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Sept. 18, 2023 - Fresh & Fit

01:55:03

Top 7 Ways To Not Pay Taxes This Year w/ CPA!

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	Thank you.
	Thank you.
	And we are live.
	What's up, guys?
	It's Money Monday.
	We're here with Steve, man.
	We got to talk about the top seven ways to get your taxes deducted.
	Let's get into it.
	Let's go.
	What's up, guys?
	Welcome to the Fresh Fit Podcast, man.
	It is Money Monday, and we got Steve in the house from Seeing Beyond the Numbers, a.k.a.
	our accountant.
	Quick enough, we're against the show.
	Number one, guys.
	Rumble.com slash Fresh and Fit.
	As you guys know, if we ever get canceled, y'all know exactly where to find us.
	Rumble is home base.
	But right now, we're multi-streaming to all the platforms.
	YouTube, Rumble, Twitch, Twitter, Facebook.
	We're everywhere right now because this is absolutely a very important episode.
	We're going to be covering the seven ways to lower your tax liability, guys.
	This is huge because it's coming in pretty much...
	We're getting into, what, fourth quarter of the year?
	Yeah, we're getting close to tax planning season for most of my clients.
	Typically, we'll look back...
	You know, since January till now, see where they are, see what kind of moves they gotta make.
	Nice.
	So, you know, this is some stuff that you guys can, you know, take away and, you know, potentially go to your accountant.
	Maybe it'll make you find a new accountant or whatever, but we're gonna go into seven ways to lower your tax liability, man.
	This is probably gonna be one of the most important episodes we've done in a very long time, especially when it comes to finances because, guys, at the end of the day, man, You've got to understand how the tax code works and how to put yourself in a position where you're saving money on taxes.
	Because a lot of you guys overpay on taxes.
	There's a money game being played here, guys.
	And if you're not part of the game, you can't win.
	So, you know the system, then you're going to win.
	Yeah.
	So, if you guys got questions, we are going to have a Q&A at the end of this.
	It's FNFSuperChat.com, as you guys can see there.
	FNFSuperChat.com.
	And that is the Super Chat button, basically, for you guys to go ahead, jump in there, ask questions.
	You got an accountant.
	In the house.
	Actually, matter of fact, Steve, can you give them your credentials a little bit real quick and introduce yourself?
	Absolutely.
	So I'm Steve from accounting, and these are my clients here.
	And I've been practicing CPAs since, what, going on three decades now.
	I have a couple of practice locations here in Florida.
	And I mainly deal with small business owners such as yourself and high net worth individuals such as you guys.
	And just a whole slew of different types of industries.
	We've been doing that for, like I said, about three decades.
	And Steve, correction.
	Almost 30 years experience.
	You said clients.
	Happy clients.
	By the way, before any big purchase, I call Steve, get approved, and I get a write-off.
	So thank you, Steve, for that.
	You're welcome.
	For real.
	And kind of what makes me a little bit different from everybody else, at least I think so, is I'm also a serial entrepreneur.
	So I've had my own businesses start them out.
	So I exactly know what owners go through as hiring employees, trying to launch businesses, doing business startups and stuff like that, investing.
	I did a lot of real estate investing, had a medical practice for many years, sold that to a national company, and a host of other businesses that I've been involved with too as well.
	Right.
	So I look at it from a strategic standpoint as when a client comes to me.
	I love entrepreneurs and startups because that's kind of what my wheelhouse is.
	Yeah, and he's able to, you're able to better empathize with your clients too, because as an entrepreneur in different realms, like I know when me and you talk real estate, you've done real estate before.
	So you have experience to be like, okay, no, actually we can write this off.
	We can, you know, oh, this tenant didn't pay rent this month.
	We can actually write.
	So it's really good to have an accountant that is also an entrepreneur and involved in a lot of the same endeavors that many of your clients are in.
	Amen.
	You know, a lot of times too, when you could, you know, sometimes Some CPAs can get lost in the weeds and get too theoretical.
	And sometimes you got to step back from that and say, you know, and look at things from a different angle or a different lens.
	And sometimes you'll have a different perspective that I can really give to a client, you know, that's a lot of value.
	Sometimes I could give in certain situations.
	Yeah.
	So, yeah, guys, I'm excited for this one.
	So I'll hit some of these chats real quick, and then we'll start the countdown.
	I see that you guys already have sent some Rumble Rants in.
	So as you guys know, we got demonetized or whatever, but hey, it is what it is.
	We're still here, guys.
	If you guys want to Super Chat into the show and ask a question, like I said before, we're going to do the Q&A at the end.
	And then Rumble Rants as well, if you have a question.
	So let's see here.
	What do we have?
	Bills.
	Okay.
	Do employers get any...
	You know, we can answer these real fast.
	Okay.
	Do employers get any benefits by making an employee a 1099 versus a W-2 employee thinking about making a switch?
	I sell toilets for a living making 180K a year and just got my first rental property.
	Absolutely.
	So what I would say to that is definitely if a contractor or an employee came to me and said, hey, can you pay me as a 1099?
	That would be my preference because I save...
	I save on the employment tax, basically.
	Because for every employee that I hire, I have to kick in almost 8% in payroll taxes.
	And so does that employee.
	So by doing it that way, I would definitely say, yeah, definitely.
	Most employers would want to do that.
	that.
	Now, the only thing that you have to kind of, the caveat here is when you are approaching to be a contracted employee, you have to watch out because there's an issue of control that the IRS, there's specific rules that the IRS uses as far as like, do you set your own schedule or do there's specific rules that the IRS uses as far as like, do you set So it comes down to control.
	So sometimes in most cases, you probably could be treated as an independent contractor, but you have to kind of be careful that you don't make sure that they don't control your schedule Like, hey, this is what time you got to show up.
	This is what time you're going to leave.
	This is what you're going to do.
	It comes down to because you're not truly independent in that sense.
	Got it.
	That's the only thing I would say on that.
	Who's up next?
	Living Reality Fresh, if a man has his S together in the U.S., does he really need to be a passport, bro?
	Also, is there a right way and wrong way to do it?
	Can you guys make an episode about this?
	Yeah, it's preference, bro, because I think for a guy, once you make your money, you can understand what you want to do for your dating experience.
	But, again, traveling for girls, I think, personally, it's not necessary.
	But if you want to do it, you can.
	And, you know, I mean, it's your preference, bro.
	Honestly.
	But I would say, have game here, so no matter where you go, actually getting girls is not a problem.
	You know?
	That way you don't get finessed.
	Shout out Steve, CEO of Network Web, and that's from Brett.
	Shout out to Brett, man.
	Shout out to Brett.
	He does my reels.
	He's awesome.
	Oh, nice.
	Okay.
	Shout out to Brett, man.
	Jordan Welch just opened up about quitting weed helping him 10x his income.
	I know Steph and AD quit this year also and both agree weed slows you down.
	Can't make this up, Myron L drugs.
	I've been telling y'all, man, that it's really not worth it.
	Who's up next?
	Decent Bonfire.
	So I'm assuming you're saying high rental P&L, and now like meaning that you're making a lot of profit on the income tax return, in which case the IRS is never gonna be sad about that.
	The more income you put on there, they're going to basically love to tax you on that.
	So no, that is not a red flag.
	Should I list my separate S-Corp as a second member of the rental LLC so it can...
	DM me on that one.
	I gotta know a little bit more specifics about that.
	Or chat in again with your...
	I'll give it to you for free.
	I'll look it up for you.
	I want to give you a very good answer, so I'll collect some more information from you.
	That's fair.
	Send him some more info so that he knows what you're talking about.
	But it's Money Monday, man.
	So we're going to go over seven ways, guys, to lower your tax liability.
	I see here that there's a different array of types, whether you're involved in real estate, you're a business owner, you're just a regular person, and you might just want to bring down your tax liability.
	And we're going to count down from seven to one.
	So the first one I see here, Steve, that you got is the 1031 Exchange Exchange.
	For real estate.
	Can we go over that a little bit?
	Absolutely.
	So this is a huge one.
	And again, the reason why I have this as number seven on the list is because your listeners, I know not everybody's involved with real estate, but maybe a lot of them want to be.
	So this kind of goes to those that want to be involved in real estate or maybe they are involved with real estate.
	So if you have a property and you want to sell that property, You have to face the capital gains tax.
	So what Congress did, and this is an interesting one.
	Can you tell them real quick what a capital gains tax is?
	Okay, yes.
	So if I buy a property for $100,000 and three years from now I go and sell it because it appreciates in value, I sell it for $300,000, I have hypothetically a $200,000 capital gain.
	So I'll have to pay tax on that.
	Since I held it for more than a year, it's gonna be around 20%.
	So I'd have to expect to pay about 60 grand, or excuse me, 40 grand for that $200,000 gain.
	So what I can do, and what Congress did, and you gotta remember, Congress passed this Many years ago.
	Because real estate is a huge part of the economy.
	They understand this.
	The guys that are making these laws, they own real estate themselves.
	They don't want to shoot themselves in the foot.
	So they have multi-million dollar properties that they want to sell.
	And they want the economy of real estate, because it's such a huge part of the economy, to keep moving.
	And they want buyers and sellers to be in the market to stimulate the market.
	So by stifling Owners that want to sell their property from hitting them with high capital gains tax, they understand that that's going to stifle the market.
	People will wind up holding onto these properties and not selling them and doing other things that they shouldn't be doing.
	They're not true arm's length transactions.
	So they put the 1031 exchange.
	What that means is basically a like-kind exchange.
	There used to be a time when you could do this to businesses and other different types of assets, but now they just limited it to real estate because it's such a big part of the segment of the economy.
	So a light kind of exchange means that you could take a property, like the ones that you're buying now.
	Let's say one of those properties, you just want to unload it.
	You're having problems with it.
	Maybe there's problem with tenants.
	Maybe there's something coming in the neighborhood.
	Or you see something else you want to purchase.
	You could liquidate that property, sell it.
	As long as you go and take the money, the proceeds for that, and you invest it into another property that's of equal or greater value, you could defer the entire tax on that and not pay anything on it.
	All you have to do is contact an intermediary, typically a lawyer that handles those types of transactions, identify that property, say, hey, I'm gonna sell this property on 8th Avenue, I'm gonna buy this property on 11th Avenue, this one I'm selling for 400,000, The one I'm buying is $500,000, so it's greater value.
	So, hence, I'm not going to pay any tax on that property.
	I'm going to purchase this property.
	You go to your lawyer.
	He fills out the paperwork.
	Now, there's a couple of things on this one which, you know, sometimes you don't have that opportunity to get that replacement property.
	And then you also have the time limit on it.
	You have 45 days in which to identify three replacement properties that qualify.
	And then you have 180 days in which to close on that new one.
	And then the thing is, that money has to go into escrow, sit there until you close on the other one.
	Can you explain to the people what an escrow account is?
	So escrow is basically when you go into your attorney, so the proceeds, when you sell your property, that money doesn't go into your bank account, it goes into the attorney's bank account.
	He has an escrow account that's bonded, of course.
	And it sits there until you get ready to close on your new property, and then the money comes out of there.
	Keeps things honest in the real estate game, guys.
	The money doesn't ever come to you, actually.
	It always goes to a middleman, almost, that holds the money on both parties so that it can ensure it goes where it's supposed to go.
	You don't rip people off, etc.
	Yeah, perfect, perfect.
	Yeah, and it's a paper trail, too, for the IRS. So these are handled in a very specific way.
	A lot of times, you know, you got to be careful with that because you don't want, you know, sometimes people are pressured because they don't want to pay the taxes and then they're kind of locking themselves into buying a property that maybe they're not really in love with and they don't want to, you know, want to buy.
	So sometimes, you know, in those cases, I've had clients who are like, I can't find anything because it's been a very competitive market recently.
	It has been.
	So can they file an extension if 180 days passes?
	There's a few things that you can do in case, yeah, you know, it's a little bit beyond the scope of this podcast here, but there's some things that you can get an extension when extenuating circumstances happen.
	Okay.
	Yeah.
	And I'll tell you guys this from being a buyer.
	There's been plenty of times where I was buying a home from somebody and they were in a 1031 exchange situation.
	And they're pretty pushy with getting the deal closed because they have a certain amount of time to make it happen.
	It works in your favor.
	Yeah, so it works in my favor because it's good to deal with those kinds of sellers because they're motivated, they want to get rid of it, and they want to be able to get that money and move it over to another property.
	But I didn't know that it's 180 days.
	Because I never sell guys, so I haven't utilized the 1031 exchange.
	But I have been on the other side where the seller is...
	It has a 1031 exchange, and they're motivated to sell.
	They wanted to get the deal closed, etc.
	So it's good to deal with them if you're a buyer.
	I mean, to be real, this is made easier for BlackRock to buy properties.
	I mean, for BlackRock.
	Yeah, a lot of companies, yeah.
	They literally just buy a home, and then they sell, and then they're just like, oh, okay, well, I'm going to go ahead and sell it now.
	And then they take that money, and they just go buy something else.
	So I think the big thing here is that they can't buy a house that's less, right?
	You can.
	And when that happens, because as a matter of fact, I just had a client recently that this happened to.
	And when that happens, let's say, like I said in that example, you sell a $400,000 property and then you buy a property that's only $350,000.
	So now you have $50,000.
	That's called boot, basically.
	So you just pay the capital gains tax on that little $50,000.
	Okay.
	What if you tried to buy maybe two homes?
	And then you can double it up, definitely.
	Okay, so you can utilize a 1031 to buy two properties.
	Yeah, so let's say 200 to $200,000 properties.
	Okay.
	Equal 400, that qualifies as well.
	Okay.
	Nice.
	Bam.
	All right, so there you go, guys.
	Now y'all see why I love real estate so much, man.
	I don't personally sell, so this isn't my wheelhouse, but...
	And I think this is how a lot of Fix and Flippers as well keep their money, right?
	This is one of the big secrets of Fix and Flippers because they buy the house for a certain amount of money, they sell it, and then they do a 1031 exchange to make sure that whatever they make, they don't necessarily have to give to the government because for them, they want to do it again and again and again.
