Legal and Tax Hacks for Every Savvy Individual

We've got a great topic today. This is common questions and misconceptions people have about tax and legal planning.

The health savings account. This is a, you know, a common problem where people get the HSA set up. They're like, the HSA is cool. Oh, my gosh, I'm going to fund it. And then it's on day three or four, it's like, okay, now how do I do reimbursement?

One of the most common misconceptions we get for real estate investors, something called the due on sale clause.

What do I do about my credit cards and the expenses I incurred for my business there? And if I didn't run them through the business account, they're gone, right Foreign. Welcome, everybody, to this week's episode of the Main Street Business Podcast. Thank you for being a regular listener. Glad you've maybe even just stumbled on this for your first episode with with us. My name is Mark Kohler, a cpa, attorney, author, business owner, rental property owner, crypto miner, surfer, whatever do. I'm jack of all trades master here with Matt Sorenson.

Amazing.

Yeah.

We've got a great topic today. This is common questions and misconceptions people have about tax and legal planning and whether we get it from our own family members every once in a while, from a client that we thought knew how to do it right, experienced business owners, to, of course, all the newbies that seem to get all of it wrong. So we want to hit some of those common ones today and try to set you straight, give you the right info, set you on the right track. Love it.

I like it. Well, let's dive into it. We're gonna try to keep it light and fun, enjoyable. So we appreciate your patience with some of our antics and some a little digressions. It keeps it a lot more enjoyable. So we're gonna talk about. First topic is the health savings account. This is a, you know, a common problem where people get the HSA set up. They're like, the HSA is cool. Oh, my gosh, I'm gonna fund it. And then it's on day three or four, it's like, okay, now how do I do reimbursem, reimbursements? Do I let it grow? Do I have to take it? And it just kind of that these questions, a lot of times I think today are going to be the day after questions, you know, so this is a very common issue is what do we do next? So for those of you that have a health savings account or have thought about building one up, these are phenomenal. Of course, think of it like a Roth IRA on steroids, but just for health care. The reason why it's on steroids is you get a tax deduction going in and you can pull it out at any age, tax free and penalty free as long as it's for medical. So, I mean, it's just like the best of all savings worlds. And Matt and I will often debate what's better, the HSA or the Roth. And it's a close tie at times. It depends on the person and what their situation is. So they're very, very valuable to have in your arsenal or your toolbox, if you will. So once you've got that money in there, let me share a couple of my takes on it. I know we both have HSAs. The first thing is you need to know you don't have to take the money out and reimburse yourself. Some people think, oh, now that I have this hsa, I've got to reimburse myself. No, in fact, if you're doing okay and you have the financial wherewithal, let the money ride. I don't know if that's a craps thing. It's something in Vegas. Let it ride, let it ride. I don't know, I'm terrible at craps and I just watch and lose money. But. But yeah, just let the HSA snowball and grow for when you really need it because you could have a larger expense or you don't have the income to cover a medical expense. So don't feel like you're required to pull money out of your hsa. The other misconception I'll just mention too quickly, and I know you've got a couple, is that, well, I can only have one HSA or I have one at work and it's, I really don't use it, so I don't get the full benefit. Oh, no, no. You can have two or three HSAs. Now, your annual contribution total is the same and your employer might be putting in X dollars for you, but you can open up an HSA on the side, control it self directed, a directed IRA here at our office. You can open up an HSA tonight online, start putting money into it. You could buy real estate, crypto, stocks, investments, notes, pool it with other clients, LLCs, and do a lot with that HSA so you can have multiple HSAs. Don't feel held back by your employer's HSA restrictions. So I don't know, those are a couple of common ones. What else do you see out there?

Well, Just yesterday I had a question from someone about taking the deduction for the hsa. And can you take it if you have a certain AGI or your high income? Nice thing about the HSA is no matter what your income, you could be a billionaire making a million billion bucks a year, you still get to take the HSA deduction. So there's no phase out for high income people. There is on some other things, of course, in the tax code. But for the hsa, any income, you still get the deduction of it.

