Tag: Money (73 articles found) - Clear Search

A Financial Systems Check-Up For Your Business



As A Real Estate Investor, This Is  Where The Rubber Meets The Road

Usually, keeping track of numbers is tedious.

Check it out! What are the bene’s that make this task more attractive than the usual alternative…”Oh Geez. I’ve got a closing on Monday and I need financials.”

Your business obviously makes and spends Money. The pluses and minuses add up (you hope) to being able to stay in business, and a look at the books tells you if your business is doing okay or headed for trouble.

What are your books telling YOU?

In our experience, it’s often the company’s financial system (or lack thereof) that makes the answer easy to discover or downright difficult.

Have you looked at your own business’s financial system lately? Would you know how to read between the lines to interpret what you see there?


How To Create -- And Keep -- Personal Independence



“Focus on being productive instead of busy.” -Tim Ferriss

Often, as we strive to keep our heads above water in these culturally crazy times, it's easy to lose sight of why we're all working hard each day. What is the goal? What is it we're trying to accomplish by earning wealth? For me -- and for many others -- the answer is cashflow independence.

Now, I would define this as "having an income sufficient for your basic needs and comforts from sources other than paid employment." Independence implies freedom. It's the condition of having saved and invested Money so you can do whatever you choose. Whether you elect to keep working doesn't matter -- you have enough saved and invested to follow your dreams.

But is independence (in the monetary sense) just a pipe dream? Is it something only for the lucky and the strong? No, it's a goal that anyone can reach, if they're armed with some basic knowledge and make some smart choices.

As I see it, there are four keys to accu

Janet Behm’s Tips for Building a Business Emergency Fund



“Luck is what you have left over after you give 100 percent.” - Langston Coleman

Prior to the economic fallout from 2020’s happenings, the typical American small business only had 28 days’ worth of cash reserves on hand.

Meaning, the average small business in this country couldn’t survive for a full month if revenue were suddenly turned off. As a result, Congress had to prop up small businesses through programs such as the EIDL and PPP loans that you’re sick of hearing about by now.

As the economy rebounds strongly, it’s a good time to set aside a business emergency fund for your business to tide you over during the next period of economic upheaval. This isn’t doom and gloom thinking, it’s simply the reality of the business cycle: There will be another recession at some unknown point in the future.

You Need To Know How Much Is Enough
In many ways, your business eme

Free Puppies, Sleight Of Hand, And Pennies On The Dollar



Some things are obviously a sales pitch and a come-on. Unsuspecting taxpayers get hooked into this tantalizing offer every year.

Almost no one qualifies for this program from the IRS. By-the-way, it is unethical for a licensed tax preparer to make this offer.

When I hear commercials on TV or on the radio that promise specific results to people who owe Money to the IRS, it really bothers me.

One of the most pervasive advertising schemes you’ll hear repeated over and over again is about only paying “pennies on the dollar” to the IRS.

The reason this one rubs me the wrong way in particular is quite simple: It doesn’t exist.

If you’ve heard this program referenced and have been curious about it, it’s time to set the record straight.

The Truth About “Pennies On The Dollar”

Crypto and Buying a Home


Originally posted on Porch.com

If you’ve ever walked around at an arcade with a couple pocketfuls of game tokens or won similar tokens at a fair to be exchanged for candy and stuffed bears, you already know how cryptocurrencies work. Except cryptocurrencies, like Bitcoin and Ethereum, are digital currencies that can be used to purchase goods and services. Today, there are more than 6,700 types of cryptocurrencies, some better known than others. Traded as commodities on the stock market and known for their volatility, cryptocurrencies have become increasingly mainstream as more people invest in them and trust the blockchain technology employed to secure them. In fact, some people are using their crypto assets to purchase large, expensive items—like houses!

Introduction to Cryptocurrencies

Major cryptocurrencies such as Bitcoin, Ethereum, XRP, an

The Side Hustle Tax Trap


“Before you talk, listen. Before you react, think. Before you spend, earn. Before you criticize, wait. Before you pray, forgive. Before you quit, try.” - Ernest Hemingway

Earning some extra cash from a side hustle is something many are doing these days. Here are some tax implications we want you to know about so you can hold onto as much of it as you can.

