Dr. Denis Waitley on the Psychology of Winning and the Pace of Change

Whether you’re an athlete, executive, entrepreneur … or investor … success is both an art and a science. 

Our guest today is a world-renowned expert on the psychology of winning. He has traveled the world sharing his principles of success … and we’re here to share them with YOU. 

See how the principles of success stay timeless in a world that is changing at an unprecedented pace … and how to put them to work in your investment strategy.

In this episode of The Real Estate Guys™ show, hear from:

  • Your winning host, Robert Helms
  • His psychotic co-host, Russell Gray
  • Legendary author, trainer, and mentor, Dr. Denis Waitley

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Stay positive and progress

There are a lot of voices out there shouting in your ear. Sometimes, you need a different perspective. 

After all, if you’re only listening to the same voices in your life … it’s hard to make progress. 

Today, we’re talking about the pace of change, lessons from traveling, the psychology of winning, and how you can stay positive in a negative news cycle. 

First, we’d like to say a word on the importance of perspective. 

Difficult times like these are why you have a tribe. It’s why you read history. It’s why you take quiet time when you aren’t flipping through your phone to contemplate your life and think about your future. 

As investors, we need to reflect on the lessons of the past and set our minds on making the most of the day that stands in front of us … because that’s all we can REALLY be sure of. 

That’s why during this crisis we have been trying to talk to people who are smarter than we are … it’s not difficult to do. 

We’ve got a great guest this week. He was first on the show 15 years ago … and he blew our minds!

Dr. Denis Waitley is a tremendous coach and personal development author, speaker, and trainer. He has worked with elite athletes, astronauts, and average folks like us. 

Take time to experience new perspectives

The psychology of winning is every bit as valid today as when Denis first started speaking … but it still takes time and conscious effort to learn. 

“Today’s generation is really in a hurry and interested in instant gratification, but if they would just take a little more time in self-awareness and investing the talent they have into stuff that lasts, they would see true success,” Denis says. 

Denis has traveled to more than 100 countries, and during those travels, he has seen commonalities across cultures for success … and gained new perspectives and ideas. 

For instance, Americans are enamored with the stock market. Only 30% of American wealth is held in real estate. But in China, that number rises to something like 75%. 

That demonstrates the different ways we view risk. One idea isn’t right or wrong … they just expose different ways of looking at the world. 

Keys to achievement

One of the things that Denis has done for a long time is help people from different backgrounds and various walks of life figure out the keys to achievement.

He has worked with Apollo astronauts, heads of state, Olympic gold medalists, and Fortune 500 top executives. 

What are things that folks who get things done have in common? And how can we cling to some of these ideas to live the best version of each of us?

“One thing that stands out is that these successful individuals aren’t afraid of risk,” Denis says. “They’re not afraid of appearing foolish in the eyes of others.”

People generally don’t like to be laughed at … unless we’re being a comedian … so we hesitate to do things that are unfamiliar. 

Successful people are willing to risk being foolish in the eyes of others in the name of jumping in and learning something new. 

They don’t wait for the perfect time. They just do it. 

“They think something, and they do it. They don’t put it on a to-do list that can be procrastinated until a deadline comes up,” Denis says. 

Be proactive instead of reactive. 

These individuals also often have a feeling of optimism … but that doesn’t mean you shoot for the moon and then only get halfway there. 

“I think they all believe that there is something inside of them that makes them special and able to achieve. They have a level of expectancy that is probably more realistic than most people because they feel it, train it, practice it, and obsess over it,” Denis says. 

And when they fail, successful people find another way. They don’t give up.

“They’re willing to make mistakes, and they treat failure as fertilizer. You don’t like it. It doesn’t smell good, but when you spread it onto future ground, it sure helps you grow,” Denis says. 

When people first start investing in real estate, they often think that their first deal is going to be a home run … and if they make a mistake, they don’t want to do it again. 

Instead, you’ve got to take the lesson and learn from it. 

Think about those elite athletes. They go out and find someone who is better than them … a coach and mentor. Investors should do the same!

Investing is more of a mindset … and the best investment you can possibly make is in yourself. 

Stair-step your way to success

If there’s one major takeaway for success that we’ve gleaned from Denis, it’s being resilient and not fearing failure. Instead, look at it as an opportunity to adapt. 

