Wealthy Real Estate Investor Rob Rowsell teaches his secrets on how you can reduce tax drag. Maximize your investments and avoid tax losses the way rich real estate investors do. Learn the secrets in part 2 of this 2 part series!

Reduce Tax Drag On Your Investments Today

After wrapping up Part One of the Reduce Tax Drag series, Rob segued into the next two tips.

Set Up An LLC And Pay With Pre-Tax Dollars

Rob introduced the idea of Paying with Pre-Tax Dollars. This means you should push all legitimate business expenses to your business. This way, you will get an automatic discount. Business owners need to set up an LLC in order to run those expenses. When you’re a W2 employee, you pay taxes at the end of the year, and hopefully get a return from the government. LLC business owners can take out expenses on a lesser number. This means getting money back for deductions like fuel and your office utility bills. Robert Kiyosaki details this in his bestselling book Rich Dad Poor Dad.

Plan BEFORE You Play So You Can Reduce Tax Drag

As Rob has stressed many times over, you must Plan BEFORE You Play. Meet regularly with your tax strategist or CPA, so they are in the loop about your investment plans. Make sure your accountant knows your strategy in advance, so they can fill you in on the potential tax impact. This isn’t always fun, but the pain in order to potentially save and invest $50,000 instead of paying it in taxes is worth it.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Wealthy Investor Rob Rowsell shares his ultimate tax saving secrets in part one of this two part series. Watch and read on to learn the first two of four tips. If you want to make the most of your investments and avoid tax drag, this is the series for you.

Tax Saving Secrets, 1 and 2

Rob defines “tax drag” as the wealth draining resistance of taxes on your investments and earnings. It can cost you cash today, as well as robbing you of future compounded earnings from those lost dollars. In order to get ahead of this trend, you should meet with your accountant regularly. Specifically, a September meeting with them to report the financial moves you’ve made thus far in the year is a great idea. Once your CPA knows that, they can help you formulate strategies in the remaining three months to minimize the taxes you will owe.

Structure Over Deduction

The first of Rob’s tax saving secrets is Structure Over Deduction. Everyone looks for deductions at tax time. If you are not also structuring how you handle money year round, you won’t need to lean so heavily on deductions. Make sure to pay yourself tax efficiently. Rob’s financial advisor estimated that he should be earning a salary in a wide range. By paying himself on the low end of that range, Rob is being conservative monetarily. Remember, when it comes to your own taxes, you are the quarterback!

Tax Rate Arbitrage is another of Rob’s structure tools in his tax saving secrets toolbox. He formed a management company as a C Corporation, which received a fee from his real estate and automotive repair businesses for services rendered. The C Corp is taxed much more efficiently than his other businesses, so he saves himself cash all around. Entities have two reasons: asset protection and tax savings.

Another essential structure element is to Plan Your Exit Before You Go In. In the real estate business, the end game is often obvious. You may have a written three to five year plan for your multi-family properties investments. Whatever money you invest will help your tax advisor give you the right advice as your structure your businesses to save on taxes.

Tax Saving Secrets Continued: Invest Tax Efficiently

Rob continued with a game changing hack you can apply today. Savvy tax planning is the lowest risk way to immediately boost your investment returns. That includes knowing your end game and knowing which wealth bucket you are investing from.

Generally, long term capital growth investments go straight to your taxable accounts. This is because they are not taxed at the highest rates. “Ordinary income” cash flow investments go in tax advantaged accounts instead. Rob used the example of a short term loan he made to house flippers in his network. Using money from his Roth IRA, he was not taxed on the loan, and the returns could go back in his retirement to continue compounding.

