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2 episodes with jeff here
2 episodes with jeff here
Jeff Kober is an accomplished actor, photographer, writer (Embracing Bliss), podcaster (Embracing Bliss & Day Shift) and vedic meditation teacher. He joins Zak and Dustin for one of the most profoundly wonderful spiritual conversations we've had on this podcast. Our discussion covers everything from his origins in Billings, Montana, to his film and TV roles in such projects as Out of Bounds, The First Power, Law & Order: SVU, The X Files, New Girl, and China Beach, to parasites, vedic meditation, the ego, working in the carnival, killing MC Hammer on screen, the process of humanizing dark characters in acting and so much more. Hang onto your seats, buddy boy. This is a great one! Visit Jeff's website - HERE Purchase Embracing Bliss - HERE Watch Day Shift with Jeff Kober - HERE AND Watch our interview with Jeff HERE! Dig our show? Please consider supporting us on Patreon for tons of bonus content and appreciation: www.patreon.com/twodollarlatefee Please follow/subscribe and rate us on Spotify and Apple Podcasts! Apple Podcasts: podcasts.apple.com/us/podcast/two-dollar-late-fee Spotify: open.spotify.com/show/ Instagram: @twodollarlatefee Subscribe to our YouTube Check out Jim Walker's intro/outro music on Bandcamp: jvamusic1.bandcamp.com Additional music by Sellorekt/LA Dreams - “The Dark Hours” Check it out here Facebook: facebook.com/Two-Dollar-Late-Fee-Podcast Merch: https://www.teepublic.com/user/two-dollar-late-fee IMDB: https://www.imdb.com Two Dollar Late Fee is a part of the nutritious Geekscape Network Every episode is produced, edited, and coddled by Zak Shaffer (@zakshaffer) & Dustin Rubin (@dustinrubinvo) Dig our show? Please consider supporting us on Patreon for tons of bonus content and appreciation: www.patreon.com/twodollarlatefee Please follow/subscribe and rate us on Spotify and Apple Podcasts! Apple Podcasts: podcasts.apple.com/us/podcast/two-dollar-late-fee Spotify: open.spotify.com/show/ Instagram: @twodollarlatefee Subscribe to our YouTube Check out Jim Walker's intro/outro music on Bandcamp: jvamusic1.bandcamp.com Additional music by Sellorekt/LA Dreams - “The Dark Hours” Check it out here Facebook: facebook.com/Two-Dollar-Late-Fee-Podcast Merch: https://www.teepublic.com/user/two-dollar-late-fee IMDB: https://www.imdb.com Two Dollar Late Fee is a part of the nutritious Geekscape Network Every episode is produced, edited, and coddled by Zak Shaffer (@zakshaffer) & Dustin Rubin (@dustinrubinvo) Learn more about your ad choices. Visit megaphone.fm/adchoices
You have a great product or service. But connecting with new clients can feel like hitting a brick wall. So how do you turn a hard "no" into an enthusiastic “YES”? My guest today, Jeff West, specializes in teaching business leaders what to say when clients object to your offer. And how to make the sale while building meaningful client relationships. Jeff is also the co-author of the new book "Streetwise to Saleswise" alongside my friend Bob Burg. Today, Jeff reveals his 5-step formula for addressing client objections. It's all about showing emotional control and empathy—but not in ways you might expect. Jeff will show you how to get to the heart of your future client's concerns and respond directly to them! Don't just close a sale. Jeff's formula will help you open doors to future opportunities and success. Connect with Jeff HERE. Buy Jeff's new book HERE. Are you a financial advisor? Join the exclusive email list for financial advisors HERE. Get access to Simple Teen Success HERE. Order your copy of the USA Today and Wall Street Journal bestselling book Good Money Revolution here: https://amzn.to/34hSonE Book Derrick to speak at your next event HERE. For daily tips to help you make and save money, follow us on Instagram @derricktkinney
Beans talks with the creative team behind the hilarious new series Bigfoot and Jeff. Available to watch now on YouTube. Bigfoot and Jeff on YouTube Support Bigfoot and Jeff HERE! Alasquatch Podcast Website
Working with amazing, hard-working property management entrepreneurs is what makes being a coach worth it. Join property management growth expert Jason Hull in today's episode as he interviews DoorGrow client Jeff Garner. Jeff went from 150 to 420 doors in 4 months! Learn how he did it. You'll Learn [02:35] Why would anyone get into property management? [12:40] Fixing the foundation of a property management business [15:14] Importance of culture in a business [25:05] Why you need a coach [27:34] Navigating operational issues Tweetables “No matter what market we're in, it's good. If we're going to the moon, management's great. If we're crashing, it's even better because people can't sell their properties and they go, ‘Oh shoot, we'll turn them into rentals.'” "Go where they won't go and do what they won't do. That's where the money's at," “It all starts with your mindset.” “Weekly commitments, and you'll start to see the momentum build big time when the team are all visible and can be seen and there's accountability and they get recognized because you have that system installed, performance sometimes goes up.” Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive TalkRoute Referral Link Transcript [00:00:00] Jeff: I have 420 doors and I have more peace of mind, more direction and I know where I'm going to be and where I'm going and how to get there. [00:00:12] Jason: Welcome DoorGrow Hackers to the DoorGrowShow. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing in business and life, and you're open to doing things a bit differently, then you are a DoorGrow Hacker. DoorGrow Hackers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not [00:00:38] because you realize that property management is the ultimate, high trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management business owners and their businesses. We want to transform the industry, eliminate the bss, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. I'm your host, property management growth expert Jason Hull the founder and CEO of DoorGrow. Now let's get into the show. [00:01:08] And today's guest is Jeff Garner. Jeff, welcome. [00:01:14] Jeff: Thanks man. Glad to be here. [00:01:17] Jason: So Jeff, what's the name of your property management business? [00:01:19] Jeff: Homes Stretch Property Management [00:01:21] Jason: Homes Stretch. All right, cool. And why'd you pick that name? [00:01:26] Jeff: I feel like real estate investing it's a long-term play. It builds wealth over the long haul. And for our home stretch of our life, whether you decide your home stretch starts at 40 because you retire early, or whether it's 60 or 70, if you are buying real estate, really it, you know, It's about letting the tenants pay down, you know, principal balance, pay down, depreciation, tax, write-offs, appreciation. Sure cash flow's nice every month, but you can make millions over, you know, 20 year period, 25 year period. And so I see the real value in real estate is being that, so we want to get our owners to the home stretch and, you know, that's kind of how we look at it. So we want to improve and maintain your property so that someday you can either sell or refi and it's in great shape and it's an easy process. Or you just want to keep it in cashflow forever. So our job's to give you freedom and peace of mind knowing that your properties are being taken care of better than you can or anyone else so. [00:02:29] Jason: Nice. Love the brand. So Jeff. Why don't you give people a little bit of background on you. How did you start getting into real estate and what made you decide to do the crazy thing of starting a property management company? How did this all happen? [00:02:43] Jeff: Yeah, it was the crazy thing because-- so I'll tell you a little bit about me. Real estate's the only business I've ever been in. I got my real estate license when I was 22. I was going to be a real estate agent. Found a niche working with investors because when you're 22, you know, growing up doesn't come overnight. And so when you're got all your, "oh shoot, I'm showing property today," and you have to crunch the beer cans and put them under your seat. because you just turned 21 a year before, you know, it can be a little awkward putting the 40 year old mom and dad and their kids in the car to go show them property. [00:03:18] Right. Which I did okay at. I did fine. But I found a niche in working with investors because you could sell them one house and most of the time they don't even want to get in your car. Half the time, once you get know what you're doing, you just give them a lockbox code and tell them to call you back and tell you what you think, and they give you a number and you write it and put it in. You could sell them 10 or 20 houses. So I developed a niche at that. I got really good at finding deals and I would send them to my guys. Shortly after that, I decided that I was on the wrong side of the table, you know, three or four years of that. I go to closing, I collect my $2,500 commission check, and he gets a check for $20,000 because he flipped it, right? And I just thought, wait a minute, I'm finding the deal. I'm calling him up, I'm telling him what number to put it in at and he's making all this money. What am I doing wrong? So I got into that side of the business, you know. So, 08 hit crashed. All of us really put me in a position to where I to make a decision on what I wanted to do because all my investors were gone. Right? [00:04:17] They were trying to stay alive. Yeah. You know, in 08 for the people that didn't go through it, was like If you worked in Walmart and all of a sudden the next morning you woke up and no one will shop at Walmart again. [00:04:31] Jason: Right? [00:04:31] Jeff: Yeah. Never walks through the door. [00:04:34] Jason: Yeah. So must have been scary. [00:04:37] Jeff: Yeah. And so, I thought, "well, this investment thing's really what I want to do. So I'm going all in. It's time to restart. So that's what I'm going to go all in at." So I really looked at what happened and I realized that history, you know, tells the story and that everyone was riding this wave and had no idea it was a wave because no one does the research to, you know, see what the cycles are. I didn't know there was a cycle. I was young. Yeah. And so the common sense thought came, well, we were at a high. If I was a real investor and I was really good at what I did, I would've been taking vacations, waiting for this crash to happen, and then I'd go out and buy everything I could find and hold it. Yeah, so I did that. I bought 110 rentals over a three year period, all at, you know, probably 20% of what the market is today. And outsourced the management a couple times. Horrific. Cost me more money than you know, one, when I was at 110 properties, I had to take them back overnight because I realized that I had 16 vacants and they didn't even know about half of them. [00:05:42] Really? Yeah. It was horrible. They just they got overwhelmed and so I built a management company overnight to manage my own properties and had zero desire. It was the last thing on the absolute planet I wanted to deal with was tenants and toilets. I did not get into rentals to deal with tenants or maintenance. It didn't, yeah. So I put together a makeshift management company and decided I'd never take on another property of anyone else's. I'd only do my own, because I was going to do this, it was going to be for myself. There certainly wasn't going to make a hundred dollars a month on a property and do all this for somebody else. Right. That's, that was my thought on being real. And a few years went by '16, '17, realized that I'd gotten tons of equity and I had properties sitting there with 50, 60,000 in equity and I'm making 200 or 300 a month. And I thought, this math doesn't make sense anymore, right? So I sold off over a two or three year period, about 50 of them. But everyone apparently, everyone knew management is a tough gig and there's not a lot of good management companies out there. Why? Right? There was no DoorGrow then that I'm aware of at least. Right? So everyone in the management business just thought, "this looks like we can make some money, let's do this." [00:06:57] But they had no idea. The machine, it has to be to run well. Yeah. And so they said, "well, I'll buy that property. I'll even give you retail for it, but you have to keep the management." So to this day, I still manage all 110 of those properties, even though I only own 60 of them. Right. So to get the money I wanted, I had to keep the management. And then I just kind of started looking at it is in the last couple years when I realized that we could potentially be getting to another place. If you look at the charts and you look at history that we're you know, we're at a high now, will it last four years longer? Probably. So I had to kind of reevaluate what I wanted to do and I looked at all my businesses, flip business, wholesale, you know, my rental portfolios and my management company, I went, wait a minute, what am I doing? I'm focusing all this energy and chasing down deals and having all these, you know, taking all the risk on everything I buy and just grinding away constantly. For over 20 years now. And I got this management company, although it's not sexy, everyone tells me it's the worst thing in the world to do. Yeah. You know, I realize it was the one thing that was repeatable, scalable, and I could predict. And no matter what market we're in, it's good. If we're going to the moon, management's great. If we're crashing, it's even better because people can't sell their properties and they go, oh shoot, we'll turn them into rentals. I thought, "wait, what am I doing? I'm looking at this all wrong." I just started to look at it and so I started working on getting really good at it and filling all the holes on my own, right, with my own. And it's, you know, and I realized that with the right team in place and the right mindset, you know, which is we want to help landlords, right? I want to take 20 something years of resources and try to convert over this management company and give them to everyone else-- that it could be a great business. And then I realized, like I preach, because I did some coaching in the real estate space throughout the years "go where they won't go and do what they won't do. That's where the money's at," right? So if everyone's going after retail flips and a really nice b and b areas, then go look in the C areas because they're being neglected. If everyone's after all the C properties because the cash flows, so well then go up to your A or B areas and start doing flips because those are being neglected. Nice. Certain town everyone's afraid of? Good. Let them be all fighting in one place and you go there. And so I realized that was what was going on in the real estate market for the management business. So I decided that's what I wanted to focus my energies on. So I literally burned all the other boats, man. No marketing, no wholesaling, no flipping. [00:09:40] Jason: Wow. You went all in on property management? [00:09:42] Jeff: All in on property management, period. I got online, I did what I did 15 years before, after 08 happened, and I thought, "I'm going to redo myself. How do I do this?" And so I just got online and I started digging around and trying to teach myself things and I got coaches back then, and even though I knew 90% of what they were trying to teach me, because I got coaches in the flipping side, right? I knew you know, 80, 90% of what they were teaching me was that 10 or 20% where I knew would bring me all my money, right? So I did the same thing here and that's how I came to DoorGrow is I found you guys really were the only real system oriented, you know, nuts and bolts teach the how and not just the why. You know, a lot of people want to tell you why you do. Oh, well, you know why? They want to give you the why on, you know, but they don't want to give you the nuts and bolts of the how and tell you connect A to B to C to D and you'll get your results, right? And so, I found you guys, and I knew that's all I was missing to having success because the rest of the management companies all had bad raps. You couldn't talk to a landlord that really loved their management company. Yeah. So I knew I could fix, put those pieces together and really treat it like a business based off of giving people their freedom and peace of mind, knowing that their properties are being taken care of better than theirs. [00:11:10] If you can do that, anyone listening to this, if you can wrap your mind around being of service. No one else is doing that in the management business. Right? Yeah. You will dominate, it's like I used to say when I had lots of rehab crews going, if someone shows up and does what they say and has half of the talent that I need them to have, they could be rich. That's all they have to do. Just not be the best, but do what you say and show up so it's predictable and we can communicate well and get stuff done. So if you did that, and you can do that with a mindset of, "I want to be of service to the industry." Be the best. You'll dominate, end the story, but you have to wrap that around your mind, you know, and it'll come out in your calls. It'll come out in your conversations at the grocery store. It'll come out everywhere. [00:12:00] Hell, I pulled 16 doors out of my gym in the first 30 days after joining DoorGrow because I just got the structure when