The world is changing right now. If you’re used to only playing the game one way … you may look around and think you can’t play the game anymore. 

But the reality is that this isn’t the first time the world has changed … and it won’t be the last. 

Find someone who has been through similar challenges before, and learn from them. 

You’ve got to stair-step your way to lasting success. You have to earn the mountain one step at a time. 

For more lessons from Dr. Denis Waitley … listen to our full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Dr. Denis Waitley on the Psychology of Winning and the Pace of Change

There’s both an art and science to success … whether you’re an athlete, investor, executive or entrepreneur. All must get the most from their potential while dealing with adversity and change.

Dr. Denis Waitley is a world-renowned expert on the psychology of winning. He’s traveled the world sharing his principles of success to large audiences, elite teams, and high-performance individuals.

In this episode, we explore timeless success principles and how they apply in a world that’s changing at an unprecedented pace.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


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Tax Changes Real Estate Investors Need to Know About

We’re back with one of our favorite people … CPA Tom Wheelwright!

Tom is here to share important updates on current and proposed changes to U.S. tax law as part of the war against COVID-19. 

We’re also discussing the details … and potential repercussions … of proposals currently being floated around during this controversial election year. 

There are changes that real estate investors like YOU need to know about. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your up-to-date host, Robert Helms
  • His taxing co-host, Russell Gray
  • CPA and tax expert, Tom Wheelwright

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Let’s talk about taxes

One of the biggest elements that affects cash flow and overall return of real estate investments is taxation. 

And yet … nobody really likes to talk about it. That needs to change! There’s lots you can do to reduce taxes and make more money. 

Our good friend, CPA Tom Wheelwright, always says, “If you study a nation’s tax code, you can see exactly the behavior they want, because they reward it.”

The tax code is a series of incentives. 

There’s so much going on right now in the world … and in an election year, a lot can happen. 

We don’t have a political argument to make of any kind … but when you start talking about tax policy and you have different parties with different opinions, politics are going to come up. 

We’re here to wrap our minds around some of the proposed tax changes that real estate investors must understand. 

New tax changes you should know about

Going all the way back to Obamacare, there was a tax impact for real estate. Then, the Trump administration came in and made the first major overhaul. 

It’s no secret that with a real estate guy in the White House … we got some very favorable breaks for real estate investors. 

Then, the COVID-19 crisis impacted the tax code. 

Basically, since 2008, the tax code has been a roller coaster. There have been extreme changes in public policy, public behavior, and financial markets. 

All of that means that as a real estate investor, you’ve got to be looking a little bit farther down the road. And, you need to be well-advised by a great tax professional. 

Tom Wheelwright is here to get that conversation started … but remember to sit down with your own tax advisor and get their expert views for your personal situation. 

There have been some really important changes recently for real estate investors. The most obvious one was the qualified improvement property change. 

This was in the Cares Act correcting a mistake in a 2017 act in which the government didn’t include leasehold improvements on commercial property as qualifying for bonus depreciation. 

The Cares Act now said that they do … and you can take advantage of that retroactively all the way back to 2018. You can amend your return, and there can be a lot of money in that. 

The Cares Act also said that if you had to reduce your hours … either business hours or working hours … because of the pandemic, you can pull out up to $100K from all your accounts put together. 

Then, you have two choices. You can either pay tax on that money over three years or you can put that money back in three years and not be taxed at all. 

“You could literally take money out, buy a property, take care of the property, sell the property, and put the money back. Or, you could keep the property and borrow against the property and put the money back,” Tom says. 

Tom adds that anybody who is a real estate investor and seriously doesn’t want their money tied up in their IRA or their 401K should really look into this and see if they qualify. 

The other big change involved the net operating loss carryback. 

In 2017, real estate investors lost the ability to carry back net operating losses. In 2020, we gain that ability … and we gain it for 2018, 2019, and 2020. 

And, now it’s a five-year carryback. We’re talking about going back to 2013, 2014, 2015 … years that were really good years for a lot of people. 

And let’s say you weren’t a real estate professional in those years and now you are … you’ve got bonus depreciation. You can carry back to when you weren’t a real estate professional to offset your income and get a refund. 

Tom says that this particular benefit isn’t popular in the House of Representatives … so you better look into it quickly if you’re interested. 

