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Real Money Talks

As an entrepreneur, small business or practice owner, or high-level executive, do you ever find yourself wondering if you’re using all the tax, entity and wealth strategies available to you or if your investments are truly producing all they could be? Happily, you don’t have to put up with that any longer. I have the solution. Real Money Talks! We're having the right conversation about money.
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Now displaying: January, 2018
Jan 25, 2018

Joe Campbell is the Business Development Manager at Provident Trust Group. Provident is a trust company that can self-direct your IRA. When a lot of people think of self-directed IRAs, they think of a traditional IRA where you pick from a list of investment choices where your IRA is held. There is a whole other world of self-directed IRAs that you may not be aware of.

At Provident, you can self-direct your IRA into alternative investment vehicles. It is possible to invest in many different types of real estate and real estate projects from raw land to development. Today we talk about alternative investment opportunities, getting started, Roth IRAs, traditional IRAs, types of 401k plans, having the right team and more.

You can find Joe here:

LinkedIn
CI Bio

Show Notes

  • [01:18] More traditional IRA custodians have a self-directed account which lets you choose from their products. At Provident, self-directed IRAs get you outside of Wall Street and introduce you to some of the alternative assets that are available. Things like real estate, oil & gas, and huge list of potential assets.
  • [02:38] How a self-directed IRA is different from a traditional IRA. With the self-directed IRA, you can invest in things that aren't offered at a traditional IRA. Provident is an alternative asset custodian.
  • [04:09] Creative kinds of deals include island development deals, a marina deal, developing raw land, or renting out land, there is a multitude of ways that real estate can come into play.
  • [05:07] Emerging assets include cannabis, bitcoin, and crypto currencies.
  • [06:15] You need to do vetting and educate yourself on these assets.
  • [06:47] You don't want to do anything that the IRS will view as a prohibited piece of action or deal with individuals that are disqualified. You also want to do arm's length transactions and not buy a house from your parents or rent to siblings.
  • [08:02] You can't pay yourself to do business on properties that are held in your IRA.
  • [08:25] It's important to have a team with tax advisers, estate advisers and lawyers when doing these difficult transactions.
  • [08:53] The difference between a Roth and traditional IRA. The biggest difference is paying taxes now or later. With the Roth, you know what tax brackets you will be in. Your distributions are tax free when you start taking money out at retirement age.
  • [10:41] You have to pay taxes on all of your distributions when you withdraw from a traditional IRA. The Roth can be a very exciting alternative asset vehicle.
  • [11:33] We don't know what the tax rate will be in 20 years. Part of the strategy is you controlling your distributions and your plan.
  • [12:33] With an IRA you need to be a US citizen with earned income. With a Roth there is a top limit, but not on a traditional IRA.
  • [14:00] A 401k and a solo 401k. A 401k is associated with a retirement plan at your employer. A solo 401k is a retirement plan for your business, and you and your spouse as a small business owner or entrepreneur.
  • [16:01] A solo 401k is like a self-directed IRA when it comes to investing in alternative assets. It's the only plan that allows you to take out a loan.
  • [17:13] If you are at a job, you can't roll over your 401k until you leave that job, but you can borrow from it.
  • [18:30] When calling Joe they will ask questions and find out what phase you are in and then fill out the applications. Then the accounts will be established in less than 48 hours. To get the account ready and funded it can take about 30 days give or take.
  • [20:10] People in the traditional space will want to keep you where you are with high fees and more taxes.
  • [20:47] A deal where a client purchased raw land and held it for over a year. She then resold it and got a premium for it by a casino company and became a IRA millionaire.
  • [21:49] Mitt Romney and former Facebook employees used their Roth IRAs to invest in startups in their developmental stages. If the startups get huge, it is exciting to talk about.
  • [24:19] Educate yourself on the options that are out there. There are alternative investment strategies that you can do that may be things that you are already familiar with.
Jan 18, 2018

Weldon Wulstein is my CFO, CPA, and an extraordinary tax strategist. Last year, he helped people save or get back about 3 million dollars in taxes. Weldon is driven to  help people find tax strategies that enable them to keep more of their own money. He is so good at what he does, because he looks at it as a challenge similar to solving a puzzle.

He is here today to talk about the new tax code. This is our first of many podcasts on this topic. This tax reform bill is sweeping and has the biggest changes since the 1986 tax reform bill. A lot of the benefits are directed towards businesses and entities. Weldon shares changes and strategies to begin creating a smart tax saving strategy.