Okay, the last misconception is that I cannot do an HRA, which is a reimbursement arrangement, a 105 plan, if I have an HSA. And the truth is you can do both, but you cannot double dip on an expense. So let's say you go to the doctor and they prescribe something at the local pharmacy, the grocery store. You go in, you get it, and your insurance did a crappy job. You know, maybe it was a couple hundred dollars and you're like, ugh. Well, you have options. One, you could take it out of your hsa and depending on your HSA portal or the, I guess the trust company or brokerage or bank or whoever manages your hsa, you would turn in the receipt and. And they'd send you $200. Or you could just let it ride. You could also, over on the side, have that HRA plan where through a sole proprietorship or a C corp, you've got a little plan that's a chapter in my book here, where you're reimbursing yourself for the $200 and taking a business write off. Meanwhile, you're still funding your hsa, so you can really get strategic with that. So the beauty here is, I guess the big takeaway is don't feel restricted. There's lots of options and you can let that money grow, which is, I think, a misnomer. So. All right, misconceptions. All right.

Love it. Okay, let's talk about for you real estate investors. One is that a lot of people get all caught up and they're like, hey, and I just have a question from this from MP 2023. But a lot of people get caught up and say, matt, I want to transfer my properties to an LLC or to my trust for estate planning, but I have a mortgage on there. I got my personal name and I was told that if you transfer the property, the bank can execute on the due on sale clause and effectively foreclose and take the property back. Now, yes, in your legal documents, there's something in your mortgage that says if you transfer the property, the bank has the ability to enforce the mortgage, foreclose on the property and take it back. They also have that in there. If you don't update them on information going on in your life where you move, if you don't make your payments or all these things, if you breach in your mortgage, they can take the property and foreclose against you. Now none of them do that. We've transferred thousands, if not tens of thousands of properties to LLCs that people bought in their personal name and later transferred over to your LLCs. Banks do not care. They do not approve it though, or they do not give you green light. But as long as the mortgage is being paid, I think we've seen less than 5 clients over 20 years of practice and 10,000 plus properties transferred LLCs where this has ever been an issue. So don't stress about it, just get the property transferred over to the llc. We want the real estate properties in your LLC for asset protection so that you're protected from any liability on the property. Do not get caught up on the due on sale clause. We've just never seen it practically be an issue.

Oh, love it. And you have to remember the five people that maybe had an issue this last 20 years is because they went in and asked permission and then the bank had a button under the desk, Reap, reep, reap. You know, and they're freaking out. Heads are exploding. Bankers can't do anything without getting four people's signature and approval. And they've already sold your mortgage. It's already been bundled up and sold to servicers, taken over the bank that you got your loan at. Unless it's a small private bank and little middle of nowhere county usa, they've already sold your mortgage.

Thanks for not choosing a specific state or city to, you know, make the target there. That's very PC of you. He just said, you know, county usa, very generic.

Well, you know, I'm, I'm very PC.

Yeah, you're very cool.

Yeah, I'm trying, I'm trying.

You don't want to target anybody. But you know, I get the, the other question on this is of course if you have missed a payment and this is the one client I had that had to do on sale clause is they missed their payments for like three months. And so the bank started foreclosure proceedings and they also noted, oh, and by the way, did you sell the property because it's not in your name anymore. It's an XYZ llc and the client was all hot and bothered and it's like you weren't making payments. You know, they do foreclose when you don't do that.

So, yeah, the LLC wasn't the problem.

Yeah. So it's rare to see that as an issue and usually it's because of something else.