we went through mindset and and some sales stuff of. Really taking what was in my mind and putting it in paper and going through the process of splitting the page into four spots and right. You know, going through everything. I got to dial it in and then boom, that was it. There's nothing else to talk about, but what I came up with there, you know, home stretch was the name of the business because it fits what I'm trying to do. I know what our mindset is, the culture for my company and you know, we started just plugging in systems and processes. [00:12:40] Jason: So let's talk a little bit about it. because you said nuts and bolts, but to most property managers, they're like, "nuts and bolts means how do you like do maintenance and how do you plunger a toilet?" you know, like it's like the practical stuff where you know how to manage properties. Yeah. You know how to deal with tenants, you know how to like do all that. What challenge were you dealing with that brought you to DoorGrow and how did that help? [00:13:04] Jeff: It's really hard to explain that. What I really had was is I had a business and it functioned and I did okay, but I did not feel at 150 properties, I did not feel I could bring on 10 more doors. I felt like it would all crumble and break because I had no idea what I was doing really. Right. I had nothing to model. I had just said I got maintenance, my maintenance was horrible. I had all these guys that that was one of the hardest parts to find. But I had all these just subcontractors and every once in a while we'd find someone to come on full time, but you'd have to trust them to be out there all day doing what they said they were doing. And I didn't know how to run that. I didn't know how to manage that. I didn't know how to systematize that where I knew what was going on at all times. And I didn't feel comfortable going any bigger because, I felt like I could see why other management companies had problems, and I don't think they want to suck, right? No, I don't think so. But they just don't want to say no to the money. [00:14:06] "Hey, I got 20 doors." oh, we're going to do a great job for you. Let's bring it on. And they're already struggling with what they have. Yeah, right. Just think it's magically you're going to work, or, you know what? It'll give me more money in that way. More money will mean I can do more things. And no it doesn't. It creates more problems that cost more money. So I needed the systems, I needed the processes. Those are the nuts and bolts I'm talking about. Got it. Who to hire to do what and to, because that's it. [00:14:34] Jason: I mean, so what's changed then? Like you had 150 doors, you came to DoorGrow and we started helping you change a lot of stuff, right? Yeah, absolutely. So, what things have you changed since joining DoorGrow? Yeah. What are some of the first things we start working on with you? [00:14:51] Jeff: Okay, well, really it was just getting my mindset right was the biggest one because once my mindset was correct and I knew and I had our, what we were trying to do, where we could be of service, that opened my mind up to, " how do we do that then?" Right. So that's sort of answering questions for me, you know. [00:15:14] Jason: So with mindset, what you're saying is I believe you're talking about all the culture stuff that we took you through stuff. Just the culture stuff and just kind of, I mean, that's the core foundation of the business. Like if we want to make this business built around you, we've got to figure that piece out, right? So we started with that and that probably had a significant ripple through everything. [00:15:33] Jeff: Imagine like this, you have children, you all of a sudden you, "I'm going to be the best dad ever and I'm going to have kids." Next thing you know, you got two or three of them, they're under five. You have no, literally imagine your parents weren't good. I don't know. They didn't model worth a crap. Okay. Like, how do I do this? Like, I can feed them, I can put them to bed and I can keep them from killing themselves, but do I really know how to raise them to have commitment, how to be honest, how can I make a five year old a strong member of society at 28 years old, right? But if you have a culture and a mindset, you know, "I want my children to be like this. I want them to have this belief system," and how do we give them that belief system? Okay, "well, let me look into that. Okay. Well, if we go to this school, it'll give them these values and then I can back them up at home. And then with bedtime and, oh, I did a little research here. If I put them to bed at this time, get them up at this time. Oh wait, the sugars and dyes are bad. It makes them spastic and oh, well I'll take that out." And you start learning, right? But it all starts with your mindset. Right. And so my mindset changed and it started making me go down the rabbit holes that are all in DoorGrow of, "Okay. Leasing-- my leasing person that we're just winging it and working out of this software that we really were just doing all workarounds and spreadsheets because we really didn't know how to use it. Watch this. Watch these videos on leasing, watch these videos on placing tenants." And then I would watch them and then we would meet and put together a process and a system on how it's going to go instead of just winging every call we got. [00:17:17] So I started building it out position by position. I went and I found a new property manager that had the capacity to be a really good property manager and grow from some of the-- I'm still new inDoorGrow. I'm only six months in. Right? And honestly over the last month I've had a two months, I've had a really hard time getting into DoorGrow because I. [00:17:42] I'm up 420 in doors. Right. [00:17:45] Jason: So, yeah. So, and let's get to that. That's interesting. But so the children, in your analogy here, this is your team you're talking about, and this is my team. Yeah. And you were in it for what, maybe a couple months and then you started replacing the entire team? [00:18:00] Jeff: The entire team is gone except for two people. And one of the two was almost gone. Because of just be all of a sudden having this parent mindset, I kind of coached him, or you know, raised him in a way in this little short period of time to where he's changed. Nice. And he is just, and the reality of it is, what I found out is he was so unhappy because of how screwed up systems were that everything rolled down to him that once I realized that I got to take things away, put them create and find out what was broken on his role. And he was a main construction manager that we created a different systems and now he's probably one of my strongest pieces. So everyone knew the whole team is new. [00:18:50] Jason: So new team, you installed a good culture, you're then able to work with us on the hiring piece and getting good team members in place. Absolutely. You've leveled up some team members because you have culture and you know, like what you deserve and want as a business owner and what have the type of team and we want to build around you. Absolutely. Most business owners build teams around the business, and that's probably what you did before. [00:19:15] Jeff: Absolutely a pure necessity. And I, I didn't but hire people that fit the culture or what I was looking for. I just hired a warm body that seemed like they would work, and I thought, we'll just teach them what we need them to know. Yeah. And their mindset or what they did in their off time or their goals didn't mean they were their business. [00:19:36] Jason: Right. Yeah it's amazing. Some simple frameworks like just understanding the three fits to hiring. Yeah. Like culture fit, skill fit, personality fit can shift hiring significantly. So then you started working pretty quickly with one of our coaches on acquisitions. You went out and found a deal. And in four months you were at 420 units. [00:19:59] Jeff: Yeah. Yep. 420. And I've got probably we're I'm just, we might be at four 40 or four 50 because we have 20 or 30 vacants that Okay. That are under, that are kind of on make ready that we took over that we haven't been able to fill yet because we have this construction backlog, not on our end, but on his backend. The guy that I bought the management from, which was part of the deal, and one of the reasons he sold was because he had done exactly what everyone else did. He got too big and wasn't saying no, and got backlogged and yeah, he was starting to provide really horrible service, so I went in, bought it from him at a really good price for me, but I think it was still a good price for him because if you're at a point to where you're going to, it's stressing you out, you can't get it all done. [00:20:46] It's affecting anything, all your other revenue streams and people are getting ready to start leaving you. Someone walks in "wait, you can take this off my hands and give me money? Okay. Where do I sign?" You know? [00:20:59] Jason: So what are the things did you do with our team? Have we done a website for you? [00:21:03] Jeff: You did a website. [00:21:05] Jason: What about your branding? Did you change your brand at all? [00:21:08] Jeff: Yeah. Hell, hell yeah. I was starting point property management. I changed my brand. We rebranded a week before this acquisition, which I was like, I'm going to put this rebranding thing off because that's another, and then we sat down and I was talking to the team and I don't think they loved it, but they agreed that doing it before we transition all these new owners and tenants over was going to be the way to go because then we would have to change it all up in a couple months anyway when we rebranded and had them in a new website and portal and such so. [00:21:38] Jason: How about pricing? Did you change your pricing? [00:21:41] Jeff: I'm on the hybrid pricing. Okay. The three plans. The three plans now, which is exactly from you guys. Which was another thing that really helped me because with changing the pricing and doing the hybrid plan and going through that training, and it was, once again, it was all the why's we're doing it. I got to design the plans that fit our culture and provide the service we wanted to provide. It gave me more confidence, honestly, in what we were doing, even though I was going to be charging more now. So yeah, we're on the three tier pricing, hybrid pricing. [00:22:19] Jason: So you've changed your team, you changed your branding, you changed your website, you changed your pricing model. You've probably made some adjustments to your pitch. Do you do the Golden Bridge stuff? [00:22:31] Jeff: I didn't have a pitch before. You didn't have a pitch? I didn't have a pitch. I'd just say, "Hey, we do management. Can we manage your properties?" And I just like, that's what I'm saying, when I didn't know, like I couldn't wrap my mind around, because I'd been flipping houses and wholesaling. I had that down to a science. I am a fricking ninja in that. Yeah. But the management side, it was just, "Hey, we manage properties." Yeah. This is what we charge if you want to come over. Cool. If not, I got to go. I got other calls with me, you know, and to have a pitch. So it was literally everything and the pitch made it. That's what I'm saying. I pulled 16 doors out of the gym. Yeah. Just "what are you doing now? Oh, I'm doing management and it's--" 'boop,' just going into my pitch casually, just real casual because we're at the gym. "Do you know anybody that manages any properties? Yeah, I do. I got this buddy. Cool. Could I talk to him? That was it. [00:23:23] Jason: So I love clients like you, Jeff. because you implement, like you went through the rapid revamp and you did it rapid, like you got that stuff done. Yeah. Pretty quick. And then you start working on acquisition because you saw that opportunity with our acquisitions coach and you're like, "I'm going to do that." and you're just doing stuff and I think that's a testament to you. You know, this is part, I think when we work out more often at the gym, and I think our brains work better. I think that's science, like that's been proven. Like there's something released in our muscles. And you're a big dude. I got to get to your point. I'm trying to work out to catch up to you. [00:23:59] Jeff: I'm going to be pitching you on coaching you in that area. [00:24:02] Jason: But I think I appreciate that you've been implementing this stuff rapidly and I asked you at DoorGrow Live, I was like, "where do you see yourself, you know, do you think you could get to a thousand doors?" And you were like, "yeah, probably a year and a half." Like it's nothing. Like it's nothing. And you're like, "well, maybe two years." And I was like, "do you know how ridiculous that sounds to most people?" Yeah. So, but I believe it. I believe it for you. I believe it's possible for you. And I believe any of our clients could do it if they just. Take action and implement. And in order to do that, they've got to trust us. And I appreciate you putting your faith in us and trusting us and just putting your head down and doing the work. [00:24:41] So what would you say to other property managers that are maybe like the company that you bought or maybe like the way you were before if they've just been watching DoorGrow on the sidelines and they think they know what we're about and they think we're just marketers or something that like have a decent sales pitch, but they don't know if they can trust us? You're behind the paywall. What would you say to them? [00:25:04] Jeff: Well, I mean, besides being behind the paywall and doing it and having experience with it, I know coaching and I know that space, and so I recognized DoorGrow immediately from watching your marketing and just digging in a little that you guys taught the business. It wasn't a marketing ploy to get people to sign up to you. Actually, it wasn't like I was just going to get a bunch of motivation, "go out there and do it!" right, right. Because I motivated it was, like I said, it was the whys and the hows and and the all the processes and systems. And so man, it's all there for you to just do it. You would just do it. You would literally just go, "okay, I'll start at one and work to 10." I had a management company already. If I had to redo it all when I got real life processes and systems, and then I saw that there was people in it that had a hundred doors, 500 doors, a thousand doors, and I'm like, "that's what I need." I need to be surrounded by people that are at a higher level of success and have been where I am and now are where I want to go. And so if you are watching and you have management already and you are struggling, and it sucks. Whether it's for you or your customers, or both? I have 420 doors and I have more peace of mind, more direction and I know where I'm going to be and where I'm going and how to get there. And more time to myself if I wanted to take it. I don't take it because I still have big goals and so I'm working a lot. But then I did with 150 doors. That's awesome. I had more certainty with 3x almost than I did where I started. I got the team in place. I watched them problem solve all day long on the chat and working systems and the processes and everything happens the same over and over again. [00:27:01] So it's really a business in a box, but you have to do it. You can't question yourself. You can't make excuses. You just have to do it. It'll be really easy if you just one foot in front of the other and take the steps. It's all there. And I had to stop because I can't wrap my mind around everything until I get to another place. Right. Yeah. Like I can only do so much and it's growing and working and so like, I've got to pause and then I'm going to dive back in and I don't know I'm still in DoorGrow obviously regularly. [00:27:34] Jason: Well, let's do some co coaching live on air. Let's figure out what's your next step? Ready? Okay. Yeah. You open? Okay, cool. So you're at 420 units right now. Yeah. Yeah. You've finally got a good team, you've got good culture. Yeah. So the next level to get to, you know, to break past that next kind of major barrier, which maybe is 600 doors, you have to have a great team, but you got to get three major systems installed. Those three major systems are going to be, you have to really get a good process system installed. Not just process documentation, but a system to where they're running the processes each time. So we've got DoorGrow flow. You can use that, lead simple, process street, something, but you need a good process system. That's one piece. The other piece you need is you need a really good people system. So you've started to create the culture, you've started to install that system. Then we want to make sure-- and did you use DoorGrow hiring and do grow ATS and work with Sarah on some of that stuff? [00:28:32] Jeff: I watched the coaching and implemented some of the things I learned just like I did with Clint. So yeah. [00:28:38] Jason: So we want to make sure we have a solid system so that as you scale, you can get the right people and get those people quickly. So it sounds like you've done some work on that. And then we want to make sure you have a really good planning system. So once you have a team of people you trust to execute, your executive team, then we want to install a planning system. Now these three systems should not be run by you because as a visionary and an entrepreneur, it's not fun for you to do this. So the key person, the most