Sally Gimon on Trusts, Taxes, and Protecting Real Estate Profits

Original automatic captions. Names, numbers, and punctuation may contain transcription errors.

0:00 Hello and welcome to the Owner Meeting
0:02 podcast hosted by Multif Family
0:04 Strategy. I'm Christian, your channel
0:05 host today, joined by Sally Demon. Sally
0:08 is a master at saving money for real
0:11 estate investors. If you plan to make
0:12 any money in real estate, I don't care
0:14 if it's wholesale, buy and hold like I
0:16 do, multif family, single family,
0:18 whatever the strategy is, she will help
0:20 you set this up in a way where you are
0:22 actually operating like the rich. I'm
0:24 actually really excited for this
0:25 episode. I've already learned a lot
0:27 speaking with her. Sally, tell us a
0:29 little bit about you and how you
0:30 actually got started in this space.
0:32 I appreciate you having me on the show.
0:34 I became a real estate investor in 2018
0:37 when my mom got sick 2,000 miles from
0:39 home. Um, they drove from Goodyear,
0:42 Arizona to Charlotte for a wedding. My
0:44 dad calls me to say, "My mom's in the
0:46 emergency room. Don't change my flight."
0:48 I couldn't get time off because I was a
0:49 Medicare broker. Worst job in the world.
0:51 Don't ever be a Medicare broker. People
0:53 yell at you. The wedding was October
0:55 27th, 2018. I flew in uh we went out to
0:59 IHOP for breakfast and then my dad took
1:01 me to the hospital and I walked in on
1:02 the priest giving my mom last rights.
1:05 Wasn't ready for that. Go to a wedding
1:07 3:00 in the afternoon, go to a country
1:09 club afterwards, ate too much, drank too
1:11 much, danced too much, had a great time.
1:13 A friend of mine introduced me to a real
1:15 estate group in 2019 with my mentor. I
1:18 wholesaliled seven bankowned properties
1:20 nationwide.
1:22 Just real quick, I had a bankowned
1:24 property in Cordelane, Idaho. The
1:27 husband and wife thought nine years ago
1:28 went to foreclosure. They're divorced.
1:30 He's in Japan with the army. She's
1:32 married to a marine in uh Coronado, um
1:36 California. I got all the paperwork. The
1:38 bank's like, "We didn't know we owned
1:40 this property. There was a hole in the
1:41 roof. They gave it to me for $7,000. I
1:44 wholesaliled it for uh $65,000. and the
1:48 gentleman who bought it fixed it up and
1:51 sold it for over $400,000. I mean,
1:53 win-win win-win for everybody.
1:55 Oh, absolutely. A fantastic deal. Port
1:57 Lane's an awesome market, too. So, well
1:59 done.
2:00 Oh, I if I could have afford to live
2:02 there, I I love the skis in the water.
2:04 So,
2:05 but the bank didn't even know they owned
2:06 it. It was a a crazy thing. Well, fast
2:09 forward.
2:09 How do you find a deal like that where
2:10 the bank doesn't even know they own it?
2:12 How did How did the deal come to you?
2:14 My mentor, uh, Jay Tannenbomb would get
2:16 these tapes. They call it a tape, but
2:18 it's a Excel spreadsheet. I went after
2:20 it. Kind of a funny story. My one of my
2:24 cousins uh helped me finance things. We
2:26 uh he would give me the money and then
2:27 we would split the profits 50/50. And
2:29 then he got three of his friends, you
2:31 know, that's how I got all my money to
2:32 do this. Uh COVID struck, everything
2:34 shut down because bank shut down,
2:36 courthouse was shut down. Uh on April
2:39 1st, my three notes did not pay me. So,
2:41 I had no money coming in. On April 4th,
2:44 my CPA calls and says, "Congratulations.
2:46 I got your paperwork. You made so much
2:48 money in 2019. Your tax bracket went
2:50 from 22% to 24%. I'm not as bad as you.
2:54 I thought 90 I thought $94,000 was a bad
2:56 tax bill."
2:57 That is still a huge tax if you're not
3:00 expecting $94,000. That's like that is
3:03 higher than the average household income
3:05 in most states. I mean, that is that is
3:07 a huge bill.
3:09 Correct. I I don't know what you did
3:10 when you found out about your tax bill.
