Find Success During the Recession

Hello, everybody. I am so excited for this live broadcast. Please don't go anywhere until I introduce the topic because we're all struggling through this recession to some degree or another. And I want to help. I want to give you some real tips. I've been watching some other YouTube videos and clips and Instagram and TikTok and blah, blah, blah. Some of the tips I thought were pretty good. Others I thought were kind of ridiculous. And so I really want to give you eight recession tips for your side hustle, your side gig, your real estate, small business, your main business, your 100 employee business, if you're a small business owner or have rental real estate in any way, shape or form. I got eight tips and these are legit. I actually went out and interviewed, I think, two or three financial advisors, all the CPAs in my firm, all the attorneys in my firm. We've been discussing this and I've tried to capitulate. 8 hard hitting legit tips. So let's get to it now. I'll be doing Q and A after this. We'll do this for 45 minutes to an hour. I want to be here for you. If you haven't seen my broadcast before, I'm a CPA attorney, senior partner and accounting firm, law firm, CFO of a trust company helping people self direct their retirement accounts. 20 plus years of experience. I'm doing the best I can as a small business owner as well. I love the American dream and I hope and I know, actually I know I can share something with you today. Now, someone said, what happened to your face, Mark? Did you go to sleep on the beach? I said I looked a little dark for this video. I told my guys. So this is all lighting in the studio issue, people. I haven't been over baking in the sun, so I appreciate that, Angie. That's kind of funny. Okay, now my take on crypto. It's not going anywhere. Market's down, crypto's down. We've seen this cycle before. If you believe in cryptocurrency, NFTs and blockchain technology, it'll be back. Stay steady, everybody. With the market and crypto, we're going to come to that. That's one of the tips. All right, now we're going to have fun with Q and A here in a minute. I will say this. If any of you see a post on Facebook or YouTube thinking it's me, it's a scam, I'll say it multiple times today because it pisses me off. I am not asking any of you to Oh, I had this great deal in crypto. Send me money crap. That's their bots. They're scams. Do not click on them. Do not follow them. Any of you, please stay away from that and ninja vanish 247. Thank you. I appreciate that. Warning. Before we even get started, people, let's stay focused on the topic and I want to see hardcore real questions. All right, number one tip for all of you with a side hustle, small business recession, proofing your business for success. Number one, keep your head right. Don't panic. And on this, what I want to say a couple of extra points is be careful getting sucked into the media hysteria. They're trying to report issues that get people's attention. I'm not talking Republican or Democrat. I'm just talking people. Yes, gas prices are up. Yes, people are going to lose their jobs. But we've got the lowest unemployment rate in years and years. There's. I can't count how many business owners are trying to find good employees. There's work out there. Keep your head. Even if your portfolio is down, it will come back. Recessions come and go. I'm a little older. I'm over 50. I know I look like I'm in my 30s, but it'll pass. It's okay. It's okay. We had the dot com bust. We had the real estate crash. We have a recession now. We'll be back again. The scammers are at it. Please ignore any of those posts. They're not me. All right, so number one, keep your head. Don't panic. Be careful what you watch on TV or the news or your social media platforms. And here's the antithesis of that. Watch for tips. Learn. Keep study. Studying, studying and learning anything you can to make your business better and to be careful about not making rash decisions. So I'm going to put that as the last one. No rash decisions. Now, from my life coach, I want to bring this up. We don't want to take action from emotions. We want to be careful making decisions just based on fear. We want to control our thoughts and not go down rabbit holes. And I shouldn't even say control. We want to manage our thoughts. We want to be careful what we're dwelling on. And. And let's not take action based on our emotions or feelings. Let's be careful. All right, now, okay. Touchy feely? Maybe a little, but that's number one. Okay. Number two, during a recession, it may be time to do a little pivoting. Look at your product mix, look at your Service mix. Could you change your business model a little bit to react to what your customers may want or need? It's very common, you know, you might have in a marketplace. I joked about this on our podcast. My son, who's a huge entrepreneur, I love Dylan giving him a shout out. From day one, he was a lemonade stand kid like me. And at the 4th of July parade here in the small town in Idaho, for years, he doesn't live here anymore, but he and his buddies would go out and buy discount sunglasses in bulk, like hundreds of them. And they'd set up a little tray right here and they'd have all their sunglasses out. And soon as the people started lining up for the 4th of July parade, they were out there hawking these sunglasses for 10 or 15 bucks if I remember the pricing. And they'd sell out every year. And I wanted to always talk to them about what happens if it starts getting overcast or it rains. Do you have all the umbrellas ready to go? Do you have a, you know, two or three boxes of umbrellas? Could you pivot people? Sometimes you can't. You're not going to be able to control the wave, but you can control your surfboard. We may not know or be able to control when this recession ends and the, and the climate of all the changes and pricing and all the things that's going to bring with it, but we can control our own destiny. And in our businesses, we made a change to from sunglasses, we could change to umbrellas. And that's okay. It doesn't mean you're a failure pivot in your business. Look at your product mix or service mix and make adjustments. You may come back to selling something else. During COVID a lot of