The other tax benefit that people don’t often talk about is the charitable deduction tax benefit. 

Typically, individuals can only deduct up to 60% of charitable contributions … in 2020, it’s a hundred percent. 

“If you want to give all your money away this year, the government says to go for it. They’ll give you a deduction for it,” Tom says. 

Tax changes that could be coming

The tax changes that real estate investors got under the Trump administration were favorable to a lot of folks. 

Now, with an election year, Joe Biden has come out with his own tax plan and ideas. 

“Biden’s tax plan is basically a tax everything tax plan,” Tom says. “Really, he would eviscerate the tax law if he had his choice, which leads me to personally wonder if he understands the tax law at all.” 

Tom says that, for example, all the real estate benefits would go away. It wouldn’t eliminate cost segregation, but it would eliminate bonus depreciation. 

Biden has also proposed eliminating 1031 exchanges, the basis step up when you die, and oil and gas tax benefits. 

But remember, President Obama also proposed eliminating a lot of these tax breaks. Just because they are proposed doesn’t mean they’ll get enacted. 

Either way, it’s important for real estate investors to be vigilant and stay tuned in. 

For more on tax changes and how they can affect you … listen in to the full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Podcast: Tax Changes Real Estate Investors Need to Know About

CPA Tom Wheelwright joins us with important updates on current and proposed changes to U.S. tax law as part of the war against COVID-19.

We also discuss the details and potential repercussions of proposals being floated in a controversial election year.

So tune in as we talk tax changes real estate investors need to know about with CPA Tom Wheelwright.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Preparing for the New Realities of Real Estate

We’re chatting with Ken McElroy … Robert Kiyosaki’s very own real estate guy … for a reality check of investing heading into a potential crisis unfolding before our eyes. 

The world is changing … and when it changes, your investment strategy should too. 

We’re all preparing for the new realities of real estate … and we’ve got ideas to share with YOU. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your unreal host, Robert Helms
  • His unprepared co-host, Russell Gray
  • Robert Kiyosaki’s Rich Dad Advisor for Real Estate, Ken McElroy

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Marching toward a new normal

So much is changing in the world, and that permeates into real estate. 

What is the new normal going to look like? And how can YOU prepare for what’s coming next?

We’re chatting with our good friend, Ken McElroy. He’s the Rich Dad advisor for real estate. 

When Kenny has something to say, we have ears to listen … because we’ve seen over the years that he has been right A LOT more than he has been wrong. 

Ken brings a couple of special talents and perspectives to the party … so to speak. 

One is his tactical experience. He has been in the game for a long time. He has ridden a lot of up and down market cycles, and he is a really down-to-earth, practical guy who can explain things in plain English. 

Kenny is a hands-on guy who runs a team of hands-on people … and he brings with him the big picture insight of his relationship with Robert Kiyosaki. 

Too many people in real estate get dogmatically focused on just real estate … THEIR market or THEIR niche. 

While you do want to know about the markets that you’re in, you also need to get your head out of the weeds and look up at the horizon. 

Ken’s core investing philosophy comes from being a property manager over the years, specializing in B class apartments. 

When he takes these properties on, they’re not in great financial shape … and sometimes not great physical shape either. They need some work to help increase rents and property value. 

Over the years, Kenny’s taught us a bunch of clever ways to increase your net operating income. 

Now, with the normal status quo of things on the fritz in so many ways when it comes to being a landlord … we thought it was definitely time to pick Ken’s brain. 

The effects of COVID-19

If you’ve been listening to us for a while, you probably know a bit of Ken’s background … property management and ownership of thousands of apartment units. 

There’s certainly a lot of concern over tenants losing their jobs, not being able to pay rent, and eviction moratoriums. 

“The truth is, this is part of management,” Ken says. “Management is really easy when tenants are coming in and rents are going up, but when hard times hit is when your true skill and technique gets exposed.”

Right now, Ken says his company has about 8,000 tenants … so when COVID-19 shutdowns happened in March, it hit them pretty hard. 

No one wants to experience a downturn … but it’s part of the game. When downturns happen, you hope that you planned accordingly in the good times to be able to withstand. 

Ken says that about 80% off his tenants were able to continue to make payments. 

Then, about 15% of tenants anticipated having issues paying rent, communicated those issues and were put onto a promise to pay (PTP) program as a way of working with property management. 

