Anderson Business Advisors Podcast
Marketing & Funding For Flippers

Marketing & Funding For Flippers

February 18, 2020

Flipping real estate has been a hot topic for the past few years as a way to make money. Some flippers find success, while others struggle to survive. What are they doing right, wrong, or different? Today, Clint Coons of Anderson Business Advisors talks to Tucker Merrihew, owner of TTM Development Company and host of the Real Dealz Podcast. Tucker describes systems and processes he developed to become a successful real estate flipper. 

Highlights/Topics: 

  • How did Tucker get started in flipping real estate? While starting and growing a mortgage company, he flipped properties on the side to make a profit
  • Why did Tucker start TTM Development in 2008? Mortgage markets imploded and real estate changed; created company to buy REOs from MLS and at auctions, as well as negotiate short sales to avoid foreclosures
  • What has changed at auctions since then? Advances in technology and additional service providers have made it more competitive and difficult to get worthwhile deals
  • What is direct-to-seller marketing? Tucker takes out the middleman and works directly with those who own real estate 
  • What’s the key to successful marketing that generates the biggest return rates? TTM Development’s marketing stands out from its competition by trying, testing, tweaking, and retesting ways to be different
  • Marketing costs money, so how does Tucker’s company make money? Three buckets:
    • Long-term Money: Redevelopment/new construction
    • Medium-price Point: Renovation
    • Wholesale: Buy property, then sell it for various reasons to generate profit  
  • How does Tucker’s team determine where to drop mail? Driving 4 Dollars (D4D) App
  • How can real estate flippers raise money to get their business funded? Internal capital, private money, and hard money
  • How and where to find good contractors? You get what you pay for, if you value cost over quality, pick one or the other or something in the middle    
  • What will impact the real estate market in 2020? Supply, demand, and interest rates
  • What are must-dos for new investors? Understand it’s a marketing business first and real estate business second

Resources

TTM Development

D4D App on iTunes

D4D App on Google Play

Real Dealz Podcast on iTunes

Deal Finders Academy

REOs

MLS

Yellow Letters 

Deed of Trust

Urban Growth Boundary

Clint Coons

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Tax Tuesdays with Toby Mathis 02-04-2020

Tax Tuesdays with Toby Mathis 02-04-2020

February 11, 2020

Spend a little bit of time and money to learn a lot about taxes and put much more money in your pockets. What do you have to lose? Nothing. Toby Mathis and Jeff Webb of Anderson Advisors offer fun and educational tax discounts and freebies. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • I may inherit a timeshare that I’m sure has fees with it that I don’t want. How do I figure out the details to get out of it? Disclaim/bequest your inheritance
  • Is all the funding for legal costs to start a business tax deductible? Organizational costs can be expensed up to $5,000 in the first year
  • Which is the best way to fund an Airbnb; cash or mortgage, if money is no issue? Depends on mortgage interest rate to get better capital return, or invest cash elsewhere
  • Can you have both a private and public foundation? Yes, you can control both, but can’t own them
  • What IRS requirements are necessary to qualify as a real estate professional? Refer to 26 U.S.C. 469C7 to change real estate losses from passive to active   

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast. 

Resources:

Tax-Wise 2020 Bundle 

Wills and Trusts

501(c)(3)

Airbnb/Short-term Rentals

Real Estate Professional Requirements

Form SS-4

Form 1040

Form 1041

Section 179 Tax Depreciation

Depreciation Recapture

Bonus Depreciation

Individual Retirement Arrangements (IRAs) 

Traditional and Roth IRAs

Capital Gains Exclusion/Section 121

Rollovers as Business Startups (ROBS)

Cost Segregation Tax Breaks!

Form 3115

1031 Exchange

Opportunity Zones

Schedule A

26 US Code 280A

SECURE Act

Toby Mathis

Anderson Advisors

Anderson Advisors Events

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Lightening Fast Loans For Real Estate Investors

Lightening Fast Loans For Real Estate Investors

February 4, 2020

Most businesses only manage to survive three to five years. Business owners who make it past the five-year mark should be proud of their background, knowledge, and experience in the industry. They stay afloat and make it through minor to major downturns by knowing how to talk the same language and turn a profit. Today, Michael Bowman of Anderson Business Advisors and Bowman's Business Brief talks to Eddie Gant, co-owner of Jet Lending, LLC. The asset-based lender started investing in the real estate business by buying, fixing, and flipping distressed properties, but decided to take a leap into lending, as well.