3:12 I went to bed that night crying. I'm
3:14 like, where the heck am I gonna get
3:15 $34,000? I mean, I love my family, but
3:18 they don't have it. You know, they think
3:19 I'm crazy. Great book. I don't know if
3:21 you've heard about this, Christian, but
3:22 a great book to read is The Power of
3:24 Your Subconscious Mind by Joseph Murphy.
3:27 You put a thought in your mind, you
3:28 sleep on it, and the next morning, your
3:30 subconscious mind has come up with the
3:31 the idea. In my national real estate
3:34 group, uh there's a gentleman named
3:35 Garrett Gunderson. He wrote a book
3:37 called What the Rockefellers Do. I have
3:39 a paperback copy of that book. It's now
3:41 called what the billionaires do. And
3:43 then I also figured out I paid off the
3:45 mortgage on my house. I was going to
3:46 talk to a a friend of a friend who did
3:48 HELOCs on paid off houses. You know, I'm
3:50 I was going to take the equity out of my
3:52 house to pay my tax bill. My CPA's idea
3:55 was set up a meeting, get on a payment
3:57 plan, pay uh interest rates and
3:59 penalties. I'm like, that's not an idea.
4:01 That's just making me spend more money.
4:03 So, it took me five months to research
4:05 how uh the rich save taxes. I started
4:08 both my uh business and beneficial trust
4:10 in September of 2020 and started
4:12 teaching in my Phoenix real estate group
4:15 how to no longer pay capital gains when
4:16 you sell at a profit. How no longer to
4:19 pay interest income taxes if you're a
4:21 passive investor doing subject to real
4:22 estate. The burr strategy, my notes
4:25 where I'm the paper in the house on the
4:26 bank of Sally. Um, I now have six seller
4:29 financing houses where people are paying
4:31 me their mortgage and then hopefully in
4:33 two years they can get their own
4:34 mortgage and no longer pay rental income
4:37 taxes.
4:38 It's going to keep your information
4:39 completely private. I don't know if you
4:42 realize this, Christian, but 40% of
4:44 LLC's, S corps, and CC corps get sued
4:47 every year. You have a better you have
4:49 better odds of winning in Las Vegas than
4:52 having an LLC, escort, or CC Corp. And
4:55 then the third way you're going to save
4:56 is I can't stop you from being sued, but
4:59 all lawsuits become frivolous because
5:01 all your assets are in the uh spin
5:02 thrift trust and they can't get a hold
5:05 of anything. And the fourth way, you're
5:06 too young to know about this, but if
5:08 you're over 65 and you're making too
5:10 much money, there's a thing called the
5:12 Irma sir charge that affects part B and
5:15 D that it does uh the spend through
5:18 because it files a 1041 tax return, not
5:20 a 1040 tax return. you you um do away
5:23 with that search charge. I I I help
5:25 quite a few people. There are a lot of
5:28 uh wealthy individuals who are investing
5:31 in real estate right now. So, this is
5:33 really interesting. So, so high level,
5:34 if someone's someone's listening this
5:35 for the first time, they're like, "Okay,
5:37 I do have some assets. I haven't given
5:39 the thought yet to my asset protection
5:41 and my my overall tax strategy." Instead
5:44 of filing an S corp or a CC Corp high
5:47 level, for someone who is new to this,
5:50 what what do they need to do? What do
5:51 the rich actually do to protect their
5:53 assets and protect themselves as far as
5:55 tax liability?
5:56 Great question. True story. When I
5:58 started my trust, I shut down six LLC's
6:00 because I was taught as a real estate
6:02 investor, get an LLC for every one of
6:04 your properties. I shut I shut them all
6:07 down and I I I moved the properties uh
6:10 because I was using a serer. It took
6:12 about two months because he had set send
6:14 a um certified letter to the notes and
6:17 they you know, things like that. a sad
6:18 story. If I can tell a sad story, the
6:21 gentleman who ran my uh Phoenix Real
6:23 Estate Group, um I started doing a
6:24 mastermind every Thursday night for 18
6:27 months. He sat in on the meeting and I
6:28 would tell everybody, please be aware,
6:31 anyone can go online 24/7 to the
6:34 Secretary of State or uh Arizona is a
6:36 corporation commission website. Search
6:39 LLC's S corps and C corps either by your
6:42 name or by the name of the LLC or S
6:44 corp. They can sue you for frivolous
6:46 things, anything they want. I'm not
6:48 going to use his name because people
6:49 will know he's rather well known in
6:51 Phoenix. He didn't shut down his escort
6:54 because he had business credit on the
6:55 escorp. I don't know what happened to
6:58 one of his [clears throat] Airbnbs in
6:59 Scottsdale, but the people who rented
7:02 the Airbnb sued the escorp for a million
7:04 dollars. He goes, I have the spend
7:06 thrift trust. I'm like, yeah, but they
7:08 didn't they didn't sue the spend thrift
7:10 trust. They sued the escorp. And he's
7:13 like, "Oh my god, I have to pay this."
