Protect Wealth, Reduce Taxes & Recession-Resistant Income Streams ft. Allen Lomax

Welcome to the Smart Real Estate Coach Podcast, your source for actionable, real-life, practical investing advice. Each week we help you make a quantum leap somewhere in your business, your finances, and/or your life. Subscribe, leave a rating and review, and learn more at smartrealestatecoachpodcast.com. All right, it's Chris Prefontaine, your host again, with another Smart Masters Class. I'm going to hang out again with Mr. Alan Lomax. Alan was on our show, guys, let's see, back in February, not too long ago. And the reason I wanted him back is he deals with high net worth. And look, if you're there, this is an important message. If you're not there, this is an important message because he's going to give you some outlook as to what you can be expecting. I get excited on every front for this because As you'll hear us talk, if you're in our world and you're generating 3 paydays, he is a nice second step, so to speak. And just to save you some time, I do want you to go back to that episode. I'm going to look at my notes here. It's episode number 497. He has a PhD in organizational systems psychology. That's pretty deep. And he's also a seasoned investor. He empowers professionals and entrepreneurs like you and I and retirees. to literally go to that kind of financially secure, passively engaging in their true calling. And as a founder of the Streams to Impact program and podcast, which I've been on several times, so Streams to Impact, it's his program and his podcast. He's going to give you a free gift today. So be tuned into that. He also, last but not least, has gone through the 2008 crash like me. So I always like to go, all right, let's kind of catch up. Let's see what's going on now. Let's compare that to the '08 crash. And you're going to hear him do that. Okay, Alan, with that as a backdrop, welcome back to the show. I think I've glanced here. You were on at the beginning of this year.

Well, it's good to be back with you, Chris. Always a pleasure to be with you and your team.

Yeah, let's, um, I, I don't want everyone to assume every single listener went, yeah, I heard that episode. So let's just give a, a 10,000-foot view of, um, your, your story, how we got to today, and then let's dive into a couple items and we'll see where that takes us.

Alrighty, that sounds good. Well, I'm just going to start off here. Recently I had an experience with a horse. His name is Finn. And this really clarified something really important for me, and that reveals really a lot about my particular journey. So Finn had been a show horse for many years, and at some point he had suffered an injury, but instead of allowing him to heal, they continued to show him. And this went on for, I don't know, 3 or 4 months, and they were just simply medicating him and drugging him up and just keeping him going. And Finn did what horses often do. He just complied, not because he was thriving under the situation, not because he was healthy, but because compliance was just the safer process rather than resistance. And so that experience really struck me because in many ways we often do very much the same thing. We just go along with expectations. We follow the prescribed path. We pursue careers that look successful. We follow traditional investment advices and so on and so forth. And often we just don't even realize that we're doing it. We don't realize how we have been conditioned. So we're not necessarily making conscious decisions. We're just making decisions based upon Longtime conditioning. And so that realization led me to something I now see repeatedly, and that is many of us move through really 3 stages from conditioning, and then we can find alignment in some way, shape, and form, and then eventually we can find our freedom. But we first of all have to realize how it is that we have been conditioned. And I know I found myself very much in this same situation for many, many years. And even when starting into investing, which was really over 30 years ago, I was really doing it from a lot of conditioning and a lot of just holding onto security. And so I made a lot of really poor decisions that didn't seem like it at the time. This was before 2008 and the markets were with me and everything was going in the right direction. And then 2008 hit and everything was wiped out from under me. And I know you experienced the same kind of thing in 2008 and had to— Oh, yeah.

We were both there. That's why we always hang out.

Yep.

You know the pain.

Yes, and we know the pain. So that was my wake-up call. That was my realization at how I had been conditioned. And so I took a different path since that time, a very different path than what you have taken, but it was certainly a different path. built upon a very different foundation. And we can go into that if you'd like to, or we can go wherever you'd like to go with this.

Yeah, I would like to because I know it's unique and that's why I always like chatting with you. Sort of the retirement treasure chest and the, let's say, non-conditioning that people aren't used to. Talk a little bit about what is going on now in your world and why you did that. Well, you don't buy, right? It was SPAC, by the way. I meant that then you, and you came out of that and you said, okay, I'm going to take this different path.