Conclusion: Tax Saving Is A Revenue Stream

Remember, money saved on taxes is a revenue stream! Once again, tax drag is the opposite. It’s lost income from annual taxes paid. If you hadn’t paid those taxes, you could make compound returns on those funds over time.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

In this final installment of his Winning the Money Game series, Rob Rowsell encourages us to reimagine and plan life after retirement. You should still have plenty of good years ahead if you’ve followed Rob’s advice. In order to make the most of the post-career era of life, you need to keep up with the times. Never stop learning, and be a good steward of the money you’ve accrued. Don’t take stupid risks with it! This cash will ensure you can follow God’s path for your golden years!

Plan Life After Retirement

You’ve followed Rob’s Money Game advice to the T. Now, let’s reimagine and ask ourselves “what’s next?” Have you ever really thought about what you would do post career when you plan life after retirement? Rob recommends the book “Halftime” by Bob Buford. He has gained a lot of wisdom and a new perspective from it.

We want to take a few key steps when we plan our new life post career. First, we want to Lock In The Win, meaning we want to be good stewards of our ongoing Passive Residual Income, as well as the bag of money we’ve earned for retirement. Never risk what you need for what you don’t need.

Next, we need to Design The Next Chapter. You still hopefully are healthy and plenty of years ahead of you, so live like it! Even if your dreams and goals for the future are huge, write them down, and plan out how you can achieve them.

Stay Engaged and Stay Relevant. It is more important than ever to keep up with ever growing technology and trends. Rob uses the example of automating many of our daily tasks with AI and ChatGPT. These technologies are only going to become more integrated into our world. Therefore, getting familiar with them while they are still in their relative infancy is a good idea. Rob also suggests exploring topics you want to learn more about on Meta Reels and Tiktok, then saving the ones that you find particularly useful to revisit later.

Finally, and possibly most fun, Enjoy the Compound Curve. You have a lot of experience at this point being a wealth manager. At this point, you are accruing wealth with literally no effort through Passive Residual Income. So sit back and enjoy it!

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Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Rob Rowsell reviews the third act in his Winning the Money Game series. This focuses on the shift to Passive Residual Income (PRI). This involves changing your mindset and strategy for earning and investing your money.  Transitioning to exclusively PRI revenue streams is a crucial component to your financial exit strategy.

Passive Residual Income Explained

This third stage of the Money Game focuses on a transition, meaning a “mental shift”. Many of us have an aversion or fear of growing wealthy. We have all heard that “money is the root of all evil”, but did you know that saying is actually a misquote of the Bible? 1st Timothy 6:10 says For the love of money is the root of all of evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows (emphasis in bold by this blog’s author). When we put money in the proper context, we can make that shift in our mindset. Money is a tool to help us live the life God intends for us to, not a false idol.

At this stage of the Money Game, we are shifting from a combination of Active Income and Passive Income to strictly Passive Residual Income. There is a difference between Passive Income and Passive Residual Income. An example of Passive Income is buying a property, fixing it up and holding it awhile, then selling for a profit. Also, you could call that specific situation earning “Capital Gains”. PRI means regular dividends you received from an investment passively – true mailbox money!

As we transition to Passive Residual Income, we need to plan our exit. How and when will we achieve financial freedom? This means no longer being dependent on a job or passive income investment to pay the bills. It also does not refer to the “bag of money” you’ve been saving from your career for retirement. We want a regular check arriving in the mail that will outlast that 401k, and give us the freedom to live comfortably and help others.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Now that you’ve learned how to stack up cash, you’ve got to learn how to invest your assets! Investing for maximum return means building assets and then repurposing them over time. Invest wisely and watch your wealth grow!

Investing For Maximum Return – Building Assets and Repurposing Them

In Act 1 of our Money Game series, Rob detailed strategies for maximizing our active income earnings. Act 2 is all about investing for maximum return. Specifically, we are buying and building assets that will return us cash.

When it comes to investments, Rob describes the assets that return compound interest as the “8th Wonder of the World”. Apologies to Andre the Giant. The concept of the “doubling clock” comes up. When you invest in assets that accrue compound interest, and hold them, they will double in value over time. The goal is to invest your surplus money and make it work for you. After all, you are not just investing in assets. You are also investing in yourself. And nobody wants to invest in themselves unless they are investing for maximum return.