people changed what they were selling to something else. Now we're back post Covid, maybe changing your product mix again, number three. And by the way, I'll get back to QA, Q and A here in a moment. Number three, rather than, oh, am I looking at the wrong camera today? We're changing cameras a little. All right, okay. Boom. Okay, number three. And this is a big one. We're going to see people maybe cutting costs or increasing prices because their prices are going up. Some people are like, I need to cut costs to get people to come in. We're going to talk about pricing here in a minute. But one of the best ways in your business to survive a recession is being more efficient. Look at all your efficiencies. Could we turn our product out quicker in just a few small ways? Could we Be a little more efficient. Back to my podcast. This past week, one of my. I'm a huge fan of Tony Bass. He's a consultant in the landscaping industry, and he, he goes into landscapers around the country. I've been to his conferences in Kentucky, you know, Kentucky Bluegrass Landscapers Conference. I don't know. Made sense. Anyway, I'd be there to teach the tax and legal part. Anyway, Tony Bass would talk about going into a landscaping business and show me all your maintenance clients. Where are you going throughout the week? How many maintenance clients do you have? Lawn mowing, weed whacking, yada yada. A client might have 300 clients. He'd say, okay, what days are you going? Where? Let's put them on the map. And he would love. He prided himself in saying, we're going to save 10 minutes today. We're going to take a different route. So your guys are on lawns working more efficiently and less. Instead of driving around town like a chicken with its head cut off, we're going to be more efficient in our route and save 10 minutes. And then he would say, let's do the math. Four guys on a crew save 10 minutes a day. Just a day times four. We could be at 40 minutes times a week. We could be at two, three hours times a year. And he'd say, we just saved $10,000 in payroll. Keeping your guys mowing the lawn was more efficient and we'd have to cut costs. We didn't have to increase costs. We're just more efficient. So look at the efficiencies in your business. And I'm having a hard time spelling today. Okay, so let's, let's really think of how we could deliver things faster or more efficient and save on payroll. How could we save being more efficient? We're looking at these same things in our business. I'll give another example. We talked about this on the podcast, too. If you want to get over to our podcast, it's Main street business. Podcast.com, mainstreetbusinesspodcast.com but in our law firm, we thought, how could we make it more efficient for our clients? For certain services, let's let them book online. Just go online, middle of the night, pay, get an appointment with an attorney. Go. It saves us having someone on the phone. It saves you time and money. Everybody wins. More efficient. They have to change our prices. Let's just get things done more efficiently. Okay, Number four, more success in your business. During a recession, people are going to be more careful of how they spend Their money. In a recession, people cut back. Gas is up, other prices are going up. I went out to lunch the other day. It costs a lot more than it did a year ago. I was surprised. But food costs are going up, transportation costs, supply chain crap, whatever. People are going to be more careful where they spend their money. They may want to cut buying something from you. What do we do? We need to look at adding more value for our services or product. If you're a consultant, what could you do a little more unique, in a unique manner to provide more value for your product or service? One thing I talked about again on the podcast, we had such a good podcast and one of the examples, it was just at the top of my mind. I just loved it. I need to bring up some other examples, but when we were buying tile for a house we were building once, every time it was tile bar, I think online website, they were great. And every time I got a box of tile, they would put a little bag of Ike and Mike's, just like, you know, hot tamales, whatever, you know, jelly bellies, just like this little candy. Mike and Ikes or Ike and Mike. I think it's Mike and Ikes and it cost us from like probably 5 cents. But I got to the point where I was opening up tile boxes just to get my Mike and Ike's. And it was just a small thing, but I'll never forget it. It was a little added value for 5 cents. So whatever you're doing, help your customers have a more valuable experience so they don't cut your service or product during the recession. Think of ways to add value. Add, add, add. What could we do and do it for maybe no or very little cost. Talk to your staff, employees or yourself every day and say, how can I be more friendly, more kind, more happy? Make your experience, make the experience for your customers, clients, patients, whatever they are a little better. Add value. Okay, number five, more success in a recession. People are going to cut costs. Don't let them cut yours. Your service. Number five, audit. Audit all your expenses. How many? When was the last time you went through and looked at all the auto pays on your bank account or bank statement? You know, all those things you signed up for four months ago and they keep hitting your account and you didn't notice. You might save several hundred bucks, maybe 100 bucks. That adds up. Think about what you're spending on. I'm not saying put yourself on a budget, but just watch what you're spending. Sometimes that's one of the best things to do. Is just create a spreadsheet and go, this week I'm gonna see how much I buy in food, buy in my special drinks during the day, coffee, soda, whatever it is. Where am I spending my money? And just audit all of your expenses. And this, because I'm talking about business today, is looking at your vendor relationships. How much are you spending with all your vendors? I just. Jack and Corey were here in the. Here in the studio with me, and I talked about. I think it was just Jack saying, what are we spending for all these plugins or hosting or cybersecurity or I get charges for my website sometimes I'm, what the hell is