Highlights/Topics: 

  • How to evaluate asset-based lending? Multiple forms of protection; #1 is collateral
  • Why go to an asset-based lender? Security, safety net, and speedy closing of deals
  • Is it a good deal or not? Second set of eyes to review deals; include terms to get an out
  • How has the industry changed? Increased competition and bigger audience
  • Who to include on your team and build your network? Responsible and reliable partners, contractors, insurance companies, roofers, and structural engineers 
  • What’s the hardest part of the business? Not finding deals but managing contractors
  • How did lottery curse lead to one of Eddie’s biggest wins? Bought house from Texas lottery winner who burned through millions of dollars in a few months
  • How to create a win-win for client and company? Do business right to build clientele, your brand, and word-of-mouth referrals without needing to be the cheapest 
  • Are meetups worthwhile, why? Education, networking, and fostering a community  

Resources

Jet Lending

Constant Contact

Mailchimp

Michael Bowman

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Anderson Advisors Podcast

Tax Tuesdays with Toby Mathis 01-21-2020

Tax Tuesdays with Toby Mathis 01-21-2020

January 28, 2020

Bookkeeping has been around forever, even before the days of QuickBooks software and spreadsheets. Toby Mathis and Jeff Webb of Anderson Advisors welcome a special guest, Troy Butler, to discuss how bookkeeping began and evolved to track, document, and record transactions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

 

Highlights/Topics: 

  • Should I hire a bookkeeper for my business, or do it myself? Depends on level of detail and number of transactions 
  • We have several companies. What’s the best way to pay and track expenses for each? Whether each company needs a separate set of books depends on if the companies are related or not, and go on the same tax return
  • What’s the best way to set reminders of accounting tasks that I should do? Set up monthly or quarterly tasks; don’t let everything build up and do it all at once
  • What’s the difference between a profit-and-loss (P&L) and balance sheet? Balance sheet lists your assets, liabilities, and equity for the company; P&L shows profitability for specific timeframes
  • How do you keep track of reimbursable expenses before your corporation makes a profit? Even if not profitable yet, you need to track your expenses and income
  • What are some tips to get good bookkeeping results with the least amount of effort? QuickBooks, Peachtree, spreadsheets, and calendars; automate as much as possible and consistency is critical
  • When we take money out of the holding company to use for personal expenses, how do we handle that in the bookkeeping? Distribution recorded as an equity item
  • Is it legal to put personal funds directly into our holding company, and how do we document that in our bookkeeping? Yes, that’s allowed; you can put your money into your company, but it’s your money and you can take it back later, if needed  

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast. 

Resources:

Anderson Bookkeeping Services (Discount Code: BookTax)

QuickBooks

Peachtree

501(c)(3)

1099 Form

Schedule A

Schedule C

Schedule D

K-1 Form

Cost Segregation Tax Breaks!

Real Estate Professional Requirements

HUD

Airbnb/Short-term Rentals

Capital Gains Exclusion/Section 121

Depreciation Recapture

Bonus Depreciation

199A Deduction

Shopify API

Tax Cuts and Jobs Act (TCJA)

Trading Diary

TradeLog Software

Individual Retirement Arrangements (IRAs) 

Traditional and Roth IRAs

1 Veteran Foundation

Save A Vet With A Pet – 1 Veteran Foundation

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Apartment Investing & Passive Real Estate Investing

Apartment Investing & Passive Real Estate Investing

January 21, 2020

You know it’s time to make a career change when your job becomes more difficult to be both profitable and fun. Today, Toby Mathis of Anderson Business Advisors talks to Ken Harris of Harris Properties Investment Real Estate and Austin Commercial Real Estate Investing Group. Ken was born and raised in Houston. He went to the University of North Texas to study economics and finance because he wanted to be a banker or stock broker. However, after serving in Vietnam for a year and four years in the Air Force, he decided to return to Texas, but not Houston. 