When you start the Wealth Clock early in life, you have the distinct advantage of time. The more time you hold good investments that compound in interest, the more “doublings” you will enjoy. Unconventional investments with unproven parties are much more tempting when you are younger. “The greater the risk, the greater the return”. If you start investing later in life, you have a whole lot less wiggle room, and tend to stay in your comfort zone. After all, you don’t want to gamble and lose it all.

Want To Learn More? Join Our Community!

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

In this 4-part mini-series “Winning the Money Game”, Rob Rowsell details the start of the journey: earning active income, so you can then start investing said income. It’s all about you! Learn how to maximize your personal earnings, reduce your taxes (legally!), and control your personal expenses, and you’re on your way to winning the money game.

Earning Active Income – The First Step to Winning the Money Game

Rob kicks off the Money Game discussion by laying out three components to earning active income. These include maximizing your personal earnings, reducing taxes, and controlling personal expenses. When you all all of these factors up, they equal a surplus of cash to invest.

Maximize Personal Earnings

On your way to winning the money game, it’s no secret that you need to start small. Remember what your grandparents told you when you got our first job? It’s not what you make, it’s what you save! Well, it can often seem impossible to save and invest when you’re not making much. This is a tough economy, but there are many strategies to maximize your personal earnings in order to invest more. Whether you own a business or earn a W2, you are earning a regular check and can find ways to save a portion of it.

Legally Reduce Your Taxes from Earning Active Income

Money saved on taxes is an income stream! There are many legal ways to reduce your taxes owed, whether through deductions, business expenses, or other expert methods. If you’re not regularly meeting with your CPA, start now. Maybe you have reached the level where your CPA is no longer helping you, and you’ve outgrown them. Investing in a CPA who specializes in high income business owners will pay back dividends when they implement these strategies. Rob has learned firsthand in the real estate sales industry how to take advantage of tax benefits most business owners don’t know about.

Control Your Own Personal Expenses

Another phrase seemingly lost to time with our elders is live within your values. Capitalism is so refined in 2023. Every screen you turn to sings a siren song to you. Buy this, it’ll make you happier. You deserve it. When you have climbed the income ladder to the point where you can actually afford those things, it’s easy to give in. Living within your values is another income stream. If your truck is still running great at 150,000 miles, it will probably still run great at 200,000 miles. Trade secret: you’re happier with a vehicle when it’s paid off! This goes for appliances and mortgages, too!

The End Goal of Earning Active Income: Surplus Cash To Invest

Act 1 of winning the money game may be the hardest. Earning active income from a W2 or business owner wages may not yield enough on it’s own. If that is the case, you must explore your tax advantages and tighten your spending belt. You won’t regret the dividends you earn years down the line if you invest the surplus cash it generates.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Rob Rowsell shares how to build a successful company from the ground up. Rob built a multi-shop auto repair business and invested his wealth wisely. Eventually, he cashed out and sold his business, transitioning to a passive residual income. Here’s how he did it.

Build A Successful Company – Step By Step To An Extraordinary Business

Rob starts out the discussion by introducing us to a five point strategy to build a successful company. This takes in all of the phases, from purchasing the business all the way to cashing out and retiring into a new life post-ownership. Here are Rob’s steps to business success:

Intelligently Invest Your Active Income

Congratulations! You now own a business. Chances are you are working the counter and doing other jobs as you establish the systems and processes your employees will follow. Ideally, others will handle all of the day to day operations once you are more established. Meanwhile, you need to be socking away whatever cash you can from your active income. Opportunities will come along to increase that income as your business grows. As your income increases, your investments should, too. Rob goes into great detail about those investment opportunities in our monthly Zoom meetings. Are you serious about growing wealth as you build a successful company? You owe it to yourself to join the ATL Community.

