spending to achieve travel rewards should be monitored to avoid unnecessary overspending. Actionable Takeaways Consider your emotional readiness when deciding to pay off your mortgage early. (00:03:10) Evaluate whether renting allows you more freedom and flexibility in your life. (00:25:59) Use amortization calculators to understand your mortgage better. (00:12:00) Discussion Questions How does paying off a mortgage early affect emotional well-being? (00:03:10) What benefits do you see in renting versus owning a home? (00:25:59) How can you incorporate simplicity in your financial life? (00:49:24)   You Might Be Interested In The Ultimate Guide to Credit Card Travel Rewards | Part 1 Future Value of Investment Calculator    

What makes one investor's offer stand out over another's—even when the numbers look the same?   In this episode, Angel hosts Fernando Arias and Anna Latysheva for a detailed walkthrough of how underwriting variables impact real estate valuations, investor returns, and bidding strategies. They examine the unseen levers—like DSCR, interest rates, amortization schedules, and capital expenditures—that can shift IRRs dramatically. With real-world scenarios and expert commentary, this episode provides valuable insights for both novice and seasoned investors navigating a tightening lending environment.     [00:01 - 04:14] Why Debt Terms Change the Game The significance of DSCR in determining actual loan amounts—not just LTV assumptions How interest rates and loan terms affect down payments and investor returns The need to build strong banking relationships for accurate underwriting inputs   [04:15 - 08:44] The Impact of Amortization on IRR What amortization periods reveal about monthly debt service and deal feasibility Why a higher down payment reduces IRR—even if the NOI stays constant The importance of recalculating purchase offers based on updated debt quotes   [08:45 - 13:28] Expense Assumptions That Can Break a Deal How slight changes in operating expenses significantly affect valuation The importance of classifying capital expenditures below the line Why expense accuracy is essential in low-cap markets   [13:29 - 18:00] Income Projections vs. Market Realities Why underwriting based on realistic rent comps boosts your competitiveness The significance of local PM data over online averages like Rentometer How fluctuating lending terms can lead to broken contracts   [18:01 - 23:40] Cap Rates, Risk, and Investor Psychology Why understanding cap rate spreads is essential for valuation decisions The relationship between NOI, cap rate, and perceived asset risk How market psychology and alternative income streams influence investor behavior       Connect with Anna:   LinkedIn: https://www.linkedin.com/in/ibuybuildings/   Connect with Fernando:   LinkedIn: https://www.linkedin.com/in/fernandoapartments/     Key Quotes:   “Just because your pro forma shows a 1.89 DSCR a year from now doesn't mean the bank will underwrite that way.” - Fernando Arias   “Every $1,000 in NOI can mean a $20,000 swing in valuation in low-cap markets.” - Anna Latysheva     Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!

In this conversation, Stephen S. interviews James Murphy, a financial planning advisor with over 23 years of experience. They discuss the intricacies of mortgage structures, the importance of understanding amortization, and the need for personal financial education. James shares his personal journey of discovering more efficient ways to manage mortgages and emphasizes the significance of being informed about financial decisions. The episode highlights the potential for individuals to pay off their mortgages in a fraction of the time and the importance of reading the fine print in financial agreements.   Professional Real Estate Investors - How we can help you: Investor Fuel Mastermind:  Learn more about the Investor Fuel Mastermind, including 100% deal financing, massive discounts from vendors and sponsors you're already using, our world class community of over 150 members, and SO much more here: http://www.investorfuel.com/apply   Investor Machine Marketing Partnership:  Are you looking for consistent, high quality lead generation? Investor Machine is America's #1 lead generation service professional investors. Investor Machine provides true ‘white glove' support to help you build the perfect marketing plan, then we'll execute it for you…talking and working together on an ongoing basis to help you hit YOUR goals! Learn more here: http://www.investormachine.com   Coaching with Mike Hambright:  Interested in 1 on 1 coaching with Mike Hambright? Mike coaches entrepreneurs looking to level up, build coaching or service based businesses (Mike runs multiple 7 and 8 figure a year businesses), building a coaching program and more. Learn more here: https://investorfuel.com/coachingwithmike   Attend a Vacation/Mastermind Retreat with Mike Hambright: Interested in joining a “mini-mastermind” with Mike and his private clients on an upcoming “Retreat”, either at locations like Cabo San Lucas, Napa, Park City ski trip, Yellowstone, or even at Mike's East Texas “Big H Ranch”? Learn more here: http://www.investorfuel.com/retreat   Property Insurance: Join the largest and most investor friendly property insurance provider in 2 minutes. Free to join, and insure all your flips and rentals within minutes! There is NO easier insurance provider on the planet (turn insurance on or off in 1 minute without talking to anyone!), and there's no 15-30% agent mark up through this platform!  Register here: https://myinvestorinsurance.com/   New Real Estate Investors - How we can work together: Investor Fuel Club (Coaching and Deal Partner Community): Looking to kickstart your real estate investing career? Join our one of a kind Coaching Community, Investor Fuel Club, where you'll get trained by some of the best real estate investors in America, and partner with them on deals! You don't need $ for deals…we'll partner with you and hold your hand along the way! Learn More here: http://www.investorfuel.com/club   —--------------------

In this packed episode, the hosts dive deep into the rapidly growing world of note hypothecation, partial notes, and funding strategies for note investors. Guest Justin shares how he legally wraps mortgages with full bank approval, and how he's secured financing from five different small banks by collateralizing his note portfolio. You'll learn how to pitch banks, what documentation to prepare, and how to make your notes bankable—even without selling them.If you're a note investor, creator, or broker, this is a must-watch episode that could completely change how you fund your deals. Whether you're new or seasoned, you'll walk away with actionable tips and new strategies to grow your note business in 2025 and beyond.To obtain this week's Real Estate Notes Show guest Justl's information, use this link https://bit.ly/3QSnbfA**Never Miss a Live Show**, Add our Calendar to yours! Google - https://bit.ly/3Djr8GL Apple/Outlook - https://bit.ly/3Dhj9tyWe Buy Notes go to our site for more information! FAQs and Submit Your NoteWatch this video on Youtube: Watch VideoOur new Website Updated Tools, Resources, Bid Calculator, Education and over 100 assets for sale: ⁠https://www.jkpholdings.com/note-investor-education⁠Youtube Channel: https://www.youtube.com/c/JKPholdingsllc?sub_confirmation=1Upcoming Live Webinars: https://www.jkpholdings.com/webinarsDME (Diversfied Mortgage Expo) Note Conference Video Recordings - ⁠PurchaseSOCIAL MEDIAFB Group: https://www.facebook.com/groups/EastCoastDistressedNoteInvesting/Facebook: https://www.facebook.com/JKPHoldings/Linkedin: https://www.linkedin.com/company/jkp-holdings-llc#noteinvesting #mortgagenotes #investor #mortgagenote #realestate #realestateinvestor[00:00:00] Show Intro and Guest Update[00:01:00] Influx of Non-Performing Notes[00:02:00] Why Networking Is Everything[00:04:00] Keeping Top of Mind in Notes[00:06:00] Common Performing Note Mistakes[00:08:00] Partial Notes vs Hypothecation[00:10:00] Meet Justin: Note Investor Journey[00:12:00] Discovering Wrap Notes Legally[00:14:00] Legal Lending Limits Explained[00:16:00] Packaging Notes for Banks[00:18:00] Negotiating with Small Banks[00:20:00] Collateralizing a $100K Note[00:22:00] Creating a Banker's Presentation[00:24:00] Title Companies as Key Connectors[00:26:00] Banks Lending on High-Interest Notes[00:28:00] Can You Hypothecate with Individuals?[00:30:00] Lending and Risks with Private Notes[00:32:00] Using Debt to Grow a Portfolio[00:34:00] Structuring Legal Wrap Note Deals[00:36:00] Texas Advantages for Note Investors[00:38:00] Note Investing in Today's Economy[00:40:00] Post-Tax Yield and Amortization[00:42:00] What Happens If You Default?[00:44:00] Personal Guarantees and Final Thoughts[00:46:00] The Future of Note Hypothecation[00:48:00] Wrap-Up and Final Takeaways

In today's episode, I dive into a topic that often confuses business owners: the difference between an expense and an asset. While you might think your bookkeeper has it all handled, it's vital to understand how these distinctions affect your business's tax benefits and overall financial health. We'll cover the basics of expenses – your typical operating costs such as advertising, materials, and rent. On the other side, we'll define assets, like ovens or refrigerators for a bakery, which help generate revenue over multiple years. Learn how to properly categorize these items, the importance of depreciation, and how intangible assets like websites and franchise fees fit into the mix. Whether you're investing in new equipment or paying franchise fees, I'll provide you the insights you need to strategically manage these expenses and maximize your tax benefits. Plus, find out how setting the right expectations and aligning your spending with profit and personal goals can pave the way for a successful 2025. Tune in to get equipped with the knowledge to better handle your business's financials!   What You'll hear in this episode: [0:50] Understanding Expenses in Your Business [1:50] Defining Assets and Their Importance [3:50] Depreciation Explained [7:00] Intangible Assets and Amortization [9:15] Strategic Planning for Assets and Expenses   If you like this episode, check out: Understanding Bonus Depreciation and Recapture The Truth About Tax Savings and Strategies What They Never Tell You About Depreciation   Want to learn more so you can earn more?  Visit keepwhatyouearn.com to dive deeper on our episodes  Visit keepwhatyouearncfo.com to work with Shannon and her team  Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ  Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/   The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.

In this episode of Beer andMoney, Ryan Burklo discusses various tax strategies for retirement, emphasizing the importance of planning with the end in mind. He explores the implications of different income needs, the 4% withdrawal rule, and compares various tax strategies including amortization and annuities. The conversation highlights how where you place your money can significantly impact your tax bracket and overall financial health in retirement. Check out our website:  beerandmoney.net For a quick assessment of your current financial life go to: https://www.livingbalancesheet.com/lbsVision/lite/RyanBurklo Takeaways Understanding tax brackets is crucial for retirement planning. The 4% rule helps determine sustainable withdrawals. Amortization can provide a different tax strategy for income. Annuities can offer guaranteed income but have tax implications. Effective tax rates can vary significantly based on income sources. Planning with the end in mind allows for better tax strategies. Diversifying tax buckets can help control tax liabilities. Long-term planning is essential for maximizing retirement income. Where you put your money today affects future tax strategies. Engaging with financial professionals can simplify planning.  Chapters 00:00 Introduction to Tax Strategies in Retirement 02:54 Understanding Income Needs and Tax Implications 06:10 Exploring the 4% Withdrawal Rule 08:59 Amortization as a Tax Strategy 11:54 Comparing Tax Strategies: Interest-Only vs. Amortization 15:00 Annuity as a Tax Strategy 18:03 Tax Implications of Annuities 20:45 Long-Term Tax Planning Strategies 23:12 Conclusion and Call to Action  

In this episode of For The Record, we sit down with Elizabeth Macready, Director of Special Markets at Tusk Practice Sales, to discuss the evolving landscape of private equity investment and practice sales in the medical aesthetics industry. With over 15 years of experience in healthcare M&A, particularly in the dental sector, Elizabeth brings valuable insights and years of personal experience on how medical aesthetics practices can prepare for and navigate potential acquisitions. We kick it off with Elizabeth outlining the current state of Medical Aesthetics M&A which is not surprising but a reminder that this industry is growing rapidly with very little signs of slowing. We also talk through how to objectively look at your practice and understand its potential market value in an M&A transaction. She shares the key metrics to consider and an overview of the entire deal process: • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the crucial metric for valuation • Practice revenue of $3 million+ typically positions a practice well for competitive bidding • Multipliers and deal structures vary, but the underlying EBITDA calculation is critical • Buyers may manipulate EBITDA calculations to offset higher multiple offers While it may seem scary to some, there are a host of major benefits that come along with an exit! We discuss what it can mean for you as an owner, for your team, and for your patients' experience long-term when you move forward with an acquisition: • Increased buying power for products and supplies • Access to better vendor relationships and negotiations • Enhanced ability to attract and retain talent through career growth opportunities • Operational support and resources for scaling • Potential for "second bite of the apple" through future liquidity events As you listen to Elizabeth talk about the ins and outs of an M&A deal, it's abundantly clear that you have to have a middleman, a broker, to help navigate the process for you and get you the highest price for your practice. At Tusk, Elizabeth is a trusted guide helping Med Spa owners connect to the right sellers that align to the mission, vision and values of the practice, structure a deal that is favorable to both parties as this is not an event but a long term partnership where everyone needs to win, and in many cases, act as a confidante and counselor throughout the many emotional up and downs that come with this process. Elizabeth recommends a few key things as you begin down the M&A path and start thinking about your next steps. We cover her hit list which includes starting early which may be well before you intent to sell; build a strong team that provides exceptional patient outcomes and experiences as this is where you create your value; find the right team of advisors to help you with financial decisions along the way, and always keep a close eye on your numbers! We wrap it up with a look into the future of M&A and Elizabeth's predictions for the next 5 years: • Continued consolidation across medical aesthetics • Integration with other healthcare verticals (dermatology, plastic surgery) • Increasing importance of scale for competitive advantage • Evolution toward multi-specialty practices and comprehensive care models Elizabeth's team at Tusk Practice Sales offer various resources for practice owners considering their exit options, including educational content, podcasts, and one-on-one consultations. They emphasize the importance of proper timing, preparation, and partnership alignment in achieving optimal outcomes for practice sales. If you are eager to get started and connect with Elizabeth: Reach out via Tusk's website: https://tuskpracticesales.com/ & checkout all their free resources! Connect with Elizabeth on LinkedIn: https://www.linkedin.com/in/elizabeth-macready-b38b9a248/ Reach Out via email at Elizabeth@TuskPracticeSales.com

ANALYSE | Zum Jahresendspurt stellen wir euch die 5 besten Podcastepisoden 2024 vor. Innerhalb von 5 Tagen bekommt ihr die Crème de la Crème von digital kompakt 2024 auf die Ohren! Los geht's! Douglas hat einen erfolgreichen Gang an die Börse hingelegt, aber wie zukunftssicher ist das Beauty-Unternehmen tatsächlich aufgestellt? Joel, Alexander und Jochen haben da ihre Bedenken. In diesem Podcast analysieren sie die Stellung des Unternehmens auf dem Beauty-Markt, erläutern warum sich dieser Markt aktuell radikal ändert und erklären, warum Douglas' Omni-Channel-Strategie diesen Änderungen nicht gewachsen sein könnte. Du erfährst... …wieso Douglas einen zweiten Versuch an der Börse gebraucht hat …warum Douglas' Börsenstart nicht so gut ist, wie er aussieht …welche Rolle Marktplätze in Douglas Geschäfts-Strategie spielen …weshalb Douglas sich mit dem Online-Markt schwer tut …wo Alexander und Jochen bei Douglas Online-Potential sehen …was für andere Player gibt es auf dem Parfüm-Markt …wie TikTok und Co. gerade den Parfüm-Markt verändern …ob Douglas sich diesen Veränderungen anpassen kann Du verstehst nur Bahnhof? Zu viel Fachchinesisch? Unser Lexikon hilft dir dabei, die wichtigsten Fachbegriffe zu verstehen:Online-Marktplatz - Eine online Plattform, auf der verschiedene Verkäufer ihre Produkte oder Dienstleistungen anbieten können.Börsengang - Der Prozess, bei dem ein Unternehmen seine Aktien zum ersten Mal öffentlich an einer Börse anbietet.Private Equity - Eine Form der Anlage in etablierte Unternehmen, oft durch den Kauf von Mehrheitsbeteiligungen, oft unter Einsatz von Fremdkapital.Omnichannel - Ein integrierter Vertriebsansatz, der dem Kunden ein nahtloses Einkaufserlebnis über alle Kanäle hinweg bietet.Retail Media - Werbung, die direkt auf E-Commerce-Plattformen geschaltet wird, um den Verkauf von Produkten auf derselben Plattform zu fördern.EBITDA - Earnings Before Interest, Taxes, Depreciation, and Amortization – ein Maß für die Rentabilität eines Unternehmens, das Zinsen, Steuern und Abschreibungen ausschließt. Diese Episode dreht sich schwerpunktmäßig um E-Commerce: Joel trifft sich regelmäßig mit den beiden E-Commerce-Experten Alexander Graf (Kassenzone, Spryker) und Jochen Krisch (Exciting Commerce, K5) um ihr Wissen zu bündeln. Gemeinsam nehmen die drei dich mit auf eine Reise zu spannenden Tiefenanalysen, Strategiediskussionen und Praxiseinblicken des Onlinehandels. Ein wahres Feuerwerk zwischen drei Experten, die scharfe Thesen formulieren und lebhaft miteinander diskutieren.

Have you wondered how private equity can transform your franchising journey or why timing your exit strategy is as critical as choosing the right franchise?Today, Alicia Miller is sharing some golden nuggets on scaling your franchise, understanding private equity's role and most importantly, planning your exit strategy ahead of time.And if you are confused when it comes to private equity, Alicia breaks it down into understandable bite size pieces. She explains how less than 20% of franchisors get private equity investment and what qualities these firms are looking for - like a strong management team, profitability and great cash flow potential.And if that wasn't enough, Alicia gives the lowdown on crucial metrics like the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and why it's a big deal for valuations. Alicia Miller is the Founder and Managing Director of Emergent Growth Advisors, a boutique strategic advisory firm working at the intersection of franchising and private equity. She supports founders and franchise management teams facing growth, disruption, or transformation challenges, and helps them accelerate their businesses. She also advises private capital firms pre- and post-transaction on strategy and value creation initiatives and co-invests alongside her partners. As a former multi-unit franchisee, she brings a franchisee's perspective and operating experience into every engagement.So, if you are ready to uncover the secrets to scaling, sustaining and successfully exiting your business as well as learning about the financial intricacies of franchising that could be the game-changer for your business then today's episode is for you!Connect with AliciaWebsite: www.emergentgrowthadvisors.com LinkedIn: www.linkedin.com/in/milleralicia/ Instagram: https://www.instagram.com/bigmoneyinfranchising/Twitter: https://x.com/BigMoneyInFranAmazon: https://a.co/d/coVmI6WEpisode Highlights:Importance of private equityUnderstanding what qualities private equities look forHave a plan and an exit strategy readyFinancial preparedness and financial challengesStrategic focus on exit strategies and private equity rolesViewing a business from a buyer's perspectiveImportance of business valuationPreparing a business for saleStrategies for emerging brands when sellingRole of advisors in franchisingConnect with Tracy Personal LinkedIn: https://www.linkedin.com/in/tracy-panase/ JBF LinkedIn - https://www.linkedin.com/company/jbfsale JBF Franchise System - https://jbfsalefranchise.com/ Email: podcast@jbfsale.com Connect with Shannon Personal LinkedIn - https://www.linkedin.com/in/shannonwilburn/ JBF LinkedIn - https://www.linkedin.com/company/jbfsale

On this week's Episode of the Real Estate Notes Show hosts Dave Putz and Nathan turner dive into Mastering Note Returns. They will be talking about Yield (Returns) From the Basics to the Advance! Answering Questions such as What is the difference between Yield and ROI and IRR? Why does Interest amount decrease over time? Does it matter where in the amortization schedule a note is bought? When does it make sense to sell a partial and how long of a partial should you buy/Sell? When does principal over take Interest amount in Amortization schedule? If i hold a note for a X period and sell it does it change the return? AND MUCH MORE.... Want to learn more about Yield and building a Calculator, use this link https://bit.ly/3VQi0Q2 **Never Miss a Live Show**, Add our Calendar to yours! Google - https://bit.ly/3Djr8GL Apple/Outlook - https://bit.ly/3Dhj9ty We Buy Notes go to our site for more information! FAQs and Submit Your Note Watch this video on Youtube: Watch Video Our new Website Updated Tools, Resources, Bid Calculator, Education and over 100 assets for sale: ⁠https://www.jkpholdings.com/note-investor-education⁠ Youtube Channel: https://www.youtube.com/c/JKPholdingsllc?sub_confirmation=1 Upcoming Live Webinars: https://www.jkpholdings.com/webinars DME (Diversfied Mortgage Expo) Note Conference Video Recordings - ⁠Purchase SOCIAL MEDIA FB Group: https://www.facebook.com/groups/EastCoastDistressedNoteInvesting/ Facebook: https://www.facebook.com/JKPHoldings/ Linkedin: https://www.linkedin.com/company/jkp-holdings-llc #noteinvesting #mortgagenotes #investor #mortgagenote #realestate #realestateinvestor --- Support this podcast: https://podcasters.spotify.com/pod/show/real-estate-notes-show/support

In this episode, Jamie Shilanski delivers a masterclass in strategic business planning that's sure to resonate with financial advisors looking to transform their practices from good to extraordinary. Diving deep into the art and science of year-end business planning, Jamie unpacks the critical components that separate thriving practices from merely surviving ones. Jamie provides a comprehensive guide to financial advisor success, revealing how understanding key performance indicators (KPIs) can be the secret to operational excellence. At the heart of the discussion are crucial financial metrics like EBOC (Earnings Before Owner Compensation) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). These aren't just fancy acronyms—they're powerful tools that offer a crystal-clear view of a practice's financial health and operational efficiency. Jamie challenges advisors to treat their own business with the same meticulous planning they apply to client portfolios, creating a culture of accountability and strategic growth. Show Me Your EBITDA Resources in today's episode: - Year-End Business Planning How To

Mortgage Market Update From Canada's Top Broker - Dave Butler   Canada's #1 rated mortgage broker from 2017 - 2021, frequent radio guest Dave Butler from Better Mortgage Select joins me in studio. Dave's companies have handled over 26,000 mortgage loans and $9.6 Billion involved, so he's qualified to talk about the many new changes coming to mortgage rule changes; the new mortgage changes in January 2025, and a recent market update, including rates and amortization periods, and MUCH more! This is part 1 of a 2 part hour-long conversation with Dave.    Contact: Web: http://DaveButler.ca    This episode proudly sponsored by Mayfair Law Group.   Are you a landlord or tenant in need of legal assistance? Mayfair Law Group has got you covered! Our experienced team specializes in Landlord and Tenant Board services, providing expert guidance and representation for all your Landlord or Tenant legal needs. Contact us today at 416-546-1581 and let us help you navigate the complexities of landlord and tenant law.   Other Links: WATCH the podcast! https://www.youtube.com/@gary.hibbert

Key Takeaways: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key way to measure how much a business is worth. Different industries use different multiples to estimate value, like if a company earns $1 million in EBITDA and the industry multiple is 5, the company might be worth $5 million. Having strong partnerships and well-organized systems can make a business more attractive and potentially increase the sale price.   Chapters: Timestamp Summary 0:00 Attracting Strategic Buyers for Your Business 0:37 The Art of Drinking Soda Through a Twizzler 2:13 Finding Strategic Buyers to Align with Business Legacy 3:38 Strategic Acquisitions and Visionary Leadership in Business 6:04 Finding Strategic Buyers and Evaluating Your Business 7:47 Estimating Business Value with EBITDA Multiples 8:46 Maximizing Business Value Through Strategic Planning and Procedures   Powered by ReiffMartin CPA and Stone Hill Wealth Management   Social Media Handles    Follow Phillip Washington, Jr. on Instagram (@askphillip)   Subscribe to Wealth Building Made Simple newsletter https://www.wealthbuildingmadesimple.us/   Ready to turn your investing dreams into reality? Our "Wealth Building Made Simple" premium newsletter is your secret weapon. We break down investing in a way that's easy to understand, even if you're just starting out. Learn the tricks the wealthy use, discover exciting opportunities, and start building the future YOU want. Sign up now, and let's make those dreams happen!   WBMS Premium Subscription   Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

In this episode I chat with Andrew Brown from East72 Holdings to debunk some financial metrics.We look at discounted cash flow (DCF) valuations, a metric often authoritatively trumpeted by analysts. Andrew argues that DCF is useless for valuing most companies: it's based on unfounded assumptions and crystal-balling and can be manipulated to fit any narrative.Then there's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Andrew agrees with Charlie Munger's assessment (bullshit!).Blog post available at: https://www.sharesforbeginners.com/blog/ebitda-andrew-brownPortfolio tracker Sharesight tracks your trades, shows your true performance, and saves you time and money at tax time. Sharesight automatically tracks price, performance and dividends from 240,000+ global stocks, crypto, ETFs and funds. Add cash accounts and property to get the full picture of your portfolio – all in one place. Get 4 months free at https://www.sharesight.com/sharesforbeginnersTony Kynaston is a multi-millionaire professional investor thanks to his QAV checklist. Tony's knowledge and calm analysis takes the guesswork out of share market investing. Use the coupon code SFB for a 20% discount on QAV Club plans or SFBLIGHT for a free month of QAV Light. Here's the link to sign up: https://qavpodcast.com.au/register-3/ Disclosure: The links provided are affiliate links. I will be paid a commission if you use this link to make a purchase. You will receive a discount by using these links/coupon codes. I only recommend products and services that I use and trust myself or where I have interviewed and/or met the founders and have assured myself that they're offering something of value.Shares for Beginners is a production of Finpods Pty Ltd. The advice shared on Shares for Beginners is general in nature and does not consider your individual circumstances. Shares for Beginners exists purely for educational and entertainment purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Philip Muscatello and Finpods Pty Ltd are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708, AFSL - 451289. Hosted on Acast. See acast.com/privacy for more information.

For the first time ever, we're updating an episode we did back in 2022, all about money management systems. I'm detailing the two-track approach I recommend to hit your financial goals with minimal stress, because by taking advantage of the two big As—Automation and Amortization—you can put your financial life on the third A (Autopilot). (Sorry, I'll stop.) I am not a licensed financial professional, so please do your own due dil. Transcripts, show notes, production credits, and more can be found at: https://moneywithkatie.com/money-management. Money with Katie's mission is to be the intersection where the economic, cultural, and political meet the tactical, practical, personal finance education everyone needs. Learn more about your ad choices. Visit megaphone.fm/adchoices

Click Here to read the blog version of this episode.Contact Marko, he's a Mortgage Broker!604-800-9593 cell/text Vancouver403-606-3751 cell/text CalgaryCall Marko via WhatsApphomefinancingsolutions.caCLICK HERE to download Marko's award-winning Mobile Mortgage App!Click Here to access the Government of Canada Budget 2024Click Here for the definition of a First Time Home BuyerClick Here to be redirected to the Home Buyers PlanClick Here to learn more about the First Home Savings Account (FHSA) Hosted on Acast. See acast.com/privacy for more information.