	I was kind of like that.
	I was a little bit opposite of you because I see you see long term in these properties and you're going to get the price appreciation.
	Tell the people what you did.
	So what I did, I was a flipper.
	I was basically, and I took advantage of a time, it was in the early 2000s, like 2003 to like 2006.
	Before the market crashed.
	Before the market crashed.
	I sold my last property and it was dumb luck.
	I did not have a crystal ball.
	I wasn't smarter than anybody.
	I just got lucky.
	I sold my last property in 2006, before everything crashed.
	Wow.
	It was dumb luck.
	You didn't see it coming?
	I did a little bit because clients were coming to me.
	Back then, I think I said this story before.
	I was having clients come to me, and I was doing loan origination, but these underwriters, all they wanted were W-2s.
	So you could get up to, I want to say, like seven loans back then for seven properties and have like...
	For nothing.
	I mean, it was like these no-doc loans and it was like...
	Holy crap.
	Yeah, it was crazy.
	I heard if you just breathed, they'll give you a loan.
	That was kind of like the running joke for a long time.
	As long as you have a pulse, you can get a million dollars from the bank.
	So you basically, so you use that to your advantage.
	You would buy homes.
	Can you explain the fixing and flipping process real quick for the audience, how that works?
	Yeah, so I would see a property that was kind of maybe not in the best condition and I could put a certain amount of money in it.
	So let's say I buy a property and typically my It was like $300,000, $400,000 properties, nothing more than that, where I could put maybe $50,000 to $60,000 into it, and then the market was kind of just going up and up and up.
	It was not a normal market, and I would try to flip that within like three to, not more than six months, hold it, for not more than six months, and then I would just flip that over into another property.
	I didn't do the 1031 exchange, so I just paid the capital gains tax on it because The price appreciation and what I put in to the properties, it was going up so fast that I could flip a property and make $100,000, $150,000 within a couple months, 90 to 180 days, and just keep doing that.
	So I didn't want to get into the rental deal because...
	I don't know.
	I just, for some reason, maybe I should have, maybe I should have kept a couple of those properties for that purpose, but I didn't.
	And I kind of lost out on it, but I just saw the money there.
	I was like, okay, okay, I'm going to, you know, and I put very little money down on the deal, you know, maybe put 20% down and then walk away.
	Like, you know, so I'm putting $100,000 down or $150,000 and walk away with $300,000.
	For me, back then, at that time, that was like, Big win.
	It was great money.
	Yeah, I mean, yeah, that's significantly more money.
	I mean, what, this is almost 20 years ago now, so that money can easily be worth, I would say, like 50% more.
	Right.
	And I was a CPA at another firm.
	So I was doing this on the side.
	Oh, okay, okay.
	So I was like, yeah.
	So you were probably making more money on the side with this than...
	Oh yeah, yeah, and that's how I got into the medical practice.
	I invested into that, and then I started my own.
	So I had enough to do my own thing and feel safe that I had enough of a cushion there.
	Yeah, so you took your earned income from being a CPA, and you, I tell you guys this all the time, it's one of the best ways to segue into entrepreneurship.
	Have a real job, a higher income skill, Make that money, take that money, invest it into another endeavor that makes you even more money, which you did with flipping, and then you were eventually able to segue that into creating your own business and then leaving that firm.
	Yeah.
	I mean, it was hard, and I knew.
	I mean, I was working long hours, but I knew the payoff was going to be there.
	Nice.
	Bam.
	So you were doing the BRRRR method, which is buy, rehab, and...
	Were you refinancing, too, or no?
	No, I never got that complicated where I would just buy them.
	You don't even need a refi.
	You just sell it.
	I had real estate agents that would give me pocket lists and say, hey, this property's coming up.
	This person's going to maybe list it.
	Are you interested in talking to them?
	They knew that after you did a couple of deals with a certain real estate agent, they would bring these pocket deals to you because they knew you had a higher chance.
	That's the insider info, man.
	Once you get that plug, you have to go.
	Because they know you're a serious buyer.
	They're a serious buyer.
	You're not going to You know, kick tires and waste their time.
	You're going to come in and you're going to know exactly what you're doing because you've done it before and they could come to the table and close.
	Because in Florida, I mean, no deal is a deal until you get to the closing table.
	Everybody knows that.
	Absolutely.
	All bets are off until you get there and you get your check and you leave.
	All right.
	So that was number seven, guys.
	So 1031 exchange, guys, which summarized basically you have a home, you sell it, and the proceeds that you get from that sale, you're able to go ahead and reinvest into another home of equal or greater value, and you don't pay taxes on that sale that you made on that home.
	And that allows you to kind of just...
	Leapfrog into the next home without paying taxes.
	Matter of fact, Donald Trump utilized this a lot, guys.
	A lot of you guys wonder, well, how do the wealthy stay wealthy for generations?
	1031 Exchange is a huge way they do it, guys.
	And they're able to pass property on to family members.
	They're able to sell property and then move on and pick up another one without necessarily paying taxes.
	And the 1031 Exchange is a huge part of that, man.
	And he's not the only one.
	I mean, all these guys in Congress that are passing these laws, they don't want these provisions to sunset because they have a lot of substantial wealth in real estate, and they're going to shoot themselves in the foot.
	They're not going to do that.
	So, yeah, so there you go.
	So I guess we'll go on to number six now.
	The sixth way, guys, and again, today's episode is the top seven ways to lower your tax liability.
	We have another real estate one here, guys, which this one is a bit more advanced, and I utilize this quite a bit.
	But if you know how to use it correctly, this is going to be huge.
	It is called cost segregation, guys, okay?
	Steve, take it away.
	Huge.
	So basically, cost segregation.
	So when you buy a property, let's say it's a rental real estate property, I buy a property for $400,000, and what most CPAs or tax professionals might do is just depreciate that property over 27 and a half years.
	Let's make it easy math.
	Let's say it's 30 years, right?
	That's a long time.
	So you're only taking 1 30th of that $400,000 and taking that as an expense.
	Can you explain to them real quick what depreciation is?
	Because a lot of people get confused about it.
	They're like, what is depreciation?
	How does this help me on my taxes?
	I don't understand it.
	So basically the IRS has a method of assigning a useful life to everything that you buy, every asset that you buy that's tangible and even intangible stuff too as well.
	They assign it a useful life.
	So for instance, this table would be five years.
	This equipment could be seven years.
	Computer equipment is typically five years.
	A car, five years.
	Well, they say a house is 27 and a half years, right?
	The problem is not everything in the house that you buy is going to last 27 and a half years.
	For instance, the carpet, the appliances, sometimes the windows, the roof has got to be replaced every maybe 10 years.
	So what you do is you take that property and instead of just giving it all $400,000 and dividing it by 27 and a half years and taking that little amount of depreciation, you take that and you break it up.
	So let's say I break it up and for simple math purposes, I break it up into $400,000 component pieces.
	I segregate it into 400.
	So 100, 100, 100, and 100.
	I got 400,000.
	And I assign maybe five years to 100,000 components.
	Seven years to another 100,000, and 15 years to the other 100,000, and then 27 to other 100,000.
	You can see in that scenario, I'm accelerating my depreciation.
	So my total amount of depreciation is going to be much greater than just keeping it at the 27 and a half years.
	So you can get a huge deduction.
	And that's what we did with your properties as well.
	We broke those properties up and we did it to yours too as well.
	It's called a cost segregation study.
	So you go through and you kind of pick out the component pieces of the property that you can depreciate quicker.
	Yeah.
	So what it allows you guys to do is, like, basically you're able to more aggressively write off parts of the home that are non-structural.
	Okay, guys?
	So, like, for example, you redo the kitchen, right?
	Appliances, you know, carpet, like you said, roofs, whatever it may be.
	Paint, all this stuff.
	Like, anything that you do in the house or anything that you...
	Additions or fixes that you make to the house, you can depreciate that at a more aggressive rate.
	Because instead of doing 27 and a half years for the home, now you can do it over a period of five years, right?
	So now you can go ahead and aggressively write something off so you can get more tax benefits and savings for the year.
	And keep in mind that you can do this in addition to the 27 and a half year write-off for regular depreciation of the home.
	So, sorry, you were going to say something?
	No, I think for most people, they don't look at it as an option, but if you have a CPA, go to them and say, hey, I want to get into this because most people don't know about it.
	Yeah, this is a much more advanced technique that allows you to basically kind of double dip.
	So not only are you able to go ahead and get the tax deduction through the depreciation over the 27 and a half years for a residential property, Now you're able to more aggressively deduct things in the house that are non-structural that are required, right?
	Maybe you redo the bathroom, you redo the kitchen, stove, new microwave, refrigerator, you replace the cupboards, you update the garage, whatever.
	You're able to more aggressively write off all that stuff.
	So let's say you spent $100,000 renovating the house.
	You can go ahead and depreciate that over five years.
	What would that be?
	And you could do it all up front.
	You could still do it all up front in one year, right?
	Yeah, not the whole amount.
	There's gonna be a certain cap limit on how much you can take in the first year.
	What, is it 20% or something?
	Well, it's, oh my goodness.
	I gotta look it up right now.
	It might be 20%.
	I think it's, no, it's 40%.
	I'm sorry, it's 40%.
	40%.
	Let's say someone spends $100,000 on fixing up the house non-structural.
	That allows them to deduct an extra, what, like 20K? Yeah, but again, that rehab, depending on what you're putting in there, there's certain things, component pieces are going to be assigned different lives.
	Depreciation rates, yeah.
	But to keep it simple, roughly...
	Yeah, you can estimate on it, too.
	But there's firms that actually make a living just on providing cost segregation studies because people buy multi-million dollars, for instance, this building here, and they're depreciating it.
	So someone comes in with a notepad and paper, guys.
	They get very specific.
	Yeah, they literally go ahead and look through the property and they write all the stuff that they could write off, etc.
	And then you get someone to professionally do this, it can literally save you.
	You spend a couple thousand dollars to hire this guy to come in and do this, it could save you tens of thousands, depending on how big the building is, it could save you tens of thousands, maybe even millions of dollars.
	Yeah, absolutely.
	I mean, think about all these Amazon hubs.
	They're going through and they're getting the...
	The screws and the bolts and little tiny component pieces like that.
	They have people that basically they'll hire a firm that they pay thousands and thousands of dollars to put these studies together.
	Because your average person is going to remodel their home at some point.
	Either the bathroom, the kitchen, and it's like they don't know they can actually benefit from tax savings by doing this.
	Here's the other crazy thing.
	So when I pick up my houses, right?
	As you guys know, I buy a lot of houses that are turnkey, which turnkey means it's basically ready to go.
	It's pretty much been rehabbed 95%.
	Maybe there's tenants in it already, so it's ready to go, right?
	And a lot of times, the person had just rehabbed the house before they sell it to me.
	I'm able to go ahead and cross-segregate their fixes.
	Damn!
	Because they're showing you the receipts, and sometimes they'll keep like, hey, look what I did to their property, and they're showing you the receipts, basically.
	So they show me what they did to fix it, and I have that information, and I'm able to use that and write it off.
	So that's why some people might say, Myron, why do you buy turnkeys, man?
	Why don't you just buy a house and fix it yourself?
	Well, because I'm able to get the tax benefits of that turnkey, because pretty much the rehabbers I buy from tell me how much it costs them to fix the house, And I pretty much, I'm able to get on that savings.
	So question, if the previous owner did that already, can you do it for yourself?
	Yeah, because it's a new purchase to him.
	Okay, wow.
	I even know that.
	Because that's the ultimate cost to him, yeah.
	That's why I'm okay with buying.
	That's one of the benefits of Turnkeys, guys.
	And it also builds a rapport with the person, because I bought a couple of rehabbed houses from the same people.
	Yeah.
	And I tell them, listen guys, look, I'm not going to be mad at you because if you made me overpay, just tell me how much y'all spent on fixing the house, right?
	So I can get that savings.
	Even though they sell it to me at a price, I don't care.
	I'll do it for the convenience and I'm able to write off so everybody wins.
	I'd almost ask for it.
	Hey, man, what'd you do with the property?
	Yeah, I do it after I close, though.
	Pro tip, guys, you do it after you close the deal.
	Because they ain't going to tell you before the deal.
	Before it's done.
	But once you build trust or whatever, and you close the deal with them, hey, how much did it cost you roughly to fix it?
	And, you know, obviously it's going to cost them a fraction of what they sold it to you for, so they can make a profit.
	But I don't even get mad at it.
	I'm just like, okay, cool.
	And then I'm able to go ahead and get those savings.
	W. Yeah.
	So, pro tip for y'all.
	That's good.
	Anything else with the cost seg before we go on to...
	No, that's pretty good.
	Yeah, I mean, I would definitely, you know, guys, look that up.
	There's a lot of stuff on, I think, YouTube on there where you can get, you know, basically a little bit breakdown and get a little bit more of a understanding of what it is.
	There's some really good videos on there.
	Yeah, but these are, we're just giving y'all the, you know, a quick summary of what it is without going into detail, but we're going over, obviously, a bunch of different ways to save...
	I think you should write these down, go to your CPA, and see if they can do it for you.
	Yeah.
	You know, it's funny.
	There's a lot of CPA firms that don't even get involved with this stuff at all.
	I mean, that's why there's actual firms that just specialize in doing this.
	The biggest battle to me is finding someone that actually can follow your, I want to say, goals.
	And for most people, they don't have someone that actually wants to do what they want to do.
	For example, real estate or get into business.
	They just do a simple turbo tax or extra block, and then, oh yeah, it's finished.
	But there's way more things you can do to save money.
	Especially if you're an entrepreneur, man.
	You're doing yourself a big disservice if you're doing the taxes yourself or whatever.
	Okay, so I can hit chats real quick and then we're going to go into number five.
	This one is going to, I think pretty much everyone can utilize this next one that we're going to go into.
	Buki goes, speaking of finance, I contact the Brandon High Ticket Trainer team and want to join, but I'm a 10K in debt.
	Should I take a loan for the mentorship program?
	Or get a second job and pay that amount that way.