You can find Weldon here:

Ask Loral

[bctt tweet="'You have to know your exit strategy. Are you looking for a 3 -5 year play, or are you planning on refinancing at some point? You have to start off with the leadership team.' Dave Hare" username="liveoutloud"]

Show Notes

  • [01:26] Weldon wants us to keep more of our money as opposed to giving it to the government. This is the goal that guides him. He sees it as a puzzle and he loves puzzles.
  • [02:39] The creativity puzzle solving aspect of finances and investing.
  • [03:07] How Loral and her team are the alternate finance people, similar to an alternative doctor.
  • [03:32] How sweeping the tax reform bill is. It has the most significant changes since the 1986 tax reform bill.
  • [04:09] There is now a 21% flat corporate tax rate.
  • [05:11] The top rate bracket also went down from 39.6% to 37%.
  • [05:31] Weldon's favorite change is the tax deduction that offsets taxable income for business profits. This deduction comes off of your taxable income. Any business with a net profit gets a 20% deduction of that profit.
  • [07:39] Good CPAs will know what is going on, but not everyone will figure out how to utilize these reforms the best.
  • [08:31] Sole proprietors are responsible for net taxes plus the 15% self-employment tax.
  • [09:20] Let's say you have an s corp and pay yourself $100,000. With $50,000 on a W-2 and $50,000 as a net profit. The net profit deduction is only attached to that $50,000 net profit. You will need to find the best percentage to take as a wage versus taking it as a profit.
  • [10:31] The worst parts are probably the elimination of the mortgage deduction and the elimination of property and income tax.
  • [10:54] You can only deduct $10,000 a year in state income tax and property tax.
  • [11:36] Your mortgage deduction is limited to a home value of $750,000.
  • [12:16] States don't have to ratify these changes or at least it is not guaranteed.
  • [12:59] Only a few of these items will be affected for 2017 taxes. These are mostly for 2018 and going forward. This leaves some time to plan the best tax strategies.
  • [13:40] You can't just do one strategy. The plan has to be individualized.
  • [14:24] Rental property write offs are still in place for mortgage interest and property taxes.  
  • [15:26] These changes will encourage people to move into having an LLC or corp of some type.
  • [16:08] AMT tax won't affect most people making under a million dollars.
  • [17:38] There are now limitations on entertainment deductions. You can deduct the meal, but not the entertainment portion.
  • [18:58] Think about changing what you are doing to fit the tax code, so that it will fit and become deductible.
  • [19:50] All of the final regulations aren't out yet. Such as the use of gift cards.
  • [20:50] The value of what you can transfer in an estate has been doubled to 10 million dollars indexed for inflation.
  • [21:53] In about 30 days, there should be some final regulations around these questions. Payroll systems even have to be completely redone.
  • [23:40] Use caution when looking stuff up on the Internet and make sure that it is up to date.

Links and Resources:

Ask Loral

 

Jan 12, 2018

Traditional families have been changing over time. Things just aren’t the same as the days of Ward and June Cleaver. Statistics show that 62% of families are either blended or headed by single parents. I am a single parent, by choice, and this choice comes with challenges and a sense of freedom.

Today, I’m talking with one of my clients, Melissa Mackey, who became a single parent and asked me how to be effective and get it all done.  We discuss how no one really understands what it is like until they do it. We also talk about dealing with guilt, freedom, and allowing ourselves the space and time to do what we need to do to run our businesses and keep ourselves healthy.

 

Freedom will never happen if we don’t allow ourselves that space and time.

In This Episode of Real Money Talks: 

  • Practicing the art of receiving and keeping our cups full
  • Allowing yourself space and time by not feeling guilty
  • Traveling with babies and people offering to help
  • Teaching our children what it takes to be fearless
  • How nothing can really prepare you for the journey

 

 

Subscribe, Rate & Share Real Money Talks!

       

Loral Langemeier is on a mission – to educate and empower the Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!

Jan 11, 2018

Dave Hare is here to talk about money rules and due diligence. Dave and I do a lot of projects together, and I am going to have him on the show on a regular basis. We are also going to use our new marina in Texas as an example of how a deal gets done. But first, we are going to talk about due diligence and money rules and how the rules come about for people.

 

You can find Dave here:

Loral’s Real Money Talks

Ask Loral

 