7:15 I'm like, "I don't know what they're
7:17 suing for, but you're going to have to
7:18 figure it out." And he's just like, "I
7:20 listen to you all the time. I didn't
7:22 want closed my escort." I'm like,
7:23 "There's a reason I tell people be
7:26 smart. Close close them down as fast as
7:28 you can."
7:28 Very interesting. Now, this true for all
7:30 escorps that are like, so outside of
7:32 real estate, so say you have like a in
7:34 my case a property management company
7:36 that is an escorp. Is this for all
7:38 businesses or this specific for real
7:40 estate holdings?
7:41 Correct. uh the the company the law firm
7:43 I work for Benson Financial Trust Paul
7:46 Benson was a Harvard law professor he
7:48 wrote five specific trusts to save
7:50 specific taxes 78 years not a single
7:53 trust has been audit of it with what
7:56 you're doing with property manage
7:58 management that's 1099 income that would
8:00 be the business trust you're in Texas so
8:03 you would save 90% on federal income
8:05 taxes and you don't have state income
8:08 taxes here in North Carolina when I did
8:10 my 2025 five uh taxes. I save 92%
8:14 federal taxes. Yes, I paid 8% to the
8:16 federal government and I don't pay North
8:18 Carolina state income taxes. I'm not
8:20 taxfree. I still pay food tax. I still
8:23 pay gas tax. I still pay everything
8:25 else. I give for people who make 1099
8:28 income. I tell them if they're uh making
8:31 $100,000 a year in 1099 income, I don't
8:34 care if you're a chiropractor, real
8:37 estate, you you're doing your real uh
8:39 management company, you have a Tik Tok
8:41 shop, you will I can guarantee you will
8:43 save five figures in federal income
8:45 taxes yearly. Uh it doesn't matter if
8:48 you file single, head of household,
8:51 married separately, or married jointly.
8:53 Uh there's four different ways to file
8:54 your taxes, but if you make $100,000 a
8:57 year, more you make, the more you save.
8:59 Oh, that's fantastic. So, if someone's
9:02 trying to learn about this for the first
9:04 time, what resources do you have
9:05 available for people to wrap their head
9:07 around this? Because obviously this is a
9:08 lot more than you could cover in one
9:09 podcast.
9:10 Correct.
9:10 Uh so, someone's listening to this like,
9:12 oh, I need I need to figure this out
9:13 right now. Uh what resources are
9:15 available and how do they find you?
9:16 Um my website www. the trustisw.com has
9:20 a masterclass there. Uh uh under my name
9:24 is another website. It goes to the great
9:26 discovery. When you go there, you're
9:28 going to register as a free learner.
9:29 Don't pay any money. Just register as a
9:31 free learner. You're going to get a
9:32 master class there. You're going to get
9:34 three articles from Forbes magazine. I
9:36 did not write two pages of case law. So,
9:38 you can go to a law library or online
9:41 and research this all the cases that
9:42 have done this. It's gone to the Supreme
9:44 Court two different times, one both
9:46 times. Um, and then examples of clients,
9:49 both business, uh, people saving federal
9:52 and state income taxes. And then, uh,
9:54 investors. I don't care if you're
9:56 selling crypto, if you're a Forex
9:58 investor, if you are a, uh, I just
10:01 helped a a futures uh, trader. It's
10:04 dividend income taxes. We're saving him
10:06 over $89,000
10:08 in 2026 from all his profits from
10:11 futures trading. People just don't know
10:13 about it. I call it the secret of the
10:14 rich. I I don't want to age you, but do
10:16 you remember 14 years ago when Hillary
10:19 Clinton debated Donald Trump and she
10:21 accused him of not paying tax?
10:23 I'm young, but I'm not that young for
10:25 unfortunately. [gasps]
10:27 Okay. Well, she she said to him, "You
10:29 don't pay taxes." And you know, he
10:30 smirks his cuz I'm intelligent.
10:33 No. Mhm.