	It depends on you, bro.
	There's so many different factors that go into that.
	But it really depends on you.
	Because if you're motivated, you can make that money back quickly if you're motivated and you're going to actually do the work.
	So it depends on you.
	Antoine goes, would y'all agree that last Friday's show had the lowest IQ panel in FNF history?
	Nah, we've had worse.
	Yeah, it was pretty bad though.
	The Businessman, always a great valuable stream when Steve is on.
	Speaking the language of business, I'll always tune in, my friend.
	Thank you, Businessman.
	We got here, Darius goes, let's go.
	Let's go!
	Oh God, my ears.
	Don Pino goes, really appreciate what you guys do on Money Mondays.
	I just started Arturo Side Hustle, which is car rentals with only two cars.
	That would be the easiest way to get a business loan to build out fleet.
	Ooh.
	Okay?
	Oh, this is going to tie into the next one.
	Yeah, you need to listen up for the next one.
	Al Marino goes, I own a construction company, event space, both LLC, S Corp, and very soon about to get into real estate investing.
	Would it be smart to create a holding company to put all those under for tax purposes?
	Yes, that is what I do.
	I have a holding company out of Delaware.
	I was telling y'all about that.
	And then all my LLCs are underneath that.
	Smart.
	Let's see here.
	60 Minute Man, this is the best podcast by far.
	You guys got me into politics with that debate.
	Okay.
	Thanks, 60 Minute Man.
	Am Images, would funding my business with my W-2 income for the first year be a good idea?
	Then use a business credit card for those everyday purchases, even if you're not providing a service slash goods commodity?
	Yeah, absolutely.
	I mean, you're going to answer that one?
	Yeah.
	Yeah, yeah, yeah.
	Absolutely, bro.
	That's what I did.
	That's how you segue.
	You fund your business with your regular job and then use a business credit card.
	And then, yeah.
	Like, in the beginning, you're going to have to fund your business, guys, with your real job.
	And then once that business gets off the ground, you're able to go ahead and use the proceeds from that job and reinvest it right back into the business while your earned income from your main job allows you to live and you can continue.
	And you can slowly start to Cut off how much you invest from your real income.
	That is way better than getting a loan.
	I always try to avoid getting into debt at all costs.
	You don't even have to.
	Life happens, man.
	You just don't know what can happen.
	You want to keep your overhead as low as possible in the beginning.
	This is why I like online service-based businesses because your overhead is low.
	But yes, guys, the best way to get into entrepreneurship is actually through having a job first.
	Taking that money and investing it into your business because you're going to be able to kind of accelerate your growth and your progress from the beginning.
	I'll give you all an example.
	If I didn't have a job, I wouldn't have been able to invest into good equipment, good cameras and good sound equipment from the beginning.
	We would have had to use BS, maybe Blue Yeti mics, maybe only one camera.
	So that would have slowed down the acceleration and growth of the pod because I wouldn't have been able to invest as aggressively from the beginning.
	But when you have that capital, you're able to invest aggressively from the beginning, get that good equipment in, and then Accelerate that process.
	So it really comes down to you and how hard you're willing to work.
	That's why I said, yo, there is no option for failure.
	And also you can pay your bills because you've got to still pay your bills at the end of the day.
	You've got to eat for your family.
	So yeah, man, definitely.
	That's why I waited a bit, saved some money, and then I put that into the business and I started off on a strong footing.
	And then boom, you start off right and right.
	Kano goes, what requirements do you need to meet in order to claim property depreciation on a rental property?
	What requirements?
	There's really no requirements at all.
	Own it.
	Yeah, you just own it.
	Yeah, you just start taking depreciation.
	If it's commercial, I think it's over 39 and a half years, and if it's residential, 27 and a half, right?
	Yeah.
	If someone's renting, can they claim anything at all?
	No.
	No.
	Okay.
	Would you say that again?
	Is someone renting a property?
	Oh, the actual tenants?
	Yeah.
	Can you claim anything for taxes?
	No.
	Yeah, yeah.
	Got it.
	Sneeko!
	Zerka has a boxing match against Prime hosted by Aiden Ross at Boxer Gym.
	Will you be watching FNF? I don't know about it.
	I didn't even know about that.
	I mean, I'll be at a gym anyway, but...
	Okay.
	Rider of the Storm goes, Salute, gentlemen.
	Welcome back, Fresh.
	You were missed on the podcast.
	Great topic, guys.
	I appreciate that, Rider of the Storm.
	And then we got Man of Stripe.
	Hey, Steve, I have a house in Maryland fully paid, but I live in Virginia.
	I'm getting LLC for my rental.
	Should the LLC be in Maryland annual fee 300 or where I live in Virginia annual fee 50?
	I went to the LLC where it is, where the property is located, to be honest with you.
	Since the activity is going to automatically trigger a filing probably in Maryland, I don't know what the filing requirement is for that particular one, but just keep it there, yeah.
	Okay.
	Cool.
	All right, so- Number five.
	We're on to number five now, guys.
	And again, this is the top seven ways to lower your tax liability.
	Section 179 and bonus depreciation.
	What is that?
	So section 179 is an expense deduction basically for business owners that buy equipment.
	So you can buy up to close like a $1.2 million worth of equipment, and you can write that off 100% in the first year.
	So it's a huge deduction.
	So this is getting back into the tax planning stuff.
	So a lot of my clients get down to this area and they project forward to see what their profitability is going to be and maybe potentially what their tax bill is going to be.
	And maybe they got some money built up in their cash and they want to go out and buy a vehicle or something like that, trade up.
	Or trade in some of their business vehicles.
	So a lot of times we'll do that at this time of year or maybe they want to buy some equipment.
	Maybe they need some equipment.
	For instance, for some of my medical practices, they buy medical equipment that's pretty expensive.
	And then if they're in a position to do that, rather than pay a big tax bill, they can get their taxes way down and we can write the whole thing off.
	So, I mean, the only stipulation on that is you got to use the property for 50% more for business use.
	And it's qualified as a small business, so you can't purchase more than $4 million worth of equipment to qualify for the Section 179.
	Okay.
	And then the bonus deduction- So up to 1.2, but- Yeah, you could write off $1.2 million worth of equipment, a small business can.
	Okay.
	Yeah.
	But you said not to exceed four.
	So, if a company goes and buys $5 million worth of equipment, they don't qualify for Section 179.
	They've got to keep that spending cap under $4 million.
	And it's only for the year, right?
	And then you can restart next year.
	It goes from year to year, yeah.
	You can do it every year, as long as you're buying new equipment.
	And it goes for new and used equipment as well.
	So, it doesn't have to be new equipment.
	And, you know, again, for the Turo guy, so this is a good one for you when you list your car in there.
	I'm not sure.
	It could be an older car or whatever, but you want to get a new car.
	And I know you're getting into that where we could talk about that maybe tomorrow on the show as far as Section 179 for renting out your cars.
	You're not using Turo, are you, to do that?
	No.
	I'm using my boy's company, but I mean for the most part, I think like even with Toro though, like you have all those options too.
	Yeah, you do.
	Yeah.
	Yeah.
	For the luxury cars too.
	Yeah.
	I think for anyone who wants to get into rental business, Toro's the way to go because they take the pressure of insurance.
	They handle all the extremities, all the connections.
	You just pretty much join the platform, they get a cut and you bring your cars.
	Yeah.
	It's a good way to make a little side hustle.
	Yeah.
	Yeah.
	Most definitely.
	So, purchasing a vehicle and putting it on Turo can count as purchasing equipment?
	Yeah, because they're going to treat you as an independent contractor and you're renting it out, so it's equipment and then you can write it off.
	So, yeah, definitely.
	It's a way to go.
	So, you write off all the payments for the car, upkeep of the car, anything that, I guess, with maintaining?
	Well, the maintenance on the car, too, yeah.
	So, definitely, you're going to write that stuff off.
	But the Section 179 just pertains to the purchase price of the vehicle.
	Is this the same section that allows people to purchase a vehicle that's 6,000 pounds or above?
	Yes, section 179.
	This is the same section?
	Yes, because for vehicles, in order for them to take the section 179 expense deduction, they have to weigh 6,000 pounds or more.
	And it used to be 100%, but it was 80%, right?
	Total cost of the vehicle?
	Used to be 100%.
	Yeah, so now they're...
	What they're doing now, yeah, so starting in 2023, it's 80%, and then now it's getting down...
	Next year it'll be 60%, 40%, 20% until it's...
	Yeah, it used to be you could write off 100% of the vehicle, but then they did away with that a bit.
	Now they're kind of tapering it down, yeah.
	Is it too much W's for you, man?
	It's why I need Trump back in office, man.
	Yeah.
	Biden's dumbass making it.
	He's very pro-business and very pro-real estate.
	I mean, there's a couple of things that were coming after, which we'll get...
	We'll talk about that tomorrow, too, on the...
	There's a real estate one that they kind of put the quash on.
	We'll talk about that too, about the Dirty Dozen stuff that's coming up.
	Okay, so Section 179 is basically writing off equipment.
	That could count for cars or whatever.
	But let's say you have a vehicle that doesn't match the 6,000 pounds.
	You could still write it off because it's a part of...
	Yeah, because there's going to be a limitation, so you're just going to depreciate it, typically over five years.
	But you can take the bonus depreciation on it, which is, you can get bonus depreciation on that.
	Even if it's under 6,000 pounds?
	Yeah, so if it's a five-, seven-, and 15-year asset, there's bonus depreciation you can apply to it.
	So in lieu of doing the section 1789, because it's not 6,000 pounds, then we could throw the bonus depreciation on it.
	Okay.
	So there's two ways.
	Okay, so that's the two ways that you can kind of deal with vehicles.
	If it's 6,000 pounds, go the Section 179 route.
	Yeah, most definitely.
	That's the best way.
	That's the best way.
	Because you can do up to 80%.
	But, let's say it's a car, it's a sedan, right?
	And you want to use it on Turo or something like that, or using it for business.
	But it doesn't match the 6,000 pounds.
	You can depreciate it over a more, I guess, over a shorter period of time, which gives you more savings.
	Now, the careful thing I advise my clients to is...
	You've got to be careful when you list a car, and it's very rare that I, you know, unless it's being exclusively used for business, that I list it for 100%, because there's always going to be some personal use on there.
	The IRS will fight you back on that stuff.
	So you want to figure out how much you're using it for business, what percentage, or is it 75, is it 80?
	What's the magic ratio that will keep you from getting audited?
	Well, there's no magic ratio.
	As long as you can support it and say, you know, I mean, typically it's mileage logs.
	They'll do, you know, so you say, okay, this is the 100%.
	You know, I drove 30,000 miles this year and 20,000 of that was, you know, for business.
	So then you can take the ratio of that and that's the percentage that you listed for.
	So you got to be careful with that one too sometimes because they know that's kind of like, you know, you can't, every car, you know, if you had three or four cars, not all of them are going to be 100%.
	And there's always going to be personal use.
	So as long as you're putting some personal use in there, be reasonable, you know what I mean?
	And someone's going to ask the question, what is better, to lease or finance for the best tax write-offs, you would say?
	That's a great question, and it all depends on what the purpose of that car was.
	And I think we did a show on that where I said, okay, there's four scenarios where you've got a mid-price car, you've got a luxury car, and are you going to keep it?
	I forgot what show that was, and it was a good...
	I think I did the whiteboard on that thing, where I really break that down pretty good.
	So if you guys are listening to this...
	Money Mondays.
	It was a Money Mondays.
	Stephen McCartney.
	And that's when I was talking about segregation, and I also talked about the leasing.
	That was a good one I did on there.
	So it gives you the scenarios of when to decide whether to lease or buy.
	Because I mentioned on the show as well, what I would do personally, if I had a business, I would lease, just because that payment would go towards...
	Right, it's 100%.
	If you're using it for business, you could write that off.
	But in some cases, it might make more sense, because like we said, with Section 179, you don't want to lease.
	And with yours, they turn those into capital leases, meaning that you put it on the balance sheet as an asset, and you depreciate it.
	Because you have like, I think it's like a dollar lease buyout at the end?
	Yeah, pretty much.
	Which is nothing.
	Yeah.
	So this smart guy, that guy that, you know, does those, because it's a big purpose.
	What's a dollar lease buyout?
	So basically, I can buy the car out and keep the car for a dollar.
	So, as long as there's some monetary exchange to make that, they do like a $1 lease buyout at the end of the lease term.
	So, essentially, he's really buying it.
	Okay.
	It's like a lease.
	When you lease a car, you just rent it, and then you give it back.
	And then you can say, you can buy it, but you've got to pay all the upfront depreciation.
	However, for me, if I want to keep the car, let's pay a dollar and keep the car.
	Correct.
	So, I'm basically paying for the car and leasing at the same time.
	Okay.
	So I got both benefits out of this contract.
	You're renting to own.
	Basically.
	Correct.
	It's like renting to own.
	Yeah.
	That's a good way to put it.
	And then, um, okay.
	Oh, fresh, you lease your cars!
	I'm actually gonna buy it when I finish, if I keep it.
	Okay.
	But if I don't want to, I just give it to you.
	Give it back and then...
	So it allows you to kind of, I guess, kind of change your mind at the end?
	Yeah.
	Can you, like, make this change?
	Like, let's say originally you just wanted to lease it and then you're like, you know, I like this car.
	I want to keep it longer.
	Can you make that decision in the middle of you?
	I can buy it out any time that I want to.
	Or I can sell it and just make profits or lose some money if I want to.
	Okay.
	So I have flexibility with this current contract.
	Okay.
	Yeah.
	Okay.
	And it seems to me, if you're buying a car that's under 6,000 pounds, or if you're procuring a car that's under 6,000 pounds, that's where you get into the lease or buy.
	But if the car's over 6,000 pounds, it seems to me like you might as well just buy it.
	To utilize 179.
	Yeah, to do the section 179, yeah, correct.
	To actually get that 80% right off.
	Yeah, and it's all going to depend on the business usage of that vehicle and what you can substantiate, and yeah, definitely, and that's the vehicle that you want.