Highlights/Topics: 

  • How did Ken end up in real estate? He didn’t want a state job or work for a corporation and be transferred after a few years 
  • Why did Ken wish he would’ve never done residential real estate? Didn't know any better
  • What should Ken have done? Started directly with commercial business, mostly doing side acquisition for users
  • What happened to Texas in the mid-80s? Economic crisis, a total collapse, where Ken ended up with a lot of debt and real estate
  • Why did some of the richest people and homebuilders in Texas declare bankruptcy? Lenders no longer giving loans or wanted loans paid back
  • How did a two-week projet turn into a 25-year career? Friend in construction business asked Ken to find locations, property owners, and negotiate deals for cell phone towers
  • What is Ken’s secret to success? Living a long time and owning places so long to build up some good equity
  • Why Ken decided to be a passive investor by getting into apartment syndication? Didn’t want to work hard or have as much responsibility, so converted his equities
  • Why did Ken decide not to be a deal sponsor? Wanted to build a portfolio around his lifestyle and love for the outdoors 
  • How did Ken pick his syndications? Focus on who's running/sponsoring them; know those people are in a position to take care of what needs to be done
  • Why meetup for lunch every Tuesday? Networking and education are primary focuses for Austin Commercial Real Estate Investing Group
  • What are some of Ken’s biggest wins? Holding onto real estate and then selling it; although it stabilizes, it doesn’t usually go down much
  • What’s Ken’s advice about the world of investing? Understand what passive income is, how you establish it, and how you can make it work 

Resources

Austin Commercial Real Estate Investing Group

Ken Harris’s Phone: 512-288-2022 or 512-663-2022

Ken Harris’s Email

1031 Exchange

Verizon Wireless

Regulation D Rule 506(b)

Jet Lending

Warren Buffett

Rich Dad Poor Dad by Robert Kiyosaki

Cashflow Game

Dame DC Cordova

Harv Eker

Tony Robbins

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Anderson Advisors Podcast

Tax Tuesdays with Toby Mathis 01-07-2020

Tax Tuesdays with Toby Mathis 01-07-2020

January 14, 2020

Do you have enough money saved up for your retirement? Do you feel good about your golden years? The good news is that legislation was passed recently. It’s called the Setting Every Community Up for Retirement Enhancement (SECURE) Act. However, it means saying goodbye to stretch IRAs and age limits on IRA contributions. Toby Mathis and Jeff Webb of Anderson Advisors answer SECURE Act and other tax questions that may impact your financial future. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • I am trying to qualify my wife for real estate professional status, and she will go part-time next year. She is a physician. How will IRS treat her on-call duty hours? Only count hours she is actually working on real estate, not her on-call duty hours
  • I have significant start-up costs for training prior to the establishment of my LLC (C Corp). Are there alternatives to recapturing the start-up costs in less than 15 years? No, but you can write off $5,000 for up to $50,000 in start-up costs the first year 
  • I am interested in providing a Wellness Plan for my employees. How do we structure it, so it isn’t taxable income for employees? Non-taxable benefit to company, and non-deductible benefit to employees
  • Is gap lending income passive or active for a 401(k)? Gap lending is lending and passive/interest income; not an active business  

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast. 

Resources:

SECURE Act

Individual Retirement Arrangements (IRAs) 

Stretch IRA

Traditional and Roth IRAs

Real Estate Professional Requirements

Types of Trusts

Bonus Depreciation

Depreciation Recapture

Health Savings Account (HSA)

Schedule C

Cost Segregation Tax Breaks!

401(k)

1031 Exchange

Solo 401(k)

Capital Gains Exclusion/Section 121

Garn-St Germain Depository Institutions Act of 1982

Rollovers as Business Start-Ups (ROBS)

Employer ID Number (EIN)

501(c)(3)

199A Deduction

Opportunity Zones FAQ

Opportunity Zone Heat Map

Airbnb/Short-term Rentals

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast

Residential Assisted Living By Design

Residential Assisted Living By Design

January 7, 2020

How can you build and develop a residential assisted living (RAL) space that attracts residents and beats the competition? Today, Clint Coons of Anderson Business Advisors talks to Lisa Cini, founder of Mosaic Design Studio and author of senior living design books. She helps RAL business owners take their properties to the next level. When it comes to RAL, it’s not only about location, location, location, but making it attractive and wanting to live there during your golden years.