important hire you will have on the team will be an operator. Somebody that runs the operations. Do you feel like you have that key person right now? [00:29:15] Jeff: I do, but she is one of the people I brought on the most valuable hire I've made after I came to DoorGrow. And it was to have that operator, but she's a CFO. Okay. And she's grown another insurance company to probably where we're at now from scratch, which, you know, I think I'm blowing her mind a little on where we want to go, how fast we're going. But yeah, my goal is to make her the operator. She's the CFO. And so you know management's an accounting business, really at the end of the day, and so we are doing so many changes to our software and our accounting to make sure that all those processes and automations are in place that she is buried every day, but she helps with the team. She helped on the hiring. And she's going to be the operator to try to shorten that. We're working her into that role because as she figures pieces out, we hand them off. So it frees her time up and she's not doing the 15- $20 an hour work because they're paying her more than that. Handing it off and it's freeing up her time and she's. Then we're putting in place some of that more operation stuff, so in process. [00:30:23] Jason: Nice. Yeah. Cool. Awesome. So when she's ready, one of the things we'll want to do is start to get her to show up on the Friday coaching call, which is operations, and to do that super system breakout and work with her and you to get DoorGrow OS installed. Once you get DoorGrow OS installed, the planning system is that next level system. This is going to allow you to have your team start to function like a visionary, like the entrepreneur, they're going to start to innovate and move goals forward without you having to, you know, push them. And she will run that system. She'll run the meetings, and then you'll be able to set goals and break them down from quarterly to monthly to weekly commitments, and you'll start to see the momentum build big time when the team are all visible and can be seen and there's accountability and they get recognized because you have that system installed, performance sometimes goes up. When I first install a system like that, we grew 300% in a year. And so that is kind of the next level I think for you guys is when she's ready for that, we start to get DoorGrow OS installed and get that planning system and cadence. Because cadence in a business is the communication, cadence is the culture, cadence creates all of this, and it gets everyone rowing the boat in the same direction. So instead of you saying, "Hey, let's do this to everybody, watch this video at DoorGrow," et cetera. They will start to innovate and move outcomes forward because they're given goals and deadlines and then support instead of tasks. And that's where you'll start to see your team really perform. This is where you get like three times the output from your team members. This is where your operational costs drop significantly in relation to the number of people you have per door. And so that's what I see next level for you guys. And once you have that system installed, 600 doors is going to be a piece of cake. [00:32:17] Jeff: Yeah. The other thing too is that I know we need a sales funnel. The funnel right now is this mouth, that's it right now. [00:32:27] Jason: We got to get you out of that. So what'll be next is either we get you, if you don't have this already, we get you an assistant, a setter, or a sales assistant. And that person will then help you double your capacity currently. because they'll be doing all of the follow up, getting you on calls to close and you can use tactics like the double barrel close and some of these things we talk about. That's maybe, that's like level one, baby step. Level two, we just get you out of doing that all together. We get you a full-time BDM. Just like James Wachob 's team installed Brad, he's been showing up to each of our Wednesday calls where we support the BDMs or the people working on growth and I think he's helped him add like 250, something like that. They've added 400 doors organically in less than a year. [00:33:18] Jeff: Is that Brian Bouler guy? [00:33:20] Jason: Yeah, Brian Bouler's their operator. And he's, he actually just, yeah, he's a stud. He just became the director of the property management. So he's running all property management and he just hired an operator to replace himself from a Fortune 50 company. Right? So this is like once you have your operator fully functioning as an operator, you get her out of CFO role and you get her into being an operator, then we can start to install DoorGrow OS, get that team to the next level. And part of that plan, I think for your 90 days would be to start to focus on that sales side. If you're ready to ramp up lead gen and growth, then we get you maybe a setter initially, and then we get you a full-time BDM or you can jump straight to getting a BDM and we help you find somebody that can just crush it at sales. We identify the right personality type, they're great at this, and they will go out and just make it rain and create business for you. [00:34:13] Jeff: I got the hiccups all of a sudden, so I'm like, this is going to look great in the podcast. [00:34:17] Jason: You're just so excited about the future. Excited. Yeah. And you know, and that BDM could also, and then I think what you would do, if you want to focus on the growth side, if that's still fun for you, you just go out and find more acquisition deals. Yeah. Yeah. Yeah, that's fine. You can even get your BDM to start hunting for acquisition deals as well and feed them to you, and then you do double barrel close that way. They're feeding you to close it. Right? So, anyway, I think that's going to be the next level for you and, you know, maybe what I would maybe have your CFO do is do a time study and maybe you do a time study if you haven't done one for a while, so that you can see where can you support her even more and more quickly to get things off of her plate. What are you doing? Which things do you love the most? Which things don't you? And start to take some things off of her plate and give them to other team members as quick as possible. So, and then you'll know like, this is what she spent her time doing over the last two weeks. You're like, cool, we, these are minus signs. These are things that are lower level dollar an hour work. Let's define these processes and we make that a goal and all that. When you have a cadence and a planning system, you can plug all that into your goals. Like one of your quarterly goals would be transition CFO to operator, for example. Yeah. So we could start to build out those systems even right now with her, we just need to get you and her on board with that. And then you'll see things start to go even faster because you're already working a plan. When we put the plan in a way that everyone else can see it and everyone can contribute, the whole business starts to go faster. Otherwise, it's you pushing her and her pushing everybody else, and it's very top down. When you create a bottom up system, you'll start to feel a lot of momentum. Okay. It's a weird feeling when you start to feel the team pulling you forward instead of you pushing them forward. [00:36:10] Jeff: So, when you say that, what does that, what do you call that then? Like when you're saying bottom up, you know? When you, everything you just said, like, what is that? Like, what do I call that? [00:36:21] Jason: So I call that the planning system or DoorGrow OS, the operating system. The operating. So we want to get this operating system installed so that there's this planning cadence and communication. So I'd start with by doing a six core functions assessment with your team brainstorming session. That'll be quarterly planning and it'll take like an hour and a half or two hours. First time you do this as a team. [00:36:44] Jeff: That's all in os. That whole process is an OS. The step-by-step on that. That was my direction. I need OS, and I need Flow, and I'm like, oh, another thing I got to plan. [00:36:53] Jason: Yeah that's DoorGrow OS. The planning system. What's cool about it and, if you do the math on this, right? Let's say you do in your annual planning, you spend maybe an hour, a half. Your quarterly planning, you do four times a year. You spend maybe an hour, a half, two hours, right? Each of your monthly planning meetings, which you have 12, that adds up to 12 hours, maybe an hour each, right? Then you're doing your weekly commitments meetings every week. Maybe you'll do about 50 of those a year. Maybe those take an hour, sometimes even just 30 minutes, depending on the size of your team and the aggressiveness of your goals. And the goal on a weekly basis is to hit 80% of your weekly commitments. That's a lot of goals getting achieved. This is outside of the tactical work, outside of the day-to-day work. This is innovating and moving the business forward towards your core functions and what the business needs most and what you need most. [00:37:49] If you stack and add all this up, maybe even add a culture meeting here or there, and you add your daily huddles with your teams that are like maybe 15, 20 minutes, all that combined adds up to, you can run the entire business on 300 hours a year, and it eliminates a massive amount of 'got a minute?'s, sneaker net communication, interruptions, and it makes the business far more efficient. [00:38:14] Jeff: And that's all lined out in OS. Like I start OS, it's like everything step by step. I can do this. How? [00:38:22] Jason: Yes. However, my disclaimer is, this is not stuff that you're going to want to do. This is stuff that your operator will probably enjoy doing. Okay, but not you. Okay. Like me, I hear a bunch of meetings. My initial gut reaction is like, "oh gosh, shoot me now." Right? Yeah. Like that sounds like a cumbersome and a waste of my time. It actually speeds you up and speeds up the business and gives you more time, but you don't want to run it. You need somebody else to run it because otherwise you end up as the emperor with no clothes because everybody's going to agree to you, say "whatever Jeff says," you need somebody else to run it. And you're last to speak in all these meetings. Yeah. Then you'll start to see the magic and the genius of your team. because some of them are more closely connected to some of the things that need to shift or move or be innovated or move forward than you are, right? Your maintenance coordinator can see what's going on in maintenance and they probably have ideas. And so this will allow them to start to, you know, bubble up some of these ideas and it'll allow them to innovate. When team members don't get deadlines and outcomes that they're given to achieve. And then they can see that there's need for improvement, instead of innovating, they go and try and spend more of your money. Yeah, exactly. And so the team gets more expensive. And then you, if you give them a blank check, they'll just spend like, "let's go buy this new thing and let's buy that. And that might do this," right? When you give your team a deadline and some constraints and an outcome, they will start to get creative and innovate, and you want your team members to start to think like that. That turns them into intrapreneurs. So getting this system installed, I think will be the big next level thing, and we can start getting that installed right away so Sarah can help you get that set up. And set up a call with you and your operator and you're already working on some goals. So let's just get those goals into a system where everyone can see and make sure you start to move the plan forward, create the plan, work the plan, and you'll start to see the team move forward way faster. [00:40:16] So I'm excited for you man. [00:40:19] Jeff: Can you believe I got the hiccups? I get hiccups like once every 10 years. I get in the middle of the podcast. Yeah, I'm very excited about that because here's the truth is you're right, like you get to this place at, you know, 150 doors on my own right, that's capacity really no capacity would've been much higher. But doing it well, capacity was 150 doors. Now I'm at 400 something and we're going, well, yeah. I think I could add another a hundred doors before anything breaks, but I know we're there. We're 50 to a hundred doors away from having to do new stuff again. Yeah. I can feel it. And so that's exciting, but dreadful to think, to have to implement myself. [00:40:59] I think that's why I've kind of like, "let's just wait till we get everything we're doing dialed it perfectly before I get into that," but I need to just suck it up. I got to call with Sarah coming up the next couple days and I just need to tell her, okay, let's do OS, whatever. Tell me what to do next. Let's go. [00:41:14] Jason: Yeah. And really we're just going to start working on creating a plan. Then we'll put in the software and you'll start to see when you start having these weekly meetings with your team, you're going to start to see stuff move forward. Like our goal, we sometimes have like 40 things in a single week that we're working on as a team outside of our daily work, like 40 tasks that are assigned to different team members. [00:41:38] And my team members do not want to show up with a red 'no.' Yeah. And this increases their performance level, like you would not believe. They want green yeses when they show up on Monday for our weekly commitments meeting. And that means we are really likely to get all of our 30 day goals done, which means we're really likely to get all of our quarterly goals done because they're all connected. [00:41:59] Yeah. You'll start to see your business move forward really quickly. This is a next level thing. So I'm excited for you to get that installed. because first, you got to have an operator. because I've tried to do it on my own without an operator and I really, I get lazy because I just don't like it. Like, I don't like running the meetings. I'm like, "all right, anyone's stuck on anything? Let's move forward faster." And I just skip steps and I tell people, do things, but when the team starts to run this, your operator will start to run the business. The business will start to run itself. Things will start to move forward without you, and then instead of you feeling like you're the entrepreneur pulling your entire team up the hill in a wagon, which is what it feels like until you get a system like this, you're going to start to see them moving forward ahead of you, and you're going to be the one that is in the wagon and they're pulling you up the hill. You're just going to be there like giving some feedback, coaching them, supporting them, but you'll start to see the business move forward. I'm the biggest constraint on my team. Sarah and the team are using DoorGrow OS, and they're moving the whole business forward constantly. And they're like, "Jason, keep up. We need more from you." And so they're keeping me accountable now. I don't need to keep them accountable because I've got A players and I've got a system that brings that out in them. So that's the next level. Cool, man. Awesome. Well, hey, thanks for coming on the podcast and being vulnerable and sharing some of your struggles and your wins. [00:43:23] Really appreciate you as a client. [00:43:25] Jeff: Yeah. Appreciate you too, man. It's been a huge life changer. So cool. Well, keep pushing me. [00:43:32] Jason: Yeah, we'll keep going. We'll get you to that next level as well. So, thousand doors, here we come! [00:43:37] Jeff: Here we come. All right. [00:43:39] Jason: All right, thanks. See you. All right, so if you are a property management entrepreneur and you're wanting to get some coaching, you're tired of not having anyone in your corner, maybe nobody's believing in you, maybe not even your spouse is believing in you right now, and you need some hope, you want to have some results like Jeff, you're wanting to move your business forward. We would love to coach and help and support you. Join our mastermind. You can check us out at doorgrow.com. If you're looking like to get nurtured and warmed up a little bit more and you're not really sure about those DoorGrow people, then go to doorgrowclub.com. Join our free Facebook group. We give out better free stuff than most coaches in this industry give out that's paid, and you're going to get access to our master classes and some really cool stuff in there. Join that and you're going to see that we care and we want to see you succeed. And that will hopefully be a nice pathway into you becoming a client and working with DoorGrow and taking your business to that next level. And finally getting what you deserve, getting paid what you deserve, and having the business that you dream of having. [00:44:47] Until next time everybody, to our mutual growth. Bye everyone. [00:44:51] Jason Hull: You just listened to the #DoorGrowShow. We are building a community of the savviest property management entrepreneurs on the planet in the DoorGrowClub. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead content, social direct mail, and they still struggle to grow! [00:45:18] At DoorGrow, we solve your biggest challenge: getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today's episode on our blog doorgrow.com, and to get notified of future events and news subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you learn and start DoorGrow Hacking your business and your life.