In most situations, you’ll be earning this extra income as an independent contractor, rather than as an employee. As a point of clarification, you may hear the following terms bandied about in relation to the gig economy

Independent contractor
Sole proprietor
Schedule C business
1099 contractor

Here’s the important part: All of these terms mean the exact same thing.
In other words, if you’re delivering for Doordash on the weekends, you’ve now become the self-employed owner of a Schedule C sole proprietorship business.
Now, let's prepare you for what this means in terms of your new tax situation and responsibilities.

You’re Responsible for More Taxes

When you work a regular job as an employee, your employer pays half of the legally requ

What Business Owners Need to Know About Commercial Real Estate Mortgages



"You just can't beat the person who won't give up." - Babe Ruth

For many people, the American dream includes a cozy home with a manicured lawn, and our home loan system is merrily set up to make this dream a reality for quite a few people.

But for entrepreneurs dreaming of owning their own store, shop, or office location, the dream is a lot murkier. There are quite a few differences between residential mortgages and commercial real estate mortgages, and you need to be sure you fully understand what you're getting into before taking the plunge into commercial property financing.

Commercial Differences from Residential Loans
The United States has some of the best home loan options in the world. The most common loan type, which you're probably familiar with, is a 30-year, fixed-rate loan. These residential loans are readily available, have low interest rates, fairly low fees, and carry no prepayment penalties.

Commercial real estate mortgages tend to be the polar opposite.

Commercial mortgages tend to be much shorter time periods. Five to ten years is a typical loan term. The monthly

Planning For a 30-Year Retirement



“The greater damage for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” - Michelangelo

Your retirement savings – combined with any pensions you’ll receive plus Social Security – will ultimately dictate the lifestyle you’re able to live in retirement.

Looked at another way, knowing how much you’ll need to withdraw from your retirement portfolio every year can help you determine how much you need to save.

From either perspective, these are good numbers to know. As the old saying goes, failing to plan is planning to fail. So, how do we go about making these determinations?

Safe Withdrawal Rates
Back in 1998, three finance professors at Trinity University in San Antonio, TX published what has become one of the most influential research papers in the history of investing. The purpose of the study was to

Partnering v. Syndications Part 2


In our last blog, we covered the considerations that determine when you might be engaged in a partnership or a syndication. And, if you fall in the syndication category, then you’ll need to comply with SEC regulations. Or, if it’s an actual partnership, then you do not. That is an important question to answer and not always as clear cut as you might think. There are a lot of variables and uniqueness to your specific deal that can make a big difference in the answer.

In today’s blog, we are going to cover the legal structures of these two types of investing techniques. Let’s start with a syndication.

A syndication is almost always an LLC structure. But, before that, you will also need a Private Placement Memorandum (PPM). This is a business plan with the terms of what you’re offering that will be giving to potential investors. You may also need a Subscription Agreement. This is an investor’s pledge to contribute to the deal at the stated terms before the syndicators actually need the investment. Then at some point the Subscription Agreement is “called,” and the investor will wire funds at that time, completing the exchange. Then, of course, there is paperwork to be submitted to the SEC and to states in which you are raising funds.

Now let’s talk about the operating agreement for the LLC.

Businesses Win That Are Controlling Costs



“You may be disappointed if you fail, but you are doomed if you don’t try.”  - Beverly Sill

Depending on the type of business you run, you have a myriad of things you need to pay for to stay in business from rent to office supplies to payroll to inventory (not to mention all those pesky taxes).

When a business is brand new, most business owners go over the top controlling costs. But over time, they tend to loosen their grip on such things and inevitably experience “cost creep.” Sound familiar?

Every dollar you spend on a business expense means one less dollar in profit for your business (think renovations). So, it’s a good idea to periodically check in on your expenses to make sure you’re controlling costs where needed.

But where do you start?
Looking at your income statement may just give you a headache. Plus, that P&L is a summary of categorized expenses and doesn’t tell the full story about individual costs racked up throughout the year.