1st segment 9:05AM Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. You can connect with me at www.JoGarner.com. Thank you to real estate attorneys Rob Draughon and Shelley Rothman of Griffin, Clift, Everton and Maschmeyer for sponsoring Real Estate Mortgage Shoppe today. For your real estate home purchase or refinance, contact Rob and Shelley to handle your closing (901) 752-1133. Our general topic is AX THE TAX-How To Shelter Your Income Using A Self-Directed IRA For Your Real Estate. Subscribe to get Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com Call us while we’re live today September 26, 2020 at (901) 535-9732.
Today you will be hearing from the pros on how to shelter more income using your real estate and a self-directed IRA. I will be sharing some customer stories of ways they were able to use their real estate to pay less in taxes. John Bowen of Equity Trust will be sharing examples of how you can use a self-directed IRA. CPA Keith Fulfer will be offering more tax saving insights.
John Bowens
In the Real Estate Studio for the very first time we have John Bowens, Senior Manager at IRA custodian Equity Trust Company. John, you are one of the most sought-after and respected educators in the self-directed IRA industry, partly due to your unique ability to take a complex issue and break it down into simple-to-understand terms. Currently, John draws from his 15 years in the real estate industry and his experience as an active real estate investor. He has trained 50,000 investors, spreading the message about the power of building tax-free wealth and leaving a lasting legacy by investing in what you know best. (John introduces himself and lets our listeners know what Equity Trust does for their customers)
(Jo) Also in the studio this morning we have Keith Fulfer, Certified Public Accountant with the Pickler Accounting Advisors. Keith, you are well-known and respected in the Mid-South When I asked the president of Memphis Investors Group the best way to reach you, he said, “you can’t go wrong with Keith. He is one of the best CPA’s in the business.” (Keith introduces himself and talks about what he does for his clients)
(Jo) Over the last 30 years my career as a mortgage loan officer has given me some valuable insights I have learned from my mortgage clients. For instance, if I ask you- our listeners, “What is the biggest bill you pay?” Many of you would say it was your mortgage. The biggest bill I see most people paying is not their mortgage. The biggest bills most people pay are for their taxes.
I have shared Raymond Ridley’s story on this show a number of times. But Raymond (not his real name) was a hard working realtor. The harder he and his wife worked, it seemed like the less money they had available to spend. Year after year they worked harder but they weren’t getting ahead too quickly and spent less and less time with their children.
Then Raymond decided to try to find a way to work less and have more. He discovered that he and his wife were paying almost 50% of their income in taxes. What could he do to legally keep most of his money?
Raymond and his wife started buying homes to hold and rent to tenants. Over a course of time, they were making more money and getting to keep almost all of their income because of the multiple tax advantages and write offs they could take on their real estate properties. He and his wife committed to reinvest to buy and make an income on more and more homes. “It is amazing how much faster you can build your income and wealth empire when you can use for investment the money you used to have to pay to the IRS.”
John Bowen if Equity Trust Company, please share with us some ways we can use a self-directed IRA to keep more of our hard earned money. (John continues launching into his topic until 9:15 AM break. Keith, feel free to comment or ask questions of John )
You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. What do YOU want to accomplish with your mortgage? Make your plan. Let’s work your plan if the deal works for you today, let’s do it today. When we come back John Bowen of Equity Trust will be talking more about Self-Directed IRAs and we will be hearing more from Keith Fulfer, CPA. See you back in just a moment.
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TOPICS COVERED BY JOHN BOWENS, SR. SALES MANAGER FOR EQUITY TRUST
Radio Interview Questions
- A lot of our listeners might not be familiar with a self-directed IRA or self-directed investing, can you provide some background on what a self-directed IRA is, and how it is different from an IRA?
- Why would someone want to use a self-directed IRA? What are the benefits? (the answer does need to be worded as ‘potential’ benefits)
- Can you provide examples of what some of your clients are investing in with their self-directed IRAs? Tell client stories
- Investors looking to generate long-term wealth are looking for ways to reduce taxable income – how could a self-directed IRA help reduce an individual’s tax burden?
- Are there different types of self-directed IRAs? What are they?
- Is it more complicated to invest with a self-directed IRA, how does it actually work?
- Are self-directed IRAs new – how long have they been around?
- What should people know about self-directed IRAs – are there special rules or qualifications needed for these accounts?
- If someone is interested in self-directed IRAs, what should they do to get started?
- Is a custodian such as Equity Trust Company needed to use self-directed IRAs – what are some things people should look for when evaluating a self-directed IRA custodian?