In this episode, host Victoria Collier goes into the world of business valuations, specifically focusing on two essential metrics: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and SDE (Seller's Discretionary Earnings). These metrics are more than just finance jargon—they are crucial for accurately valuing your law firm or any small business. Victoria shares practical insights into how these metrics differ and why it's essential to use both to get a complete picture of your business's financial health, especially when preparing for a sale. Whether you're a seller looking to maximize your firm's value or a buyer evaluating a potential purchase, understanding these valuation tools is key. Key Takeaways 1.⁠ ⁠The limitations of EBITDA and how it can skew business valuation results. 2.⁠ ⁠Why SDE provides a more accurate financial picture for small businesses and law firms. 3.⁠ ⁠How to use both metrics strategically when valuing a business for sale.   About Victoria Collier Victoria Collier is a seasoned attorney, entrepreneur, and expert in law firm sales and valuations. With a background in law and accounting, including her prior military service and CPA training, she brings a unique perspective on the financial intricacies of business valuations. Victoria helps transform law firms into more valuable and sellable businesses, guiding attorneys through life after law.   We want to hear from you! You can leave us a rating and review in Apple Podcasts. Click here and then scroll down the page to the rating and review section. You can also leave us a rating in Spotify by clicking here. Connect with Victoria Collier https://quidproquolaw.com/ Private Facebook Group https://www.facebook.com/groups/1284225722042602 LinkedIn https://www.linkedin.com/company/victoria-collier-coaching/      

On today's episode, we continue with Brandon Moncrief with their discussion on dental practice sales, focusing on the financial intricacies of selling to DSOs (Dental Support Organizations) and private equity. They explore key concepts such as recapitalization cycles, different equity structures like joint venture and holding company models, and how they impact a seller's cash flow and control over their business. Brandon explains the importance of understanding EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) manipulation by buyers and how it affects valuation. He emphasizes creating competitive bidding environments to maximize practice value and protect sellers from undervalued offers. This episode provides detailed insight into how dental professionals can navigate complex financial decisions when selling their practice. EPISODE RESOURCES www.dentaltransitions.com https://www.truedentalsuccess.com Dental Success Network Subscribe to The Dentalpreneur Podcast

On today's episode, we have the first of 2-parts with Brandon Moncrief, a seasoned expert in the dental industry with 20 years of experience as a banker, broker, and sell-side advisor. Brandon explains the current landscape of dental practice sales, focusing on the growing trend of younger dentists selling their practices to DSOs (Dental Support Organizations) and private equity. He highlights how consolidation is shaping the industry, with valuations and interest rates playing a crucial role. Brandon also discusses how practice size, EBITA (Earnings Before Interest, Taxes, and Amortization), and revenue affect whether a practice is sold to a private buyer or a DSO. He provides valuable insights into the financial and structural differences between traditional doctor-to-doctor sales and DSO transactions, emphasizing the importance of timing and financial strategy for practice owners. EPISODE RESOURCES www.dentaltransitions.com https://www.truedentalsuccess.com Dental Success Network Subscribe to The Dentalpreneur Podcast

In today's episode, Boost Your Pest Control Business Value: 5 Powerful Tips for a Profitable Sale, we're diving deep into how you can enhance your business value to maximize returns when selling your pest control company. From understanding key financial metrics to preparing your operations for a smooth transition, this episode is packed with actionable insights to help you boost your company's worth and secure a profitable sale. Whether you're planning to sell soon or years down the road, these expert tips will guide you in the right direction. Welcome to another insightful episode of Living the Wildlife with your host, wildlife control consultant Stephen Vantassel! In this episode, Stephen interviews Bob Williamson, an experienced sales broker who specializes in helping pest control and wildlife control business owners prepare their companies for sale. Whether you're years away from selling or actively considering it, this conversation delves into the crucial aspects of the selling process that every business owner should understand. Understanding the True Value of Your Business One of the biggest misconceptions that business owners have when it comes to selling their companies is the reliance on an accountant's evaluation alone. While accountants are essential for providing tax returns and basic financial data, Bob explains that there's much more to determining the real value of a business. Factors such as revenue stability, the owner's role in daily operations, and necessary financial adjustments all play a critical role in the final valuation. Bob points out that business owners often overlook how much of their company's revenue is tied to them personally. For example, if you are the face of the business and heavily involved in day-to-day operations, a potential buyer may view this as a risk, as revenue could dip significantly after you leave. Understanding how to make your company operate independently is crucial to increasing its saleability. Key Financial Metrics: What is EBITDA? One of the most critical financial metrics for buyers and sellers alike is EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric provides a clearer picture of the company's earning potential by focusing on the core business operations, excluding costs related to capital structure, tax liabilities, and non-cash items like depreciation and amortization. However, Bob stresses that EBITDA is not always a straightforward calculation. Different buyers may interpret the numbers in various ways, and adjustments may be necessary to paint an accurate picture of the company's profitability. For example, if the business is paying for personal expenses—such as a vacation home or a spouse's car—that don't directly contribute to the business, these items would need to be adjusted out of the EBITDA calculation to give a more accurate valuation. The Role of Revenue Stability When evaluating a pest control or wildlife control business, one of the first things a buyer will look at is revenue stability. Is the business generating consistent income, or is it subject to fluctuations? Buyers want to be confident that the revenue stream will continue after the sale, and this is where the role of the owner becomes important. If much of the business's revenue is tied to the owner's personal relationships or expertise, buyers may be hesitant to invest, fearing that customers could leave once the owner steps away. Bob advises business owners to work on making their revenue streams as stable and independent of their involvement as possible. This may involve delegating more responsibilities to employees, building long-term contracts with clients, or diversifying revenue streams. Preparing Your Business for Sale Bob Williamson, who has bought over 40 companies throughout his career, emphasizes that preparing your business for sale well in advance is essential.

 Why is Ken Sim's ABC party trying to silence the integrity commissioner?  GUEST: Kennedy Stewart, former Mayor of Vancouver, current Director of the Centre for Public Policy Research at Simon Fraser University  The Week that Was in Politics  GUEST: Keith Baldrey, Global BC Legislative Bureau Chief Businesses not happy with car free pilot on Water St  GUEST: Chris Kanuka, Chief Operating Officer of Old Spaghetti Factory New 30-year mortgage amortization rule kicks in  GUEST: Ross McCredie, President and CEO of Sutton Group The Wrap - Has Vancouver gone too far in its war on cars & Would you be memorialized as an AI chatbot? Guest: Leah Holiove, TV Reporter and Radio Host GUEST: Sarah Daniels, real estate agent in South Surrey; author and broadcaster Learn more about your ad choices. Visit megaphone.fm/adchoices

GUEST: Ross McCredie, President and CEO of Sutton Group Learn more about your ad choices. Visit megaphone.fm/adchoices

Are you planning to buy an agency as a growth strategy? Or, do you want to make your agency attractive to potential buyers? Today's guest started his agency journey by buying an agency as an exit from his previous career in venture capitalism. He purposely sought out agencies, seeing them as cash flow machines. He looks back on that process and offers some valuable pointers and considerations for agency owners looking to buy or sell an agency in the near future. Nick Fraunfelder is the owner and CEO of Sure Oak Digital Marketing, an agency specializing in SEO, link building, paid media, and analytics. He shares his journey of buying a digital agency and transitioning from a career in venture capital to becoming a business owner. Despite skepticism from friends, his passion for revenue conversations, desire for freedom, and dictating his own future have led him on a highly successful path. In this episode, we'll discuss: Using the MED framework for a successful agency acquisition. Recasting expenses to unlock hidden agency value. Escaping the agency sales trap. Subscribe Apple | Spotify | iHeart Radio Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Why a Digital Agency Acquisition Makes Sense on Paper Nick's decision to purchase a digital agency in 2022 raised eyebrows among his friends, who considered it a risky move in a fiercely competitive industry. However, having spent years in venture capital, making bold investments in high-risk assets, and serving as a CRO with reporting responsibilities to investors and boards, Nick found it liberating to have the autonomy to chart his own course and pursue his passion. When it came time to choose what type of business he wanted to acquire, he immediately thought of an agency, which in his view was a cash flow machine with high client retention rates. Nick's thinking was that agencies typically operate on retainer contracts, offering ongoing services like SEO, paid advertising, and analytics. The predictability and stability of this recurring revenue model make digital agencies particularly appealing to potential buyers and investors. He advises potential buyers to prioritize operational efficiencies. By recognizing and addressing these factors, buyers and investors can capitalize on the stability and predictability that digital agencies offer, ensuring a sound investment with long-term potential. Maximizing an Agency's Value by Focusing on Multiples, Earnings, and Debt The way Nick makes money in acquisition deals is through a concept called M.E.D. (Multiples Expansion, Earnings Expansion, and Debt Paydown). Multiples Expansion: If agency owners can expand their multiple by focusing on a niche, making their agencies more sticky, they'll have better renewal rates and a better price in the market. Earnings Expansion: For this, focus on increasing your bottom line and get rid of unnecessary expenses. Debt Paydown: In his case, Nick did take on debt and set out to pay it in a certain amount of time. For instance, if he buys for $5 million, he would pay it off all in five years and sell it again for $5 million, effectively securing $5 million with minimal initial investment. In his experience, agency owners can get a very good deal if they make themselves attractive by paying attention to these elements. Unlocking Hidden Value by Recasting Agency Expenses The number one rule for Nick buying a business with debt was that the bank gets paid every month. He needed to make sure there was enough margin every month to both pay the bank back, make payroll, and finally, pay himself. This is where buyers should be aware of the importance of recasting expenses for better EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Recasting expenses involves identifying and adjusting non-recurring or discretionary expenses that may not continue under new ownership. These expenses may include one-time investments, personal expenses, unnecessary overhead costs, or expenses related to activities that are not essential to the core operations of the business. Recasting these expenses will allow to improve the EBITDA, making the business more attractive to potential buyers and increasing its valuation. In the context of a digital agency, recasting expenses can have a significant impact on the overall financial health of the business. For example, expenses related to marketing, operating costs, tools, or other non-essential expenditures can be identified and eliminated to improve the bottom line, leading to a higher valuation and potentially attracting more buyers or investors. Uncovering an Agency's Salesmouse Trap The number one thing Nick looks for when thinking about how he could grow an agency after acquisition is what is their sales mousetrap. He considers the “sales mousetrap” as the processes and systems for attracting and converting the majority of their deals. Things he takes into consideration: Is their revenue repeatable? What's their churn rate? How many leads are they getting and what's the close rate? This is crucial because if every deal they land is because of a CEO who goes to every conference and is well-known then there's no “mousetrap” without that person. Many agency owners struggle to diversify their sales channels, often relying solely on their core expertise, such as SEO, and neglecting sales development. Consequently, numerous agencies grow primarily through referrals, which, while valuable, are not scalable. Eventually, agencies must invest in diverse inbound and outbound sales channels. Real sales mousetrap metrics refer to the processes and systems in place that generate leads, convert them into sales, and ultimately drive revenue for the agency. By analyzing these metrics, agency owners can identify areas of strength and weakness in their sales processes, and make informed decisions on how to improve and optimize their sales performance. A well-structured business with established processes, where the owner is not intricately involved in day-to-day operations, is more appealing to potential buyers, as it demonstrates the potential for further growth and development. Lessons Learned from Acquisition Legal Counsel One of the biggest lessons Nick wants to pass on to future buyers is to get good legal counsel during the process and not let lawyers control the deal. According to him, good lawyers are there to scare you of everything that can go wrong in the deal. Unfortunately, they can also delay the process quite a lot. In his case, the process should have been straightforward but the lawyers involved made the process overly complicated, causing unnecessary delays and adding to the cost of the transaction. His advice for both buyers and sellers is to have legal counsel who understands probabilities and can explain potential risks clearly and concisely. Instead of focusing on every possible worst-case scenario, attorneys should be able to assess the likelihood of these events occurring and advise their clients accordingly. In this case, the lawyer's insistence on minor details, such as a payroll cut-over glitch, unnecessarily prolonged the deal process and created unnecessary tension between the parties involved. Look for attorneys who have experience in handling similar deals and understand the client's business structure and objectives. By having legal counsel who is familiar with the industry and the specifics of the transaction, potential roadblocks can be identified and addressed more efficiently, leading to a smoother and faster deal process. The Importance of Understanding Deal Structures and Profit Margins Understanding deal structures and profit margins is vital for agency owners looking to sell their businesses. Deal structures, such as all-cash offers or earn-outs, can significantly impact the amount of money received upfront and over time. Owners need to have realistic expectations about the value of their agency and the potential payout structure they may encounter during negotiations. Profit margins also play a crucial role in determining the value of an agency. A healthy EBITDA margin can make the agency more attractive to potential buyers and help ensure a successful sale. By understanding their profit margins and financial health, agency owners can better position themselves for a successful acquisition and maximize their payout. Overall, navigating deal structures and profit margins requires a combination of financial acumen, legal expertise, and strategic negotiation skills. Agency owners must carefully consider their options, work closely with legal and financial advisors, and maintain realistic expectations throughout the acquisition process. Do You Want to Transform Your Agency from a Liability to an Asset? Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Welcome back to another episode of The Higher Standard podcast, where Chris, Saied, and Haroon dive into the latest in finance, investing, and pop culture. Today, we're breaking down some intriguing insights and bringing a touch of humor to your financial woes. First up, the boys aim to demystify "EBITA" – yes, we know you probably thought it was a hip new tech term, but no, it's just Earnings Before Interest, Taxes, and Amortization. ➡️ And just when you thought this episode couldn't get any more eclectic, we shift gears to the world of entertainment. Will Smith made a heartwarming return to music with his BET Awards performance, Jamie Foxx spills the beans on his mystery illness, and J.J. Redick has some thoughts about the Lakers drafting Bronny James.

En esta nueva edición con preguntas de seguidores, estas fueron las que respondimos:  00:40- ¿Cuáles creés que son las cualidades que debe tener un emprendedor a la hora de arrancar? 02:10- ¿Cómo hago para separar lo urgente de lo importante? 04:26- ¿Cuál es el aporte de una carrera de grado para un emprendedor? 06:38- ¿Qué debo tener en cuenta a la hora de valuar mi emprendimiento para que un socio se sume o compre una parte? Abrazá un propósito. ¡Desafía al mundo e inspirá a otros! Recordá que si querés enviarnos tus preguntas, consultas o sugerencias podés hacerlo a podcast@emprendeconproposito.com.ar También podés seguirnos en las otras redes: Web: emprendeconproposito.com.ar IG: @sebasosaemprende YT: Emprende con propósito También te dejo un resumen del podcast por si querés guardarte algún concepto:  ¿Cuáles creés que son las cualidades que debe tener un emprendedor a la hora de arrancar? Iniciativa, ser inquieto, proactivo. Poder manejar la incertidumbre. Tenés un sueño y una visión y la posibilidad de ver cómo llevarla a cabo.  ¿Cómo hago para separar lo urgente de lo importante? Muchas veces confundimos estos conceptos. Pero a grandes rasgos, según mi experiencia, lo importante suele ser un tema a largo plazo que requiere de acciones diarias para ser llevado a cabo, de hábitos, de perseverancia y consistencia. Planificar y estrategia son centrales en lo importante. Ahora lo urgente suele “estallar” cuando no se trata antes, cuando no se le da el tiempo que debe. Pueden surgir imprevistos, por supuesto, y deben ser tratados como tales.  Nosotros lo que hacemos es bloquearnos espacios para ambos tipos de temas. Tenemos semanalmente un espacio en nuestra agenda para dedicarle a cuestiones importantes y a largo plazo y lo urgente tiene su espacio en la diaria si es necesario.  ¿Cuál es el aporte de una carrera de grado para un emprendedor? La elección de una carrera es sumamente personal. Te invito a identificar lo que te atrapa para poder desarrollar habilidades que te sirvan en el futuro. No hay una sola carrera que sirva para el emprendedor en general. Tampoco debe ser necesariamente una carrera de grado. Creo que es importante ser consciente de lo que uno necesita y de sus propios talentos para poder elegir una carrera.  ¿Qué debo tener en cuenta a la hora de valuar mi emprendimiento para que un socio se sume o compre una parte? Hay varias maneras de valuar un proyecto, la que usamos nosotros se llama “Ebitda” que son las siglas en inglés de “Earnings Before Interest, Taxes, Depreciation, and Amortization”, traducido al español como “Beneficios Antes de Intereses, Impuestos, Depreciación y Amortización”, es una medida de la rentabilidad operativa de una empresa. Muestra los beneficios de una empresa antes de deducir gastos financieros, impuestos y otros gastos no operativos. Es una forma de evaluar la eficiencia operativa y la capacidad de generar efectivo de una empresa sin tener en cuenta aspectos financieros y fiscales. #objetivos #vision #emprendedoresargentinos #emprenderargentina #negociosconvalores #servicio #humanizacion #exito #equupo #altorendimiento #lideresexitosos #liderazgo #liderazgoemprendedor #empresarioslideres #empresariosargentinos #empresasargentina

Depreciation and Amortization always seems like funny concepts to me, but now that I have studied them in more detail I understand why they exist.Today we'll go over the basics of what D&A actually are and why they matter.For recruiting help, join the WSO Academy waitlist today!Contact: investmentbankinginsights@gmail.com

You've heard the expression, “Pennywise and pound foolish?” Here in the States, we could say “Pennywise and dollar foolish.”A good example is when someone is more concerned about the interest they're getting on their savings account than the interest they're paying on their mortgage.Top Tips to Save Big on InterestWhen managing your finances, shopping around for the best interest rates on savings is wise. However, focusing on reducing the interest on your mortgage can have a much bigger payoff. Consider the total interest paid over a 30-year fixed-rate mortgage. It's a powerful motivator to pay off your mortgage quickly.Let's break it down. Imagine you have a $375,000 mortgage at a 7.3% interest rate. Over 30 years, you'll pay over $550,000 in interest, bringing the total cost of your home to around $925,000. With today's higher rates, paying off your mortgage faster is more crucial than ever.Suppose you pay an extra $300 a month on the principal. This might require some sacrifices, but it's worth it. By doing this, you can repay your loan eight years and three months faster and save $176,000 in interest. Paying down the principal each month should be a top priority.Here are four steps to help you achieve this:Create a Spending Plan: A budget is essential. The FaithFi app can help you set up a spending plan using the envelope system, track your spending, and identify areas to cut back, freeing up more cash for your mortgage.Identify Extra Cash: Determine how much extra money you can allocate to your mortgage. Even small amounts make a significant difference over time.Use Unexpected Income: Apply bonuses, tax refunds, or any unexpected money directly to your mortgage principal.Track Your Progress: Set up an online account with your lender to easily apply extra payments and monitor your principal balance. Watching it decrease can keep you motivated.Starting early means more savings that you can use elsewhere. Proverbs 21:5 says, “Slow and steady plodding brings prosperity.” So, begin your journey to an early mortgage payoff now.While at it, consider a mortgage with Movement Mortgage, a Christian company dedicated to making a positive impact. Since its inception in 2008, Movement has donated $377 million to community projects. With 775 locations nationwide, Movement offers competitive rates and a chance to be part of a greater cause. Check them out at: FaithFi.com/Movement.On Today's Program, Rob Answers Listener Questions:I purchased a home nine years ago to provide housing for my mother. I had put her on the mortgage and deed for the home to get it financed. Since then, I have paid off the home. Would it be best to have my mother sign the deed through a quitclaim deed so that I can move ownership of the home back to myself, or could I put the home into a trust I have set up? I want to ensure the proper steps are taken, and the home is handled appropriately after my mother and I are gone.My wife passed away in March at the age of 60. She had retired from her career as an educator but was not yet drawing Social Security. I will turn 63 in July and don't plan to start drawing my own Social Security until age 67 or later since my health is good. Can I apply for Social Security benefits now and suspend my own, instead of drawing on my late wife's benefits, so that mine can continue to grow until I need to start drawing on them?I will be turning 69 years old in November, and my only source of income is my Social Security checks. I have 250 acres of property that I am considering selling. If I sell the property, would I qualify for the 0% capital gains tax rate since my total annual income is below $40,000 and comes only from Social Security? The property was purchased in 2002 for $200,000, and I am considering selling it for around $500,000.Resources Mentioned:Movement MortgageRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.

Join us as we dissect HSBC's recent earnings report to demystify financial statements and explore the valuation process used for banks.From a career perspective, we shine a spotlight on the Financial Institutions Group (FIG) and delve into the unique role of a FIG analyst compared to other sector teams.If you're aspiring to a career in investment banking, this episode is a must-listen! *****FIG refers to the Financial Institutions Group, which is a sector within banking that focuses on providing specialised services to financial institutions.NIM, or Net Interest Income, is the difference between interest earned from assets like loans and interest paid on liabilities such as deposits.Net fee income represents the revenue generated by a financial institution from fees charged for services provided to clients, after deducting related expenses.Net operating income is the total revenue earned by a company from its core business operations, minus operating expenses.EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, representing a company's profitability before accounting for non-operating expenses.DCF, or Discounted Cash Flow, refers to the method of valuing an investment by estimating its future cash flows and discounting them to present value using a specified discount rate.Enterprise Value is a measure of a company's total value, calculated as market capitalization plus debt, minority interest, and preferred shares, minus cash and cash equivalents.Free cash flow represents the cash a company generates after accounting for capital expenditures necessary to maintain or expand its asset base.Price/earnings (P/E) ratio is a valuation metric calculated by dividing a company's stock price by its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.Price/book (P/B) ratio compares a company's stock price to its book value per share, reflecting the market's valuation of a company relative to its accounting value.Price/Tangible Book Value compares a company's stock price to its tangible book value per share, excluding intangible assets, providing insight into the market's valuation of a company's tangible assets.*****Join our next free M&A Finance Accelerator simulation. Perform well and you could be fast-tracked to our partners UBS www.amplifyme.com/mafa Hosted on Acast. See acast.com/privacy for more information.

Colin Mason joins us to discuss the changes to First Time Home Buyers' Amortization and increased RRSP contributions. Ryan Hodge joins us to discuss the National Association of Realtors' settlement down south.

SummaryIn this episode, Aaron Opalewski and E.J. discuss the importance of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in evaluating the profitability and value of a business. They explain how EBITDA is a key number that indicates how much money a business makes and how it can be used to assess the growth and potential of a company. They also highlight the significance of tying executive team compensation to EBITDA growth and the importance of tracking and understanding this number for business owners and key personnel. Overall, EBITDA is seen as a crucial metric for evaluating and growing a business.TakeawaysEBITDA is a key number that indicates how profitable a business is and how much money it makes.Tracking and understanding EBITDA is important for evaluating the growth and potential of a business.Tying executive team compensation to EBITDA growth can incentivize and align goals within a company.EBITDA is a crucial metric for evaluating and growing a business.Chapters00:00 Introduction to Sparking Success with Aaron Opeluski05:22 Evaluating EBITDA and Its Impact on Business Operations11:00 Aligning Executive Compensation with EBITDA Growth

In this episode of Mobile Money by moomoo, host Justin Zacks takes listeners on a comprehensive journey through the labyrinth of financial jargon and acronyms. With a career deeply entrenched in financial markets, Zacks aims to demystify the complex terminology that can often leaves investors overwhelmed and confused. Starting with the basics, Zacks breaks down fundamental market terms such as balance sheets and income statements, providing listeners with a clear understanding of the financial health of companies. He elaborates on key concepts like assets, liabilities, equity, COGS (Cost of Goods Sold), and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), shedding light on their significance in evaluating company performance. Zacks delves into the world of traders' lingo, distinguishing between day traders and swing traders while unraveling the intricacies of common and preferred stocks. He explains how different trading strategies, such as long-only, long-short, and arbitrage funds, operate within the market ecosystem. As the discussion evolves, Zacks explores the colorful language of market animals, from bulls and bears to whales and fish, offering insights into the psychology behind market sentiments. He also ventures into the realm of online trading communities and social media-driven investment strategies, discussing phenomena like FOMO (Fear of Missing Out), YOLO (You Only Live Once), and diamond hands. The episode provides a comprehensive guide to help novice and seasoned investors navigate the intricate landscape of financial markets with confidence. Disclaimer: The opinions expressed are those of the host and any guest speaker, and not necessarily those of Moomoo Technologies Inc. or its affiliates. The podcast is provided for informational and educational purposes and is not a recommendation or endorsement of any particular investment or investment strategy that may be mentioned or covered in the pod. All investments involve risk and the loss of principal is possible. Moomoo is not affiliated with any outside guests or their companies. Information provided in this podcast is general in nature and may not be appropriate for all investors. The moomoo app is an online trading platform offered by Moomoo Technologies Inc. Securities, brokerage products and related services available through the moomoo app are offered by Moomoo Financial Inc., a member FINRA/SIPC. The Information contained on this podcast Is general In nature and has been prepared without any consideration to the listener's investment objectives, financial situations or needs. Listeners should consider the appropriateness of the information having regard to their personal circumstances before making any investment decisions. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. Past performance is no guarantee of future results.  