that for on WordPress? Do I really need it? So really look at all your vendor relationship and all of your expenses in your business and see where you can cut and maybe give them a call. Say, could you add a little more value here? I'm thinking of cutting this cost. See what they say, you know, it's okay. It's okay. Number six, I got three more. Number six, reevaluate your prices. It may be time to increase or decrease at your prices. Maybe on certain products or certain services, you decrease, maybe you increase. Your costs have gone up, my costs have gone up. It's okay to increase prices, but hopefully you're adding efficiencies and value to the experience for everybody. So reevaluate your prices during a recession. That's expected. And it's okay. Number seven, look at your employee mix. I'm going to audit your payroll. For those of you that have employees, some of you don't, obviously. But for those that have employees, let's really look at combining roles, duties, looking at the weakest link in the chain. Not fun to talk about, I know, but sometimes you need to do this. I was talking to a good friend that went to Grant Cordone's conference down in Miami, the 10X, and they had a speaker there, that big restaurateer owned Mastros and another a number of restaurant chains. And I hope I get this example and story correct. I wasn't there. Had Grant on my podcast in the fall. Love what he's doing. But this speaker talked about right when Covid hit doing some cuts immediately with their employee employees, they knew that the dining experience was going to be impacted dramatically. With COVID restaurants were shutting down and immediately he cut. I think it was 20 or 30% of his payroll and he took some heat for it. But retracting and being more lean and mean with his employee team, they were able to come back stronger as Employees were able to get unemployment benefits sooner than others. There was some. I mean, it wasn't fun, it wasn't good for them. It wasn't fun to fire people. But in the long run, it kept the business alive. It's okay if you have to fire one or two employees. I don't know how many employees you have, but reevaluate or ask more of your employees while they're at work. But audit your whole payroll situation. And number eight, making your business more successful during the recession. Look for bargains. Have a little cash reserve. If it gets worse, having a cash reserve can give you a benefit in two ways. We don't want to go too heavy with a cash reserve because there's going to be bargains out there. You may be ordering in bulk. You might need a see an opportunity to buy some new equipment or supplies or assets. If you're in the real estate industry, you may be seeing some deals come down the pipe. You may be deploying more money in the stock market or in crypto. There's going to be some bargains out there. That's what happens in a recession. There's winners and losers. So having a cash reserve 50% of the time, it can be used to pounce on a deal if you see one. The other issue is it can be there in an emergency. We don't know exactly what this recession is going to hold for us. How long is it going to last? But it's common to see two to three months of your operational expenses in a cash position and you keep that there. Now let's say you go, you see a bargain and you go spend a month of your reserve on a deal or bargain that you think is a smart move. And then boom, you retract and rebuild that month. It's okay. So you don't have to keep that cash there constantly. You want to use it if you see a bargain or use it if you have a emergency and then rebuild as quick as you can. So having cash reserves within reason is my number eight. And I want to leave you with a quote. It was a really good quote. And I want to give a shout out to my partner, Liddell. I talked to all my partners before preparing here, but okay, you guys, this is deep. Expense management drives short term profitability. Asset management drives, drives long term profitability. Let me repeat that. Expense management, managing my expenses can push the needle with short term profitability. Asset management drives long term profitability. I've got to give two examples on that. And then we'll just do some Q and A. If there's anything on a tax and legal front or any of these topics I can help you with. First example, I love this. I think this was a Stephen Covey story that I've remembered over the years of watering down the soup. There was a business, things were tight. They were known for incredible soup. I think a soup Nazi in Seinfeld, incredible soup. But their food costs, they needed to cut some expenses. So they watered down the soup a little. Now immediately they were able to save money, drive up profits, get, you know, deal with short term profitability. But also in word traveled, soup wasn't as good. Few customers quit coming, talked about it. Their long term asset of their soup, their brand got watered down literally. And the business ultimately failed because they didn't think about their asset management of what their true value was. They cut too much. Next example Matt gave on our podcast was you real estate investors that have some short term rentals, maybe some Airbnb and you think, you know what, things are tight, people may be not traveling as much. So your Airbnb may be going down a couple of days, three days, a month, less. You may have a short term rental scenario. But just the example is you cut costs. You don't repair something. You cut corners with landscaping. Maybe you don't stock some of the amenities in your Airbnb the way you should. Maybe it's a, you know, a month to month rental and you cut corners on certain things. Well, in the short run you're going to make some money. But in the long run, are you going to get all those reviews, five star reviews that you need? Are you going to have a tenant that moves out or trashes the place because they're mad? We need to think about our asset of our rental property and not just cut costs for the sake of short term profitability. We don't want to undercut the long term value of a good roof and good landscaping. It may cost us more later fixing, not doing proper maintenance. All right, well there's my eight tips to stay lean and mean with your small business during