Do you want to be more profitable, and enjoy the success of a thriving business, instead of running ragged on the hamster wheel of chasing the next sale? Barbara Stackhouse is writing Profit First for Dentists. 

https://www.youtube.com/watch?v=EzsWDyjLA2Q

Sound familiar? It’s the specific application of Mike Michalowicz’s Profit First system, tailored to the dental industry, with their unique challenges and solutions.

So, if you’re a dentist who would like to build a successful practice, or a chiropractor or physician, or even a business owner in another industry who wants to find out the secret code to profitable and sustainable business… tune in below!

Table of contentsMike Michalowicz’s Profit First SystemLeave the Grind BehindThe Sales ProcessProfitability in Any BusinessSolving Business ProblemsFixed vs. Variable ExpensesPut Systems in PlaceWhy “Profit First”? Links MentionedAbout Barbara StackhouseBook A Strategy Call

Regardless of your experience in the dental field, we think that Barb has amazing lessons to teach business owners. Her experience in Profit First systems make her an expert at organizing systems that help you keep more of your revenue.

Mike Michalowicz’s Profit First System

After discovering Mike’s Profit First system, Barb could instantly see how the Profit First system fit into the dentistry field, despite being a system geared towards CPAs. She contacted Michalowicz to see if she could go through his professional training process, despite being in a completely different industry. Now, not only is Barb a certified Profit First professional, but she is releasing a book for dentists to implement this process. 

Leave the Grind Behind

[7:50} “If you’re an entrepreneur, you get stuck in the grinding it out. You're the technician in the business, you’re the person doing it all. And it doesn’t have to be that way.”

Too often, entrepreneurs enter the business thinking that they HAVE to be un-profitable for a while. They grind and work hard, and hope that in five years, their business will be where they want it so they can slow down a bit. To Barb, this couldn't be further from what should happen.

Instead, entreprneuers need to work smarter and build out their own profit, so that they can be prosperous now, enjoy their practice, and set it up for decades of success.

The Sales Process

[8:11] “So the main other thing that I talk about—which is another big area that dentists struggle with, and even team members sometimes need training with too—is kind of the sales process in dentistry. And it’s actually the same sales process that I use myself when I talk with a client. It’s all about serving that client. And really putting the need for the sale over on the shelf and just connecting. Having that relationship first and not pushing.”

Through her work, Barabara created a system to facilitate this sales process, called P SERVE. The P stands for purpose, and Barbara urges dentists or team members to understand their purpose before taking a call, and then truly giving service from the heart. SERVE, as an acronym, describes the steps in the process. 

This methodology is something that Barb speaks on and teaches—to help dentists serve their clients first, knowing that the profit follows. Money flows by creating value—so serving and giving allows any business to flourish. This is very similar to Bob Burg's Go Giver mentality.

[10:34] “The more you help people get what they want, the more you will get what you want.”

Profitability in Any Business

[10:53] “If you are an entrepreneur, and you open a business, you have a dream of being your own boss, probably. You want to call the shots. These are the common themes that I find. But you have to make a living at it. If you’re not profitable, then you have a hobby, you don’t really have a business. So I think that profitability has to be baked into the plan, if you will.

Have you heard Dave Ramsey’s opinion of Infinite Banking and Whole Life Insurance? He says it’s a scam, a joke, hogwash, horrendous, a pile of manure, old school life insurance done poorly, a jumbled word picture, you can’t cut through the BS, screwing people, and just doesn’t feel right.

https://www.youtube.com/watch?v=Jnbs0iANdMU

Today, we’ll separate opinion from fact, so you can decide based on knowledge and understanding.

So if you want to find out why the wealthy and independent thinkers have been using the profound guarantees and wealth-building strategy of Infinite Banking for centuries … tune in below!

Table of contentsAre Insurance Agents Financial Advisors?How Do Mutual Companies Work?What is a Dividend, and How is it Non-Taxed?Are You Paying for Your Own Money?What Happens When You Die?Is Whole Life Insurance Expensive? Summing Up What Dave Ramsey Says About Infinite BankingBook A Strategy Call

Dave Ramsey does a lot of good for a lot of people—he helps them to get out from under crippling debt and create better money habits. However, he has famously spoken against Infinite Banking, or what we often refer to as Privatized Banking. 