I like it. Okay. Another big misconception. And this is going to save you taxes right here, folks. You're going to love this. I was actually talking to my daughter Sydney last night because she called me about it and she's. It's fun when you start to see your adult children making money, whether it's in the corporate world or in a small business. And all the questions you, you know, all the things you've been trying to teach them now matter. And then they circle back and ask you the questions that you thought you already answered. But she's adorable. I love her. And she's. She had the same. The same question. That's very, very common. We've got one here on our Open Forum Main street page. What do I do about my credit cards and the expenses I incurred for my business there? And if I didn't run them through the business account, they're gone. Right. Even my daughter said that. She goes, I didn't run that expense through my business account. So I don't get the write off. And a lot of people are afraid about that or it's going to be an audit issue or something like that. No, no, no, no, no. You're good. So this is, this should be a really breath of fresh air for many of you. If you have a credit card, I don't care if it's in your name, your mom's name, your kid's name, your business name, your alias. I don't care if you use that credit card for a business expense. It's going to be a write off. And we're going to book it in the tax return, if you will, as a valid business expense. I just need to be able to show, yeah, here's what I bought at Home Depot. Keep receipts. Receipts are a different issue. Maybe we should bring those up today. But if I, I want all of you, as you're Preparing now, your 2022 tax return, to go through and comb through all of your credit card statements, bank statements, and look for any expense that was business, even if it didn't go through the business account. Write them down on a spreadsheet, give them a category or brief description, and your accountant will do a journal entry to make sure they're a write off on your business tax return. Now, Aoba here with this common question on our Main street podcast page said, well, I want the business to reimburse me and can I book it as a loan or do I, is it, did I loan the company the money? Does the company, how do I get paid back? And you're over complicating it, people, when you start to do that, don't do that, Ioba. Just, just know that you've paid for them, you're going to get a write off and any profits you take out of the business are separate. Now, if it feels good to have the business reimburse you for an expense you had personally, you can do that. You don't have to. But don't start creating loans between you and the company either. It just convolutes the books. So I know this may sound weird, but I actually made that a lot easier on you. It's really that easy. Just keep a damn list of all your business expenses, no matter where you incur them, and, and meet with your accountant and say, here they all are, please book them, put them on my business return. Now we don't want to get in a habit of doing that. We want to not commingle and things like that, but if you can just know you're not going to lose those write offs. I don't know, does any of that make sense? Hopefully it was a breath of fresh air.

Yeah, I love it. Yeah, it's, I mean, I got nothing more to add to that. Okay, this is one of my favorite common questions. And this came from Ali, also on the Main street business podcast page. And this is, this is a question that comes when you start learning a little bit about Roth IRAs, but you don't learn the full story on it. And this is sad because a lot of people get stuck at this question that Ally is asking. Ali asks about Roth IRAs. If one makes over $152,000 salary threshold, how can he contribute yearly to his Roth ira? Great question, Ali. You're not going to contribute directly to a Roth ira. You're going to do a backdoor Roth ira, which at the end of the day is the same thing. You just got to go about it a different way. The backdoor Roth IRA is basically where you can contribute to a traditional IRA and what's called a non deductible contribution, no income restrictions. To do that, you then convert that non deductible traditional contribution over to Roth, no income restrictions there either. Now, at the end of the Day, you've got a Roth IRA, which you could do 6,500 bucks a year, which is the regular Roth IRA. Contribution limits. So we're getting around this. This is called the backdoor Roth IRA by doing a two step contribution conversion process to get to the same result. So don't think you're out of the, out of the game here on the Roth ira. You're still in the game. You just got to go through the back door to get in.

I love it. I thought it was a party, but

it's a game, It's a game, it's a party.

You know, whatever you want to be. All right. We're going to a spring training game tomorrow. Yeah. So. But we can afford to go to those. It's a big MLB games that are, you know. Yeah, those are, you know, they can get more space.

You know, the spring training is great. The stadiums are small. Every seat's a good seat. You say the same players and it's outside right now in Phoenix, which is amazing. So.