The Art of Selling a Digital Marketing Agency: Insights from an ExpertOur conversation was a deep dive into the process of selling a digital marketing agency, and I'm excited to share the wealth of knowledge Todd imparted during our discussion.Understanding the Transaction LandscapeTodd began by shedding light on a common misconception about selling a business. Many assume it's an exit strategy, but Todd clarified that for most sellers, it's an evolution and acceleration of their business. He pointed out that the typical clients in these transactions are digital marketing agencies with a net profit ranging from $1 million to $5 million of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).Who's Buying?The buyers, Todd explained, are often private equity firms or companies that are backed by private equity. This is a crucial piece of the puzzle because these buyers are not just looking for a quick purchase; they're looking for a business they can grow into something much larger.The Deal StructureOne of the most eye-opening aspects of our conversation was the financial structure of these deals. Sellers usually receive a significant cash payout, which is about 50 to 70% of the deal's value. But that's not all—they also retain equity in the larger, combined company. Todd emphasized that the goal is for the 'second bite'—the value of the remaining equity—to be larger than the initial cash payout.A Real-World ExampleTodd provided a tangible example of a company that sold for $8 million while retaining a 40% stake. Over time, as the company's EBITDA doubled to $16 million, the value of that retained equity soared, making the sellers' stake in the larger entity even more lucrative.Life After the SaleA key question I posed to Todd was about the post-sale life for sellers. Do they need to show up every day? Do they have a new boss? Todd's response was enlightening. While sellers do have targets to meet, they essentially work for themselves if they hit those numbers. However, if they miss their targets, they find themselves working for the buyers. This dynamic creates a balance between independence and accountability.The Importance of EBITDA and GrowthThroughout our conversation, Todd reiterated the importance of EBITDA, recurring revenue, and client retention. He also mentioned that even businesses with narrower offerings could find opportunities for transactions. It's clear that a strong financial foundation and potential for growth are key attractors for buyers.Seeking Advice and Making ConnectionsAs we wrapped up our discussion, Todd offered advice for companies in the digital marketing space considering a transaction. He stressed the need for a solid understanding of EBITDA and the benefits of recurring revenue and retention. For those interested in exploring potential deals, Todd extended an invitation to connect with him through LinkedIn or his Second Bite Podcast.Next Steps Share your thoughts with a review - https://www.thedealscout.com/reviews/ Let's connect on LinkedIn - https://www.linkedin.com/in/joshuabrucewilson/ Subscribe and Watch on YouTube - https://www.youtube.com/channel/UCBQN_Y3nhDGClfMxCSBDjOg

In times of financial constraint, how can tech companies strike the right balance between innovation and efficiency? As budgets tighten and resources become scarce, leaders must make tough decisions about where to invest their time and money.One strategy that has proven effective for many organizations is platform reuse. By building internal platforms that can be leveraged across multiple teams and projects, companies can reduce duplication of effort, improve time to market, and free up resources for more innovative pursuits.Today's episode guest, Marcus Frödin, VP of Engineering for Music at Spotify shares his insights on how to identify the best candidates for platform reuse, how to communicate the benefits to stakeholders, and how to navigate the challenges of shifting from a mindset of abundance to one of constraint.Drawing on his experience at Spotify, Marcus provides real-world examples of how platform reuse has contributed to operational efficiency and faster time to market for new products like Spotify for Podcasters and Spotify for Audiobooks.Whether you're a tech leader looking to optimize your resources or an engineer curious about the benefits of platform thinking, this episode is packed with valuable insights and practical advice. Join us as we explore the art and science of balancing innovation and efficiency in constrained times."Constraint breeds innovation. And so I think as a technology industry... when you have more tight boundaries, it forces leaders to make more explicit trade-offs." ~ Marcus FrödinIn This Episode:- Introducing Marcus Frödin- Shifting from abundance to constraint and how it affects platform reuse decisions- How to identify the best candidates for platform reuse- Amortization of reuse- Preventing security and vulnerability risks in platform reuse- Communicating platform shifts across the organization- Addressing team concerns during platform changes- Balancing innovation and efficiency in platform reuse- Leveraging constraints to drive innovation in tech teams- Successful examples of platform reuse contributing to operational efficiency- Spotify's platform reuse strategy for faster time to marketAnd more!Connect with Marcus Frödin:- Website - https://leaddev.com/community/marcus-frodin - LinkedIn - https://www.linkedin.com/in/marcusfrodin/ Connect with Debbie Madden:- Website - https://www.stride.build/- LinkedIn – https://www.linkedin.com/in/debbiemadden1/- LinkedIn - https://www.linkedin.com/company/stride-consulting/

Others quietly fund a savings account for you with every income property that you own.  This is known as your ROA, your Return on Amortization. Primary residence owners don't have this benefit. Tenants rent a property from you. To own the property, you got to “rent” the money from the bank. Landlord tipflation: have you ever asked your tenant for a tip? I don't recommend it. Integrity: Now that the statistics are in, I follow up on my 2023 Home Price Appreciation (HPA) Forecast. See how it went. When measuring HPA, I explain why I use existing home prices, not new home prices. The size of a new-build home has shrunk 12-15% in just the last decade. Learn about the surprising correlation between rents and home prices. Be honest. Is it completely different that what you thought? Redfin just reported that real estate investor purchases are breaking records. Find the right income property for building your wealth. Our GRE Investment Coaches provide you with free guidance at GREmarketplace.com.  Timestamps: Welcome to Get Rich Education (00:00:01) Introduction to the episode and a brief overview of the topics covered. The Benefits of Real Estate Investing (00:01:58) Discusses the benefits of investing in real estate, including equity growth, cash flow, tax benefits, and inflation profiting. Tenant-Made Equity Growth (00:02:47) Explains how tenants contribute to the landlord's equity growth through monthly principal pay down. Landlord Tip Inflation (00:06:39) Compares the lack of tipping in the landlord-tenant relationship to other service interactions and discusses the concept of "landlord tip inflation." Review of Home Price Appreciation Forecast (00:09:06) Reviews the accuracy of previous home price appreciation forecasts and discusses the factors influencing the real estate market. Use of Existing Home Sales Numbers (00:13:01) Explains the rationale for using existing home sales numbers in home price appreciation forecasts and discusses the trend of new home construction. Impact of Population Growth on Real Estate (00:17:03) Highlights the impact of population growth on real estate prices and rental demand, emphasizing the significance of demographics in real estate investing. Special Episode Announcement (00:21:33) Announces the upcoming special episode 500 and expresses gratitude to listeners, particularly those from Colombia. Listener Guest Invitation (00:22:43) Encourages listeners to share their experiences and the impact of the show on their lives, inviting them to become guest speakers on the podcast. The surprising correlation between rents and home prices (00:26:07) The correlation between the direction of rents and home prices, and how they move together. Investor purchases breaking records (00:29:21) Insights on the increasing investor purchases, housing shortage, and the impact on the real estate market. Real estate anniversary (00:32:11) Keith Weinhold's heartfelt reflection on his parents' 50th anniversary in the same home, emphasizing the significance of providing people with a home. Commitment and growth in real estate investing (00:33:46) Encouragement to commit to real estate investing, learn, grow your portfolio, and build your empire. Conclusion and disclaimer (00:37:10) Disclaimer and conclusion of the podcast episode. Resources mentioned: Show Page: GetRichEducation.com/491 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  You get paid first: Text FAMILY to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com GRE Free Investment Coaching: GREmarketplace.com/Coach Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Keith Weinhold (00:00:01) - Welcome to GRE. I'm your host, Keith Weinhold. Today, get in on a savings account that others fund for you. Landlord Tip Foundation a follow up to see how my last home price appreciation forecast actually performed. The surprising way that rents correlate with home prices. Investors are now feeling a record share of property buys and a heartwarming 50 year anniversary that I'm in awe of today. An get rich education. When you want the best real estate and finance info. The modern internet experience limits your free articles access, and it's replete with paywalls. And you've got pop ups and push notifications and cookies. Disclaimers are. At no other time in history has it been more vital to place nice, clean, free content into your hands that actually adds no hype value to your life? See, this is the golden age of quality newsletters, and I write every word of ours myself. It's got a dash of humor and it's to the point to get the letter. It couldn't be more simple. Text gray to 66866.   Keith Weinhold (00:01:17) - And when you start the free newsletter, you'll also get my one hour fast real estate course completely free. It's called the Don't Quit Your Daydream letter and it wires your mind for wealth. Make sure you read it. Text gray to 66866. Text gray 266866.   Corey Coates (00:01:42) - You're listening to the show that has created more financial freedom than nearly any show in the world. This is get rich education.   Keith Weinhold (00:01:58) - Welcome to GRE, from Italy's Sorrento Peninsula to America's Florida peninsula and across 188 nations worldwide. You're listening to the 491st consecutive weekly installment of the get Rich education podcast. I'm your host, Keith Weinhold. And when you invest in real estate with a strategy, which is what we've discussed here for over nine years, you can't help but be a profiteer, even a wild profiteer. It might feel like so much money is falling out of the sky that you might need an umbrella to keep yourself from being hit with it. Raining Benjamins. In fact, with one of the five ways that you expect to be simultaneously paid. All right, let's not focus on the equity growth here, which has been torrid the last four years.   Keith Weinhold (00:02:47) - Not the cash flow, which has been slowed lately, not the tax benefits or the inflation profiting benefit. What else is there that ROA you return on when we talk about so much money falling out of the sky that you catch a case of affluenza, that ROA, it's really one of your quieter profit centers. It is like a savings account that someone else is funding for you. Let's say that you check in at your table of your typical mortgage income property, and it shows that it has $400 of monthly principal pay down. All right. Well, imagine if you had a number of economic actors say you own six rental properties, and then you've got six tenants, six economic actors, perhaps people that you've never met. And all six of them are putting 400 bucks a month into a savings account with your name on it. That is $28,800 a year. That goes into your quote unquote, savings account. Yeah, nearly 30 K a year that your net worth is growing by that you hardly even think about.   Keith Weinhold (00:04:02) - And it's all just part of the profitable background noise that you hardly even hear, along with your leverage depreciation, cash flow taxes and inflation, profiting your tenant builds up your equity. This way, even if your property didn't appreciate at all. And again, in your own primary residence, your ROA is zero because you had to work to pay down your principal, your tenants not doing it for you. Now, this account that they're funding for you, it's not as liquid as a savings account, but it's perhaps more like an old bank CD, a certificate of deposit. It's your money, but you can't access it. In a couple minutes. You would need to do a sale, or you could do a cash out refinance and then it's yours. Your ROA is your tenant made annual principal pay down divided by your equity. Okay. And what if you had more and larger properties? Then this small example I gave you the quietly increases your net worth nearly 30 K every single year. Well, a lot of investors have more or a larger properties where you might have 300 K in annual principal pay down alone.   Keith Weinhold (00:05:22) - The more rental properties you own, the more tenants you have that month in, month out. Every single month they fund a low liquidity savings account with your name on it. And think about it. How did you get in this advantageous position? Well, first you educated yourself. You'll know that they will rent the property from you. And how did you get the property? You don't own an outright. That typically implies too much opportunity cost to have the entire value of your property tied up and paid off. Although they rent the property from you, you got to rent 80% of the money from the bank to buy the property with reap the reward, and you might have to use that umbrella to avoid getting rained on. With the financial windfall. And residential real estate investors have been feeling the rain pouring down for the last three four years. Many commercial real estate investors with short term mortgages don't feel the same way now when you're paid five ways, which has been enhanced by inflation since 2021, you don't really need tip inflation.   Keith Weinhold (00:06:39) - Hunt up of that. In fact, have you ever asked your tenant for a tip, or has a tenant ever paid you a tip for providing housing for them? I wouldn't expect it. It hasn't happened to me. In fact, I've never heard of it. But if. If so, tell us about it right into us at get Rich education. Com slash contact. That's our contact page. A tip for your landlord. Now, think about it this way. You've got all these people asking for tips, really, since the pandemic began. And that's when it really heated up. And then the pandemic receded. And yet the tip requests persist. Baristas, delivery people, fast food workers and the parade of other micro interaction participants that you encounter throughout the day. Those people have no shame in asking you for a tip, and that's even if the service is poor. Now, I'm not saying that you should or shouldn't tip them, but they are micro interaction participants in your life because they're just handing you a coffee, or they're handing you another drink that has too many ice cubes in it.   Keith Weinhold (00:07:55) - On the other hand, what you do is you provide tenants with the roof over their head 30 days in a row, 24 hours a day. By buying the property, you educated yourself. You sunk in a down payment. You build up your own good credit to get a loan to provide housing for a stranger. Well, I guess you'll be asking your tenant a new question each month. Would you like to tip me 18%, 20%, or 25%? Landlord tip inflation? No, I doubt that you're really going to do that. But this is the case that compared to the service level from vendors that you interact with at a lower economic level, you sure could ask for this landlord tip inflation. Let me know if it's ever happened to you now, starting at the end of 2021, near the end of each year here on the show, I have provided you with a home price appreciation forecast for the following year. Well, we have got the results now from last year, so let's check the performance.   Keith Weinhold (00:09:06) - And yeah, don't you wish everyone that made predictions or forecast they reliably review them and followed up with how they actually performed. That's what we're going to do here. Now there are some things that I don't like to predict. In fact, I was the guest on Tom Wheelwright's show at the end of last year as his 2024 Real estate predictions expert. And if you watch that, he really had to press me to get my mortgage rate forecast. I told him back then that 6% by the end of the year was my best guess. But that's all it was not formulaic, not a forecast, and not a 100% confidence level at all. So when we talk about Gray's home price forecasts and our track record, let me share a little context with you here. First, so many other people, including some expert peers that I actually respect. They really got home price appreciation so wrong in this era, especially in 2021. That's when many forecast a home price crash 2021. That's the year we had the highest home price appreciation in a long time, nearly 20% nationally.   Keith Weinhold (00:10:23) - And of course, I have never called for any national home price downturn at all, even a mild one. I'm on record here on the show back in 2020 and 2021. That is when I shared the fact that, look, this administration, our elected officials, whether you like them or not, for better or for worse, they don't want to see people kicked out of their homes and living on the street back then. Remember, like mortgage loan forbearance. But at the end of 2021, I forecast a cooling down of home price appreciation. And I told you then that I expected 9 to 10% for 2022. And at the end of 2022, the result was indeed 10% home price appreciation. And then at the end of 2022, we had already seen mortgage rates spike two and a half times from their lows. And again, many said that was going to catch up with us so that in 2023, home prices would just have to sink. No, they didn't sink. That's when I told you that the only housing crash was going to be a supply crash, and the higher mortgage rates actually correlate with higher home prices, not lower ones.   Keith Weinhold (00:11:39) - That's what historically happens. And I said right here on the show that home prices absolutely can't crash. In fact, they won't fall at all. So 0% was my forecast for last year. No gain, no loss. We now have the number in. Only for last year. Yes, real estate statistics can move slower than an Alaskan glacier. Well, it affirmed that indeed, prices didn't fall. They came in up 3.5% last year. That's the result. We'll round it up to 4%. And we maintain a consistent data set here. The same measuring stick. And that is the Anna's national median single family existing home price. Let me just add that of course I'm neither omniscient nor clairvoyant. I'm giving you the best information my research can provide. It is surely possible that I'll get it wrong sometime. I just haven't yet. Now. And you learn something about real estate here. Why do I use only the existing single family home number? Therefore, why exclude no new build homes? Well, in short, this is how you better compare apples to apples.   Keith Weinhold (00:13:01) - New home construction changes over time. And in fact, the trend for the last decade is that new build homes are shrinking in size and are also being built closer together to each other when they're constructed. So you can see how this disrupts the apples to apples comparison. Ten years ago, the existing single family home was about 1600 square feet and is still 1600 today. But ten years ago, a new build, single family home was about 20 300ft². And it's just 2000ft² today, or 2036 to be exact. So yeah, new build sizes have shrunk 12 to 15% in just the last decade. So this is why I use existing home numbers. And by the way, this shrinking trend, this is the opposite of the early 2000 trend. When you saw a super sizing of homes about 20 years ago, that's when the term McMansion really increased in popularity there about 20 years ago. But it's the opposite now. The shrinking new home trend looks to pick up steam because, like I talked about a few weeks ago, affordability is down.   Keith Weinhold (00:14:19) - Remember, it's worse than it's been since George Jefferson was on television 40 years ago. Don't let's not play The Jeffersons theme music again. The deluxe apartment in the Sky. We played that two weeks ago. Moving on up to the East side. I think that's the music that meant Manhattan's Upper East Side. For those uninitiated on that, that has long been one of New York City's most affluent neighborhoods. Yes. Then the Jeffersons were also funding their landlords return on amortization and more. But getting back to today's new home construction, you can. Therefore, you could say that homes are experiencing shrinkflation today from about 2300ft² to 2000ft² in just a decade, and you can easily see that falling below 2000ft² within two years here. Yes, that type of shrinkflation is more impactful than you paying the same for your shrinking jar of prego spaghetti sauce. Now that you understand why existing home sales numbers are used in Jerry's Home price depreciation forecasts sourced by the Nar, you'll recall that at the end of last year, I forecast 4% home price appreciation for this year.   Keith Weinhold (00:15:43) - We'll check back on that in one year's time. Now, that's amidst the fact that I understand we've got high asset prices all over the place right now, almost everywhere you look, a record high US stock market near record highs in Bitcoin and near record highs in home values. Yes, more home price appreciation is likely. In fact, real estate investor purchases are breaking records. I've got more to tell you about that later. In fact, there is even more fuel being poured out of the housing record right now. And this was breaking news a couple of weeks ago in our Don't Quit Your Daydream newsletter. So if you're a reader, you saw it. And that is the fact that population growth drives real estate prices and rents. News broke that we just experienced the largest one year population increase in all of American history, with an astounding 3.8 million. Our population was up 3.8 million people last year, more than ever in previous census estimates of a 1.6 million person increase had underestimated immigration flows. This was reported in Newsweek and elsewhere.   Keith Weinhold (00:17:03) - Now, look, I've been directly investing in real estate since 2002, and I have rarely encountered a supply demand inflection point like this that requires such attention from you, locating an available property that is already more elusive than finding the missing car keys, and it's going to get even more scarce. This has the appearance of an astounding real estate investment window that we are now entering. See, in most asset classes, the future is largely unknown. Like in stocks, futures markets, derivatives, bonds, crypto, gold, oil, all kinds of other commodities. There are so many unknowns there. And real estate has unknowns too. But there are no three giant certainties for residential real estate in America going forward. Number one is more inflation. Number two is a prolonged scarce housing supply. And thirdly, it is astoundingly good demographics that fuel more demand. This third one is newer. And this is what I'm highlighting here. The demographics were already good, but it's just been turned up another notch. All three of these things are inevitable, and so many people try to predict the future and they fail.   Keith Weinhold (00:18:30) - But these three profitable real estate tailwinds for investors are as assured. I mean, there is a third. Is you forgetting someone's name immediately after they introduce themselves? Yeah. The way to get around that is to recite their name back out loud as soon as you meet them. But what I'm getting at is that this is not hyperbolic to call this potentially a once in a decade opportunity. Other high income countries like Japan and so much of Western Europe, they are sweating buckets, thinking about how their nation's aging populations are sending them over a demographic cliff. And besides just the magnitude of the population growth, again, the biggest one year increase in American history, understand that America's largest group of immigrants are working age producers aged 25 to 54, and they are overwhelmingly renters, not homeowners. So this is your surge in rental demand and this immigration surge. It may or may not last, depending on policy, regulation and the presidential election outcome late this year., you know, Jeff Bezos discussed this one time.   Keith Weinhold (00:19:55) - He discussed about how everyone wants to know the future and understand this. You already know more about the future than what you think, whether it's about your future business life or your investing life or your family life, or the way that you're thinking about technology in autonomous cars or flying cars, in machine learning and artificial intelligence, you know, with things that a lot of people, they ask themselves a question about the future, and they ask, what will be different in ten years? Well, there's nothing wrong with that question. In fact, it's a perfectly good question. But instead, ask yourself the opposite. What will be the same in ten years? Yeah. What will be the same in ten years? Now, black swans aside, in real estate investing, it is indeed those three things more inflation, a prolonged scarce housing supply, and astoundingly good demographics for rental demand. That's what will be the same. And now you have the basis for a sustainable wealth strategy. The bottom line is that even if it comes to a sudden stop, the addition of an all time record 3.8 million Americans in one year, that has left an indelible mark on real estate demand, the economy, and nearly all of society.   Keith Weinhold (00:21:33) - Residential real estate investors are going to own a scarce asset that everyone will need. You're listening to get resuscitation. It's episode 491, and that means that we're just nine weeks away from what is going to be a special, unforgettable episode 500. It's an episode that you probably want to listen to more than one. Coming up in two months on May 6th. And I'll tell you, I really know how to put the performance pressure on myself for May 6th, don't I?, hey, I really want to give a shout out to our great listeners in Columbia. Last month, I spent nine days in Colombia and eight days in Ecuador exploring a coffee farm, checking out urban sites and doing some Andes mountaineering, taking in the best of steak, coffee, chocolate and fruits to. And I've got to say, when Colombians learned that I was there, you Colombians were amazing at reaching out, making me feel welcome, telling me how the show has helped you. Ecuador. And it wasn't quite the same. I love you and your beautiful nation, but frankly, I didn't hear much from the Ecuadorian listeners.   Keith Weinhold (00:22:43) - I don't know why there was a big difference there, but I'm appreciative of some of the South American listenership for a show that's based on about 95% US real estate here. Speaking of listeners and the show, at times, we have listeners here on the show. If gray has impacted your life and you'd like to come on the show and tell us about it, I and our audience like hearing from you and how an abundance mindset and real estate investing has changed your life right into us. At our contact page again, get rich education. Com slash contact and tell us about yourself. We've had some really cool listener guests here on the show, like Grammy Award winning music producer Blake La Grange, the inventor of a home fitness system, Sean Finnegan, and even my former coworker that used to have a neighboring cubicle right next to me, back when I had a day job in a fertile who became a listener. If you think you're just maybe a boring accountant with a spouse and two kids, but Jerry has influenced you, well, you're exactly who we want to hear from a write in and let us know.   Keith Weinhold (00:23:53) - Coming up next, hear the surprising correlation between rents and home prices. Then investor purchases are breaking records in more. I'm Keith Weinhold, you're listening to get rich education. You know, I'll just tell you, for the most passive part of my real estate investing, personally, I put my own dollars with Freedom Family Investments because their funds pay me a stream of regular cash flow in returns, or better than a bank savings account, up to 12%. Their minimums are as low as 25 K. You don't even need to be accredited for some of them. It's all backed by real estate and that kind of love. How the tax benefit of doing this can offset capital gains and your W-2 jobs income. And they've always given me exactly their stated return paid on time. So it's steady income, no surprises while I'm sleeping or just doing the things I love. For a little insider tip, I've invested in their power fund to get going on that text family to 66866. Oh, and this isn't a solicitation.   Keith Weinhold (00:25:01) - If you want to invest where I do, just go ahead and text family to 66866. Role under this specific expert with income property, you need. Ridge lending Group NMLS 42056. In gray history from beginners to veterans, they provided our listeners with more mortgages than anyone. It's where I get my own loans for single family rentals up to four Plex's. Start your pre-qualification and chat with President Caeli Ridge personally. They'll even customize a plan tailored to you for growing your portfolio. Start at RidgeLendingGroup.com. RidgeLendingGroup.com.   Matt Bowles (00:25:48) - Hey, everybody, this is Matt Bowles from Maverick Investor Group. You're listening to Get Rich Education with Keith Weinhold. And don't quit your daydreaming.   Keith Weinhold (00:26:07) - Welcome back to Get Rich Education. I'm your host, Keith Weinhold. As I like to say, history over hunches, it's easy to have a hunch about how something works in real estate. But take a look at history and see what really happens. History over hunches. So to that point, you might be surprised at the correlation between the direction of rents with respect to home prices.   Keith Weinhold (00:26:31) - Now, the cost of rent has grown over the last 12 years. That's not news to anybody, but many think that rents and home prices move inversely. If demand for home purchases falls, then rents rise, right? No. Instead, they move together. When rents move up, home prices tend to move up to. Rents rose gradually from 2012 to 2020, and they rose rapidly since 2020. Well, home prices, they behaved in a similar way. They also rose modestly from 2012 to 2020, and they rose rapidly since then. Rinse and home prices have therefore been positively correlated. And in fact, I've been investing long enough to remember that when the home price bubble burst from 2008 to 2010, where rents fell a little. Then to an underscore my point some more, both rents and prices bottomed together around 2011. Yes, I think most real estate investors believe that this positive correlation is less likely than that. A movie about Barbie could ever reach $1 billion in sales. Well, that happened too.   Keith Weinhold (00:28:01) - So I simply look at what really occurs when I do my research. It's history over hunches, and that's why these should not be mind blowing discoveries. Just look at what really happens. So if your tenant balks that rents are rising, well, you know what? Home prices are probably rising to the bottom line here with rents and prices being correlated, is that whether it's to rent or own, wait a million homes when the economy grows, that is the real history over any other hunch. Now, as a wealth building show here I am empowering you with the information that you need to improve yourself. You can't follow the herd. You've got two choices. Either you can be a conformer or you can build wealth. Your wealth is not coming from anyone else. Chances are a rich uncle won't be helping you. In fact, getting an inheritance remains a rarity in the US yet as of 2022, data from the Federal Reserve shows only about a fifth of American households had ever received an inheritance at all. And it gets worse.   Keith Weinhold (00:29:21) - According to NYU, the most common inheritance amount is between 10,000 and $50,000. Yeah, that's enough to fund your life for one average month, or maybe one good month, depending on how you're living. The good news is that great listeners and others are getting the message, because last month, Redfin reported that real estate investor purchases are breaking records. Yes, investors bought 26% of the country's most affordable homes in the latest quarter ended, and that is the highest share on record ever. We've got all these on record ever sort of things that we're talking about on the show today. Yes, Redfin let us know that low priced homes are increasingly attractive to investors in today's environment. Redfin agents in Florida and California report that investors are the ones hungry for homes, but they can't find properties to purchase due to an ongoing housing shortage. But we can help you with available supply here at gray. But these overall record investor purchase figures they are, according to a Redfin analysis of county home purchase records across 39 of the most populous US metro areas, not just a couple states.   Keith Weinhold (00:30:45) - There are a lot of investors out there fighting for properties, said a Redfin premier agent in Orlando, Florida. There just aren't enough properties to go around, which is putting a cap on how many homes investors can buy. In fact, single family homes represented over two thirds of investor. Purchases. So congratulations, you are acting. You are making it happen in this canyon, this chasm, this divide that's opening up between the haves and have nots, shrinking the middle class. You are getting on the right side of that. I want to tell you more about being an investor shortly. But first, I have somewhat of a heartfelt real estate anniversary for you, and it has to do with my own family. March 5th, 1974 is a special day. You might note that tomorrow will be the 50th anniversary of that special date. Now look, I can remember every single place that I've ever lived. The modest single family home that I grew up in, college dorm rooms, a pathetic pool house, efficiency apartment in Westchester, Pennsylvania, a condo, a house as an adult.   Keith Weinhold (00:32:11) - Can you can you remember every place that you've ever lived? There's a good chance that you can. It's how intimate, really and important real estate is to your life. And think about how significant you are. You're providing people with a home that they will always remember. This is key. Think about how this contrasts. If you supplied the world with software packages or patio furniture, that stuff is forgettable. You're doing something significant when you help abolish the term slumlord and provide other people with that clean, safe, affordable, functional housing. Well, tomorrow my parents, Curt and Penny Weinhold, will have lived in the same home for 50 years. 50 years in the same home for my parents in sleepy and remote Appalachia. Coudersport, Pennsylvania. I asked my dad about that recently, and he said that when the paperwork with the lawyer was finished, he recalled walking into the house and happily shouting. He was tired of renting. When I visit my parents annually in Pennsylvania, I am still sleeping in the same bedroom of the same home, on the same block in the same small town where they still live in the first home that I ever remember.   Keith Weinhold (00:33:46) - Great job Mom and dad. You committed. You married before you had my brother and I. You're still happy, you're still healthy, and you're still together. You're even in the same home I grew up in. I'm in awe. I won the parent lottery five decades in the same home. You know where the creaky spots in the floor are of that old Victorian place. And when my brother is there, the four of us know right where to sit in our same spots at that same kitchen table. And, you know, as tomorrow is an amazing 50 years there. There are some lessons in this. Find out what the great things in life are, learn about them and commit to them. Like me trying to be the highest man on earth recently, or you buying the property or getting married. So many of the most successful people get diligent and learn and then make lasting commitments. Being a real estate investing devotee is a commitment. Each property that you add is a small commitment itself. I encourage you to act if it resonates with you.   Keith Weinhold (00:35:03) - Learn and grow your portfolio. There are always going to be naysayers that try to hold you to the confines of conformity and mediocrity. So fear, uncertainty. Telling someone that times are uncertain is like telling someone that they're breathing air. Well of course, no kidding. Each condition, uncertainty and breathing air have persisted every day of your entire life. In the year 1920, ten kilos of gold would buy you an average home. Today, ten kilos of gold will buy you an average home. Home prices aren't high so much as the value of the dollar is simply down. Homes are not overvalued by the most timeless financial measure. Gold mortgage rates near 7% are still below. Their long term average. So go forth and build your empire. You can either teach a man to fish or give a man a fish. Here at Jerry, we do both. We teach them in or women to fish at get worse education. Com which this show is a part of and then a great marketplace. Com we give a man a fish.   Keith Weinhold (00:36:30) - We have the supply of housing. You have access to the national providers with the lower cost real estate that makes the best rentals. And starting about two years ago, we added free investment coaching here, giving you that fish and making it easier than ever to get started or get your next property. Play a game worth winning and commit to something worthwhile. If you haven't yet, I encourage you to look into that at GREmarketplace.com. Until next week, I'm.   Speaker 3 (00:37:03) - Your host, Keith Weinhold.   Keith Weinhold (00:37:05) - Don't quit your day dream.   Speaker 4 (00:37:10) - Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of yet Rich Education, LLC exclusively.   Keith Weinhold (00:37:38) - The preceding program was brought to you by your home for wealth building. Get rich education.com.