Are Insurance Agents Financial Advisors?

When met with a question about whole life insurance, Dave Ramsey was not thrilled about the idea, to say the least. However, his first criticism was that the advisor who recommended insurance was only an insurance agent and not a financial advisor or planner. However, most insurance agents often have other certifications—like CFP (certified financial planner) or a Series 65 (for giving financial advice). 

Just because someone is able to sell insurance does not mean they can’t sell investments or give advice. Insurance is simply one certification.

How Do Mutual Companies Work?

Mutual life insurance companies are what infinite banking works with. Dave correctly identifies the difference between mutual companies and stock companies. Policy owners own mutual companies, while stockholders own stock companies. This means that mutual companies pay profits to the policy owners, while stock companies pay profits to stockholders. This is where his accuracy stops. 

According to Dave Ramsey: “If you are the owner of the company and you’re also a customer of the company, and the only place the company gets money is from the customers that are owners, and they give you money from profit, by definition, that means it’s because they took too much from you as a customer. There wouldn’t have been a profit otherwise.”

This, however, is not true. The life insurance companies make profits outside of premiums paid into life insurance policies. Companies also make money from their conservative investments--many of which are corporate and treasury bonds, as well as derivatives, mortgage backed investments, and some equities. 

Policy owners receive dividends based on these profits after policy expenses. It’s not accurate to say that premiums are the only profits. His understanding of mutual companies is not accurate.

What is a Dividend, and How is it Non-Taxed?

Dave Ramsey says, "So the IRS has deemed, consequently, that mutual life insurance company dividends are not dividends, in the true sense of a dividend, that they are instead, and this is the IRS’s language 'the refund of a deliberate overcharge.' So they overcharge you in order to give you some money later and make you feel like you’re making money off of them. And it's absolute hogwash. It’s a pass-through. Mathematically, it’s a pass-through. It’s the way it has to be, it’s the legal definition the freaking company, and the IRS says so."

The reasons the government considers dividends non-taxable because they are considered a refund of overcharged premium, but it’s important to realize that not all the dividend is an overcharge. And the government decides not to create a taxable event because they want to incentivize people to have insurance.

Do you want to make more money this year? Today, we’re talking with Rabbi Daniel Lapin, author of Thou Shall Prosper — Ten Commandments for Making Money, one of the deepest and most profoundly philosophical books about the wisdom you need to be successful.

https://www.youtube.com/watch?v=wTujheo9dAk

So if you want to learn about the steps that make success possible and make more far more money than you’re making right now… tune in now!

Table of contentsThe 10 Commandments (of Making Money)Business is Not Piracy Biblical Wisdom as a FoundationThou Shall Prosper (and Be Happy)Charging InterestThe Most Important Thing To Starting a BusinessSpiritual CharacteristicsRabbi Daniel LapinBook A Strategy Call

We’re excited to bring you a unique guest who may surprise you. Rabbi Daniel Lapin is more than just a man of faith, he’s also an accomplished speaker, scholar, and author of a book on our favorite topic—Prosperity. 

The 10 Commandments (of Making Money)

While most financial books focus on returns and strategies and products, Thou Shall Prosper is a deeply profound look at the philosophical underpinnings of success and wealth. The book sprung into being after a series of lectures Rabbi Daniel Lapin gave on socio-political topics, when his most frequently asked question was, “How come Jews are so good with money?” 

It was a question many were sheepish to ask, yet it gave the Rabbi cause to study the question. Especially when he realized he did not have the answer readily at hand. And so he pursued the history of the financial success of many Jews, and in the process debunked many of the bogus explanations. 

