Are you feeling lost when it comes to seeking financial assistance? You're not alone! Many people are struggling to determine who to turn to for help with their finances. Let's clear up the confusion by examining the roles of three key players: the Certified Public Accountant (CPA), the bookkeeper, and the CFP® (CERTIFIED FINANCIAL PLANNER™). Understanding their areas of expertise will empower you to make the right choice for your financial needs. Let's dive in and shed some light on who can best assist you in navigating your financial journey.

A Certified Public Accountant (CPA) is your financial superhero when it comes to your taxes. They're experts at handling taxes, making sure your financial statements are correct, and following compliance. So, basically they’re the ones who need help you in understanding taxes, making sure your money reports are accurate, and making sure you stay on the right side of the Internal Revenue Service.

Think of a Bookkeeper as your financial organizer. They handle your financial records by recording every transaction and tracking all your money coming in and going out. They manage your accounts, ensuring your bills are paid promptly and keeping tabs on who owes you money. While they're at it, they also review your bank statements and create reports that detail how much money you have and where it's being spent.

A CFP® (CERTIFIED FINANCIAL PLANNER™) professional acts as a personal financial coach, guiding you tow ... Read More…

The coffee shop is quiet for a change. The normal morning bustle has yielded to a lull, giving the baristas a chance to enjoy a break and catch up on some cleaning before the lunch rush.

I’m only partially aware of what’s going on around me because, I’m busy obsessing about my investment account. I’m WILLING the number to go up just a few more cents. The problem is it’s been going in the wrong direction for months.

My obsessing is interrupted by my phone. It’s a call from a tenant living in one of my rentals who has a toilet that won’t stop running. She’s already told me twice, and I keep forgetting about it.

With promises to stop by before the day is over, I barely hang up when I get another call, this time from an investor with a mobile home park deal that I’ve been putting off for weeks, because I haven’t made time to look at the numbers and see if it’s a deal worth doing.

Meanwhile, my email pings to remind me of a deal I’ve been working on, and the seller is wondering when we’re going to close.

I feel like I’m running around in circles and doing lots of things, but NONE of them well. If I’m being honest, I’m not making the kind of money I want to. And to top it all off, I have no life outside to work or thinking about work. It controls nearly every waking moment of my day.

This was the state of my life not just that day at the coffee shop but for YEARS.

It wasn’ ... Read More…

Let me first tell you a little bit about my background. A few years ago, I was buying as many homes as I could with traditional financing. But when the banks started telling me that I couldn’t buy any more homes, I started buying homes creatively – thru “subject-to” and “sandwich lease options” methods. In the course of 18 months, I bought over 16 homes!

Yes, I owned 16 homes!!! I thought I had it made. I was making $100 - $200 net cash flow on each house. My passive income was growing, and I was steadily getting out of the rat race. I was a “Successful Real Estate Investor” now – or so I thought!

But guess what? I quickly discovered that while I might have been Equity Rich… I was seriously Cash Poor. I had lots of equity, but no cash to pay the bills!

(How many of you know - you can’t eat “equities”?)

But let’s look at my situation a little deeper… All that equity I thought I had in those 16 homes… was a HYPOTHETICAL MYTH. All the “equity” I thought I had quickly vanished when the market started crashing. All of the sudden, I was equity poor AND cash poor. I was so over-extended and over-leveraged. I was buried in debt, and most of my private lenders started asking for their money back.

I started getting behind – on everything. I had a serious cash flow problem. I had to figure something out&he ... Read More…

Let me first tell you a little bit about my background. A few years ago, I was buying as many homes as I could with traditional financing. But when the banks started telling me that I couldn’t buy any more homes, I started buying homes creatively – thru “subject-to” and “sandwich lease options” methods. In the course of 18 months, I bought over 16 homes!

Yes, I owned 16 homes!!! I thought I had it made. I was making $100 - $200 net cash flow on each house. My passive income was growing, and I was steadily getting out of the rat race. I was a “Successful Real Estate Investor” now – or so I thought!

But guess what? I quickly discovered that while I might have been Equity Rich… I was seriously Cash Poor. I had lots of equity, but no cash to pay the bills!

(How many of you know - you can’t eat “equities”?)

But let’s look at my situation a little deeper… All that equity I thought I had in those 16 homes… was a HYPOTHETICAL MYTH. All the “equity” I thought I had quickly vanished when the market started crashing. All of the sudden, I was equity poor AND cash poor. I was so over-extended and over-leveraged. I was buried in debt, and most of my private lenders started asking for their money back.

I started getting behind – on everything. I had a serious cash flow problem. I had to figure something out&he ... Read More…

I don’t want to be a buzz kill…

…but there’s too much mushy thinking in the short-stay space. 

So much so that I see short-stay landlords acting like home-sharers — and having a lot of fun doing so.

However, if you check their bottom lines, you’ll see they aren’t doing much better than passive landlords. And doing extra work without capturing extra income is not the way to run a for-profit business.

As a foaming-at-the-mouth Airbnb-er since 2011, one who is both a provider and user with stays all over the United States, let me offer a bit of structure.

Three Short-stay Business Models 

You need to be crystal clear about which type of short-stay business you’re operating.

The table below summarizes the financial goals of the three models

Each business model has its own unique mode of operation, expected level of service, and

acceptable rate of return. You’ll notice, however, that only short-stay landlords have profit as a goal.

So, if you’re a home sharer or vacation rental provider, you can stop reading here. What follows is not intended for you (although you might find it interesting — so keep reading). 

If you’re a landlord considering a short-stay business, you should follow these “do’s” and

“don’ts” to avoid costly mistakes and become more profitable than a typical landlord.

