#21 Little to No Taxes with Lori Greymont
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Itunes – www.TonyJavier.com/itunes
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Guest Bio: Lori Greymont
One thing I love about Real Estate is not having to pay taxes.
Lori Greymont and I talk about how to use Real Estate to make money and offset taxes at the same time. A must listen!
Listen to the full episode at www.TonyJavier.com/itunes and please leave a review.
If you want to watch the video, go to www.TonyJavier.com/podcast.
More about him – https://tonyjavier.com/lorigreymont
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Show Transcription:
Tony (00:01):
All right. Welcome to today’s episode. We have an awesome guest for you as usual, Lori Greymont out of the San Jose market, she’s done a lot. I could go on and on with her bio. She’s done over 2000 properties. She is specialized in 1031 exchange, syndications, all kinds of different stuff. So we’re just going to jump right into it. You have a good resume, Lori. So I guess tell us how you got started and what you love doing right now.
Lori (00:31):
Well, first of all, Tony thank you for letting me be here. It’s an honor to be on your show. So I got started in real estate as a kid, actually, literally like a 12 year old because my mom bought a broken house and we moved into it and got to rip out the carpet and hang the sheet rock. And a couple of years later, she was able to sell it for a nice profit. And so we did it again. We moved into another broken house and eventually we didn’t have to move into the houses in order to fix and flip them. She was able to get financing, but I learned a lot of skills from her, you know, one like how to rehab, but two how to negotiate seller financing and how to be creative because she didn’t have the income to go to a bank initially. And she got seller financing and just made it happen. And so that was how I got started. Then I thought I was going to be smart and go to college and I got an accounting degree and I went into the accounting field for about one second and decided I loved real estate. And so I’ve been doing it ever since.
Tony (01:36):
That’s interesting because I, I wanted to be an accountant when I was in college. So I started with that and then I just kind of went towards a general business and then I found real estate and I’m like, now I’m like, if I would be encountering right now, I would be like, I would be depressed. Like, it’s just, it’s interesting how you think you’re going to like something. And then luckily you find something else you’re going to like, so that’s cool. You got, introduced to it at an early age. So there’s obviously an evolution. You’ve done many different things. You’ve done certifications, you’ve done some bigger stuff. I guess what are some of the things that you like to teach today? Because you have a real estate investment group that you run in San Jose, San Jose, and I think San Francisco kind of that type of area. So what are the things you’d like to specialize in, in teaching other people and what are some nuggets you can share with,some of the things you’ve experienced in your career?
Lori (02:26):
So one of the things that is really important, for people is mindset you know, it’s like, if you think you can, or you think you can’t you’re right. I think it was Vince Lombardi said that, or somebody said that anyway, the point is, it’s all about mindset. And here I am in San Francisco Bay area, one of the hottest markets, even today with COVID, there’s hardly any inventory, multiple bids, things are flying off the shelf. And since March I’ve put four properties under contract with seller financing.
Tony (02:59):
Do you mean, you mean, you mean them financing it for you?
Lori (03:02):
Yeah, exactly. They’re financing it for me. And most people say, Oh, California, you can’t do seller financing. You know, it’s a sellers market and you know, they can get cash like that. Why would they finance you? But there’s different reasons people have for wanting to finance you. And one of them is capital gains tax. You know, if they finance you and you structure it, right, they don’t have to pay capital gains until you pay them off. And so that’s an opportunity. So I’ve done commercial and a duplex and a single family in another single family, since COVID all different forms of seller financing where I’m not having to go get hard for money. And so I share that only because it’s about mindset when people think, Oh, there’s no inventory out there because it’s a hot market. That’s not true either. I mean, that’s four deals since March in the hottest market. And there were many more deals that I let go, but it’s all about creating the deal. And you know, some of the other speakers you’ve had on here, like Eddie speed, he’s like the deal architect. That’s what it’s about is being creative and being a deal architect. And so that’s what I teach. I try to teach people how to think outside the box.