	And you're going to, it's got a good, you know, business purpose use, then definitely I would.
	Question.
	Okay.
	If we use that as a example where he buys a car and gets the deduction, 80% of the total value of the car, can you still write off the payments for financing the car?
	You're double dipping in that case.
	Got it.
	Yeah.
	So you can do the interest if there's interest, you know, there's an interest rate because you're financing it.
	So you deduct the interest on the loan, but you can't, you can't, you're double dipping, yeah, because the depreciation represents the purchase price and then the principal payment of the loan represents the purchase price, so that's double dipping.
	Damn.
	That would be sweet if you could, though.
	Yeah.
	Okay.
	So you've got to kind of pick one.
	But it seems to me there's different routes you can go.
	It seems to me if the car is 6,000 pounds or above, you're probably better off going the purchase option, and you're using it for business, so you can get 80% of the price of the vehicle.
	Yeah, most people that do the 6,000 pounds and above, because that was really put in place for industrial stuff that they knew- For trucks.
	Yeah.
	That they knew, like, this is not going to really, really purpose business, personal dump trucks and stuff like that.
	Yeah.
	So that's kind of why.
	So that's always going to be buy it.
	You know what I mean?
	Buy it and write it off.
	You buy Rangeovers, you buy Rolls-Royce Cullinans because of the weight, shoe wagons.
	Yeah.
	Yeah, they snuck those in there.
	Somebody, you know, these big car companies, they say, hey, as long as we make it 6,000 pounds, you know, they got away with it.
	Gotcha.
	Okay.
	Now we are to number four.
	Okay.
	Yeah.
	401k Roth versus traditional W-2 and business solo.
	So, again, what are the top ten?
	And the reason why I put this one at number four a little bit higher than the other one is because it pertains to both W-2 wage earners, which, again, a lot of your audience can benefit from this, and also for business owners.
	So, for instance, if you're working a job and you're Employer offers a 401k, and let's say they do a 3% match, I would say, hey, put in 3% of your wages, dollar for dollar.
	Don't go above that, but do the actual 3% because you're getting 100% return on your money right off the bat.
	So that's a no-brainer.
	So if you have that opportunity, take advantage of it.
	Don't do 1%.
	Try to do the 3% if you can basically budget yourself properly.
	And just take advantage of that.
	So that's why I like that one.
	But for business owners, I like the solo 401k.
	Now the reason why I did Roth versus traditional, the theory is...
	Can you explain what a Roth is versus a traditional and what a 401k is in general?
	Because a lot of the audience might be young and not understand what this even is.
	So for retirement savings, basically, and not everybody's a big proponent of retirement savings, I know.
	Everybody says, take your money, be in charge of it, invest it in your own assets.
	But not everybody wants to invest in their own assets.
	Not everybody's going to be a real estate owner.
	Not everybody's going to be a business owner.
	Some people have a good job, a good career, and they can see their future in that, and they're going to make a lot of money, and they just want to put money away.
	So if that's the case, I would definitely take advantage of the IRAs.
	But The Roth versus the traditional.
	The Roth means that today you put the money away and I don't get a tax deduction for it right now.
	When I go to pull the money out, I get the tax deduction for it.
	The traditional, basically, I get the tax deduction now for it and I let it grow tax-free.
	And then when I go to pull it out of retirement age, then I'm going to get taxed on it.
	Some people like the Roth because they're thinking that they're going to be in a higher tax bracket down the line, and they're going to get whacked with taxes, and they like the idea that, yeah, I could take the money out and not get taxed on it.
	I say this, and this is just me.
	This is not financial advice.
	You can do what you want to do.
	This is just my opinion.
	I like taking a tax deduction now today, because it's the sure thing.
	And the reason why I say that is because there are a lot of things that they could take off the table later on.
	Look at Social Security.
	I don't know if it's gonna be around in 10 years.
	And here I am working since I was 14 years old, putting it into the system.
	And I don't even know if I'm going to collect.
	So who's to say down, you know, the Roth IRA that they're going to change some rule down the line saying, you know what?
	All right, we're not going to give you, you know, a full tax.
	You're going to get taxed on 20% or something.
	You know, so that's just me personally.
	So you're going to go with the Roth?
	Yeah, no.
	Sorry, 401k?
	For me personally, I would do the 401k.
	Get the tax deduction now today.
	So in other words, like I was saying to you, you got a business, like put the $66,000 away, get the tax deduction now, today.
	Who knows what they're gonna do?
	Like, that's so far from now, I don't even know if social security is gonna be around, you know what I mean?
	These guys, yeah.
	Yeah, whatever you contribute, because I remember this being in the government, you had the option of Roth.
	So with the government, it was called the Thrift Savings Plan, right, which is basically their version of the 401k.
	They match up to 5% of whatever you put in, you would have a traditional and you could set up a Roth.
	I think you could put up to, before I left, around $18,500 per year in there, and then that would offset your income so that you would be in a lower tax bracket.
	So let's say you made $100,000 per year, and you put away, to make things simple, $20,000 into your Into your IRA, traditional IRA. Now they would only tax you as making about $80,000 a year versus $100,000.
	Even though you grossed $100,000, you put $20,000 away in that savings account.
	So what they do is they're like, okay, we're going to reward you for putting money into your 401k, so we're going to go ahead and tax you as if you only make $80,000 even though we know you made $100,000.
	Correct.
	So that's the benefit of what he means when he says getting that tax benefit up front with a traditional account versus an IRA. Sorry, with a Roth.
	You don't get that tax benefit.
	Correct.
	So as a business owner, you could do a solo 401k, but you could set up that solo 401k as a Roth and not get a tax deduction for it or set it up as a traditional and get the tax deduction for it today.
	So whereas if you're a W-2 employee and you're going to participate in the company's 401k plan, such as yourself, you're going to get, your income's going to be lower because you're putting that money away and not being taxed on it.
	So I would only go up to the match of whatever your company's offering and not put in more than that.
	If you get a Roth, can you pull that money out to get a property like 401k?
	So that's a great question because that's why I like the 401k structure because you can go in and you can still have access to that money and borrow against it as long as you pay it back.
	You're fine.
	Over a certain amount of time but then you're paying interest on it but you're paying yourself interest back.
	So you become your own bank basically.
	And there's scenarios where you can take the money out too.
	Like let's say you're going to be a first time home buyer and not get penalized on it.
	Yeah, I remember when I was working for the government, you could borrow against your TSP to buy a home that you were going to live in.
	You couldn't do it as an investor, but you could use it to buy a home that you were going to live in.
	But you have to pay yourself back and stuff like that.
	It was typically frowned upon to borrow against your TSP, but a lot of people do it.
	Because what ends up happening is you throttle the money that you're making because when you pull money out, well, you're messing with the compound interest.
	Correct.
	That's where you kind of go into...
	It depends on your strategy for success because ultimately I want the money now because I know what I'm going to invest in versus waiting because I feel like later on I might not know what I want to do.
	I'm assuming I know what the future is going to hold versus now, real estate.
	If you're smart about it and you know how to invest properly, then you're good.
	But most, let's be honest here, most government employees, most W2 employees, they're not entrepreneurs.
	They don't understand investing in asset classes, etc.
	So they don't know how to assess the deal properly, whatever.
	And I'm telling you guys, this is a former government employee.
	I didn't know any of this stuff until I learned.
	And once I learned, I was like, oh, okay.
	But most government employees don't know this crap.
	It's like you're leaving your success and your future up to someone else.
	That's why I look at it.
	Yeah, because they just want to set it and forget it.
	They just want to contribute to their TSP and just chill.
	Which isn't bad, by the way.
	Which is most people.
	But if you know what you're doing, you can absolutely get a way higher ROI on investing that money into the correct property.
	My thing is for me, retirement is going to be real estate.
	That's my go-to for retirement.
	That's typically what most people wind up building up as their biggest asset in lifetime.
	Yeah.
	And insurance.
	What else?
	Okay, so yeah, 401k.
	You want to do some of the super chats real quick?
	Because they've been pulling up.
	Yeah, yeah.
	We'll hit these and then we'll go back into the top three for y'all.
	And we've got Hunter.
	Good evening from Vermont, Myron Refresh.
	What have...
	What have been some of your biggest learning experiences in running a business?
	Also, what is your favorite part of being an entrepreneur?
	Thanks, Hunter.
	So he wants to know our biggest learning experiences running a business and then favorite part of being an entrepreneur.
	You work a lot more as an entrepreneur than as a regular employee.
	You start to realize that everything you do kind of centers around your business and there's no real turning it off and like, I'm taking a break.
	It's like, no, everything you do is typically centered towards your business to a degree.
	And then, I mean, It's cool to see something that you built up yourself grow, in my opinion.
	That's my take.
	Yeah, that's why you want to put the extra hours in.
	You don't mind doing that because you're the direct beneficiary of that.
	Exactly.
	Yeah, I mean, there's a quote that says, you either work to live or live to work.
	I feel like having your own business, the experience to me is fun because I'm making work a part of my life.
	For example, it's a part of me.
	So I wake up every day thinking about the podcast, how we can improve, how we can bring bigger guests.
	To me, that's more, I want to say, fulfilling.
	And then, for example, favorite part, I would say, is the freedom to have access to pretty much referrals, recommendations, having a network.
	To me, that's really amazing.
	Yeah.
	What about you, Steve?
	Because you own a couple of firms.
	Yeah.
	So, yeah, I worked a ton.
	I mean, there's a lot of times when, there was times when I paid all my employees, and I didn't get a paycheck.
	Oh, wow.
	I didn't have a paycheck.
	And then they didn't care, you know what I mean?
	Because it wasn't their business.
	And I stood after trying to figure out, you know, solve some problems, figure out, okay, what are we going to do to solve this?
	There was a lot of times when that happened, you know, especially when I was doing the medical company, you know, sometimes the insurance company, checks were not coming in.
	Wow.
	So you had to figure out how to float that.
	And, you know, we figured it out.
	But, yeah, sometimes you're the last person to get paid.
	And I never let the employees know.
	Yep.
	They didn't know.
	And I didn't cry about it.
	Yep.
	You know?
	Yeah, you make sure you take care of them.
	You just do what you got to do and move on.
	They think being a boss is easy, but times like that, it's not easy.
	Yep, absolutely.
	Would you, Joe Argos, would you suggest an S-Corp for an insurance agent?
	Also, what are some decisions that a first-time agent should claim that I might not think of?
	Shout out to FNF for bringing all the value.
	Yeah, definitely an S-Corp.
	Set yourself up as a subchapter S-Corp.
	It's kind of similar to a real estate agent, too.
	And I'm going to talk about that on Wednesday.
	I've got a real estate podcast.
	But definitely, I tell all my agents to set up as a...
	Because you're going to be paid as a 1099.
	Well, the commissions you're going to get.
	So definitely...
	You should definitely get...
	Get set up as S Corp, and then you can write off.
	There's going to be a ton of stuff.
	You know, your education, your ton of running around with a car and a vehicle, and list the car, too.
	Even if it's a used car, get it listed, because you're going to be using it now for business.
	Meetings, trainings that you go to.
	Absolutely.
	Car donate five bucks.
	What do you think about whole life insurance?
	Chris Krohn says you can become your own bank.
	He's talking about life insurance to borrow against.
	Yeah, I've heard of that strategy as well.
	Oh, the cash value, yeah.
	Yeah, have you heard about that?
	Yeah.
	Using life insurance policies and borrowing against that?
	Yeah, yeah.
	And then you could take loans against it and pay it back.
	But, I mean, it takes a long time to put money away from that.
	And a lot of these cash value policies, I don't like the idea of...
	I like term insurance.
	That's what I tell people, honestly.
	That's what I do.
	That's what I did.
	Because I think investments should be investments.
	And I think insurance should be term.
	Pay the lowest amount per month.
	I know a lot of people don't agree with this, but this is what I think.
	And then the money that, you know, because a lot of times they take the whole life policy And it's, you know, a whole life variable policy, and they're taking your money, and they're investing it, getting a nice rate of return, and then getting you a small piece of it.
	Yeah, because people don't understand, when you give them your money for the whole, and for, like, for example, IULs, they take a portion for fees, and then they put a small portion towards your actual cash value.
	So it's not really that much.
	Let's say you put 500 bucks, put, like, 250 in there.
	The other 250 goes to, like, fees, other...
	Hidden costs.
	Yeah, let's say you're paying $200 a month.
	They're taking $50 by the term, basically, what you would pay for a term.
	They're taking $150 and investing that money, and then they're giving you a small portion of return to build a cash value.
	Let's say, for easy math purposes, if you have $100,000 in one of these life insurance policies, how much can you actually borrow against it?
	I mean, it all depends.
	On whatever, because every policy is a little bit different.
	You can take money out, but it takes a long time to build that up.
	So basically, just at this point- You can't put like a big lump sum in there?
	Some people do.
	You can, but again, they take fees.
	So let's say you put 200K in there.
	You might only get like, well, depending on the plan, you might get like 150, 130.
	That's going to be yours.
	You can use it right away.
	It depends on how much fees you gotta pay out front.
	Okay.
	I guess this is why it's very important to shop around with this life insurance stuff.
	To manage it, to actually have it in there.
	It's a very competitive industry, life insurance.
	There's a lot.
	That's why they come up with these strategies.
	And their terms are so wildly different.
	Each company has different terms and different benefits and stuff like that.
	And then some come with a death cash bonus where when you die, you get a bonus.
	Right.
	You shouldn't tell your wife that.
	I do term.
	I've always done term.
	I started out when I was really young and I started working.
	I had this kid come to me and he sold me a variable life.
	My brother was doing it for a little while too.
	And then I was like, man, this cost me a lot of money.
	And then I came across some other information and a couple of really smart CPA guys and they're like, look, Why are you doing that?
	Here's what's going on with your money.
	And they broke it down for me.
	I was like, that doesn't make sense.
	They're like, just get term.
	And I mean, at the time, it was only going to cost me like $25 a month.
	And I was putting like $200 into this variable life insurance.
	Because these insurance guys, they get paid a lot of commissions up front when they sell these whole life policies.