Pay Yourself Tax Efficiently

There are many tax benefits to owning your own business. You must pay yourself first, but don’t take chances. Make sure you consult with your CPA regularly to find legal tax advantages. The more money you can keep, the more you can invest.

Build a Successful Company by Using Active Income to Build Your Net Worth

Your business is an active income machine. It’s easy to keep escalating your lifestyle as the money rolls in, but avoid going overboard! A few Community members also have worked in the auto repair industry, and can attest that it is a great bang for buck investment. When you purchase and renovate an automotive shop, the revenue will soon pay you back.

Grow Your Company’s Value

Business growth is always an unrealized gain. Therefore, it is extremely tax efficient. Over time, you could very well 10x the value of your business from the purchase price over the years. This could be done by opening more locations and finding new revenue streams. You will not take a tax hit on the value of that business until you eventually put the business up for sale.

Transition to Passive Residual Income Over Time – The Final Step to Build a Successful Company

There are many opportunities to invest your active income. If you play the money game right, you can eventually replace your active income with regular passive residual income. Eventually, that means you can retire and live off of mailbox money derived from your investments. Remember, to build a successful company is only one part of the financial journey. The end goal is to eventually work yourself out of a job!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Multifamily Investor Rob Rowsell explains the nuts and bolts of buy and hold real estate deals. Is this right type of property investment strategy right for you? Watch now and find out!

What Are Buy and Hold Real Estate Deals?

Rob and Claudia only buy two categories of deals. One of them is Buy and Hold real estate deals. When engaging in this kind of multifamily deal, Rob refers to the asset as a Legacy Property. After completing the purchase, Rob holds the property in his portfolio for ten years. Then, he “checks the temperature” of the market to decide if he should keep or unload the investment.

The Velocity of Money Deal category is one example of a Buy and Hold. You buy an underperforming property. Since you can’t keep the units at 90% occupancy, it voids your qualification for a conventional loan. Therefore, you apply for a bridge loan and inject a ton of capital into renovations and attracting new renters. After you’ve finished those tasks, the property is 90% full, and you can refinance the loan. Get back all or most of your capital investment, and let your investors stay on at the same rate of return they agreed to initially. Now, the value play is done. Everyone can sit back and enjoy ten years of cashflow.

Join Our Community

Do you own multifamily properties? Do you want learn how to build wealth through passive income? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Rob Rowsell runs down what is in his real estate buy box. That is to say, what criteria every multifamily property must meet in order to interest him in buying it. Take a look at the population, amenities, and demographics when you’re looking to buy and fill rental properties.

What’s in Rob’s Real Estate Buy Box?

Rob has seen his share of ups and downs in the US real estate market. Thus, he has experienced his share of failures along the way to amassing wealth. Only through these hardships could he learn what he requires to fill his real estate buy box.

1. City Population of 75,000 or More: Filling and staffing multifamily properties is very challenging in a population lower than 75k. The farther from a large metro area you search, the less competition you encounter, but that is for a good reason.
2. Major Airport Within 30 Minutes of the Property: Nobody wants a long drive from the airport to inspect their properties. Due to reliability and available perks, Rob strongly prefers that the airport be a major international carrier.
3. Job Growth of 3-5% Year Over Year
4. Population Growth of 3-5% Year Over Year
5. Building Contains 80 Units or More: This rule of thumb applies for syndications. Smaller complexes may make it into the buy box, but would likely need to involve a joint venture.
6. Built No Earlier Than 1980
7. 7% or More Average Cash On Cash Return Over the Life of the Deal: Knowing you can promise this figure to your investors is key to securing their trust.
8. AAR of 20% Over the Life of the Deal: This means cash on cash amount combined with the increased equity at sale.
9. No Coastal Properties and No Flood Zones: Nobody wants a letter of cancellation or arbitrary, huge increases from their insurance company. These are out of your control, so don’t risk it!

Join Our Community

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!