Talk about that process a little bit. So in realizing that what I was doing really just wasn't working, it wasn't sustainable. I was doing single-family homes and fixing, holding for long-term and sometimes fixing and flipping. I also had some small commercial things going on in terms of triplexes and small mobile home parks and what have you. But I was relying upon really essentially my own financing and was not really purchasing the properties at the correct point. And so when 2008 came, all of that came crashing down. While exploring different ways, I realized that I don't have to be the one doing everything. And in fact, I can become a part of a team and becoming a part of a team really made all of the difference. And when I realized that I was really going to go full tilt into commercial real estate, I thought, well, I can continue doing all of this myself. And as I started looking into that, I'm going, well, there's companies out there that are well established that I'm going to have to compete with. They've got their processes in place. And I realized that it would be ridiculous for me to start from scratch when I could become a part of a team. And so that's where I started was with capital raising and became a part of a couple of teams and then eventually launched out to really be my own capital raiser. And then eventually I've become associated with a fractional family office through Royal Legal Solutions. And And so it was just a complete change in the direction and has made all of the difference because of that. So you have to get over the conditioning, then you have to really learn the new way in which you're going to do, and you really have to become conscious, and then you have to redefine what it is that wellbeing really means to you. And with that, then you can move forward with a game plan. So it's really a 3-step process there.

I want to talk about sort of the, I'll call it recession-proof model, but I also want to kind of go back to the '08 thing with me and you, because regardless of, let's say there's a listener out there now in the corporate world, let's just draw that because there's a whole bunch of people and with AI and everything going on, not to mention the economic stuff. There's fear with their own J-O-B. So, but they're conditioned for that, to your earlier point. Can you address that piece? I don't know if you and I have talked about this before, but just how can they break some of that conditioning if they're stuck in the J-O-B a little bit different than you and I went through, but they could be— their job is the biggest risk, in my opinion. I'd love to know your opinion on that, but I think it is. And So how do they break through that so they don't end up knowing that the hard way, right? I hate to, but that's reality right now.

Exactly. Well, and that's what happened to me in 2008. It wasn't just that the investments fell apart, I lost my job and I had a good job and I was really actually able to supplement a lot of bad decisions. Well, you lose your job, you lose your investments all at once. It's a pretty dire situation. And so I totally agree with you. Their job is their number one risk, and they can hold onto that like that's their number one security blanket, and they can end up in the same place I ended up. That's really the bottom line. Hold onto that security blanket and find out like I did that it's not so secure. And, and then what are you going to do? I would suggest making plans for that right now.

You know, it doesn't matter if you're brand new to real estate or if you've been doing this for several years or a whole bunch of years. I learned the hard way back during the crash that doing creative deals is much better. It's a much better path in real estate in general than let's call it the old way, getting paid once, using banks, signing personally, 3 paydays, getting paid 3 times on a deal. It's better 3 ways, not one. Money now, money over time, and money long term. And I don't care if you're in an up, down, sideways market, it doesn't matter. You can and should operate with the utmost confidence. There's literally nothing I love more than helping people create systems and simple systems and processes to become massively successful with our 3 Payday System, and doing so in literally any market and doing it geographically literally anywhere. So if you've been learning and learning and listening and studying and not taking action, I'm telling you, after going through it myself, it's costing you tens of thousands, if not hundreds of thousands of dollars, by not taking action on the 3 paydays the way you should be getting paid. Many of the people that were brand new, just like you, that joined our community have fast-tracked their startup. Now, I mean, wouldn't that be ideal if you said, okay, should I go fast or slow? Should I take action now or later? It's costing you too much money to wait. Each one of you are at a point in your life, I'm sure, where you want things to be easier. You want things to be better for you and your family. You probably realize that you not only want more, but you deserve more in this life. So, to be able to give your family everything they want, build a legacy for you personally too, and to have time freedom to start enjoying life, frankly, whatever else you're seeking. And for some of you, now's the time, for example, to just focus on security. Maybe it's building a big solid bank account for retirement. We take these things super, super seriously, and it's my life's biggest reward to help you achieve them. I want to give you a free discovery session with our team. It's free. It's 15 or 20 minutes. You have zero to lose and everything to gain. And to understand how you might fit into the 3 Payday System that we've done now in over 80 markets as of this filming, go to smartrealestatecoachpodcast.com. Smartrealestatecoachpodcast.com/discovery for a free call with our team. Smartrealestatecoachpodcast.com/discovery. Because it's not whether or not you can do it or whether or not you fit. You can do it. It's whether or not you'll take action and do what it takes. And we can guide you through that process. Smartrealestatecoachpodcast.com/discovery. We'll see you soon. For sure. Can we talk about now specifically with some of the things you're doing, and let's say they've made the transition, they're on this side of the fence, let's say, and then your world, how can some of those people buffer themselves? Recession-proof thoughts, some of the paths that you take with people now, thoughts on that?