	They do.
	They have wholesale teams on this.
	So they're going to sell you on all the gravy, all the sexiness on it, and you can pull this money out tax-free, this and that and all the things, but it takes years and years to build it up.
	It sounds good, but to build that money up takes a lot of time.
	I mean, a lot of insurance guys.
	I'm sorry for the insurance guy that wants to do the 1099 thing.
	They're spilling the beans, man.
	But still, do your thing, man.
	Yeah, so I don't know.
	They're spilling the beans.
	Yeah, that's just me again.
	This is not financial advice.
	This is just me personal.
	So when you say term, what do you mean by term?
	It's better to go the term route.
	Because it's cheaper.
	It's like renting versus buying.
	So pay on a monthly rate is what you mean?
	Yeah, it's all monthly.
	Most insurance prices can be monthly.
	Versus like putting in a lump sum amount?
	Yeah.
	Okay.
	Yeah, yeah, yeah.
	I'm just paying a higher premium for a policy.
	So instead of like, I just pay, I don't know, 85 bucks a month versus if I want a whole life policy.
	And they're all different.
	They're all, how much you want to put away, spending $200 or $300 a month for a whole life.
	I'd rather take the 85 just and pay my term and then take the rest of the money I have and invest that And myself and my business and things that I can grow.
	There's a layer of protection you can use for insurance, I would say for safety reasons.
	Obviously speaking, you want to protect your assets, but ultimately what you're just saying is term is going to be better because you're just getting the insurance with all the fees and hidden costs.
	And for you guys out there, I mean, you got a young demographic here.
	You know, you guys are young.
	Now's the time to lock into a term really cheap right now and have it, you know.
	Gotcha.
	Yeah.
	Okay.
	God forbid.
	What else do we got here?
	What did we do with the HSA? What's the difference between a 1099 NEC versus getting an LLC? I have a 1099 NEC for home cares as a medical doctor, but not sure if it would benefit me if I should get an LLC. Okay, so a 1099 NEC versus getting an LLC. Okay, so a 1099, it's just a form that somebody that paid you filed with the government saying that you're a non-employee.
	NEC stands for non-employee compensation.
	Okay.
	So they hired you to do something, they paid you, and then they have to go to the government because they want to deduct it on their taxes.
	So they're going to do the deduction, they're going to fill out that form, you get it, they file it with the IRS, and now You want to be an LLC treated as an S Corp because that 1099, if you don't become an S Corp, is going to be taxed extra 15.3% self-employment tax if you don't do the subchapter S Corp.
	So that's what we talked about on your show the last time.
	Awesome, yeah.
	Yeah, so you're kind of getting the two a little bit conflated and confused here.
	So I just wanted to make that.
	1099 is just the guy, whoever paid you, is filing that form to say how much he paid you so he can write it off.
	And then he's forcing you to report it on your income tax return.
	But have him make sure he does it in the LLC. Make sure that that LLC is converted to an S-Corp.
	I have a book on that that I just came out with.
	It's 26 bucks.
	So I would charge my client like, I don't know, $350, $400 if they came to my office and they had an LLC and they were a sole member, right?
	And I would convert them, fill out the form.
	So I did this book.
	It's out right now on my SamCart.
	And for 26 bucks, it's a no-brainer.
	And then you guys can learn it to the point where you can give it to somebody else and then even somebody could pay you to do one for them.
	It walks you detail by detail.
	I got the YouTube clips there in the forum.
	Versus having someone, yeah.
	Yeah, tutorials.
	Switch from LLC to S. Yeah, I mean literally step-by-step ABC. Okay.
	Steps in there.
	W Steve.
	Yeah, yeah, yeah.
	And then we'll get into that.
	If you join the Patreon, that's one of them you're going to get for free.
	So every month I'm going to try to put a book out there for really cheap for these guys, you know, so you guys can level up and get financial literacy.
	The more you know, the more you can save.
	That's pretty much what we're telling you here today.
	Yeah.
	Versus, and you could do it yourself, versus hiring someone that's going to charge you $300, $400, $500.
	Yeah, you know, you got to get somebody to do it.
	And a lot of times, like I said, I went to an attorney with my brother, and I paid $2,500, and he didn't even convert us to an S-Corp.
	And I got screwed.
	And I was young.
	You were dumb.
	You're going to start a business, and you think because you're dealing with a lawyer, everything's going to be done correctly.
	Yeah, it's like, you thought he was fine, but...
	A lot of times they don't even do it.
	Yeah, exactly.
	That's a great one too.
	I'm going to get into that real quick with the red flags.
	I got some really good stuff.
	Wesley snipes, man.
	He got sniped.
	You did get sniped.
	Literally.
	What else do we got here?
	Super Javi says, Steve, last time you said that a truck driver working a 1099 job should start an LLC. What's the benefits of that?
	Again, because he's going to be treated as an independent contractor.
	He has his truck.
	He could write that off.
	I don't know if it's his truck or he's using the company's truck.
	But basically, you're going to save the self-employment tax, 15.3%, by getting paid as an independent contractor and getting an LLC, turning that into an S-Corp, and then just...
	Paying a portion of that money, constring it as payroll, where you pay the self-employment tax.
	All right.
	A.B. Hey, Fresh.
	Have you learned 100 words today?
	LOL. Hashtag CEO Network.
	We up.
	WMO. Tomorrow I will.
	Hunter says, Steve, currently putting $1,000 a month into my IUL, which is another insurance policy, at 21, and using that for investments and as well as tax-free retirement, which is very good.
	What's your thoughts on using insurance for tax-free retirement and other purchases?
	Not a lot of people leverage this.
	Which is true.
	A thousand dollars.
	So you must be making pretty good money.
	I don't know.
	I mean, I have some people that have done that.
	You know, you feel good about it and they sold you on that policy.
	I don't know the specifics of what it offers.
	That's the Index Universal Life.
	I used to have one as well.
	It's pretty good because it gives you bonuses.
	It gives you money up front in cash value and the benefit of when you want to have people under your, what do you call it?
	Trust.
	Beneficiaries.
	Beneficiaries, yeah.
	So it's pretty good, but it's more of an investment than anything else.
	But again, they're taking your money, keeping it there for you, but also investing some of it for themselves.
	So it's kind of like a trade-off.
	Right.
	Yeah.
	Okay.
	Yeah, I don't like the idea of having life insurance conjoined with investment.
	That's me personally.
	And you can borrow from it as well.
	And I'm not going to tell anybody what to do.
	That's just me, what I would do personally if somebody asked me.
	But you can also borrow from it as well.
	If you want to borrow money for a house or whatever, you can borrow from it and just pay yourself back.
	Okay.
	Kenny goes, question, I live in Texas and I hired, can I hire you from here?
	Where am I at?
	I'll wait for my tax return to buy another property with the offer of 1% of Rocket Mortgage and take that property, divide the land, and put a few RV or mobile homes and rent it out.
	Continue.
	I like that business.
	It's a cash cow RV business.
	Yeah, I mean, I have clients all over the United States.
	So, yeah.
	How can I hit you up?
	So, definitely, just DM me, probably through my Instagram, seeing beyond the numbers.
	Seeing beyond the numbers?
	Yeah.
	Seeing beyond the numbers, guys, is the Instagram handle.
	You're going to get an auto-reply on there right now because it's set, but just leave me a message and I read them all.
	Okay, cool.
	Water Dragon.
	Oh, no.
	Okay, Water Dragon goes, I'm getting the Tesla Cybertruck as a work truck, fully electric, will definitely be over 6,000 pounds.
	What would be better, lease or buy, or lease to buy?
	I would buy.
	Get the financing on it and get that deduction because it's a 6,000 pound vehicle, so definitely that would be...
	And also at least the buy isn't common, guys.
	You got to know the person or kind of have like inside help to get that kind of contract.
	Ah, okay.
	So it's not like you can even go to a dealership and be like, yeah, I want at least to buy.
	They're going to be like, look at you crazy.
	Not everybody offers that.
	They'll be networking.
	Okay.
	Hen, RIP, says, what if I want to buy an old car of the company S Corp and declare it as 50-50 personal slash business?
	He wants to buy an old car under the S Corp and declare it 50-50?
	So he's using it 50%.
	Yeah, you can listen.
	As long as 50% business use, you're going to list it for 50% of whatever the purchase price is, and you're going to depreciate it from there.
	All right.
	I think we missed one below.
	Kenneth Potch.
	He did a two-part question.
	Oh, it was?
	Okay, cool.
	Got it.
	Oh, yeah.
	And then he said, yeah, because he said continue.
	Which I recommend or is there a better way to do an LLC before buying it?
	I'm renting part of the land.
	Is that passive income?
	Do I make LLC for that?
	I appreciate all the hard work.
	I'll try to call on Friday to explain better.
	So yeah, he had a two-part question.
	Basically, he said, I'm waiting for my tax return to buy another property with the offer of 1% Rocket Mortgage and take that property, divide the land, and put a few RV and mobile homes to rent it, and then it goes, what should y'all recommend?
	Or is there a better way to do it?
	Do an LLC before buying it?
	I'm renting part of the land.
	Is that passive income?
	Do I make LLC for that?
	This is a very complex question.
	I mean, you could do the LLC after.
	It doesn't really matter.
	But you could do it after.
	Because I, like, again, I say, you know, once you close, no deal's a deal until you get to the closing table.
	Then you have all the structure set up.
	So you could do it after and then just do a quick claim deed into the LLC once it's done.
	Yeah.
	You know what?
	I understand your question now.
	Steve's 100% right.
	And I've actually experimented with this.
	It's way easier to buy the property under your personal name and then switch it to a business after the fact, guys.
	If you try to buy under a business up front, like let's say you make the LLC and then you try to buy it Through that, it's going to be a pain in the ass because you're not going to qualify for as good of rates.
	The terms aren't going to be as good because they're going to look at it like, oh, you're a business.
	It's more risky.
	So it's better to buy under your personal name and then switch it over to a quick claim deed like Steve was saying.
	And it's cheaper and it's easier and you'll get better interest rate, better terms.
	More lenders will work with you when it's your personal name versus using business terms.
	So, I'm a big fan of buying the real estate under your personal name.
	Actually, Mo and them were with me when I did this.
	So, this is what you do, step by step.
	Buy the house under your personal name, right?
	Close the deal.
	After you close the deal, work with either your attorney or an accountant.
	Steve does it for me all the time.
	Get a quick claim deed and then create an LLC for that address.
	So let's say you buy 123 Main Street.
	Create an LLC 123 Main Street.
	Now you have that LLC created.
	You get an EIN number for it, which is basically a social security number for that business.
	You get that EIN number.
	You go to the bank and you create a bank account for it.
	Bank account, yeah.
	Okay?
	So buy the property.
	Close it.
	Create the LLC. Do a quick claim deed to switch that personal property over to the LLC name now.
	Now it's 123 Main Street LLC. Then you get an EIN number.
	That EIN number is what you go and take to the bank and make a bank account.
	Bam!
	You just went from converting it to a personal asset into a business, essentially.
	And you're able to keep the good terms that you got on it.
	You probably got a pretty good 30-year fixed rate A 30-year mortgage with a fixed rate, maybe you got it through an FHA loan, whatever it may be, but you convert it, and then bam, you're good.
	Yo, bro, you don't learn this at school, man.
	Yeah.
	Money Mondays.
	And kudos to you, because you just mentioned a really big thing, that they don't overlook the fact that you have to take that EIN number and your LLC to the bank and open up a bank account.
	For the LLC. And the reason why is because the LLC protection that you're getting provided can be pierced if you just put that money, the rental money, in your personal bank account.
	Because you have to demonstrate.
	So if somebody ever sues you and you go to court, the judge could say, oh, well, you have all this stuff in your personal account.
	You have to separate and not co-mingle.
	I never want to take personal stuff and money that you're getting and mix it with your business LLC stuff.
	So that's a huge one that you'd You want to separate it, man, as best you can.
	And here's the thing.
	I'll be honest with y'all.
	It's going to take you some time.
	It's going to take you six months to a year to kind of get your properties established, get all your paperwork in order and everything else like that.
	But once you do, get it settled and then make that transition where you have bank accounts for each of your real estate properties under the LLC name.
	We keep it simple.
	We typically go whatever the address is, LLC. Create a bank account for it.
	And then the money goes into that.
	And I'm going to talk to you guys.
	We're like 90% of the way there where I'm going to have a bookkeeper and everything else, but I'm using a CERN app to collect all the rent.
	I'm going to talk to you guys about how I set that up, how to do it with bank accounts and everything else like that.
	We'll do a full episode for you guys on how to run your real estate portfolio to properly collect the money and put yourself in a position where you don't mess yourself up.
	But as far as procuring the property, what you're asking, buy under your personal name, bro.
	Most of the time it's going to be easier.
	Unless you're like a Grant Cardone and you got like 10x LLC, you're not gonna get the most favorable loan terms.
	Like Grant Cardone, Ken McElroy, some of these big real estate investors, they can acquire debt that me and you can't get.
	And they could probably do it under a business.
	They can go ahead and get these really good terms.
	They build a relationship with those banks.
	And they know the banks personally.
	Over a period of time.
	So you gotta almost start at the bottom and work your way up to that, if possible.
	Yeah.
	You know, once you have a relationship with a bank, then maybe you can go the route of having an LLC and going there, but in general, it's better to buy it under your personal name.
	Could you explain the Augusta rule in real estate?
	Yeah, so basically you can rent out your personal residence for up to 14 days every year for rent and basically not have to declare the rental income on it.
	So a lot of people, the Augusta rule is basically because where their masters is played, a lot of people that own homes in there, because you remember so many people fly from all these areas, they go to Augusta, Georgia.
	And they rent homes to be there for the masters for all that period of time.
	So a lot of people will just rent their home for like 14 days and they're getting a lot of rent for these homes, you know, because it's in the band.
	So they just came up with this like, as long as it's 14 days or less, they call it the Augusta rule because that's where they're doing the golf tournament there.
	Oh shit.
	Yeah, so they came up with that saying, all right, you don't have to report that as income on your tax return.