OpenAI announces GPT-4 AI language model. Silicon Valley Bank is imploding, prompting bank run. T-Mobile to acquire Ryan Reynolds' Mint Mobile in a $1.35 billion deal. OpenAI announces GPT-4 AI language model (again). Grammarly adds ChatGPT-like AI to create text in your writing style, outlines, and more. Gmail, Google Docs, and more are getting ChatGPT-like generative AI features. Facebook's Powerful Large Language Model Leaks Online. Microsoft Lays Off Team That Taught Employees How to Make AI Tools Responsibly. The Distributed AI Research Institute (DAIR) presents Stochastic Parrots Day. Google opens up its AI language model PaLM to challenge OpenAI and GPT-3. Carrot Weather gets a snarky ChatGPT update. Nabla, a digital health startup, launches Copilot, using GPT-3 to turn patient conversations into action. Rent Going Up? One Company's Algorithm Could Be Why. TikTok now offers a feed dedicated to science and tech. Meta is working on a decentralized social app. Gowalla returns to see if location-based networking is ready for its mainstream moment. Noam Chomsky: The False Promise of ChatGPT. Google has discontinued the Glass Enterprise Edition. YouTube TV Multiview lets you watch up to 4 games in preview for March Madness. Google Play will now machine translate Android apps for free. Google Workspace is getting a price increase and other changes. March Pixel Feature Drop with Android 13 QPR2 is now rolling out. Stranded on a mountain, he tied his phone to a drone to text for help. Meta layoffs: Facebook owner to cut 10,000 staff. A Look Inside Elon Musk's $50,000 Prefab Tiny House. The Biden administration demands that TikTok be sold or risk a nationwide ban. Picks: Stacey - Saving Time: Discovering a Life Beyond the Clock Hardcover by Jenny Odell. Jeff - Kottke.org Is 25 Years Old Today, and I'm Going to Write About It. Jeff - Lifehacker sold by G/O to Ziff Davis. Jeff - Here's Everything That Happened at the #BlackTwitterSummit. Jeff - The Color Printer. Mike - ChatPDF. Hosts: Leo Laporte, Jeff Jarvis, and Stacey Higginbotham Guest: Mike Elgan Download or subscribe to this show at https://twit.tv/shows/this-week-in-google. Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsors: GO.ACILEARNING.COM/TWIT eightsleep.com/twit
OpenAI announces GPT-4 AI language model. Silicon Valley Bank is imploding, prompting bank run. T-Mobile to acquire Ryan Reynolds' Mint Mobile in a $1.35 billion deal. OpenAI announces GPT-4 AI language model (again). Grammarly adds ChatGPT-like AI to create text in your writing style, outlines, and more. Gmail, Google Docs, and more are getting ChatGPT-like generative AI features. Facebook's Powerful Large Language Model Leaks Online. Microsoft Lays Off Team That Taught Employees How to Make AI Tools Responsibly. The Distributed AI Research Institute (DAIR) presents Stochastic Parrots Day. Google opens up its AI language model PaLM to challenge OpenAI and GPT-3. Carrot Weather gets a snarky ChatGPT update. Nabla, a digital health startup, launches Copilot, using GPT-3 to turn patient conversations into action. Rent Going Up? One Company's Algorithm Could Be Why. TikTok now offers a feed dedicated to science and tech. Meta is working on a decentralized social app. Gowalla returns to see if location-based networking is ready for its mainstream moment. Noam Chomsky: The False Promise of ChatGPT. Google has discontinued the Glass Enterprise Edition. YouTube TV Multiview lets you watch up to 4 games in preview for March Madness. Google Play will now machine translate Android apps for free. Google Workspace is getting a price increase and other changes. March Pixel Feature Drop with Android 13 QPR2 is now rolling out. Stranded on a mountain, he tied his phone to a drone to text for help. Meta layoffs: Facebook owner to cut 10,000 staff. A Look Inside Elon Musk's $50,000 Prefab Tiny House. The Biden administration demands that TikTok be sold or risk a nationwide ban. Picks: Stacey - Saving Time: Discovering a Life Beyond the Clock Hardcover by Jenny Odell. Jeff - Kottke.org Is 25 Years Old Today, and I'm Going to Write About It. Jeff - Lifehacker sold by G/O to Ziff Davis. Jeff - Here's Everything That Happened at the #BlackTwitterSummit. Jeff - The Color Printer. Mike - ChatPDF. Hosts: Leo Laporte, Jeff Jarvis, and Stacey Higginbotham Guest: Mike Elgan Download or subscribe to this show at https://twit.tv/shows/this-week-in-google. Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsors: GO.ACILEARNING.COM/TWIT eightsleep.com/twit
OpenAI announces GPT-4 AI language model. Silicon Valley Bank is imploding, prompting bank run. T-Mobile to acquire Ryan Reynolds' Mint Mobile in a $1.35 billion deal. OpenAI announces GPT-4 AI language model (again). Grammarly adds ChatGPT-like AI to create text in your writing style, outlines, and more. Gmail, Google Docs, and more are getting ChatGPT-like generative AI features. Facebook's Powerful Large Language Model Leaks Online. Microsoft Lays Off Team That Taught Employees How to Make AI Tools Responsibly. The Distributed AI Research Institute (DAIR) presents Stochastic Parrots Day. Google opens up its AI language model PaLM to challenge OpenAI and GPT-3. Carrot Weather gets a snarky ChatGPT update. Nabla, a digital health startup, launches Copilot, using GPT-3 to turn patient conversations into action. Rent Going Up? One Company's Algorithm Could Be Why. TikTok now offers a feed dedicated to science and tech. Meta is working on a decentralized social app. Gowalla returns to see if location-based networking is ready for its mainstream moment. Noam Chomsky: The False Promise of ChatGPT. Google has discontinued the Glass Enterprise Edition. YouTube TV Multiview lets you watch up to 4 games in preview for March Madness. Google Play will now machine translate Android apps for free. Google Workspace is getting a price increase and other changes. March Pixel Feature Drop with Android 13 QPR2 is now rolling out. Stranded on a mountain, he tied his phone to a drone to text for help. Meta layoffs: Facebook owner to cut 10,000 staff. A Look Inside Elon Musk's $50,000 Prefab Tiny House. The Biden administration demands that TikTok be sold or risk a nationwide ban. Picks: Stacey - Saving Time: Discovering a Life Beyond the Clock Hardcover by Jenny Odell. Jeff - Kottke.org Is 25 Years Old Today, and I'm Going to Write About It. Jeff - Lifehacker sold by G/O to Ziff Davis. Jeff - Here's Everything That Happened at the #BlackTwitterSummit. Jeff - The Color Printer. Mike - ChatPDF. Hosts: Leo Laporte, Jeff Jarvis, and Stacey Higginbotham Guest: Mike Elgan Download or subscribe to this show at https://twit.tv/shows/this-week-in-google. Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsors: GO.ACILEARNING.COM/TWIT eightsleep.com/twit
OpenAI announces GPT-4 AI language model. Silicon Valley Bank is imploding, prompting bank run. T-Mobile to acquire Ryan Reynolds' Mint Mobile in a $1.35 billion deal. OpenAI announces GPT-4 AI language model (again). Grammarly adds ChatGPT-like AI to create text in your writing style, outlines, and more. Gmail, Google Docs, and more are getting ChatGPT-like generative AI features. Facebook's Powerful Large Language Model Leaks Online. Microsoft Lays Off Team That Taught Employees How to Make AI Tools Responsibly. The Distributed AI Research Institute (DAIR) presents Stochastic Parrots Day. Google opens up its AI language model PaLM to challenge OpenAI and GPT-3. Carrot Weather gets a snarky ChatGPT update. Nabla, a digital health startup, launches Copilot, using GPT-3 to turn patient conversations into action. Rent Going Up? One Company's Algorithm Could Be Why. TikTok now offers a feed dedicated to science and tech. Meta is working on a decentralized social app. Gowalla returns to see if location-based networking is ready for its mainstream moment. Noam Chomsky: The False Promise of ChatGPT. Google has discontinued the Glass Enterprise Edition. YouTube TV Multiview lets you watch up to 4 games in preview for March Madness. Google Play will now machine translate Android apps for free. Google Workspace is getting a price increase and other changes. March Pixel Feature Drop with Android 13 QPR2 is now rolling out. Stranded on a mountain, he tied his phone to a drone to text for help. Meta layoffs: Facebook owner to cut 10,000 staff. A Look Inside Elon Musk's $50,000 Prefab Tiny House. The Biden administration demands that TikTok be sold or risk a nationwide ban. Picks: Stacey - Saving Time: Discovering a Life Beyond the Clock Hardcover by Jenny Odell. Jeff - Kottke.org Is 25 Years Old Today, and I'm Going to Write About It. Jeff - Lifehacker sold by G/O to Ziff Davis. Jeff - Here's Everything That Happened at the #BlackTwitterSummit. Jeff - The Color Printer. Mike - ChatPDF. Hosts: Leo Laporte, Jeff Jarvis, and Stacey Higginbotham Guest: Mike Elgan Download or subscribe to this show at https://twit.tv/shows/this-week-in-google. Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsors: GO.ACILEARNING.COM/TWIT eightsleep.com/twit
OpenAI announces GPT-4 AI language model. Silicon Valley Bank is imploding, prompting bank run. T-Mobile to acquire Ryan Reynolds' Mint Mobile in a $1.35 billion deal. OpenAI announces GPT-4 AI language model (again). Grammarly adds ChatGPT-like AI to create text in your writing style, outlines, and more. Gmail, Google Docs, and more are getting ChatGPT-like generative AI features. Facebook's Powerful Large Language Model Leaks Online. Microsoft Lays Off Team That Taught Employees How to Make AI Tools Responsibly. The Distributed AI Research Institute (DAIR) presents Stochastic Parrots Day. Google opens up its AI language model PaLM to challenge OpenAI and GPT-3. Carrot Weather gets a snarky ChatGPT update. Nabla, a digital health startup, launches Copilot, using GPT-3 to turn patient conversations into action. Rent Going Up? One Company's Algorithm Could Be Why. TikTok now offers a feed dedicated to science and tech. Meta is working on a decentralized social app. Gowalla returns to see if location-based networking is ready for its mainstream moment. Noam Chomsky: The False Promise of ChatGPT. Google has discontinued the Glass Enterprise Edition. YouTube TV Multiview lets you watch up to 4 games in preview for March Madness. Google Play will now machine translate Android apps for free. Google Workspace is getting a price increase and other changes. March Pixel Feature Drop with Android 13 QPR2 is now rolling out. Stranded on a mountain, he tied his phone to a drone to text for help. Meta layoffs: Facebook owner to cut 10,000 staff. A Look Inside Elon Musk's $50,000 Prefab Tiny House. The Biden administration demands that TikTok be sold or risk a nationwide ban. Picks: Stacey - Saving Time: Discovering a Life Beyond the Clock Hardcover by Jenny Odell. Jeff - Kottke.org Is 25 Years Old Today, and I'm Going to Write About It. Jeff - Lifehacker sold by G/O to Ziff Davis. Jeff - Here's Everything That Happened at the #BlackTwitterSummit. Jeff - The Color Printer. Mike - ChatPDF. Hosts: Leo Laporte, Jeff Jarvis, and Stacey Higginbotham Guest: Mike Elgan Download or subscribe to this show at https://twit.tv/shows/this-week-in-google. Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsors: GO.ACILEARNING.COM/TWIT eightsleep.com/twit
This week, husbands Brandon and Angel host their first show of the new year, where they welcome astrologer, Tarot wizard, teacher, and author Jeff Hinshaw of the podcast Cosmic Cousins, who helps them expound on the unique Astrology of 2022. Find out all things about Jeff HERE. Find out all things about The Spiritual Gayz HERE. Our INSTA Our FACEBOOK Our TWITTER
Toby Mathis and Jeff Webb of Anderson Advisors are here to answer all sorts of tax-related questions that focus on everything from applications to forms and QuickBooks. Do you have a tax question? Submit it to Webinar@andersonadvisors.com. Highlights/Topics: Will income earned by lending money to real estate investors reduce Social Security benefits or increase taxes on them? Income vs. earned income; until full retirement age, benefits are reduced; when full retirement age, it doesn't matter what you make How do I get the 20% deduction from Trump's Tax Plan? The 199A Deduction is a 20% deduction on qualified business income, but you need a pass-through entity; QBI 20% deduction vs. 20% of taxable income are compared, and you get whichever is less When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions? No. It’s a contribution to an entity that becomes your capital and money you can take back out tax-free, if you haven't used it to recognize losses What is the best business structure recommended against asset, structure, and personal protection? With any passive activity, use a passive entity - LLC taxed as a partnership/limited partner; whomever has control of entity decides what's distributed What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in other states? Create one set of books with Wyoming LLC as the primary; do a classified income statement for other states What are the tax forms for 501c3? Use Form 1023 to apply to be an exempt charitable organization; yearly recording forms include 990-N If someone has rentals in their self-directed IRA, how are they impacted as UBIT - does it make a difference on the number/dollar amount? No UBIT, if it's a rental; UBIT is for an active business inside an IRA; passive income is almost always exempt Can I have recourse debt in a 401K or IRA? Can I have non-recourse debt? You can’t have recourse debt, but you can have recourse debt What are my options to re-distribute funds from one LLC in several entities to separate investments? You can always move it from one to another with no tax implication Can I write off costs for rehabbing out of the country? Yes. Worldwide profits; if it's income-producing property, you report it to the United States I lent money to a real estate flipper. She gave me a promissory note, but it wasn’t recorded with the deed of trust. Now, she is in default. Can I foreclose? Document it because you can’t foreclose until you file your secured interest Is there anything I can do to reduce my taxable income? Yes. There are lots of things you can do - make contributions to qualified retirement plans, charities, and C Corp I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing? Section 179 deduction; you can buy up to $1 million and write it all off For all questions/answers discussed, sign up to be a Platinum member to view the replay! Resources U.S. Social Security Administration Trump’s Tax Plan 199A Deduction QuickBooks Tax-Wise Workshop 501c3 Unrelated Business Income Tax (UBIT) 990-T 990-N Section 179 Deduction 1244 Election Kiddie Tax Anderson Advisors Tax and Asset Prevention Event Toby Mathis Anderson Advisors Full Episode Transcript: Toby: Hey, guys. This is Toby Mathis with Jeff Webb again. Jeff: Good afternoon. Toby: If you don't know, Jeff Webb's a tax manager here, and I am one of the partners. I'm not an accountant but I'm an attorney. Jeff is actually a CPA. This is Tax Tuesdays. If you've never been on Tax Tuesdays before, all we do is answer all sorts of questions. Let me see here whether I've got the right question field up. Look at that. We've got a bunch of people asking questions. Let's see. We'll get to all your questions, making sure you can hear us in the question and answer part. Just say, "Yes, I can hear you loud and clear," to make sure that we're getting through to everybody. If you do that, then we appreciate it. There we go. I'm getting a whole bunch of "loud and clear", "loud and clear", "loud and clear". All right, if you don't know the format if Tax Tuesday, it goes like this. We answer a whole bunch of questions. We answer the questions that people ask via the email that I'll be giving you at the end of the webinar, and we grab a whole bunch of them, and we just start answering them. If we can't answer the question or the question that you ask is too complicated, too specific, too long, then I grab it and kick it off to a staff or we answer it the following week, depending on how cool a question it is. That being kind of the overview, this is where we're at. We're going to go through these and we're going to make sure that we're answering all the questions. Let's see if I can actually make these slides advance. Look at that. That's weird. I didn't even know what that W there is. It's kind of cool. "Will the income I earned by lending my money to my real estate investors reduced my social security benefits or increased my taxes on them?" That's an interesting question. There's, "How do I get a 20% deduction?" I'm picking these literally from people's emails so don't yell at me for the typos. "When you make a contribution funds to your own account to your LLC as a member, are you taxed on contributions that you contribute to an LLC?" "What is the best structure–" and that is the weirdest thing I've ever had. "What is the best structure recommended against asset, structure and personal protection for a Multi-Family Home Investor acquiring and holding rental properties, especially if working–" and I'm going to go through each one of these. "What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in various other states?" Those are our opening questions. We have a few more. We're going to go through a ton of them, and I'm already getting a bunch of questions on the Q&A portion. We will get to those but, first, we're going to knock these ones out. The first question: "Will the income earned by lending money to real estate investors reduce my Social Security benefits or increase my taxes on them?" The first thing is there's