He boiled his research down to one truth: 

[7:43] “It is that the vast catalogue of ancient Jewish wisdom embedded in the Hebrew scriptures, that have been part and parcel of Jewish culture. Whether it’s a man, dedicated sages who study the word diligently, or whether it’s among secularized Jews whose conversation around the dinnertable revolves around the way they raise their families and inculcate their children. All reflect these intrinsic values and so, in a nutshell, that’s what it was. And I worked as hard as I worked in my life to condense all of that into ten fundamental principles.”

Business is Not Piracy 

In his research, Rabbi Daniel Lapin learned many Jews became pirates in the 17th century. They pillaged and plundered and built a trove of treasure. Then when they were ready to retire from piracy, they funded churches or other projects to reenter society peacefully. It's dangerous to compare modern day business to the same model. The wealthy should not have to buy their way back into polite society.

Today, people compare businesses to this same model, despite being very different from piracy. Businesses are lauded for their donations, yet criticized for their income. Giving to charity should be a moral act, and it cannot "right" something that is not inherently wrong, like making money.

[13:02] "If giving charity is giving back to society, then what the hell were you doing to society when you were making money in the first place?"

No one complains athletes make too much. Yet people complain about CEOs—they do specialized work and are the linchpin of many major decisions. 

Biblical Wisdom as a Foundation

Our world as we know it is based on principles and ideas found in the Bible.

[23:50] “So ancient Jewish Wisdom explains that—that is the way that it teaches and explains that—you’re not allowed to exploit a lack of information in a business transaction that isn’t transparent. And so, I’m actually prohibited from offering you a price for your property without disclosing to you that I’m aware that there is a plan development or infrastructure that is going to be built there that is going to increase the value of your property—I am not allowed to make you an offer for it without disclosing that information.”

In the same way,

Right now, you have a fantastic opportunity to use whole life insurance as a place to store cash, build capital reserves, get better than bank rates on savings, AND the ability to earn never-ending compound interest, even WHILE you’re using the same money for something else. And you don’t have to qualify to access your capital. You can thank the 7702 Plan for that.

https://www.youtube.com/watch?v=7lMnZARrqys

But is this long-time financial bunker of the wealthy about to become an obsolete vintage classic?

The recent spending bill Trump signed into law went into effect on January 1, 2021. As a result, we'll be seeing some critical changes to the IRS code that has made Privatized Banking such a powerful opportunity. 

There’s still much to be determined, but today, we’re looking at tax code changes and how they affect you.

So if you want to find out what these changes mean for your ability to get the profound guarantees and wealth-building strategy of Privatized Banking… tune in below!

Table of contentsWhat is the 7702 Rule?What is a MEC?What's Changing with 7702 Plans?MEC QualificationsChanges in GuaranteesThe Impact of the 7702 Plan Changes7702 Plan Changes and MECSDid the 7702 Plan Change Destroy Privatized Banking?Book A Strategy Call

What is the 7702 Rule?

In short, this is the part of the tax code that enables Privatized Banking strategies with life insurance. The way life insurance has been defined in the past, according to the Federal Government, offers many tax advantages.

Tax-deferred growth, which can sometimes be experienced tax-free if used properly,Tax-free policy loans,And an income-tax free death benefit.

Because of these tax advantages, there is a provision that prevents whole life insurance from being abused. If too much premium is funneled in too quickly through Paid-Up Additions, a policy can become a modified endowment contract (MEC).

What is a MEC?

Up until the 80s, people were abusing the benefits of life insurance by purchasing a small face value, funneling in extra premium, and calling it life insurance. Then, they were reaping all the tax benefits.

In 1984, the government put a stop to that by placing limits on over-funded policies. While still possible to do, once a policy becomes a MEC, it no longer carries the same tax advantages.

The trick to Privatized Banking is to design policies with as much premium as possible, without a policy becoming a MEC. That way, you can get as much cash value as possible, while still reaping the benefits of tax advantages.

What's Changing with 7702 Plans?

The bill, signed in December, went into effect in January. The 5,593 page document has taken time to wade through, but here's what we now know. Regulations for what constituted a MEC are changing.

MEC Qualifications

Prior to this bill, a life insurance policy had to pass something called a 7-pay test to qualify. The test determines how quickly a policy could be considered "paid-up," or fully funded. If your policy was paid-up within the first seven years of the policy, it would fail the test and become a MEC.

