687.6K
Downloads
380
Episodes
Real Estate Investors, Stock Traders, and Business Owners guide to preserve their wealth, protect their assets, and prosper in the future.
Episodes
Wednesday Jun 05, 2019
Wednesday Jun 05, 2019
Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions and provide the psychology behind it all. They help you understand why the laws are written the way they are, so you can be a better steward of your money. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.
Highlights/Topics:
- When can I pay family members employed by my corporation - annually or regular intervals? Depends on federal and state laws, but no IRS rule regarding pay schedule
- Should an LLC or individual lease car used primarily for business; what are the tax consequences? Brings liability to business; have appropriate and adequate insurance
- What are bookkeeping and tax implications of LLC being taxed as C Corp? Bookkeeping is the same for all business structures; LLC is state designation, but doesn’t have stock
- Should I use Quicken or QuickBooks for bookkeeping? Software doesn’t always need to be purchase; go with QuickBooks or use spreadsheets
- Can I deduct my real estate training seminar costs? Depends on where you want to deduct it (if on Schedule C, then no) and if you’re already in the real estate business
- Are you a real estate professional, if you have a property management company? Possibly, if you have 750 hours of real estate professional time and material participation
- What’s the best way to utilize a 1031 exchange? Sell and buy real estate
- Can income from self-employment be offset by Tesla tax benefit/credit? Yes
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
Self-Employment Tax (Social Security and Medicare Taxes)
What business type is right for you?
Delaware Statutory Trust (DST)
Real Estate Investment Trust (REIT)
Using Cost Segregation in Residential Real Estate
Tesla Electric Vehicle and Solar Incentives
Anderson Advisors Tax and Asset Protection Event
Saturday Jun 01, 2019
Saturday Jun 01, 2019
A 1031 exchange lets you defer gain on the sale of real estate. However, many variables are involved that can go wrong and leave you without a property to close into. Then, you’ll have taxable gain. Today, Clint Coons of Anderson Business Advisors talks to Scott Hendrix, wealth manager at Upstream Investment Partners. Scott shares the perfect backup solution to save 1031 exchanges.
Highlights/Topics:
- Fastest growing area of Scott’s business: Real estate investors who want to sell property that’s gone up in value above what they originally purchased it at
- Delaware Statutory Trust (DST): Legitimate replacement property recognized by the IRS, but relatively unknown option for real estate investors doing a 1031 exchange
- Tax Cuts and Jobs Act (TCJA): Rules out all appreciated assets, except real estate, as eligible transfer under Section 1031
- 1031s don’t work without a qualified intermediary (QI) that holds and sends funds for specific time periods
- Similarities and differences between DST and Real Estate Investment Trust (REIT):
- Both are passive real estate ownership
- REITs are not eligible as replacement properties
- REITs are not legally structured as actual property under management
- DST owns the real estate that qualifies as legitimate reinvestment of tax-deferred gains under 1031 exchange; REIT may or may not own it, so it doesn't qualify
- Find and Identify DSTs: Work with advisors/brokers to look at available open trusts, find trusts that meet your needs and goals, and use them as a backup:
- Investors have only 45 days from closing date on property being relinquished to identify where they intend to reinvest their proceeds
- If intended deal doesn’t work after 45 days, IRS makes you liable for capital gains tax and depreciation recapture tax (if applicable)
- DSTs offer classes of real estate assets to give investors an opportunity to passively own a class of real estate without any expertise, but interest in additional diversification
- Return Rate: 90% of net operating cash flow comes back to investor on a monthly basis at an annual rate; rates vary depending on prevailing conditions
- 1031s can be repeated; sponsor provides notification about selling property and can tax defer it again under Section 1031 or take their gains and incur tax liability
- Sponsors usually liquidate their entire portfolio at one time; but they could choose to sell only a portion, depending on current condition of real estate market
- Biggest Risk with DST: Once you're an investor in a piece of property, you can’t get out of it until a buyer comes along - could take years
- Three reasons real estate investors use DST as a backup plan:
- Can be named backup property during 45-day identification period
- Taxable boot (a.k.a. leftover cash)
- Still want to own real estate, but don't want to do the work; done being a landlord and dealing with tenants, plumbers, contractors, and building inspectors
Resources
Scott Hendrix’s Phone Number: 512-861-0523
Delaware Statutory Trust (DST)
Real Estate Investment Trust (REIT)
Clint Coons’ Webinar on Qualified Opportunity Zones
Wednesday May 29, 2019
Wednesday May 29, 2019
If you make a mistake and don’t have the proper title insurance policy in place to protect you and your assets when transferring real estate, you can blow it. Title insurance is an important part of real estate investing. Today, Clint Coons of Anderson Business Advisors talks to Latra Szal, attorney and chief operating officer (COO) of Texas National Title. She describes all the critical aspects of title insurance.