Well, it is special. Okay, next common question and misconception is I, the person I'm working with, did not 1099 my company. They 1099 me. I'm screwed. I can't use an S Corp or oh no, sky is falling. That is not the case. It is very, very common, especially in the realtor world where brokers will 1099 the realtor directly. They're individual social, even though the realtor has an S Corp. And then if you think even more broadly, you might have a rental property and you have a commercial rental and they 1099 you for rents and a 1099 the wrong ein or your social. You might be a doctor or a dentist or a chiropractor or a physical therapist. And the insurance reimbursement goes to your social because that's what you used when you set up the insurance structure. And so it can be really a grab bag. Now, everybody, again, this is me giving you a hug and a kiss saying it's okay. If you get multiple 1099s even to your own Social Security number, we can still push those through an S corporation. Now, we can't do it retroactively. I got a question here from M. Wilcox08 and says, hey, I'm doing sales work as an independent contractor. I got a 1099C. Should I create an S Corp? Well, maybe. I don't know how much money you made. And you've got to have a consult with one of our tax lawyers to make sure we set up the right type of structure for you. But after the fact, it can be hard to get a 1099 into an entity if you didn't have an entity at all. But for all of you out there that have an LLC and you're getting multiple 1099s for last year, make sure you take those all into your accountant. And if your accountant says, well, they didn't 1099 your entity, you're screwed. Oh, you got the wrong accountant. So this may be a good little time to now give you some additional resources on our on my website, markjkohler.com we this last year we've been building and launched in January our Main Street Certified Tax Pro Network. And so we have tax pros that have been getting trained by me, Matt, and our legal team to become tax advisors, whether they're enrolled agents, accountants, bookkeepers, CPAs, everywhere in between. So if you're looking for an accountant that speaks our language and you're kind of liking what we're talking about, but your accountant has no clue, tell your accountant to come check out our program. It's at MarkJ Kohler.com Main Street Tax Pros. Or if you're looking to upgrade when you get to the website, just click on the network and you're going to see a list of accountants all over the country. And when you interview with them or talk them to talk to them, they speak our same language. They've been trained on all of our strategies, and we collaborate with them every week in training calls. So you shouldn't feel like you're out on an island. And if you're getting multiple 1099s, it's okay, take them to your accountant. They can push them all through your entity. Even if your social was on one of those 1099s, love it. Tricky topic.

All right, I want to talk about There's a question for the Main Street Business podcast that we covered in the last open forum. I had a phone call about this same topic just last week with a former employee of ours who was paralegal, who kind of sources all these questions from her friends and family that didn't know either. And this is a common one when you're transferring property around between parents and children. There could be gift tax or estate tax consequences to this. A lot of people think. And there's a question in here, hey, we want to buy real estate and get into real estate investing. My mom has equity in her home. She wants to get a line of credit on it. The bank won't loan her money because she's retired. But if we transfer it to my name, the bank will let us strip out the equity and I can get the loan because I have employment and I have a job. And we want to use that equity to go to real estate investing. My mom's willing to loan me the money. Money, okay, that's one scenario we get. Another scenario we get is, you know, well, I'm going to inherit this property anyway, so why don't just have mom or dad transfer it to me now while they're still living? Okay, let me go through a couple reasons why we hate moving properties around between parents and children. Spouses is different. I'm going to make a secondary comment on that.

Sure.

Transferring properties or other assets from parent to children while the parent is still living is a terrible tax strategy, terrible tax planning, and there's two reasons why. First, if the value of that property is over like 16 grand, a number adjusts every year. But if it's over 16 grand, then you have to do an estate or gift tax return. And either you sum up a lifetime exemption that you get, which is over like 12 million per person now, or you have to pay estate or gift tax now that sucks because you have to do an actual return that gets filed if this is over $16,000 of value. So now you could use the lifetime exemption. And that's a cool thing because, you know, maybe you have more than 12 million of assets and for a couple, you know, it's even over 20 million combined. So. So you could use some of that during your lifetime if you really needed to. If you're like, oh, we have this 300,000 property we want to transfer to one of our kids, okay, fine, go do the estate tax return, claim the exemption. No tax had to be paid. But what happened is the basis in that property from mom's house here that she bought for 100 grand, that's now worth 300 grand, you get transferred over basis of that $100,000. So now when you sell the property, let's say five years later, for $400,000, you're paying tax on the whole 300,000 of difference there. But if instead you inherited the property from mom once she passed away, you get a stepped up basis in the property, so you get the property at a $300,000 value. So, and then you can sell it and you pay no tax right after you inherit it because you get this step up in basis and all that gain and appreciation goes without any tax. So a great way to pass on assets is through debt. You Know, it's not the most popular tax strategy out there, but it's a winning one because, you know, at least the IRS doesn't get paid, but someone does die. You know what I mean Here. Okay, so always be wary of transferring properties around from parents to children because of this gift tax issue. And a gift tax return needs to be filed again. You can use the exclusion for up to your lifetime amount. But also remember, you're losing that step up in basis that could happen if you just waited and inherited the property. The last thing I'll say on this, with spouses, this doesn't apply. You can move properties around without tax consequence between husband and wife. No issue going between spouses. But when you're going to kids or siblings or other family members or people, there's going to be some gift tax issues and loss of step up in basis.