the benefit itself. In this particular question, I looked it up and I believe there were 61, so they're receiving Social Security benefits before they reach the full retirement age. Full retirement age varies between 65 and 67. The reason this is important is because, once you reach that age, it doesn't matter what you make. Until you reach that age, you will have your benefits reduced on what you're receiving. When you're pulling out Social Security early, 50 cents on the dollar once you get over $17,080.Of course, it's indexed for inflation, but it's a little bit over $17,000. I think this year it's $17,080 or something like that. What that means is, if you are lending money, then that would be counted as income. However, if you're under the full retirement age, they only count earned income. The question here is, "Until you're at full retirement age, will the income earned by lending money to real estate investors reduce my Social Security benefits or increase my taxes on them?" The answer is a big, resounding, "No." This will not hurt you in any way. Once you hit full retirement age, now we have to be worried about how much of your social security becomes taxable. When they look at your tax ability of the benefit, now we're looking at all sorts of income, everything that you make, and it's going to push it up. That's the one where it's not that you reduce the benefit but it becomes taxable. Jeff: Fairly quickly, additional income starts making your Social Security benefits taxable. They're never going to be more than–85% of your benefits are never going to be taxable. I'm saying this totally backwards. Toby: What it means is that the most they're ever going to tax your benefits is 85% of them. If you're getting $20,000 of benefit, the most you'll ever pay tax on is $17,000. You'll still get $3,000, tax-free. The sad part is you didn't get, really, a deduction when they took it out the first place. That's the old double tax that you hear about with Social Security. Anything else you want jumped into? This is kind of stuff. It makes your brain go numb so you're doing it right. You're actually asking good questions. Jeff: Just the matter of when you should take Social Security is such a huge question. Toby: Because you can start taking it. When is the earliest, is it 64? Jeff: I'm going to say 62, but maybe it's earlier depending on their age. Toby: It does depend on their age. There is a before-a-threshold and after-a-threshold. Now, I forget what the threshold is. What you do is you go to the Social Security Administration and you run your scenarios and they'll give them all to you, or you can contact us. We have folks we could send you out to that have software because it is complicated. Depending on what month you were born in and all that stuff, how many days–all of this gets factored in as to what's the earliest you could start receiving benefits. Once you start receiving the benefit, they let you receive that benefit only so long as your income is low and it's your earned income. If you're trying to get the benefit when you're 62 and you make too much money, you're going to lose a bunch of the benefits. If you start making–if you're 62, start pulling out the benefit and you have passive income, not that big of a deal; it doesn't reduce it so that's really cool. Enough of that. It makes my head hurt, Social Security. Do not rely on Social Security. There, I said it. Yeah, Social Security is one of those things that, when it was set up, the average life expectancy of people on Social Security was two years. It was really there to catch you if you're really old and didn't have any other benefits. Now, we use it almost like it's a retirement plan that's not what it was intended for. That's why it doesn't work to do it. Here's the next one. "How do I get the 20% deduction from Trump's Tax Plan?" First off, it's not Trump's Tax Plan. It's the Tax Cut and Jobs Act and it was passed by our wonderful Congress because, technically–though, they seem to forget this–Presidents don't write laws. Now that we got that out of the way, they did put this thing called a 199A Deduction, which is a 20% deduction on qualified business income from pass-through entities. Follow me here. The first thing we need to have–and I'm going to write these up–is we need to have a pass-through entity, and you can be an LLC taxed as–this is a 1065 that's partnership, a sole proprietor or as an S Corp. Those are your choices. Technically, it could also be a trust. Then, you look at other entities, S Corps and just flat out partnerships, including limited partnerships, all that fun stuff. It's passing through; it doesn't pay its own tax. Then, you need qualified business income. I'm just going to call it QBI, which just means income. Generally speaking, it's active income, but they also include real estate, if you are making money on real estate in which you participate in some fashion. The only type of real estate that's not included as far as we can tell–because they're still giving us regulations on it, but the proposed regulations make clear that real estate, rental real estates included, is if you have a commercial building and triple-net leases that you're giving out where you're not really taking on much of the risk, then they're not going to let you have the qualified business income. Then, they compare that qualified business income 20% deduction versus 20% of your taxable income, whichever is less. Why is this important? Because if I'm a sole proprietor–let's say I have $50,000 that I'm making–that I would get a $10,000-deduction under the QBI. Let's say that I take and contribute into my retirement plan–a husband-and-wife sole proprietor is still the same thing, and they both put in–what's a good number–let's just say $10,000. Then, my taxable income is actually $40,000 because I rode off–I made tax-deductible contributions into my IRA of $10,000 so I would take the lesser of that. Then, they do this wonderful thing, is they then say, "Well, if it's a special service company, we're going to put a cap on how much QBI you can actually make." It's not really QBI; it's actually your taxable income, and they say, "We'll only let you ride off so long as your taxable income is below a threshold." If you're single, that threshold is $157,500, and there's a phase-out for the next $50,000. To make your head spin, it goes from $157,000 to $207,500. That's the easiest way to look at it. If you're married, filing jointly, those numbers are $315,000 to $415,000. Jeff: What's an example of a special service? Toby: Special services are something that it is you and your skill that makes the money, and they use–it's going to be doctors, lawyers, accountants, engineers, real estate agents who are solo, somebody who–it's their skill so like a carpenter who doesn't have a bunch of staff. That's going to be a special service. If you get above those thresholds, you are done. Somebody's asking a question which is pretty interesting. A single-member LLC counts. You have a flow under you so that's when you're sole proprietor or just going under your tax return that's passed through entity so you're fine. The interesting here is that you can control your taxable income. Even on those thresholds–and when we teach this in the class, we actually go through a learning chart where we say, "If this, then this. If this, then this." If you're a special service, we just need to make sure that we can control your income, and the way you control your income is by splitting it with tax-free, tax-exempt or separately-taxable entities. Let me give you an example. If I have a C Corp and it makes a bunch of money, great, that's not income to me. I don't want to pay myself a whole bunch of money and make whatever my other business is that is or where I'm going to meet the threshold taxable because I'm losing that 20% deduction. Let's say I have $200,000 coming in. As an individual, I can get some donations and deductions into a retirement plan and I get myself underneath that $157,000 and I have another $200,000 in C Corp that I pay myself. If I leave the $157,000 as is and I don't take any money out of the C Corp, I'm going to get a 30-something thousand dollar deduction. It's just going to come off the top. It's a 20% deduction so almost like I spent. If I took the money out of the C Corp–and, by the way, that C Corp is a flat 21% tax rate now so it's going to pay 21% so it's not horrific. If I paid myself that money, I push my taxable income over the threshold, now I get 0 deduction on my qualified business income. That's why it's important. If it is not a special service, then those thresholds trigger something else. It takes us to an area where we can write off up to 50% of the W2 income or 25% of the W2 income for the business plus 2.5% of the assets. Jeff: No, you're right. I'm just jumping ahead of you. Toby: Yeah, so what we're looking at, then, is you better have a regular business that actually has salaries. If you, for example, as a sole proprietor, single, are making–what would be a good example–$200,000 and you're over the threshold, you're phasing out, you'd have to go to the second test. You're over the 157 and the second test is now pushing you at 50% of W2 wages, and you have zero so your deduction is going to be zero. You're going to get literally nothing. You might get a few dollars because you're not quite at the 207, which is the top line of the actual phase-out so you'd be phased out about 90% plus of the benefit. Now, let's say you converted that sole proprietorship to an S Corp and, instead, you paid yourself a salary, so same situation, $200,000. Let's say I paid you $75,000 of salary. Then, the QBI or the monies that's flowing through is actually the net income and net profit, so you'd subtract the 75 off. It would be $125,000. You compare 20% of that number, which I should grab the calculator, whatever that number is. Jeff: It'd be 25,000. Toby: Yeah, 25,000, and we would compare it to one-half of the W2 income, which would be 37,500. You'd get the lesser of the two. You'd get a $25,000-deduction just because of the type of entity. That's the one I have to do. Somebody just said, "I have almost 300K in real estate and other income. Is there anything I can do?" A single person? Yeah, there's something you can do because, remember, it depends on whether you're special service and then it depends on the business, and there's one last thing: It always comes down to your taxable income. "What other ways can I use to control my taxable income?" The most obvious is I split it with a C Corp, I give it to charity–and it could be my charity–or I deduct it by putting it into a tax-deferred retirement plan. For example, same situation, I'll use the $200,000 and they do a 401K. They put a husband and wife each–they're under 50. They each contribute 18,500–or, actually, the example I used was a single person so I would have to say I put 18,500 and in, and they get a 25% deduction on the 75,000. They would put in–again, I'm using crazy numbers so what would that be? About $18,750 or whatever that is–around under $19,000. I can put, in essence, about $37,000 right into the 401K, and that reduces my taxable income. The taxable income goes from 200 down to almost the threshold, and now I don't have to worry about it. It makes my life so much easier. I'm just going to get a nice big, fat deduction and I'm happy as a clam. That's how this stuff works, but if you don't do it before the year ends, you're toast. This is going to be my–this is why you need to have some sort of somebody doing tax planning. How do I get the 20% deduction from the new tax act? Very deliberately. You make sure that you have the income flowing under your return and then you make sure that, if there's a disqualifying factor that would cause you to lose it, that you look and say, "What's better? To just walk away from it and not worry about it or would I be better to take a couple of actions to allow myself to take advantage of the deduction?" It's a freebie, guys. If I make $20,000 in real estate, that rental real estate–that's my net after all my depreciation–I get a $4,000-deduction. I'm only recognizing 16,000 under this taxable income so that's a nice little benefit especially if I'm a high-income person so that's what I'd be looking at. Jeff, do you want to do this one because I'm […] barding the answers again? Jeff: No, that's alright. "When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions that you contribute to the LLC?" No, actually, you're not. That is a contribution to an entity that becomes your capital, your owner's equity–we can call it a lot of things–your owner's capital in that company. That's actually money that you can take back out also tax-free assuming that you haven't used it up to recognize losses or maybe other things like that. Toby: We get that a lot. I'll give you a real-life example. Some guys were doing a syndication on apartment buildings and they were telling people, "Hey, we're going to return your capital out of the profits and you're not going to have to pay any tax on the money that you receive up to your investment." I said, "Hey, that's not really the case." Here's how it works: I can always get back my contribution, and it's tax-neutral; it means nothing. If the company makes zero, no profit, it can always give me back my money and I pay no tax, but if the company makes money, I'm taxed on my portion of that gain no matter what even if they're giving me extra. I was like–what they were doing was they were saying, "Here's a little thing. We'll make some profit. We'll just give you your money back. You want to pay tax on it?" I was like, "No, that's not how it works. You actually have to pay tax on the profit in proportion to your ownership, and it's a little bit funky." Jeff: This is a case that, sometimes, we see where a client will tell us, "I had deposits of $100,000 into my business," and what they fail to tell us is that 50,000 of it was their own money. We want to make sure that we're able to differentiate what the owners are putting into the company versus what income they're making in the company. Toby: There's a couple of questions. Somebody says, "My head is spinning." We do record this. If you're platinum, you're going to get a recording of it in your little platinum area. Somebody asks, "Is this pre-recorded?" No, it's not. We're doing it live but I'm answering the questions that people have emailed me first and, yes, we have about 50 questions that are in the queue that we're going to go through here in a second. Jeff: We don't have a three-second delay or anything? Toby: No, I don't think so. I could give you a 10-second delay. All right, "What is the best business structure recommended against asset, structure and personal protection?" I don't know what that means. I'm going to assume they mean to protect the business–for a Multi-Family Home Investor acquiring and holding rental properties, especially if working as a team member with other investors? Here's what I'm going to say: Anytime you have a passive activity–that is, when you buy the property or the cash flow and the appreciation–you're going to want to use a passive entity, meaning an LLC taxed as a partnership or a limited partner. Don't do anything else. That's it. There's maybe some really weird exceptions but I'm going to say, 99% of the time, you're going to end up using an LLC, and it's either going to be disregarded even if you have other people in or it's going to be a partnership. If anybody does anything differently, they're doing some weird stuff. If you have other investors, then it depends on your relationship with those investors. I'm not going to going to get into securities, Reg Ds and all that but, generally speaking, you're going to have it taxed as a partnership, but the most important consideration is always going to be control, who has control of that entity, because that's who decides what's distributed. That partnership agreement or the operating agreement of the LLC is really going to be important. You do not want to do this stuff half-arsed. You want to make sure that you're actually really addressing this stuff. At Anderson, we tend to be very protective of the manager, meaning we want you to have control. If it's your project, we don't want people to force you to do stuff and, on the flip side, if you're investing and you're a client, we're always going to say, "You don't want to be forced to kick in more capital against your will." Those are the things we always look at. Where does that one go? Here we go. "What is the best way to set up QuickBooks when I have a Wyoming–" and this is going to be so you, Jeff, because Jeff loves QuickBooks. "What is the best way to set up QuickBooks when I have a Wyoming Holding LLC with several other LLCs holding real estate in various other states?" I'm going to draw this. There's my Wyoming LLC. It's either going to be a 1065 or disregarded, and it holds all these cute little LLCs in other states. Let's say this is Texas LLC, Washington LLC, Nevada LLC, Georgia LLC, and they're all going to flow up to that Wyoming. I want to keep my books straight because, if you know QuickBooks, they will sell you QuickBooks for this one, this one and this one. You'll end up with four sets of QuickBooks and you'll drive yourself crazy. What do you do, Jeff? Jeff: Here's what we like to do: We like to create one set of books with the Wyoming LLC at the top being the primary set of books. Then, what we do is what we call a classified income statement where each of these four LLCs below the Georgia, Nevada, Washington