Tony (04:15):
I think that’s a good point because usually when I ask that question or similar question, people get into the details of like, Oh, they talk about like, you know, single family or flipping or wholesaling or that kind of thing, but really you can’t, you can’t really, you know, do things at a high level without having the right mindset. And I think that’s why, you know, I think someone said something really interesting there, like the difference between a janitor and the CEO is mindset and nothing wrong with being a janitor. I’m not, you know, but you know, there’s, there’s a big variance in income level and typically lifestyle. So so with, with mindset, what do you feel like are the, like how do people get over those barriers because I feel like it’s the same way. Like I’ve done some one-on-one coaching I’ve done. I’ve tried to teach other real estate investors and I’ve stopped doing that for the newer investors, just because it’s so hard to get them over that mindset hurdles. So now I work more experienced investors to where I can take what they’re doing, help them systemize it better and scale it up. And I don’t know what have you found from that standpoint of helping people get over the barriers of whatever it is that’s keeping them from being successful?
Lori (05:30):
I think first of all, they have to want it. They have to recognize that there’s an issue. You know, so, so many times, especially as teachers, it’s in our nature, we see somebody and we see the problem and we want to help them. But if they’re not ready for the help, it doesn’t matter how many times or how often we show them near to them. They’re not going to make the changes. So the first thing about mindset is that they have to want a change. They have to recognize that there’s a, and you know, there’s just so many tools out there when I exercise, I’m listening always to something, learning constantly learning. I’m not afraid to join masterminds. You know, I noticed you have a mastermind. It’s a great opportunity for people who want to up their game to join your mastermind, because then you hear other people in, even as somebody might be sharing one of their problems as they’re sharing their problem, it’s helping you solve your problem. And so that’s a mindset thing is being connected with other people of like-minds.
Tony (06:32):
Yeah, totally, totally and you’re right. People do need to be ready cause you know, I have, I don’t want to say, try to force, but people have been in situations and I’ve tried to kind of force them in a different direction, whether it’s with health or money and without them, they ask for it. But they didn’t, if that makes sense kind of hinted towards they needed that help. And I just like would dive in and try and help them. But it kind of backfired because it, they didn’t really want it. Right.
Lori (07:00):
They just wanted to complain. Right. They want it to be the victim.
Tony (07:03):
Yeah. They want something to help them and to give them a handout. But for me, I was trying to not give them a handout. I was trying to help them to do the work so that it would help them. Long-Term
Lori (07:15):
Trying to give them the hand up and they wanted the handouts.
Tony (07:18):
All right. Write the check, give it to them and then be done. Yeah. Right.
Lori (07:21):
Yeah, exactly.
Tony (07:22):
Totally, totally. So you and I hadn’t started having a conversation before this and it was a good conversation. I said, you know what, let’s start the podcast because we were getting into some good stuff. So you know, right now we’re probably not going to launch this for a couple months. So right now we’re in October. So we’re probably going to launch this year in a couple months by the time we launched, there’s probably not going to be huge changes in the market, but people do need to prepare for what’s going to happen if something happens. So with COVID and everything, things have changed, things have shifted you know, there’s been forbearance on some loans for single family properties, even commercial properties. And so those, and forbearance is basically people being able to miss their payments for extended period of time because they need it. Governments handing out money. I mean, there’s so many things that are keeping people afloat right now, but that’s going to run out at some point. So let’s start that conversation again and have that. So I think you said that some of the higher end markets like San Diego, where I’m at San Francisco, where you’re at, are going to continue to rise. And then some of the lower end markets like Wichita, Kansas, or Kansas city, some of the Midwest markets are potentially going to see a decline, which in 2008 was the opposite. The ones that were going up very fast, went down very fast. And the mid-west markets that stayed steady, didn’t see much of a much of a difference. So I want to get your opinion on that. I guess, go to expand on that.