Well, do you think this Misty W. Is our Misty? You know, no, we keep getting these comments from Misty W. We had a great employee over the years, that Misty. Yeah, she was great. Misty P. And so that's why I

was like, Misty W. I don't know

what W. Oh, I see what you're saying. Okay, so this comes up a lot clients that are using a home equity line to go start a business or to go buy a rental. And it's one of those questions where. Or situations where you don't know what you don't know. And we had a question recently from Steven that was really on this. And so here's the example. Let's put some meat on the bones here. So he lives in California. They have a townhouse in Illinois that they turned into an Airbnb. Now, there's really two issues here that Steven has asked about, and it's very common with a lot of our clients. The first one was, well, I took out a loan to use that money for the down payment on the property, and the property still has a mortgage. So. But the loan that they took, he took out on his personal residence or home equity line is not secured by the rental property in Illinois. So a lot of clients just forget about it. But luckily, Steven brought it to our attention. And for all of you, this is a great issue to talk about is he said, can I still write off the interest on my loan on my primary residence, because I use the money from that loan to go buy a business asset, an Airbnb, a rental property. And the answer is yes, even though the loan is not secured by the rental property, it's still a loan that was used to buy the Rental property. So as an accountant, I'd want to make sure that both loans are quote unquote on the books of the rental property and the interest on both loans is fully deductible on the rental property llc. So, folks, wherever you have, wherever you're incurring interest on debt that was used to start a business or buy a rental property, that interest is a deduction on that business or rental property. The follow up, and it was kind of a little earlier, when you loan yourself money to. Don't go there. That's why I'm not talking about that. Don't. Well, I loan myself money and I'm going to pay back interest to myself and then I'm going to write this. You're back where you started. It's moving from one pocket money, money in one pocket to the other pocket. So just forget about that. But whenever you buy, borrow from a third party and you're paying interest. Let's see if we can write it off the second issue. And Steven says, can I write off my trips to Illinois to go check on my Airbnb? Well, hell yes. Sorry for the kids in the car. Yes, of course you should be. And this is where Misty came in and commented again. She's. And Misty is a little, she's a little strange. She said, I usually read and reread the instructions for schedule E and C. The IRS has great guidance. Misty, bless your heart. I'm so impressed that you're reading the tax code for fun if you can't sleep at night. That's when I usually open up instructions to some of these tax returns. I'm so proud of you. But what Misty says is I do the same thing. I had kept a lock off in an Airbnb across the country. When I go there, I stay in the lock off room because I have my personal things there. But whenever I go, I'm working on the rental, I'm fixing it up, I'm cleaning it up, I'm maintaining it. So she was all on board and talking about the deduction for those travel, restaurant, food while you're there, even if you're not meeting anyone. The food, the travel, it's all a write off, so love it. Very common. Make sure you're writing off all these expenses, people related to your rentals.