and Texas where they're all kind of their own set of books within your Wyoming LLC books. All this income is going to flow from those bottom four up to the top one anyway and, while we need to keep the entities separate so we can report them that way, ultimately, what we're reporting is what's coming through the whole kit and caboodle. Toby: Yeah, we only need to worry about setting up QuickBooks for this guy right here, and then we set up these guys as classes. All that means is we have one set of books. Jeff: Yeah. You can still pull an income statement for your Georgia LLC or your Texas LLC to see what's just in that but, all in all, you still have one set of books. It makes it easier and you don't have all these inter-company transfers that you have to track. Toby: Oh my god. I'll tell you, we're horrible on that. He's giving me the look. See, here's the problem, is if you have different companies with different sets of books, you've got to close out the previous sets of books and then open up the new company. It's a process and it takes a few minutes and it's really annoying when you're trying to enter stuff into it. It's going to save you a whole bunch of time to use one set. Jeff: Yeah, then you don't run into things like, "Well, I transferred money from Georgia, the taxes that I did it, I record it in both companies." When you record them on one, you end up re-recording it in both. Toby: Yeah, and there's some fun stuff. Some of them just ask for a basic QuickBooks question, jump in the line. It's hard to set up classes in QuickBooks, not horribly, but if you don’t want to learn–QuickBooks is one of those things where you're going to spend some time with it. You just have a bookkeeper do it. Anderson does that if you want. All right. If you have questions–you guys, I know you do because there's a ton of them already in the little queue here. Here's how it works: If you want to ask a more detailed question, if you have a question that you didn't hear answered on the webinar, you can just email them on in to webinar@andersonadvisors.com, and, that way, we can put it in that queue and we can answer it just like we just did. We're going to break those out. Those will be separate little videos, each one of those, so that you get your answer. Somebody was saying, "My head was spinning about 199A." You can go back and listen to that. Better yet, you can come to some of our other webinars or come, actually, to the Tax-Wise Workshop and we go through this stuff. Spend some time with us. If you invest a little bit of time in taxes, it will pay off in spades. Other questions–some people just answered this stuff. "Can you go over the tax forms for 501c3? Jeff: There's a couple of forms for the 501c3. To apply the BF 5O1c3, there's what's called the Form 1023. It's the application to be an exempt charitable organization. Then, there's several different yearly recording forms. The 990 is the primary one where you report, among other things, what your income was, what your balance sheet looks like, your plan, your purpose, who you've dealt with. What were you going to say? Come on. Toby: Basically, if you're making less than $50,000 in your 501c3, you're doing a 990 post-note card. You're just doing a real basic here. Literally, it looks like a postcard. Jeff: They don't do that anymore. Toby: I thought they're still– Jeff: All these old people still call it postcards, but it's a… Toby: They do that in the 10… Jeff: But it's a 990N and it's filed electronically. Toby: Yeah, I know but it's the same thing. Jeff: It's still close. Okay. Toby: It's a postcard. Oh, my god. Yeah, you do it electronically now but it's really simple. You go above that, then you're going to be filing a little more detail. You get about 250, you're filing very detailed. Never do it yourself. Just hire an accountant to do it, and those guys–we do them. They're not horrifically complicated unless you have a huge void that everybody's taking money. You go American Red Cross, you can go look at the actual tax forms that everybody files because they're all public record. You can go in there and take a look at anybody and see just how complicated it is. What you'll realize is that the more the stuff they're doing, the more complicated it gets, and not doing ton it is pretty simple. We have ones that are $5 million non-profits and it's a few pages. Then, you have ones that are $1 million but they've got everybody and their mother with their hands in the thing, and you're doing a lot of reporting. That one might be more complicated. If you're a church, you don't file anything. If you're religious and you're a religious organization, you don't file anything; you file zero tax forms. Jeff: When you have an accountant do these 990s for you, they're going to ask you a lot of questions because there's a lot of questions on the form that they don't have the answer to, basically about what it is the non-profit does and things like that. Toby: All right. "If someone has rentals in their–" basically, again, if you have those tax forms, this is one other thing, is that's the tax compliance on an annual basis. If you're setting up a 501c3, you are doing–more than likely, 501c3 is an application called a 1023. If you're doing a 501C6 or some of these others, that's a 1024. Jeff: Wow, I'm impressed. Toby: Yeah, sorry. It's stuck in my head. Those are the applications for exempt status. Your business, your non-profit, is in existence and it's considered exempt from Day 1. Even though you haven't gotten your exemption approved, you actually have 28 or 29 months to get approved, and it relates back to the day that you started. You can actually do a 501c3 and be up and running in a matter of weeks if you want to. All right, from Lisa: "If someone has rentals in their self-directed IRA, how is it impacted as far as unrelated business income tax (UBIT) and does it make a difference on the number or dollar amount?" You want to do this one or would you like me to? Jeff: Why don't you do this one? Toby: All right. Self-directed IRA and it has real estate? You have no UBIT if it's just rental. That's not unrelated business income tax. Unrelated business income tax is when you're doing an active business inside an exempt organization, inside an IRA, or church, or something else, and you're running a mini-mart then they tax you on it because it's unrelated business income so not related to your exempt purpose so they tax you on it. Passive income's always going to be–I shouldn't say "always"; it's almost always exempt. I guess there's possible–if you have some royalty stuff, it's possible, if you're advertising, that the exempt organization tax, but for your IRA for rentals, don't worry about it. Here's what you worry about when you're doing an IRA with rentals: It's usually the case–this is what we've seen–is that people will oftentimes want to lever that real estate. In an IRA, you have something called–I'm just going to blank on it–unrelated debt financed income. There we go, UDFI. Unrelated debt financed income means–or just call it debt finance income–the portion of the profits that are coming from the debt. If I have a piece of property, I have a 50% loan on it, then 50% of its income is going to be taxable to the IRA. It's not allowed to have that type of loan and not pay tax on it. A 401K is allowed to have that type of loan, and it doesn't pay tax on it. It's one of those weird things where you're like, "Hey, should I be an IRA or 401K?" More often than not in our world, you're going to want to be the 401K. It has different rules, and one of the big ones is the ability to use debt. Now, here's something for you. I think I had poll questions on this. This is fun. I'm going to send a poll out to see whether you guys are listening. You guys can answer this, and what it is, "Can I have recourse debt in a 401K or IRA?" Let's see about that. Isn't this kind of cool? Jeff: It is cool. Toby: We're going to see whether or not you can have recourse debt in a 401K or IRA. For those of you who don't know what recourse debt, recourse means, "I can go after you. I have recourse, and I can go–" basically, a personal guarantee, personal guarantor. We got a lot of people voting. I will share the results with you once we're there. Jeff: What if Lisa is flipping instead of renting in an IRA? Toby: Then, we don't have any cases on it. Jeff: Great. Toby: What we always say is do five at a max. Here's the thing: If you disqualify an IRA, the whole thing's disqualified. What I want to do is if I'm flipping in a self-directed IRA, I want to make sure only that money is in that IRA so if I have a disqualifying event, it's only for that one little IRA. So, I may have two or three IRAs. Good news: People are listening. That's always good news. We have about–50% of you guys voted. I'm going to go ahead and close this thing in about a few seconds. Let's see. There, I closed it and now I'm going to share it with you. Do you want me to tell you the answer? You cannot have recourse debt. 36% of you guys just disqualified your plans, and you have a 10% penalty plus it's all taxable. Sorry to say that you just destroyed your plan, but you cannot have recourse. This is half the fun. What's the next question I could ask you? I could throw up another poll at you. Let's see. Get out of there. Let me see if I can do this. All right, what's the next one? Here's a better one: Now that you know you can't have recourse debt, I'm going to launch a new poll. "Can I have non-recourse debt in an IRA or 401K?" This is where accountants and tax lawyers have– Jeff: Disagreements? Toby: No, this is where it's so much fun. Are you kidding? Let's see. Somebody's saying, "No." What is non-recourse? Non-recourse means you can't hold the person responsible. There's no personal guarantor. You can only go after the property so the property is truly asset-based lending. There's nobody on the hook for that loan if it goes south. A typical non-recourse loan in a plan–this is kind of cheap because it's going to give you the answer–is they're going to look at the other plan assets and so they're going to secure the other plan assets. They're going to make sure that they're not over-leveraged. In other words, they're not going to give you a 99% loan to value; they're going to give you a 60% loan to value or 50% loan to value. We'll see if you guys still get the answer even though I just basically gave it to you. This is fun. I'm just going to stop this one and I'm going to share it because the numbers are pretty done. It looks like 86% of you said, "Yes." Can I have non-recourse debt? 86% of you are correct. You can have recourse debt. Here's the trick: In an IRA, that non-recourse debt creates debt finance income so you have to pay tax on the portion that you're making but it doesn't disqualify your plan. In a 401K, you do not pay the debt finance income, and some of you guys are not too pleased with me for that, but I'm getting giggles out of it. That's enough with polls. I could have polls all day long and we would have a lot of fun. Last one: "I hold some assets in LLC–"and, by the way, this is the last one from people that have shot it in but it says, "You don't pay tax until withdrawal, correct?" No, if you have debt finance income, you're paying it in the year in which the debt finance income–you actually file a 990 T. You actually have to report it. "I have some assets in an LLC that is a day-trading entity." You're brave. "If this generates sizable profits–" I just love traders. "What options are out there to re-distribute funds from one LLC in several entities to the separate investments?" You can always move–if it's yours, it's like–an LLC is a safe so I can always move it from one safe to another, no tax implication. This is one of the questions we had earlier. I can always put money in, take it out. Somebody was talking about an opportunity zone. The opportunity zone's awesome. It's where you take capital gains and invest them in the opportunity zone. It's actually called the growth opportunity zone, and you defer the tax on that income. The max amount you can defer that tax is until 2025 right now. Then, you get a portion of that as non-taxable. Then, the growth–if you leave it in the opportunity zone for 10 years, all that growth and the gains on the investment itself are tax-free, and that's pretty interesting. Growth opportunities, we'll be talking about that as they give us more information. Somebody says, "Can you take the poll down?" I thought I did. I'll make sure polls, hide. There we go. Sorry about that, guys. Everybody's telling me, "Flip off the poll." I'm flipping it off. I like your opportunity zone discussion, and think about a bank, and loan out funds to other LLCs you use. You could do that. Then, it's interest unless it's all you. In which case, you don't charge yourself interests. "I am told that funds in an LLC are much like funds in a savings account. I pay taxes on the gains my funds make, and funds can be withdrawn at any time." That is true as long as it's disregarded or taxed as a partnership. I want to make sure that we're very clear. LLCs that are partnerships are disregarded. Yes, you can do that. If it's an LLC taxed as a corporation or LLC taxes in S Corp, little bit different. An S Corp probably has a huge difference. Jeff: Yeah. You can even pull securities out–even if it's a partnership–pull securities out and put them somewhere else. Like what Toby's saying, if it's an S Corporation or corporation, if you pull securities out of a corporation, you have to recognize gain immediately. Toby: It sucks. Appreciated assets is considered wages, right? Use an example here. Jeff: We had a client who had a couple of $100,000 of securities in a corporation, wanted to move it somewhere else, and we tried to explain to him that if he pulls securities out that are now worth 250 and he's only got a basis of $100,000, he's going to have capital gains of $125,000 in that corporation. The corporation will pay gains and then, for you to take it out, that's got to come from somewhere else, so either a salary, roan repayments or dividends. It doesn't work out well. Toby: No Bueno. The other one is people that real estate in an S Corp and then they need to take it out to refile it or something. All that appreciation is wages. It's horrific and so we have oftentimes say, "Hey, if you're going to do this S Corp, it's cool." The capital gains still flow down to you; it's just that you can't take it out. You've got to leave it in there. Jeff: Can we re-running into that more and more where the banks are running to take it out of the LLCs and stuff? Toby: They got horribly hosed during the downturn of people doing weird stuff. What happened is I would do a financing in an entity. Say I'm the owner, and then I would sell Jeff my ownership and the entity and the bank had no idea that I'm no longer the guy that they were dealing with that they gave the loan to in their mind and had sold his interests. They had no idea. One day, Jeff comes back in and says, "By the way, I'm the owner of this LLC, not the guy that you loaned the money to." No Bueno. They don't like that. All right, we got a lot of questions to go through so if you have questions, you can always email them in. I'm going to start going out through these things, and we have questions from almost an hour ago. People were asking questions before we even started. "I did a cash-out refinance from my residence to invest in private lending or to buy rentals. California only allows 150,000 to deduct interest expense for residence." That's actually the new federal rule. "For the portion that is more than 750, can I deduct the interest as investment expense?" All right, so here's the rule–and, Jeff, I'm [...] barding, but I deal with this stuff all the time. Your new limit is–unless you owned your house prior to–during 27 and perhaps during the first quarter of 2018 if your loan was already in process before December 15th of 2017, don't try to remember this stuff; just know that if you're in that weird period, you may qualify, then you're up to a million, but it has to be for acquisition indebtedness. Acquisition indebtedness means, "I bought the house," or, "I improved the house." That's for the mortgage person to be deductible on your Schedule A, which is your itemized deduction. If you're using the money for something else, then it has to be deductible on that something else. For example, if I am buying rental real estate, then the interest–you'd be writing off the interest on your Schedule A, essentially, against the income from that rental real estate. You are no longer writing off your mortgage interest personally as the individual residing in it; you are now writing it off as part of an investment. Anything you wanted to add on that? Jeff: No. If we're talking about buying a piece of investment property like you're just going out and buying more land, hoping that it'll go up in value, then it would be considered investment interests and go back on Schedule A. Typically, we want to keep it–if it's in a business interest or rental property, something like that, we want to keep it there. Toby: Again, the Canadians have been dealing with this for a lot longer than us guys. You cannot write off interest if it's not for your home in Canada unless it was used for an investment. People actually have to go re-file their houses, they get all the cash they could, pay down their house, re-file it so they could show that they used it for an investment so they could actually write off the interest. I think it was called Scotts transactions. It's