How To Dump Business Profits In Real Estate For Max Tax Benefits


You own a business and you’re producing profit. And you’re thinking, “Man, I’m paying way
too much in taxes. How can I reduce my taxable income?” Well, I’m going to tell you right now today
that the most powerful way to do that is actually through real estate investing. Taking profits. Putting them into real estate and getting
maximum tax benefits. And today, I’m going to show you exactly how
to do it. So, I’m here joined with Frank today. Dude, Frank, how you doing? -Doing well, thank you. -Good. So, Frank and I, we’re recent friends as of
the last few months. I have enjoyed your entire family getting
in the game of real estate investing. -Thank you. -And one of friend’s accelerants right now
is, “Kris, I want to actually have my business produce more money, more profits and I want
to funnel that into real estate.” Good idea, bad idea. We’re really here to find that out today. So, first of all, Frank, how do we know each
other? -Well, I mean, fortunately, my son, Cole came
to one of your events probably about a year ago now. Was totally thrilled by it. Want to be a part of it. So, he came to work with you, fortunately. And he’s introduced me and several members
of my family to you. And we’ve all become partners. -And they’ve all been moving forward by now
in real estate. -Yup. -And you got the active business going on. And today’s question is really centered on
making a business profitable, what do you do to reduce your tax burden. And I want o share with you a couple of really
specific ideas on that. -Perfect. That’s what I need. -The first one is that a lot of people don’t
know this about real estate. Let’s say that you go and buy 5 homes. And let’s say that at the end of the day,
those 5 homes lose you $20,000. Would you be excited? -If it was actual awesome cash, not very. -No. But it’s not an actual awesome cash, right? -Right. -You might actually make 15 or 20 thousand
dollars. But based on IRS accounting, you can make
$20,000 of cash and show $20,000 of loss. -That’s exciting. -It is super exciting, right? Because it’s like, “Wait a second, if I keep
buy more real estate, then all producing tax breaks that I can really keep shrinking my
taxable income.” -That’s the plan. -If you show 20,000-dollar loss in real estate
when you made 20 grand, then that transfers over to your business and your personal life. Now, it’s like, “Wait a second. I was going to show that I made $80,000.” Well, that 20,000-dollar right off now takes
that down by $20,000. It’s going to lower your tax bracket and lower
the amount of taxes. So, the percentage is going to shrink. And the amount is going to shrink even more. If you’re making $200,000 a year. For you paying 40% taxes, we’re talking about
8 grand that you’re now not giving to the government that you get to keep. And I don’t know about you, but keeping $8,000
put a smile your face, right? -Absolutely. -So, people sometimes want to know, “Wow! Kris, how much real estate should I buy?” And my answer is “You should buy as much real
estate as it takes to eliminate your taxes.” Or at least somewhere there else, right? -Absolutely. -So, you clearly understand that principle. -Yeah. -And so, now it’s about “I need my business
to produce enough money to pay for my bills. And then whatever I have left over, I want
to pay myself to invest with. So I can then actually reduce my taxable income.” This is now, as a business owner what I call
a retirement account. Because if you work for someone else, maybe
you can build a 401K. But dude, when you’re business for yourself,
Frank, who’s building your 401K? -Just me. -It’s just you. You are your retirement plan. -I’m the only one. -Which is exciting and scary. -That’s right. -Scary if you’re not doing anything. -Right.- And thrilling if you’re actually
going above and beyond. -If you have a plan, you bet you. -So, one of my businesses, it is just a cash-cow. I strip all that money out, I dump it in to
real estate and that real estate produces my tax-shelters. And then I actually get my retirement plan. I get the cash flow from the deal. So, I’m steal getting paid. But then I also shrink my taxes. -That’s exactly what I need. -So, that’s what happens when you pair real
estate to business. -It’s exactly what I need to know. -So what do you think is going to happen this
next year? What are your hopes for your business? -Again, I’m just getting started of having… I’ve had some really successful conversations. I got a couple of good, really good contracts. So, by the end of this year, I really feel
in my heart that I’m going to have some pretty good cash that I’ve got to do something with. -Good. -I’ll be able to cover mine that. Cover my living expenses and then have something
to.. That I’ve got to do something with. -That’s awesome, Frank. I’m so awesome for you. -Me too, actually. -Listen. For those of you that are watching this and
wondering, “What? I’m a business owner. I’ve got profits.” Or “I simply pay too much in taxes.” Maybe you work for somebody else. If you pay too much in taxes, you don’t have
to be a business owner to get this benefit. A lot of people, Frank, they’re putting their
money to 401K, they’re putting their money in an IRA. They’re trying to get their house paid off. And I think those are so stupid things to
do. I know it sounds really bold but it’s like,
“I’m putting enough money in those things that I can’t accumulate enough to actually
have the retirement that I want.” -And I think most people do that just because
they don’t have another option. They’re not aware of what options are out
there. -Yeah. But if you were to take that and put that
to real estate and get significantly more growth, actually get to paid the cash flow
and reduce your tax basis, friends that’s what I call a triple win. That’s a win, win, win. -No brainer. -Most of the stock market stuff is is really
producing single-digit ROI. And rule 72 shows that you’re not going to
double your money on that kind of stuff for 15/20/25 years. So, it’s like, “Wait a second, I only got
40-working years. I’m only going to double my money twice?” It’s like.. Well, I can get real estate to double ever
3/4/5 years. And so, you need something that will accelerate
that. So, it’s not just that real estate will actually
decrease your taxes. Real estate also increases your income. And it also increases your overall appreciations. Since 1963, according to US census bureau,
real estate has increased in value year over year in average of 4.5%. -Wow. -And what that means is… 4.5% doesn’t sound
like a lot. But 4.5% over 5 years is.. That compounds to 30%. So, you own a 100,000-dollar property, now
it’s 130,000. You own a 300,000-dollar property, it’s now
430,000. So, real estate just… Because it goes up with time, while giving
the tax benefit plus getting paid on money I don’t have paid tax on, that’s really the
whole genius behind it. So, whether your self-employed or whether
you work for somebody else, the strategy most definitely works. -Yeah. I need this information. And so does everyone else. Really. -Yeah. Well, Frank, thank you so much for being here
today. -Appreciate it, thank you. And for those of you that are thinking, “Man,
this was really good information”, make sure you subscribe. Ring the bell. Everyday, I got a video coming out to help
you become the financial genius that you should be in life so that you can live the life of
your dreams. For those of you that want to know more about
those tax benefits, click the link below. You get the chance to talk to my team and
say, “Alright, this is how much I’m paying in taxes. I want to pay a lot less. How do I do that?” They’re going to show you. Good job, buddy. -Thank you.

3 comments

  • Proactive Intuition

    Tax benefits in business and real estate are the best!

  • how do u make realestate double in 3-4 years?

  • I'm a 15 year old kid in high school it's my first year and get bad grades if it continues like this my school will kick me out and my father will put me to work. I want to get into real estate once I'm 18 wish me luck for my future. 😔😁

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