10:34 Donald Trump's father, Frank Trump, in
10:36 1972, when Donald and Frank Trump got
10:39 sued by the city of New York, do uh
10:41 Frank trips started both the business
10:43 and beneficial trusts because he swore
10:45 he was never going to be sued again for
10:47 being uh a business person. Our current
10:50 president is a trust baby because it
10:52 goes from generation to generation and
10:55 it's it's an amazing document people
10:57 just don't know about. That's fantastic
10:58 because I there's so many people who do
11:00 think, okay, so I'm going to put all of
11:02 my LLC's in parallel and after a certain
11:04 income, if I want to go to W2, I'll I'll
11:06 switch my standard partnership LLC into
11:09 an SC corp and then and then after that,
11:12 you have to start using uh cost
11:14 segregation studies and all these other
11:15 things to start offsetting taxes. If you
11:17 can get ahead of most of those in your
11:19 corporate structure, this is I mean,
11:20 this sounds fantastic. And the fact that
11:23 it's set up specifically for
11:25 generational wealth, that's why everyone
11:28 does real estate. I mean, after $10,000
11:31 a month of income, I mean, everyone's
11:33 goals are pretty much this. This is what
11:34 I've found consistently. I've coached
11:36 people in in buying multif family for
11:38 six years now. When people join, the
11:41 first thing is, okay, I want to retire
11:42 myself or my spouse. That's the number
11:43 one goal. And it usually costs them
11:45 around $10,000 a month for work to be
11:47 optional. Everything after that, I'm
11:49 trying to set up generational wealth.
11:50 I'm trying to pass something along to my
11:51 kids. that is 100%
11:55 of everyone who goes into multif family.
11:57 So, this is a fantastic way to set this
11:59 up. Do you do this on the front end when
12:02 you first do something or do you buy
12:03 things in an LLC and transfer into this?
12:05 How do how do you set this up initially
12:08 for your business?
12:10 Great question. Um, in July of 2020, I
12:13 bought a a bank-owned reverse mortgage
12:16 in in North Carolina because my mom's in
12:19 hospital on a ventilator in in North
12:21 Carolina. So, you know, you you're
12:23 taught that you can travel and write off
12:25 your travel because you're going to go
12:26 look at your property and everything.
12:28 The contract said I bought it for
12:30 $20,000. It was going to go to auction
12:32 after CO for $50,000. So, that spread
12:35 that $30,000 in between at 24% tax
12:38 bracket. I would have to pay $7,110.
12:43 I didn't start my uh beneficial trust
12:45 until September. I Googled this. I did
12:48 two bill of sales. One bill of sale from
12:51 my LLC to Sally Gimman. Second bill of
12:54 sale from Sally Gimman to the trust. I
12:57 drove to the bank. Um, my banker, Jose,
13:00 I he notorized it. I happen to have $10
13:03 in my bank in my wallet. I handed it to
13:05 him. He put in his notary book.
13:07 Consideration was made. It has to be a
13:09 dollar or more just so it's
13:11 consideration was made. He hands it back
13:13 to me so I didn't lose $10.
13:15 I go back to I go back to my house. This
13:17 is um now September. uh 2020 middle co.
13:21 I contact the attorney in Raleigh, North
13:23 Carolina. I send him both bill of sales.
13:26 He writes to me the next day and goes,
13:27 "I need the first page of your trust so
13:29 I know the name of it." I send that to
13:31 him. The house didn't go to auction
13:33 until um August 28th of 2021. I held it
13:37 for 13 months, $20,000. The final bid
13:40 was $64,489.
13:43 you know, without lifting a hammer, I
13:44 made $44,000
13:47 at 24% tax rate. I saved $10,363.
13:53 I just put that into normal real estate
13:54 and have never looked back.
13:55 What does your portfolio look like
13:57 today, by the way?
13:58 Right now, um, since I started the
14:00 trust, I had I've wholesaliled 28
14:02 properties.
14:03 I have a cryptobot between Ethereum and
14:06 Bitcoin. I get paid like 10 cents, 15
14:08 cents, 20, you know, people moving money
14:10 back and forth. Um, I make about $60 a
14:13 day in crypto. And just one thing about
14:15 crypto, people like, "Oh, I bought it
14:17 back in 2018." The federal government
14:19 doesn't care. It's short-term capital
14:21 gains because they make more money when
14:23 you sell crypto at a profit at the uh
14:26 going short-term than long-term capital
14:28 gains. I have uh 12 notes on the paper
14:31 on the house. I have seven seller
14:35 financing houses, uh, three rentals, and
14:37 I just bought my first forplex, and I'm
14:40 spending money to up upgrade my forplex.