Show Notes 

  • [01:17] It's all about planning. These aren't deals that close in 30 days or less. These can be stressful and time consuming, and you could end up walking away from the deal.
  • [02:10] Make sure that your investment plan is part of your money rules not part of someone else's rules.
  • [02:53] How investing starts with money rules.
  • [03:06] What is your exit strategy. Refinance or short term play? Begin with your leadership team.
  • [03:33] Do you have a strong operation and finance team? Bring in someone who knows operations and who has an equity play. These answers are the key when speaking with bankers and investors.
  • [04:19] Who has oversight on the books? Is the business or investment family owned?
  • [04:59] Think of deals as a fix and flip.
  • [05:46] Dave ran the numbers on a deal and realized a family member had been stealing from the rest of the family. This was a deal they had to walk away from.
  • [06:24] Dave and Loral do thorough background checks on everybody involved when doing deals.
  • [06:49] Numbers may or may not make sense. Make sure there are long term leasing options and good relations. Assets are your future. They need to support the business going forward. Look at the story behind the story.
  • [08:04] Don't close before you find the story behind the story.
  • [09:19] Dave found the marina business through networking. He signed up for meetups etc. He found this contact at one of Loral's events.
  • [10:48] Get yourself out there. If you want to do it do it and get out there and make yourself known.
  • [11:25] The marina deal, due diligence, background checks, Dave's due diligence list is 12 pages long. It lets the people on the other side know that you mean business.
  • [12:25] Create a letter of intent before making a purchase agreement. A letter of intent is a non-binding contract. This gets the discussion going and let's you start working on due diligence and financing.
  • [13:38] Look at the owners background and story, the customer base, the boats, the buildings, and everything you can look at.
  • [14:09] How each person on the team brings something unique to the business. Never go alone especially on your first business. There is something that you will miss.
  • [14:43] Have team members with experience, and have someone who understands finance and accounting.
  • [15:29] You need to seek out smart knowledgeable people for your team. The buddy clubs aren't going to work because they don't have enough skill set on the team.
  • [16:23] You have to understand what someone brings to the table and what their exit strategy is.
  • [16:52] The components of the deal. Knowledge and experience will get you a seat at the table. Equity side and debt side.
  • [17:36] They approached the owner who wanted to do a quick sale. Seller financing under 50% of the value of the property. Then they had to go out and find the 55% of the loan with equity partners with an option to refinance. They are doing about a million dollars in renovations. They want to rebuild the area back to it's 1950's glory days of farmers markets and bands etc.
  • [19:34] They structured the deal with the sellers financing. This helps motivate the seller. They were also able to do a second position with the owners. The did have to pay another 1/4 percent and walk away fully financed.
  • [20:38] Deal creativity. Carry backs etc. Use creative deal structures with the use and return of the money. First money in gets more, because they have taken the highest risk.
  • [21:36] The rehab money won't get equity. There is quality of money. When you first start a deal, you have to give something up.
  • [23:08] They have a one-year note that gets double digit returns.
  • [23:36] The important thing is background checks. You have to do them. Don't be afraid to walk away if you need to.
  • [25:30] We are here to teach you the reality of owning real assets.

 

Links and Resources:

Ask Loral

Loral’s Real Money Talks

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Jan 10, 2018

Most entrepreneurs struggle with learning and doing many things at the same time. Especially, when they are just starting out. They are also usually short on time and soon learn that outsourcing and finding people who specialize in the one thing that they need is the best way to go. Still, that leaves them with the issue of finding and managing tons of different specialists.

Today, I talk with a friend and colleague of mine who has developed a solution for this very problem. Alexander Ford offers a done-for-you solution where he finds, hires, and manages all the specialists for you. This solution results in cost savings. He also develops an incremental strategy so that new businesses can focus on what they need most, and in the correct order.

 

"A results focused strategy is more efficiently executed with a partner that implements your specific plan."

 

 

In This Episode of Real Money Talks: 

  • Challenges of finding and hiring specialists without prior knowledge
  • Developing an incremental strategy that serves your business best
  • Having a results focused specialty developed by a knowledgeable partner
  • Creating a hard infrastructure and modernizing technology
  • Turning a website into a “cash register”

Subscribe, Rate & Share Real Money Talks!

       

Loral Langemeier is on a mission – to educate and empower the Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!

Jan 8, 2018

In the past, people could acquire their needs and made their trade through the barter or the exchange method. Back then, life was simple, and people’s needs were undisputedly more fundamental than the needs of this present generation. As time passed by, people changed. And with that, their needs also evolved. Today, money has undoubtedly become one of the necessities of life. It has become a need to survive. We are so accustomed to using money in our daily lives we don’t even stop to wonder where it came from or what it does.

 

Today on the Real Money Talks podcast, I’m going to share with you that the money available to you depends on how you make it – you can earn it as an employee, as an entrepreneur, or as both. Remember that how you make your money significantly impacts everything else – your taxes, deductions, relationships, and even the way you contribute to the community. My hope is that at the end of this episode, after knowing and understanding the banking system and money works, you will be able to make an educated choice about how you want money to come to you and the payoffs that go with choosing how to acquire it the wise way.

 

 

The safest thing is to get smart, to get knowledge, to get confidence, and to get access. That’s security.

