Gary Pinkerton talks with Jack McGuinness, former airborne ranger with the US Army's 10th Mountain Division and co-founder of Relationship Impact, about how being a first responder or serviceman gives you the skills you need to run a business. Jack explains what he did when he got out of the service and how he worked his way into the business he's running now. Plus he throws in some very sound business advice for those who are used to the structure of military.

Key Takeaways:

[2:04] Jack's first business experience after he left the service

[5:36] How Jack's company has changed recently

[9:38] Most companies haven't figured out they need rigorous procedures

[14:26] The skills being a first responder instills in you are extremely valuable to companies

[17:42] It's important to have a defined company culture so that people can understand what to do when situations arise

[20:44] Don't assume that structure will be there, don't be frustrated when it's not, and don't assume that putting in the same structure as the military will work

Website:

www.Relationship-Impact.com

Jason Hartman talks with Salvatore Buscemi, Managing Director of Dandrew Partners New York. Dandrew Parnters specializes in non-performing residential mortgages. Salvatore talks about why the real estate market collapsed, dealing with inexperienced investors, and real estate crowd funding. It can be hard to find legit real estate deals, always ask the hard questions first. Many crowd funded deals are dealing with a less experienced investor who might not be able to bring a lot to the table.

Website:

www.MakingTheYield.com

Gary Pinkerton talks with Nev K, author of From Financially Stressed to Money Blessed: Become Financially Independent and Retire Early at Any Age, about his path to real estate investing. Nev describes the mindset you need to have as an investor, how the changing society is changing the way we need to invest and his one huge piece of advice for everyone as we head in to 2019.

Key Takeaways:

[4:14] How Nev ended up as a real estate investor

[7:28] Fear is keeping us from doing the things that will move us forward in life. It's okay to feel, but don't let them shut you down

[9:45] Kev thought he was investing in real estate when he bought REITs, but eventually learned that wasn't exactly true

[16:39] There's an ability to have a different exit strategy with single family homes, but it's hard to scale

[20:35] The segment of society that has no interest in owning things seems to be growing

[23:19] Nev is trying to teach people how to use debt strategically

[25:48] Nev's 2019 advice for listeners

Website:

www.1DealAway.com

From Financially Stressed to Money Blessed: Become Financially Independent and Retire Early at Any Age

Gary Pinkerton starts off today's show with a little news from his first short-term rental property. Fortunately it's good news. Then, Jason Hartman talks with Brandon Hall, CPA, about short-term rentals and taxes.

If you are using your buy and hold properties as short term rentals, through a company like Airbnb, you may be required to pay an additional 15.3% self employment tax. Although it may seem like a gray area to you, the IRS considers it an active business and will take note of which schedule you are filing. Short term rentals require more of your labor and your time which rarely gets accounted for when calculating costs. Considering all the aspects of short term rentals versus long term buy and hold properties will shield you from future surprises.

Key Takeaways:

[7:02] Airbnb investors also have a 15.3% tax on active income

[8:13] Monetizing the value of your time. Automated business systems allow me manage my real estate in only 30 min per month

[11:01] It’s more time and labor intensive than a buy and hold property

[13:50] A complicated scenario in setting up short term rentals

[16:49] Short term rentals may earn more but the time is not factored in

[17:45] Schedule E or Schedule C?

[19:47] The IRS may be bringing on the audits

[21:33] A 5 year depreciation schedule

[23:05] The diminimous safe harbor

[25:23] 500 material participation is solely for rental properties

[28:06] An example of a three unit qualifier for material participation

[29:53] Long distance self management is possible and maybe easier

[31:35] Segmented depreciation, cost segregation using a sears catalog

[34:41] Feasibility studies are expensive

[36:43] Everybody needs a home office

Mentions:

www.TheRealEstateCPA.com