Now, the MEC test will be based on a floating rate relative to the Prime rate.

Changes in Guarantees

One of the greatest strengths of a life insurance policy is certainty: there are guarantees built into the policy that keep your money secure—and growing. Previously, the minimum guaranteed interest rate on policy growth was 4%, however the government lowered that rate to 2%. However, it's important to note that insurance companies have been successfully navigating a low-interest rate environment for a long time. And just because the floor has lowered does not mean rates can't be higher.

The Impact of the 7702 Plan Changes

While these changes will affect policies going forward, it's important to note that any policies currently in-force will not change. Life insurance is contractual, and companies are required to uphold current c...

If you want to achieve the impossible, connect with the most powerful people in the world, achieve the next level in your business, strengthen your relationships, lead your community, and make an impact… listen in, because we're talking with Steve Sims.

https://www.youtube.com/watch?v=oHXpuecDrjM

Quoted as “The Real Life Wizard of Oz" by Forbes and Entrepreneur Magazine, Steve Sims is the best-selling Author of BLUEFISHING—The Art of Making Things Happen, a sought-after coach, and a speaker at a variety of networks, groups and associations, as well as the Pentagon and Harvard—twice! 

So if you want to transform your life, attract influencers and high net worth clients… tune in below!

Table of contentsSteve SimsThe Number One Mindset Tip“You Are the Room You’re In”How to GrowEntering with a SolutionSteve Sims' Millionaire PartiesA Note to EntrepreneursLinks MentionedBook A Strategy Call

Steve Sims

Steve Sims is a master at helping people achieve the impossible with the most powerful people in the world. Or, if you ask him, he’d say he’s good at achieving the stupid, or the unexplained. That’s because, as Steve shares, once you label something as impossible, you’ve created a mental barrier for yourself. So if one thing is clear, Steve knows how to transcend the unthinkable, and impact the world. 

Steve has had many paths in life, all of which hae led him to where he is now. For the last 25 years, he's been in what is technically the concierge and spa business. In his own words:

[2:27] “One of the famous stories everyone knows was I had a client who wanted to have a meal in Italy, and he wanted it to be unforgettable. And so I closed down the Academia, the Galleria in Florence, that houses Michel Angelo’s David. Set up a table of six at the feet of David. And halfway through the pasta I had Andrea Bocelli come in and serenade them. And so I’m basically the Make-A-Wish foundation for people with really, really, really big checkbooks.”

Now, Steve acts as a mindset coach to help people get the clients that they deserve and want, rather than the clients they get. 

The Number One Mindset Tip

When asked what his number one mindset tip is, Steve answered to not identify the problem. Which at first may seem completely counterintuitive. That is because in his experience, people spend the bulk of their energy telling you why they can’t do something. Either they don’t have the money, or the time, or the resources. 

The trick is to shift to how you can do something. The answer may be to set aside thirty minutes a day to reach your goal, or write grants to fund your project, or build more cash flow with a side hustle. Maybe, the solutions are far more creative than that, as Steve Sims shares with us in the interview. There’s an infinite number of solutions for an infinite amount of ideas—it just takes work and a vision. 

As Steve says:

[5:02] “Have you ever noticed that when you get into a room full of entrepreneurs, you’re at home?”

That’s because the entrepreneurial mindset is energizing—it’s about innovation, creativity, and finding solutions. It’s the exact opposite of the—"Here’s why I can’t”—mindset. 

“You Are the Room You’re In”

You’ve likely heard the statement before—you’re a combination of the five people you spend the most time with. One of Steve Sims' strategies, regardless of his position, has been to surround himself with wealthy people. This could be people of intellectual wealth or monetary wealth. This strategy has allowed him to grow, and to be the person with all the solutions, instantly making him one of the most valuable assets in a room of wealthy people.

How to Grow

[10:38] “Sometimes the greatest growth comes from the most devastating problems and mistakes and issues."

Later in our conversation, Steve shares a personal story of how he was flown to China for work, then fired. What seemed like a dark situation turned out to be a phenomenal opportu...