a recession. I hope any of those eight help you. I think they're practical, hard hitting and right on. But that's just me being a little jaded. Okay, now let's hit some questions here. Wow. Mira says my retirement age parent is asking if they should liquidate their 401k now as they see the value dropping every day. Giving financial advice, you all hear it. I'm going to make a recommendation to think about. And Dave Ramsey said the same thing on a podcast last week and I loved it. Don't freak out. The market will come back. It always has. Wall street loves recessions because they see bargains. They're going to buy when it's low. A lot of people freak out and sell when it's low and then wait for it to come back and then buy and they never recover. Slow and steady. Slow and steady wins the race. Myrna Mira, please tell your parents to just hang on and be strong. That would be my recommendation to think about. And there's deals out there. I was just talking to my guys here about Tesla and how it's down in price. Meta or quote unquote Facebook these are companies that are going to be around three years from now. They're down 20 or 30% if you're selling and then going to cash and waiting for it to come back is not a good move. Hold out, be okay. All right, turn on the ac. Do not click any cryptocurrency scam links. Okay, now we're going to get into some more questions. If I missed your question and went past it, repost it. What's the best side hustle to start during a recession? Dad and Ellie. I'm glad dad is there with Ellie or Eli, so it could be girl or boy there. What's the best side hustle to start during a recession? I'm going to make two. And by the way, I've started so many small businesses in my life and we consult small businesses every day. So I might add something helpful here but drives me crazy. Some ideas I think are stupid. They make millions. Other ones are great, I think, and they don't go anywhere. So take it with a grain of salt. But number one is start a business that doesn't take a lot of startup capital. You can be up and going for some of you that have some consulting experience, get on Upwork or Elance. I think Elance bought Upwork or the other way around. But get on some of these sites and just start doing some consulting. Start immediately. That's a great little business. Maybe you're going to start Uber or Lyft. Maybe you can start a service business that doesn't take a lot of startup cost is one of the best things to do in a recession. You can just get out there and work an extra two or three hours a night. Honestly, this truth and some of you already know this, you've been following me for years. Maybe. I started a janitorial business back in college. I cleaned toilets, I cleaned windows. I had a carpet cleaning van. I did it all. It was stripped and waxed floors. You can buy a mop bucket, a vacuum and cleaning supplies and go hit the road and have jobs immediately. And you say, you know what, I'm going to listen to some ebooks at night or some podcasts and work for three hours cleaning. It's brainless work. You can make quick money at it. That's a great side hustle. So number one is do something that doesn't take a lot of startup capital or time to launch. Well, I'm going to start a business plan and I'm going to go raise capital. Hell, it could be a year from now before you get off the ground. Do something that makes money frickin tomorrow or next week. Number two, look at your geographic area. Go out and see what people are spending their money on, especially services. Again where it's a low cost of entry and look at the marketplace. What could you do to get a service or product that maybe is really competitive Right now? I think of a handyman service. Trying to get a handyman to show up at my shop and studio and do something. Holy hell, I can't even get a return call, let alone on someone's schedule. In some states you can do handyman services for under a thousand with no license at all. You don't need to be a contractor to go out and just do some simple handyman work. It can be therapeutic. It could be enjoyable. Go out and see where all the competition is. How can I say that? Go out and be a consumer yourself and find out where there's a weight in a skill set you might have and see if that helps at all. Again, avoid these stupid comments from bots trying to sell crypto or other scams. Angie says okay, I like this Angie. I'm going to throw this out. Don't jump out of the windows no matter who tells you to. I am on Staying Alive Summer Tour 2022. It helps to listen to a theme song from the Bee Gees vinyl record cut from 1977. Okay, I'm going to quote my amazing life coach again here and talk about something Angie just said here. Sometimes people, when we have a lot of thoughts that are scary and negative and we're going down this spiral of of fear, we need to somehow get out of that thought process. And I want to recommend three things. This came straight from great life coaching. Brooke Castillo is the mother of it all. She's great. 1. Change your physical environment. Just go for a walk, get out of the house, get out of the office. For 10 minutes. Change your physical environment. Number two, change your auditory environment. Listen to a cool song. Change. Put on your a song that is motivating and exciting to you. I like Angie's example here. Put on some. Put in some earbuds, some over ears. Go for a walk. You're changing your physical environment. You're changing your auditory environment. And number three, force yourself to think of a thought that empowers you. Think of something new. Think of an old memory that you know. Write Count your many blessings. There's a song out there. Start writing down what's going good in my life. Find something and think about that for a moment while you change your physical and your auditory environment. Okay, Tani says this is so good. Thank you. You guys are so kind with some kind words. All right, Chris says I'm going to just read Kris's statement. Are we really in a recession? Lots of fear out there, but still low unemployment. And most small businesses I know are still in the same position as they were 12 months ago. Kris, I appreciate your comment. Matt Sorenson talked about this on our podcast a week ago, not this week. It was recession