weird. Hey, I'm not Canadian. This is another question: "Say I deducted a newsletter subscription in 2017 but received a refund for it in 2018. Do I need to add this back as income in 2018 or no?" If you wrote it off and it means your basis is zero, give you the money back, what does that sound like? Jeff: Income. Toby: Income. It is income. At the same time, I see people saying, "Hey, what if I reimburse myself from my cell phone out of two companies?" Now, each reimbursement represents–I said, "Well, you can reimburse yourself up to your expense. Anything above that is income so it becomes taxable." Fun stuff. Yes, you would report it, but only–your cash basis tax first. You report it in the year that you received the money back. "You've saved me so much money. I call y'all my friends." I love that when I get stuff like that. That's not really a question but I'm going to repeat it because it's better than, "Flip off the poll." Not that I had too many of those, but I had a few. "Can I write off costs for rehabbing out of the country?" This sounds like something for Jeff. Can you write off? US taxes. Jeff: Yeah, you do have investment in another country. Toby: Worldwide profits, baby. Yes. Jeff: If it's income-producing property, you're going to be reporting that to the United States. Any expenses you have on that property will go towards that also. Toby: If you're rehabbing a property, it sounds like dealer activity and active business. I may be little interest–I probably want to be looking at structures in the Bahamas if that's where it is. I'd be looking at something that's taxable there so you don't get into treaties and all sorts of fun stuff. "Do I have to pay $800 off the top to the franchise tax board when we start our corporation?" Jeff: No, California has an exemption to corporations that are first year only. Toby: Yeah, and that $800–this is, if you like tax cases, there's Veritas 1, there's Veritas 2, there's Northwest Energetic Services, there's Bakersfield Mall, and they're all versus your friendly–what is it called? Not the franchise tax. No, it's whatever. I forget what they're called. Jeff: We know what it's called. Toby: Yeah. Anyway, I'll remember it as soon as I could. I'm trying to think about it, but they keep suing the Board of Equalization, the BoE. It's $800 and they say that's the minimum tax, but they say, really, it's a fee because if it was a tax, then it'd be an unconstitutional tax because it's not attached to the income. They keep trying to call it a fee. They lose and then they change it a little bit and they lose again. That's just an aside. California is kind of evil. "We live in Washington. We have a Nevada C Corp which fully owns a watch and LLC and employs the kids. What are the recommended strategies to optimize for college tuition?" Wow, so you're doing a great thing. You are going to run them through payroll. When you're applying for things like scholarships, if it's going to be based on income, you're going to show that income. You're going to show those returns, but those kids should–most of that income is going to probably be underneath the standard deduction. Right now, it's $12,000. They're going to pay zero and they're going to pay very little on any amount over that. Plus, if you're smart, you're putting some of that money in a Roth IRA and they're never going to pay tax on that. It's smart to do this with your kids. If I paid tuition out of my tax bracket, it's coming out of my highest tax bracket. If I'm in the highest tax bracket, that's 37%. If my kids pay for their tuition and are working for the company, and they have to do something, then they pay at a third tax bracket, which, quite often, is zero. I do this with my own daughter. Last year, I think we paid $500 in taxes total for the year when it cost me $8,000 if I was doing it, but she has to do something. She has to actually work for the company and do stuff for the company. Other stuff you could do to optimize is dump it into–defer it into a retirement plan. If you want to do a 401K, they can put the first 18,500 of their income and they can defer it. You're still reporting it. I'm not sure it'll have an impact on scholarships or not. I have not seen it have much of an impact, but that's what I'd be doing, is the benefits far outweigh anything with this on the scholarship side. It is huge. Here's one: "I lent money to a real estate flipper. She gave me a promissory note, but it was not recorded with the deed of trust. Now, she is in default. Can I foreclose?" When you loan money to a flipper with no deed of trust, that's called a gift. I'm just kidding. You need to make sure that you're documenting it. You cannot foreclose until you actually file your secured interest. You got to have it filed and then, yes, you can actually start foreclosure proceedings if you want, if they don't pay it. You definitely want to make sure that, when you're giving notes–there's something called "first in time, first in right". You want to make sure you know it's recorded and you have your deed of trust against that house. Otherwise, somebody else could go slap theirs on first. There's also places where they get priority. In Nevada, for example, the HoAs get super liens. They actually step in front of the primary lender. It sounds weird but it's true. You want to make sure that you're documenting your loan and covering yourself as best you can, make sure that you're getting a personal guarantee and, if they have any other assets, you may want to slap a lien on those, too. All right, "With a new company, there's quite a lot of expense reimbursements. Since I don't have a lot of revenue yet, I haven't paid it back. Is it okay to carry it over a year or should I go ahead and pay it back even though I'm still in the red?" Jeff, this sounds like you unless you're zoning out there. She has a new company, she has lots of expenses, she doesn't have any money that she's made yet, so should they pay it back, carry it forward? "Can I pay myself, reimburse myself in the future year?" The answer is yes, you could reimburse yourself whenever. The question really becomes, "Do I want to capture all my startup expenses in the first year?" Jeff: Yeah, I think you do. You want to capture as many expenses as possible even if you're not getting directly reimbursed right away. Toby: Yeah, you have two choices whenever you fund a company. You can fund it with your cash and then it's going to have a loss and it's going to carry that loss forward if it's a C Corp. If it's an S Corp, you can actually take that loss. I've contributed $20,000. That's my basis and it loses 20,000 and, technically, I'd have a $20,000-loss with an S Corp. Usually, we're seeing this in C Corps, and you just carry it is a payable and a receivable. It's payable to you, you would say, "Hey, it owes me some money. It's kind of like this." I always use Krispy Kreme in my examples. I go out for Anderson and I bring in 12 dozen Krispy Kreme for a meeting or something, and the others say, "Hey, I'll pay you back but we don't have the money right now." It doesn't mean that it goes away; it means that I'm sitting there, waiting for them to pay me back. If they pay me back in two years, all it means is they can't write that off as a deduction until they pay me back so they're not going to have a loss if I'm carrying it as an IOU. If I give them the money to buy the doughnuts and they buy the doughnuts, they get the loss right away even though they haven't returned my money to me. They could return that money to me at any time. For me, it's always going to be tax-neutral. "Do I need to be on payroll with my real estate income or can I just take distributions from my LLC?" This is regarding Trump's 20% deduction on the plan. If it's investment real estate, you never have to take a seller as long as it's rental real estate. If it's flipping and it's in an S Corp, then you would have to take some salary if you're taking distributions. I don’t want to twist it. This sounds like it's just an LLC with rental property. You do not have to take it. The 20% is for 2018 onwards. If they think that it has a sunset clause, the end of 2025. Is it the end of 2025 that it ends? Jeff: Yeah. Toby: Yeah, so 2025. Here's a really long one. Boy, this is a really long one. Let me see if I can condense this. "I have a Wyoming LLC that is the sole member of a second LLC that is disregarded entity. I funded the Wyoming with 8,500 and the Wyoming funded the other bookkeeping QuickBooks balance sheet shows an owner equity 100% of 16,500. This is offset a balance sheet with capital contribution. While this does end up with net equity of 85, it gives the impression of the equity, which is incorrect. Is there a different way of handling?" Do you see what they're doing? Jeff: This is what we call–anytime you have combined financials or tax returns, you're going to have a–you may have a payable from one to the other where you've lent money to the other company, but when you do the combined financial or tax return, this is what you call an eliminating entry. If you lent $8,500 to one, those two entries are going to offset each other and it's going to be zero on your tax return. Toby: He's looking at it and saying, "Hey, they took the eight that I put into the second and added it to the 8,500 that I put in the first," and it's only 8,500 and then 8 went to the second LLC. Jeff: Yeah, I think you just need to clarify that it was the same money that– Toby: We're doing it and we'll take a look at it. We'll grab that name and, when we can, I'll print this out. "Can SMLLC, single-member LLC, disregard an entity under an MMLLC, which is a multi-member LLC taxed as a partnership, be converted to a single, multi-member LLC taxed as if–" you guys are killing me, "And would the tax changes be implemented?" What you're really saying, Billy, is, "Can I spin off a single-member LLC, make it into a multi-member LLC and change it to an S Corp?" The answer is yes. We just have to make sure that we follow the S Corp rules, which means there's got to be natural persons owning it, resident aliens–if it's somebody from out of the country, that they reside in the United States in certain trusts and even certain single-member LLCs. All right, to the question about–this refers to qualified business income. Sorry for lack of a better–no, Janet, you've already got it. "Since rental real estate is included for the 20%, are you also required to be a rep for that to be true?" No. You automatically get it. "High-tech network engineer, does it qualify as special services?" If you're not a network engineer and it's just you, then I would say probably yes. If you have a company and it's not so much you but your company has its own–like it's lots of people and it's just known, then the answer is no. Then, you're not. Jeff: Yeah, there were some specific carve-outs. I think the architects got a carve-out of this, but there's a few industries that have been specifically exempted from those specialized industries. Toby: I'm not sure but software engineer–I would say that if it's just you, chances are going to be under the special services. "When I file taxes, the taxes for the rental property show up on my tax showing a schedule form that is Schedule E. I almost $300,000 with my real estate and other income as a single woman." I think we already talked about this one. "Is there anything I can do to reduce my taxable income?" Yes, Janet, you can make contributions to qualified retirement plans. You can make contributions to charities, including your own. You can make contributions to C Corp if it has a business relationship. There are lots of things you can do or, if you have anybody that you need to pay salaries to like kids or somebody that's working with you, that would be something else you could do to lower the taxable income. "If you were writing out another slide, it's not showing up on my computer." Sorry, Sir. I think that's where all they go. "What about an IOL as a tax-deferred compensation for my property management income?" That would not work. An IOL is tax-neutral although you can do tax-deferred compensation where it's taxable to the entity and it's not taxable to you under certain circumstances. If I do tax-deferred income like, "Hey, I'm taking deferred compensation," I need to be at a losing. Usually, non-compete is going to be the thing that makes it work. We use these especially in the non-profit world where somebody says, "I don't want to be paid; I want to work, but I do want to get paid eventually for all the work I'm doing now. Rather than pay me this year, pay me when I'm 65 and maybe I wipe it out or not, but as long as I have a non-compete with that–" it's saying, "Hey, basically, if you go work for somebody else in a competing industry, you lose all that deferred compensation." You should be good. "I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing?" Dean, it's called a Section 179 deduction. You can buy up to $1 million, you're good. You can write it all off. Otherwise, that would be depreciated. They also have 100% bonus depreciation, so we're going to catch it no matter what. Bonus depreciation is, if it's less than a 15-year property, you can write it off this year. You're not required to. Somebody says, "Is 199A or that 20% a 20% tax deduction or a 20% reduction?" No, it's a 20% deduction against your qualified business income. The net effect could be much more than 20% depending on your tax bracket. If you're not in a high tax bracket, then the net effect won't be huge. If I'm in the highest tax bracket in a state that's taxing me where I'm at 50%, that 20% deduction could be worth a ton. It could be worth significant amounts especially if I'm in a company that's not a specialized service and I meet the requirements. I could have hundreds and thousands of dollars of qualified business income being exempted, and that could be worth hundreds and thousands of dollars to me from a tax standpoint. We already did this one. Somebody who had their spinning left. You can go in bite-sized pieces, guys. We're going to break these things down, and I understand that we're going through fast, but that's half the fun. We're not dwindling around here. "My self-directed IRA received a K1 for net rental loss for a passive investment of $50,000. Do I need to file a 990 T to show loss? Does the IRA custodian sign the return or can I sign?" Jeff: Here's what happens: If your IRA is a partner in a partnership, that partnership is required to issue a K1 to all of its partners. That doesn't mean you have to do anything with the K1 in your IRA. You're not going to recognize any taxable income until you actually start taking money out of the IRA, especially since this is a rental property we're talking about. Toby: Cool. Hey, this is a really good one. By the way, if you ever do a 990 T and it says self-directed IRA, your custodian does have to sign, and they like to charge you for that. "401K, 401K." "I have a C Corp with accumulated losses and would rather close it than repurpose it. Is there a way to direct the loss of my personal taxes? Is it possible?" The answer is yes. It's called a 1244 election. It should have been made when you issued your stock. If Anderson did your C Corp, we already did that because I do it with every single corporation. You can then write off as a single person up to $50,000 or up to $100,000 if married, filing jointly, and then it could be used to offset even your W2 income. Jeff: Going back to one of the earlier questions, this is one reason we want to start recognizing reimbursements and stuff as early as possible to establish those debts to you early on. Toby: Yeah, I had this happen and we actually had–the one time this was ever audited was because this accountant refused to give him a $67,000-deduction. It was one of our clients who was a trader who was ready to launch and go into his business and then his employer made him an offer he couldn't refuse and gave him a whole bunch of our money. He took a $67,000-loss. He had never made a dollar in the corporation. We went under audit. We won. Yay. It took two seconds because it was a single letter and we gave him the law, and it's a statute. The IRS is just a policing agency. If there's a statute that's clear, they don't sit there and fight with it. I think it was a $38,000-reimbursement–what do you call it–refund. Awesome first-timer. We love first-timers. Thank you for joining us. "I want to receive an invite, a reminder to a different email." We can give you that. You can always use this when you register for the Tax Tuesday. Just put in your other email. "Interested doing sandwich lease options. What is the best business structure and what document can you provide to protect myself from sellers suing me if a tenant or buyer stops paying rent or if a tenant or buyer trashes the home?" That's a tough one. You're literally leasing it and then re-leasing it with the right to buy. Let me think about this one. How am I going to do this? I'm going to be doing that through an entity. The way you protect yourself is to keep very little amounts of asset in that entity so that if you're sued, it's not you; it's the entity itself, and the entity doesn't have much to lose. That's a tough one. I tend to stay away from stuff like that. I want to buy the property and then you do a lease option in an LLC. Jeff: Make sure you have insurance. Toby: Yup, make sure you have insurance, too. That could happen so the tenant trashes the place and somebody else says, "Hey, wait a second." That's why there's always risk. What you do is you just keep it to a low. "Is