14:42 Oh, that's fantastic. Well,
14:44 congratulations. That's a fantastic
14:45 portfolio.
14:46 Here in North Carolina, there's a
14:48 strange rule here called upset bids. Do
14:51 you ever go to an auction?
14:52 I do not do auctions often. I go for fun
14:55 occasionally, but I have never purchased
14:58 at an auction. I've done 30 transactions
15:00 over 600 units. Uh, and I I only buy and
15:03 hold. So, I hold all of them. Never once
15:05 have I actually bought anything at an
15:06 auction.
15:07 Well, here in North Carolina, there's
15:08 101 counties, and you have to know which
15:10 county you're in. Either it's 10
15:12 business days or 10 uh calendar days. I
15:15 came out Christmas 2001. My brother and
15:18 sister-in-law were living in Waxaw, a
15:20 mile from Charlotte, four miles from
15:22 South Carolina. That's how far far south
15:24 they were. in uh Union County. I won
15:27 three upset bids and I wholesaliled them
15:30 and I made $89,000. My brother's like,
15:32 "Did you rob a bank? Where are you
15:33 making all this money?" And I'm like,
15:35 [laughter] "I just real estate." So
15:36 that's why I moved here.
15:37 Oh, that's fantastic. That How long have
15:39 you lived in Carolina?
15:40 I moved here uh moved to the uh
15:43 Charlotte area in uh March of 2022 and I
15:47 just moved up here to the Kerry area
15:49 with my boyfriend uh in October of 2025.
15:53 And it's beautiful. It's green. I I I
15:55 lived in Arizona for 14 years and I
15:57 forgot how much I love the Four Seasons.
16:00 Oh, that's amazing. That's amazing. I I
16:03 moved from Washington to uh to Dallas,
16:05 Texas after 32 years in Washington. And
16:08 uh having sunlight is an amazing thing
16:11 which you which you get in the Carolinas
16:13 as well. I am uh I'm loving it. Well,
16:16 that's that's a fantastic fantastic
16:17 place to live. Tons of amazing real
16:19 estate markets in both North and South
16:21 Carolina. uh been really strong for real
16:23 estate for a really long time, too. So,
16:25 beautiful place to live.
16:27 Great weather season.
16:29 Eight of my seller financing houses are
16:31 all people from Long Island. I swear
16:33 half of Long Island has moved to North
16:35 Carolina.
16:36 Yep. The Carolinas in Florida are are
16:38 getting flooded from everyone in New
16:40 York and New Jersey. So, Oh, that's
16:42 awesome. Well, huge congrats on that. A
16:45 question that we always ask, and I'm
16:47 guessing I might know the answer based
16:48 on how you got started. Uh, but I always
16:50 asked the most expensive mistake and we
16:51 phrase it as, you know, highest stupid
16:53 tax you pay. And all that means is when
16:54 you're new at anything, you're the
16:55 dumbest you'll ever be at it. That's
16:56 that's why we do things. U, I like to
16:59 pass the most valuable lessons we can to
17:01 people. And usually that's what mistakes
17:02 did we make for them? I I'm guessing
17:04 yours might be that original giant tax
17:08 bill, but I'm curious, is that the
17:09 highest stupid tax that you paid to get
17:11 to where you're at, or what was the the
17:13 largest
17:15 This is why I'm not using his name. the
17:17 gentleman who ran the real estate group,
17:19 we got into real, he was my business
17:21 partner. I paid him to uh do this
17:24 and he and I did a real estate deal
17:27 5050. I'm in North Carolina for
17:29 Christmas on Facebook. He puts up, this
17:32 is the deal I just did. And I sent him a
17:34 simple text going, I thought we had a
17:36 50/50 deal. What happened? Next day, we
17:38 get on a Zoom and Mr. Hyde showed up.
17:41 He's like, you're calling me a liar.
17:43 You're calling me a thief. I don't trust
17:45 you. I'm putting your mastermind on
17:47 hold. I'm like, Zach, you're you owe me
17:50 $5,000 more if what you put on Facebook
17:52 was correct. I'm not the one I'm not the
17:55 one that cheated, but he's like, you're
17:56 dead to me. You're out of my real estate
17:58 group. You're dead to me. His last words
18:00 to me was, "You'll be nothing without
18:02 me." I'm like, "Who are you to say that
18:06 to me?" So, I purposely
18:08 terrible.
