Mar, 2024

🤯 Hidden Benefits Of Commercial Real Estate You Never Knew!

Investing in Commercial Real Estate may seem risky. If you do it right though, there are tons of hidden benefits – not to mention the huge profits! Successful real estate investor Rob Rowsell explains how multifamily investments qualify as commercial real estate, just like storefronts and other commercial retailers. Rob also explains the benefits of a Triple Net Lease, and the importance of carrying the right insurance coverage. This is a great primer for real estate investing beginners.

Is Investing In Commercial Real Estate For You?

A participant on a recent Inner Circle Community call joined in on Rob’s Q & A. He recalled the saying that all property investors end up investing in commercial real estate. Is that really true? For Rob, it is, but in more than one way.

Rob explained that real estate professionals refer to multifamily investments as “commercial residential properties”. Since multifamily is Rob’s bread and butter, you could say he is deeply entrenched in investing in commercial real estate.

He also invests in Triple Net Lease properties. These range from single tenant buildings, such as Walmart stores, to strip malls housing multiple businesses. There are variations on the Triple Net Lease model. Rob explains that when you invest in a True Triple Net Lease property, the tenant pays for taxes, insurance, and maintenance. You are free and clear to invest or spend their rent checks, without paying for any of those bills. However, Rob always takes out an additional insurance policy on each property just in case tenants’ policies lapse or get canceled.

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!

Jan, 2024

Unveiling A Wealthy Investor’s Ultimate Tax Saving Secrets!

Wealthy Real Estate Investor Rob Rowsell is here today to share his ultimate tax saving secrets in part one of this two part series. Let’s all watch and read on to learn the first two out of four tips. Do you want to make the absolute most out of all of your investments and avoid the scourge of tax drag? Well then, this is the series for you! Let’s go!

Rob’s Tax Saving Secrets Revealed, 1 and 2

Rob starts off by defining the often discussed concept of “tax drag”. Tax drag is the wealth draining resistance that taxes can make on both your investments and your earnings. Not only can it cost you cash today, it can also rob you of potential future compounded earnings from all of those lost dollars.

How can you as an investor get ahead of this disturbing trend? First off, you will need to start meeting with your accountant on a regular basis. Specifically, scheduling 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 is aware of those moves, then they can help you formulate strategies in the remaining three months. These strategies will help you to minimize the taxes you will owe at the end of the fiscal year.

Save On Taxes By Emphasizing Structure Over Deduction

The first of Rob’s tax saving secrets we will discuss is Structure Over Deduction. All of us will look for deductions when it is tax time. If you are not also structuring how your money is handled during all twelve months of the year, then you will not need to lean so heavily on those deductions in April.

One example of this strategy is to make sure that you pay yourself tax efficiently. Rob’s financial advisor once estimated that he should be earning a salary in a wide range. By paying himself on the low end of that proposed dollar range, Rob is being conservative monetarily. Remember, when it comes to paying your own taxes, you are in charge. You are the quarterback on the field!

Rob Defines The Concept Of Tax Rate Arbitrage

Tax Rate Arbitrage is another one of Rob’s favorite structuring tools in his tax saving secrets toolbox. Rob decided at one point that he would form a management company structured as a C Corporation. That C Corp received a fee from both his real estate and automotive repair businesses for the services that they rendered. The C Corp was taxed much more efficiently than any of his other businesses were. Therefore, he saved himself money on taxes all around. Entities such as a C Corporation exist for just two reasons: in order to protect your assets, and to save you money on your taxes.

What Does It Mean When You Plan Your Exit Before You Go In?

Another essential financial structure strategy is when you Plan Your Exit Before You Go In. In the real estate business, most investors’ end game is an obvious one. You may have a written three to five year plan in place for your multi-family property investments. Whatever amount of money you choose to invest in each of them will help your tax advisor to give you the best advice. That means he or she will show you how to structure your businesses to save on taxes.

Tax Saving Secrets Continued: Invest Your Saved Taxes Efficiently

Rob continued with a game changing hack that you can apply today! Savvy tax planning is the absolute lowest risk way to immediately boost your return on investment. That strategy means knowing what your investing end game is. Savvy tax planning also includes deciding which wealth bucket you will be investing money from.

Generally, your long term capital growth investments will go straight to your taxable accounts. This is because they are not taxed at the government’s highest rates. “Ordinary income” cash flow investments will go in tax advantaged accounts instead. Rob used an example from his own investment history. He once made a short term loan to some house flippers in his investing network. Since he used a sum of money from his own Roth IRA account, he was not taxed on the loan amount. Also, the returns from that investment could go right back into his retirement fund. That way, those returns could continue compounding.