proof. Your personal life. Get over to Main street podcast.com and Main Street Business Podcast. Oh my gosh and listen to it. What he talked about, Chris, is this recession is very different than many others in the past. The real estate market is stronger than ever, There's a huge demand and very low supply. Number two, unemployment is lower than it's been and businesses that started 12 months ago are still alive and well, but our overall GMP is down. If there's these indicators that when prices go up, we have an inflationary issue and certain indicators are hit for two months in a row, it qualifies as a recession. And then we turn on the TV or turn on our favorite social media platform and all of a sudden we're deluged with this crisis and everybody's got their heads cut off running around crazy. So Kris, I'm with you. Let's keep sane. Let's not get sucked into the fear and realize that there's some bargains out there. We're going to be okay. Now, I know some of you have some businesses that are really being hit hard with transportation costs and gas prices and other things. I get that it's scary out there, but we don't want to dwell on that. We want to have a plan of attack. So good stuff. MW says almost guaranteed our business is down 50% from last year. So MW, our hearts go out to you. Get creative. Look at your product and price mix. Get efficient. Maybe introduce some new products and pricing. Have some meetings with your friends, family and employees and brainstorm. Be active. Get. Try to figure things out. I don't have any money to take advantage of in a recession. Ah, solid Nate money Jack. This is what we were talking about, right? Solid Nate says I don't have any extra money to take advantage of a recession. You know, sometimes staying solid, strong and just maintaining is okay. I know there's going to be some people out there that have money in reserves to take advantage of some strategy or some opportunities. But don't beat yourself up. Continue your education. Soak up good knowledge. Start that little small business during the recession. Little service business with low cost of entry. Okay, Matthew. Okay. We got people in here getting. Trying to get some scams. Okay. Vic says I'm in a large real estate investor group. Would you consider something specifically tailored to flipping rentals? Airbnb. The latter is most confusing. Hospitality first. Real estate is still very strong, but it's also very geographically driven. Some markets are holding steady, some are climbing, some are down a little bit. Overall, real estate is still a really strong investment. Rents are going up, rental property values are going up. So I think in general, you're, you know, real estate still a safe quality investment. The trick is finding the deals and buying retail can oftentimes not be your best move from an investor standpoint. Maybe as a consumer buying your primary residence, you've got to buy retail to find what you need. But as a flipper or rental property, you want to get creative, increase your education. I just spoke at Renatus this two weeks ago. My renatus.com. i love them. I think they do a great job. I'm going to core. You throw up my whiteboard. I'll just throw that out there. I make no money with this recommendation. And I think the education is so really affordable. And the little communities around the country are just great. My renatus.com and check that out for some of you that need a little bit more real estate education. It's a great community. You can get on that website and find someone locally. It's a place I speak and I trust, so you can pull that. Corey, thanks. All right. Da, da, da. Oh, my gosh. More bitcoin crap out here. I love crypto, but I don't need these scammers here. On our podcast, our broadcast today, Kevin says, hey, Mark, I have a friend who I trust with my Life. She has 150,000 and I live in an area with low housing Prices. Okay. She wants to form a partnership to buy a rental property here. How should we structure? Okay, Corey, back to the whiteboard. Sorry. Okay everybody, let's say you're going to. Now, I'm not. I don't know if the market that Kevin and his friend are looking at is the right place to buy what type of rental they're going to buy. Is it going to be a duplex, single family home, commercial storage units, veteran housing, college housing, all those issues, how much are they going to pay? Are they going to use real, you know, loans, other people's money, OPM with the money down scenario? I love to do all that analysis myself, but let's just assume they find a rental property that works for them. Let's go to our trifecta. The trifecta is putting our long term assets on the right and then putting our operations on the right and on the left. So operations on the left. This would be your typical small business LLC or S Corp. Lots of options over here, but we're focused on rental property in this question. So if Kevin and his friend are going to buy a rental property, we are going to set up an LLC in the state where the freaking rental property is. Not in Wyoming, not in Nevada, not in New Mexico, not in Delaware. We're going to set up the llc and not with a company that's going to give you a free LLC so they can upsell you other crap or a company that's going to give you unlimited LLC for the rest of your life for a big dollar. You're just going to a la carte, an llc, the right fit for the right project in your state where the, where the rental is located, not where you live. We're going to set up this llc, take transfer title to the LLC after closing and both of you would be owners or members of this llc. You might ultimately buy two or three rentals. You're going to have its own checkbook. This thing's going to be, have an operating agreement where you two can define your relationship for the business project and deals. And this is the way to go. We have a, I think $450, $400 set up with a paralegal or 8, 800, 850 with an attorney to design it, tailored to you. You're like, well I can get it for 200 bucks online. Yep. But do you want to discuss the 92 provisions that should be in your operating agreement and how you're going to, how it's going to get taxed and how you're Going to structure it together. So it says success in the future. Take a little bit of extra