Well, we work with high-income individuals, and so it depends on where they are in terms of their income because we work only with accredited investors. If they happen to be in a high-income profession, and that is probably over $500,000 a year ideally, then there's a lot that we can do for them. But if they are not in a high-income profession, Then I would say that they would be better off going with you because they're going to need to build a high income. And once they have built a high income, then yeah, we can take them from there. But without the high income, without a nest egg, without a lot of capital, then a program like yours is much better than what we have to offer. But we have— but if they have done what they need to do and they have built capital, if they've been working with you, for instance, and they have started building a business and actually have established themselves in that business, Then yeah, there's a lot that we can do for them. It's the, what I would look at it from your business where the second step, you have to have the capital and then we can help you tremendously in deploying that capital in ways that are recession resistant and that are also providing for long-term wealth development so that your money is where your income comes from rather than you having to be the one to generate it.

And Alan, I was looking at some of your stuff. That's why you see me glancing down and taking notes and talking about sort of unlocking high returns. Talk about how quickly someone could do that if they're transferring some wealth over to you. They've parlayed up the 3 paydays, with the deals and they go, hey, yes, I want to deploy this with Alan and team. What does that look like? We know who can come in, right? Wealth-wise, what does it look like time-wise and return-wise roughly? I know you're not, you can't put things in stone.

Well, if you've gotten to the point where you have about $2 million in capital, you could easily get to the point where you're where your money is working for you rather than you working for money. You could do that within 5 years if you've reached that $2 million level.

So like that 5-year horizon, if they're at that—

If they're at that level, yeah.

Okay. And how about what are some assets that you see are smart? And I don't know if this has changed over the last year or whatever, that not only can probably fit the fastest growth, like is there any new I don't want to say just product, but what's new since we last chatted that might be of interest to these guys to hear, if anything comes to mind?

Well, the, you know, of course one of, you know, high-income earners, what they're primarily concerned about is tax liability reduction. And there's, and that's really what we help them structure in a number of ways. We help them develop a foundation. We help them with series LLCs. And in terms of the investments, it's also if they have real estate professional status, then that's a very good way to utilize bonus depreciation and to use it upfront. If they don't have real estate professional status, there are other ways. like oil and gas has really upfront extraordinary depreciation. And then also other businesses that are high equipment businesses like car washes, laundromats, trucking industries, distribution industries like that that have high equipment needs, those are going to have upfront depreciation that is going to help our investors save considerably on their taxes. And so those are the things that we are looking for. The other thing about all of these, whether it's real estate, whether it's oil and gas, whether it's small businesses, they do not correlate with— they're non-correlating essentially with public markets. And not only are they non-correlating, they adjust for inflation and they adjust for downturns. In 2008, the single-family market, this is nationwide on average, properties lost about 35%. Apartments and multifamilies lost about 5%. So there's a loss there, but there's a considerable difference between 35% and 5% there. And we saw that the same thing in self-storage. It came through strong. Mobile home parks actually didn't even lose value during the downturn of 2008. And So those are the things that we look at is how can these things make it through real estate? Well, car washes, it was surprising to me to look at the data, but in 2008, car wash opportunities didn't hardly lose any value, which you would think that, I mean, that wouldn't be people's first priority when they're facing financial difficulties. But they came through very well on that. Oil and gas is certainly a different thing. Oil and gas is dependent upon the commodity markets in terms of what is going on with oil and gas prices. Well, now's a good time to get into oil and gas. I don't see oil and gas prices diminishing anytime soon. So that's That's going to be an excellent place to be. And no matter how difficult times are, we're going to need the energy. So it's going to be a good recession-resistant product, I think, in this coming year.

I know you don't have a crystal ball, and we talked right before we went on the show about oil and gas prices briefly. What is your opinion of that window? of opportunity there? You said no time soon, but what are you thinking?

Well, I'd certainly like to be in it now because I think that it's going to escalate considerably before all of this is over. The projections are oil's going to go to $200 a gallon and it may even go up to $250 or so a gallon. So Now's the time to be buying into that and reap the benefits of those astronomical price increases there.

Yeah, and not blindly, right? This is why I wanted you to be on the show with someone as credible as you guys. There's a big difference there. Yeah, there is.

