TSI004: Plan The Exit From The Beginning

“You see a lot of time with small business, because a lot of times small businesses provided some service to – They kind of have a couple of eager large companies. They have this niche kind of product or service that was of use to that company. So that’s what’s sort of sustaining the business over – It could be many years. Maybe they have a relationship there or maybe they work there at one point in the past and they feel very comfortable with that relationship. For us, when we come in and invest, it’s a little more of an arm’s length kind of thing and like we’re like, “Okay. Okay. That’s great. We made a lot of money there.” But if you walked away tomorrow or something happened to that relationship that’s out of our control, that risk that we were not able to take. We really encourage owner/operators to try to diversify those kinds of risks as much as possible. It’s amazing to be sometimes we talk to owners that they’re looking to sell a business and they talk about, “Oh, I’m like this great salesperson.” This is getting a little more in the key man risk…” ~ Erik Sewell. Listen in as Erik and Edwin discuss how business owners should be strategically aligning their business for the exit TODAY, even though the exit may be 3 - 7 years in the future!

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TSI003: Investors Die From Ingestion Rather Than Starvation

“I worked this whole life, I am guessing he was in his mid-60s. He had accumulated a third interest in I think it was 31 or 32 rentals that were almost all unencumbered or the debt was very little. On paper, this is his third interest was I am guessing worth $30 million or so. What happened was, he did another deal on a shopping center during the downturn. It was probably a four or $5 million deal. That put him in default, he wound up losing his third interest on the Rentals. And effectively went from a guy who had a 10, 20, 30, $40 million net worth to losing just about everything because of one deal that went south and we were involved in that deal as a stopping horse bidder but that is a classic lesson and I have seen almost every day of the week. You know if not every day, every other day. I’m speaking to someone who has a pristine beautiful portfolio, one little thing caused it to go south and now the whole thing is tanked. All it takes is one landmine…” ~ Jack Miller as he describes that sometime investors die from what they ingest (meaning what they decide to take a bite of as far as investments, compared to if they had just passed on it.

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TSI002: Life Style Business to Growth Business

“I was just trying to solve a business problem that I saw before me… I saw that there's hundreds of things that people do manually every day, that if they don't do them, then they just don't get done…. If you can't automate in 10 years, or five to 10 years, you will be left behind. The ability to create your own automations is here today and it's going to be even more extent as this time goes on. You've got to create a culture and hire people that know how to use these tools, that are now becoming available to automate processes, get your data clean, be able to react to business challenges, like regulatory compliance issues, as well as cease opportunities to automate and create new products and new offerings as the market demands” ~ Richard Milam. Edwin D. Epperson and Richard Milam talk about the idea to automate business processes and how he had built up his data processing business to be able to be sold in 5 years after he had a shift in mindset.

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TSI001: Deferring Capital Gains Tax

“... By doing that in a proper way, they're able to defer the payment of that tax that would normally be due on that sale. Now, think about the power of that. When we start talking about it's not how much you make, it's how much you save at the end, this is the opportunity to add anywhere from 20% to 35% of the profit from your real estate transactions to be used for your benefit moving forward.” . Dave Foster explains the power and the benefit of utilizing a 1031 Exchange as a tax derring strategy that sophisticated investors use and you can too!

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