- How can our listeners learn more about a self-directed IRA and if it’s right for them? TrustETC.com/GO
(9:35 AM) TOPICS COVERED BY KEITH FULFER, CPA PICKLER ACCOUNTING ADVISORS :
- How to take advantage of the capital gains tax exemption on the sale of your primary residence?
- Holding real estate investments for a year or more if you pay and sell multiple properties to minimize tax
- How does the 1031 exchange work to defer taxes?
- Can renting part of your personal home to a boarder help you on taxes?
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(9:35 AM) TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER
- How to get started acquiring your own portfolio of income producing real estate
- You don’t have to have 20% down to acquire rental property. You can buy a primary residence with as little as 5% down or no down payment at all. Call me and let’s look at how to reach your goals on a home purchase.
- You don’t have to have 20% down to buy a rental property. Most of your traditional mortgages to purchase income producing property requires 15% to 20% down payment, but there are a number of ways to buy rental property with a lot less down payment. Sometimes you need to use temporary purchase financing or a line of credit. But there are plenty of ways to refinance later to enjoy a traditional low, fixed interest rate mortgage and pay back the temporary loan or your credit line. Let’s look at how this financing strategy can work for you?
- Let me share story with you about some very clever real estate investors. One worked in the home construction business but had very little money to put down. He built his real estate wealth just by being thinking outside the box and sheer tenacity at staying with his plan.
Mary & Maynard Eagen’s story- Acquiring A Home Every Year With Very Little Down
Let me introduce you to Mary and Maynard Eagen (not their real names). Mary and Maynard wanted to be able to retire early and have plenty to of income to enjoy life with their children and one day their grandchildren. They did not trust the stock market and it didn’t really matter anyway because Mary and Maynard didn’t have any money to invest in it. They didn’t have much leftover money at all. How were they going to buy several homes for rental income without a lot of money?
The way the Eagans set out to build their fortune, was to buy a home, move into it and live there for a year or more, then turn that house into a rental home and go buy their next primary residence with very little down. They moved to a new primary residence almost every year, keeping the former home as income-producing rental property. After a while the Eagans owned several rental properties and did not have to pay much down since, each time, they purchased it as a primary residence.
JACKSON ANDREW’S STORY-DELEGATION AND REGULATION
Jackson
Andrews (not his real name) made quite a good income in the
securities business. He invested in the stock market but wanted to
own some income-producing real estate properties to balance out his
investments.
The problem Jackson had was his work schedule. He had
the money to put down on the investment real estate and his income
was high enough but Jackson did not have time
The solution? Jackson found a realtor that knew how and where to scope out bargains. He hired a property manager too. Most of the bargains were homes that needed quite a bit of repairs. Since the homes would have to be in good shape to get a standard fixed rate mortgage, Jackson borrowed against other assets like getting a loan on his 401K. We even did a cash out refinance on one of his other properties to give him enough cash to buy more and more houses at bargain prices to fix up and keep or resell at a profit.
(9:47 AM) REAL ESTATE TIP OF THE WEEK (John Bowens can share a helpful, practical tip related to the topics he covered): Jo Garner shares unprecedented real estate market situation We are seeing an unusual trifecta —high real estate values, robust real estate sales and the lowest mortgage rates we have seen in history. CPA Keith Fulfer talks about the tax advantage of renting out part of your primary residence and getting to write off a portion of the costs of that property.
ANNOUNCEMENTS:
Talk Shoppe offers free networking & education to anyone interested in real estate, business and health and wellness. Talk Shoppe meets every Wednesday 9A-10A virtually. Just go to www.TalkShoppe.com and click on the Upcoming Events Tab. The virtual meeting zoom website is listed there. This Wednesday September 30th, 2020 Talk Shoppe presents: “The Mastermind Principle based on the book Think and Grow Rich by Napoleon Hill.
Talk Shoppe events are free thanks to supporters Genell Holloway of Eagle Hollow Enterprises, insuring your trusted golden benefits with health accident insurance and retirement options . Give Genell Holloway a call at 901 270-1127.
Talk Shoppe offers our radio listeners a 20% discount with our iHeart radio advertising package. Did you know that 91% of consumers listen to radio? If you want to reach your target market with you message and be front of mind when they need your business, let’s explore your opportunities to be in front of your customers on radio. Call me at (901) 482-0354
2. Thank you to real estate attorneys Rob Draughon and Shelley Rothman of Griffin, Clift, Everton and Maschmeyer for sponsoring Real Estate Mortgage Shoppe today. For your real estate home purchase or refinance, contact Rob and Shelley to handle your closing (901) 752-1133.
3. Let’s support our local restaurants and businesses. What do you need to buy today for your home, your office, your car? What locally owned business can you use to buy what you need?