Lori (08:49):
So, you know, a lot of people say, what kind of recovery are we going to have? You know, is it going to be a A recovery or is it going to be a B recovery? So the point is we haven’t hit the bottom yet, so we still have to shake it out. And what I mean by shake it out is there are still people who are going to default on their properties. I don’t think the numbers are anything close to what we saw in 2008. I do think that there are, there’s more equity in the marketplace. People have options. They can refinance the money out and then make payments. What’s going to come to fruition though is the fact that a lot of people have lost their jobs or will be losing their jobs. And those that lose the jobs typically are at the median income or below, which is where those houses for the median income or below I think are going to come on the market. There’s going to be more of them as more of them come on the market, the supply and inventory is going to force the prices down again, nothing like in 2008, but it is going to suffer. I think the median income and above employees are going to find opportunities where they can continue to work remotely. They can find, you know, engineering technology, doctor, you know, service type jobs, and they’re not going to lose their houses. They’re going to have options and they’re going to continue to grow and gain wealth. And so I do think it’s going to be more of a A recovery, which means, you know, there’s going to be some, some follow-up and I think that’s going to play in the marketplace. So, you know, we’ve got markets that are more expensive and markets that are cheaper. If you look at what type of industries are you in the cheaper markets, those are the ones I think are going to hurt.
Tony (10:25):
Yeah. So I think from a commercial real estate standpoint, no doubt in my mind, you know, people are working from home or office is going to suffer coworking space may, you know, stay really strong. That’s, you know, that’s the industry I just got into recently on a coworking space. You know, retail people, aren’t going out as retail to retail, quite as muchrestaurants have suffered gyms have suffered. So there could be some really, you know, really good bargains in the next couple of years from commercial real estate. No doubt on the residential side, I’m not as I don’t want to say pessimistic, but I feel like there’s enough real estate investors buying properties, there’s enough people trying to find rentals. So even if stuff does come on the market, like you said there’s equity because prices have risen so fast in the past five years that if someone bought even within the last couple year or two years or more, they should be okay because they should be able to still sell and still pay real estate commissions and things of that nature. So I feel like the supply is so low and the demand is so high that I don’t see a big change in the market, but you know, I’m a person that does like to plan for the worst. So, you know, I do some private money lending. So my, my loan to values have gone down on properties. I’d lend on. I want to make sure that, you know, the it’s you know, quicker projects, they’re not, you know, 12 month projects and that type of thing. So I guess what I would tell, tell the listeners is try and prepare yourself for a correction. If there is one, if there’s not, you’ve got that additional margin and you’re safer that way. So any, anything else you want to?
Lori (12:09):
Yeah, I think that there’s another piece to this and that’s migration. You know, one of the things that we’re noticing here is that, you know, people in the city are wanting to move out to the suburbs and you know, people in the apartments are wanting to go to townhouse houses. People in the townhouses are wanting to go to the suburbs because of this shelter in place. And one of the surprising things, I was just talking to a gal up in Seattle. A lot of the people in the higher end markets are selling their million multimillion dollar houses and they’re buying RVs and they’re buying places outside the country and they’re going to travel because they can go anywhere they want and still work. And they’re not putting down the roots. And so I think we just have to kind of watch what happens with the demographics and where people move and how this whole working remotely changes that changes, you know, where people place themselves.
Tony (13:03):
Yeah. Someone did tell me that in SA it was actually, literally, I think earlier today someone said San Francisco, a lot of people are moving out of San Francisco. I know, I know I heard that story about New York that, you know, they’re willing to the suburbs, is it the same thing happened in San Francisco?
Lori (13:18):
It’s the same thing. You know, what we’re finding is now there’s an influx of people wanting to move to Santa Cruz and up in the mountains, you know, in the redwoods of Felton,uWatson middle they’re moving to the coast. Uyou know, in typically you would not get a city dweller wanting to go somewhere that’s somewhat rural, but that seems to be the new trend.
Tony (13:40):
So if that’s the case is the, so you said San Francisco and some of the bigger markets will remain hot, but if people are moving to different cities outside of the suburbs, do you feel like that could take a toll on you?