The remaining 5% or so were people who didn’t communicate and assumed with what they were hearing from the news that they just didn’t have to pay. 

“We are really trying to work with people. The last thing we want to do is boot anybody out and ruin their credit. The people that are working with us and communicating we know are good people, and so we are doing all we can,” Ken says. 

Moving from renters to property owners, about 5 million people are having trouble with their mortgages. 

Ken says we haven’t even begun to see the potential effects of the virus on this sector … because people with homes are going to fight to stay in them for as long as they can. 

Depending on how long all of this drags on, it could be quite some time before we can visualize the real impact. 

Strategies for the future

Back in 2008 or 2009, we spoke with Ken about how he was strategically trying to pick markets that were B class and geographically near jobs that couldn’t be moved. 

Has his strategic plan changed for when we come out of this height of the pandemic bubble and start to look for opportunities?

“I haven’t seen any statistics yet for 2020, but the patterns of population migration have been very interesting to watch over the last several years. That will definitely play a part,” Ken says. 

If you look at a location like New York City, for example, from many standpoints … housing listing, reduction in pricing, employment … it looks like this area is going to get hit pretty hard. 

We were already seeing pre-pandemic that listings in New York City were down about 57%. People are leaving and going to other places like Florida where they can spend less for more space. 

In general, many people are leaving the city to move further out of town to smaller communities. That may be a big opportunity for the future. 

With remote work, many tenants will no longer be held down to these employment centers and will have the luxury to choose where they want to live. 

So, as we go through and find opportunities after the virus, how do investors make sure they keep their heads on straight?

You have to be practical and realistic about what’s happening. But at the same time, there is going to be a ton of potential for redevelopment. 

Ken predicts that many regional malls and small shopping centers aren’t going to make it … and there will be a lot of single-family homes on the market a year from now. 

That will drive prices down … and push us into a renter economy.

For more on how you can prepare for the new normal in real estate … listen to the full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


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Inflation, Deflation, Depression or Dollar Crisis

The COVID-19 pandemic means the economy has slowed down … way down in some cases. 

So, central banks led by the Fed are conjuring TRILLIONS of fresh dollars out of thin air. And Uncle Sam is making sure they get into circulation. 

The question on many investors’ minds is, “WHAT IS GOING TO HAPPEN?” 

Will prices rise or fall? Can the economy grow if it’s locked down? Or are we headed into depression?

And of course, one of the biggest questions of all … will the world trust a dollar being diluted by the trillions on a monthly basis?

In this episode of The Real Estate Guys™ show, hear from:

  • Your inflated host, Robert Helms
  • His depressing co-host, Russell Gray
  • PhD economist and best-selling author, Richard Duncan

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Looking at the bigger economic picture

All investments float in the economic sea. If you only look at real estate … instead of taking a step back to look at the bigger economic picture … you may run into trouble. 

The situation we find ourselves in today with COVID-19 is different than other economic situations we have faced in the past … 2008 included. 

This health crisis has manifested in a global economic lockdown. Instead of a credit crisis coming first and leading to job losses, we have job losses right out of the gate in a bigger fashion than we’ve ever seen in our lifetime. 

And not just in the United States … around the world. 

So, it makes a lot of sense for us to talk to someone today that looks at the world from the understanding of credit markets on a global level and how all of those things play together. 

Richard Duncan is a PhD economist and author. He was an advisor to the International Monetary Fund (IMF), and he really sees a much bigger picture than the average investor. 

Whether you agree with the opinions he shares today or not, Richard is qualified to have an opinion. 

If you concentrate hard on listening to what he has to say, processing the data, and understanding his logic, you might gain some great insights and actionable intelligence. 

If nothing else, you may learn to anticipate the potential consequences that can come when the people behind the financial curtain start pulling on their levers. 

Recession or depression?

“The thing that is going to determine whether this is just a recession or a full-fledged 1930-style depression is going to be the speed and magnitude of the government’s fiscal and monetary policy response,” Richard says. 

COVID-19 has put the economy into a complete freefall, but Richard says that we have been really fortunate in the U.S. because the government acted quickly. 

The government has come to through with almost $3 trillion of fiscal rescue bills with more money potentially on the way. 

