Accelerating Your Financial Goals

In the world of business and real estate investing, the difference between good and great often lies in the details. Today, we're diving into strategies that can dramatically accelerate your financial goals by leveraging existing assets, minimizing taxes, and strategically using debt.

The Power of Depreciation: An Underused Weapon

Let's cut to the chase: depreciation rules, especially Trump-era bonus depreciation, are a goldmine for savvy investors. Here's the kicker – you can offset income taxes for 1-3 years, essentially giving yourself tax-free income for 12-36 months.

Real-World Example: A Texas man bought a 90-unit apartment building for ~$3,025,000 using home equity and savings. He deferred taxes on ~$243,000 in cash flow from that building, then leveraged the tax savings and a cash-out refinance to acquire a storage facility. He increased his net worth by ~$7,000,000+ in less than 4 years by leveraging tax savings and strategic debt planning.

Strategic Debt: Your Pathway to Infinite Returns

Borrowing against assets and offsetting interest expenses isn't just smart – it's a way to create what we call "infinite returns" or "free money." Uncle Sam is essentially subsidizing your interest costs because you're creating jobs and stimulating economic growth.

Homeowner Case Study: Start with your own home, if you're comfortable with it. A transit worker bought a vacation home with zero out-of-pocket costs and no change in monthly expenses using our Strategic Debt and Equity program. They kept money in their retirement account growing at 7.35% rather than making a large down payment. The result? Three appreciating assets instead of two, for nothing out-of-pocket.

Business Buyer Case Study: But let's take this a step further. Imagine you're buying an existing business. One of our expert partners recently structured an SBA loan that allowed a business buyer to acquire more than $1M in income while simultaneously lowering the business debt. This clever restructuring automatically increased profits by an additional $400k post-closing.

Think about that for a moment. What could you do with an extra $400k or $1.4M? Boost your retirement savings? Buy that dream vacation home? Pay for your children's college education? The possibilities are endless when you leverage Strategic Debt correctly.

Financing Options You Need to Know

1. SBA Loans: Low down payments for existing profitable businesses.

2. Asset-Based Loans: Bridge loans, receivables financing, seller carrybacks.

3. Revenue-Based Loans: Finance income streams without increased personal risks.

These options allow you to expand without putting all your eggs in one basket. We'll cover more financing details in future posts and newsletters.

Tax Strategies That Make a Difference

Remember, it's not about how much you make, but how much you keep. Here are some strategies that can save you tens of thousands or more:

1. Income Shifting: A marketer earning $4,000,000 in salary could save six to seven figures by restructuring his business entity.

2. Accelerated Depreciation: A storage facility owner missed $3,900,000 in deductions across a portfolio of properties.

3. Strategic Entity Structuring: S-Corps are usually better for six-figure earners up to $300k-$500k, but circumstances vary. I'm helping a 7-figure earner potentially shave $600k from their tax bill.

The Importance of Holistic Planning

Here's the truth: without careful legal, tax, financing, insurance, real estate, and accounting planning, you're leaving money on the table – or worse, exposing yourself to unnecessary risk.

Real-Life Impact: A Bay Area attorney slashed out-of-pocket college costs by $212,000 and retired 5 years ahead of schedule through strategic mortgage planning, picking the right schools, and tax cutting.

Putting It All Together

1. Analyze Your Current Assets: Look for hidden value and inefficiencies.

- Example: A small business owner barely earning $90,000 sold their existing building, created an extra $400k+ income, offset $700k in taxes, and acquired another building.

2. Use Debt Strategically: Use smart borrowing to create new income streams.

- Example: Use debt (preferably non-personally guaranteed loans) to acquire income-producing assets, like the business buyer who increased profits by $400k through strategic loan structuring.

3. Minimize Expenses: Look for savings in every area of your business.

- Example: Our healthcare insurance expert partner recently found approximately $24,000 in savings per employee for a company with over 100 employees.

4. Optimize Your Tax Strategy: Work with experts to uncover missed deductions.

- Old tax returns: We found $280k in previously unclaimed real estate-related deductions.

- Increase net proceeds from business and property sales ranging from $190k in a dental practice to $1.5M extra cash in the bank for a service business.

- We found $600k in savings by re-structuring entities and compensation for a business with ~$2M in profits.

- One of our expert partners' advice increased net proceeds from commercial building sales ranging from $1M-$3M by implementing various strategies.

5. Plan for Growth: Use freed-up capital to invest in new opportunities.

- Determine if you want to pay tax and sit in a rocking chair or fuel future growth with 6-and-7-figure savings as financial weapons.

Remember, wealth creation isn't just about making money – it's about strategically using every tool at your disposal. By combining these strategies, you're not just playing the game – you're changing it entirely.

Are you ready to accelerate your financial goals? It's time to stop leaving money on the table and start building real, lasting income streams.

Preparing now will prevent missing out on life-changing opportunities as we head into an uncertain future. As someone who's been in the trenches, I can't stress enough how much I wish I had this knowledge and access to capital during the 2008-2012 period. Don't let history repeat itself – arm yourself with the right strategies and expertise to thrive in any economic climate.

This newsletter is for informational purposes only and does not constitute financial advice. Always consult with qualified professionals before making significant financial decisions.