Lori (13:51):
It certainly could take a toll in San Francisco. And I think San Francisco is a little bit of an anomaly. Just because there’s so many so many policies like social policies that have made it, not family friendly that I think short-term San Francisco may suffer financially, but a big city like San Jose and it’s Metro areas, all the suburbs outside, those are not suffering. You know, there’s, people are fighting to get houses in Cupertino or Palo Alto. So,
Tony (14:23):
So from a collective of the whole area, it should stay strong, but there are pockets within like the downtown or something like that. That could take a hit.
Lori (14:31):
Yeah. Yeah. I think downtown’s are really going to suffer. You know, I don’t know if you experienced it there in San Diego, but we have a significant homeless population issue and it’s all concentrated in most of the downtown areas, which is why a lot of the families are moving to the suburbs.
Tony (14:48):
Yeah. Completely. I live in Balboa park are banker’s Hill, which is by about ballpark. If anybody knows much about San Diego, it’s a big park kind of near downtown. It’s a nice area, but there’s so many homeless people they go through there. It’s, it’s a, it’s definitely a big problem. It hasn’t really affected the area. I mean little pockets where there’s just like a migration of a lot of homeless people, but they kind of go out to the outer areas of that, and it’s still effective, but it hasn’t, luckily it hasn’t affected values too much. And people just kind of, it’s kind of become a norm, unfortunately, where you just, you see it all the time, people walking around kind of, you know, screaming and yelling at nothing and
Lori (15:28):
Yeah. Talking on the phone that there’s no phone there.
Tony (15:34):
Well, great. So I’m looking at your bio here. So you’ve done single family syndications, you bought notes.
Lori (15:45):
Yeah. So let’s, talk aboutselling right now. There’s a lot of people that are thinking that they want to sell right now, sit on the sideline, wait for the market to dump and then go in and buy low. Right. And I’m never a proponent of sitting on the sidelines, but some people that’s just what they want to do is they want to sit on the sidelines. And one of the things that I tell people is, you know, if you’re selling right now, you don’t have to do a 1031 because there are options to sell, get your cash, not pay capital gains and wait to make the purchase leader. And that’s one of the things that we’ve been helping a lot of investors with because you know, they’re wanting to sell especially office building while they can, before the market tanks.
Tony (16:35):
So tell us about that. My ears perked up a little bit, and I’m sure some other peoples did too. So you don’t have to do a 1031 exchange to get tax deferment. So tell us how we do that.
Lori (16:46):
All right. So first of all, the reason most people understand and know tax 30 or 10 31 is because it was challenged in tax court. And after it was challenged in tax court, the court said, okay, if you’re going to allow people to do this IRS, you need to put some rules and regulations around it. So they created a cottage industry. And that’s the only reason we know about 10 31, but there is an entire book of how to avoid paying taxes. People like take professions, your tax attorneys as their profession is to read through it and know every loophole that there is in there. So just because it’s the most known doesn’t mean it’s the best method for all of us to use. So there is one in there I kind of alluded to it a little bit earlier. It is called installment sales. Now I represent or refer people to a complete program. This is nothing that you have to go set up. You can call me or call Tony and we’ll refer you into the program. So you don’t have to go out and set this up. This already been tried and trued, and it exists. It’s been around for 30 years. Even if you tried to set it up, you’d probably make a mistake. So it’s not worth it. But what we do is we mix two pieces together. The first piece is we defer the taxes and the way we defer them is in the IRS code, M453, which is your installment sale code says that if you sell something and assets on an installment sale, and you’re only receiving interest, only payments. So you’re not receiving any of your principal, you’re not receiving any of your sales price.
Lori (18:24):
You don’t have constructive receipt. The taxable event is called constructive receipt. When you actually get those sales proceeds, if you sell it on an installment sale, you don’t have constructive receipt. So we first defer the taxes by initiating an installment sale, right? So now the taxes are deferred for 30 years, but most people don’t want the little payments, right? They want a lump sum. They want to walk away with a lump sum. So we take the installment sale and we pair it with a loan. We give a business loan that wants those monthly payments. Okay? So that’s making the payment on the loan that you walked away with the cash. So you walk away from closing with an amount just about equal to what your sales proceeds would have been, but that is given to you as a business loan and the payments are made from the installment sale. So you never have to make a payment or pay back the principal.