Americans are saving more money than ever, yet interest rates are at an all-time low. If you're looking for the best place to save money, it might be time to stop saving with banks.

https://www.youtube.com/watch?v=dl02XkqwwDg

A recent CNBC article states: "In the midst of the coronavirus crisis, many Americans are spending less and saving more. At the same time, banks are paying next to nothing on those deposits."

Are you, too, looking for the best place to keep savings but want to make sure you’re doing the most with your money? Today, we’re talking about this unspoken challenge from a fresh lens.

So if you want to learn about one of the best places to save money, so you don’t have to give up returns or resort to high risk in search of them… tune in below!

Table of contentsWhy More People are SavingInterest Rates and the Federal Reserve Decline of Customer ServiceBank Accounts and LendingTraditional and Alternative Savings Options ComparedWhere Is the Best Place to Save Money?Whole Life Insurance: Emergency Fund and Alternative High-Yield Savings AccountWhy isn’t it Mainstream?Common Savings Mistakes to AvoidBottom Line

Why More People are Saving

Americans are saving more money than ever, yet bank savings rates are at an all-time low. So, how does a scenario like this happen?

We think primarily, COVID-19 has been an eye-opener for the world. On one hand, workers who were affected by job closures have likely realised that they didn’t have enough money saved to fall back on. While a tough lesson to learn, the fact that Americans have been successfully saving more money gives us hope. After all, having money saved is what enables you to weather economic storms (and seize opportunities when things are going well).

On the other hand, business closures meant a lack of things to do. Movie theaters, aquariums, museums, restaurants, and shops all closed. Pretty much all indoor (and many outdoor) businesses had to shut down for a good portion of the year. This also means that many families turned to other alternatives for entertainment, in other words, free. Hiking, swimming, and being outdoors became more popular. Americans started saving more money by default because so many businesses put a halt to operations.

So not only are people choosing to create better savings habits, they’re also creating better spending habits. Now that you have the money, it’s time to ask—where is the best place to put your money?

Interest Rates and the Federal Reserve 

A tumultuous economy means changing interest rates. The Federal Reserve controls interest rates, and in order to boost the economy, they’ve lowered rates dramatically, almost to zero. Meanwhile, they’ve also pumped trillions of dollars into the banks. Now, banks are at a surplus - meaning that overnight lending between banks is down, as are savings rates.

In the past, banks would use high-interest rates and “prizes” to incentivize opening accounts at their establishment, appealing to people who were looking for the best places to save money. Now, with a surplus, there’s no need for banks to offer this incentive. High savings rates are the bank's way of broadcasting that they want your money, and they’re willing to offer something in return. Now, banks can lower these incentives almost to zero, because they aren’t relying on that money to come in.

We’re seeing a mismatch in supply and demand. While there’s a high demand for a safe place to store liquid cash, where it will also grow, there’s relatively low demand from banks for new accounts.

Decline of Customer Service

One unfortunate consequence of this low-interest-rate market is a decline in customer service. Because banks do not need new accounts, they are not incentivising new customers, which also means that there is no incentive for them to provide better customer service. Combine that with a high demand for saving and a pandemic, and the issue worsens. Lobbies are closed,

There is a major problem in the world today: it’s not people disagreeing with one another… it’s that they cannot disagree agreeably, civilly, and most importantly, persuasively! Here, at the end of a turned upside-down year, the gift we need most is a solution. That's where The Go-Giver Influencer comes in.

https://www.youtube.com/watch?v=wtLxPvRHxZ4

In this interview, we’re talking with Bob Burg, co-author of The Go-Giver Influencer. 

So if you want a way to find common ground where there appears to be only irreconcilable conflict, and get the secret to achieving your goals, this is the answer you’re looking for… tune in below!

