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!

Multifamily real estate investor Rob Rowsell outlines the 7 Investment Tips for Business Owners. You can take control of your finances when you invest profits intelligently! Compound interest and your own unique advantages are two facets of your wealth building journey. Make sure you also have an exit strategy…from life! 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 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.

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!

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!

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 segment 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 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!

Link

Embed

Copy and paste this HTML code into your webpage to embed.

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

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.