Tony (19:26):
It is Super interesting. Okay. So I’ve never heard of this. So this is good stuff. This is why I do this podcast. I love these high level conversations. So let’s back up because some people may not understand what a 10 31 exchange 10 31 exchange basically says that you can sell a property, give them money, not give, set the money. Aside with a third-party qualified intermediary, find a property within a certain amount of time, put it directly into that property. There’s some rules and regulations behind that. I’m not going to get too deep into that. And as long as you don’t touch the money, you don’t pay taxes on that sale. And then eventually as you get the money later, once you sell the property and don’t do a 10 31 exchange, then the taxes are deferred. So it allows you to take the tax money. You would have paid normally and reinvest it and continue to build on that. So Laurie is saying is rather than doing that do an it’s called an owner carry.
Lori (20:25):
This, particular system is actually an installment contract. So what we do is we bring that third party like that dealer or the, the authorized party that inter they’re just an intermediary. They write an installment sale with the seller and immediately sell it to the buyer. So it does not affect the buyer side at all, but what it does is it the first the taxes?
Tony (20:50):
Okay. So let me, let me ask you this. So I’ll give you a perfect example. So about five years ago, I sold a package of 37 properties, right. And I use the installment sale, which I call an owner carry. So we’ll figure it out. Yeah,
Lori (21:02):
But they’re different. So owner carry is when the owner is financing you in installment sale, you can go buy a car on installment sale. It’s not owner carry.
Tony (21:11):
What I did was I did an owner carry or the other real estate investors. So it was a packet of 37 income income producing properties. If I would have sold it in and gotten the cash out, it would have been over a million dollar profit. So I would have paid a huge amount of capital gains or acute huge amount of ordinary income. And so instead I did what I called an installment sale, which I call an owner carry as well. So I, again, I’ll figure out what, what the difference is here, you know? And so he put down $400,000. So I only had to pay a portion. I got the whole 400,000, but I only had to pay a portion of the profits on that 400,000, because I only received a certain portion of the principal. So I paid taxes on, I can’t remember what it was like. I think a hundred thousand of that if I remember, and then the others, you know, 600 plus thousand, I only had to pay taxes on as I received the principal each month on top of the interest. Exactly. So take that transaction. If I were to do that differently and you, it sounds like you’re, you have a way to have gotten that whole million dollar or close to it. How would I have structured the difference?
Lori (22:22):
Yeah. So, so with this program that I refer people to we have both pieces, we have the installment sale and the loan part set up. So now just going back to your deal, it comes under the IRS code, M 4 53, which says you only have to pay taxes on the portion of principal and sales proceeds that you receive. So that’s why you were able to only pay a portion on your 400,000 and only pay taxes on each payment until you were paid off, because that’s the way it’s set up. And it makes sense if you’re not receiving the money up front, why should you pay taxes on it? You know, pay it as you receive it. So what we do is we bring a dealer or a third party who comes to you and says, Tony, I’m going to buy that, that package from you for a million dollars. And I’m going to sell it to, you know, Joe buyer and Joe buyer brings the money to the title company and pays for it right now that money doesn’t go to you. Instead, you got this installment contract, which says the dealer is going to make monthly payments to you. The dealer gets your money. So you don’t have constructive receipt. The dealer is sitting there holding your money, that the million dollars basically now bring right. The million dollar there. They’re holding the million dollars from your buyer.
Lori (23:52):
Okay. So the million dollar. So the, so they’re, they’re putting a down payment or loan. However, they get, get the money to they give the million dollars to the dealer. Yep. So, because you did not receive the money, you’re not paying taxes. Right?