18:10 Yes. And I didn't find out until you
18:14 when that happened to me, I was just
18:16 like, I'm done. And then I had five
18:18 other people from the Phoenix Real
18:19 Estate Group. One guy's like, he's
18:21 giving me ulcers. I'm like, no, nobody
18:23 should give you ulcers for I I I think
18:26 he was really um what do they call um
18:28 what's a person who can never be wrong?
18:30 Um I just forgot the term. A narcissist.
18:34 I called him out.
18:35 Yeah.
18:36 I called him out and he's just I I the
18:39 anger that came at me on a Zoom was just
18:43 I I I wasn't ready for it. I mean, I I I
18:46 was just looking for $5,000 that I never
18:48 never got back. And he was he was my
18:51 mentor. He was my friend. He was my
18:53 business partner. And he burned every
18:55 bridge with me. And it was my biggest
18:57 mistake. And what he told people because
19:00 I I moved right very right right after
19:02 that to North Carolina. He told people
19:04 in Phoenix, "I was killed in a car
19:06 accident." Like, who are you to lie to
19:08 people?
19:10 That that is the most common answer to
19:12 that question. There's there's only
19:14 there's only two answers after this is
19:16 we're right next to episode 100 of this
19:18 podcast. I've asked this question every
19:20 time. Someone can fact check me on this,
19:21 but I think it's probably 75 episodes
19:24 where the answer has been not even a
19:26 monetary loss. It's a I partnered with
19:28 the wrong person or someone did it's
19:31 it's almost always partnerships. People
19:34 are such a huge variable in business. It
19:36 is such a huge what a what a horrible
19:39 experience. Well, good on you for
19:41 starting your own thing and not letting
19:42 that stop you. That's a lot of people's
19:44 success is due to someone being dumb.
19:47 So,
19:49 I'm going to be honest, Christian. I My
19:50 coach, Susan Ma, I I sent her a text, I
19:53 need to talk to you. She's like, we're
19:55 going to get on Zoom 7 o'clock next
19:56 morning. She's like, "You're moving.
19:58 You're finding a new real estate rep and
19:59 you're starting your own business. Don't
20:01 play small anymore." And I'm like, "Oh
20:03 my gosh." You know, I I I I was still
20:06 shell shocked at 7:00 the next day. So,
20:09 yeah. Don't let Don't let someone steal
20:10 your dreams. That That's the worst thing
20:12 you could do.
20:13 Yeah. And And if you do it right, you it
20:16 could be extremely motivating. You're
20:17 like, "Well, okay. Either either I let
20:18 this person defeat me or I build
20:20 something even bigger." So, I do I love
20:22 your response to that and it's such a
20:23 huge lesson if to the extent that you
20:26 can protect yourself from other people.
20:27 Just make sure the paperwork is amazing
20:29 and do a ton of homework. And even then,
20:32 if you work with enough people, you're
20:34 going to run into some people like that.
20:36 There's a lot of hidden narcissists in
20:38 every business.
20:39 I I'm sorry. There are. And you know, I
20:42 never got paid back the $5,000, but it
20:44 did not stop me from doing more real
20:46 estate. I think my if I someone told me
20:48 what the one thing I would change, I
20:50 didn't start doing real estate until I
20:52 was 53 years old. I've changed my future
20:55 at right now. I'm paying for my nieces
20:57 and nephews uh student loans because I'm
20:59 I'm making enough money to do this. So,
21:00 it's beautiful what I can do. But if I
21:03 started way back in my 20s, I I would be
21:06 in a completely different atmosphere
21:08 right now with real estate.