	Okay.
	What else do we got?
	Bills, anything else?
	Yeah, we got some more.
	Card says, how much do you have to make a month to start using a private jet?
	Because I hate traveling with other passengers.
	I've heard it costs like 100k a year for a jet.
	I don't know, bro.
	It might cost you more than that.
	Stop me, bro.
	Somebody else.
	I'll tell y'all this.
	For us to go from Romania to London costs about 20K. And that was a short flight.
	It was 30.
	It was 30?
	Yeah.
	Damn.
	30 plus.
	How many people were on it?
	Me, you, Andrew, Sneeko, Tom, Justin.
	And then the girl.
	Well, two girls.
	So maybe seven people?
	Yeah.
	That's not bad.
	And you figure if you fly first class, sometimes it's going to cost you that much.
	Yo, first class is a rip-off, bro.
	Yeah.
	Goddamn.
	So you paid three or four grand, so you had that many people on there, so that's actually not that bad.
	Yeah.
	You know?
	Yeah, but that was a short flight, too.
	You know?
	Oh.
	Yeah, it wasn't long.
	How long was it?
	Like, two, three hours.
	Two hours.
	Okay.
	I mean, yeah, because, I mean, there's some first-class flights, like, from, you know, Miami to New York, where you're going to pay a couple grand, at least, you know?
	By the way, that was my first ever private jet flight on my birthday.
	Shout out to Andrew.
	Shout out to Andrew, man.
	Awesome.
	That's great.
	But yeah, I mean, to answer your question, bro, what did he ask specifically again?
	He wants to know, basically, I guess how to manage it.
	How much would it cost to manage it?
	Yeah, he says, how much do you have to make a month to start using private jet because I hate traveling with other passengers that have heard it costs like 100k a year.
	Yeah, bro, it's expensive.
	I mean, it depends on how much you want to spend.
	I ain't spending that much.
	I mean, I still do frickin' commercials.
	Even Wes Watson travels for seminars and shows every day on a private chat like Pro, but he's not paying for it.
	I mean, he's paying for it, but he doesn't own it.
	I mean, you're rating it off on your taxes.
	Yeah, it's right off.
	And then some people just need to bypass the line.
	They need to get there.
	They need to make sure that they don't want to go through TSA. They don't want to go through commercial and have it delayed.
	If your business warrants that and you're in a position where you can do that, then I'd say more power to you, but that's not for everybody.
	Like, look at Trump or Grant Cardone.
	They have to go to, like, an event and be there.
	They're making, like, 500K, 300K, spending 30K. Won't even matter.
	Yeah.
	So it depends on you, really.
	I mean, me, I'm different, man.
	I don't like spending ridiculous amounts of money on luxury like that.
	It pisses me off, personally, because I still like to live like I'm a Fed, right?
	Like, I made that kind of money.
	You still have your Honda.
	Yeah, I still have my Honda.
	So, me, personally, I would never do that.
	Like, I don't care how much money I make.
	I just can't fathom giving that amount of money to be for three hours on a plane.
	Like, fuck that.
	But if your business warrants it, you need to be at places, right?
	You don't have time to deal with TSA, whatever.
	You're jet flying, limousine riding, you're Ric Flair type status, etc.
	You're traveling a lot.
	I could see why, and you can't get the benefit.
	I think you're going to know yourself when you're making money, if you can afford it or not.
	Yeah, you'll know, bro.
	You'll know.
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	Okay.
	I'll read the next one, man.
	Goddamn fresh.
	I'm just saying, bro.
	Oh, man.
	Blue cheese.
	Oh, shit.
	Okay.
	That was entertaining.
	Number four?
	That was funny as hell.
	Number four?
	Yeah, number four.
	So the fourth thing, guys, okay?
	Actually, no, we're at the top three now.
	Top three.
	The top three.
	Round three.
	The HSA plan.
	Yeah, so that's a health savings account.
	And whether you're a W-2 wage earner or you're a business owner, you should probably take advantage of it.
	So basically, that's a health savings account.
	You could put about four grand per person away.
	And you can put the money in and get the deduction on your tax return.
	You can let the money grow in an account.
	You can invest it in anything that you want.
	It doesn't have to be anything specific.
	It's basically you self-direct it the way you see fit.
	Some people have taken the money and invested it into real estate, too, as well.
	And then when you pull the money out, you don't get taxed on it, but you have to spend it on qualified medical expenses.
	But you can let the money grow in there.
	But you could set it up for yourself, for your kids in the future, if you're going to have kids or whatever.
	So, I mean, I like it because it applies to everybody and you're a business owner.
	You know, you can put about four grand away per year.
	Can you borrow against it?
	No.
	That's basically, you're just going to use it on qualified medical expenses.
	Got it.
	So there's a list of things that even fall out, you know, because a lot of times your health insurance plan doesn't cover everything.
	But the only caveat on that is you have to have a high deductible insurance plan, meaning that your deductible That you pay on your insurance plan has to be $1,500 at least.
	Okay.
	So, you know, in all these high deductible insurance plans, they have low premiums.
	So the higher the deductible, the lower the premium.
	And, you know, sometimes, so deductible means that basically you're going to have to, like, if you go see the doctor and your insurance plan, then you're going to be on the hook for the first $1,500.
	That's the deductible part.
	It's kind of like with car insurance, too.
	You get an accident, got a $500 deductible, you gotta dish out $500 before they start paying.
	Bam, okay.
	So that's a great one, yeah.
	Yeah, yeah, that's something we'll get you to size.
	And I'm getting you with the health insurance and all that stuff.
	Yeah, I'm doing that right now.
	Might as well.
	I'm pretty healthy, but...
	Hey, you never know.
	Now that I think about it, actually, when I was working for the government, yeah, I remember they would send me forms.
	For that.
	Because with the government, yeah, you probably had flexible savings.
	You probably had great benefits.
	Yeah, because I used to get a form in the mail every year.
	I didn't know what it was because I didn't understand taxes at all.
	But okay, that makes sense.
	So as an entrepreneur, you can get a health savings plan, and that will give you...
	You can deduct that.
	Anybody.
	Anybody can do it.
	Even as an employee as well.
	I got offered it at my other job.
	Yeah, you can do it.
	So is it better to do it through the company that you work for?
	Or is it better to do it on your own?
	You can just do it on your own.
	Typically, if your company doesn't offer or whatever, just go down to a bank or something like that, open up an account, and then you could just...
	And if you're an employee, you just go to HR, hey, I want to sign up for HR. Yeah, or do it that way.
	If they administer it for you and they do it that way, then that's the easier way to do it.
	But if they don't, then you could just go on your own, go to your own bank and just set up a health savings account.
	Are there any companies that you tell people that are best, or is it depending on region and where you live?
	No, pretty much it's pretty much very general.
	Most...
	Banks offer it.
	Okay.
	What about like for dental?
	So yeah, you can pay dental expenses out of that health savings account too.
	That's one of the things that you can spend out of there.
	That's qualified medical expense.
	Okay.
	Some of y'all need that.
	Bam.
	All right.
	Cool.
	Number two.
	So now we're going into the top two here, guys.
	Okay?
	So this is huge.
	And this is for my business owners.
	Get yourself a qualified bookkeeper.
	I mean, that is...
	I can't stress that enough.
	It makes everybody's life easier.
	It gives you information.
	I've got one, pretty much.
	Yeah.
	It gives you information throughout the year to make decisions on your business.
	And you want somebody that's a full-charge bookkeeper that knows, you know, get hooked up with some program online, whether it's Xero or it's, you know, QuickBooks Online that is...
	Proficient in that, that knows how to take your bank account, link it to get all the download for the transactions and bucket those and code those transactions.
	So you have, you know, they reconcile the bank statement every month or maybe every quarter.
	You should at least every quarter, every three months have something financial-wise where you have a profit and loss and you know exactly where you stand in your business so you can make decisions.
	It's worth its weight in gold because this way not only do you have the information all year, But when you go see your tax professional at the end of the year, everything's done.
	It makes their life easier.
	It makes your life easier.
	You know where you stand.
	You can get better tax planning.
	So definitely just spend the money to do that.
	If you're not proficient in doing it, I get a lot of clients where they try to do it themselves, and it takes us more time to unravel that and do it.
	Sometimes we just got to start from scratch and re-download everything and just re-bucket everything.
	And we're not cheap in doing it sometimes.
	You know, because when we're doing it when we're the most busy and we don't have the most resources, So you're better off just getting it done throughout.
	Hire somebody to do it.
	Spend $100, $150.
	People can do it pretty cheap.
	And yeah, definitely.
	That's what I would say.
	That's why that's a huge one.
	Because if you don't have good information going into your tax preparer, you're going to miss the opportunity to get a lot of tax deductions.
	Capitalize on benefits.
	Honestly, there's so much stuff that's in there.
	And another thing, they'll keep you straight.
	Try not to co-mingle.
	Don't just use your business card to spend on personal stuff out of there.
	If you need money, just take a draw, put it in your personal account, separate the business between the personal, and just have everything in your business account that's really business as much as possible.
	Sometimes we can't do it because things come up.
	But that's what I would say.
	So definitely a qualified bookkeeper that is proficient.
	It's a full charge.
	Just do it.
	What about business credit cards?
	Yeah, that's the same thing too.
	Because that kind of works like the bank account too.
	You just kind of link it with those programs online and everything gets downloaded in there.
	And you could just bucket all the expenses out of there too.
	And again too, it makes it easier if you're using that business credit card for just business purposes.
	It just makes things a lot easier.
	Way cleaner.
	Yeah.
	And guys, especially when you have real estate property and you have, like right now I got like 30 plus tenants, that becomes a pain to track.
	I mean, right now as we speak, I'm like going with Roger and we're like tracking down who still owes money and stuff like that.
	And you know, yeah, bro.
	So, and I got an app, and I'm going to talk to you guys about how I'm doing this.
	Yeah, he's awesome.
	Yeah, but it's really important for you to have a bookkeeper.
	Steve actually hooked me up with his bookkeeper, and she's going to probably start taking over here next month or so, but she's going to start taking over here very soon once we have everybody fully enrolled in the app that we're using to collect rent, and she's going to be handling all that stuff with making sure.
	Everyone pays.
	All the money comes in.
	Paying bills off water.
	Electric.
	It's happening before I get a letter.
	You owe this much in water.
	I'm like, oh man, I didn't even know.
	Then I go in there and I manually pay it.
	But you want someone to handle that all for you because it starts to get very...
	Chaotic, once you have, you know, at this point, man, I got 14 properties, guys, and, you know, 30 plus cents.
	It's very difficult to manage all that in different states.
	So this is where Bookkeeper becomes very important in the situation.
	So my mom used to manage her own stuff, and she became like her own spreadsheet analyst, and she would just put everything in there, keep track of it.
	But she only had one business.
	And my thing is, does she need a bookkeeper at that point?
	No, not really.
	And again, the level of transactions that you have per month in there, some business, like a rental property, it's not going to have too many transactions in there, right?
	But he's got a lot of rental properties.
	Yeah, 30 tenants.
	So that adds up.
	But if you only had one rental property, I wouldn't say, just go get a bookkeeper.
	Because basically, when you have one rent check a month, you have to pay your mortgage, you have to pay your real estate taxes, insurance, maybe some repairs and maintenance, right?
	Or HOA or something like that.
	So there's not a lot of activity in there.
	So I'm saying more for an operational business where you have more transactions.
	Some people can take care of it themselves because they're proficient and they feel comfortable.
	But once you get to a couple hundred transactions, two or three hundred and even beyond, you're going to want somebody that knows what they're doing.
	Got it.
	And bookkeeping is really important, too, because like Steve was saying, he kind of glossed over it, but I want to bring importance to it.
	That's going to help your tax preparer with appropriately writing things off.
	For example, if people didn't pay rent, or you experienced losses, or you had vacancy, whatever, that's going to be very important for you for real estate.
	And it makes their job easier, and they're able to look at the numbers and be like, oh, dude, you actually took a loss here.
	And then you're able to apply that against your income, and it helps significantly.
	Yeah.
	So, you know, so even when you got annoying tenants that don't pay rent or you have to evict them or whatever, I've had to hire lawyers to kick people out, you know what I mean?
	You know, you can write that all off.
	But also, too, you were always asking me at a moment's notice, you got a deal coming on, what's the first thing that the bank will ask you for?
	Profit and loss statements.
	Right, and up to date.
	Yep.
	Up to date.
	Last year, last two years, up to date.
	And you need them like that, right?
	Yep.
	Because you got to make the deal.
	So, yeah, that's why you want somebody handling your stuff.
	Yeah, man.
	Because they are going to ask you, they're absolutely going to ask you for profit loss statements, guys, when you are doing a deal.
	And it gets so annoying where you'll start the deal, right?
	Like let's say the first of January, right?
	And they'll be like, okay, we need a profit loss statement.
	Okay, cool.
	You give them the profit loss statement.
	Then like 20 days later, they're like, oh, we need another profit loss statement.
	You're like, what the hell?
	And they're like, yeah, bro, we're probably not going to close in 30 days, so we need another profit loss statement.
	Sorry!
	And then you've got to give them another one.
	And it's just annoying because underwriters are super weary nowadays because, you know, thanks to the real estate market crash from before and then the pandemic, they've been weary, man, with giving out loans.
	So, yeah, you need someone in your corner that can help hook you up.
	I mean, obviously, I'm lucky I got Steve.
	He's able to, you know, get me a profit loss statement within 24 hours a lot of the times, man.
	A lot of you niggas don't got Steve, so you guys gotta go get somebody, man.
	But yeah, Steve hooks me up with the private law statements, and then obviously with the real estate stuff, he's gonna give me one of his people to help me with that.
	And now, we're giving you Steve to hook you guys up.
	Yeah.
	His books, his access.
	Yo, who does that, bro?
	WFNF, appreciate it.
	A lot of YouTubers would never give y'all their accountants, man.
	Shit, I know.
	Shout out to Myron.
	He did it.
	And then, number one?
	We can finish these off before we get into number one.
	Myron, do you think...