Lori (24:06):
Right. So that’s so that’s, so step two is now you want money, right? So we bring a private lender to you. And this private lender gives you an unsecured, no recourse loan for $937,000.
Tony (24:28):
937, because it has
Lori (24:31):
Fees and risk discount.
Tony (24:33):
So that’s 6.7%
Lori (24:36):
6.5%. Okay.
Lori (24:40):
So, so now you have the 930,000. It’s a business loan. Okay. Loans have to have payments made on them. Right? Okay. So you’re sitting, you’re holding the money, you’ve got the cash, but now somebody has to make payments, right? You don’t make those payments. The guy who’s supposed to make those installment units to you makes the payments.
Tony (25:03):
I’m a totally visual person. So I practice it, write it down to like track it a little bit better. And I’m sure our listeners.
Lori (25:10):
So here’s the thing. When I normally, when I do this, I have a PowerPoint presentation that has little arrows and everything. So it’s really hard on our podcast to do this. Somebody wants to see this, have them reach out to you. We’ll set up a console. I’ll walk through it with them. I do need numbers. I’ll put it in a spreadsheet and show them how much they could save by doing this. No, a lot of people get caught up on the cost. Oh my gosh. Six and a half percent. Well, let’s talk about what you can do with that money. You know, they forget when you do a 10 31, they think 10 31, they’re saving all their money, but they’re not because they’re transferring the lower basis. Every time you do a 10 31, whatever your first asset is, that basis transfers to your next asset. So you’re not getting the best appreciation on an asset. If you were to sell your asset and buy it cash, you get a step up basis. You get to have that appreciation on the full price. And so it’s much better to pay that six and a half percent, even if you’re going back into an asset because there’s yeah.
Tony (26:23):
Yeah, no, I love it. I can tell, I can tell how passionate you are about it. I love it. So the question would be on a 10 31 exchange. I don’t think in the tax code, it says a specific amount of time, but the rule of thumb, some people say it’s a year. Some people say it’s two years, but you have to own the property for at least a year or two years. And the tax code, it says that not reselling it immediately or something like that for a profit, right? So you could substantially maybe if you hold it for six months, say, you know what? I thought I was going to keep it, I’m selling it. But the rule of thumb is a year. Some, some accountants want to say two years just to be safe. So with the strategy you’re talking about, if someone fixes a property in flux, it can, they do the same thing.
Lori (27:03):
So it does need to be capital gains because the idea behind the installment sale is that it is deferring capital gains tax. And so we can defer capital gains tax on businesses on any assets. You know, if you’ve got data, whatever you’re selling as an asset, and you have to pay capital gains on not just real estate, this strategy can work on it. The only thing it doesn’t work on is securities on the stock exchange. So any asset? Yeah, it does. So we typically tell people, you know, you should have it for 13 months. It should be long-term capital gains.
Tony (27:45):
Okay. So, you know, some people are considered dealers like myself, I’m considered a dealer because I do this full time. Yeah. Is this in a 10 31 exchange? There’s, it’s kind of a gray area. Like you’re kind of not supposed to do it as a dealer, but I know a lot of people do. And I, and I think it’s, I’m not giving tax advice, but from what I understand, it’s just something you do. From a standpoint of someone being a dealer, does it matter whether they deal full-time or do they have to be someone that, that pays capital? Because even if you, if you’re a dealer and you sell it over 12 months, it’s not capital gains. It’s ordinary,
Lori (28:23):
It’s ordinary income. Right. So we have another program for ordinary income, but this particular program works for capital gains tax. So, yes.
Tony (28:31):
Okay. So do you have, do you ha do you have full-time dealers use this as well?
Lori (28:35):
So they don’t use this one. They use another program that we have, and the other program is a straight 15% tax through Puerto Rico.
Tony (28:45):
Hmm. Interesting. Okay. But it’s still, regardless of it has to be 13 months.
