Donna Genie recounts a meeting with a client who asked whether he could delay paying his taxes for a year to instead invest the money in a distressed house. She discusses evaluating the opportunity by running numbers—costs, potential rental vs. flip income, and required returns—so the client could make an informed decision rather than guessing. The clip emphasizes using quantitative analysis and advisor input before making financial decisions.
I had a meeting with a great customer the other day, and he asked me if he could delay paying his taxes for a year because he thought he had a better use for the money. Most people would say, no, you can't do that. You have to pay your taxes. When we're talking about dollars, the easy way to do this is to make decisions based on the results and the numbers. So I walked him through some questions. Turns out he has the opportunity to buy a house that is in need of some repairs to be sold. That house could be either a quick flow live and make some money on the deal. But he also had another idea. He's got some workers who need a place to live, and those workers would love to be able to rent that house from him. It's in a great location and they would probably take really good care of it since they work for him and he's their landlord. So the question became a little deeper about what would it take to get that house, what would the cost be, and what would he need to get in return to make this a viable deal for him? We pulled the numbers together and we were able to make a real live decision, knowing the effects rather than guessing. That's the power of having someone that you can talk to before you make decisions.