In this episode, Ryan Burklo and Alex Collins discuss how money is taxed in retirement. They emphasize the importance of considering both current and future taxation when making financial plans. They provide a historical overview of federal income tax brackets and highlight the impact of major events on tax rates. The hosts also explain the difference between marginal and effective tax rates. They introduce the concept of the amortization of an asset strategy and compare the outcomes of interest-only and principal-and-interest approaches. The episode concludes with key takeaways and a question for listeners to consider. The beer of the day is Enchantments Hazy IPA from Icicle Brewery. If you would like to learn more about this beer, please visit their website https://iciclebrewing.com/beers/enchantments-hazy-ipa-apex/ If you would like to learn more about Quantified Financial Partners, please visit our website www.beerandmoney.net   Takeaways Consider both current and future taxation when making financial plans. Understand the historical context of federal income tax brackets and how they have changed over time. Differentiate between marginal and effective tax rates. Explore strategies like the amortization of an asset to optimize tax efficiency in retirement. Diversify your assets to have flexibility and access to different tax strategies. Chapters 00:00 Introduction and Mindset 03:10 Understanding Taxes in Retirement 05:03 History of Federal Income Tax Brackets 10:21 The Introduction of 401(k) and Tax-Deferred Accounts 13:01 Marginal vs. Effective Tax Rates 15:08 Amortization of an Asset Strategy 19:36 Scenario Comparison: Interest Only vs. Principal and Interest 22:40 Scenario Comparison with Reduced Asset Value 26:17 Takeaways and Question of the Day

Today we dive into the fascinating world of business growth and wealth creation with Anthony Scaramucci and Jay Abraham, where they share invaluable insights into the art of income and wealth creation with minimal risk.SHOWNOTES:Jay Abraham's Background: Discover Jay's journey from a struggling young adult to a marketing legend, his experiences across multiple industries, and the lessons learned along the way.Acquisition as a Growth Strategy: Jay and Roland Frazier's approach to business growth focuses on bottom-line moonshots through smart acquisitions, minimal risk, and maximizing EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).The Power of Relationships in Business: Leveraging existing relationships and trust to accelerate business growth and reduce risk.Resilience and Overcoming Obstacles: Jay shares powerful stories and principles on resilience, highlighting the importance of seeing problems as solutions to someone else's bigger challenges.Innovative Thinking and Business Growth: Leveraging lifetime value and preemptive advantage, understanding the importance of pattern recognition and diverse thinking.The Concept of 'Acquire-preneur': This unique term coined by Jay and Roland refers to entrepreneurs who achieve exponential growth through strategic acquisitions rather than starting from scratch.The Intersection of Wealth, Success, and Failure: Jay offers profound insights into the definitions and interconnections of these concepts, stressing the importance of continuous learning and growth.LINKS AND RESOURCES:Access Our All-New "Podcast Mini-Workbook" For This Episode!Revisit Our Top 25 Podcast EpisodesFor More In-Depth Resources, Visit Our Knowledge CenterInterested in Colsulting? Work With Jay For Consulting Inquires: jay@abraham.comFor Podcast Inquiries: ultimateentrepreneur@abraham.com

Today I want to tell you about our sponsor for this episode,  Olsen  Dental  Chairs!‍‍Imagine you're a dentist and you spend your whole day around the chair...   Well, Olsen has over  40 years of experience in making those long hours as comfortable as possible for both the dentist  and the patient! ‍If you're a dental professional looking for high quality, cost effective, dental equipment, check out Olson dental chairs!Click this link and mention this episode for a limited time FREE installation with your purchase!‍Guest: Rhonda KalashoPractice Name: TruGlow Mordern DentalCheck out Rhonda's Media:Practice Website: https://glomoderndental.com/Email: rhondakalasho@glomoderndental.comInstagram: https://www.instagram.com/dr.rhondakalasho/Facebook: https://www.facebook.com/dr.rhondakalasho‍Other Mentions and Links:‍Tools/Resources:HubSpotHubSpothttps://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwjjuryZn42DAxXKB60GHWZzBfYYABAAGgJwdg&ase=2&gclid=Cj0KCQiAyeWrBhDDARIsAGP1mWSmA-wnuIpk3AgrP6Q4LOTx7tZpTWkt9X_vnRvjxA6TpHggzdgGerIaAoxFEALw_wcB&ei=6xJ6ZaSIDeGC0PEP-5GPaA&ohost=www.google.com&cid=CAESV-D2LJrATp36pfi4qgGRCTKgaEIqiHzgIfDNWGIzDXafM7fx84q8a9o3MfxOBrhzqXvVlJtKltzCsaJOIqike632B7HWKepVIukxm2wCNCtob28pZUpKag&sig=AOD64_0lSViVPzY6D95mLKOsmbn2Bwj18A&q&sqi=2&nis=4&adurl&ved=2ahUKEwjkqbaZn42DAxVhATQIHfvIAw0Q0Qx6BAgJEAETrainualPearl (AI software)TurboTaxGoogle AdsCompanies/Brands:BBCMSNBCForbesZocDocInvisalignTerms:HMOMedi-CalROI - Return on InvestmentEBITDA - Earnings Before Interest, Taxes, Depreciation, and AmortizationWet DentistryOL - Oral LeukoplakiaAI - Artificial IntelligenceSEO - Search Engine OptimizationPPC AdsLLC - Limited Liability CompanyS CorporationC CorporationW-2CavitronPiezoLocations/Establishments:UCLAUCSD‍Host: Michael Arias‍Website: The Dental Marketer Join my newsletter: https://thedentalmarketer.lpages.co/newsletter/‍Join this podcast's Facebook Group: The Dental Marketer Society‍‍What You'll Learn in This Episode:Dr. Kalasho's journey from graduate to successful entrepreneur owning multiple dental practices.Understanding contracts and the importance of developing sound business acumen.Insights into partnerships and dental practice acquisitions.Using dental insurance as a financial safeguard while maintaining quality care.Implementing AI in dental practices: from patient care to insurance dealings.The role of tax planning and smart investments in building wealth.Please don't forget to share with us on Instagram when you are listening to the podcast AND if you are really wanting to show us love, then please leave a 5 star review on iTunes! [Click here to leave a review on iTunes]‍p.s. Some links are affiliate links, which means that if you choose to make a purchase, I will earn a commission. This commission comes at no additional cost to you. Please understand that we have experience with these products/ company, and I recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something. Please do not spend any money unless you feel you need them or that they will help you with your goals.‍Episode Transcript (Auto-Generated - Please Excuse Errors)Michael: All right. It's time to talk with our featured guest, Dr. Rhonda Kalasho. How's it Rhonda: going? Great. Excellent. I'm in Los Angeles. How can I, how can I fight this weather? We got sun. Michael: I know we got, sun yesterday Rhonda: Yeah. Oh yeah. You're, You're not far. got rain ever. There was car accidents everywhere. Cause nobody knows what to do. Yeah. Car accidents everywhere. Exactly. There's traffic. There's like a little splatter of rain and suddenly we don't have driver's license. Did it rain a lot in San Diego or no?Yeah. It rained a lot. It rained a lot. My parents live out there. I live in Los Angeles, but I mean, we had a lot of rain yesterday, but we love it. I love it. I eat it Michael: up. like a nice change of pace of everything. We all feel like we, what do we do? We got to shut down and everything like Rhonda: that.I'm that person that puts up the Christmas decorations the day after Halloween. So now it matches the weather. Michael: That's awesome. So if you can tell us a little bit about your past, your present, how'd you get to where you are Rhonda: today? Yeah, absolutely. I own, uh, multiple practices under one brand called True Glow Modern Dental.Uh, I did end up owning, uh, an HMO practice straight out of residency, which I loved a lot, but, uh, I ended up, it was a partnership that didn't go well. And it's because I didn't really understand contracts at the time and, So I ended up, uh, just selling my shares of that and then purchasing my first office in Hollywood, in 2018, in 2020 I opened up my, uh, Beverly Hills location and now I'm opening up my Calabasas location. I'm pretty busy right now. I have two little ones at home. But what got me into practice ownership is, uh, I really thought that there was a market deficit in dentistry where it's essentially affordable care, but also at the same time, high quality. and I wanted to utilize some of my business background because I was an undergrad as an undergrad major, I was a business administration, major.And then I picked up some of the prereqs before UCLA to finish up. To get into dental school, but I had a good business acumen before I began my dental journey. And I knew that there was, a really great market for potential of membership style dental offices, which don't operate like an insurance, but more like how you would see traditional memberships, businesses operating where you have a fixed monthly amount, and then you are given, Reduce fees or whatever for a service.And so we were able to do that. Um, I also own my own dental laboratory. So my costs are, fixed in a way where I can produce high quality care, but at the same time, affordably for my patients as well. so we're, uh, kind of a niche brand of dentistry. we do have patients that still come in with insurance.We concierge bill their insurance and the patient gets billed or gets paid directly. Um, that's part of my brand. I just wanted to grow and develop this, business perspective that I had even as an undergrad. and now, lo and behold, I actually really love dentistry. I'm still a wet handed dentist, so I do practice all the time. and you can see that on my Instagram page. I do some, uh, pretty crazy video, full mouth rehab cases. I learned that at my residency, which I did at UCSD. And I recommend everybody actually do a residency. Super important. All my, colleagues and associates that work under our brand have done residencies. that's what got me here. I love. Not only the practice of dentistry, but the business, of dentistry as well. Michael: Nice. Okay. So it's good. Let's rewind a little bit. You said you immediately out of residency, you jumped into practice ownership. You owned HMO. Crazy me. Yeah. Why, Why did you do that?Well, I Rhonda: did go into, office kind of thing a little bit. I did that for like two months and it just didn't fit my style. I wanted certain equipment, I wanted certain things when I would work and it was just the bare bones. I remember being asked to do endo without a rubber dam and without all of a sudden it was just like, I was just kind of.Especially when you're out of dental school you're, you're kind of still into the standard of care and you're really wanting to make sure that you're practicing that as such. And I remember the corporate setting was very much a patient push and making sure that they finish the treatment, make sure that they get the treatment done, make sure that you hit your quotas and all that.And it's all respectable. That's fine. Everybody needs to be aware of numbers, but it became more of less. Quality of and more of just pushing dental treatment out. Um, I quickly ran away from that, but found a great office that I liked a lot. They did accept HMOs and HMO style Cal office. was nice and you can still be very profitable in that market. It's not like you need to be all fee for service to be profitable as a medical or HMO dental practice. It's just a different practice setting. but they're still very profitable practices. And so if people are out there looking at maybe buying in or buying, only a fee for service office.Fee for service offices are incredibly difficult to maintain and hold because as soon as a patient gets insurance, they may leave you, um, as opposed to an insurance based practice, even in the worst times of economic issues But for fee for service, you may find that if you're just collecting free for service, you'll have a lot of waxing and waning of the times and then you'll have these tides of Being really busy and then not being really busy.and that could be really detrimental, but I got into the HMO practice, and then I was offered a partnership, um, because I expressed actually my, my goal of practice ownership. So that's how I got in so quickly. Um, so I, expressed that during my business, meetings with them that I wanted to get involved in as being a practice owner.Um, so I quickly got into that. but the, the way that it was laid out was of course, I just kind of went and read the contract myself. I didn't have a lawyer read it over. I didn't. And so what ended up happening at the end is I put a lot of my own equity in it, but didn't get a good return.and that's a pro, I mean, I always. Call my career as a, constant trajectory of falling forward because I'm constantly making mistakes. And I don't know everything that I'm doing every day. That is a hundred percent. This is the right way of doing it, but a part of building yourself as a professional and an entrepreneur is making mistakes and being okay with that, but you have to learn and learn why it was done and not reproduce the same mistakes.Michael: Interesting. Okay. And it's interesting your, point on fee for service and insurance. I feel like right now, a lot of the practices we're trying to kind of transition out of insurance, right? We're saying, Hey, I want to drop all that because I can't, you know, they're, judging our, work, when we do that.But when it comes to the other way around, how you mentioned it, Hey, if you start off fee for, so what do you recommend Rhonda? lot of the times we want to just start off hitting the ground running fee for service, and a lot of the times. Some people recommend, hey, get some assurances, then slowly drop them off.And then completely go fee for service. Rhonda: Yeah. Absolutely. I think if you build it, they will come depending on how you're going to build it. If you want to build it as a fee for service practice, you may want to just stick to it. It does create a fire under your butt to make sure that you're keeping your practice going.Because if you kind of get into this. The cushion of insurance and insurance does offer cushion, although sometimes we deem them as being, subpar and they're not paying us or reimbursing as well at the end of the day. if it is an 800 crown, if you're taking two hours to do that, yeah, that's.And this is for the new dentists. your, your chair time should be a thousand dollars an hour. If that's what you want to see it as. And that's just basic, right? Like just if you think about how much you're going to have to spend in overhead, dental overhead is incredibly expensive because hygienists get paid a lot.Dental office managers get paid a lot. Dental assistants nowadays, especially in Los Angeles, their average salary is 23 an hour. That's average. So that's a lot. And by the way, they're very accustomed to getting, full benefits. So they do have our, in our practices, they have health insurance, they have gym memberships.They have a lot of stuff that, that is given. 401ks. They have dependents that can get health insurance in our practice. We run it like a corporation and people are very accustomed to that. Even if you're a small dental office, you have to offer these kinds of things. So to that, you have to say that the overhead clearly is very expensive and a lot of your, third party payers, like your dental laboratory is a cost.And the equipment and supplies is also a cost. So yeah, insurance paying you 800 is very low, but if you are, able to do a very nice quality prep, remove all the decay and all that in like 30 minutes, it's not that bad. And that's better than making, not making no money in that time.there is a misconception also that. being really busy means that you are making more money. And those sometimes those HMO practices who are super, super busy, they're pumping out patients left and right. At the end of the day, the fee for service person who saw two patients as opposed to 15 patients is still making the same amount.So it doesn't mean that you have to be very busy, but you just have to create this niche brand or a market for someone to want to pay a fee for service as opposed to going out with insurance. But if you're going to do insurance, a couple things it's good to build the practice, with insurance, if you have nothing there, but if your intention is to drop those insurances, then maybe not sign up for a lot of them because a lot of the times patients will.Leave you as much as you are a great dentist and all of us love to pat ourselves on the backs and they'll go, we're so amazing. No, one's going to leave us, but I'll tell you, they'll leave you so fast. So as soon as you tell them, okay, so your copay is not 300 anymore, you gotta pay 2, 500 for this crown.They're going to run like the wind, right? So like they're going to go to, they'll look to Yelp or something and try to get. Something better, but I'm saying that they're what you have to understand is if you're going to be a fee for service office, you have to provide a service that is very much, reflective of the amount you're asking this person to pay.So you have for every beck and call, you have to offer 24 hour concierge service. You have to talk to them. you have to understand these people, 2, 500 for a lot of people for many people is a lot of money. And that's one crown, right? So if you're going to offer this kind of service to them and your fee for service and not offering any other benefits to them, even if it's payments that you're offering, they are paying this whole dollar amount rather than going through their insurance, which may be paid through their employer.So you have to create your business models are completely different. So you have to be okay with it. You can meet the same bottom line. You can meet the same profits, but when your HMO got to go faster, you got to move faster. You can't just dilly dally, talk to the patients too long, blah, blah, blah. But you also need to treat them like people.It's very important. People also don't want to be treated like cattle, right? they're still paying whatever they're paying for that. So they're going to come in and they want to be respected in the time, but you have to be mindful of your time if you're doing HMO and even PPO.But even PPO insurances don't pay well either, some of them do, some of them pay well, but you still have to. Make sure that you are being aware of you almost have a calculator in your head that your should not be wasted because the overhead is too much and you'll find yourself in a very bad zone your PNL statements where you're seeing your profits kind of dwindle.So just making sure that you're aware of that and speed it up if you're HMO PPO fee for service you can kind of create a little bit more of a pampering effect. Yeah. Michael: Interesting. So then, fee for service, like you said, pampering effect, HMO, or like Medi Cal, right? You'd really, or not Medi Cal, you'd really have to hone in on your efficiency.Oh, yeah, Rhonda: especially when they're first out of dental school, like you got, I remember three hours to do a crown nowhere in private practice is three hours for a crown going to be efficient for anybody, like anybody, not the practice, not the patient. The patient's experience is going to suddenly start to, I remember numbing the patient so many times in dental school because it would fade.I would like, you know, and then they're like, ah, they're constantly moving. It's, It's just, you don't want to. You have to make sure that their experience and what they're feeling in that moment, all that is always in your mind. And this is, that's why dentistry is so hard. You're like a psychologist.You're like a business owner. You're like their friend, but then also their doctor. And then you're sitting with multiple hats and still trying to work. in a kind of a bloody messy environment and work at the millimeter, you know, like, so is a tough job, but it's a, it's also one of the best fields, to be in.Michael: Yeah. Yeah. Interesting. Okay. So then if we fast forward a little bit more, you talked about your partnership, how it did not go well. and you mentioned that you put a lot of equity, but you didn't get a good ROI out of it. Right. Specifically, where did you feel like you missed the mark? Where you're like, yeah, if I would have seen that and you want to kind of give us advice or warn us about that.Rhonda: Yeah. I think I wouldn't, what ended up happening is it was. I was the only one working there. Okay. So there was nobody else there. And so as I was building up this practice and bringing in all the things that I have done for my own brand, I was, buying dental equipment.And leasing it out under my name and doing all this others and not under the corporation and not under the partnership. It was only for me. I was putting in all this dollars, all this money marketing was spent through me. I started my own Instagram page. I started the own Facebook page. I was doing so much and then bringing up this practice and its value.And then when I was, uh, told to. Buy in, I was bought in at the practice value that I brought in. Right. so I put in the money and then bought myself back. Right. And so It didn't work when I got paid out because I got paid out before the money I put in.So it was, I had built it up to what it was and it was just the way that it was laid out. It was really laid out in an unfair way. definitely just kind of taking advantage of a person just. That is maybe not of the nuances of contracts, especially between partners, but just as a pearl to people is that you have to make sure that you have a lawyer reading any agreement that you sign and that they can kind of give you the ins and outs of that and understand that even, you know, you're going to Google and all that kind of stuff.it may be true because especially when you're first out of school, you don't have a lot of money to hire a lawyer or somebody to help you out with that. But even if you have maybe family member that may help you out for your charge to read some of the contracts is going to help. I just got a little, you know, I got a little too pompous and said, Oh, this is, it sounds great.I can have 40 percent ownership and you never get really majority, but, uh, no, I didn't have, I actually had 11%. but I'm saying that sometimes it could be offered You're never really going to be offered a majority. Anybody who owns a practice should not give actually majority.To a colleague or an associate, this is still your baby. This is still your brand and your corporation. you don't want to give a majority because you still want to hold, a lot of the, um, the voting rights and all that would fall ultimately onto you. You don't want your brand to be carried on by someone else, if you want somebody invested.Into your practice because you never wash rental car, right? And you never put glass in a rental car. You kind of just give it to them as all beat up. But if somebody is going to invest in your practice and they've been with you for many years, giving them some sort of equity or practice ownership in the practice itself or in the corporation is actually a great idea. but, uh, they have to also be vested with you, uh, financially and in time, both monetarily and in time. Michael: Okay. Gotcha. Interesting. So then right after that, you decided, all right, let's see, I'm going to start my own thing or were you, you worked for a private, right? You worked for a private practice?I worked for Rhonda: a private practice, uh, for a little bit, maybe like two months. And then I did for like another three, all together, maybe six months after graduating, I, uh, ended up getting into this partnership. but then as soon as my partnership was settled out and I got whatever I could get out of it, I used that money to buy a practice that wasn't doing well at all.It was actually a bankrupt practice, a beautiful location, what I noticed about that practice is they had a really. Robust hygiene department, their patients were coming in regularly. They were seeing about, you know, six patients a day in hygiene and they had four hygiene days. but I noticed the doctor's schedule was dead because the doctor wasn't there.So they had this essentially just a sitting body of water it's like, well, if you have a good hygiene department, there's no reason why a restorative. section of that practice should not be thriving as well because those patients are coming in regularly. You should be doing exams.You should be following up with their care, but they were just coming in for cleanings and then just being off on their way and coming back in another six months. But was no doctor to sometimes even treatment plan them in that day. It's because that just that doctor does. Felt like dentistry was not for them.they didn't like practice ownership at all. And, um, I, at that time had met a broker at a convention at the CDA conference. And he was, uh, like, you know, kind of kept in contact with me, gave me all these, uh, potential offices. This one was just cheap because of its, uh, you know, annual, salary that it was receiving and it's was very low.Or even it wasn't, wasn't good at all, but it was a practice that I could buy relatively dirt cheap. And, but when I got in there, they had carpet, hate carpet in a dental office. If you guys have it, maybe get rid of it, but. it's so gross.Okay. But, but the, the lobby, I remember the chairs are like these dental, these like not dental school. They were like school, like schoolyard chairs. And then they were like propped up by magazines and, um, the front desk person didn't even acknowledge when I walked in there and it was like, just like the walls were blue.It was just like such a. ugly thing. But I, had a vision and I had a goal in mind. I wanted to buy a practice. So this was for all intents and purposes, a great find. It had a great hygiene department. It needed a pick me up. and it's slowly, but surely over the years. And I went from, uh, that office 2018 to 2020 in the middle of a pandemic opening another one.So it's fully doable to ramp up even a shitty practice, but you can still ramp it up if you have the vision in mind there. But so it was considered an acquisition, there's build outs and there's an acquisition. that one was an acquisition because it was still owned by someone.But When I got in there, you have an option of actually keeping on the staff or you can, find new ones, right? Or you don't have to keep everybody on when you actually find yourself on the first day of an acquisition, you present everybody there with a letter. And generally they're not knowledgeable that the practice was even being sold. that's common practice, uh, that. we don't spook people out, right? When sometimes when even patients hear that there is a new practice that's coming in or owner that's coming in, they may leave you're acquiring a practice, a lot of the times they don't inform them until the practice is acquired and then you can send out a bunch of, emails or letters out to the patient and then to the staff.So in my case, when I came in, I was not in love with the staff. I didn't like. That the front person didn't acknowledge that I was there, didn't even look up from her computer. I didn't like that the hygienist, uh, was not using cavitrons or was just basically using prophy cups. It wasn't like scaling or any of that.I ended up just firing everybody and starting fresh. again I had a vision of someone when you walk the room, they're bubbly, they're happy. They are the first introduction to your practice before they even, even on the phone, you can hear them. You know, you want somebody that is going to drive in patients and that.really somber person in the front plays a damper on the mood everywhere. It's like, try to DMV. Do you, everyone look happy? No, it's like you just, everyone's pissed because the person in the front is not the Walmart reader. Like I walk in and I love it. Right. I'm like, yeah, we're here. Okay. Like that's right.Yeah. You're at a shop. Like That's what you want. And what I felt like this is definitely a branding issue. And when you're building a brand, this is stuff that you have to think about. You have to think about the smell. You have to think about the sights. You have to think about the colors.These are all very much, uh, part of even dentistry, because dentistry is a small little business. So you have to know, you can't just pop in with ugly carpet and propped up, uh, chairs. Michael: Yeah, it's interesting that you did that though, because I guess like advise, it's like, yeah, you know, here's the thing.When you do an acquisition, a lot of the times the team may feel betrayed by their original doctor and saying, how come you didn't let us know this, we've been with you forever. We would have understood this. Right. so there's that trust that kind of like deteriorates. Then they kind of start having the fear, like, oh my gosh.Who's this doctor? Who's this young doctor? I know more than her, right? Especially those older office managers. Like they're like, Oh no, no, no, no, sweetie, please can tell you how to do this. Right. And then they try to run it. But letting go everybody at once, how'd you do that? or could you have coached anybody like, cause the hygienist sounded like they were still really good cause they were keeping people on.Rhonda: Yeah. so, for the front person, honestly, I just felt like she didn't even their AR reports cause you do a due diligence on the practice when you're acquiring it their. AR, which is accounts receivable, was very high. So they were collecting zero copay and just kind of letting the person know.I mean, I did, I'll say this, I did give them a chance, right? Like talking to them, um, about maybe collecting copays before the patient comes in, talking about deposits and immediately they shut it down. If someone is not on. your same mindscape and they're not, actually thinking on your level and that they want to build this practice, they're going to be a plague on the practice.So you should immediately just squash it, right? Because if that person is not like. Excited. Oh yeah. There's a new person here with all this energy wants to ramp it up and they're feeling it. They're like, yeah, okay, let's do it. Yeah, we definitely. there, and when you bring up, a report to someone cause I remember sitting next to this, the front office person was also there.It wasn't, she didn't have an office manager. It was a very small skeleton practice. Actually it had no dental assistant. Um, so the person in the front actually, uh, worked as the dental assistant and the person in the front. So I wouldn't say I fired, but everybody, I mean, there wasn't really much of anybody.There was an associate that popped up and did like an OL every 10 months, right? Um, like, which is a. You guys all know dental ever. You're on. Well, like a little tiny filling like every day and then didn't even take out all the amalgam. It was just like, I don't know what the hell I was looking at, but it didn't have a huge, practice.It wasn't like I fired 11 people. I fired three people that were unnecessary. Right. That didn't meet the. And then when I, if I talked to the hygienist and I told, you know, look at the, there are studies on. arrest in their studies on laser. Do you? I'm going to pay for you to take some of these courses. I want you to learn how to do a laser debridement.I want you to use the air polisher or whatever, all these other things that you can provide rather than a prophy cup. Maybe just learn how to scale a little bit, right? Because there's all this plasma this person's tooth. Use the cabotron, use the piezo. And oh, you know, I don't know, you know, I'm really good with this tool and literally how it holds one tool for every surface of the tooth.And it's like, okay, if you're not ready, To change and be part of this, essentially look at where we are now. I had a goal in mind, right? If you weren't ready to hop on my back and I, and fly with me, I'm going to leave you on the ground. You're done. Right? Because then you're going to be a plague on my practice.You're going to be a splinter and I can't move on. Right. I can't get to where I need to be. if you're trying to get from here to there with the same people it's not going to happen. And even when you get to there, you grow, you get more people So my practice has grown significantly from those three people I fired.I now I'm 50 employees deep, right? And every one of them is very much attuned to our mission and our practice philosophy. And we, we really spend a lot of time in making sure that everyone is on the same page. Michael: Okay. So that's interesting. That's really, really good then. So. I know you mentioned that, oh, how long have you been in practice Rhonda: ownership for?Uh, 2018. Michael: How many years? 18, 19, 20, 21, 22, 23, 24, 25. Five? Five years. Five years. Man, how many practices do you have currently? Like working and running? Rhonda: Uh, now three. Yeah. Three. Los Angeles. Los Angeles. No. Oh, well, Beverly Hills. They're all in Los Angeles. So I just stick in this area. Um, they're Hollywood, Beverly Hills, and Calabasas.Jeez. Michael: And that's such a saturated. So how did you do it? Why? here? Like Rhonda: why? I like torture. It's nice. It was, It was terrible. Yes. You said saturated. Absolutely. In my building alone on the same floor, I have four dentists. Michael: Yeah. It was great. So then me ask you, why did you decide to do that? How did you make it grow so much so fast to where you're like, we're three and I think you're on another build out, you said, right?Rhonda: I'm on another build out and then, yeah, I'm on a build out right now. I'm actually in the middle. I got permits for it yesterday, so I'm super excited. So that I have a team that's going to come in and just do our same look. We have a systems always we try to reproduce it and then I have a projection for 2025 is an acquisition.So I'm currently just looking at potential acquisitions as well. Michael: these aren't build outs like ground Rhonda: up. No, they're not The next one is going to be an acquisition because, uh, these buildouts in Los Angeles, the thing is that you can't really own buildings in Los Angeles. They're either grandfathered in, they're incredibly expensive.Like we're not talking about like, I'm sure Nebraska parts of it is expensive, but like, you know, there's some parts like Arkansas, whatever people are going to buy these massive buildings. Right. And that's amazing. I love that. I'm married to this city. Okay. Because I married my husband's out here.My family's out here. I would love to get into more of a less saturated environment. I bet you, I can kill it somewhere else. Right. But I am now getting tortured and killed here, but I've grown to realize, um, what is needed in this kind of market and facilitate a growth.Um, and a lot of it has to do with. front loading, a lot of marketing right off the bat and then getting a good SEO, doing PPC ads, um, doing even mail marketing campaigns. You're kind of just throwing everything out there and then seeing what sticks because a lot of times you may have mail marketing not work out, but in some locations it works out because the demographics still checks her mail in Hollywood.Mail marketing for me does not work. Right. But PPC campaigns and local ad campaigns with Google works out for me, having my, website, really honed in on keywords and all that kind of stuff and having good SEO that's going to manage. the traffic that's coming in is really important for Hollywood for Beverly Hills.There's an older demographic there's a bunch of homes around there. these male marketing campaigns and even being in magazines or whatever it is, those tend to actually work. we still, of course, run our Google. Everybody still uses Google or we're going to, uh, aside that we're talking about other things.Facebook. It's still working with that. Calabasas is the same. These locations are, if they're mostly have homes around you rather than apartments and stuff like that, because I think the apartments, it's a very transient, uh, living situation. You may have some people coming in for a couple of months and leaving mail marketing campaigns don't always work out. these, uh, physical, uh, news articles and whatever it is, may not be working out, but, uh, I also have found, um, being in Hollywood, I was reached out a couple of times by magazines, right? And so like our lure, BBC, MSNBC, I was on Forbes for Hollywood's, they called me the most stylish dentist.I don't know. Okay. But I think it sounds like I was a stylish dentist, but I think they were talking about practice when you were getting into the article, but like the style, the brand was there and it was recognized by Forbes, um, as being a nice office, a nice dental office, and then offering some services to patients that were.Really high tech. But anyhow, we digress on that. But I'm saying that these are some things that I was reached out to. And then my online presence grew because they put me in online articles, right? So they kind of all just fueled each other. And it, and sometimes some people Are not as lucky in that area to find out what works right away.But you want to try different marketing strategies. Um, not every practice is going to feel a good strategy with one as opposed to another. I remember when I was in Orange County. So my first, uh, practice location was up there. HMO one, but That one did really well with like those, but this was a couple of years ago.I don't know, but those apps where you can kind of make your own appointment like ZocDoc and, Oh yeah. Uh huh. Uh huh. Yeah. So they were doing really well there with that. Same with Hollywood because there's are like techie, uh, younger generations, right? Like, so you may want to look, put yourself on one of those platforms where they can get onto your, appointment scheduler and put themselves in there because people don't want to call.Some demographics don't want to call you. Right. And so like there's a younger generation who completely functions a hundred percent on their phone. They emailed a text. They don't even have laptops, right? They're all, everything's on their phone. So even optimizing your website to look good on a cell phone is also incredibly important.You can hop onto different dental offices and you'll see that maybe their website for the phone is not easy. It's like a mess. You have to shrink it really low, move it up this way. It's like, you can't find their number because it hasn't been optimized for mobile. these are some things that you definitely want to look into your practice to make sure that you are marketing to the right group.Who's your demographic that you're trying to aim for? And, uh, what keywords are you using for your SEO? If you're doing primarily Invisalign, where do you rank on the Invisalign when somebody puts Invisalign in? I'm picking on Arkansas. I don't know, but there's a line Arkansas, right?Like I want to go to Arkansas too. Michael: You're like, man. Okay. So that's interesting. When it comes to this, you said you front load a lot at the beginning of marketing. I guess specifically, how much did you front? Rhonda: Yeah. A lot, uh, 15, 000, um, in marketing the first month. Michael: Uh, every month for or just the first month, Rhonda: every month for almost like a year.But now in terms of marketing, we're way past that. We're at like 30, 000. It's still going to grow. It's not going to get smaller, but you have to think about it as your ROI. You're spending that much and you have to think, okay, how much am I spending per patient to come in? if you spent a 15, 000 and let's say that the person, the patient came in and the price on their head was 150, but they came in.And they spent 2000, they spend a thousand, whatever it is, you have to be able to know your, your numbers of the practice and, and be able to decipher if some of those marketing campaigns are helpful. And you have to also make sure you train your staff and be part of your systems to ask the patient, whoever is calling, how did you hear about us?Because that is going to be key for you not to overspend marketing. Oh, Google. Okay. Well, let's put a tick on Google. website referrals. At this juncture, I'm actually now, this is what also people need to understand. You can get really high in marketing, but you don't need to spend that amount every single month.Right? There's some points where you're noticing you're getting 50 new patients. Okay. That's amazing. A month for practice is great. 50 new patients is wonderful. Should I fall back on my marketing? Maybe not. Just don't spend more. Okay. And then what we found is we're getting new patients, but mostly now it's referrals.So I'm actually haven't spent more on marketing in the last year. It's just been kind of the same. So over time, when your brand develops and your practice develops, you may not need to spend this money all the time. You may not need to add more fuel to the fire. it can carry on in itself by creating the environment that a patient will want to come back and see you guys and maybe refer a family member because referrals are above all the best.They are the best. That's why reviews. You always want to make sure your reviews are very good. you really want to get everyone involved and gamify your reviews and gamify your practice so that everybody in the practice is aiming towards making sure that your ratings online is always at its best.and it's because this unfortunately in our society will hurt you the most. And it doesn't matter who you are, what your name is, blah, blah, blah. one time I referred, I know he's an excellent doctor. He's amazing actually. he's on a study club with me and does all this stuff. I was referring him over to someone and I went on his Yelp and I'm like, Oh no. I know. He's really good. What are these on there? Right. And then like, I was like, Oh my God, that's his reviews. And then it makes you even question if this guy is good. Right.And you're like, no, he's awesome. What is that? And then, uh, you know, that's going to make your practice suffer. And it's also going to, uh, definitely create a taste in someone's mouth when they come into your practice that they immediately think you're going to be bad, but have to always maintain those reviews.You always have to put a positive, self out there, even if you're having super crappy day, which a lot of us do, obviously we, this is why also this practice lifestyle is stressful because you can have a crappy day, but you have to walk in and be all smiles. It is good. No one is dying next door. You know, like, Oh, like, you know, you want to be really, I didn't come inand, and give that kind of persona.And it really helps build up those reviews and just make sure that you are constantly also asking for them. You don't want to just assume they're going to leave you a review because the person who's going to leave you the reviews that when you don't want leaving a review, but the person who was like, you guys are awesome.You should ask them. Even as the dentist, I don't know why we think we're above that. We're not above that. This is still, this is your practice, right? this is what you spent your money and your time and your blood and your self, your all that on. And if someone is, saying, wow, and giving you some credence on your practice, they love it.Then ask them, you know, I know it's going to take a lot of time out of your day. I really appreciate if you just do that. Um, if you don't want to, no problem, but I just like, it really helps us out and humble yourself. you should always humble yourself in life and in your practice and in your chair is nothing that glorified you above anybody else.You know, stoop down to always look at the patient when they're talking to you, not at their mouth, but in their eyes. sit at their level. Don't stand above them, bring them up when you're talking to them, not lay them down. You, these, this is never have a opinion of yourself.You certainly just always to just level yourself up with your staff and with your patient. And I parent promise you, these reviews are going to read for themselves because now you are. You're real. you're not fakely asking, Hey, you want to leave us a review?And like you were just a dick to them the whole time. Now you're asking for, right? so make sure you keep up with that the whole time. Michael: Yeah, I like that authenticity, right? So then when it comes to, you mentioned there's something, you do, you have a system that you like to reproduce. When it comes to these practices, what is it? Rhonda: Yeah, so the systems are and they can vary between different offices, but systems it's such a word that's so loaded because a lot of times like we have systems and what does that mean? Right? What is the system? So a systems is. the time a patient calls your office and even before that, how did you get that call?How did that call get intercepted? how did the person answering the phone answer that phone? How are they put into your scheduler? How are they followed up with? These are systems. So the step by step by step by step of getting a patient ultimately in the chair in your office.going over your treatment plan and now appointing them for the treatment because you have to appoint them. You can't just say, I got you in the chair. I did a profi and now you're gone. That's not how you need to reappoint them. an order for that patient to be successful and in your chair and having, and I don't want to, I'm going to just divert a little bit, a patient. value comes from their recare and recall and reemergence of them back into your system. One person comes in and you never see them again. That was not a successful new patient encounter. That patient goes on an inactive list. That patient is essentially Lost. You spent marketing dollars on them.You spent all the time on them. You paid the hygienists to see them. You did saw the assistant. You spent the time with them and it's lost, right? You need to create a systems. where a patient that sits in the chair reappoints themselves for either follow up cleaning or follow up care or whatever it is and stays within your practice, right?And so they stay within your active patient pool. Uh, we consider like active patients, someone who's been at least in within the year or 18 months or whatever it is. So keep mindful of that. This patient needs to be seen for recare. don't call it recall because recall sounds like something's wrong with you, right?So I would recommend that you say recare appointment rather than a recall appointment. and then I give that that's credit to UCLA's Dr. Goldstein practice management class, because I remember that was a, one of the slides on his, uh, I never appreciated that until practice where I remember saying, we'll see you on recall.And then the patient was like, Is it like, wrong, like something is wrong, like it's recalled, like, right? So, like, no, no, we just need to re carry, right? And so it's re carrying, the vocabulary is also important. Anyways, these are all part of systems, right? The vocabulary, the way you speak, the way you point them, the way you follow up with them.And it needs to be laid out. in a way where it's not printed and in a binder and put somewhere collecting dust. Welcome to 2023. Everything is online, right? Everything is online. Choose whatever system you want to do, but make sure it's accessible to everyone and that everybody knows your systems from the front office to the back office.Everyone needs to be aware of the way that your practice runs and how you would handle certain situations. Because once you, as a business owner, Leaves or moves away or whatever not leaves like physically leaves this practice and now comes into a perspective where I'm at where I'm mostly Managing I need to make sure people are aware of how to handle a situation without calling me a hundred times, Michael: right?Yeah, gotcha. So you created this systems how like you just record every single thing you're doing and you're like, what's working? And then pivot To do better and better and better, or? Rhonda: Absolutely. And how many times I've been asked, like, can I have a layout of your manual?And I would say, honestly you need to look at your practice, from a specific, It's, not subjective, it's really objective the way that you should be looking at your, practice. Like, so you need to handle each and every practice needs to be done differently. And so if one thing works in one practice may not work in another, but make sure you are understanding what worked.What marketing tactics worked, uh, how your systems are, the way that you walk a patient to the back, do you have a routing slip, because that's part of our system. Some people don't have routing slips, where it says next visit, where it says when the last cleaning was. These are part of systems.Does a routing slip work for you? Do you want your assistant to write your notes? If they want to write your notes, you have templates for them. These are specific things that may work for practice to practice, but see what works for you and get that written down somewhere. That's accessible. And not only in your head, it needs to be transcribed because it's going to be ultimately in order to scale and not only to scale, you can remain in your own practice, but maybe over a couple of years, add more dental chairs, maybe by the building, whatever it is, you don't have to go into multiple practices.There is some dentists. that are very near and dear to me, which I love, and they're killing it with one practice, giant location, like one location. It's huge. Right there. They see as many patients as I do, but just in one location. And so they've scaled. their practice, their one practice to an extraordinary size and they have, worked their systems to what works for them.Michael: Gotcha. Interesting. Okay. So then the systems is tailored to like the practice, obviously, right. But at the same time. I guess it's more like we have to start documenting everything right now and then kind of continue to pivot and pivot. Yeah. Rhonda: There's a lot of like, HubSpot may have something, but like also there's something called training all that also has like an online app, um, that you can do.There's a lot of sites that you can actually create, uh, like leaderboards. For your practice, and that's really good because you can put quizzes on there, like when you're training someone, how do you train them? Do you physically have to train them? Like, because some people learn differently, you may need to, um, Train them, physically show them, show them pictures, show them video, and then maybe take a quiz at the end, like, you know, so yeah, there is a lot of systems that you can look into that may fit your practice, different pricing and all that kind of stuff, but I would recommend is online stuff, app, you can even right now, you can find a bunch of developers that can develop stuff just for you. I utilize a lot of AI in my practice. and, with the development of AI, I've utilized AI where a lot of people have never even thought to use AI, but I've gotten people who develop AI to specifically build stuff for my practice that I think that has helped. I've paid them out and it's just mine. It's not anybody else's. You can't actually go buy it, but I thought this is what I need. And with the cloud based systems, like, so I used to have All my practices were on a server and we were using, but they're now cloud based systems, like, I'll use a different word besides systems but practice management systems, So practice management systems, sometimes it used to be on a server. Now you'll find a lot of them on the cloud. The cloud based servers are a lot better because you can really build. softwares within them that can function for your practice and specifically for them. And you can get the coding and all that kind of stuff.You can find them on like squad help or whatever. Um, but you'll, you can find people who are really good in development and build stuff for your practice. Um, and then that goes into even apps. Maybe you can make an app for all your videos and your, web, information, like your employee handbook and stuff can be on there too.Michael: What have you created with, so far Rhonda: for your practice? So far I have a robot that calls all the dental insurances that are, because we're out of network and we still have concierge dental. So the concierge style. So even if they have dental insurance, we tell them, sure we'll get a breakdown for you and send it out.Ri