Meanwhile, the Fed has radically expanded the amount of money that is created. In 2020, the Fed has created $2.75 trillion in new money. 

Basically, the government is spending money to replace all the money that’s not being spent by households and businesses … they’re holding the economy together. 

“If the government spends enough and the Fed continues to print enough, there’s no reason that we have to collapse into a protracted, decade-long depression the way we did in the 1930s,” Richard says. 

But, it’s going to be absolutely crucial that the government keeps spending. 

If they do, Richard thinks that the economy will survive and come out of this crisis looking very similar to the way it looked before COVID-19. 

But if not, then the U.S. could be headed for a depression-style economic catastrophe that could extend far into the future. 

That’s why it is absolutely essential, in many economists’ view, that the government continue propping up the economy and holding the economy together the way that it has so far. 

But what happens when, say, $10 trillion more works its way into the economy?

Looking back at 2008, we see that the expansion of government debt and the expansion of the Fed’s money printing didn’t cause inflation at the consumer price level. 

It DID cause inflation at the asset price level, but that was part of the plan. They needed to push up asset prices to create a wealth effect, boost consumption, and keep the economy growing because the private sector was weak. 

So, looking ahead based on that experience, Richard says it is by no means certain that we are going to move into a period of significant inflation at the consumer price level. 

Although he adds, we may see property prices go higher and stock prices go higher as a result of the new money and the government spending. 

All of this remains true as long as globalization remains intact. 

For example, before the outbreak of the virus, tensions with China were already strained. Now things are … even more so. 

In the U.S., we have realized that we don’t have the manufacturing in place to manufacture medical supplies that we need. So, a certain amount of manufacturing has been brought back during the pandemic. 

That’s a good thing … but it’s hard to tell to what extent that localization is going to be reversed. If globalization breaks down entirely, Richard says there is a chance that America will move back to a period of high inflation rates. 

The future of the dollar

Moving forward in terms of the dollar, Richard says that there really is no alternative to the dollar standard. 

“The reason the dollar is the global reserve currency above all else is because the U.S. has such a large trade deficit,” Richard says. 

For instance, in recent years China’s trade surplus with the United States has been more than $1 billion every day. 

That means that China sells its goods in the United States. It gets paid in dollars. It takes those dollars back to China … and it has a few choices. 

“It can burn them. It can bury them under the Great Wall, or it can buy dollar-denominated assets with them like treasury bonds,” Richard says. 

So, as long as China wants to keep selling things to the U.S. and have that surplus, it’s going to have to take those dollars and invest them either in government bonds or something riskier. 

That’s not going to change. There’s nothing they can do about it as long as they want to keep selling things in the United States … and their economy depends on it. 

For more on Richard’s thoughts about the world economy and where things are headed … listen to the full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


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Podcast: Preparing for the New Realities of Real Estate

Robert Kiyosaki’s real estate guy Ken McElroy joins us for a reality check of investing heading into an unfolding crisis.

When the world changes, your investing strategy should change too. Listen in and learn how Ken McElroy is preparing for the new realities of real estate.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Recent Updates Unlock Retirement Account Profit Potential

Tax rules are always changing … but they’re a great signal to show where policymakers want individuals like YOU to invest your money. 

With the economy struggling under the weight of COVID-19, it’s no surprise that tax rules are being tweaked. 

Today we’re looking at how retirement accounts are being unleashed … and how you can get in on the action as a real estate investor. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your tireless host, Robert Helms
  • His exhausting co-host, Russell Gray
  • Regular contributor and retirement account investing expert, Damion Lupo

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Using your retirement account now

There are lots of different ways to invest in real estate. One of the most underutilized … and often misunderstood … resources are retirement accounts. 

So, how can you take that money and invest in real estate and other hard assets?

When many people get hired, they set up a retirement plan, and they forget about it. But you can … and need … to take control off your account. 

If you’re still working for your company, you likely can’t do much about your account besides monitor it and pay into it. 

But, when you have an opportunity to turn that account into a self-directed account, you can make magic happen. 

What’s great about retirement funds is that they can be invested in all kinds of things … you’ll want to talk to your tax professional about the rules and the options available to you. 

Different money is treated differently … it’s taxed different ways, and we behave differently around money that we have saved and put away like retirement accounts. 