Table of contentsWho “The Go-Giver: Influencer” is ForWhat is Influence?Healing Political RiftsThe 5 Secrets of Genuine Influence1. Master Your Emotions2. Step Into the Other Person's Shoes3. Set the Proper Frame4. Communicate with Tact and Empathy5. Let Go of Having to Be RightAbout Bob Burg

Who “The Go-Giver: Influencer” is For

Bob Burg, along with his co-writer John Mann, has now written four books about the “Go-Giver” parable. The first story is about the seemingly counterintuitive steps to success that can make a vast difference in your life. The Go-Giver Influencer is the second book which tells yet another parable of success, and important lessons about relationships.

[5:09] “John and I… really wanted to take [the concept of] influence to a deeper level because of its importance. Now, in both of the other parables… influence was certainly a part of it. It was even law number three—the law of influence in The Go-Giver. So we have to really look at, ‘What is influence, and why is it important?’”

The answer is people skills. Talent can only take you so far in business and in life. And of course, hard work keeps your talent honed. Yet without people skills, you’ll have a hard time making actual progress toward your goals. Everything we do in life is filtered through the relationships we have with other people. That is where The Go-Giver Influencer comes into play.

What is Influence?

[8:18] “I think that’s the essence of influence, it’s pull. Pull as opposed to push, right? As in, how far can you push a rope? And the answer is not very fast or effectively. Influencers don’t push… their will on others. They don’t try to push their ideas on others.”

You can’t push your way to what you want—it won’t end well for anyone, nor is it sustainable. Influence is the art of pulling, or better yet attracting, people. In fact, the best influencers do this genuinely, because they understand that there’s power behind being inviting.

[10:20] “[Genuine influencers] will ask themselves questions. How does what I’m asking this person to do… align with their goals? With their needs, with their wants, their desires?... How am I helping them overcome a challenge...Now, when we ask ourselves these questions thoughtfully, intelligently, genuinely, authentically—again, not as a way to manipulate another human being to our will, but as a way of building [inaudible]---[we earn] that person’s commitment, as opposed to trying to depend on some type of compliance.”

Healing Political Rifts

2020 has been a tough, sometimes contentious year, and the rift between political affiliations has only grown. We’ve been most concerned by the conversations across political divides, which have put a strain on relationships of all types. And we’re even seeing a shift in the conversation. Between parties, we used to see, “I’m right, you’re wrong” discussions. Though not the healthiest outlook, there was still discussion. Now, the conversation is, “I’m right, you’re evil.”

[18:44] “This is a totally different frame, and one which makes it nearly impossible to engage. Because you’re not going to engage with evil. Evil is incorrigible. There’s nothing you can do with evil. So because of that, what people have done on both sides is hunker down, listening only to the information that supports...

If you’re planning to leave an inheritance to your children, there’s a new rule in the Secure Act that will probably cause your kids to pay more taxes if you pass on your retirement plan.

https://www.youtube.com/watch?v=3yQ22dT2H6I

Today, we’re discussing how the Secure Act, passed in 2019, affects your retirement plans and may front-load taxes to kids who inherit these plans. 

If you want to know what the Secure Act is, how it applies to you, and what you can do about it… tune in below!  

Table of contentsThe Key Takeaways of the Secure ActContributionsPart-time Workers Get 401(k) OptionsTax BreaksParental AidThe Secure Act and IRAsHow the Secure Act Impacts InheritanceMaximize Your InheritanceBook A Strategy Call

If you have an IRA, the following changes to the tax laws are important for you to know. These changes can affect how your inheritance is distributed from an IRA, making it prudent to reassess your financial strategy. We want to help you continue to maximize your retirement and still leave an inheritance, should you choose. Staying on top of the changes and making some smart pivots can save you and your family on heavy tax penalties down the road. 

We have designed this article as an overview of the changes so that you can meet with your CPA and financial advisors with confidence. It’s always crucial to be informed, yet work with a professional on the specifics.

The Key Takeaways of the Secure Act

Before we can dive too deep into the impact of these changes, and what you can do differently, it’s important to look at what those changes are.