Highlights/Topics:
- A day in the life of Latra: Work with clients, real estate agents, and investors to help them navigate transactions and get them through closing
- Piece of the Pie: Title insurance is tiny piece of real estate transaction that can go wrong when processed improperly
- Common mistakes made:
- People take title in their name because it’s easier and faster, but haven’t created their LLC; altering warranty deeds may change/end coverage
- People want to get into individual financing arena by loaning their money to other investors to purchase and renovate a property to resell it without title insurance
- Additional Insured Endorsement: Moderate fee for investors to transfer or change name on insurance policy from individual to their LLC to extend coverage
- Title Commitment: Identifies owner of property and prior existing liens
- Differences between American Land Title Association (ALTA) states vs. states with other insurance regulations could change or end coverage
- 50/50 Split: Lenders either don’t care about transferring title from individuals to their entity, or have an issue with it; depends on how the loan is structured
- Avoid do-it-yourself (DIY) approach to deed preparation; an attorney or someone specialized should handle it to prevent mistakes
- Two ways to title Series LLC: Deed it directly into name of series, or deed it to parent LLC with notation at bottom of deed
- When loaning money on real estate, get the right title insurance policy to protect your interest and have quality escrow company conduct data research
- Real estate investors should ask the right questions and use keywords to make sure title company understands particular model and transaction
Resources
American Land Title Association (ALTA)
Saturday May 25, 2019
Saturday May 25, 2019
People are often drawn to real estate after watching TV shows that focus on flipping houses to make money. Today, Toby Mathis of Anderson Business Advisors talks to Aaron Adams, CEO of Alpine Property Management and Alpine Capital Solutions. Also, Aaron’s working on writing another book, Tips Tricks Foreclosures & Flips: Secrets of a Millionaire Landlord.
Highlights/Topics:
- From Carleton Sheets to Robert Kiyosaki: Captivated by concept of real estate education
- Pieces of Property: Aaron has 3,000 single family homes in five markets, a handful of apartment buildings, six mobile home parks, and 20 Airbnbs
- Process of purchasing properties, inheriting tenants, and rehabbing/renovating
- Learn by doing and have a general understanding about construction to be in real estate;
- Rule of Thumb: For most construction jobs, a contractor’s costs for materials and labor should equal each other
- Active vs. Passive: Make no mistake, flipping is active income, but passive income can change your life
- Turnkey Investing Model: Buy properties that generate at least 7% net on rent
- Nation of Renters: 70% of Americans can’t afford to buy a home where they live
- Tool turned Crutch: Student loan debt has gone from millions to trillions; 300% increase
- Killing millennials’ ability to buy property; rents are going up, homeownership is falling
- Secret Sauce Ingredients: Follow light rail plans, focus on first-generation Hispanic neighborhoods, and find public/private partnerships
- Biggest mistake Aaron made was lack of financial control; he waited too long to hire an accountant/bookkeeper and trusted people who ended up stealing money from him
- Aaron’s Biggest Gamechanger: Don’t limit opportunities; disconnect your ego from staking a flag and saying, “This is what I do.”
- Investors typically buy houses via annuities, savings accounts, and retirement money
- Key to Real Estate: Follow the feds, builders, and trends; achieve education with action
Resources
Alpine Capital Solutions on Facebook
Carleton Sheets’ No Down Payment Infomercial
Rich Dad Poor Dad by Robert Kiyosaki
Average Americans can't afford a home in 70 percent of the country
Federal Housing Administration (FHA)
Wednesday May 22, 2019
Wednesday May 22, 2019
Like all things in this world, it helps to know a few of the rules. Toby Mathis and Jeff Webb of Anderson Advisors are here to help. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.