Conclusion: Money Saved On Taxes Is A Revenue Stream

Remember, all of the money you save on taxes can be counted as a revenue stream! Once again, tax drag is the polar opposite of a revenue stream. It is lost income from the annual taxes that you pay. What if you had not paid those taxes? Then you could have made compound returns by investing those funds over a period of time.

Join Our Real Estate Investment Community Today!

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

Oct, 2023

7 Investment Tips for Business Owners

Multifamily real estate investor Rob Rowsell outlines the 7 Investment Tips for Business Owners. You can take total control of your finances when you invest profits intelligently! Compound interest and your own unique advantages are just two facets of your wealth building journey. Make sure you also have an exit strategy…from life itself! Pass your estate on seamlessly to your heirs, but not all of it. Most of it should be given away to good causes.

Breaking Down 7 Investment Tips for Business Owners

You want to build a business, and not a job, right? Of course you do! These are the seven investment tips for business owners who want to grow into a passive income and out of the rat race.

Tip 1: Grow Your Business

If you want to have money to invest, you have to grow your business. How? Stack cash! In order to stack cash, you must increase your gross sales, gross profit, and net profit.

Tip 2: Intelligently Invest Your Profits

Once your cash is stacking up, investing it wisely is key. Set aside spare time for education outside of your business. When you look at yourself from an outside-in perspective, you can identify your advantages in the marketplace. Some business owners, such as Rob, have found their fortunes in real estate investing. Other investments may play more to your strengths. Over time, the money you put away for your outside investments will overtake your annual salary.

Tip 3: Control Your Personal Spending and “Leakages”

Live within your values, not your vanity! It’s hard to fill a bucket with water when there are little holes all over it. In much the same way, you can nickel and dime yourself out of untold wealth with unneeded purchases. Think of how much that former smokers estimate they save each year after quitting. Now, think of your daily candy bar or Starbucks habit. How much spending can you avoid each year by giving that up? Better yet, what if you invested all of that money in a mutual fund with high yield compound interest?

Investment Tips for Business Owners – Advanced Steps to the Finish Line

Tip 4: Actively Reduce Your Tax Drag

It’s not what you make, it’s what you keep! Saved taxes is an income bucket. If you find (legal!) ways to save on taxes, investing that money can equal huge cash returns over time! Remember, you are the quarterback of your finances. Nobody will care as much as you should! That includes your CPA and investment strategists, so don’t just blindly trust them to do the right thing every time. You’re not their only client, and everybody makes mistakes, so keep an eye out.

Tip 5: Avoid Stupid Capital Losses

We’ve all been tempted once in a while by new financial trends promising big short term returns. Hopefully, you have not been conned by cryptocurrency schemes or other random investments with no due diligence. Everyone (including Rob!) has fallen for this kind of snake oil. Don’t get fooled into thinking that you can successfully invest as easily as you can run a profitable business. Line your pockets, and not a con artist’s!

Tip 6: Let Time Compound My Net Worth and My Advantages

When you put the previous tips into practice, the goal is to build an additional wealth engine. This engine is independent of your business. The longer you work at establishing it, the less work you will need to put into it, as the engine will start running without your help. How? Once again, remember that the keys to starting this engine and keeping it running are using the education you’ve acquired in the marketplace to gain experience. Nobody starts out as an expert in any given field. If it were easy, everyone would do it. Putting in the work over time will both compound your net worth and your advantages.

Tip 7: Build My Estate Plan and Philanthropic Legacy

As you approach the finish line of your career and life, money will be less and less of a worry. Since you have built passive income over time that will serve you in retirement, you should turn your thoughts to what that money can do for others after you die. After all, you can’t take it with you! You invested your wealth both to provide a comfortable retirement and to help your survivors.

A staggering 70% of all wealth transitions do not end well! Regarding inheritances for your family, Rob recommends the book Preparing Heirs. It’s a game changer! Bottom line, choose an amount of money that can help your heirs live comfortably. This shouldn’t be an extravagant figure. Then, you should pick an age when your heirs will be mature enough to wisely invest that money. You should give the majority of your wealth away to philanthropic causes. We all know that helping others through scholarships, church mission funds, or other good causes will do exponentially more good than just giving it all away to our kids.

Conclusion – Investment Tips for Business Owners

That was Rob Rowsell’s quick and dirty outline of seven investment tips for business owners. These are the same strategies Rob has used for years, literally working his way up from nothing. From a homeless drug addict to working in an auto repair shop, to then owning multiple shops, to finally selling those businesses in order to concentrate on real estate investing. Most importantly of all, he also teaches others to build wealth like he has. That means you! If Rob did it, then you can too! Why not join the ATL Community and let Rob guide you personally? Sign up today.