21:10 I just had uh I just had my friend Cody
21:12 Davis on the channel. He bought his
21:14 first 12plex at 18. When I asked him
21:16 what he would change, he's like, "If I
21:18 knew how easy it was to buy real estate
21:21 when I was 18, I would have started
21:22 younger. [laughter] No matter what, no
21:25 matter what age you are, [gasps]
21:27 uh, everyone, you know, you start when
21:30 you start." And so, the encouragement is
21:31 if you're listening to this now, uh, it
21:33 is definitely the youngest that you will
21:34 ever be. So, uh, from this point on. So,
21:37 if you if you're like, "Okay, when do I
21:39 start?" The best time is always now. And
21:41 if you want uh if you want to own real
21:42 estate, just buy real estate where it
21:43 cash flows. And my basic economic theory
21:45 is if you only buy properties that have
21:48 positive income, your income will only
21:49 go up. So buy on long-term fixed rate
21:51 debt. There the deals are out there and
21:53 they're in every market all over the
21:55 country. It's if there is a time to
21:57 learn how to do it. story
21:59 in my real estate group in Phoenix on
22:01 Wednesday nights we had different groups
22:03 and on the on it was a six apartment you
22:06 u six unit in Amherst um uh
22:09 Massachusetts it was bankowned I needed
22:14 $179,000
22:15 so I went to the gentleman who ran the
22:17 group and uh the the the thing he goes
22:19 when do you need the 179,000 I'm like
22:21 I'll do my due diligence and everything
22:23 we got the we got the apartment building
22:25 we put it on Facebook marketplace he got
22:27 his1 $179,000 back plus another
22:30 $200,000. I got $200,000. He's like,
22:33 "Can we do more deals together?" And
22:34 he's just like that. He goes, "That was
22:36 less than four weeks." I'm like, "That's
22:38 how easy it is to do real estate." The
22:40 beautiful thing about real estate is
22:41 that it's not always easy, but it is
22:43 very simple. And sometimes it is both
22:45 easy and simple at the same time. Uh,
22:48 but it it is my favorite asset class
22:50 just because there's so many different
22:52 ways to make money and all of them are
22:54 relatively straightforward strategies.
22:56 Once you learn it, you build the muscle
22:57 and it's set and free. And there's
22:59 there's like 40 different ways to
23:00 consistently make money in real estate.
23:02 Pick a strategy that resonates with you.
23:04 Get really good at it and rinse and
23:06 repeat. I I I love what you're doing and
23:08 I love that you share this so openly
23:10 with everyone. I know I have a ton of
23:11 takeaways. So now I'm going have to I'm
23:13 going to have to go look back into this
23:14 trust thing because I am set up as a
23:16 endless series of LLC's and escorps and
23:18 I've been meaning to do this forever. So
23:20 this is a great reminder.
23:21 I'm asking in California they have to
23:23 pay every year for their LLC. In uh the
23:25 last the only time I had LLC's was in
23:27 Arizona. We didn't have to. In Texas, do
23:29 you have to keep paying every year for
23:30 it?
23:31 You don't have to pay every year for
23:33 Texas. Um, I do own uh a little over 100
23:37 units in Washington State where I'm
23:38 originally from. And you absolutely have
23:40 to pay every year. Uh, it's very
23:42 expensive.
23:43 So, Washington State, not ideal. Texas
23:46 is uh very inexpensive. Um, and you
23:49 don't have to refile annually, which is
23:51 very helpful. Um, there's a light bit of
23:53 paperwork that you have to do annually,
23:55 but you don't owe extra money unless
23:57 your business does uh individually over
24:00 $2 million in Texas, which is
24:03 unbelievably difficult.
24:04 In Arizona, it was $50 uh to open an
24:07 LLC. So, that's how come I had six
24:09 LLC's. I'm like, that's easy, you know.
24:11 So, yeah, it just each that's you just
24:15 said a very key point. Every state has
24:17 different rules and it's state law. The
24:21 trust is on the federal level, not on
24:22 the state on the state laws. So even
24:25 beautiful
24:26 even if your state has like New York New
24:28 York state I just helped somebody there
24:31 with his real estate the New York state
24:33 is using income from his Airbnbs as
24:36 personal income and he his paying taxes
24:38 on that that all goes away.
24:40 That see that that is just an awesome
24:41 strategy. I learned a ton on this. So
24:42 this was super valuable. Uh everyone I
24:45 dropped the link to uh both sites that
24:47 Sally gave earlier in this podcast.
24:48 They're below in the show notes or if
24:50 you're watching on YouTube, it'll be
24:51 below in the description on YouTube.
24:54 Sally, fantastic having you on. Thank
24:56 you so much for joining us.
24:58 Yeah, absolutely. This has been another
25:00 episode of the owner meeting podcast.
25:01 We're meeting with the owners who've
25:02 done the thing that you want to do. Uh
25:04 so you can be listening to this wherever
25:05 you're at. So I appreciate you guys.
25:07 Like, follow, leave a comment or review
25:10 on the podcast. We appreciate you and
25:12 we'll see you on the next episode.