We think it is good for individual investors AND for society, in general, to get the money in retirement accounts freed up so you can invest directly in main street instead of relying on Wall Street. 

Whether you are a hands-on investor or a hands-off investor, we’ve got a lot to share with you. 

Understanding how the retirement game is played

Damion Lupo has been involved in many of our events … but he is here today to take us all back to square one. 

Before you can put your retirement account to work, you need to understand what it is and how the game is played. 

“The mission that I have now is breaking financial shackles, and most of it’s done with retirement accounts and breaking people out of the Wall Street jail,” Damion says. 

The Wall Street machine means people hope they are going to wake up in 40 years and maybe they’ll be rich. But there are other alternatives. 

When people leave a job … whether it’s the government with the TSP or a 401K at an employer … they typically roll that account into an IRA and invest in stock or mutual funds. The alternative is a self-directed account.

A self-directed account allows you to be able to direct your money and be in the driver’s seat instead of being in the trunk hoping it works out. 

There are different options in the self-directed realm. The most extreme form of control is an EQRP, and another really good option is a self-directed IRA. 

The biggest difference between the two is that for an IRA you must appoint a custodian … someone else that you have to go through to direct your money. 

An EQRP allows you to be a trustee on your own account, which is the equivalent of the custodian in the self-directed IRA. 

When we talk about controlling and being the trustee of your account … many people hear something that sounds like work. 

Maybe it’s a little work to get it set up … but then, the investments that you make can be as hands off as you want. Retirement accounts are generally set up for passive investing. 

Another important thing to understand is “Roth.” When we say Roth, we mean the after tax money. 

If you have a Roth account … whether it is a Roth IRA, Roth 401K, or Roth EQRP … you pay tax before the money goes into your retirement. When you pull the money out, it’s zero tax. 

And we always say that one of the most important parts of your investment philosophy is your team. That definitely applies in this situation. 

A custodian or an EQRP company can help you make sure you stay in compliance with IRS laws as you put your retirement to work now. 

What type of account is right for you?

What type of account is right for you? Damion says that deciding starts by figuring out your big picture. What do you want to do?

If you want to invest in mutual funds, a self-directed IRA is a great place to start. If you are interested in doing things like real estate, there are considerations to be made. 

A big issue right now is something called unrelated business income tax … UBIT tax. 

When somebody makes a net profit in a real estate deal and there’s debt, there is up to a 37% tax because of the UBIT.  

The reasoning behind it is that your retirement funds aren’t intended for you right now. 

So, if you use your retirement funds to partner with a loan and go buy a property, sell it, and make a lot of money … part of that return was from the dollars in your retirement account.

Those dollars aren’t taxed, but a big part of the return was from leveraged dollars that aren’t part of the retirement account. That means a big tax is due. 

It’s fairly logical, but people hate it. 

The alternative is being in a different part of the tax code. If you have an EQRP, there’s an exemption for UBIT. 

If you’re already invested in an IRA, it’s fairly easy to switch to an EQRP. 

For more information on unlocking the profit potential in your retirement account … listen to the full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


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Podcast: Inflation, Deflation, Recession, Depression or Dollar Crisis?

While a lockdown stops the economy and slows everything down … putting downward pressure on prices … central banks led by the Fed are conjuring TRILLIONS of fresh dollars out of thin air. And Uncle Sam is making sure they get into circulation.

Will prices rise or fall? Can an economy grow when it’s locked down … or will it recede perhaps even into a dismal depression?

And how long will the world trust a dollar that’s being diluted by the trillions on a monthly basis?

Tune in and find out when we talk all this and more with PhD economist and best-selling author Richard Duncan.


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

Increase Cash Flow Using Powerful Tax Breaks

There’s no such thing as a perfect investment … but real estate sure comes close!

But with any investment … you have to be smart. One important aspect of smart real estate is taking advantage of powerful tax breaks. 

We’re diving deep into one of the best tax benefits that real estate offers to investors like YOU … cost segregation. 

In this episode of The Real Estate Guys™ show, hear from:

  • Your appreciated host, Robert Helms
  • His depreciating co-host, Russell Gray
  • Cost segregation authority, Erik Oliver

Listen


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Increase cash flow and reduce taxes

You can make a lot of money in real estate … but you can also pay a lot of taxes. 