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND ARE BASED ON TRUE STORIES BUT CHANGE NAMES AND CERTAIN DETAILS THAT DO NOT AFFECT THE INTEGRITY OF POINTS WE ARE MAKING IN THE EXAMPLES.
QUOTE CORNER:
Bill Murray- “The best way to teach your kids about taxes is by eating 30% of their ice cream.”
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REJOINDERS:
- Leah Anne Morse, Cartridge World in Collierville, TN– Saving clients 30% or more on their printing costs. (901) 853-3230
- Matt Cates, president of Memphis Investors Group (901) 351-0930 www.memphisinvestorsgroup.com
- Bill Emmerling, Vista Points—setting up your special needs trust to care for those you love
Transitional Music: “There’s Taxes Everywhere” by Matt Cline; “Money For Taxes” (parody song); “If I Had A Million Dollars” by “Barenaked Ladies; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia contest
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CERTIFIED PUBLIC ACCOUNTANT, KEITH FULFER, PICKERING COMPANY
Keith Fulfer, C.P.A.
Certified Public Accountant
Keith joined Pickler Accounting Advisors in late 2019. He has 15 years of tax and accounting experience, serving both small and medium-size accounting firms. He also has experience in the financial planning field.
Keith has a B.B.A. in accounting from Abilene Christian University as well as a M.S. in Religious Education. He has extensive experience in the Information Technology area, education, small business accounting and taxes, and in non-profit taxes.
Keith and his wife, Nancy, have five children and three grandchildren. They enjoy their two rescue dogs, Bozwell and Lily, and working in and around the yard and garden. They are members at Balmoral Presbyterian Church in Memphis.
Keith is a member of the American Institute of Certified Public Accountants and the Tennessee Society of Certified Public Accountants (TSCPA) and is a past board member of the Memphis chapter of the TSCPA.
How can Keith Fulfer and Pickler Accounting help you.
1. You need a professional CPA in your camp. Even if you do most of the work.
a. Find and leverage as many tax benefits as possible (of which there are MANY for real estate investors).
b. Follow the rules and regulations of our ever-changing tax code.
c. Keep track of your ongoing business transactions.
d. Stay organized, using a financial record-keeping system that makes sense.
2. A CPA can help you with your business organization, record keeping and accounting. Avoiding these expensive problems is only possible if you hire an experienced accountant. An accountant who is familiar with the tax deductions provided to rental property owners can save you a lot of money. These financial professionals can also help you keep your tax records organized throughout the year. With this level of organization, you can avoid raising red flags with the Internal Revenue Service.
3. Using a CPA can provide you with some up-front legal protection, i.e. keep you out of trouble before you ever get into trouble.
4. A CPA can help you navigate the various retirement plan options available and how contributions can reduce your taxes. Many real estate rentals are owned and operated by self-employed individuals. There are some options available only to self-employed individuals.
Keith Fulfer, CPA
Senior Accountant
PICKLER ACCOUNTING ADVISORS
1143 Halle Park Circle
Collierville, TN 38017
Phone: 901-316-0160 Fax: 901-316-0155 Cell: 901-451-9882
kfulfer@pickleraccountingadvisors.com
John Bowens, Equity Trust
John Bowens
Equity Trust Company
Retail Sr. Sales Manager
National Education Speaker
855-499-1648
John Bowens is one of the most sought-after and respected educators in the self-directed IRA industry, partly due to his unique ability to take a complex issue and break it down into simple-to-understand terms. Currently a Senior Manager at IRA custodian Equity Trust Company, John draws from his 15 years in the real estate industry and his experience as an active real estate investor. In his travels across the U.S. and virtually, he has trained 50,000 investors during more than 300 workshops and classes, spreading the message about the power of building tax-free wealth and leaving a lasting legacy by investing in what you know best.
John contributed to the book “Self-Directed IRAs: Building Retirement Wealth Through Alternative Investing” with Equity Trust Company Founder Richard Desich, Sr., and has appeared on several national real estate and finance-related radio shows.
He received his bachelor’s degree in Finance from Ohio University.
Testimonials
Over the last decade Equity Trust’s National Educator, John Bowens, has helped tens of thousands of people across the country understand the strategies covered in The Next Level Investors Online Series…but never before in this interactive online format.
Furthermore, John has helped thousands of investors take action – from beginners to the most experienced – as they found ways to implement some of the very same concepts you’ll discover during this three-part series.
“I recently attended an Equity Trust workshop in San Diego. I can proudly say the morning session with John was the best 2½ hour learning session I ever had in my life. I am serious about it. He was dumping buckets of knowledge on us and I feel I am still soaked.” – Jay, California
ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308 (currently working with Sierra Pacific Mortgage, Inc)
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?
Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 25 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 25 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com