Highlights/Topics: 

  • What sparked Lisa’s interest in RAL space? Interior design that transformed into certified healthcare to make an impact when sending people home
  • What’s the difference between a nursing home and RAL? Nobody wants to go into a nursing home during a crisis situation knowing they’ll never leave alive
  • How has RAL changed over the years? Mindset shifted to make a comfortable and attractive transition where average stay increased from two to 20 years 
  • Is bigger always better for RAL? Better for the bottom line, publicly traded, scaled up version for profit and FTEs, but not for residents who live in them
  • What makes RAL your or your loved one’s home? Walk-the-walk and talk-the-talk of what you do at home; forget about bed hair and getting dressed up 
  • Why does RAL staff become a surrogate family? Interaction, engagement, and intimate one-on-one care lets residents put their guard down and live like they did at home
  • What issues are related to RAL properties? Make it a place for residents to thrive and relieve burdens to change fear to freedom
  • How should RAL properties be designed? Similar to spa design with curb appeal, vestibules, soft surfaces to reduce noise, induction loop, indirect lighting, wholesale residential furniture, and space for guests 
  • What technology is essential for RAL properties? Lowe’s, Home Depot, and other big box companies are getting into RAL business by offering:
    • Wi-Fi for streaming, gamification, face-to-face video, etc.
    • Bidet toilet seats and handles to safely and independently clean yourself.
  • Are RAL properties going to the dogs? People respond to and love their pets/comfort animals; they shouldn’t and don’t want to give them up 
  • What else should RAL properties and their owners take into consideration? Be open minded about cannabis and the role it can play in residents’ lives  

Resources

Lisa Cini

Mosaic Design Studio

Books by Lisa Cini

Best Living Tech

Brookdale Assisted Living

Sunrise Senior Living

Clint Coons

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Residential Assisted Living Landlording

Residential Assisted Living Landlording

December 31, 2019

Have you ever thought about assisted living homes? Whether it’s for you, your loved ones, or as a real estate investment? If you’re thinking about becoming a landlord, consider the assisted living marketplace as a great place to find potential tenants. Today, Toby Mathis of Anderson Business Advisors talks to Vern Harris from A Better Way Realty, which invests in assisted living real estate. Vern shares how he helps buy, fix, and get assisted living homes ready for operators.

Highlights/Topics: 

  • Who puts up the money? Investors invest in A Better Way Realty funds, and their money is deployed into assisted living homes 
  • Do you lease it to an operator? What's the typical lease term? Usually, a five-year lease
  • Do operators have to keep paying Vern as their landlord for five years? After three years, operators are given the option to buy the property
  • How is the purchase price calculated? Purchase price is agreed on ahead of time
  • Have any operators purchased a property? Two operators exercised the purchase option in the last 10 years
  • How are the operators doing? Assisted living is a tough business; operators that understand the business, work at it, can grow it 
  • What’s the typical age range of those in assisted living? Silver Tsunami (i.e., people over 65 in residential assisted living; average age is 82 years old)
  • What about ages of those in adult care homes? As young as 18 and up to 60 years old on average, including sober living, medical illness, and/or autistic clients
  • How do you identify properties? Assisted living works best with space for either a 10- or 16-bed home and about 3,500 sq. feet, which can be hard to find in certain locations
  • Your model is different by running a fund. How does somebody invest or put money in, if interested? Passive investors can get into the fund and management is taken care of; operators make sure everything works, and investors are paid
  • Are you doing a share? Carve-out? How are you running that? Usually, it's an 8-10% annual return by monthly payout
  • What's been your favorite project that you've been involved in? Four-pack of houses that helped operator more than double their business
  • Where do you find your operators? Do they find you, or are you looking for them? Both
  • How does somebody become an operator? Volunteer in an assisted living home; unique type of caregiving that requires compassion and business sense 
  • What’s the worst part? If you fail and lose money, worse than that, you displace tenants 
  • Do you have projects that you're waiting on to be completed? Newest fund has been open a few months and has a fair amount of cash lined up 
  • What's the average amount that tenants pay? Depends on home, location, and Medicaid vs. private payments  

Resources

A Better Way Realty

Denver Association of Assisted Living Residences

Residential Assisted Living (RAL) National Association

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Think Bigger Realtor Success Strategies

Think Bigger Realtor Success Strategies

December 24, 2019

Technology is changing real estate and information sharing. Well-paid realtors can’t just sit back and wait for buyers and sellers to show up. How do they remain relevant and fundamental in transactions? Today, Toby Mathis of Anderson Business Advisors talks to Justin Stoddart of Think Bigger Real Estate. Justin focuses on business development by serving as a business consultant to help real estate agents better serve their clients. 