	Well, Carr says, Myron Refresh, what do you think on Messi joining Intern Miami?
	I think it's great, man.
	For Miami itself, the culture, shit, companies here.
	I think it's great to have Messi here in Miami.
	Oh, okay.
	It's dope.
	I'm not familiar with what into Miami is, but...
	But he don't speak English, right?
	Probably not.
	Hunter goes, I'll take.
	I work in insurance.
	It depends how the policy is designed.
	You can also borrow up to how much cash value you have.
	So if you have 200K cash value, you can borrow up to 200K. You don't have to pay back the loan.
	It deducts when you die.
	Yeah, so that's probably like an IUL. But again, there's different policies that have different, I want to say, rules.
	But that's a pretty good one.
	Yeah, he's saying I'll take.
	Well, they're speaking generally about different ones, my friend.
	Yeah.
	He got insulted by y'all.
	Yeah, because...
	Anyone that sells insurance, they don't want you to hear some things that happen behind the scenes because here's your money.
	I'm going to sell you on the best benefits you can hear from my mouth about the product and then, yeah, it's a good deal versus, okay, just so you know, here's some hidden fees that you might not be aware of and some other stuff.
	Well, of course.
	I mean, the fact that life insurance has dedicated sales teams tells you that they're clearly profiting well.
	That's why they have sales teams.
	Bro, I know guys making no minimum than $200,000 a month selling insurance.
	What?
	Yeah, 100%.
	Because once again, it's referrals.
	Oh, you need one.
	Your brother needs one.
	Sister needs one.
	I got you.
	Come to me.
	Damn.
	Okay.
	Actually, PPD. Insurance.
	Oh, okay.
	Okay, so as an INS agent, you can't put a lump sum amount that's greater than seven years worth of premiums.
	Otherwise, the IRS considers it an investment and not insurance.
	So the lump sum can be greater than the equivalent of seven years worth of premiums.
	There you go.
	Wait, he's an IRS agent, he said.
	As an insurance agent.
	Oh, sorry.
	Okay, so he shortened it.
	Okay.
	I thought you meant like immigration naturalization.
	Yeah, that's what I was going to say.
	I was going to say, bro, INS has been gone since 2003.
	Oh, Lord.
	Cardona, he goes, is it true that the rich buy paintings to save their money?
	Hell yeah.
	I've heard about this.
	Could you tell them about, because remember, I bought the Lamborghini painting, and I bought the table for Off-White with Virgil.
	Could you tell them, because I think, did I write that off or no?
	No, because that's a collectible.
	Okay.
	Yeah, it's going to appreciate and value.
	Okay.
	But I have heard of most people buying paintings.
	But isn't it weird, because I know people that buy...
	Yeah, those are personal collectibles and stuff like that.
	It's not like business use stuff, so it's like a Rolex watch or something like that, you know?
	It's going to...
	Oh, sorry.
	It's like a Rolex watch.
	These are collectible.
	They're going to appreciate it.
	So that's a good investment as far as parking your money.
	I have friends that they'll buy a piece of art from artists that they know very well, and they know it's going to appreciate, and then they sell it later on for a way higher price.
	Yeah, so they're going to have a capital gain on that.
	Most definitely, yeah.
	It's a good investment, yeah.
	Okay.
	Okay.
	IULs are rich man's Roth.
	I've done case studies on IUL versus 401k and between managed fees, it's managed fees, taxes, etc.
	They take out more over 30 years in a 401k than an IUL. I work in finance and IULs have way more advantages than 401ks and Roths.
	I will agree because I actually had IUL as well and I weighed versus getting a 401k or Roth.
	It was way better because once again, you get the death benefit, you can borrow from it and let's say you die You don't have to pay it back.
	We'll just take it out of what the penalty would be for...
	Sorry, the cash bonus would be when you die.
	Yeah, it's tax-free money.
	Let's say when you die, right, someone was going to get, like, let's say a million dollars.
	If you borrowed, like, 200k, you get 800k.
	Oh, fuck that nigga.
	You can get less money, that's it.
	That's pretty much it, bro.
	So, I mean, it's the WW. Yeah.
	I will say, actually, guys, we're going to set up another interview with Chris Cronin.
	We'll talk about this in detail because Chris is really the guy that does this a lot with life insurance and investing into real estate.
	He's actually the one that brought it to my attention.
	He writes it in his book.
	So, we're going to talk about that in more detail.
	I'll be sure to pay attention to that because I learned something.
	I mean, that was just my opinion.
	And you're speaking from a tax perspective.
	No, but whole life insurance itself, some of them fall under that category.
	But IULs specifically are very well thought out for investments.
	And everyone is different.
	I know Chris uses a very specific one.
	It's not like you can go to any life insurance and be like, all right, I want to borrow against it and do real estate.
	He uses a very specific one that has very specific terms that work for him in his real estate business.
	I would wager he has an IUL. That's why I would assume.
	It's gotta be.
	Yeah, probably.
	Assume, yeah.
	Based on what it is.
	Andrew T. says he doesn't check his mail.
	Is that true?
	LOL. That's a random question.
	Well, to be fair, I did see him check his mail one time.
	He literally gets...
	While we were there.
	If y'all knew how much mail he gets...
	Bro.
	Hold on.
	You wouldn't either, nigga.
	He takes his email, but not mail.
	Yeah, I mean...
	There you go.
	On his computer emails.
	Yeah, okay.
	I work in Texas in the oil field making $120,000 and also invest in a 401k tax taken out now, being a W-2.
	What's the best way to not have to pay so much in taxes?
	I also don't get taxes taken out for a few months out of the year.
	He lives in Texas.
	Yeah, he's a W-2.
	Bro, you were literally in the same position as me when I was working for the government.
	I made pretty much the same thing.
	He's a W-2 employee and he's trying to figure out the best way to not have to pay so much in taxes.
	I mean, again, a couple of things that we just talked about here.
	I do have a book.
	It's a dollar.
	I get it for a dollar.
	Just go on my SamCart there.
	And it's got 10 strategies in there for W-2 wage earners in there.
	So I cover those in there.
	To spend less?
	It's for a buck, yeah.
	I wanted to give it out for you.
	As a W-2 earner, you're probably single, don't have kids, don't have a family.
	So yeah, dude, Uncle Sam loves people like you the most.
	They're going to take the most taxes from y'all.
	Especially anyone that's a six-figure earner.
	Yeah, they love you guys.
	I mean, I remember because I was in a tax bracket and they used to absolutely kill me.
	I pay less the taxes now making 10x the money versus when I made 120k as an agent.
	Yeah.
	Yeah, dude.
	Get that book.
	It goes in 10 ways to...
	And it's only, you said a dollar, right?
	It's a buck, yeah.
	Yeah, it's a dollar.
	I had to host it on there.
	Otherwise, I would give it away free.
	But I had to put it...
	So I had to put it for something.
	Put it somewhere?
	Okay.
	So it's a dollar to 10 ways for W2 employees.
	But you could go over some of the things we talked about here.
	Buy real estate, health savings plan...
	Yeah, cost segregation through 1031 exchange.
	The 401k, contribute more to it.
	Max it out, right?
	The traditional.
	I remember when I was working for the government, it was like 18 to 19k a year.
	And that would help deduct your income a bit so that you don't be as high of a tax bracket.
	Because you guys would be amazed that, like, you know, there's...
	Man, when I was working for the government, I remember it was like $87,000 a year was like the magic line.
	Once you hit over $87,000, you got taxed substantially more.
	So I would just focus on getting down to below $87,000 and then bam, your tax liability would go down tremendously.
	So figure out what that number is for you and contribute that number so that you bring your liability down.
	It was so bad.
	Changes every year.
	We used to do overtime, right?
	So we'd calculate, okay, if we make this much money a month from overtime, if we go past this, we'll get taxed higher.
	So we'd always work below that.
	Yeah.
	If possible.
	That's crazy.
	Yeah.
	Imagine like, you know, that's just wrong.
	Yeah.
	That's way higher.
	Yeah.
	So you got to figure out what that number is for you, bro.
	But it changes every year.
	So I have a lot of questions, but I saved two years and I'm going to do a big movement with money to buy a mobile home with enough land to divide it, then buy a RV and put it into rent for more earnings.
	Good job, bro.
	Good job, yeah.
	Good stuff, bro.
	Water Dragon says, Yo FNF, could y'all do an episode for best high-yield savings accounts?
	I use Opportun app, used to be called Digit, and I love it, but it's not giving me interest.
	I just recently opened up SoFi, because it's 3.5% interest, but I heard of others that are 5%.
	I got you right now, bro.
	You're going to need money to do this, but Merrill Lynch has a high-yield savings account, which I think right now is at about 6% almost.
	Shoot!
	It goes off of the Fed.
	You need $100,000, but you invested in there and you basically get a 6% return.
	Between 5% to 6%, which is really high because it goes off of what the Fed is.
	And the interest rates are probably going to keep going up, man.
	So it's a pretty good savings.
	Let's say you put a million dollars in there.
	That's going to give you...
	5% is going to give you 50K. 50K. There you go.
	That's damn near working a full-time job.
	That's someone's salary.
	The only caveat is you need $100,000 to open the account.
	It's called the preferred deposit, guys.
	Merrill Lynch preferred deposit.
	You need $100,000, but the interest rate is the highest I've seen.
	I don't think anyone...
	I don't know any higher than that.
	Me either.
	Right now, I think it's closer to $6,000.
	So, I'll look it up for y'all.
	Okay, Mike.
	Hey FNF, this question is from Myron.
	I'm 21 years old, finishing up my bachelor's in criminal justice, trying to get into federal law enforcement.
	What are the next steps to get there?
	Should I do internships, higher education, or apply?
	Thanks.
	I did an entire episode for you guys on this, how to get into law enforcement.
	I talk about how to become an FBI agent, DEA, ATF, how to get into local or state police.
	Watch that episode.
	Timestamps are in there, but I go into detail in that.
	You know, the panel interviews, polygraphs, all that shit.
	So watch that episode if you want to get into law enforcement, guys.
	And share it with any friend that you have that might want to get into law enforcement.
	Ivan Leal says, Steve, Myron, Fresh, Moe and Chris, bum ass motherfucker.
	Thank you so much for all the value you provide.
	Dumping my Feminazi, GF, was the best choice I made last year.
	Good.
	Any other live shows in the works possibly, Monday, Monday live show would be amazing.
	Yeah, I mean, many more, bro.
	Hunter again says, oh no, we got one ready?
	And, oh, Fresh and Fit says, Myron, do you think the government will get involved in AI deepfakes?
	It's becoming a huge deal because they're getting way more too realistic.
	5.02% right now, guys, for the Merrill Lynch preferred deposit.
	And no, they're not paying me to tell y'all that.
	I don't even have a thing with them, but I'm giving y'all some sauce.
	They should pay us, though.
	They should pay us.
	Merrill, you owe me a goddamn check.
	But yeah, that's damn good.
	I don't think you're going to find a higher interest rate on your savings account.
	And oh, the other beauty.
	I forgot to mention this.
	You can pull the money out anytime.
	You can literally pull the money out at any time.
	No penalty.
	Okay.
	It's a high interest account that you can literally pull money out at any time, guys.
	So it's not a CD. Yeah.
	No.
	So that's one of the benefits.
	A lot of these guys, they'll penalize you if you pull the money out, but they won't.
	But the caveat is you need $100K. Yeah.
	But here's the thing.
	You can put the $100K in there, and then I think you just have to leave $2,000 in.
	And then you can put in the 100, pull it out, have the account opened, and then maintain at least 1 to 2,000 in there, and you'll get that 5%.
	That's crazy.
	So, anyway.
	Were we at here?
	Sorry.
	And then we gotta close this thing out, guys.
	What is the best way to prevent going to jail by an accusation from a girl that isn't true?
	The women have to...
	Oh, this is a good man.
	Bro, keep all records.
	Pray for Russell Brand right now.
	Also, any of the creators.
	Look, guys.
	The Matrix is attacking him for real.
	This could be anybody.
	So, I mean, we all know that he didn't They're painting the narrative that he's this bad person, when in reality, if he's this bad person, he'd be caught a long time ago.
	So it's just like, bro.
	It sucks, man.
	It's what they do, man.
	Once you get close to the truth, some chick comes out.
	Don't be surprised if we get attacked too, bro.
	Hunter says, also with IULs, your money is completely protected from probate, which is very true.
	It's protection.
	And if you get divorced or someone comes after you, like government, courts, they can't look into your policy to take any cash value you have in the policy.
	Another good way to protect your cash is IUL. Shout out to you, man.
	He's definitely selling it.
	Decent Bonfire.
	Since a one-member LLC is a disregarded entity and must report on personal sum list, a random S-Corp they have as the second member to get their rental LLC as an EIN number and K1 status, less audits?
	Okay, disregarded entity.
	That's a lot of jargon.
	Some list a random S-curb.
	They have a second member.
	I don't know.
	That's a very convoluted question.
	Get their rental LLC and EIN number and K-1 status.
	He's trying to say, will that lead to less audits?
	Anything that's removed off of your personal income tax return into its own filing is going to be less audit.
	So I'm not sure.
	A disregarded entity means that you're going to file it on your 1040.
	You're going to have that business active.
	So you're basically giving the IRS jurisdiction over that entity along with your personal stuff.
	Yeah, that's the whole purpose of going to...
	Guys, the reason why we tell y'all to switch from an LLC to an S-Corp is because when you don't switch over to an S-Corp, you end up being...
	And you stay in an LLC and you have like a regular W-2 job.
	What ends up happening is you get double-texted and then you go into an IRS pile that is going to be more highly audited.
	Correct?
	I mean, for rentals...
	Keep an LLC. You don't want to be an S Corp for rentals.
	Yes.
	But for a goods and services operational business, you want to convert that into an S Corp and separate that from your regular.
	Here's the rule, guys.
	If you're running a business where you're generating income, it's an LLC, then you eventually turn it into an S Corp.
	If it's a real estate business where you're just having properties and making passive income, it's LLC. Yeah.
	Go watch the episode that we did last time Steve was here.