time and money to do it right correctly, right out of the gate. But an llc. Brad says, thanks for the helpful, consistent content. You make it funny. I appreciate that. Yeah, taxes are fun. Damn it. So, Brad, I'm on board with you. Feel it, Feel it. Okay. Oh, this is good. Almost there says, I think a recession is a great time to cross train. Make your employees happy so they don't leave. Now, I think those are two comments. One, cross training, meaning making sure your employees are efficient and finding ways to increase everybody's skill set. Maybe providing more value to your ultimate customer in the process. And then he said, make your employees happy so they don't leave. You know what's funny is I'm literally leaving here in 10 minutes at the end of this event. I mean, this presentation. We're having a company barbecue. I invited all the employees over to my house for a barbecue tonight, and it's money well spent and it's a chance for me to interact with the employees. I love that opportunity. And all in all, it's pretty darn affordable compared to losing employees and not having better morale in your company. So maybe have a client customer appreciation barbecue. Have your employees over for a barbecue. You don't have to spend thousands of dollars to just have a little something to let everybody know that you appreciate and love them, whether it's the customers or employees. Great comment. Almost there. Okay. Okay. Lou says, not sure if you answered the real estate partnership question above. Best structure real estate. We did that. LLC on the right. Fareed Mohamed says. Love this session. Do you have a summary slide for the eight points you've highlighted? You know what I'm doing tonight? I'm writing a blog article on this Fareed. And this blog article will be a link in the description, and the blog article will also be in my newsletter, which is free every week. So make sure you sign up for the newsletter@markj.kohler.com and if it look the first week to make sure it's not in your spam folder and you authorize it to come through every week, I think you'll love it. Hey, Mark, any new update on the incoming regulations regarding crypto? I don't comment on regulations or laws that are being debated in the House Senate or the IRS or the SEC until they're out and final. It's like watching Sashis get made, Edgar. You don't want to look about it or think about it until we see what freak is Coming out now, we do lobby. We've got lawyers in our office that lobby on a regular basis. If we see something we don't like, we're going to actively call our congressmen and senators and legislators, whoever, wherever, state or federal. But right now, let's not worry about the law until we see what it looks like. At the end of the day, sometimes they don't even come through. You know, Build Back Better didn't even get passed and everybody was debating it for six months. Can you share your podcast name again on the whiteboard? Yeah. So it's Main Street Business. Jack, help me out. Is it Main Street Business or is it Main Street Podcast? Embarrassed at the Main Street. The best website. Main Street Business. Main Street Business or dot com. Or you can go to mainstreetbusinesspodcast dot com, right? Yeah. Main Street Business Podcast on Apple or Spotify or anywhere else you listen to. Podcast, podcast, Apple Spotify, Stitcher, Mainstreet Business, Podcast.com. we've been facelifting the website and it's a little long, so that's why I've been want to make sure I got it right. Over a million downloads. Lots of good stuff. 3, 400 podcasts that you can go and peruse. Thank you so much, Maria, for asking. Ooh, Sam asked a meaty question here. Hey, Mark, if I have an S corp LLC in a state and move states, okay, what's the best way to move the llc? Do I open another LLC in the same name in the new state and then merge the old one? No, here's what you do. So everybody, Sam has an LLC taxed as an S corporation. Now, this is an important point. So he's doing operational business, maybe multiple businesses. That's okay. And let's say Sam is in. Give me a state, I'll say Arizona. And where's. It's hot right now. He's like, I'm out of Arizona. Where's he going? Oh, he's going to go to Florida. Okay, so he's going to Florida. Still warm down there, but there's an ocean. Okay, so he's going from Arizona to Florida. He's got an LLC taxed as an S Corp first in the IRS's world, you do not change your ein. You do not open a new entity in Florida. We don't want to have to get a new tax ID number. We want the history of this llc. Maybe you're building corporate credit. We want to keep the same tax ID number. And you're not going to change your tax return filing with the IRS yet we're going to come to another point. So what you're going to typically do are articles of domestication. Articles of domestication. Move your entity to Florida and then you will file a disillusion in Arizona. It's kind of a two step process. You don't want to dissolve it in Arizona before you file the articles of domestication in Florida. Now my paralegals are fantastic with this. You don't even have to talk to one of the lawyers. Call Christy Rice at the office. She's my manager over the business department. Phenomenal. She's great. And you can call 888-801-0010 and just say I need articles of domestication filed and a disillusion. And she'll tell you the process. Depending on the two states you're going to, sometimes the forms are a little different. The beauty is again, your ein doesn't change or your tax filing. Now in this process, keep in mind everybody, Sam is doing payroll in Arizona. That's how an S Corp works. He's saving on self employment tax. So you're going to have to go to Florida and get a new state tax ID number to do your payroll. So you're going to have to get it some new ID numbers down in Florida, but no new federal number. The other thing, let's say Sam's business, when he goes to register in Florida, someone else has the same name. He's like, what the hell? If that's the case, you're going to have to change the name in the process. You might change it in Arizona first, then domesticated in Florida, or depending on the rules, register it in Florida under the new name. Now if you do that on your tax return at the irs, you're going to check the box