Today, we’re going to show you how you can increase cash flow and reduce taxes with investment real estate. 

Beyond monthly cash flow from a real estate property, you can also make money as your property appreciates over time. 

That equity is locked into the property until you do something about it … like refinancing or selling. 

You also have the benefit of amortizing a loan. Every month when you make your mortgage payment, part of it goes to pay interest while the other part pays down the principal. Each time you pay down the principal, you own more of the property.

But the way to make money we are focusing on today is … tax benefits!

CPA Tom Wheelwright has taught us that if you want to know what a nation wants its citizens to do with their invested capital … just look at the tax code.

The tax code is a series of incentives … and these incentives will benefit your bottom line and enhance your cash flow.

The tax code can be especially helpful in those early years of purchasing a property when there is a lot of expense … above and beyond what you get over the life of the property. 

We should remind you that we’re not tax advisors or professionals. We give ideas and information. We’ll be sharing a lot today … but sit down with your tax professional before you make any major decisions. 

Make sure you have a tax professional that truly understands this niche … preferably one who owns investment property themselves or whose practice serves a large percentage of real estate investors.

And … don’t let the tax tail wag the investment dog. 

You don’t want to invest in something just because of a tax benefit. Instead, find a great market, a great property, a great niche. 

Then, you’re going to seek to exploit the tax law legally in your favor to the best degree you can. 

Today, we’re going to talk about a tax benefit that most multifamily and seasoned long-term developers and investors know about … but many smaller investors haven’t discovered yet. 

What is cost segregation?

Erik Oliver is an authority on cost segregation. 

Depreciation accounts for a loss of worth in your asset. Some things depreciate, while others don’t. 

Land doesn’t wear out … so it isn’t depreciable. But gutters do … so they are. 

“Cost segregation is simply accelerated depreciation,” Erik says. Many people get into real estate in order to take advantage of the depreciation loss. 

“We depreciate our real estate over either 27.5 years for residential properties or 39 years for commercial properties,” Erik says. 

Cost segregation means that you accelerate that timeline instead of taking 1/39 of your depreciation each year. 

It starts by identifying the different components of your building and segregating out those components into shorter asset lives. 

For example, the IRS allows you to depreciate carpet over five years. Instead of having to lump that together with your 39-year asset cost, cost segregation comes in and puts a value to that carpet, allowing you to depreciate it over a much shorter time frame. 

Accelerating the depreciation means more tax benefits, sooner. 

Let’s put some numbers to it for a simple example. 

If you own a $270K duplex, you’ll get to write off $10K every year against your income for the next 27.5 years without doing cost segregation. 

If you were to do cost segregation on that duplex, the analysts will identify roughly around 30 percent of that $270K and categorize it into 5, 7, or 15 year property. 

Depending on when you bought the property and what the laws were at that time, you may be able to write off all of that 5, 7, and 15 year property in year one. 

That’s over $70K that can be written off in the first year instead of $10K. 

What does an analysis look like?

Cost segregation is a process generally done in conjunction with an engineering firm and accounting firms. 

In order to complete a cost segregation study, you’ve got to have construction engineers that can go in and reverse engineer these buildings, so to speak. 

You also have to have someone with tax knowledge to take that information and make it work for you. 

Many CPA firms will partner with an engineering firm to offer this service to their clients. 

The IRS has actually put out an audit guide that most cost segregation companies follow. It’s 13 steps and requires a site visit. 

“Typically, we’ll send one of our construction engineers out to the property for them to do an inspection,” Erik says. “They’re looking for things like retaining walls outside, drainage in the parking lot, what type of flooring and window coverings are used, etc.”

The resulting reports are pretty detailed … usually about 40 to 60 pages long. They basically line item every component of the building. 

“We do go over everything from flooring to cabinets to countertops. We’ll even go out and count the trees and bushes,” Erik says. 

Cost segregation studies can cost anywhere from $7K to $15K. Erik says he recommends you get an estimated cost for a study for any property over $200K. 

“Sometimes, depending on a number of variables, it may not make sense to do a cost segregation, but you should always look into it in case it does make sense,” Erik says. 

Most cost segregation companies will do a free benefit analysis to make sure that you are going to get significant tax savings from completing the study. 

For more on cost segregation … listen to the full episode!


More From The Real Estate Guys™…

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

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