Q: Could you explain how the interest rates and terms offered by SBA 504 loans stack up against those of other available financing options? Thanks, Dameon If you'd like to meet with Beau to talk financing, book a call here ( http://bookwithbeau.com/ )

To access a FREE collection of resources, go to www.TheMaverickVault.com   Commercial loans are the lifeblood of projects in real estate, providing the capital necessary to turn ambitious visions into tangible properties. Today, we'll break down the jargon, explore the types of loans available, and provide valuable insights empowering you to make strategic decisions that can turn your investment dreams into reality. Key Takeaways From This Episode   Key distinctions between residential and commercial loans The intricacies of property amortization and balloon payments Differences between recourse and non-recourse loans Crucial factors that determine commercial loan interest rates Helpful tips for mitigating risk as a passive investor     References/Links Mentioned Average Down Payment On A House: Here's What's Typical   Are you a passive real estate investor seeking financial freedom? Almost daily, new headlines break on the latest financial market upset. Now is the time to get educated on how to strategically invest in commercial real estate for long-term financial freedom. Grab your copy of “How to Passively Invest in a Changing Economic Environment” Go to…www.MavericksInvest.com    Want to keep up to date on the commercial real estate market, trends, investing tips and know what Neil is buying right now? Connect with him at www.AgentOptional.com, and be sure to register for his newsletter.    Connect with Neil Timmins on LinkedIn. If there is a topic you want to know more about or a guest that you would like to see on the show, shoot Neil a message on LinkedIn.      About Neil Timmins Neil is a commercial real estate syndicator, published author, and podcast host.   Neil's entry point into the Real Estate industry came after a few short years in banking. Recognized by the Wall Street Journal as a Top 100 team and the #1 REMAX agent in Iowa by the age of 29, Neil had solidified his role as a force in the industry.   Having completed hundreds of Fix & Flips, Wholesales, Wholetails, Novations, and Owner-Financed deals, Neil longed to quit forfeiting time for dollars. After building a portfolio of single-family rentals to produce passive income, he found the strategy to be anything but passive.   Neil, however, didn't go looking for his first commercial deal, he actually stumbled into it. Since then, he has refined the process of analyzing and buying commercial properties that produce stellar cash flow.   Neil has been involved in over $300,000,000 in real estate transactions. While his holdings in commercial asset classes include apartments, offices, mobile home parks, and self-storage units, his passion is industrial property. Neil now has verticals in residential real estate, multiple commercial asset classes, brokerage, publishing, and this successful podcast.   Neil and his wife, Emily, are the proud parents of three active teenagers. Those who know Neil say he is a competitor by nature, whether for the biggest fish on a deep-sea fishing trip, the best ribs at a barbeque, or playing football back in his day at his alma mater, the University of Nebraska at Omaha as a Maverick. Neil is always up for travel, spending time on the water, and of course, meeting people interested in learning about and investing in commercial properties.   Click here to see video of the podcast. 

On today's 2nd-part episode, we're diving into a riveting presentation by Jake Conway titled "Results are the Bi-Product." Jake, with a profound background in Operations Analysis and a journey that led him to empower dental practices, unveils invaluable insights into personal growth and operational excellence in the realm of dental practice management. Jake navigates through the operational metrics and objectives tailored for diverse sections of the practice including the front office, back office, hygiene, and doctor's case acceptance. The narrative underscores the necessity of incessant monitoring and analysis to decipher the narratives behind any discrepancies in goal attainment. As the discussion steers towards financial literacy, Jake elucidates EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a pivotal metric in assessing the financial vitality of the practice. The conversation doesn't halt there; it extends into the territories of cash flow, profit, and available funds, highlighting the imperative of comprehending financial statements to adeptly manage the financial reservoirs of the practice. Make sure you go back and listen to yesterday's part 1 episode. Meanwhile, expand your horizons by joining DSN at: https://www.dentalsuccessnetwork.com EPISODE RESOURCES https://www.truedentalsuccess.com Dental Success Network Subscribe to The Dentalpreneur Podcast

Why would depreciation and amortization be different on the Income Statement vs the Cash Flow Statement?Contact: investmentbankinginsights@gmail.com

On today's episode, we have a compelling collaboration between two business-savvy dental experts: Dr. Mark Costes, founder of the Dental Success Institute and host of the Dentalpreneur Podcast, and Dr. Paul Etchison, the author of "Dental Practice Hero" and creator of the Dental Practice Heroes Podcast. Hosted by Dr. Alan Mead, the owner of Mead Family Dental in Saginaw, MI, and host of the Very Dental Podcast Network, this episode delves into the dynamic world of Dental Service Organizations (DSOs) and their evolving role in dentistry. Dr. Mark Costes and Dr. Paul Etchison possess an unparalleled understanding of the dental business landscape, and their willingness to generously share their knowledge sets them apart. In this thought-provoking conversation, they discuss the current state of DSOs, a topic that has gained significant traction in the dental community in recent years. Some of the intriguing questions explored in this wide-ranging discussion include: What exactly is a Dental Service Organization (DSO)? How are DSOs evolving and reshaping the dental practice market? Why do DSOs continue to consolidate in the dental space? What makes dentistry an attractive investment for private equity firms, serving as a hedge against riskier ventures? What types of dental practices and practitioners are DSOs most interested in? How has the level of student debt affected DSOs and the consolidation of the dental market? Can clinical excellence be effectively incorporated into a DSO model? Are DSOs more drawn to specialty groups, and which specialties are particularly appealing? Will DSOs extend their reach to rural areas, and what implications might this have? Before diving into the engaging conversation, Dr. Alan Mead thoughtfully provides definitions of key terms such as DSO, EBITA (Earnings Before Interest, Taxes, and Amortization), same store growth, private equity (PE), and recapitalization. This ensures that all listeners can fully grasp the depth of the discussion. Don't miss this captivating episode where these knowledgeable dental experts provide valuable insights into the ever-evolving world of DSOs, as they discuss how this transformative concept continues to shape dentistry. EPISODE RESOURCES https://dentalpracticeheroes.com https://www.truedentalsuccess.com Dental Success Network Subscribe to The Dentalpreneur Podcast