it hard to set up classes in QuickBooks? Does Anderson do this?" It's not hard and, yes, we do it. "How long does it take to set up a class in QuickBooks?" Jeff: No, you'd have to ask bookkeepers. Toby: Jeff's such an accountant. Yes, it's actually very easy. Jeff: Actually, the bookkeepers are really good at it. They do it all the time. Toby: It's literally all you're doing, is setting up another class. It's almost like a revenue class so you might have revenue that comes in from plumbing and then selling products in your plumbing business and then, "Hey, I have one that's a consulting," and that might be another class. It literally takes two seconds. "What if the Wyoming LLC owns a C Corp which owns an LLC?" I don't know what that means, but what we mean is–I imagine for the 199A. We're just going to look at it is the C Corp owns an LLC that's not going to be qualified for the 20% deduction. The LLC that owns the C Corp, if it's doing other activities, might qualify for the deduction. Here's the problem: In the qualified business, the part I didn't tell you about is what is qualified business income. Dividends, interest, capital gains are not included in that definition so if you're issuing interest from a C Corp to the LLC that flows under your return, you're not going to be getting the 20%. "If you set up QuickBooks with a single entity and use class as a separate income, can you also print a balance sheet by class?" Jeff: Yes, you can do it if the balance sheet is also classified. Toby: Okay. See, we're good. We're getting there. We only have about 200 more questions to go. I'm just teasing you. We've gone through about three-quarters of them. "What is Jeff's last name?" Webb. "I have a rental company. This will be my first year doing taxes. What can I expect to pay on my capital gains? What are some determining factors?" Isaac, if you're a rental company and you're selling–like if you have capital gains, it's going to be depending on whether you sold it within a year or after a year. If it's less than a year, it's going to be ordinary income to you. If it's over a year, it's going to be taxed with either 0%, 15% or 20%. If you make over 250,000, you're going to get to add no another 3.8% and then whatever your state tax is. What are the determining factors? How much you make. If you're married, filing jointly less than 77,000, your capital gains rate is zero. All those things come into it. You can always write us at webinar@andersonadvisors if you want to ask specific questions. "I'm in the process of setting up QuickBooks account for my C Corp. I have a construction business and a hair salon that are DPA-ed as C Corp. I am flipping single-family residents in Wyoming LLC? I have sub-expense and sub-income accounts for those." This is getting long. This one, we may want to answer next week because this is kind of cool. It's talking about sub-accounts. I'm just going to table that one unless you want to jump on it. Jeff: No, I think there were a couple of issues in there. Toby: Yup, "But you don't pay tax until the withdrawal, correct? That was just with regards to the IRA." Steve, you do need an account and, yes, you don't pay the tax until you withdraw, add up in IRA. If you have unrelated business income tax or debt finance income out of an IRA, you'd pay it in the year that it was generated. "Can I set up an entity to receive W2 income and max out top […]?" Yes, but you can't do it out of a self-directed IRA. The reason being is that you are a disqualified person so you cannot do that unless you do something called a ROBS transaction, and that's going to be a major topic for another day. That's if your IRA invests in a C Corp that you set up and there are ways to do it and then you could actually pay yourself, so there. "I recently rolled over a 401K to equity trust IRA account, lending funds to other investors charging interest. Is interest income taxable to the IRA?" No, you can do that all day long, and equity trust is having to sign all your docs. My recommendation would be to set up your own 401K so you can sign the loan documents. Somebody says, "How many times a year can you roll over from 401K to IRA or reverse rollover?" It depends on whether you're doing a direct rollover. Jeff: You can do a trustee to trustee every day if you want, meaning you're going from TDM trade to Bank of America. You can do those as long as it's directly being transferred. You can pull the money out once to yourself once every 12 months, and it's a rolling 12-month period. If I pulled it out today, then I wouldn't be able to do it again until next October. Toby: Somebody asks, "Can I roll individual stock holding into Roth trading account if the current value is under the 550 limit, and how?" The answer would be, really, no; you're going to have to liquidate the holdings, open up a new account in the Roth IRA and then contribute the 5,500. It's a pain in the butt, I know, but I don't make the rules. It's this whole Bank Secrecy Act and all this stuff since they flew planes into trade centers. "Is the old rule dead on personal residences two out of five years?" No, that's still the rule, and we still use it like crazy. That's exception 121. Jeff: Yeah, they were talking about making it five out of eight years, and that got thrown out so it's still the old two-out-of-five rule. Toby: Yup. "Do my startup costs carry over two years if my net was negative?" It's actually 20-something years. Jeff: 15 years. Toby: 15 years now? Nate, you can carry forward your startup costs. Is it 15? Jeff::Yeah. Toby: "Hey, wait a second. I have an S Corp. They keep charging me the 800 fee ever
Takeaways – A podcast about learning from the wisdom of others
I am blessed to be around remarkable people. There are always Takeaways to learn. That is what I am sharing on this podcast. Takeaways – Life. Lessons. Learned. explores learning from the wisdom of others. Jeff Finn is the CEO of RealNex, a commercial real estate software company that has created a new category. Instead of just one solution, like a listing site or client relationship manager, RealNex offers a comprehensive suite of integrated solutions for the commercial real estate industry. Its the only one of its kind! That’s what Jeff does. He takes an idea and creates a new category. Like in the 1980's when he took the concept of the “commercial real estate network” and envisioned it as new category; the “managed commercial real estate network”. It was the only one of its kind. Then, seemingly out of nowhere was NAI Global, a network of commercial real estate firms comprising of 5,000 professionals and 350 offices in the US and 55 countries that is also recognized as a top 5 real estate brand in the world! Jeff sold NAI in 2012. What can you learn from a person like Jeff? Here are just a few of the Takeaways that we discussed on this episode. • What happens when you marry vision with persistence? • How are pioneers able to change the rules? • What is the best way to herd cats? Perhaps the biggest Takeaway for me appeared at about 36:00 when Jeff describes how long it took for NAI to become viable. He shared the cliché, “it never seems fast enough”. Except as he told the story back even Jeff seemed to be surprised about how quickly things actually happened. Another cliché comes to mind. “It really is about the journey not the destination”. I hope you enjoy! You can find Takeaways at any of the links below: • APPLE PODCAST • STITCHER • GOOGLE PODCAST • SOUNDCLOUD Thank you for listening! Please subscribe to “Takeaways”, rate and review wherever you get your podcasts
Jeff Christensen is the President & CEO of EntryPoint Networks and has been the Principal Investigator for a Department of Energy Grant: Edge Intelligence for Virtualization and Security in Open Networks. Prior to EntryPoint, Christensen was Vice President, Operations at Emdeon. Watch Jeff's TEDx talk HERE. Connect with Jeff HERE. BeTheTalk is a 7 day a week podcast where Nathan Eckel chats with talkers from TEDx & branded events. Tips tools and techniques that can help you give the talk to change the world at BeTheTalk.com !
Jeff Christensen is the President & CEO of EntryPoint Networks and has been the Principal Investigator for a Department of Energy Grant: Edge Intelligence for Virtualization and Security in Open Networks. Prior to EntryPoint, Christensen was Vice President, Operations at Emdeon. Watch Jeff's TEDx talk HERE. Connect with Jeff HERE. BeTheTalk is a 7 day a week podcast where Nathan Eckel chats with talkers from TEDx & branded events. Tips tools and techniques that can help you give the talk to change the world at BeTheTalk.com !
Comments? 888-563-3228 My Week On The Road I spent Wednesday with the Cincinnati Podcasters meetup which was a great time of sharing information about what is and isn't working in podcasting. If you are in the Cincinnati area, you should make the trip. From there I went to Nashville for the first ever Podfecta event which was organized by my friend David Hooper. This event used my favorite format which is one track, one room, so all participants get the same information. It's a great way to build community. Then I went to Craft Content Nashville which was an "unconference" (much like the old days of Podcamps). This had over 50 speakers with TONS of tracks. while not all the sessions I attended were stellar, I did walk away with some great info, and got to network and answer some questions. Both events brought in food which made networking very easy. What is a Valuable Show? Jennifer Briney does the congressional dish podcast and did a presentation and the put up a slide that asked, "What is a Valuable Show?" and for Jennifer, it is "An Impressive display of public Entertainment that is useful or important. So Good They Can't Ignore You I listened to the Book "So Good They Can't Ignore Your (Why Skills Trump Passion in the Quest for Work You Love) and he goes hard against the strategy of "Following your passion and the money will come." It's a very interesting book and I agree with some of it. He talks about to move forward you need to develop skills that are rare and valuable. This leads to more jobs where you start to control more of your destiny. He also points out and gives many different illustrations on how few (if any) people can say exactly what they want to be when they grow up. Most people talk small steps (doing rare and valuable work) which leads to more opportunities that lead to you having more control over your life (when you are rare and valuable, you control and call more of the shots). The Law of Remarkability: The law of an idea remarkability. Your podcast inspires people to remark about it and if it has the ability to be spread in a venue that supports these remarks. He also talks about having a goal of acquiring skills that are rare and valuable. I want to take this idea and use it as criteria for your podcast. Jennifer Brinery read a bill going through Congress that was over 2000 pages. I'm pretty sure it's rare that anybody would read that (the Senators receive a summary that was four pages) and in regards to really getting a good picture of what is going on in Congress, Jennifer provides a ton of value. Podcast Monetization I got to meet in person Jeff Sanders who is the author of the 5 AM Miracle and The Free-Time Formula (Hear my interview with Jeff Here) did a great job of giving some great insights into having advertising on your show (for the 10% that have enough downloads to support CPM models) and Jennifer Briney of Congressional Dish (hear my interview with Jen)provided a stellar presentation on creating a podcast that is 100% listener supported. In both presentations, Jeff and Jennifer pointed out that it took YEARS to build the audience big enough to be able to do this full time. Don't Quit Your Day Job We have seen people who are super successful. Their pitch goes something like this, "I can show you how to make a million dollars and not pay taxes. Step one, give me a million dollars." In his book So Good They Can't Ignore You author Cal Newport tells the story of a young blogger who was "fed up with living the conventional life working nine to five for the man with little or no time and little money to pursue my true passions so I've embarked on a crusade to show you and the rest of the world how an avergae Joe can build a business from scratch to support a life devoted to living the dream. The business he referenced (as is the case with most Lifestyle designers) is his blog about being a lifestyle designer. In other words, his only product is his enthusiasm for not having a normal life. " Enthusiasm alone is not rare or valuable and therefore is not worth much. I Couldn't Believe My Ears In talking with a brand new podcaster, I was shocked to hear they had QUIT THE MARKETING JOB that they had been doing for years to start a podcast that didn't scream "EASY TO MONETIZE." Jennifer mentioned how she had taken a part-time job as a waitress so she could still do Congressional Dish and pay the bills until the show was built up enough to jump to full time. We think it's courageous, we think if we don't jump now we never will, and so we jump. When we see people jump from building to building we can't believe what we see https://youtu.be/f0xyzj545tc?t=1m9s It's one thing to jump over a mud puddle. It's a totally different story to jump over a lake. As my mother used to say, "just because Johny Johnson jumps off a bridge doesn't mean you should" https://youtu.be/5wOiYjN2_gA?t=2m1s (disturbing) A Reporter Hears Your Latest Episode, What Is Your Headline? In Nashville, I did a live version of the Podcast Rodeo show. I pointed out that most of the content I consume does one of the following: Makes me Laugh Makes me Cry Makes me Think Makes me Groan Educates me Entertains me If the episode you are going to record does none of the above. Question of the Month As I record this it is April 1. The first quarter of 2018 is over. What had you planned on doing in that first quarter that didn't, and what are you going to do differently to make it happen in this quarter. You can leave your answer using the options on the contact page I need your answer by April 26th Because Of My Podcast - I Can't Believe I Got to Meet.... Leslie Eiler Thompson produces The Rogue Ones podcast and explains how she got to me at a super cool person in her niche Question of the Month As I record this it is April 1. The first quarter of 2018 is over. What had you planned on doing in that first quarter that didn't, and what are you going to do differently to make it happen in this quarter. You can leave your answer using the options on the contact page I need your answer by April 26th Mentioned in This Podcast Tim Hanson - http://www.manontheseat.com/ Joe Taylor - www.onfaithsedge.com Trapper Jack - www.touchedbyheaven.net Glenn Hebert Interview (on getting sponsors) The Rogue Ones https://www.rogueonespodcast.com/ Jon from www.professorslots.com Podcast Rodeo Show
[spp-playlist] Jeff Bloodworth is an associate professor of history at Gannon University. A political historian who works on the history of contemporary American liberalism and genocide studies, he has published widely on the travails of the liberal project, the history of humanitarian intervention, and the American foreign policy impulse abroad. Watch Jeff's TEDx Talk HERE. LinkIn with Jeff HERE. BeTheTalk is a 7 day a week podcast where Nathan Eckel chats with talkers from TEDx and other branded events. Learn the tips tools and techniques that can help you give the talk to change the world at www.BeTheTalk.com !
[spp-playlist] Jeff Bloodworth is an associate professor of history at Gannon University. A political historian who works on the history of contemporary American liberalism and genocide studies, he has published widely on the travails of the liberal project, the history of humanitarian intervention, and the American foreign policy impulse abroad. Watch Jeff's TEDx Talk HERE. LinkIn with Jeff HERE. BeTheTalk is a 7 day a week podcast where Nathan Eckel chats with talkers from TEDx and other branded events. Learn the tips tools and techniques that can help you give the talk to change the world at www.BeTheTalk.com !
Congrats to the Eagles! Their fans are the best horse-poop-eating nutjobs in the world. We cover the game, the post-game, and of course all the commercials! Tim's not into "Solo" but Jeff's excited. PLUS: Rest in Peace, John Mahoney, The Cloverfield Paradox sucked, “Lady Doritos” are fake news, Frank Zappa’s hologram is going on tour and we’re OK with it, Paul Simon is retiring, Tim loves Altered Carbon on Netflix & Autumn knows all about the Falcon Heavy rocket launch. STAFF PICKS: Tim - Barbara Barrie on Gilbert Gottfried’s Amazing Colossal Podcast http://www.earwolf.com/episode/barbara-barrie/ Jeff - Here and Now on HBO https://www.hbo.com/here-and-now Check out the Tim & ShaneyB Experiment Podcast: http://www.wsbradio.com/entertainment/personalities/tim-shaneyb-experime/S6qJgs4reZb0kweajMHuxN/ #Solo #StarWars #AlteredCarbon #JohnMahoney #Frasier #SuperBowlLII #PhiladelphiaEagles #Patriots #TomBrady #JustinTimberlake #Doritos #Pepsi #Tide #PeterDinklage #MorganFreeman #DannyDevito #DavidHarbour #EliManning #NYGiants #OdellBeckhamJr #DirtyDancing #NFLNetwork #NFL #Dundee #DannyMcBride #ChrisHemsworth #Australia #Dodge #Ram #Truck #MLK #Budweiser #DillyDilly #DietCoke #MichelobUltra #Scientology #Pringles #CastleRock #BillHader #BlackPanther #Frasier #Avengers #Marvel #InfinityWar #CloverfieldParadox #Netflix #FrankZappa #PaulSimon #FalconHeavy
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