Yep. Love it. Okay, I'm gonna get. This was a question we had a while ago on the podcast from Ben and we answered at that time. But I just want to go over it because this is a really good question. Ben basically asks, I'm 33, live in California, no major assets, just a car and some stock. Have a W2 job. Don't have a side hustle yet, but I'm really interested in investing myself to better my future. Listen to the podcast many times and albeit helpful and very interesting, I don't know where to start. My goal by the end of 2023 is to have the following he goes over a trust legendary trifecta, self directed IRA or 401k. Start investing in my self directed IRA. Move assets under the trust Possible current tax savings and deductions Questions based about where do I start now? I know a lot of times what we're talking about on the podcast for some of you that are brand new to business, maybe you have a side hustle or you're just looking at it or you're looking to buy your first rental. Sometimes what we're talking about on the podcast can be overwhelming. You're like, oh my gosh, I'm trying to absorb all this information. I'm not taking it all in. Sometimes there's something that's like, hey, that was for me. I get that. I'm down that lane right now. So for Ben and everyone else out there, what I would say is be aware of the information that's out there of what you need to know. And like you are Ben, you know now what needs to happen when certain things arise. But let's start at the list here. A trust. Okay, everyone needs that. Okay, everyone needs an estate plan. We are all going to die someday and our loved ones that we leave are going to have to figure it out. Whether you've got kids, spouse, some assets, life insurance. Okay? Having a basic estate plan is very important. Some might need a more complex estate plan because they have a more complex estate. But everyone needs an estate plan now. Self directed retirement accounts set them up when you need them. Now you might not be at a point, Ben, where you have the income you want to set aside for. Maybe you are, I don't know. But we want clients to start saving first. Nobody self directs out of the gate. Or I should say very rarely does someone self direct right out of the gate. They have no money in a retirement account and tomorrow they're self directing. Most people are saving a few years to get money into a retirement account to go self direct or they're rolling over prior employer 401k or other retirement plan dollars to then go and self direct. So figure out where you're at with that. Maybe you have an old employer 401k maybe you've been doing an IRA and doing stocks and bonds already, I don't know. But look of where you're at there and if you're at zero right now or you're at a 401k that's totally locked down with an employer you plan on staying at, then just start saving. Maybe do a backdoor Roth ira, do some of these other strategies we've talked about where you can start getting some money set aside to self direct and then the big one on the on this tax savings and this is to Ben's point, he says I don't have a side hustle yet. Which I love that because that is going to be as Mark likes to say, the gateway drug to business ownership.

Love gateway drugs.

But also you're going to start getting some awesome tax deductions and savings with it. As a W2 employee, there's not a lot your tax lawyer, your account is going to be able to work on your return. There's certainly some things to do. But once you get over to business ownership and I'm including rental real estate into that, your ability to have tax savings increases dramatically. In addition to we're building another stream of income with a side hustle or building assets with rental properties and that's why we love bringing all these things together is because there's win wins there. I'm building assets, I'm building a stream of income, I'm getting tax deductions and savings and so don't get frustrated or worry it'll come. You're only 33, Ben, but also know for most people this comes in little layers, right. I get my small business, I buy my first rental property, I start saving better in my retirement account eventually I'm self directing now I've got three rental properties now that side hustle is a main hustle. Like have some patience with it in the process but know where you're looking to go. Sounds like you're already, you know, listen to the best podcasts in the world to figure this out. Once you're in it, you so I think you're good, Ben. You're in a great spot. You're on your way.

I like it. All right, last question and this is a good one. And this is going to be another way to help you guys save money out there and continue on your American dream asset protection. A lot of misinformation out there. And here's a question from New Mexico, it's a little older question and but I, I love it because there's a there's several that have stacked on top of this. And so I wanted to kind of bring this whole thing up. When you set up an entity, there's a lot of misconceptions out there that all I need is that one sheet of paper. I've got my llc, I've got my articles of incorporation, articles, organization, and I'm done. Well, that's not the case. If you get into a lawsuit with a customer, an employee, a patient, vendor, affiliate, strategic partner, any tenant, any of those, the first thing the plaintiff lawyer is going to ask for is all of your business records. They want to see the if you've been separating your personal account from the business account, treating it as a separate entity, having all those documentations in place. If you don't, they're going to sue both you and the company. They have pierced the veil, period. That's how easy it is. So you've got to respect the veil. Now we've talked about it over and over again on this show, but that misconception that I just need that one sheet of paper is so rampant out there. So once a year, and this is not trying to be self serving, it came to me as I was looking through my topics today. We have a special every year where we do cleanups, where we provide a little discount, a little motivation, a little love to say let's get your crap together. And so if you would like to take part of that, get to kkoslawyers.com it's through the rest of the month and there's a form that you can fill right on top. The team's going to be in touch with you, get your documents if you have any at all and then fill in all the pieces and parts. So now New Mexico is his question. Is he or she's question is all around this same issue of how do I create that separation. And I love the question and I got a great answer. New Mexico says I have a multi family rental llcs. I've got the bank account, I do my annual meeting minutes. I love you guys. I've got, you know, love the show, I use your service. But she's like, or New Mexico's like, well what do I do about my email? Do I can I use my personal email to interact with tenants and vendors and contractors or do I have to set up a separate email for the llc? Now I think ideally it would be sweet if you had a separate email and a Google voice number and it all was forwarded or channeled to your personal email, but you don't have to. I think what's more important is when you communicate with your vendors and tenants and things like that. Use your personal email. But at the bottom, it would say, you know, Mr. New Mexico, Mrs. New Mexico Manager of XYZ LLC. So you're letting the world know that you're not sending it. You may be using a personal email, but you're communicating with them in the capacity of a manager of the llc. Don't even tell them you're the owner of the llc. Just say, I'm the manager of the llc. Here you go. When you sign the lease agreement, manager of the LLC. When you write a letter, manager of the LLC. When you sign the checkbook, manager of the LLC. So use that title and Mr. Manager. You know, like, I'm. You're Mr. Manager.