Today I want to tell you about our sponsor for this episode,  Olsen  Dental  Chairs!‍‍Imagine you're a dentist and you spend your whole day around the chair...   Well, Olsen has over  40 years of experience in making those long hours as comfortable as possible for both the dentist  and the patient! ‍If you're a dental professional looking for high quality, cost effective, dental equipment, check out Olson dental chairs!Click this link and mention this episode for a limited time FREE installation with your purchase!‍‍‍Guest: Noel LiuPractice Name: Secure Dental GroupCheck out Noel's Media:‍Websites:Secure Dental - www.secure-dental.comSecure Dental Group - www.securedentalgroup.comNoel Liu DDS - www.noelliudds.com/DentVia - https://dentvia.com/‍Social Media:Facebook - https://www.facebook.com/noelliuddsInstagram - https://www.instagram.com/drnoelliu/?hl=enYoutube - https://www.youtube.com/c/drnoelliuLinkedIn - https://www.linkedin.com/in/drnoelliu.Twitter - https://twitter.com/DrNoelLiu‍Phone: 815-670-2923‍Other Mentions and Links:Wells FargoEBITDA - Earnings Before Interest, Taxes, Depreciation and AmortizationLevin Group - Dr. Roger LevinScheduling InstituteDEO - Dental Entrepreneur OrganizationDr. Marc CooperCardone VenturesBrandon Dawson‍For more helpful tips, strategies, ideas, and marketing advice:Instagram: https://www.instagram.com/thedentalmarketer/‍The Newsletter: https://thedentalmarketer.lpages.co/newsletter/Facebook Group: https://www.facebook.com/groups/2031814726927041‍‍‍My Key Takeaways:If you're thinking about practice 2 and beyond, be sure to maximize your primary practice first!Plan out your revenue breakpoints and what you will do when you reach them. Without a plan, you will lose progress while growing!Know the numbers! KPIs, P and Ls, and Productions and Collections are essential to keep close tabs on for improvement of your practice.Expanding to a new practice is 80% mindset and 20% strategy. Don't get too bogged down in strategizing!Emotional and logical decision making BOTH have a place in business. If your decisions are too logical, it will be hard to take action. If your decisions are too emotional, you may lack to planning and strategy needed for success.Try getting to know your team and their individual goals, values, and aspirations. This will help when aligning with the practice's values and ensure a sustainable culture!‍Please don't forget to share with us on Instagram when you are listening to the podcast AND if you are really wanting to show us love, then please leave a 5 star review on iTunes! [Click here to leave a review on iTunes]‍‍Episode Transcript (Auto-Generated - Please Excuse Errors)Michael: Alright, it's time to talk with our featured guest, Dr. Noel Liu. Noel, how's it going? I'm doing very well, Michael. Thanks for having me. No, thank you for coming on and being a part of the podcast. We truly appreciate it. If you don't mind me asking, tell us a little bit about your past, your present, how'd you get to where you Noel: are today?No, it's a great question. You know, it's like, um, when they say, when you climb the ladder, it's, it's this way. So this is how I, my, my whole journey with the whole career has been, so we started, I, I graduated back in 2007 from N Y U College of Dentistry and, uh, I was working for a corporate and I think I lasted about four and a half years.Stuck to one job, just stuck it out. Didn't quit, just, just kept going. And then we opened our first practice in 2012 in Peor, Illinois, and that's where we are based. So from there, we just, uh, my wife and I, so we are both dentists. She graduated in about, you know, 2011 ish. So, you know, I was in 2007, she was 2011.And then we just started, you know, our own little operation. And, uh, since then, I think it's been a, it's been a journey. Lots of ups and downs, lots of mistakes. And uh, right now we, we are, we are a few locations here in the Midwest. Nice. How many locations? So we're currently, we are operating out 11 locations.Wow. Michael: 11 locations then. Okay, man. So, real quick, rewind a little bit. You were working for corporate and you said you stuck it out for four years. What were you having to. Noel: Deal with. Yeah. Great. Great question. Because right now, when I look at some of the forums and I see some of the new guys coming out, they're like, in know, job hopping.They just, if they don't like something, they just quit. Mm-hmm. Right. For me, it was more about sticking it out my own principles, my own, uh, moral and ethical value and like, you know, whatever it is, we just take the most, extract the most out of it and, uh, just take it and, and just take it as a learning experience.I always saw positivity in whatever situation I was put in, so I. That was, you know, like one of those things. And the reason I emphasize on that part is because that is what I've been, the feedback I've been getting, they're like, oh wow, you stayed for five years. You know, you didn't, you didn't wanna quit, you didn't wanna go somewhere else.Because all my, most of my colleagues, I wanna say all, but most of my colleagues, they actually, they kind of like, you know, went from job to job. Michael: Got you. So what were the things you had to deal with? Noel: I mean, it was like, you know, when you come out of school, you are looking for mentorship. Mm-hmm.You're looking for somebody who you can hook onto and, and take your first year or two, maybe like, just write it out in a sense that under an umbrella, under somebody's wing, like you're not making any kind of mistakes, especially with the state boards, with the chart writing, with, you know, all the codes that we have for our dental, Time after time, I've seen like a lot of people make those same mistakes again and again with procedures and how efficient you need to be, what your KPI's supposed to be.So it's like none of those metrics were like, you know, like laid out. So we just went in and just gunned it down and just, just learned and just, you know, learn how to swim yourself. So that was a good experience. I think I, I took it as a positive thing for myself because it gave me lots of insights.Mm-hmm. You know, about like what kind of person you are and, and how do you withstand stress and, and multitasking. Michael: Hmm, that's true. From, from that corporate position, what were some systems that you decided like, oh, I like this, I'm gonna take it into my practice. And then what were some systems where you're like, I never wanna do this, to my team, to my own Noel: practice?Well, the system that I really loved about that place was, um, scaling and growing, all about the numbers production, And all the good aspects that would help you propel to the next level. That's what I liked about that place. And on the same token, if you look at what I did not like about the place was at what cost do you get that production at?What cost do you get that elevation? how are your staff treated? is like almost like a weighing kind of like a scale, if I were to say that way, because in order for you to do this, You gotta sacrifice this. So my whole mindset was, how do I do this without doing this?Right? So how do I get the good out of it without doing, without having to carry the baggage of the bad stuff? So that was the whole idea, and that's how when we found a secure nl, we wanted to make sure that our staff and our team are well recognized and they are well deserved, that they are there like, you know, for a reason.Michael: Mm-hmm. When was it where you were like, okay, I wanna start my own practice? Was that in dental school? Was that before or was that during Noel: corporate? Great, great question was way before, way before dental school. So I come from a family of dentists. my dad is a dentist from back home and I wanted to make sure that, you know, I carry on his legacy because he, we are four siblings, right?Mm-hmm. So he wanted one of us to be a dentist. And unfortunately, uh, three of my siblings, they, they hate dentistry. So they didn't, they don't want anything to do with dentist training to know where the mouth, right. So mm-hmm. I was like, all right, cool. I'll take the torch and I'll run with it. so I went to dental school and that's how I decided that I will, I will need my own practice because that is the, the mindset that was instilled when we were kids that you gotta have your own business and you know, with a lot of Asian people, they always want to make sure that you always have your own business, right?So, mm-hmm. So I always wanted to make sure, like, Hey, this is what I want to do during school. It just got even stronger. And then once when I got outta school, then that, that was like my mission there to get get, get my own. Michael: Get your own. How fast did you wanna, were you trying to get it like as soon as possible?Or did you know, like, no, I need to have some years Noel: under me? At first, yeah. I needed to, I needed to have some years under me. But you know, like when I graduated, I, it was like right before the financial crisis. So, long story short, I wasn't getting a loan. So I wasn't getting a loan.Everybody kept rejecting the banks kept stating that, no, you, you're not good enough. You, you, we can't, we can't lend you. So then we had to scale down our little idea of business plan, and then we had to go like, Hey, how, what do I need to start off with just two, two ops or maybe even three ops. So that's when we, uh, I came across Wells Fargo and that's where we got a first loan for de Novo from scratch.And uh, we just took it and run. that place, the first office that we did was, it was equipped for six ops, so we equipped the first three. So my wife and I, she joined us and, uh, you know, we became pretty busy. So then little did we know that we needed more space, so I borrowed money from my dad, and then I got the other three ops, to get going.So it was, it was a nice rollercoaster ride, but, you know, it was, it was good. It was good. Michael: Yeah. So your first practice, it was three ops. Noel: Plum four, six, but we started with three because that was the only allowance we got for in terms of budgeting from the bank. Michael: Okay. Okay. And so when it came to growing that, how was your marketing and advertising, how did that look?Noel: radio, tv, you know, like all the basic stuff, direct mail. handing off flyers myself, going out to parking lots. I even got thrown out, I think from one of the parking lots. They were like, Hey, no soliciting kind of deal. Okay. mean, you name it, Michael, I mean, we, we did almost anything and everything.Community, churches handing out, like sending a lot of boots and a table. All the organic stuff. Okay. You still do all that today or no? Oh, no, no, no. Things have changed quite a bit in marketing, you know? Yeah. just like dentistry. Right. Michael: Yeah. Today, normally, what are you kind of honed in on or focusing on when it comes to marketing?Noel: So, as far as marketing, we have our own in-house marketing manager right now. She does all the organic leads and, uh, we do like, you know, like those, uh, Facebook funnels that, that comes in, we are targeting, uh, basically on demographics, on age and uh, buying habits. And we are also doing like psycho demographics as well as the regular demographics.And, uh, just seeing like, you know, like personas from our own database. Who are, and then we are just mimicking out there in the market. a lot of ai, a lot of, you know, things have changed, evolved. I mean, what I used to do was, was at dinosaur time, you know? Michael: yeah. No, no, I get you. So a lot of it is more you delegating that to somebody specific in your team, right?Noel: Right, right, right. Absolutely. So my wife is really hands-on involved with her in terms of marketing. But, if you were to ask me, like, how do you do this? Uh, you know, I'm the wrong person, let's put it that way. Okay. Michael: Gotcha. Gotcha, man. But so Noel, you've, scaled a lot from the three ops to where you're at now, right?You have 11 locations. Are they all the same secure dental? Noel: Correct. They're all, they're all in the same name. Okay. Michael: So I feel like sometimes there's a couple things. First of all, it's hard to do your own startup, right? Especially like, like you mentioned, right from the ground up. And then sometimes we think, okay, I'm gonna do a startup.It's successful. I'm just gonna copy and paste and do the, the same thing on the second one. And we figure out, oh my gosh, that's not the way it's handled. Right? Yeah. So then how did you do this? How did you do, let's go with the first one. How did, what were some of the struggles, mistakes and everything from making your startup to trying to grow to Noel: number two?Oh, that's a great question. Because, you know, here's the thing. When, when I was, when we started off, I was looking at my ex-employer, I. And he still has about like 90 plus locations, right? So he is scaling like, like still pretty fast. Now. I wasn't in the mindset that, you know, once you open your first one, then jump to the second, and you could do the same and then jump to the third.You could do the same. Little did we know that it doesn't work like that because once when you open the second office, you have to split your time. So we were like, all right, cool. So we will split time. So she will work in one practice and I'll work in the other practice. Then we hired a, uh, an associate, uh, for the first time as a part-timer.And little did we know that how to handle associates, how to have the structure in place, the onboarding, we, we, we had none of that stuff there. doctor came in, we just gave them patience and, you know, here you go and, and start working. So that, that was a hit or miss, but I can tell you that much we learned a lot, you know, after the first and the second.So my mindset was all about. How do I open more locations? Just more locations And, and that's all it was in, in my head. And then sooner or later, like, you know, we found out we were on a third of the fourth location I think. you know, we all of a sudden, like, you know, the nuts bolts, everything of the organization started coming off because all of a sudden become cashflow negative because all of them were de Novos, all of them were startups.So, you know, if doctor a leaves from one practice, you need to make sure you staff doctor a mm-hmm. Is a replacement. Then you have all these startups coming up. So we need to staff all those offices. So Michael, you know, long story short, it was a lot, lot of ups and downs, a lot of sleepless nights, let's put it that way.we did not have any kind of like metrics to measure, like when do we open, where do we open? So it was just, you know, like going up and down there. today things are a lot more different. Talking about that is we, we needed to have some, what do you call it? Those guys? consultants. Consultants, we had actually a couple of consultants, but you know, some of them were good, some of them were not. the end of the day, those consultants will tell you what to do, but we gotta be the person that have to execute a plan, otherwise it's not gonna work.So when we, when we started scaling and we started to add more employees, we started to expand more, operation wise. As those offices started maturing, it started to get better and better because then the cash flow was like from negative to break even, and then slowly going into profit side. But the downside would've been if a, if a doctor left, then everything goes back to ground zero.How often did that happen when a doctor would leave? if they were like one at a time, that's not a problem. the problem was when we, in, when we had four doctors leave in 2019, so we were at location number six we actually did two denovos and we just acquired one more, which is not a Denovo, but more like an acquisition shell, let's put it that way.It was a dental office from before. It was all plumb. No patients though. But we just went in and we just took over. So when we had that, we had four doctors leave and then we had to supply these three offices. Cashflow dipped down. I mean, we were like literally down to our knees at that time. So no systems, again, no processes, no backup, none of that stuff.So I think that was a huge learning curve for myself and uh, you know, at that time I just told my wife that this is not gonna happen again. we need to make sure that, you know, we have, we understand where the market is, where is it expanding, and what kind of resources do we have, where our doctors are standing, where our team standing, and where are we standing in this way that we can all move as one.Mm-hmm. So are there gonna be challenges in the future? Absolutely. Absolutely. And I can see that I, I see the rough waters coming up again. Really? Yeah. Oh yeah. So then Michael: what systems specifically did you create to kind of get back up? Noel: it's a whole round, I call it a 360.So it, comprises of, let's say, your process and systems, so all the SOPs, everything else. let's put it this way. In business, there are different break points, right? So when you hit a certain revenue target, you hit a break point. You gotta know exactly what you have to do at that break point, even before it, you hit it.So system, you know, once you hit the first break point, the second break point, let's say revenue size from, you know, a hundred thousand to 1 million, that's break point number one. We gotta make sure, like the system in place would be all the standard operating procedures. Everybody follows the same script, everyone's there.And then once when we are ready for break point number two, which is like the $5 million mark, then you gotta know, like, you know, who are you working with. So the team dynamic becomes very important. So that's when the hr, People, culture, core values, all those kind of kicks in. Mm-hmm. And then we have the finances, then the financials.I mean, I can't stress enough like how ignorant I was with financials. I never used to look at p and Ls. But now everything is based on what happens at the end of the month and where are we standing week after week in terms of KPIs and production numbers. that metrics need to be factored in as well in in the whole circle.Of course then we need to have our, uh, the last one is marketing. Marketing is, is one of those biggest tool that can drive, you know, like any organization up or down. And depending on, you know, marketing. So like with marketing, we used to play marketing by how we feel. Right?Alright. You know this, I think this audience, this target is gonna be good. Let's, let's do this zip code, let's do that zip code. But, uh, at the end of the day, you know, there's gotta be a strategy in place. You gotta know what is your acquisition cost. You gotta know what is the lead cost. You have to know all this stuff before you even spend a single dollar on, on marketing.as business owners, as dentists, we are always looking at our, patients. Right? But we are not paying attention to any of the other stuff. And that's what I think drives a lot of people. out of control, like worries and sleepless nights. Yeah. Michael: I like what you mentioned.Once you hit a goal, you need to know what to do after. I feel like a lot of the times what I do is like, okay, I hit this goal hoo. And then Oh, oh wait, go back down. You know what I mean? And we're like, okay, we're here now what do we do? Kind of thing. So it's interesting, once you hit that benchmark, Noel: systems in place.'cause what happens is once you hit that break point and you're not prepared for it, you will roll back to the first, the previous break point. And God forbid, I mean, if you roll back two break points or three break points, you're out of business. So those are some of the parameters that, you know, one should always keep out for when they're running a business.what revenue break point are you on? Yeah. Michael: I feel like sometimes when a startup, right, you're like, okay, I wanna make a million in, let's just say a million in collections, right? you hit that. What should be the next system for that? Should, okay, let's go to 2 million or Or open another practice or, or what do you think?Noel: No, I would, I, I believe that one need to maximize their, their location, their office and the systems before jumping into location number two, because if you're not maximizing it, the only reason I can think out outside of that would be if there is a market opportunity where you really want to be in, and there is a great way you can add it to the bottom line, the EBITDA or the revenue of that current practice.Absolutely, by all means, but. If you're just gonna go out there and just say, Hey, I'm gonna shop for a new, new location, then I think the first location needs to be maximized. Yeah. Okay. Michael: Yeah. 'cause I feel like sometimes it looks like, okay, we've maximized it with ops, we're, we're scheduling patients out way until like three months, five months.Right. New patients. But would it be considered maximizing it if you're like, okay, well I, I still, I'm accepting all insurances, should I. Go down on that, that means I'm gonna lose patients, but I'm also gonna, you know, have more room now and have better, Noel: I guess better fees. Yeah, that's a very individualized kind of question because it all depends on the operator's goal.So let's say if I'm a dentist and I want to just have one location, and I do not want to take, my goal is not to take any more PPOs, my goal is to go fee for service, right? Mm-hmm. Then my maximizing, my definition of maximizing it would be if I have six ops, eight ops, depending on how many ops. If I can fill all those ops and those ops are producing, let's say, you know, like 30 to 35 grand a month in terms of production, and you times that by six and you're really killing it, and now you've got like 40 mil, uh, 40,000 to $45,000 a, a chair a month.I think that is where, where you're maximizing it. But in case of, you know, if you're trying to scale and grow to locations and revenue, once you hit a certain mark, we need to get an associate in there. and that time maybe you can talk to the associate about some equity in the, in the, in the deal where they can kind of hang around there so that they have some skin in the game as well.I think everyone has their own, metrics for what it means by maximizing. Gotcha. Okay. Michael: And Noel, you've mentored a lot of people, right? Uh, to do startups and, and Yeah. Also, and, and dentistry. Especially Noel: my, my associate doctors. Yeah. Okay. Michael: You, you mentor them mainly to, to own their own practice or just to, okay.Have you ever had to walk or, or run into a situation when you're, tell them Noel: you're not ready? most of the times. Yeah. Michael: So how does that look like, how does that look like when you, or if somebody's not ready? What, what does that Noel: mean? No, I mean, I'm not gonna stop them from leaving and, and opening their own.Absolutely not. But you know, if they came to me for advice to go like, Hey, Dr. Liu, you know, I got this here. How do I do it? You know, I got this location, where do I start first? And you know, I'll guide them. Absolutely I'll guide them. But you know, at the end of the day we'll just have a open conversation.Like, Hey, where is your mindset at? Because I always like, since from day one, from onboarding, I mean, the only thing that I discussed with these guys is 80% is mindset, right? It's all psychological. 20% is strategy. People tend to focus more on strategy than their, the psychological aspect.And that's where I feel a lot of people that struggle when they open up the practice because you know, they have to be true to themselves. Like, where do you stand in terms of work-life balance? Where is your wife gonna be? Where is the kids gonna be? Right? Or if you're single, how much effort and how much work hours are you gonna be able to put in?So those are all the questions. Are you gonna do a startup or an acquisition? We need to see like where they at with us. So in terms of the production, the metrics, like where, how much do they produce per hour, per month, and how many employees per production? So for us, a good metric would be like 200 K per, employee per year.So if they are anywhere north of 200 k, it's a profitable business. But if they are anywhere like a hundred with their production and the amount of, you know, the staff that's in the, in the building. I'll be upfront with 'em that you are probably not gonna make it with that numbers. and then of course then they're a clinical skill.And then if they're gonna be doing an acquisition, then the old doctor stays or they leave. So there, there's a lot of, you know, parameters. A lot of factors. Yeah. Michael: When, when you're talking with them. So it's really getting to know them as a, as a person. Right. Individual. I like what you said, like your mindset, because.I do feel like sometimes we're like, oh yeah, I want to have my own hours, do my own thing, be able to take off whenever I want. But at the beginning it's not like that Uhhuh. Yeah. So the mindset Noel: that they have. Yeah. Especially if there are doctors who wants to enjoy, you know, on weekends, weeknights, they wanna go on vacations, they want to spend time with their families, uh, I'll just be upfront with them.If you do that on your own practice, you might run in the red. Yeah. Initially at least you could do that later on, but not initially, Michael: Yeah. So then the mindset that they have to have is kinda like grit, right? Noel: Oh, yeah. But in the warrior. Exactly, exactly. Get that warrior mindset.I mean, he, they, they, they gotta treat like it, like they're in a battle. I mean, just go and get it done. Mm-hmm. Or for a better, uh, Michael: outcome Right Now, Noelle, I wanted to ask you, when it comes to your, 11 locations. What are some systems that are unique that you feel like you and your wife or you created mm-hmm.That each practice has, and whether it's maybe the patient, the back office, front office handoff, or the patient experience, like what are some of the unique systems? Noel: You know, we just stick by one thing, which is our core values. And our core values are, it's it's short form. We call it adapter. And adapter is, it's just basically nothing more than just a few words.Right. But they can say the core values, but they gotta believe in it. I mean, we make our team understand what the core value is. I mean, they need to understand that they're gonna be hired based on that. They'll be reviewed based on that. They'll get a raise based on that, and they'll get fired based on that.So they'll need to understand that, you know, what, where do we stand? So it's very simple. Alignment is one of them. disciplined. Disciplined in all aspects of dentistry. Not only like, you know, like for the doctors, but also like what these guys are doing. Then they need to be accountable.I mean, anything they do, they gotta be accountable, and then P is production. So we need to make sure we are always scaling this way and not flat, because anything flat, you know, gravity pulls you down later on, you know, as we've seen over the years, like what happens in the, in the past.then we have the T, which is transparent. Every single one's gotta be transparent, including ourselves. I mean, there's no such thing as, you know, we're operating without transparency. So we, we gotta let 'em know, you know, it's like, for example, if we are letting anybody go, just go in a room, just let 'em know, Hey, what's happening?You know? The sooner they let 'em know, the faster it is and easier it is. It's like none of the stuff that we do have been invented by us, by the way. Mm-hmm. It's all from learning, it's all from mistakes and it's all from consultants that we had in the past. And sometimes with these consultants, it's not only the dental specific, you sometimes we know we may have to go outside the industry to grasp ideas.What, what are other companies doing out there besides dentistry? Because dentistry is such a small niche, you may not get the whole thing. But once we explore outside, then you see a whole different world. And I think that's my message to a lot of dentists out there. And just don't look at dental consult, uh, consultants definitely look at outside the industry as well.And then, uh, yeah, I mean those are some of the things. And lastly, it's results oriented. It's gotta be results oriented. It's not like because you are, you are a manager or you are a front desk for X amount of years. You got, you got raised, you know, automatically we see results. You smash results, you got my attention.Hmm. Michael: I like that a lot. What are some of the consultants you've had in the past where you're like, they're, they've been amazing. Noel: let's start with the first one we had was, Levin group.Dr. Roger Levin. I mean, he is, he is a great guy. We learned a lot of stuff with them, especially when we started off. of course, you know, there's a, there's a substantial investment, but at the end of the day, like I was saying, beginning in, in the beginning of this podcast was.You gotta implement it. If you don't implement it, your team's not on board. It's not gonna happen. with a lot of these consultants, we have to ensure that, number one, our teams are involved, that our team has some skin in the game, and the way we have to work with a team is not by just top down order.We have to work with these guys to align them with our goals. Right. And how do you do that? Is basically you have to find out what your team's. Personal goal is what their professional goal is and what's their financial goal. We gotta find out what ticks for them. Right? Once we find out what ticks for them, then we have a conversation on how do we help you so that you can help me?And that's where I feel like that's where the mindset and everybody is on board on the same page at that time. Because when we were running our show before, I mean, we were like, Hey, this is how we, this is what we did with the consultants, now this is how it's gonna be like, you know, starting Monday morning.Doesn't work. Doesn't work. Gotcha. Okay. Michael: So the, the 11 Noel: group was one, right? Levin Group was one. Si institute, um, I'm sure you guys heard of that one, right? SI Institute or Scheduling Institute, I don't know what, whatever it's called, right? Mm-hmm. So that was the second one. That was a brief one. I mean, we literally lasted for like a couple of months and we are out.these are all in Michael: the dental industry. These are all Noel: in the dental industry. Okay. Okay. Okay. Yeah. These all in the dental industry, I think. Uh, then once we started having a few locations, then I was with, uh, d e o Dental.Oh, okay. Entrepreneur. Michael: Organization. Noel: Organization, yeah. Uhhuh. Uhhuh, yeah. Yeah. It, it's run by Jake. When I joined, it was, uh, Dr. Mark Cooper. So he retired and then he, then, then Jake, uh, Jake, uh, took over. So I joined that. They were pretty good. the only thing I didn't like about them was because I was always being put with practices.That was one or two and they were, all they were discussing was like assistant problems, up front desk problems. Hmm. So I wanted to see like, how can I scale and grow rather than just having those kind of like discussions going on. So yeah. But that lasted about a year. Okay. And, uh, the latest one that we just came out of is Cardone Ventures.it's a pretty substantial investment. Mm-hmm. But, uh, I think it kind of got our groundwork set up pretty good. Card Michael: owned ventures. That's what is that all about? Noel: So they have, so some of the stuff that I was telling you, the 360, it's all been from, Brandon Dawson. So this guy.he was operating a A D S O or maybe a, a dental group called Stratus or something in his past life before he came on to card ventures. So they scale businesses and basically, you know, with Grand Cardone it's like all about 10 x, right? So he takes a business, works on a system, get everything in place, and get, gets the revenue up.So he works with that aspect. So that is what the whole, 360 and then we went through a whole platform and then we went through the whole, strategic business unit, you know, like the whole consulting thing. Great guys. Great guys, you know, I mean, you know, but for us, we were looking at something else, so we kind of like, you know, faded away last year and now we are with Polaris.Michael: Okay, gotcha. Hilarious. And there, how Noel: long have you been with them for? Oh, we just started, so Polaris, so this guy, what do you call it, the founders, Perrin and the Walker, they were guys from, uh, what's that company called? Ts Partners. Mm-hmm. Mm-hmm. So, yeah, so TSS partners, but they, they used to work with Kevin and then they, they separated and now they have their own stuff going on.Pretty much the same model, but, you know, it's just, I kind of like these guys because they're more down to earth in the sense that they understand numbers really, really well. And, uh, you know, my whole model is gonna be like around de novo. So that's what, that's what attracted me to them. So it's like, you know, you, before you even break ground, you know what your projections are gonna be, you know, what your numbers are gonna be, how much you need to spend on marketing.So, that's why we, we went with these guys. so yeah. So it's only been like about what, a month and a half I think, or two months. Mm-hmm. So we'll see how this plays out. Michael: Okay. Noelle, man, it sounds like you really. See this as like an, an investment, right? Where you're like, okay, I really need to find guidance all the time, right?Kind of thing. You don't know what you don't know kind Noel: of thing, right? Oh, you don't know what you don't know, right? Yeah. And, and it's like anytime when you have somebody who's on your side and they can see it from outside the box, because a lot of times when we are in the picture, we can see ourselves, right?Mm-hmm. So I treat my coaches, my consultants as they're outside of Boston, they can see a lot more. Michael: Mm Gotcha. Okay. And I like that. I like, so when is it then? 'cause I feel like you're scaling, you know what I mean? You have 11 locations. So to you, when is it like, alright, I don't think I need another one to scale anymore?A coach, consultant, or what are you thinking? Noel: For me, it's not about the location anymore, like how I used to be in the past. You know, more locations means more headache, more problems, more issues, right. For me now, it's all about the growth in a sense that how do we take care of the revenue or location?How do we maximize it? And that is, that is my new mantra on moving forward. And when I, I feel like, you know, we've grown wide, but now we need to grow vertical, grow deep, and once when we start growing deep, we can get quality people, we can get quality executives, we can get quality managers, regionals. I mean, that's where it all is.Because once when they're running a little bit, you know, wide and thin, That's how we were when we started. I mean, there's not a lot of room down there. So I mean, you're not getting quality people, but once when you start going deep and you grow wide, I mean that's where everything starts. Scaling. Yeah. Michael: To grow.Right. Growing like in your roots. I like that a lot because you're right, you can add more locations, but it's more headaches too sometimes, you know? Noel: Yeah. And, and for all the people out there who's thinking like more locations, like, you know, out of three to four or five, you know, they want to grow out.While it's good, but just have a reason and a purpose and a goal that why you wanna do it. If the why is bigger than, than, the, uh, actual reasoning, I mean, I think that it will always outlast any problems that, you know, one may have or any kind of like issues one may have once they start growing.The growing pains, I call it. Michael: Mm-hmm. Yeah, you're right. Growing pains, what have been, let me ask you that Throughout the time, from your first de novo to all the way to right now, today, right? Yeah. What have been some of your. Biggest struggles or, or, or fails or pitfalls that Noel: you've encountered? Not seeing the numbers.You know, not seeing the numbers, just going everything with an emotional mindset and going with a gut feeling. Well, as an entrepreneur, you need to have that gut feeling. You didn't have that instinct for sure. A hundred percent. I agree. But there are certain things and certain times where you need to look at the facts and numbers, because numbers don't lie.Right. So, If your numbers under red and you wanna open up a second location or a fourth location, whatever it is, it's probably not a good idea, even though the gut is telling you to do it. Mm-hmm. Right. So if I were to go back and do a lot of things, I would probably, number one, is to go invest in myself, get this right first, you know, once when this is right, then everything else follow. Okay. Michael: So, Be logical, right, when it comes to the numbers. Continue to always Noel: look at them logical. Okay. You know, we got two sides, right? We wanna be logical on one side, and then we want to be, I would call it like illogical or maybe like, you know, you go with your gut feeling kind of deal. So it has to have a compromise because if you're too logical then you never take any action, Then you become paralyzed with all analysis. But if you're too, like, you know, on the other side, then. It's like, you know, like myself, right? You're just a visionary without, without any kind of actual steps or actual concrete, uh, way how to get there. Mm-hmm. So I think both should go hand in hand. If, for me, if I'm not the way, if I'm not that like logical person, I need somebody on my team to kind of like, you know, put a check on me, let's put it that way.Yeah. Michael: No, it's good. It's good. It's good to do that. Yeah. Yeah. Yeah. Okay. So then that's one of the biggest, uh, struggles that you've had. Numbers, right? What else? Mm-hmm. What else? Can you recall where you're like, man, that's been, that was a headache. Noel: not having this thriving culture.Because for me, it's all about people. Having the right people on the team, I think that is the utmost important because people make business. I always thought the other way around, and I think that was like, I had it backwards. You know, I was thinking like, Hey, let's, I'm the business and then we worry about the people.But it's actually, you take care of the people, the business goes up. that is one of the biggest mistakes that I did or we did in the past. So we learned quite a bit from there. Mm-hmm. Now, for us, it's all about how do we have this winning culture in, in, in, within our organization, and How do we model it? Mm-hmm. So me and my wife, we'll model it. How do we mimic it in terms in our, in our team members? All right. And then how do we master it? Because it's easy to know everything. Like you know it all, but how do you train another person to do it?that's the key to success for scaling because you can't just have it all up here. You have to pass it on. Yeah, Michael: that's true. So then your culture mm-hmm. You can tell us what does that look like Noel: in your team? So it's all about like, how do we pay them more by increasing the production.How do we all win together? so we have like a lot of like different bonus systems and then we have a lot of payoffs for these guys. We have a lot of team, uh, Cohesion. Kind of like, you know, games that goes on, events that goes on. And every Wednesday we have something called Wednesday, so it's called Win.Mm-hmm. So everybody wins. Everybody tells them about the wins. so we get all, get on a Zoom call and we are all sharing our wins for that that week. What do we do? And even something personal, like a personal stuff. So I'm on it, my wife's on it, and we are like, you know, participating in it. So we'll tell, share some personal stories.They'll share something personal so they know like, Hey, that guy, there is not just a figure who just comes in the office and wants every six months, right? Mm-hmm. So they can actually see us and, you know, they have interaction with us. So we, so we have a pretty good time. So it's all about, it's all about like, how do we have a cohesion kind of relationship with everybody and knowing everyone.Michael: And you do that normally, like the win Wednesdays, right? Is that like a morning huddle or team meeting Noel: or, yeah, you can call it a morning huddle. You can call it a morning huddle. You know, with, especially right now with like, you know, about 95 employees, I mean, it's hard to keep a, keep a tab with every single one.Mm-hmm. So we wanna make sure that we are in touch, that they see us the whole time. Gotcha. Michael: Okay. That's interesting. And you mentioned something about your bonus systems. How does your bonus system work? Because that's a thing we're all trying to like, you know what I mean? Structure. So how do you Noel: structure it?So our bonus system for our manager is pretty simple. It's quarterly goals that they have to meet. So there, there's a certain production number that they have to meet and of course they have to keep their employee count to a check. So we kind of strive for 200 to 250,000 per employee kind of deal.Mm-hmm. And these are all like metrics from card ventures by the way. It's not like I created those. Mm-hmm. So once we have those checks, then and you know, they have to meet those two metrics. And then of course the K P I, whatever they produced, it has to make sure, like what's in account, the actual account.Those are the three metrics that we look at. And then of course, then the last thing we look at is the p and l. are the numbers as high and are the expenses catching up? Or do we have another net profit? So those are for our, our managers. for the team members, it's very, very simple. we have something called bonus leave.It's pretty cool. It's like they have a little app and anytime, let's say they talk to a patient about a fluoride treatment where the patient pays out of pocket or if they have a. clear aligner case where the patient accepted treatment, they get a lot of kickback in that Bonusly app.So the app will show that, hey, they got so much, you know, like money in there and it's all tax free by the way. Because we, we, we carry the taxes for 'em, right. So they'll get like, let's say a $200 bonus or a $300 bonus right there just for, you know, like for a case acceptance, for a clear aligner or maybe for an implant.You know, they had like a big implant case, you know, there's gonna be like a five to $700, right? So they look at that and they love it. So, you know, that's like, you know, kind of a motivational thing for them to keep applying the same principles like how they did with this patient. A yeah, like, it's Michael: a good incentive.How do you determine the, the value of it or the money? So for example, like, oh hey, your implant case, here's 500 bucks. Or Noel: do they know? Oh, it's all on a dollar value? It's all on a dollar. Oh, okay, okay, okay, okay, okay. It's on a dollar value. It's a certain percentage and, uh, yeah, these guys, we started, actually, we started this thing pretty cool.We started in January. So before that, it was like all haphazard. It was all going up like in payroll and, and it was like, by the time they see it, they're like, oh, I don't care. You know, whatever it is. But since we started this, everybody's on a, on a, on a roll. Yeah. 'cause it's Michael: like right there, right? Like on their, it's right there and it's on their phone.So they immediately, they're just like, oh, okay, fluoride, I, I sold it. Boom. Right? And then they can, yeah. The office manager's job is to make sure that's, Kind of true at the same time, right. They're like, are they Noel: doing it? So there are two checks going on, so mm-hmm. Our office manager will check that patient and then, you know, our, our bookkeeper, they'll go back and say, okay, fine.This has been entered, this patient made that payment approved, and approval is usually within 24 hours. So we don't make sure we, we don't make them wait for too long. Michael: Yeah. And then they get that they can cash in that bonus whenever Noel: or whenever. So, you know, the, the app is pretty cool. I mean, you can actually get cash, you can use it at Starbucks, you can use it at Target.I mean, you can use it anywhere. Michael: Interesting. Interesting. Okay. Yeah, that's good. That's good motivation right there, man. That's awesome. Yeah. Noel: Awesome. I mean, think about it this way, right? If in a day they, they collected, let's say a hundred to 300 bucks. Now if you do the math, whatever hourly they get, you just break it down by eight hours.That $300 or $200, I mean, that's like additional boost in the per hour without paying Uncle Sam. yeah, yeah, yeah. Right. That's like strictly cash bonus. and what we do on the backend is we make sure like whatever bonuses went out, we'll cover the taxes for them. Michael: Okay. So that's good, man. That's really, really good.Oh yeah. Nice. So then one of the last questions I wanna ask you is, throughout this time, how is this affecting your Noel: personal life? So we have three kids, eight, seven, and two. my wife spends most of the time with them. I'm home like probably Sundays, you know, like depends Sundays or Saturdays. But we understand like, you know, she has this one thing you need to be out there.She tells me you need to be out there creating stuff, making stuff happen. Because at the end of the day, we may be sacrificing now, like I may be sacrificing now, like with a lot of times with my kids, but I know for a fact that as long as I'm present for the events for the little birthday parties, right.for their, like, you know, like, like theoretical, uh, uh, kind of shows or anything that is happening in school. And I'm away during the daytime, even evening times, even for days, sometimes when I have to travel. they get it. at the end of the day, for me, it's more about where as our future, how long do we wanna work and where our kids are gonna be down the road and how is it all gonna be turning out because.If I have to, let's say go for a long time, I'll tag the kids along with me. Mm-hmm. So if we are gonna go out scouting for an acquisition or for a place, the kids are coming with us. Right. They'll be like, Hey daddy, where are we going? Well, we gonna go check out an office. Let's go. that's where my work-life balance is, Michael.Michael: Gotcha. Okay. Nice. No, I appreciate it. Thank you so much for being with us. It's been a pleasure. But before we say goodbye, can you tell our listeners where they can find you? Noel: Yeah, absolutely. So I give all my personal numbers. Okay, so my number is pretty cool. 8 1 5 6 7 0 2 9 2 3. as long as it's not a scam, or a spam or you know, one of those three marketers, I'm cool.so again, it's 8 1 5 6 7 0 2 9 2 3, and we are@www.secure dental group.com. Or you can follow me on Instagram, Dr. Noel. Michael: Awesome. So guys, that's all gonna be in the show notes below as always. And Noel, thank you so much for being with us. It's been a pleasure and we'll hear from you soon. Noel: Thank you for having me.‍‍