Lori (28:50):
No. So the, the ordinary income one, we can do ordinary income and you just pay a straight 15% tax, as long as it’s in a business entity, like an LLC or corporation as a dealer, we can shelter your income and run it through a business that we have in Puerto Rico. And you pay a straight 15%. That’s both federal and state.
Tony (29:13):
So why are more people doing that?
Lori (29:16):
Because not everybody asks, not everybody’s looking, you know, so yes, well not everybody’s looking, right. So one of the things I like to do is development, right? So I went out and I found a parcel and I noticed that there were like a few more parcels. And so I ended up buying an entire block. And now when I talk to people, they’re like, wow, how did you get that deal? And I just tell him, you know, even a blind squirrel will find a nut every once in a while because they’re looking for it. And so people aren’t looking, they think, Oh, this sounds too good to be true. Can’t happen. But as long as you’re out there looking, and you’re reading through the tax code, you can find ways to not pay taxes legally. And that’s what we do. Yeah.
Tony (30:04):
I liked that. So that works on residential property works on commercial. I actually just had a commercial agent, texted me just a little bit ago. And he said he said, I’ve got a guy that was interested in buying your property on Kellogg. It’s a multimillion dollar building. And I was getting ready to text him and say, you know what? I just used a lot of depreciation on that building this year. Cause I, cause there’s new tax codes. So talk about tax, usually utilizing taxes. I bought a commercial building. I put, I don’t know, a million and a half into this building. And I don’t know the exact numbers. It’s like over a million dollars I can use as I put the sections of that building into use because of the accelerated depreciation laws that Trump put in place a few years ago. So I was able to wipe out pretty much all of my income because I put so much money into this building. And if I were to sell it would, I don’t know that the numbers would work out to 10 31 exchange. But if I only had to pay a 15% gain on it, as opposed to a 40% gain or whatever the number comes out to you, that makes a big difference. Right? Any other caveats about it? I mean, is there anything that’s restricted from really from a real estate standpoint? Nothing sounds too good to be true.
Lori (31:24):
There you go. And that’s why most people don’t do it, but I can tell you, you know, it’s like we’ve helped a multi-million dollar data warehouse. They were selling the business and the real estate, okay. Businesses don’t do 10 30 ones anymore. And so they were able to do this program and shelter, their income we’ve helped doctors who have, you know, large settlements that came in where they received multi-millions of dollars go through our tax program, pays straight 15%, a hundred percent legit, and they’re done taxes are paid.
Tony (31:58):
Wow thats a huge game changer.
Lori (31:58):
Different programs.
Tony (32:01):
Yeah. So,
Lori (32:05):
That’s where my nerdy accounting degree comes in handy Right. You know, I didn’t want to pay taxes on my development project. So I had to find something and as I dug, I found more and more and Hey, gotta share it with the world.
Tony (32:20):
Well, well, if you want to, if you can provide a link to us, we’ll put it down in the show notes and people can, can connect with you or you can send them to the, to the program. Man, this is good stuff. So I didn’t realize we’d go down this road, but it’s good stuff. So what else would you like to share with us about your experience in real estate and what people can learn from it?
Lori (32:41):
Well, I just think that, you know, the best thing is start do it, you know, done is better than not getting started. And don’t be afraid of it. You know, more wealth is built in real estate than any other industry is something that we’re all used to because we live in something. And if you don’t know how to make it happen, ask people because there’s, there’s ways it’s more about the desire than it is about the knowledge. And if you have a desire, just surround yourself with the right people, you know, like all of your mastermind and your, your connections, you know, how we learn from each other is the connection. So surround yourself with the right people.