Manager.

You're just manager. Oh, you don't have to be Mr. Manager. You can be man Rest.

Great.

Rest of development of the.

Of the hot dog stand, or what is it?

The. Oh, my gosh, the banana stand.

Banana stand.

It's like.

I knew it was.

Yeah, Michael, his dad goes, I'm going to promote you to manager. And he's like, I get to be Mr. Manager? He's like, no, just manager. Is everybody going to call me Mr.

Manager?

No, just Manager.

Hey, Mr. Manager. George Michael. Love him.

I love him.

All right, well, I'm just gonna add a little.

I'm going to test Matt, though. I'm going to test what's. What's most important in life. What's.

Breakfast?

No, family.

Okay, I thought you meant meals.

Great scene. Okay, so you wanted to add to this. Sorry.

Yeah, I was just gonna say, remember, don't do all the work of having the LLC and setting it up and transferring your properties in there, and then miss on the dumb little things that frankly make your life easier and keep you better organized, like having a separate bank account, being clear on your contracts and documents, transferring the property into the llc. All right, you got. These little things are the things that matter to make sure the LLC actually works. In addition to being clear, this is. You're operating as an llc, not as yourself personally. So love that question. Common question. And one, I think takes a little bit for some people to get used to as they start operating.

It's kind of like I'm going to go to the gym and sign up for a membership and then do nothing. Yeah, I'm going to eat like crap. I'm never going to go, come on, come on.

I'm not seeing results.

Yes. I got.

How come it doesn't work.

Yeah. And then you go to the doctor. Are you going to the gym? I have a membership, yeah. Oh, my gosh.

Put in the work.

All right, good. Well, do you have a final common. Just a ch. A charge of just being smart. Any final wisdom from Matt Sorenson, the legend?

Yes, I. I have one. And this is. I like to give this advice, and

this is for a lot.

Some people listen to our podcast. This is I. This is meant for you. A lot of people sometimes listen to the podcast. They learn and they don't do anything. Okay. And if you feel me talking to you right now and you're like, man, I've learned a lot of this stuff. I'm doing none of it. Okay, stop and start taking some action. Other people go full steam ahead, don't know what the hell they're doing. Break stuff. And sometimes they're successful, frankly, because they just shot their shot. Some of them crash and burn, and they burn badly, and it hurts and it's painful and costly, and sometimes other people go down with them. Find the right balance of taking action, chasing your goals, being smart, getting educated, and learning. The right balance there is where we find the people have the most success. They still go for it, but they get educated. They learn. They're listening to the podcast, but still taking action. So that's my takeaway.

Great. I won't add to it. I just want to say thank you for being a great co host, great partner. You're awesome.

It is my honor.

Boom. And I want to say thank you to all of you for listening to the podcast. Hopefully we gave you a little extra comfort and direction that'll help you be more successful. Please share the podcast with your friends and family member. Give us a five star if you have two seconds. We'd really appreciate it. It help gets the word out there. We're really trying to be a voice of reason and honest. Real strategies at work. And there's no boot camp in Vegas for 20 grand that you've got to go to to get it. You can just come here. We've got great resources that are affordable. Please take advantage of them. Thanks, everyone. See you next week.