Highlights/Topics: 

  • What’s the difference between an expert vs. technology/low-cost worker? Save money, but deal with significant net difference; someone knowing what they’re doing is true value by being net positive and putting more money in your pocket
  • Why are people enamored with technology in real estate space? People think they can do it themselves; who needs an expert when they can do it themselves and save money
  • Do Zillow, Redfin, and other online sites buy properties? Yes, they buy at wholesale and sell at resale; they don’t buy and hold properties to make profits
  • Why do people choose not to hire real estate experts when buying or selling a property? Matter of convenience, not transaction costs 
  • What got Justin into real estate? Family business, studied construction management, left to start his own home building company
  • Is Justin’s passion building homes? No, he’s passionate about building people, growing people, and growing business
  • Does Justin plan to expand Think Bigger Real Estate? Yes, plans to go nationwide
  • How do real estate agents remain well paid and not be replaced by technology/low-cost workers? Innovate at pace equivalent to technology; be less salesy, more customer service oriented
  • Why select full-service real estate? Higher degree of service/quality, and pay for it
  • Why select Software as a Service (SaaS)? Lower degree of service/quality, and pay for it without advisors/experts
  • What drives Justin’s focus on real estate? Family life is where it’s at; great way to live
  • What helps make real estate agents successful? 
    • Develop more business than you think you need; fire customers bad for your business, mindset, and quality of life
    • Differentiate yourself by having a voice; think bigger, educate others, and step into expert role  

Resources

Justin Stoddart on Twitter

Think Bigger Real Estate

Multiple Listing Service (MLS)

Zillow

Redfin

H&R Block

Opendoor

Voodoo Doughnut

Amazon

Mel Robbins

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Anderson Advisors on YouTube

Tax Tuesdays with Toby Mathis 12-10-2019

Tax Tuesdays with Toby Mathis 12-10-2019

December 17, 2019

‘Tis the season for giving, so how do donations to charities and nonprofits impact your taxes? Toby Mathis and Jeff Webb of Anderson Advisors provide answers to help you get through the holidays when helping others. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.

Highlights/Topics: 

  • I received a large sum of money via inheritance in 2019. How can this amount be protected and have the tax burden minimized? Inheritances are not taxable to recipient
  • Is keeping a log of miles always required? How should the car be purchased so all the miles are considered business? Keep track of all business miles via MileIQ; how car is purchased doesn’t matter as much as how the car is used
  • If I make a large stock contribution to my 501(c)(3), are there any capital allocation or income sourcing requirements that would force my charity to sell it off? No capital allocations or income sourcing requirements, but you must fulfill nonprofit’s purpose
  • Is a quitclaim deed sufficient to transfer the title of a timeshare from personal name to revocable living trust in California? Technically, you can, but most use a warranty deed; determine if ownership is deeded interest or right-to-use contract   

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast. 

Resources:

2019 Year-End Tax Planning Special

Tax Cuts and Jobs Act (TCJA)

Form 1065

501(c)(3)

MileIQ

Cost Segregation Tax Breaks!

1031 Exchange

Bonus Depreciation

Section 179

401(k)

Solo 401(k)

Roth IRAs

Form 1120

Opportunity Zones FAQ

Opportunity Zone Heat Map

Capital Gains Exclusion/Section 121

Depreciation Recapture

Section 1244 Stock Loss

Section 183

Types of Trusts

Real Estate Professional Requirements

Toby Mathis

Anderson Advisors

Anderson Advisors Tax and Asset Protection Event

Tax-Wise Workshop

Anderson Advisors on YouTube

Anderson Advisors on Facebook

Anderson Advisors Podcast