Contributions

Previously, you could make contributions to your traditional IRA until age 70 ½. Now, you can make those contributions indefinitely. This also means that you don’t have to take your required minimum distributions (RMDs) until age 72. The implications could be an increase in taxes, for two reasons:

Your account has more time to grow. While growth is good, this also raises your tax liability.That two-year window (or more) gives room for tax brackets to change, and it’s more likely that taxes will increase than decrease. So if you’re taking a higher distribution, and the taxes increase, the tax hit could feel even greater.

Part-time Workers Get 401(k) Options

In the past, part-time workers were not eligible for 401(k) plans. Now, the Secure Act has created a provision for long-term part-timers to make contributions to a 401(k). This broadens the scope of who is eligible for government-sponsored retirement plans, which could entice more people to participate. 

Those who are eligible? Anyone who works 1,000 hours in a year, or who has worked 500 hours a year for three consecutive years. 

Tax Breaks

The Secure Act also rolled in some tax breaks, many specifically for businesses. One of the bigger breaks is for businesses who set up automatic enrollments for employees. This means that rather than opting into a 401(k) plan, employees may have to opt-out. 

Parental Aid

Along with other changes, a provision was added that will allow parents to withdraw $5,000 without penalties, to help cover birth and adoption fees. This can help offset some of the typical costs of new parenthood. 

This is significant, because in the past any withdrawals from a qualified plan before a certain age would incur a penalty. Similarly, parents will now be able to withdraw up to $10,000 annually without penalty from a 529 plan to repay student loans.

The Secure Act and IRAs

One of the reasons provided for the change in required minimum distributions, is that people are living longer. Often, people are working longer, too. On one hand, this allows the money more time to grow, and helps it go farther in retirement. On the other hand, it also raises questions about the tax implications in the long-run. 

We think one of the most prudent questions to ask yourself is: “If I’m not paying this tax on my income today,

Curious about how investing in raw land could help you accomplish your financial goals? In this episode, we’re talking with Mark Podolsky, The Land Geek, the raw land investor who’s completed over 5500 land deals, with an average ROI of over 300% on cash flips, and over 1,000% on the deals he sells with financing terms.

https://www.youtube.com/watch?v=AMB7SWZLyn8

So if you want to learn from a raw land investor who’s replaced his income and helped many other people do the same … tune in below!

Table of contentsHow Do You Invest in Raw Land?Doing Your Due Diligence with Raw LandWhat Happens Next?How to Make Your Offer IrresistibleRaw Land Creates ValueThe Risks of Raw Land InvestmentsPrivatized Banking and Raw LandAbout Mark PodolskyLinks

How Do You Invest in Raw Land?

In our interview, Mark starts us out with a case study, using Bruce as a hypothetical. In this instance, Bruce lives in St. Louis, yet owns 10 acres of land in Texas. He also owes $200 of back taxes. He’s advertising two things here: no emotional attachment to that raw land, and there’s some sort of financial distress.

You, as the raw land investor, would look at the comparable sales on his 10-acre parcel for the last 12-18 months. Then, you take the lowest comp divided by four, giving you what Warren Buffett would call a 300% margin of safety. Then you’ll send an actual offer. Pretend the lowest comp is $10,000. You would send an offer of $2,500. Chances are, Bruce will accept the offer, because it’s better than nothing.

In Mark’s case, 3 out of 5 people typically accept his offers. Then it’s time to do his due diligence.

Doing Your Due Diligence with Raw Land

When Mark Podolsky talks about due diligence, here’s what he means:

Does “Bruce” still own the property?Are the back taxes only $200?What’s the ingress and egress?Are there any breaks in the title's chain?Are there liens or encumbrances?Is there legal access?What are the neighbors doing?How far is the property from other services?What are the roads like?What is compelling about the property?

It’s crucial that before you make an investment on a property, you know all the important factors. You can also enlist help: Mark himself outsources this step to his team in the Philippines, because they are connected to an American title company. It’s not costly either. For larger investments, working with an American title company directly is beneficial. Or you can even outsource through Craigslist.

Taking the time or spending the resources to vet your land thoroughly will pay off in the long run.

What Happens Next?

The trick to raw land investments, after you vet the property, is to sell in 30 days or fewer. Then, you can make it cash flow similarly to a rental property, and be ready to invest in the next plot of land. So who do you sell to?