On today's episode of the Dentalpreneur Podcast, recorded live at the Dental Success Summit, Dr. Mark Costes interviews Brian A. Colao, a leading authority in the DSO (Dental Support Organization) space. Brian has transformed Dykema's DSO group into a renowned leader in middle-market DSO buy-side and sell-side transactions. In this insightful interview, Dr. Costes explores the current landscape of dental consolidation and the impact of interest rates and the economic climate on the appetite for consolidation. Brian shares his expertise, highlighting that consolidation in the DSO space continues to be explosive due to low transaction risks, availability of bank loans, and investments from private equity funds. The conversation further delves into the dynamics of the private equity world, where the need to deploy capital drives interest in dental assets. Brian discusses the shift in focus from buying more EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to achieving same-store growth as market restrictions increase. Dr. Costes also explores the trend of younger doctors selling to private equity earlier in their careers compared to mid to late career dentists. Brian confirms this pattern, explaining how many dentists fresh out of dental school are bypassing private practice and directly entering the DSO realm. Don't miss this engaging interview that provides valuable insights into the DSO industry and the trends shaping it. Tune in to the full episode and gain expert knowledge from Brian Colao's extensive experience. EPISODE RESOURCES https://www.dykema.com https://www.truedentalsuccess.com Dental Success Network Subscribe to The Dentalpreneur Podcast

Get our newsletter free here or text “GRE” to 66866. Storing your money at a bank entails more risk than you think. Your deposit is a bank's liability. Banks must take risks with your money because they don't charge you fees. Banks used to have a 10:1 reserve ratio. As of March 2020, all reserve requirements are now eliminated. Rather than storing lots of money at the bank, borrow lots of money from the bank. US households own $41T of owner-occupied property—$29T in equity, $12T in debt. The national LTV ratio is 30%, historically low. That's 70% equity. Of the five ways real estate pays: one profit source is the market, two are from the tenant's job, and two come from the government. Many Millennials plan to rent forever. 63% have nothing saved for a down payment. The interest-rate lock in effect keeps constraining the available supply of homes. This forces more homebuilders to build. Last week, NBC Nightly News covered the rise of build-to-rent communities. Resources mentioned: Show Notes: www.GetRichEducation.com/455 Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete episode transcript:   Welcome to GRE! I'm your host, Keith Weinhold. Do you have any idea what banks do with your money? How home equity is like a bank, hot Millennial rental trends, and the proliferation of Build To Rent real estate, today on Get Rich Education! ___________   Welcome to GRE! From Glens Falls, NY to Klamath Falls, OR and across 188 nations worldwide, the voice of real estate investing since 2014. You're listening to Get Rich Education. I'm your host, Keith Weinhold.   You did not wake up to be mediocre today. So we don't focus on long-term budgeting here.    Correlating financial betterment chiefly with reducing your expenses is just a race to the bottom. You and your peers would just be racing to the bottom.   We know that, instead, yes, arbitrage is created when you  borrow low and invest high. But the ultimate arbitrage - which is the gap or that spread, is when your quality of life vastly exceeds your cost of living.    That's that gap that you & I pry open ever wider together right here, every week.    Savers lose wealth. Stock investors maintain wealth. REIs build wealth.   Savers lose wealth because inflation makes holding onto a dollar like a block of ice melting in your hand.    Retail stock investors only MAINTAIN wealth because their 9 to 10% long-term return is worn down to less than nothing with inflation, emotion, taxes, fees, and volatility.   And real estate investors BUILD real, durable wealth.     If you have a mentality of trading time for dollars, then you  have a certain way of looking at your life.    If you realize that your investing mission in your life is to build things that pay you to own them, then you have a different way of looking at life.    The resources that you need to build those things are what we cultivate here on this show.    You know something though, by the time that I bought my first rental property, I didn't have all of that figured out yet.    It really wasn't until I bought my second property. It was also a fourplex, just like the first one. This second one cost $530,000. And check out how I bought it.    I bought it with a 10% down payment, interest-only loan, and interest rate of 7⅝%.    Yep, I took accumulated equity from my first four-plex and used it as a down payment on the second four plex.   Now, that way, I essentially had zero money in the deal - which is an infinite return strategy - and both fourplexes cashflowed.   Now, the interest-only loan on my second fourplex there… that gives some people pause.   Why would I do that?   That kept my monthly payment amount down - since I could pay only interest - and didn't have to pay principal. That turned a property with a small cash flow into a nice cash flow.   Yeah, some people don't like interest-onlys because then the tenant isn't paying down your principal for you.    I typically take interest-only loans because for every dollar that doesn't go into your illiquid principal as equity, instead, it becomes a dollar of liquid cash flow that goes into your pocket.   In fact, changes are that the reason that you have fat equity in home right now is from market appreciation, not principal paydown.   In fact, why don't I approach the classic GRE principle of “your return from home equity is always zero” from a new and novel angle here today.    Gosh, this could make you hundreds of thousands or millions over your investor career.   Imagine a bank. We'll call it a red bank. This bank is offering you zero rate of return, it's difficult for you to withdraw your money from it, and this red bank might not even let you withdraw your own money at all - it is at their discretion.    How motivated are you to hold your money at that bank? Well, you aren't at all.    Well, I just described equity that's locked inside properties… and that's why… your properties make terrible banks.   Equity is the opposite of you being liquid.   Instead, the GRE Way is leverage and arbitrage, but it needs to be supported by cash flow.    So, we are not quite on an island here with our strategy, because we're still connected with the mainstream finance world - but we're, say, a peninsula then.    And, like a peninsula, maybe, real estate keeps you insulated - though not completely disconnected from that more volatile stock and bond shuffle that most people are on - which provides little to zero leverage or cash flow.    Do you know what that stock and bond shuffle is - that seesaw?   Let's remind ourselves… that when money flees the stock market, it usually ends up in bonds. As demand for bonds goes UP, interest rates go DOWN. Then, as interest rates go down, investors go back to stocks in pursuit of yield, and everything reverses. It's an ebb and flow of funds which often provides you with zero real return. That's how that seesaw goes. So rather than get a part-time job, which is selling your time for dollars, get a few rental properties instead.    Whether you manage them yourself or you manage the manager - like I do, I manage managers… you've got the income stream of a part-time job with an asset that appreciates at the same time.   As time passes, the reason that you will feel satisfied is because you took strategic risk.   Now, to stick to the bank analogy theme here, a lot of people still don't realize that when you take your money to the bank, you are a creditor of the bank, and the bank is now lending your money out.   So, just think about what you're doing - well, you yourself probably aren't doing so much of this - you're probably a better than average investor since you're listening here.   But think about those depositors that keep a lot of money at the bank.   Yes, we know you're losing to inflation, but besides that, just think about what happens to your money this way.   What about a parking garage and your car? OK, when you park your car at a valet, the valet is supposed to turn around and park it in a garage.   The valet does not have the right to take your car and let an Uber driver go make money with it while you're off having dinner.   And then maybe they'll give you the same make & model back at the end of the night… and they stick YOU with the risk of having a problem with your car - or your money.    That's what banks are doing with your money when you park it there. It's like a valet letting an Uber driver use it and take risks with it without your knowledge.   What isn't FDIC-insured is… at… risk.   Well, what's the alternative to banks lending out the money that you deposited with them? Well, the alternative to the existing system is that banks, instead, could make money off of fees that they charge you.   How is it that you avoid paying fees to your bank right now, like you are? I mean, afterall, banks have capital expenses, technology expenses, and employee expenses.   If banks charge fees to you rather than profiting from the spread that they get on lending your money out, we could have a safer system.   But most people like the allure of fee-free banking, partly because that's what they're used to.   Banks used to have to hold onto a dollar for every $10 they had in deposits. That's also known as a 10:1 fractional reserve ratio.    Well, the risks of parking your money at a bank went up in March of 2020. That's when the Fed just COMPLETELY eliminated reserve ratios for banks.    Now, for every $10 they have in deposits, banks can hold zero dollars in reserve.    Instead of parking your money at a bank, you do the opposite. You borrow from the bank, pay them their 7% interest and invest it in “Real Estate Pays Five Ways” property that beats 7%. Right there's… your arbitrage.   Now you're using their money instead of them using your money - like the valet that you entrusted your car with that lent out your car to the Uber driver while you were at dinner.    So outside of inflation, why is it risky to keep your money parked AT a bank - rather than borrowing from them. Because, as has often happened this year, banks implode.     Why are they imploding?   Well, just a couple years ago, when banks lent on mortgages at 3%, they're only collecting 3% for 30 years.    What happens to the BANK when interest rates go up? No one wants to buy their 3% debt. The depositor (that's you, the customer) wants their money back - because they can go invest it for 5% elsewhere. That's a problem for the bank.   And if the government does come in to give a bailout of your bank - we know by now that they're more likely to do it if it's a large bank, like Chase, Wells Fargo, or B of A.   Well, more gov't bailouts of banks… means more money printing… which means more inflation, making our eventual problems even worse.   So rather than keeping too much money at the bank, BEAT the bank.   Now, earlier, I mentioned how having a glut of equity in your properties is like keeping your money in a rather illiquid bank.    That is a germane point - a pertinent discussion to have right now, because take a look at this. This is America's equity position, right now.   This is for the latest quarter ended. The Federal Reserve Flow of Funds report tells us that    U.S. households owned $41 trillion in owner-occupied real estate. Alright, $41T is the value of that US residential property.   Of that $41T, how much do you think is in debt, and how much is in equity? I'm just doing some rounding here.   $12 trillion in debt and the remaining $29 trillion is in equity.   Therefore, the national loan-to-value "LTV" right now is about 30%. That is historically quite low.   Another way to say it is that America's primary residences have a 70% equity position today.    Yes, 70% of the value of American homes is locked into that vehicle that's famously unsafe, illiquid, and always has an ROI of zero.    Homeowners today have an average of $302,000 of equity in their homes.    Now, as inefficient as that might sound from an opportunity cost perspective from homeowners.   There is, at least, a little upside to your neighbors having a glut of equity even if you try to opportunistically hold a low equity position.   This equity provides a cushion to withstand potential price declines, but also prevents any future housing distress from turning into a foreclosure situation.    Those equity cushions around American neighborhoods help prevent the down… drain in prices that we saw from 2007 to 2009.   I've got more for you coming shortly, including, has the Build-To-Rent concept that we've discussed on this show for years & years finally gone mainstream now that NBC news is discussing it?   You'll hear that audio clip and get my commentary on it.   But first, I want to ask you, is this the "Golden Age" of quality NEWSLETTERS or what?    News WEBSITES are increasingly riddled with: paywalls, logins, banner ads, and pop-ups about cookies, the hassle of 2FA. Instead, a quality newsletter is just automatically “there” in your inbox.    Our valuable Don't Quit Your Daydream newsletter is full of real estate investing industry trends and forecasts, broader economic forces that are going to affect you in the future & more.    Get top investment property news in under 5 minutes.  You can sign up and get the letter free now at GetRichEducation.com/Letter.   In there, you get updates about what provider has inventory now - even exact physical addresses of properties.    In fact, I've featured two of my own rental properties in the newsletter as I broke down their financials. Again, sign up at GetRichEducation.com/Letter   I STILL write every single word of that letter myself. I don't think that a lot of founders do that.   Upon signup, you'll receive some lay of the land e-mails, and thereafter, I only send it about weekly. Not daily.   Alternatively, you can easily sign up for the letter by text. If you aren't yet one of many subscribers expanding your means with my letter, you can simply text “GRE” to 66866 for our DQYD Letter. It is free.   Again, you can sign up by simply texting “GRE” to 66866. More next. I'm Keith Weinhold. You're listening to Get Rich Education. _____________   Welcome back. You're listening to Episode 455 of Get Rich Education. I'm your host, Keith Weinhold.   Five weeks ago on the show, you'll remember that I reiterated why real estate does not pay 4 ways and does not pay 6 ways - it pays exactly five ways simultaneously.   Sometimes, amid uncertainty - and note that there's ALWAYS - uncertainty.   It never abates. People wondered when the Fed would stop hiking rates at a meeting. Now they did. People wondered when inflation would get down to 4 - now it has.    But those that worry excessively will still point to something else that's uncertain.   But in good times, bad times, and uncertain investing times, you might want to get more offensive. Other times, more defensive.   Real estate is both. Of the 5 ways you're paid, appreciation and cash flow serve your offensive side.   At the same time, your return on Amortization, Tax Benefits, and Inflation-Profiting all serve your defensive side.   Now, let's go and look at the sources - the headwaters - the genesis.    What are your 5 profit sources - for appreciation - it's the market. It's the vibrancy and diversity of the economic market that you bought in. That's where your appreciation emanates from.   For the second way you're paid, cash flow, it's your tenant and your tenant's job.   For the third way, your Return on Amortization - that ROA, that also comes from your tenant, since that pays your loan's Principal & Interest.   The fourth way, tax benefits, that's the gov't.   And the fifth way, your inflation-profiting, that also comes from the gov't.    Yes, that's the source, the headwaters for each of the five ways you're paid and knowing that can help you be mindful about what to pay attention to in your investment real estate portfolio long-term.   Yes, this is just with carefully-bought buy & hold real estate. Unlike most investments, if the value of your property goes down, you still get paid 4 ways.    So to review the 5 Ways Real Estate Pays SOURCES - where your money actually originates, it's:   Appreciation - from the market Cash flow - from the tenant ROA - tenant Tax Benefits - gov't And Inflation-Profiting - also from the gov't   Now, here at GRE, when we focus on your tenant and where your tenant comes from, you know, one word that comes up an awful lot is Millennials.   Why do we discuss Millennials so regularly? It's not because we're the first generation to embrace avocados or online dating over “in real life” dating or, it's the first generation to be raised in a world of participation trophies. Ha!    It's because, not only are Millennials the largest generation in American history, but they are in their prime household formation years.   Though there's a bit of dissension among demographers, many agree that Millennials were born between 1981 and 1996. That makes them Age 27 to 42 - they are prime household formation years.    BTW, you probably know of the generation after that, Gen Z. They were born between 1997 and 2012, making Gen Z age 11 to 26.   But do you know about the generation after that? That is Generation Alpha. They were born between 2012 and today, making Generation Alpha age 0 to 11.    Well, the Millennial homeownership rate lags that of previous generations of people that were the same age. So this is why you have such a deep pool of people that's driving demand for your rentals.   Millennials have the misfortune of being stung by back-to-back global crises.    When they were coming of age in 2008, many couldn't get a job during the Global Financial Crisis. Then the pandemic disruption made getting their independence pretty bumpy.   In fact, fully 18% of Millennials say that they plan to rent forever. Forever! That's up from 11% just five years ago.    Not just a few, but the MAJORITY of Millennial Renters have zero down payment for house savings. 63% of them have absolutely nothing saved for a house.    And in fact, another 14% have less than $5,000 saved - which is close to nothing. That is all according to a survey from Apartment List.    More Millennials plan to rent forever.    Now, I've done a fair bit of research on Generation Z  real estate trends - again they're the age between 11 and 26. And there are a few more Gen Z homeowners than you might think already.    But the short story on Gen Z, just isn't that compelling. To distill everything I've researched, most Gen Zers want to own a home but few can afford it. Well, no kidding. That's not a very novel takeaway, but that's the REAL story there.   If Millennials are your current renters, then Gen Z are your current and future renters.   Now, I've talked to you a good bit about the “interest rate lock-in” effect. So many homeowners have ultra-low mortgage rates that they don't want to sell their home, and when they don't put it on the market, that further constrains supply.   Well, Redfin recently brought some new color to the interest-rate lock-in effect. They've shared some really interesting material with us.   92% of mortgage borrowers have an interest rate under 6%.   80% of them have an interest rate below 5%.   62% of these people have an interest rate below 4%.   And a quarter have a rate below 3%.   New listings of homes for sale and the total number of listings have both dropped to their lowest level on record for this time of year… and that is fueling homebuyer competition in some markets and preventing home prices from falling.    In fact, Redfin tells us that the national ASKING price for homes is the same that it was one year ago.   Sale prices increased most in these 5 metro areas. Cincinnati leading the way at (9.2%). We've got cash-flowing Cincinnati property at GRE Marketplace. Miami (8%) not really a cash flow market there. Third-best is Milwaukee (8%), rounded out by Fort Lauderdale, FL (6%) and Virginia Beach, VA (5%).  They are the 5 metros with the highest appreciation. Current months of national housing supply is still just 2.6 months - scarce inventory. 6 months is a balance market.   Homes that sold were on the market for a median of 28 days. That is the shortest span since September. There's a bit of a seasonal factor there though.   Now, when we talk about the paltry supply of homes since existing homeowners don't want to lose their low rate, it's forced more homebuilders to build - in order to make some inventory available.   It's made a good opportunity for you to buy these homes that are built for renters from Day 1, and rent it to a tenant yourself.    Now, I know that your life is more interesting than watching the NBC Nightly News with Lester Holt and then dozing off to sleep at 9:30 PM (ha!), so in case you didn't catch it, here it is on “Build-To-Rent” last week.   It really takes the perspective of the RENTER and why they want to pay your rent to stay in a Build-To-Rent home… longer than they do for an apartment. This is about 2 minutes long & I'll be back to comment.   BTR on NBC News:  https://youtu.be/BXwTerRQWNo?t=954   Yes, that's the popularity of build-to-rent homes. Something that we've been discussing here at GRE, for, gosh, maybe 8 years now.   Like they said there, rents are on the rise. But they're not rising nearly as fast as they were 1 and 2 years ago. Rent growth has slowed for both SFHs and apartments.   I think that the assurance for prospective income property owners like you is that in your Build-To-Rent properties, you can have a reasonable expectation of high occupancy and low vacancy as long as you buy your SFRs in a decent market.   And see, more often than not, a builder is only going to build new, rental single-family homes if there are plentiful jobs nearby to support that.   So you can kind of crowdsource the due diligence that the builder did on what's demographically and economically feasible if you choose to add these property types.   Despite the build-to-rent properties added, today, America only has half as many homes available as 2019.   Compared to just a year ago, there are 5% fewer available properties today.    But, we've got available Build-To-Rent and existing income property here at GRE Marketplace. Yes, just create one login, one time, and get access to all national providers at GRE Marketplace.com.   But say you want a little help, a little coaching. Say perhaps you haven't bought property before, or you haven't bought one in a while, or you haven't bought property across state lines yet - since that's where the best deals usually are - or you just want to lean on a coach to bounce ideas off of as you're looking for your next investment property.   Well, in that case, you can rely on our free coaching service. That's at GREmarketplace.com/Coach   Our coaches don't blow the whistle at you for missing a play. You'll never find them as grumpy as, say, New England Patriots' Coach Bill Belichick. They're not that kind of coach. It's not the kind of coach that will ask you to start your morning with an ice bath.   And if you're new to real estate, there's no such thing as a stupid question with GRE Investment Coaches. No penalty flags are thrown.   To find that property that builds your residual income and pays you five ways, you can choose which coach you want to have help you.     Coaching is a completely free service to you.   What they do is... Learn your goals Find you the best off-market deals nationwide Find the property provider with incentives. (One provider recently offered 4.75% interest rates, another free PM for one year.) Help write your offer if you would like that Submit earnest money Navigate the inspection Interpret your appraisal Check your management agreement And just ensure a smooth closing day for you Your Investment Coach can do more than this. If you prefer, they can do less than this.   GRE Marketplace is where the coaches source the properties. It is more like an organic farmers' market than a big box store. Property offerings change frequently.   Because there are limited slots available to talk with them through phone or Zoom, it helps if you've got your down payment and are ready to go.   Sheesh. If it were any easier, they'd even make your down payment for you.   Did I mention that it's completely free? To get started, choose your coach and book a time. Start at GREmarketplace.com/Coach   Until next week, I'm your host, Keith Weinhold. DQYD!