And a lot of people have been burned with oil and gas, and there's a lot of reasons for that. Because there's a lot of operators out there and they run the gamut from operators who are drilling 1 or 2 wells and want you to place all of your income into that and one of the wells comes up dry. Well, that's not going to help you very much. And then there's operators who are drilling 10 or so wells, that's much better. But what we're looking at are operators who are are committed to drilling some 20-plus wells. And not only are they drilling wells, but they also, that would, the drilling part is what they call the upstream and the midstream is if you have the distribution processes within the fields that you're working at. So that's what we're looking at are operators that are at the upstream and the midstream. So that they have their processes in place so that they have the ability to take the product from the well, to take it to the point of distribution. And so those are the operators that we look for. We don't go with small operators, there's just too much risk in that. And we also are looking to see where it is that they're developing, Or where they're drilling, I should say. Are they drilling in proven basins and are they drilling at the fringes of those basins or are they drilling within really the heart of those basins? So those are the things that we're looking at.

There was a mini class there you just did. That's new stuff for so many people, so I appreciate that. Alan, anything, I always ask you this, what is there anything top of mind, especially with every, all the change going on in the turmoil right now that I didn't ask that you'd like to share or nugget anything? And also, how can they reach you?

Well, I guess the one thing I would say, particularly with high-income individuals, the bulk of the high-income individuals we're working with have anywhere from 85 to 95% of their capital in public markets. If it were me, I'd be getting it out of there pretty quickly. That's what I would say. So they can reach me at— actually have a free gift for your viewers and listeners. And that is we have a small, I guess it would be a mini class that goes through just the kind of things that we're talking about today, as well as there's 4 different bonuses that come with that. One is a Financial freedom calculator, which will give you the the time when you can look to financial freedom and the amount that you need to get to that point. So it's a really simple little calculator, but it tells you a whole lot. And they can get that at at www.go. go.steedtucker, which is my company's name, and that's .com and then /beyond-paycheck. I need to get a shorter URL for that.

So go dot— can you spell Steve Tucker just so everybody gets it? And I'm going to put it in the show notes.

Sure, you bet. That is Steed like the horse, S-T-E-E-D, E-E-D and then talker like I'm doing now, T-A-L-K-E-R dot com. Awesome.

Go dot steed talker dot com, guys. We'll put in the show notes. Alan, super appreciate you. And as I mentioned on the intro, going to hang out with you on your show. So get everybody to subscribe and follow you there. And I look forward to seeing you for the next.

update.

Hopefully it'll be as rosy and we'll keep everybody rolling and thinking positive and not being conditioned.

Exactly. So thanks for having me today, Chris. It's been a pleasure.

You bet. Likewise. Okay, smart listeners, that wraps up our time together today with Alan. Be sure to head over to www.go.steedtucker.com and get the free gift that he had given you. And for our free gifts, as always, go to 3paydaysbooks.com/podcast. That's numeric 3, 3paydaysbooks.com/podcast. We'll see you next week, guys. Rate and review the show and share it with others that you know. And let's make it an outstanding week. See you in the next Smart Masters Class. Hey guys, are you simply sick of juggling a dozen different software tools for your real estate business? I know I was, and I know I'm not a tech person, so it was frustrating. A subscription for this, you got a subscription for that, and they don't even work together out of the box. That's very frustrating, especially in the real estate world where your best time spent is going to be out in the field or on the phone with sellers. And now you're stuck hiring a tech guru just to make all that sync up. So let's ditch the chaos and let REI BlackBook handle everything. Automate your lead follow-up, track every deal, analyze things quickly for you, make offers all in one platform. In fact, with the Wicked Smart platform, we now have access, if you're in the Wicked Smart community, to all the other associates' properties. Can you imagine that? So you're brand new in the business perhaps, and your seller looks on your website and sees 20, 30, 40 properties, instant credibility. So you're going to get everything on REI Black Book from our custom workflows for lead generation all the way to closing. It has it covered. Try it today for just a buck. $1, guys. Visit smartrealestatecoach.com/reibb-dd. smartrealestatecoach.com/reibb-dd. D as in dog. D as in dog. All right. Thanks for tuning in to the Smart Real Estate Coach Podcast. If you got value from today's episode, guys, be sure to subscribe so you never miss a future episode. It literally takes one nugget to access some of the things we're doing. And when you're talking the amount of the size rather of the paydays, it's an opportunity cost that you can't let go. So don't miss an episode. And for goodness' sake, share it with someone who needs to hear it. If you're ready to find your best path for getting started on your real estate investing journey in general, head over to smartrealestatecoach.com/getstarted. We're going to help you take the guesswork out of your next steps. See you in the next episode.