Fortunately, with raw land, you have built-in buyers: the neighbors. Intrinsically, the neighbors are going to have an interest in this land more than anyone else to start.  They may want it to protect their privacy, or to build out their estate. Giving them the first pass can often have a huge payout.

Should that not pan out, you have several other options to find buyers. Start with your buyer's list, then you can start looking online:

CraigslistFacebook Marketplace (or buy/sell groups)Land sale websites

How to Make Your Offer Irresistible

How you package and sell the land makes the offer irresistible. You ask for a $2,500 down payment and recoup your investment. Then, Mark recommends this: a monthly payment of $449 over 84 months at 9% interest.

This way, you have a onetime sale, earn your capital back, and then you have monthly cash flow without renters, renovations, or rehabs. Because you’re not dealing with tenants, you’re also exempt from Dodd Frank, RESPA, and the SAFE Act.

[13:28] “The game we play is, can we create enough of these land notes, where our passive income exceeds our fixed expense,

Most people never maximize their full financial potential. That means they don’t accumulate the assets they could, and what they do save and invest isn’t protected and gets eroded too quickly. Then they take distributions in a way that shrinks their income, and they’re always trying to outrun the fear of running out.

https://www.youtube.com/watch?v=L2qIGF_hwn4

Sound too close for comfort? This doesn’t have to be you. 

We’re talking with another of our stellar advisors on The Money Advantage team, Scott McCright. You’ll hear the tenured experience he’s gained in over 27 years of working with clients, and his approach as an educator, strategist, and engineer.

So, if one of your goals for the NEW YEAR is a fresh start financially, where you take ownership and lock in a plan you’re CONFIDENT will maximize your potential and do the most with your money… tune in below!

Table of contentsIntroducing Scott McCrightDefining Financial FreedomStrategizing for Full Financial PotentialMindset MattersOpportunity CostReach Your Financial Potential with Privatized BankingBook A Strategy Call

As we usher in this New Year, it’s time to think about your finances with fresh eyes. We recommend starting by zooming out: by looking at the big picture of your finances, you can maximize your lifestyle with efficiency. That means maximizing your income, your protection, your assets, and ultimately, realizing your full financial potential. To do that, you have to know how the pieces fit together. 

Today, we’re sharing with you a way to think differently. 

Introducing Scott McCright

Scott is a member of the team here at The Money Advantage and offers a really valuable perspective to our clients. What we’ve seen time and time again is that he treats everyone as he would treat his friends. And that is so crucial to our mission here at The Money Advantage and treating finance like a team sport.

After spending time in the Navy, Scott transitioned into the financial services world in 1993. He started first in insurance, and then moved to securities, when he had a realization. He was seeing time and time again that everyone was told to do exactly the same things. The advice wasn’t tailored for the individuals, and no one was really hitting it out of the park either. How could everyone expect to have different results when they were making the same mistakes? So he joined hands with other professionals, to see if there was a better way to help people. 

[7:25] “I’m a big believer in, ‘There’s not one specific product that’s going to get you where you want to go.’ It’s more in the how and the why you do things than it is the where.”

Defining Financial Freedom

The financial landscape has gone through many changes over the last few decades, though people can more or less agree on one thing: they are looking for financial freedom. We think one of the best places to start, as highlighted by Scott’s quote above, is figuring out your “how” and “why.” 

Get clear on what you want. What does financial freedom look like to you? What will you be able to do once you reach financial freedom, that you cannot do now? There are a few things that happen here when you get really clear on your vision. The first is, you can create a plan, or a strategy. If you’re working with a team of advisors, bringing your ideas to the table can be a great asset to the process.

The next thing that happens is, you create a sort of discipline, because you’ve pinpointed the future that you want for yourself. You’re motivated, rather than defeated by what you don’t have. 

This combination pulls you out of the narrow view and allows you to think about your big picture finances. It’s easier to create long-term strategies to reach your full financial potential when you’re working toward specific dreams. This is the time to make sure that all the pieces and parts of your financial life are going to work together to get you there.