OVERVIEW: “If you buy things you do not need, soon you will have to sell things you need.” – Warren Buffet Jason A. Duprat, Entrepreneur, Healthcare Practitioner, and Host of the Healthcare Entrepreneur Academy podcast, answers a question from his text community regarding making big purchases. In this episode, Jason runs us through a step-by-step calculation to determine whether or not an expensive purchase is worth it.    EPISODE HIGHLIGHTS: Jason features a question from his text community. The inquirer recently opened a MedSpa and is looking to purchase expensive equipment. They're wondering if now would be the right time to continue with that purchase. Purchasing the equipment will add five additional services to what they can offer. There are no consumables related to those offers, and they can buy the laser at a discount. Jason recommends going back to the numbers. Typically, you don't want to finance anything that loses you money. However, in business, if you can buy something and pay for it over time while it makes you money, it's called Leveraging. You can look up free Amortization Calculators on Google. Don't focus so much on that big number. Instead, focus on the monthly payments and the number of patients required to execute and pay for this particular device.  The first rule of business is to use Leverage to grow your business and your income.    TWEETABLE QUOTES: “If you want to get an opportunity to buy an expensive piece of equipment, try and sit on it for a day or two. Don't let anybody pressure you into making quick, rapid decisions. Let your emotions simmer down and look at it from a rational, financial standpoint.” – Jason A. Duprat “The more detail you can include in terms of your information gathering, the better your decision-making will be.” – Jason A. Duprat   CONNECT WITH JASON DUPRAT: LinkedIn | Facebook | Instagram | Youtube | Facebook Group   RESOURCES: Sign up for one of our free business start-up Masterclasses at https://jasonduprat.com/freemasterclass Have a healthcare business question? Text me at 407-972-0084, and I'll add you to my contacts. Occasionally, I'll share important announcements and answer your questions as well. Do you enjoy our podcast? Leave a rating and review: https://lovethepodcast.com/hea   RELATED EPISODES: #295: OVERCOME SHINY OBJECT SYNDROME, NARROW YOUR FOCUS AND STICK WITH YOUR BUSINESS IN 2023 #135: KEN WENTWORTH: DOUBLE-DIGIT NET MARGINS ALL DAY LONG #205: CHEN YEN: LEVERAGING EDUCATION TO GROW & SCALE HOLISTIC CARE PRACTICES   #HealthcareEntrepreneurAcademy #healthcare #HealthcareBoss #entrepreneur #entrepreneurship #podcast #businessgrowth #teamgrowth #digitalbusiness

Subject to financing is a strategy commonly used in real estate wholesaling. It involves purchasing a property "subject to" the existing financing or mortgage already in place. In this scenario, the buyer takes over the responsibility of making the mortgage payments, but the loan remains in the original homeowner's name.In real estate wholesaling, being in subject-to financing can be an effective way to acquire properties without the need for traditional financing, such as a mortgage loan. In this episode, Todd Toback will give you a step-by-step overview of how subject-to financing works and how you can utilize it to make wealth-BUSTING deals!----------Show notes:(1:17) Beginning of today's episode.(6:47) The beauty of the subject-to financing strategy and how to build your net worth with it.(10:52) Todd's four ways for you to get money are: Amortization, Appreciation, Depreciation and Cash Flow.(15:48) Todd explains why the majority of the US population is not credit-conscious.(17:04) If you're not willing to pay, this deal isn't for you.(17:55) Todd explains the "do-on-sale" calls.(19:18) Ask your attorney first if this strategy is the best for you.----------Resources:To speak with Brent or one of our other expert coaches call (281) 835-4201 or schedule your free discovery call here to learn about our mentorship programs and become part of the TribeGo to Wholesalingincgroup.com to become part of one of the fastest growing Facebook communities in the Wholesaling space. Get all of your burning Wholesaling questions answered, gain access to JV partnerships, and connect with other "success minded" Rhinos in the community.It's 100% free to join. The opportunities in this community are endless, what are you waiting for?

Get a 4.75% mortgage rate or 100% financing on new-build Florida income property. Start here. If I gave you $10M, learn why that probably wouldn't even help you. We revisit how “Real Estate Pays 5 Ways”, a concept that I coined right here on the show in May 2015. Some think real estate pays three, four, or six ways. I revisit why there are exactly five. Real estate has many paradoxical relationships. I explore. Americans are living in homes longer than ever, now a duration of 10 years, 8 months. The active supply of available housing dropped again. Get an update on the gambling industry. A major sports gambling platform has offered to advertise with us. Take my free real estate video course right here.  Zillow expects US home values to rise 4.8% from April 2023 to April 2024.  Months of available housing supply is currently 2.7 per Redfin. Resources mentioned: Show Notes: www.GetRichEducation.com/450 Active Supply of Available Homes: https://fred.stlouisfed.org/series/ACTLISCOUUS Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Find cash-flowing Jacksonville property at: www.JWBrealestate.com/GRE Invest with Freedom Family Investments. You get paid first: Text ‘FAMILY' to 66866 Will you please leave a review for the show? I'd be grateful. Search “how to leave an Apple Podcasts review”  Top Properties & Providers: GREmarketplace.com Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free—text ‘GRE' to 66866 Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Keith's personal Instagram: @keithweinhold   Complete transcript:   Welcome to GRE! I'm your host, Keith Weinhold. If you were gifted $10M right now, why that very well wouldn't help you at all.   Learn a fresh take on how Real Estate Pays 5 Ways at the same time. A housing market update with perennially sagging inventory supply amounts and more outlooks for stronger home price appreciation than many expected. Today, on Get Rich Education.   Welcome to GRE!    From Montevideo, Uruguay to Montecito, CA and across 188 nations worldwide, you're listening to one of the longest-running and most listened-to shows on real estate… the voice of real estate investing since 2014. I'm your host and my name is Keith Weinhold.   How would you like it if I gave you $1M?   You know what? That's not enough to make my point. Make it $10M. I adjusted for inflation - ha! How much would you like it if I gave you $10M? How would that feel?   But what if it comes with this one condition.   What if I told you that I'll give you the $10M, but you are not waking up tomorrow?    Not waking up tomorrow? No way!   Now you know that waking up tomorrow is worth more than $10M.   This is how you know that your time and your life are worth infinitely more than any dollar amount.   Hmmm… if your time is so valuable. Then why did you check Instagram 15 times yesterday to see who viewed your Stories? Ha!   Why are you spending time with your AI girlfriend? Ha!   Get Rich Education is ultimately about living a rich LIFE - whatever that means to you.   And we do approach that from the financial perspective here. Money does matter… because leverage, cash flow, and inflation-profiting enable you to BUY time.   We're really one of the few investing platforms… this show is one of the few places with the audacity to tell you that - sure, a little delayed gratification is good… but the risk of too much delayed gratification is DENIED gratification.   Denied gratification is a terrible investing risk that most people either don't give enough weight to - or don't factor in at all.   And getting a $10M windfall is not as great as it sounds either.    History shows that the $25M Lottery winner quickly loses their money. Why does that happen?  Because it seemed like it was effortless to get the windfall, and because they don't know how to handle an amount like that.  It's really similar to a capital gains-centric investor that gets a windfall.  See, cash flow investors like you & I - we can be more measured because your income stream is metered out over time. That's why you are less likely to be irrational with your gains.     Now, I touched on some of those ways that you're paid in real estate investing.    Real Estate Pays you 5 Ways™ simultaneously. That's a concept that I coined right here on the GRE podcast. We since went on to have it trademarked.   Do you know when I first introduced that concept right here on the show - the month & year?    And I've since gone on to do a lot with “Real Estate Pays 5 Ways” to help other audiences understand real estate's five distinct profit sources.   Well, I had someone on Team GRE here do some digging into some of our legacy shows - our past episodes… because I wanted to know when I first said it… and it was apparently in May of 2015, so 8 years ago that I introduced it.   Since then, many other thought leaders have gone on to cite the phrase. Someone other than me even wrote a book on it. And that doesn't bother me at all. I'd rather that other people and readers get good ideas. That's more important than getting the credit.   Of course, c'mon, you can recite these 5 now like they're the Pledge Of Allegiance or something.    This is as automatic as the Lord's Prayer is for Christians. The five are: Appreciation Cash Flow Your return on Amortization and Tax Benefits and finally Inflation-Profiting But now, let's dissect this frog here a little. Why five ways? Why not another number, like real estate pays four ways or six ways?   It is five. There are no more or less. Each of the five are a distinct benefit.   A common flawed case that Real Estate Pays 4 Ways is that most real estate teachers omit the Inflation-Profiting benefit on the long-term fixed interest rate debt.   Any GRE devotee knows that with 5% inflation on $1M in debt, you only owe the bank $950K of inflation-adjusted debt after year one, $900K after year two, etc. (And in the meantime, the tenant pays all of your mortgage interest.)   Some that make the 4 Ways case question the Tax Benefit. Could the tax benefit really be considered a profit source, or is it just a deal sweetener?   It's a profit source.   Outside the real estate world, to obtain a tax write-off, you must have a real expense backed up with receipts, like building a new computer equipment or buying a new farm tractor.   Instead, the magic of real estate tax depreciation says that you can just write off 3.6% of the improved property value each year just for doing... nothing all year. No improvements necessary.   It's a phantom write-off, yet legitimate to the IRS.   Then the 1031 Exchange means you can endlessly defer all of your federal capital gains tax for your... entire life.   Yes, it's one of the few places in life where procrastination actually pays.   I've even heard some say that they're a fan of GRE's Real Estate Pays 5 Ways™, but they've discovered a sixth.   This often involves an event that's either unlikely or falls into one of the existing 5 Ways.   For example, "My appraisal value exceeded the contract price. I'm buying it for $320K, but the appraisal is $340K. I got $20K in instant equity. See, I was paid a 6th way."   No.   I mean, good for you, $20K of instant equity is a nice sweetener - that's a $20K credit in your net worth column that you received the moment you opened up that appraisal e-mail from your lender and saw it. Nice!   But an appraised value that exceeds the purchase price is not COMMON enough to be expected… and the 5 Ways are.   Also, you can make the case that "instant equity" is covered in the first way you're paid, Appreciation.   The reason that we invest in real estate is because there's virtually no other vehicle in the world where you can expect to be paid five ways at the same time.   That's a foundational principle - it's a core concept here at GRE.    It's why we do what we do. It answers the compelling “why” for real estate better than any answer there is…   …and that's why anything less than a 20 to 25% combined return when you add up all five ways is actually disappointing - and that's done with low risk - which is paradoxical almost anywhere else in the entire investing world.    If you haven't yet, take my free “Real Estate Pays 5 Ways” course in order to really understand each of your five distinct profit sources, where they come from, and how that all fits together.    It's at GetRichEducation.com/Course. The free “Real Estate Pays 5 Ways” short course is free at GetRichEducation.com/Course    Let's talk about real estate trends.   You know, real estate investing has a lot of relationships that you just wouldn't expect.    Part of that is because it intersects with the economy. Economies are complex and you get these relationships that are counterintuitive.    For example, in a recession, mortgage rates and all interest rates tend to fall, not rise.    Another exhibit is how debt BUILDS wealth with prudent leverage.   Another one that I've explained extensively here and the show and elsewhere is that higher mortgage rates correlate with higher home prices - not lower ones. That throws nearly everyone off.   Some physical real estate trends have been counterintuitive.   About 30 years ago in America - the 1990s - a new trend was fueled that everyone wanted to have a big kitchen.   New homes were often built with a big, fancy kitchen in the center of the home. Open floor concept - no galley kitchens anymore. That began back then.   And this was really the advent of - at the time - what we considered luxury amenities like granite and quartz kitchen countertops.    Anymore, that's become standard. Even our build-to-rent providers at GRE Marketplace often have new granite countertops in rentals.    But the paradox here is the assumption that a big emphasis on kitchens would mean that more people would start cooking at home.    Oh, no. Just the opposite, in the last 30 years, despite the big kitchens, more people eat out at restaurants and fewer people eat at home. Another real estate paradox.   Another counterintuition was the pandemic. Society locked down, people lost their jobs and you think that there are going to be mass foreclosures because with no job, no one can afford their mortgage payment.   People thought the pandemic will cripple the housing market. Oh, it was just the opposite. That created a housing boom. Everyone wanted their space. Another paradox.   Remember here on the show, shortly after Biden was elected, I told you that this administration - for better or for worse - will not let people lose their homes.    Then we had high inflation on the heels of the pandemic. That was bad for consumers and good for real estate.   But high inflation is supposed to mean that bitcoin and gold would surge. Well, another paradox, that brought crypto winter, and gold did nothing in high inflation, until more recently here.   Rather than high delinquency rates we've got low delinquency rates. In fact, the mortgage delinquency rate has been steadily falling for almost 3 years now. That's because of strong borrowers and tough lending standards.   Now, another real estate investing trend, though there's nothing paradoxical here, is mortgage rate resets.    Here in the US, on 1-4 unit rental properties, you're in great shape, whether you locked in your interest rate at 3% or 7% - the thing is that you have a steady payment… and on an inflation-adjusted basis, your same monthly payment amount goes DOWN over time - it's a tailwind to your personal finances.   Inflation cannot touch your steady, locked-in P & I payment.   But many Canadians are up for renewal with their 5-year fixed rate, 25-year amorts.    Yeah, just across the border in Canada, they don't have these 30-year fixed rate amortizing loans.    Their rate resets every five years.   One Canadian homeowner that I talked to, he doesn't live in that posh of a home in Ontario, it's just a little above the median housing price.    His family's loan terms are about to reset on the primary residence and it's expected to increase their monthly payment by $1,280 / mo.   How would you feel if that happened to you overnight? It's a nuisance at best. It might even crimp your quality of life - or worse.   That can't really happen to you in the US.    Having a 30-year FRM is like you having rent control as a tenant.    In coastal areas, some tenants that have a rent control deal - New York, California, Oregon - they want to live in their home for decades under rent control because there's a ceiling on their rent. Move out of their unit - lose the deal and they'd have to reset somewhere else.   It's the same with you as an American homeowner or REI in the 1-to-4 unit space. Your P&I price cannot rise.    And, I've talked about the interest rate lock-in effect before, constraining the housing supply.    Get this. Just last week, First American Title Company informed us that the average resident duration in a home hit a record high.    Amongst this lower intrinsic mobility rate, interest rate lock-in effect, and other societal trends, the average resident duration in a primary home in now 10 years, 8 months.    Lower mobility. Studies show that people are holding onto their cars longer than ever, and people aren't parting with their real estate either.   So, then, with fewer properties coming to market, let's update the available supply of homes.    This is pulling from the same set of stats that I've been citing for years, in order to be consistent. Check this out. This is the FRED Housing Inventory - the Active Listing Count of Available US homes.   Remember, historically, it's 1-and-a-half to 2 million units available. In 2016 it was still 1-and-a-half million.   Then in April of 2020 it dipped below 1 million and fell sharply from there - which I've famously called this era's housing crash.    It was a housing SUPPLY crash - which hedges against a price crash.   It fell to as low as 435,000 a year later in mid-2021. Gosh, under a half million.   It's rebounded as builders know that they need to build more homes. Six months ago it got up to 750,000 available homes - which is still less than half of what  America needs.   And now, today, did the supply get up toward at least 1 million yet? No.    It has dropped back the other way to just 563,000. This astounding dearth of housing supply - it's a condition that we could very well be in for over a decade.   This scarce supply is a long-term American condition. Yes, it's good for your real estate values - both present and future. But it is a problem too. It's a contributor to homelessness!   The Covid home improvement boom is officially over. So says Home Depot. They posted a revenue drop in the first quarter and warned that annual sales would decline in 2023 for the first time in 14 years.    Home Depot said that shoppers are now holding off on the big-ticket purchases they made during the pandemic and are choosing to break up larger projects—like remodeling a bathroom—into smaller, bite-sized pieces.   There's a fascinating new study from a bipartisan think tank shows that everyone wants to LIVE ALONE.   That's what Business Insider just reported on. Now, of course, the term “everyone” is an exaggeration.   But Statista and Our World In Data tells us that - get this - this is the number of SINGLE-PERSON households in the US - people living alone.   Back in 1960, that figure was just a paltry 13%.   By 1970, 17% of households were people were living alone.   Every ten years, that percent crept up to 23, 25, then 26%. By 2010 it hit 27% and by 2022 it hit 29%.   Now, you can't think that's good for society - to have all these single-person households. Almost 3 in 10 living alone. C'mon. Find a good spouse.   But in any case, that's good for you as a REI, when, say, 10 people live amongst 5 homes rather than 3 homes - absorbing all that housing supply and keeping it scarce.     Even if the US population stayed the same, there's more home demand - with that trend.   Of course, the US population is growing, though really slowly, probably just a few tenths of 1% this year.   But because of all the Millennials and the embedded “Work From Anywhere” trend, housing demand is pretty strong.   The recent rental housing demand and rent boom came almost entirely due to a surge in household formation -- young adults leaving the nest and roommates decoupling to get their own space... especially in urban areas.   People working from home want more space (without a roommate) AND are willing to pay more for it -- and able -- to pay more for it.   So if you're bullish on work-from-home remaining the norm for at least a chunk of the population (and I am), you should be bullish on the rental demand outlook.    And this has really revitalized America's SUBURBS - that's the area where you find that space.   The WFH-fueled rise of the suburbs is a wake-up call to cities, where, in the case of NYC, 26 Empire State Buildings' worth of office space now sits empty.  The typical office worker is spending $2,000–$4,600 less annually in city centers. Because even if they GO to the city to work, they might only do that 2 days a week now - not 5. I've got more for you straight ahead, including a new forecast on how much home prices are expected to rise this year.   Again, check out my free video course if you haven't “Real Estate Pays 5 Ways”. Get it at GetRichEducation.com/Course   I'm Keith Weinhold. You're listening to Get Rich Education.   Yeah, big thanks to this week's show sponsors. I'm only bringing you those places that will bring real value to your life.   Now, here at GRE, I recently read an offer that one of these major sports gambling platforms sent us. They want to advertise on the show here.    Do you want to hear sports gambling ads on GRE? I've got an opinion about that, that I'll share with you shortly. Gambling is not the same as investing.    If you're wondering why you're hearing more about gambling, especially sports gambling than you had just a few years ago, well…   Now, just last week, it was FIVE years ago that the Supreme Court lifted a federal ban on sports gambling in the US.    That spawned a multibillion-dollar industry that's transformed how Americans watch, talk about, and experience sports.   Americans bet $95B on sports in legal jurisdictions with consumer protections last year. That's more money than the amount spent on ride sharing, coffee, or streaming… and you can bet that the off-the-books gambling number, if added in, would make that WAY higher. Two sports betting companies, DraftKings and FanDuel, control 71% of the US market, per gambling analytics firm Eilers & Krejcik. Gosh, that's almost a duopoly right there. But despite that, these companies have struggled to turn a profit. FanDuel recorded its first quarterly profit just last year, and DraftKings has YET to report a profitable quarter. Well, I'll just tell ya, it's one of those two big companies that inquired about advertising on GRE. Of the 50 states, the number is 33 that allow it. That's 2/3rd of the nation that has legal sports betting (Washington, DC, has it too). Another four states have legalized sports wagering, but don't have any sportsbooks operating yet. Interestingly, the three most-populous US states—California, Texas, and Florida—have not legalized sports gambling. And they account for 26% of all teams in the major North American pro leagues. The number of women joining sportsbook apps jumped 45% last year, marking the third straight year that new women users exceeded men. Hmmm. I guess that's the growth market there. My inclination to have gambling advertising and associating with these companies is NOT to do it… not to accept that advertising income. I don't see how that's serving you. This feels like a conflict in my gut and in my heart. Gambling is sort of the opposite of investing for a stable rental income stream.  I mean, either way, I guess you're putting your money at stake. But that's about the closest common ground I can find.  At least at this time… and probably all-time, it's a “no” for gambling content here. That's not any sort of moral judgment on the activity at all. I mean, gosh, as a teenager, I was really into sports gambling, but it was the informal kind. My friend & I each lay a $10 bill next to the TV - Phillies vs. Mets. Winner gets the $20 bucks. So, my inclination is a pretty easy “no”. Hook up with our sponsors - they support GRE. That's Ridge Lending Group, offering income property loans nationwide. JWB Real Estate Capital - if you want performing income property, JWB really has Jacksonville, FL sewn up & locked down. They do one thing and do it well. Then, Freedom Family Investments. Get started with them for real estate funds that are ultra-low hassle. Text “FAMILY” to 66866.  Where will the next ten years take you & I on the show here? I would love to be along for the ride with you. I hope that you'll be here with me.   Let me just take a moment to remind you that I'm grateful to have such a large, loyal audience to… well, listen to the words that I say every week. Thank you for your support.   This show has almost reached the 5 million download mark. I've been shown that it's between 4.8 and 4.9 million downloads now. I'm genuinely honored and a little humbled about that even.    Let's listen in to this 3+ minute CNBC clip. This is Lawrence Yun, Chief Economist at the NAR - the National Association of Realtors talking about the housing market just last week.    Now, a little context here - historically, the NAR has tended to give these dominantly sunny side-up, glowing, everything is always good & getting better kind of remarks on the housing market.   But I've been listening to the NAR's Lawrence Yun for quite a while and think he's been rather balanced.    Here, he discusses how real estate sales volume is down - which has a lot to do with low supply, that mortgage rates are steady, and that prices are slowly rising in most parts of the nation.   [OK, Vedran. Here's where we play the insert.]   0:09-3:42 First words to keep are: “Lawrence Yun…” Last words to keep are: “... half of the country.”   https://www.cnbc.com/video/2023/05/17/home-prices-still-rising-despite-sales-dropping-says-national-association-of-realtors-yun.html   Now, Lawrence Yun did go on to say that he thinks that the Fed should lower interest rates by a half point, and more.    Let us know if you'd like us to invite Lawrence Yun onto the show. As always, you can leave your suggestions, questions, or any comments about the Get Rich Education podcast or any of our other platforms at our Contact center at: GetRichEducation.com/Contact   When it comes to national HPA, just last week, we learned that Zillow revised its home price outlook upward.   Between April 2023 and April 2024, Zillow expects home US home values to rise 4.8%.   You've got more signs that more & more American markets are being considered a seller's market rather than a buyer's market, which tilts toward price appreciation, though I still think pretty moderate price appreciation this year.    CNN recently published an article where they even posited the question: “Are Bidding Wars Back?” Yes, they are in a few markets.     Another measure of housing supply is the MONTHS of available supply. I think you know that 6 to 7 months of inventory is considered a balanced supply & demand market.   If it gets up to 10 months of supply, you tend to see little or no HPA.    Well, indicative of the low housing supply, we hit a winter high of 4-and-a-half months of supply.    And today, it's down to just 2.7 months per Redfin. 2.7 months. That's just another sign that demand is outpacing supply.   Then, among those entry-level homes, like the NAR's Lawrence Yun eluded to, they're even harder to find… and they're the ones that make the best rentals.    How hard are these to find? I mean, in some markets this can be even more rare than finding a true friend? Ha!   Is it as rare as the Hope Diamond? Or perhaps a Honus Wagner baseball card? Ha!   Well, the good news is that we actually have the inventory that you want at GRE Marketplace.   Besides that, we actually have something that you really like and that is - mortgage rate relief to help you with your cash flow.    Purchase rates have been hovering around 6 1/2% lately. That's the OO rate, so for rentals, it could be 7%+.   Well, how about rolling back the hands of time? Through our great relationships here and our free investment coaching, you have access to 4.75% interest rates on investment property - and many of these are new-builds in path-of-progress Florida.   Yes, our free coaching will get you the 4.75% mortgage interest rate, they'll even help write the sales contract for you if you're new to this, walk you through the property inspection, the property condition, the appraisal.    Yes, a 4.75% interest rate… today, from these homebuilder buydowns. I don't know how much longer that can last.    To be clear, you're not buying an income property FROM us. You're buying it with our help and our connections. It is all free to you. This is educational support for you.   In fact, our coaching support like this through our sole investment coach, Naresh is becoming so popular, that I can announce that we soon plan to add a second investment coach. Yes! A new one.   And interestingly, you have heard of this soon-to-be second investment coach because they've been a guest on the show here a number of times. Yeah, we'll make that introduction on a future show. You'll find THAT interesting.   But, our Investment Coach, Naresh, does have some slots open to talk with you and help you out. A lot of the best deals currently with these 4.75% rates are with new-build Florida duplexes and fourplexes.    You can use them for rental SFHs too. Last I checked, the deals were a little better on the duplexes and fourplexes.   You probably thought that Sub-6 and sub-5 mortgage rates are about as unlikely to make a sudden comeback as AOL or Myspace, but we've got them here now.    Now, that 4.75% is just one of two options that we have with some Build-To-Rent builders that are fairly motivated. So to review the first one fully… you can get a   4.75% interest rate with a 25% down payment 1 year of free property management and $1,000 off closing costs per deal That's one. Or, option 2 is: Zero down payment - yes, 100% financing 2 years free property management $1,000 off closing costs per deal Negotiable price, open to offers They are the two options.  It's rarely more attractive than this. If you hear this in a few weeks, or perhaps months, I doubt that these options will be there any longer.   So I'll close with something actionable that can really help you now.    If you want to do it yourself, that's fine, like thousands of others have, get a selection of income property - despite this national dearth of supply at GREmarketplace.com   Or, like I said, right now, it's really helpful to connect with an experienced GRE Investment Coach - it's free - our coach's name is Naresh - for those 4.75% interest rates or zero down program - whatever's best for you… you can do all that at once at GREmarketplace.com/Coach   Until next week, I'm your host, Keith Weinhold. DQYD!  

Brian Feroldi: Financial Statements Explained Simply Brian Feroldi is a financial educator, YouTuber, and author. He has been intensely interested in money, personal finance, and investing ever since he graduated from college. His mission statement is to spread financial wellness. He loves to help other people do better with their money, especially their investments. Brian has written more than 3,000 articles on stocks, investing, and personal finance for The Motley Fool. In 2022, Brian's book Why Does The Stock Market Go Up? was published. The mission of the book is to demystify the stock market. It was written to explain how the market works in plain English. He's also the co-creator of the course, Financial Statements Explained Simply. Most of us are not accountants, but whether you work in a small business, a large corporation, a non-profit, or a government agency, the numbers define what resources that we have. Being able to understand and speak the language of financial statements is essential for leaders who want to influence decisions. In this episode, Brian and I review how to understand and read one of the most important reports for any organization: the income statement. Key Points A few hours of focus on the fundamentals of financial statement can provide you understanding and influence throughout your career. An income statement (also called a profit and loss statement or P&L) shows revenue, expenses, and profit over a period of time. It's similar to your personal budget. Revenue minus cost of goods sold is gross profit. Subtracting operation expenses from gross profit give you an organization's operating income or EBIT (earnings before income and taxes). Depreciation spreads out the cost of tangible assets (equipment, vehicles, buildings) their useful lives. Amortization does the same thing for intangible assets (loans, copyrights, patents). The “bottom line” is literally the bottom line at the end, either net income or net loss. Resources Mentioned Brian Feroldi's newsletter Financial Statements Explained Simply (course) Related Episodes Improve Your Financial Intelligence, with Joe Knight (episode 244) How to Approach Corporate Budgeting, with Jody Wodrich (episode 355) Dumb Things Smart People Do With Money, with Jill Schlesinger (episode 396) Discover More Activate your free membership for full access to the entire library of interviews since 2011, searchable by topic. To accelerate your learning, uncover more inside Coaching for Leaders Plus.