The following is for rental owners that choose to provi ... Read More…

Financial freedom is multi-layered. First, you want to cover the bills. Then, you build stability, so you have less worry. Afterward, you layer on some more to enjoy life. Finally, most turn toward living their best life now AND leaving a legacy.

As someone who loves the Infinite Banking concept, many people ask me questions about life insurance and how a properly designed policy could benefit their journey to greater financial freedom. What they often forget is that any financial concept is best implemented as part of a comprehensive financial strategy.

As a CFP® (CERTIFIED FINANCIAL PLANNER™) professional, what do I believe is the secret to strategic planning to get you to financial freedom quickly and without taking unnecessary risk? I just did it. It's asking powerful questions.

Yet, too many people don't know the right questions to ask. To empower you on your journey, here are 10 of my favorites.

1. What would be a realistic goal for someone in my financial situation? – Sometimes, you’re too close to your circumstances to see potential goals you should consider. This question helps reveal what you might be missing.
   
   
2. How often should I assess and determine my financial goals and strategy to achieve them? – Situations change. Does it make sense for you to assess your goals and strategies once a year? How about more often when things are changing more rapidly?
   
   
3. What are some educational resources or tools you recommend helping bette ... Read More…

Deposit Refunds for Resident Retention

        Consider the benefits of keeping good residents longer. By providing a “cash back” incentive, you not only encourage longer stays but also increase the likelihood of a larger deposit refund for the resident. This strategy can significantly improve your property's stability and reduce turnover costs. 

        I expect to redo apartments every 4 to 5 years anyway, so why not offer to start sending back annual deposit refunds, perhaps in $100 installments, starting the 4th year and continue to do so as long as the resident stays, passes annual inspections, and there is a balance remaining on the deposit?

Four “Nevers” When Screening Potential Residents

1. Never rent without asking for a picture ID
2. Never rent to someone who needs to move in “right away.”
3. Never rent to someone who flashes all rent and deposit in cash
4. Never turn over the key before doing a credit check and receiving all monies due in certified funds.

Inspire Residents to Pay On Time! 

        Strengthen your rent payment system by rewarding tenants who consistently pay on time. For all tenants who have sent in every rent check on time and in full for one full year (any failure starts another year), offer a coupon for $30 off the rent in the month of their choice over the next three months – if it accomp ... Read More…

Deposit Refunds for Resident Retention

        Consider the benefits of keeping good residents longer. By providing a “cash back” incentive, you not only encourage longer stays but also increase the likelihood of a larger deposit refund for the resident. This strategy can significantly improve your property's stability and reduce turnover costs. 

        I expect to redo apartments every 4 to 5 years anyway, so why not offer to start sending back annual deposit refunds, perhaps in $100 installments, starting the 4th year and continue to do so as long as the resident stays, passes annual inspections, and there is a balance remaining on the deposit?

Four “Nevers” When Screening Potential Residents

1. Never rent without asking for a picture ID
2. Never rent to someone who needs to move in “right away.”
3. Never rent to someone who flashes all rent and deposit in cash
4. Never turn over the key before doing a credit check and receiving all monies due in certified funds.

Inspire Residents to Pay On Time! 

        Strengthen your rent payment system by rewarding tenants who consistently pay on time. For all tenants who have sent in every rent check on time and in full for one full year (any failure starts another year), offer a coupon for $30 off the rent in the month of their choice over the next three months – if it accomp ... Read More…

As a landlord, it is in your best interest to require your tenants to maintain Renters insurance for the duration of the lease.  Not only will this protect your tenant, but it will also protect you.

1. The only thing a tenant owns in your building is their personal belongings. The only way to protect those belongings is to buy Renters insurance. Renters insurance will cover personal property in the event of a fire or if stolen or damaged. It also reduces the threat of a lawsuit against you in the event the client claims landlord responsibility for damage to their belongings.
2. There are many different options and endorsements that can be attached to a Renters policy. We can cater the policy to the renter by easily changing coverage amounts on personal property or liability. We can extend property coverage to another property or even cover identity theft. Renters insurance can also cover living expenses for the tenant while the home is being repaired or rebuilt.
3. A Renters policy will provide an extra layer of protection for you from being sued if your tenant owns a vicious dog or is negligent in the injury of another person on the property. Most insurance companies require vicious dog exclusion. While this exclusion protects the insurance company from paying out, it will not protect the landlord from being sued. Renters insurance can cover this risk.
4. Renters insurance is also a clandestine way to weed out potentially bad tenants. If your client cannot afford a ren ... Read More…

Every investor has heard how important it is to build rapport with distressed homeowners. What we never hear about is how to do it. What is it about someone that makes us instantly like or dislike them? We do not really know what it is about that person; we just know it is something. 

Rapport is developed in the subconscious. We cannot quite pinpoint it, but there is something about that person that seems familiar and makes us feel comfortable around them. 

So…how do you establish rapport? Let’s start with a few basic tips. When I am looking for distressed homeowners, I like to knock on doors. It is the fastest way to get deals. If I knock on twenty doors over a weekend, I will have several contracts by Sunday afternoon. I would rather spend a day or two getting multiple deals instead of waiting for my phone to ring, hoping for just one deal. 

Here are some dos and don’ts when you knock on doors or meet a homeowner in person:

Do not wear sunglasses. Homeowners cannot see your eyes and subconsciously you seem suspicious.

Never wear a hat, like a baseball cap. Again, homeowners cannot see your eyes and are suspicious.

Always have a clipboard in your hands so that both of your hands are visible. If you tend to stand with your hands in your pocket or behind you, the homeowners will think you have a gun and are going to rob or kill them and will not hear what you are saying.

Never wear cologne or perfume. I know this one seems strange, bu ... Read More…