 

 

 

In This Episode of Real Money Talks: 

  • A brief history of the Federal Reserve Bank and the foundation of what set the world banking system in order
  • How money comes to you – the difference between a corporate bank account and a personal bank account
  • How you can maximize your tax strategy by understanding how the banking system works
  • Ways you can make money by maximizing tax savings and investing in double-digit returns
  • How to look “attractive” to financial institutions
  • Why you need a personal relationship with the bank or the banking officers despite the quick and easily accessible online banking made available nowadays

 

Resources Mentioned:

 

 

Subscribe, Rate & Share Real Money Talks!

       

Loral Langemeier is on a mission – to educate and empower the Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!

Jan 4, 2018

The cannabis industry is one of my favorite subjects, and it will be a regular topic on this show. Ben my partner in the cannabis industry is here to talk about how he went from being a corporate guy to operating a dispensary and more in this exciting new industry.

We talk about some of the requirements and licensing details along with compliance of state and local jurisdictions. We also touch on hiring the right political consultants and understanding the ins and outs of creating a business that is scalable. We also talk about  the importance of giving back and helping the community.

Show Notes

  • [01:14] Ben has been fascinated by the industry in the last five years. He didn't know anything about it, but he kept getting pitched to.
  • [02:07] He had a negative perception about marijuana and didn't know anything about it. Then he started learning about the medicinal benefits and was introduced to some opportunities in Colorado.
  • [02:44] His first deal was in Colorado. He was first introduced through an attorney. After meeting patients, I quickly became fascinated by this space.
  • [03:49] He then met other people in the space through this attorney. Entrepreneurs and dispensary owners who had their own little grow space. The regulations evolved before his eyes because it changed so rapidly.
  • [05:03] Ben quickly learned who was growing their business and had good a operational process.
  • [06:25] The trend of the truth in any business that you are learning about.
  • [07:08] How there are so many expert consultants who haven't really actually built a marijuana business or built a business from the ground up.
  • [07:59] There are a lot of moving parts in this space. Time is money and making the right move is critical. Getting the license can be a complicated process and it may involve a political aspect.
  • [09:27] Even if the state provides you a license you need approval by your local jurisdiction. This includes a suitable location allowed by the local jurisdiction, and it has to meet the separation requirements.
  • [10:36] You also have to be the type of operator that they want in their city. You have to get to know the people making this decision and help them to understand why you are different.
  • [12:21] The people making these decisions want the best for their community. Separate yourself out as the best applicant by looking like a professional. You also want to be someone who is going to operate legally.
  • [14:46] They also want people who are going to help and give back and improve the community. Be sincere and legitimate about what you are going to do. Have a realistic executable plan.
  • [16:16] The importance of having a person on your team in the political camp. Each jurisdiction needs someone who understands the local market and the process. Be selective when choosing your political consultant. You want someone who has respect and trust of local politicians.
  • [20:29] How a consultant can put you in front of the right people, but it is actually the package that you put together that gets you the license.
  • [20:57] How do you get in line to get a license? It all starts with asking questions and finding the state and local processes and filling out the application.

Links and Resources:

Ask Loral

 

Jan 3, 2018

If you have the intention to make money, your talents and hobbies are a great starting point. Launching a business by doing something you’re good at implies that you are serious about making money. The perks of having better tax strategies come in once you have established your business. If your sales start to weaken, assess the kind of service you provide and take it from there.

In today’s episode, I share with you the upper hand in serving over selling. I also discuss how being in service to others gets you the sale. You will make a remarkable difference if you choose to serve to sell rather than selling just for the profit.

I want you to get clear in your DNA that you serve lives, and that’s why you sell hard.

In This Episode of Real Money Talks: 

  • Where money comes from
  • How your thoughts and energy affect the outcome of your financial situation
  • Reasons why you should serve others with a lower price offer
  • What happens when you don’t make the sale

Subscribe, Rate & Share Real Money Talks!

       

Loral Langemeier is on a mission – to educate and empower the Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!

Jan 1, 2018

Millennials approach real estate investment differently from the other generations. It’s easy to determine their preference by looking at where they put their money on - travel, wine, retail, a cup of coffee. They buy practical things and prefer open layout living spaces that are not bigger than what they would need. So, the question is, are Millennials really that far off from buying real estate?

Today, I talk about some updates on the Millennial generation - their buying power and capacity, and their general mindset regarding real estate investment. I also discuss some of the characteristics of Millennials that set them apart from the older generations and the reasons behind the statistics and survey results about Millennials and their spending choices.

 

Millennials aren’t going to compromise their experiences in exchange for a big mortgage.

 

In This Episode of Real Money Talks: 

  • Statistics of home buyers according to generation
  • Rules of thumb for Millennials who want to invest in real estate
  • What to do if the mortgage lender requires you to have a job
  • Downsizing versus rightsizing
  • Norms and statistics regarding money allocation
  • Trends in transferring the family wealth from one generation to the next

 

Subscribe, Rate & Share Real Money Talks!

       

Loral Langemeier is on a mission – to educate and empower the Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!

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