Tony (33:22):
Very good. Like, like you said, I mean, there’s a saying that where there’s a will, there’s a way, right. And when you have a development project, you’re like, man, I don’t want to pay all these taxes and you just had to search and find it and figure it out. I think that’s what, you know, probably is the mindset part of it that separates successful people from people that don’t even start is just figuring out how to be resourceful, right? Like there’s like today, there’s no reason to not find resources. I mean like 20 years ago when I got into the business, I could, you know, Google wasn’t around. So I could probably go on the internet and find something on AOL or whatever. Now there’s so many things that you can plug into that help you do business a lot easier. Now that that’s created a lot more competition, but at the same time, there’s so many resources out there that people can plug into it. You just gotta look for them and find them,
Lori (34:13):
That’s it. Let’s change the question. Not can I it’s how can I
Tony (34:17):
Absolutely. Well, good stuff. So I’m not even sure where we’re at on time, but I’d like to dig into a couple more things. So you’ve done a lot. So what, like what got you into that? Like, I know I’m the same way. Like, I’ve got a podcast, I’ve got masterminds, I’ve got a flipping business as a whole, so I’m kind of like you where I like diving into different things. Okay.
Lori (34:39):
So my personality profile is a Maverick, right. So I just go out and I’m just like chop and things.
Tony (34:47):
Have you taken the DISC?
Lori (34:48):
I haven’t, I, I did a predictive index. The the one with with Mike McClowsky the predictive index. It says I’m a Maverick, which is true. It’s like, I, you know, explore I’m out there. I’m trying to figure out the next frontier to conquer.
Tony (35:02):
And so are you Ready for your aim?
Lori (35:05):
I Am definitely
Tony (35:09):
Me too. Me too. It’s like, you, you jump off a cliff and build a parachute on the way down. Right.
Lori (35:13):
Figure it out, you know, let’s just make it happen.
Tony (35:16):
Totally. So what do you love doing the most? Out of all the things that you’ve done, what do you think if you could pick one thing and do that only, what would it be?
Lori (35:24):
So I love the entitlement process where, you know, like this one project that I’m working on, I was able to assemble the, the lots. So coming up with the vision of what to do an entire city block, fitting it into the matrix of, you can do this, but you can’t do that. You can do this, but you can’t do that kind of thing, taking it through entitlement. That part, I just get jazzed because it’s kind of like Tetris and real life, you know, it’s like playing a game. So that piece and then honestly, I just love teaching people. I love encouraging people. You know, this particular project that keep talking about was found by one of my coaching students who had absolutely no real estate experience. She trusted the process. And I told her exactly what to say, what to look for. She found the property, she found the overlay for the redevelopment project. She called the broker. She set up the first meeting and only because she trusted the process and she did it, she took action, you know, and just kind of coaching her through it. Now she knew she was in over her head when I said, okay, we’ll do it. If we can get all the other parcels, let’s start working on that. And she’s like, okay, this is over my head. You take over. But I love coaching. And seeing that light bulb go on and, and, you know, helping encourage them to dream.
Tony (36:46):
Yeah. That’s cool. Seeing something that, you know, wasn’t there at one point and now it’s this nice project that it’s come to fruition and I’m sure there’s a lot of satisfaction that comes with it.
Lori (36:58):
Absolutely. Yeah. Creating, taking a vision, you know, I was talking to one of my contractors yesterday and my thing is like, Oh, it’s easy, you know, and I’m explaining what they need him to do. And he goes, Laurie, everything’s easy because it’s already done in your mind.
Tony (37:19):
Oh, cool. Well, good stuff, man. I, you know, like I said, I, when I do these podcasts, I kind of have an idea where they go, but it went in some really good direction. So I’d love for you to I’ve got a really good mastermind group. I’d love you to speak to our group and maybe dive into that, the next thing a little bit with them. Cause I think they could really use it. Those guys doing high volume of business that could, could, could definitely save money on taxes. So
Lori (37:42):
Awesome. Let’s do it. Let’s get it on the calendar.
Tony (37:45):
Fantastic. Well, thanks Lori. We’ll put a link down in the show notes. You can get in touch with Laurie and learn more about our program. Any last words for our listeners before we jump off?
Lori (37:57):
No, just go get it.
Tony (37:58):
Go get after it. Make it happen.
Lori (38:00):
That’s it. Make it happen.
Tony (38:02):
All right. Good stuff. Well, thanks Laurie. Look forward to connecting again soon.