name change and that's okay, you keep the same tax ID number again, but you're going to go through a name change because someone else already has your name in Florida. But you're still going to do the domestication process. Talk to Christy and she'll walk you through it. You could probably do the whole thing for under 750 bucks depending on filing fees. That's with filing fees. Our fees are going to be two to $300 on each end, so not too bad. Great question, Sam. Okay. MW says it's a dumb reason to assume that it'll always come back though. Just because it always does in the past doesn't mean it always will. MW that's fair. You know, the economy has been cyclical. The real estate Market has been cyclical. A lot of people make fear decisions when things drop. And in the past, history tends to repeat itself. Mw, you've heard that now someday maybe the whole government and the country is going to crash. Okay, fair enough. But history tells us that it's cyclical and it repeats itself. We just got to be patient. That's all I can throw out there. Ken says, great presentation. Thanks for doing these. I was introduced to you attending the National RV Training Academy down in Athens, Texas. What Ken did is start a small business doing RV maintenance, repairs or inspections. And I, and I just love that. Ken, I'm in the market for a new rv. So what do you suggest I do with the proceed. Okay, I'm about to sell a rental property, about 100 grand. What do you suggest I do with the proceeds? My wife and I plan on retiring early as a teacher and nurse in two years. Well, the first question I would have if I was in a consult and any of my attorneys are going to ask you this, Ken, is why are you selling? Rents are going up. We want to look at your return on investment. Are you going to take that 100 grand and put it somewhere else and get a better rate of return? Maybe the market's capped out and you're like, it's a time to sell. I get that, but what do I do with the proceeds? Oh, Ken, I'd have to have your whole picture, you know, where do you live? What's going on with your business? Your primary residence? Where are you traveling to? What state are you going to live in? What's your retirement look like? There's a lot of questions there from a tax perspective. If you're going to go right back into real estate, think about a 1031 exchange. A 1031 exchange is a way to sell your property tax free. I should say tax deferred and kick it into another property or properties. Now this is a good time to mention Jack, I'm going to throw it out there, our real estate tax summit. And can you come over and tell me the best website for this to get to rather than they can go through markjkohler.com so if you go to markjkohler.com realestate taxsummit.com Perfect. That's what I thought. Okay, let me throw this out, everybody. We are in September doing a two day real estate tax summit. I haven't even heard of anyone doing this for the general public. You'll see some conferences for accountants or attorneys. Boring. But we're doing a two day Real Estate Tax Summit in September. Prices will go up on the 4th of July or July 1st. I'm not sure when, but in the next couple weeks, the cost of tickets will go up and then they'll go up again as we get closer. We have a VIP experience. It's going to be in Austin, Texas. And the dates, it's right here in my calendar. La, la LA. It is September 29th and 30th, September 29th and 30th. So September 29th and 30th. This is a great place to go, people to talk about all sorts of cost segregation. Airbnbs, short term, long term rentals, commercial rentals, 1031 exchanges, opportunity zones, charitable remainder trusts, real estate, professional strategy, real estate losses. We're governing it all. Capital gains, short term, long term. The website is real estate tax summit.com. you get your tickets now, two days. We're going to have a after tax party with a band on the last night. Again, just like our Crypto Tax Summit. You're going to love it. Monica says, when are you going to take new clients? I met with one of your attorneys, nice guy, but does not have your energy and knowledge. Okay, well, Monica, I'm working on that. I'm trying to get my team. I do trainings every week with my people and I'm going to bring this up in our next training meeting. Knowledge. I want all my attorneys to have the same amount of knowledge, energy. I can't train that, but I'm going to try to eke it out of my attorneys every time I can. Please all of you. I've got 14 attorneys that I train at regular weekend retreats and every week, some have been with me 10 years plus. They're phenomenal. If you meet with one of my attorneys, male or female, that you're not thrilled about, give us a call back. We can make a change and find you a different attorney to work with. And I personally am only working with our charitable remainder trust clients because it's a complex area. Right now. I can't manage my team and take a lot of new clients myself. But please call back if you were frustrated at any point. And I would recommend talking to Chantelle. I would say her last name, but I usually kill it. I'll go, Chantelle. You give Chantelle a call and say, chantelle, I'd like to make a change and get a different consultation with another attorney. Please do. We're not going anywhere. We want our customers happy, too. Dewey says I'm buying left and right. Bargains everywhere. Love It Ooh, we got a self directed IRA question and then I think maybe two questions and we're done. And just. And by the way, I might do a giveaway here so don't go anywhere. Fet says, Can I use $6,000 to make payments on an asset that makes money. Example 500amonth capital loan, $6,000 annual Roth contribution and continue to do that even with zero cash flow. I may. I love, I'm liking where you're headed but I don't know if I get this. Can I use $6,000 to make payments on an asset that makes money? Example of $500 a month capital loan and continue. Okay, let me just throw this out for everybody. And Fett, hopefully this will answer your question. By the way, self directed IRA handbook. Matt Sorenson best selling book in America on self directing your retirement accounts. Phet. I'm giving you this book. I need you. I'll tell you who to email at the end of the show. This