Sep, 2023

Kinds of Real Estate Deals Explained by a Successful Investor

Wouldn’t it be great if someone explained the kinds of real estate deals in easy to understand language? In this video, successful multi-family property investor Rob Rowsell does just that. Are you a cash flow investor? Perhaps are you looking for back end equity instead? Either way, you will learn the nuts and bolts of these investment deals in this video.

What Kinds of Real Estate Deals Are There? How Do They Work?

Rob starts the discussion off on the kinds of real estate deals. He explains that a cash flow investor puts his or her money into an investment and receives a regular return on it quickly. A back end deal, however, works differently. An extreme example of a back end equity play involves injecting capital into a new construction project. You may have to wait a long time in order to get a return on your investment. Some factors in that deal include waiting on the land purchase to go through, hiring contractors, and building inspections before getting paid. Depending on the specifics of your deal, your payout could come at different times during the life of the building. Many times, a balloon payment is made to catch investors up when the building is sold.

Other factors to consider is turnover of tenants and renovations to an existing property. If you are in a position to wait these out, you could conceivably make a greater return than you could over the life of a cash flow deal.

Join Our Community

Now you know about the kinds of real estate deals. Why not consider joining our online discussion group, the Addicted To Life 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!

May, 2023

No Job – Investment Income Only!

How close are you to absolute financial freedom? Rob Rowsell talks about how to grow your money and live off of investment income only. Rob has transitioned from a multiple business owner to a multiple family real estate investor. Who better to take advice from? Rob has learned the hard way how to avoid unwise investments and do his due diligence to ensure his income only comes from his properties.

Tasks to Transition to Living Off of Your Investment Income

Rob starts off the clip laying out his current financial situation. He no longer holds a conventional “W-2” job. Therefore, he depends solely on his apartment holdings to generate cash. Reinvesting that cash wisely is his key to maintaining financial freedom. Do you still have a full time day job? You can still take steps to eventually fund your lifestyle solely from investment income. If you dedicate just eight hours per quarter to your investments, you are well on your way.

We talk often about the Vitality Spreadsheet. Examining this document will help you determine the income amounts you need in order to meet basic needs, then live with vitality, and, finally, achieve total financial freedom. You must take time to thoroughly vet potential property investments, while reviewing your numbers with a fine toothed comb. If that sounds like a part time job, that’s because it is! However, performing your due diligence will pay dividends for you and any potential investment partners down the line.

Join Our Community

Do you invest in real estate? Planning on transitioning to living off of that investment income? Then you should consider joining our online discussion group, the Addicted To Life 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!

Mar, 2023

5 Lanes (Hot and Cold) – ATL Financial Discussion Community

The ATL Financial Discussion Community talks about the five lanes we can travel in with our lives. Rob encouraged each investor to improve on one problem area of their lives since last month’s investment conference. Both Rob and Gary are here to encourage the investors in our groups to live fulfilled, balanced lives.

Investment Options Financial Discussion

Rob opened up this financial discussion with a review of the Five Lanes from the last call. Previously, each caller discussed how they rated their performance in each category. He reminded the ATL members that at the end of the day, he was there to help spark the change each of them needed. Last month, the roundtable members admitted they needed to improve areas of social interaction, health, and community service. If nobody improves, these Zoom calls are all for naught. Rob truly believes that anyone can reach his level of success if they focus, work hard, and be patient.

The five lanes we previously discussed ranged from fast (hot) to slow (cold), based on what level of priority they were. Specifically, Rob mentioned their correlation to JR Covey’s Four Quadrants of Time Management. The individual issues members mentioned fall into the social concerns in Quadrant Two. This means that they are important, but not urgent. Therefore, it is easy to put off improving those areas. Immediately, you won’t tell a difference, but over time, they will cause problems if you do not work on them.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online financial discussion group, the Addicted To Life 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!

Nov, 2022

ATL Community Gathering

KEY Topics Discussed:

Accounting Review as must
OM (Offering Memorandum)
A Cash Allocation Plan
One Thing to spend time on
Cash flow investor
Back end investor / equity
Be an informed investor

Jul, 2022

Rob on the “Diary of an Apartment Investor” Podcast

The “Diary of an Apartment Investor” podcast, hosted by Brian Briscoe, recently had Rob on as a guest. Rob recounts his experiences working with an SEC Attorney and gives advice to beginning syndicators.