Highlights/Topics:
- What rate am I taxed at for my LLC? It depends; you choose how it will be taxed on SS-4
- Can I buy personal items or pay off personal bills with my business credit card? Yes, but the entity type dictates how it’s taxed
- What investment opportunities can be considered that have no tax liability, minimum risk, and at least a 10% annual return? Doesn’t exist; try investment real estate, IUL insurance
- Can I deduct real estate education expenses, even though I don’t have any profits? Yes, it’s not necessarily about profits, but how long you’ve been in the business
- Can my LLC create its own self-directed IRA? No, vice versa; self-directed IRA would create LLC, or it’s a prohibited transaction
- What constitutes being a real estate professional? 750 hours of professional time in real estate and material participation in real estate activities
- Do you have to be a real estate professional to do a cost segregation at tax time? No, but if you have losses in excess of your real estate income, then be a real estate professional to offset your other income and pay less in taxes
- If I were to have an online health coaching business where people can complete purchase transactions through an automated Website, how will the income produced be taxed? It’s not always ordinary income; depends on what you’re selling
- How old does a child have to be before putting the business in their name? 18 years old
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
Index Universal Life (IUL) Insurance
Uniform Gift to Minors Act (UGMA)
Form 5695 for Solar Tax Credit
Form 4562 - Depreciation and Amortization
Saturday May 18, 2019
Saturday May 18, 2019
Cryptocurrency? Sounds almost top secret or like something you've heard about on the dark web. Actually, cryptocurrency is a fascinating form of digital currency that seems to be sweeping the nation. Today, Clint Coons of Anderson Business Advisors talks to Steve Streetman, an avid cryptocurrency investor and real estate speaker, teacher, coach, and agent. Also, Steve is the president of Streetsmart Investments LLC, where he leads acquisition, property management, and business development. Steve has worked in cryptography and high-end computer modeling for more than 30 years. He has successfully acquired multiple commercial properties and is currently active in self-storage, student housing, and assisted living projects. Despite its negative stigma, Steve believes that cryptocurrency is here to stay - at least for a few more years. He shares how real estate and cryptocurrency can work together to make a positive impact.
Highlights/Topics:
- What is cryptocurrency? Online digital token; every transaction goes on a Blockchain (series of blocks of data chained together to view future and past transactions)
- Actual vs. Cryptocurrency: Buying power of dollar gets less every year, but cryptocurrency isn’t intentionally devalued
- Types of cryptocurrency, and where they get their value:
- Currency Token:
- Bitcoin: Gets value from supply and demand
- Trade Options (Troptions): Coins designed to be barter currency
- Security Token: Representation of value and ownership via:
- Initial Coin Offering (ICO), or
- Initial Public Offering (IPO)
- Currency Token:
- Ways to invest in cryptocurrency:
- Mining: Requires advanced computers to perform “hash” function faster; winner-takes-all approach to get your block done first to get cryptocurrency
- Buy land/property; cryptocurrency appreciation is taxable
- Get loan secured by your cryptocurrency to buy real estate
- Use cryptocurrency as collateral to avoid tax event; escrow companies hold it
- Companies may accept cryptocurrencies to make rental properties appear cool, updated, and modern to appeal to millennials
- Collect Rent: Give your digital wallet address to tenant; they send you the cryptocurrency
- Exchange Currency: Just like you trade dollars for euros, trade crypto for crypto or Fiat
- Real estate is low-hanging fruit for cryptocurrency to make substantial improvements
Contact Steve for more information, as well as to enter to win a free copy of his soon-to-be available book, Cryptocurrency and Real Estate.
Resources
RealInvestors Real Estate Services
Laws that Govern the Securities Industry
Wednesday May 15, 2019
Wednesday May 15, 2019
Mike Finocchiaro started his first company when he was 18 years old. But wishes he wouldn’t have waited so long. Today, Toby Mathis of Anderson Business Advisors talks to Mike about his journey into entrepreneurship. How much earlier could he have started? In the womb, rocking out with his mom? There’s no time like the present. If you have an idea that you believe in, start a company and grow it. You can make anything happen, if you’re willing to take the lumps that come with it. The only limitation is if you could take what it is to keep moving forward, you’re going to get to where you want to be.
Highlights/Topics:
- Come Together Entertainment: A “big” company doing Hollywood parties, started by an 18-year-old working out of a row home and saving cash
- Music is the heartbeat of Mike’s production company; leveraged his experience setting up shows, concerts, and festivals efficiently and quickly
- Rock and roll ride into corporate world to tap into latest and greatest
- Legalese and Liability: Mike Finn Productions rebranded Big Fin Productions; create entity that’s larger than yourself in every aspect
- Mike’s Mistakes: The name thing, don’t wait to get things started, think before reacting
- Santa’s Roadies Charity: Real meaning of Christmas is not about gifts, but giving
- Companies and their charities can change lives; non-profit process is pretty simple
- Going forward, follow your gut; know right from wrong, and make anything happen
Resources
From Traumatic Brain Injury To Nonprofit VICTORY!
Saturday May 11, 2019
Saturday May 11, 2019
Do you know about RAL? What it stands for? You probably should because you or a loved one may need it someday. Today, Clint Coons of Anderson Business Advisors welcomes Gene Guarino of Residential Assisted Living (RAL) Academy. It’s never too late to start an RAL business, which provides a tremendous service and peace of mind for residents and their families.