book is yours and you damn well better read it. I'm going to give it to you. We're going to ship it to you for free. I love your question in general and I'm going to do my best to answer it for everybody. Let's say all of you out there have a Roth ira. Oh can you put my white screen up guys? You have a Roth IRA and you've got $6,000 in it. You can buy all sorts of assets. You could give your freaking brother in law a loan and they pay back their loan plus interest into your Roth ira. You could buy real estate. I bought cows. You can buy a crypto mine. You can do short term loans. You can buy real estate. You can do all that. Now you can't buy an asset you already own, but can you make payments on an asset that makes money? So what I think he's doing is buying an asset that turns around and pays interest or returns on the project or something like that. But the bottom line is people invest your Roth and what you know, you can go to sdir. Well directed ira.com we have video after video, tons of free content directed ira.com where you can self direct your Roth, your Ira, your solo 401k. Okay I am going to, let's see, grab one last question. And then we'll call it a day. Oh I saw this concrete blonde says I had a hard time finding a handyman. I called Ace Hardware. I just saw that the other day a van outside the back of Ace Hardware, the Ace Hardware handyman service came out Two days after the call. Concrete Blonde. I appreciate that. Kind of fun. Affiliate marketing, low cost to enter and good products and services. Kyle, great comment. Let's see. Boy, all sorts of good. I'm going to scroll way down here and see if. Okay, this is a good one. Conspirator of Plots. Wow, Eric. I would open an LLC under the S Corp. So Eric makes a comment and then conspirator Plots is giving them an answer. And I don't know if I like that answer, so we're going to see what's going on here. Scroll up. Further down. Oh, down. Eric Klug. Okay, Eric Klug says I accidentally made an LLC taxed as an S corp that I wanted to use for rental properties. Can I convert it back to be taxed as a sole prop. It currently holds no assets. Yes, maybe. Everybody, here's the rule. And then I'm going to come down to the answer someone else gave, which I did not like. And please be careful giving answers to questions in my own podcast until you hear my comment and you want to debate it with me. I'm all ears, but okay, Eric says I took an LLC and the LLC and he turned it into an S corp when it really should been over here for a rental property. So he's got an LLC with an S Corp. If the day you set up your llc, you made the S election effective the same day you started the llc. Okay, does that make sense? So you made an S election and it's the same day you started the llc. The IRS allows you to convert it back to a sole proprietorship. No S election, no harm, no foul. You charge a few hundred bucks, you're done. So you can unwind the S election if it was made the same day to be effective the same day the LLC was set up. If not, you're going to be stuck with a C corp. And if you don't need an S Corp, I dissolve the whole damn thing and get away with and just be done with it. Because if you can't undo the S election, whatever. Now, Conspirator Plots. Ooh boy. Conspirator of Plots is answering a whole bunch of questions out there and kind of concerning me a little bit. But let's see. He says, eric, I would open an LLC under the S Corp so that if sued, the property belongs to the S corp that was rented by the llc so no one can sue you for it. Conspirator of Plots. And bless your heart, I don't know who you are, and I. I'm all up for some debate here. Eric's not asking about asset protection. Eric is talking about a tax issue. The tax issue, everybody is you never, ever, ever want rental properties in an S corp. That's not a good thing. We don't want that. Conspirator says put an LLC here and then the rental in there. That doesn't solve the problem. The S Corp still owns the llc. Now, yeah, you got an extra layer of asset protection, but you still got a jacked up tax problem. And that's what Eric's asking about. My S corp. I want that LLC to really own rentals. But I got an S corp problem. It's called Bill in Gaines General Utilities Doctrine conspirator plots. You're making comments and I appreciate that. I hope you're a lawyer and a CPA out there, but you don't want Reynolds in an S corp. And, and creating a subsidiary of the S corp doesn't solve the problem. So we got to get this S corp out or just dissolve the whole damn thing. So be really careful with that. And I don't mind people making comments out here, but just please be careful. Okay, so I want to give away some things here. Kay demires, Demirs, I'm going to give you the tax and legal playbook, Kay Demirs. Now, if you've gone, you're not going to win. So if you're still here, I'm going to give away. Now what you do is you email coreyarkjkohler.com he will confirm who you are. He's making notes right now. We already gave away the self directed IRA handbook. Now we're giving away the tax and legal playbook to Kay Demirs, Tony Carzana Caranza. I want to give you what your CPA isn't telling you. This is a fun story and I love you talking about taxes here, Tony, this book, great read. It's fun, it's a story, and it gets you addicted to taxes. So, Tony Carranza, we're going to give you that and then my Financial Freedom book, I'm going to just scroll up and see who I get. This is good. I'm going to give it to Good for Business with Colin Kreger because he says, I was happy to hear on the podcast that you were a classic Midnight Oil fan. Damn it. I just scrolled and that randomly came up Good for Business with Colin Krieger. I love it. Midnight Oil went to him last week in Boston. They were freaking awesome. Okay. Giving you the book Financial Freedom, the Business Owner's Guide. To financial freedom. Okay. Got all that, guys? You good? Okay. Well, everybody, thanks for being here this week. I will be speaking at a conference next week on Thursday. So I won't be doing the live next week on Thursday. Maybe we'll knock it out on Tuesday. Okay, everybody, keep living the dream. I will get an article out tonight on these eight tips for succeeding with your business during the recession. Don't give up. Love you.