	We go into extreme detail with S-Corps versus LLCs and why you need to set up as an S-Corp for most service-based businesses.
	And I talk about that.
	I have that A to Z book.
	It's $26.
	You can get it on my Amazon card or the Sam card.
	And yeah, just basically going there.
	And I talk about this, exactly what you're talking about, and I go into detail about it.
	That episode, I would argue, is one of our best.
	Money Mondays.
	Watch that episode, get the book, because the episode's gonna tell you why you need to do it, and then Steve's gonna teach you how to do it.
	Yep.
	Okay?
	So, the book will teach you how, and then the episode will tell you why you need to do it.
	Alright?
	Man of Stripes says...
	And we'll go 50 and up from here, because we gotta close this thing out.
	Since I have a house in Maryland fully paid, and that rent pays for my house mortgage in Virginia that I currently live, how should I get another property?
	Save money up to 20% and get a loan, or something else?
	Well, there's two options, my friend.
	You can either go the investor route and put the 20-25% down.
	Be prepared to put 25% down.
	I can't remember the last time I put 20% down on a house.
	So be prepared for 25%.
	Or you can go ahead and do an FHA, but you're going to have to live in it for a year.
	So it really comes down to what you're willing to do.
	If you got no kids, bro, and you got a flexible, I want to say, career lifestyle right now, just live in it, bro.
	Just save more money.
	And just do it again.
	Repeat.
	Yeah.
	And then the other thing too you got to remember is if it's a single family home and you live in it, you're on the hook for paying a higher mortgage.
	So that's why it's always better if you're going to do an FHA to have at least a duplex or a triplex because that way you can offset the mortgage on your tenants.
	But if you're going to live in it yourself, be prepared to pay a higher rent because you're only putting 3.5% down.
	And you're going to have to pay PMI. When I did it at three units, I was living it for free.
	The two tenants paid the mortgage.
	So you had a little bit of cash flow, too.
	Yeah, and 200 bucks.
	But it depends, guys, on your...
	It depends on the market that you're in, how much you're charging rent.
	It varies wildly.
	In some markets, it might be better to just get the single-family home.
	In some other markets, you'd be like, hell no, I'm not going to do a single-family home.
	I need to do a duplex or a triplex for this to make sense.
	So it really, really depends on what it is.
	That's why I always use the metric of cash on cash return.
	That's why I tell you guys, use cash on cash returns because that's going to give you the best bird's eye view of your returns of the money that you actually put in.
	That's why I like to use the cash on cash.
	What's good?
	My G's.
	What are your thoughts on working for a company gained a substantial amount of caliber of craftsman work beside a non-compete?
	Is side work an option without competition?
	I'll give it down to Marco first.
	John DeMarco.
	John DeMarco.
	He signed a non-competition.
	You depend on how long it is, and yeah, I mean, there's always a way for them to find out.
	I mean, I've done these.
	When I've sold my companies, I had non-competes too.
	I mean, typically it's going to be like a three-year deal.
	Typically not more than five years, but I mean, it's a risk that you take, and I don't know how much you're paying for that non-compete, because there's going to be some price you're paying on it.
	So as long as you follow, and maybe outside of the jurisdiction and the radius of where you can't compete with them, That's where you gotta assess the risk, my friend, and figure it out.
	But typically, most non-competes, I mean, if the guy's smart, he has it in a very big, broad way where they can come after you if they find out that you're competing.
	Might not be worth it.
	Might not be worth it, bro.
	Avi Arga, I live in Vegas.
	I'm trying to start a hustle to buy real estate.
	I have two jobs and in school for tech right now.
	Should I flip houses or with today's pod start a Turo business with a sports car?
	Shout out FNF. Go ahead.
	That's great.
	Turo business is great.
	Yeah, definitely.
	I mean, like you said, you only got the app.
	You can get the insurance there.
	I think that might be a way to go.
	The only thing you need for Turo is basically the car and you can either lease it or which I don't recommend.
	You could buy it as well.
	Or by under company name.
	But real estate, you gotta have money for reserves, have money to invest.
	Steve, real quick for you, did you have a team, when you were doing the fixing and flipping, did you have a team of contractors that you would just call, hey, I'm closing on this, I need you to go in there and fix immediately?
	Yeah, I had three guys that I used to hire and pretty much they were working for me almost full time all the time because they were on these projects.
	So you had almost infrastructure set up for your fixing and flipping.
	Yeah, there's like three or four guys that I can.
	You're closing on the house, they're there pretty much the next day fixing stuff up.
	Yeah, yeah, pretty much.
	Do you suggest if someone is going to get into that endeavor to, you need contractors pretty much on call?
	You need a team.
	You need people because if you want to flip, you don't want to hang on to that house too long.
	You want to get it back out in the market as quick as possible because you're paying every month and you're not renting it.
	Were you taking hard money loans to do it?
	No.
	I was doing regular loans on it, yeah.
	You were literally using just 100% your own capital?
	Yeah.
	No, no.
	I wasn't buying everything cash.
	I was putting the money down similar to what you were doing.
	Okay.
	You were buying as an investor.
	But I was paying on that loan for the period of time that I had it.
	So I wanted to flip that as quick as possible because the market was going high.
	Yeah.
	So you were put 20% down, acquiring the property, and you literally put all your own capital into it.
	And how long would you hold it before you...
	I mean, you know, I've never had one more than six months.
	You know, three months was typically the turnaround time because the guys kind of knew what we had to do and what we had to do to get it back.
	So I want to say this real quick because too many people talk about fixing and flipping and fixing and flipping and yeah, this is what I want to get into.
	One thing I want all you guys that want to get into real estate and want to go through the fixing and flipping route, you're going to need contractors.
	You're going to need guys that you can pretty much call and they're on site doing the job that you trust that aren't going to nickel and dime you and can get materials for cheap because the other thing too that happened during the pandemic that a lot of people don't talk about is the cost of lumber went up, the cost of products went up, the cost of labor went up.
	I felt it.
	Oh yeah, because you did rehabs, big rehabs on your property.
	It should have cost me like 30k, it cost me 50k.
	There you go.
	And the problem is that buyers were different back then because people would put up with a lot more...
	Now these buyers don't want to come in and they want these places that look brand spanking new.
	They want beautiful stuff.
	Where we were getting...
	They were kind of speculating.
	There's more speculative buyers.
	They're like, oh, I'll sit here for a year.
	It's going to go up in value.
	So we got to...
	I want everybody to know that because if you get into the fix and flip game...
	You're going to need the infrastructure of people that can go in and fix it quickly.
	And then also, Steve was fortunate because he had a high-skill income, and he had his own capital.
	He put it in.
	So he wasn't at the mercy of a high-interest loan through a private lender or some private equity that's charging him 50% interest or something crazy like that.
	Yeah.
	He ate the bullet and paid the mortgage for those couple of months while he held the property and was getting fixed.
	But do you have the reserves to do that?
	Do you have the capital to do that?
	Are you going to do a hard money loan?
	Do you have contractors that can help you?
	These are all things you really have to ask yourself before you get into the fixing and flipping game.
	Because people on the internet will sell it as it's sexy and quick.
	You can make money fast.
	But it's not as easy as you guys think.
	And then especially with how expensive it is to fix properties nowadays.
	Because it's more profitable for contractors to work on commercial deals than to work on residential deals, guys.
	So why are they going to go ahead and take your job when they can go make more money doing an apartment complex or whatever?
	Keep in mind, both of these businesses are a hustle.
	And renting a car is not easy either because you need a team as well.
	Because once again, You need to track your cars because they get stolen.
	You need people to wash their cars, valet them.
	You need a whole service team to manage that business as well.
	So they're both hustles, guys.
	It's not easy either way.
	And if you're going to have cars like Mercedes and BMWs, you're going to lean more towards the luxury side.
	Then you've got to deal with the upkeep of those vehicles because they're not cheap.
	You're going to need German mechanics.
	When they get hit, the repairs, the collision.
	Very expensive.
	You need a team for both these practices, guys.
	Didn't Kevo rent his Lambo's for a bit and just say, fuck this shit?
	Yeah, because it's stressful.
	Yeah.
	Because, once again, every time a car goes out, it's like, okay, is it going to get hit today?
	Is it going to be good today?
	Who knows?
	They're going to smoke in my car.
	You just never know.
	These idiots, like, guys, they're going to drive the car like they fucking stole it a lot of times, man.
	They're going to do dumb shit with it.
	Certain cars...
	I want to say different because, let's say for example, a Rolls-Royce truck.
	You just stunt in that car.
	You don't drive it too fast.
	You just stunt in it.
	So you drive it slow.
	But once again, that's way more luxury than a Mercedes or a BMW, which is just A to B. So it just depends.
	When you don't own it, you don't trade it the same.
	So I'm not saying that to discourage you guys, but I want you guys to understand that like, you know, There's a lot of entrepreneur porn out there telling you you can go ahead and buy fix and flip houses.
	It's so easy.
	Yeah, do it, man.
	It's great.
	Or, yo, just get on tour, blah, blah, blah.
	You're going to need to have things in place to make it successful long-term.
	The fix and flipping thing, I think it's one of the biggest lies in real estate, telling people, yeah, just be a fix and flipper.
	No, man, you need infrastructure there.
	You're going to need contractors.
	Sounds easy.
	You're going to need people.
	You pretty much had three guys for you full-time that were fixing houses.
	And I did a lot of the stuff myself, too.
	You did it yourself, too.
	You're a handyman.
	Yeah.
	Are you a handyman?
	Do you have a team?
	So if you are, then we could talk about that.
	But if you're not, man, then yeah.
	Number one.
	Number one.
	So number one, last but not least, get the right CPA or tax professional.
	CPA or EA. And you want somebody that's accessible, that's reasonable in fees, that has industry-specific knowledge.
	So ask the people in your industry, whatever you're in your medical, find out who they're using in your area and link up with them.
	Yeah, definitely that would be...
	So that's kind of what led me to a great idea that you gave me, Fresh, is to do the Patreon.
	So I have the Patreon set up, and all of a sudden I had this epiphany.
	I'm like, okay, wait a minute.
	This is a great way to now...
	And the way I deliver services, if I had this when I was younger, I would definitely take advantage of it because they're going to get all the value that basically a CPA firm would give.
	And I'm going to have industry experts coming in every week, having a one-on-one weekly call on Zoom, the Telegram chat, so they have access to the networking and questions you could drop in there.
	All the books that I'm going to be doing, I'm going to keep up with one book a month in there.
	So they're going to get them all as part of the deal.
	And what I'm doing for your members here is I'm giving them for the middle tier, which is typically $44.00.
	For $26.
	So for the first hundred guys that come in and do the Patreon, and it's like a $216 savings per year.
	So for about $300 per year, you're going to get all that value, all the e-books, all the one-on-one with me, the questions and everything.
	So get in there.
	So for the first hundred guys that come from the Fresh and Fit are going to get that discount.
	And I want to mention, just talking to Steve101 is that price one time.
	Yeah.
	Every week I'm going to be on a call.
	You could ask me anything, anytime.
	I'm responding to as many DMs as I can.
	Also on Instagram...
	Starting next week, because I'm going to be with you tomorrow doing your show.
	I'm going to do Instagram Live at Tuesdays, 8pm.
	I'll post it out there, so follow me on Instagram.
	I'm going to do a one-hour Q&A, anything you want to ask, just like you guys are doing here.
	And yeah, just hit me up.
	We're going to try to bring Steve on more frequently.
	We're trying to convince him to move, so we'll see what happens.
	But yeah, you'll see Steve more, because I think you guys really benefit from this, and having someone like him who's a professional when it comes to taxes is, you know, you can't lose.
	Speaking of the right CPA, Wesley Snipes.
	What happened there, bro?
	Tell them what happened there, bro.
	Yeah, so basically, and I'm starting to do a couple of reels on this.
	Some of the content creators, and I don't have anything personal against these guys, obviously, you know.
	So, I mean, there's some red flags out there you gotta watch for.
	So there is, you can Google it, go to the IRS Dirty Dozen, you go in there, and every year the IRS publishes 12 The Dirty Dozen things that are tax strategies and loopholes and things that these promoters use.
	And I've seen a lot of videos out there on social media that are promoting these things.
	Go in there and you can see what the 12, every year they publish it and they update it.
	See what the IRS is coming after.
	So if you've got somebody who wants to promote and push you like an insurance captive or something like that, like, whoa, these are things that the IRS are coming after.
	So that's one thing.
	These are red flags that some people tell me, like, oh, yeah, create this business and make a loss, produce a loss and put it on your tax return and offset it against your W-2 wages.
	That's a huge red flag.
	That's a big no-no for me.
	So yeah, just to add that out there.
	Also, if you do the Patreon, I forgot to add, you're going to get the three books I already have for free.
	So instead of buying them, so the guys I know they wanted to go out there and buy them, it might be cheaper just to do the Patreon thing and you're going to get those books already.
	All right.
	This was a really informative episode, man.
	And real quick, I'll give you all a little summary rewind.
	So the seven things, seven ways to cut back your taxes, guys, for the year 2023.
	1031 exchange, cost segregation, section 179 and bonus depreciation.
	Number four was 401k Roth and traditionals.
	Number three, a health savings plan.
	Number two, the right bookkeeper.
	And then number one, obviously having the right CPA. These are all things that are critical and necessary to cutting back your tax liability, guys.
	And then if you're a W-2 earner, Steve has a thing pretty much for $1, 10 ways to cut your tax liability as W2 earner, because as you guys know, you guys get taxed at the highest level.
	But these are the top seven ways to pretty much save on paying Uncle Sam legally, of course, so that you don't get Wesley sniped.
	We're going to be back with some girls here probably in the next 30 minutes or so.
	Before 10.
	And yeah, guys.
	He is Steve.
	Seeing Beyond the Numbers.
	Follow him on Instagram, guys.
	And you're going to see a lot more of him in the future, hopefully.
	And we'll catch you guys.
	Peace.
	Peace.
	Perfect.
	Thanks, guys.
	I ran.
	I ran so far away.
	I just ran.

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