Highlights/Topics:
- When and how Gene got into real estate business; no money down, no credit, no clue
- What’s not RAL? Old-folks home, hospital, skilled nursing facility, nursing home, or independent living
- What is RAL? Single-family home converted to house seniors who receive 24x7 care; about 98% of them are moving into the last place they will ever live
- Conversion can include grab bars, smoke detectors, wider doors, and other changes
- Real estate investor can lease home to an operator as a long-term, low-impact tenant
- Location, Location, Location: Buy new vs. repurposing existing property into RAL
- Do good, and do well; protect assets and generate income
- Finding a home to buy for RAL is easy; find the tenant/operator first
- How much can you earn with RAL? Avg. $4,000 per month/person to live in home
- Potential Risks and Liabilities: Do you operate properly? Do it right, don’t get sued
- Professional Liability Insurance Policy for RAL costs less than $1 per day/resident
- Dispelling RAL Myths: Doesn’t need to be multifamily or commercial setting; residential and commercial financing is possible
- 3 things needed: Senior-safe house, standard operating procedures (SOPs), and qualified manager
- 3-legged Stool: Residents, caregivers/staff, and business
Resources
Residential Assisted Living Academy
Wednesday May 08, 2019
Wednesday May 08, 2019
Toby Mathis and Jeff Webb of Anderson Advisors strive to provide educational and accurate answers to your tax questions to prevent or minimize fees from piling up. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.
Highlights/Topics:
- If you sell a flip, can you put the gain into your residential mortgage and avoid the taxes? No, you take the gain to make principal payments that have no effect on taxation
- Is interest income from the performing notes considered ordinary income? Yes
- What is an opportunity zone? TCJA gives tax incentives and benefits to invest in economically disadvantaged areas in the country
- Can you deduct meals eaten at home while working from home? Technically, yes, if there’s a business purpose
- Will I be penalized for not making estimated tax payments quarterly? It depends, if you’re required to make estimated payments; penalties will be charged
- Personal property, if I transfer to an LLC, are there tax consequences? No, unless there’s a lot of debt against it
- Are premiums for long-term disability insurance deductible as a business expense in an LLC? Yes, they can be reimbursed, but they are limited to amount and C Corp
- What are the pros and cons of having a holding LLC? Not a huge tax impact on your bottom line, but can make it tough for others to take holding LLC from you
- What’s the best way to pay your child’s tuition, if you’re running a profitable business? Three code sections deal with tuition: 117A, 127, and 132D, but there are other options
- Are self-directed IRA fees tax-deductible? No, may prefer to have 401(k) over IRA
- Can I purchase and sell real estate without selling or dissolving the LLC? Yes
- Does a living trust provide liability protection? No, the purpose is to ease distribution of your estate upon your death; there’s instructions on who to give your belongings to
- How can I protect my house, if somebody slips and trips on my personal residence? There are ways to protect your house; some states have unlimited homestead exclusion
- If I fund my LLC checking account with funds from my self-directed IRA, do I earn income on the business or have to put profits back? There’s no benefit; goes back into IRA
- How can I write-off a car to an LLC or S Corp? Two choices: Actual expense or miles method, or company will own it
- Can I write-off income we pay our nanny from a business account? No, it’s a personal expense; will probably have to pay household employee taxes for nanny
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
Publication 505 (2019), Tax Withholding and Estimated Tax
Code Section 117A for Scholarships and Grants
Code Section 127 for Education Assistance Program
Code Section 132D for Working Condition Fringe Benefits
Rollover Business Startup (ROBS)
Wednesday May 01, 2019
Wednesday May 01, 2019
Most real estate investors want to use other people’s money (OPM). Why use their own, when they can use OPM to put into deals? Why risk your own money, when you can push it onto someone else? Find real estate investors willing to lend money, especially to flippers. Today, Clint Coons of Anderson Business Advisors talks about lending with Paul Jackson and Rick Morgan of Residential Capital Partners.
Highlights/Topics:
- Expertise, knowledge, and relationships with investors and banks allowed Rick and Paul to offer a lending service to make profits vs. doing the buying and flipping themselves
- Accounting is the language of business; dollars are going out and coming in
- Residential Capital Partners: Originated in 2009, during the downturn when banks sold bad assets and took in Troubled Asset Relief Program (TARP) money
- We Buy Ugly Houses: HomeVestors attract new franchisees and grow its business; Rick and Paul use franchise to underwrite debt acquisition of single-family distressed paper
- Millenials want to rent, instead of buy a place
- Problems for Property Flippers: Hard money lender puts deal together; shock sets in when money for rehab isn’t available
- Residential Capital Partners offer consistent delivery, clear communication, description of how money is priced and structured, and do what’s promised
- Keeping the cash in borrower’s pocket is key to staying healthy in fix-and-flip business
- Residential Capital Partners primarily do cosmetic types of rehab loans
- Residential Capital Partners’ Loan Process: Citizens profit, protect, and act as collateral
- Why do flippers fail? First rule of business: Whatever happens, live to fight another day
- Take this to Heart: Paul and Rick want people to be profitable and successful
Resources