Expert Advice for Property Owners and Investors, with Chase Insogna

Welcome to Massive Passive Cash Flow, the podcast that guides professionals to financial prosperity. Join our community and let’s start building your wealth. Here’s your host, Gary Wilson.

Not too far from there, some of my favorite places and a lake, which is the big lake there, giant lake outside. Lake Austin, Lake Travis. Lake Travis, yeah.

It’s just an amazing place and wonderful people. So Chase, if you wouldn’t mind, first of all, thank you for joining us. But if you wouldn’t mind, give us a little background.

How did you end up getting into the business that you’re in? Yeah. One thing you forgot is the barbecue, if you come here and you’re a vegetarian, you can’t forget the Texas barbecue, which is the epicenter here in Austin. Yeah.

Yeah. So I’ve been in Austin since 98. I’ve technically had my CPA firm since 2011.

I’ve been doing this over 20 years, but started in corporate accounting, was always entrepreneurial. I always did QuickBooks and taxes for people on the side and then started my own firm in 2011. And we have a team of 20 people currently, half accounting, half tax on a foundational level, doing QuickBooks online, accounting, bookkeeping work, helping with payroll, helping with taxes.

And we have an analyst controller. We do advisory work for on a weekly, monthly, quarterly basis, depending on the size of the client, as well as like taxes and tax planning for individual and mostly business owners under 20 million. It’s kind of our general number, but we do one owner consultants, one owner businesses like real estate agents.

Keller Williams corporate office is like a mile from our office. So we’ve been working with them a long time and their agents just naturally come down the street to us and helping them save on taxes and the right structure. Like you mentioned, your audience is, you communicate them to do and so we pretty agnostic on businesses.

We don’t do restaurants. We don’t do construction accounting. Those are two different things.

But outside of that, accounting and taxes is pretty much the same for us. Yeah. Well, you mentioned working with the agents and that’s, I appreciate you doing it because I know there’s a lot of agents out there.

I technically have a license. I don’t use it for traditional purposes. I use it just simply to have a platform for the agents to join on a national scale and learn how to invest themselves, but a different niche.

But in any case, so back to what you’re doing now. As far as the businesses, so do you have a lot of people who are like dentists, chiropractors, engineers that start their own consulting firm? You know, a variety of businesses where people learn, you have to be the master of the product or service that you’re offering in your business, but you also have to be the master of business skills, right? You’ve got to, the skills of running a business are different than the skills of whatever product or service you offer. And one of those is playing, having a proper defensive strategy.

I mean, we all want to score points and put, I’m doing this during the NCAA tournament, by the way, so I’m really into the sport thing, but we all want to go on offense and score points. And a lot of entrepreneurs, including me in the beginning, we don’t really have a good defensive play. We don’t think about the back end and how can we manage things like our expenses and taxes as well as a privilege to pay tax, the United States, it’s an honor to be able to do that.

But you want to make sure you do it properly and pay your fair share, not more. That’s why we have the tax code. But are those folks, if you don’t mind, some of the clients you have, do you have dentists, for example, as clients? We do.

Excellent. Now, what’s strategically, if you were, if I was a dentist right now, I said, hey, Chase, I heard about you. I heard you’re really good.

I just started in dentistry, just got my degree. I’m going to launch my own company. What should I look for? What should I do here to make sure I’ve set up properly from the beginning instead of redoing things three years later? Well, I mean, if you’re just a lot of several of our clients just do contract work through other dentistry.

So certainly setting up an LLC, maybe making an S-Corp election, depending on how much money you’re making. We kind of have a break even there depending on cost basis. And then if you’re certainly right, building your own commercial space, and that requires a lot of different liability there.

So with your licensing, you probably want to do like a professional corporation, at least here in Texas has more corporate protection laws than a PLLC, for example. But full disclosure, we’re not an attorney. So this is just my opinion.

But that’s how I have my company set up as a professional corp, as a licensed professional in the state. So we’re trying to advise kind of more business advisory than just looking at the tax perspective. It’s kind of how my firm has always been structured.

I approach client conversations and just trying to make sure they’re set up correctly from the beginning, not just from a tax perspective, but a business protection and legal liability protection is what we try to advise clients with. Yeah, yeah, I agree. The way the world is, is if you’re providing a product or service, you’re engaging with other human beings.

And sometimes people see things differently than you. And that’s why we have to protect ourselves, you know. So let’s take it.

Let’s take, I’ll just click on dentist today. So as one of my first clients actually was a dentist. But what I recognize is, as a group, they tend to make really good investors.

They’re just really good entrepreneurs and people who invest in real estate are inherently entrepreneurial. But a lot of them want to buy the building that they practice out of and then run out the additional space. So they’re out of pocket costs or less and probably have some cash flow coming and then they build equity in the property, things like that.

But I’ve known several that will start off putting everything on one entity. But is that necessarily wise? In other words, if I’m a dentist providing a service to my consumers, should that entity be separate than the entity that actually owns the building? You know, is that a great strategy, a defensive strategy? Yes, that’s how you want to structure it. I mean, I have 15 rentals myself, so I’ve been in the rental space a long time too.

But from a legal perspective, you want to separate the two. Normally, you’re not renting out 100% of the space depending on the size of the building. Maybe you just buy a suite and that’s the case.

But even still, you want to just buy the real estate under an LLC and then you want to have a separate lease agreement between your property and your business company. And just as if you were a third party renting it to yourself as a landlord, leasee. And then you want to have a separate bank account.

You want to receive rents into that. You want to pay the property taxes and the building insurance through that property LLC. Again, just as if you were a landowner and you were renting it to an unrelated third party is kind of how you want to treat it from a liability perspective.

And then your business within that should be its own entity. And it’s paying the lease fee, whether it’s a triple net lease and you’re covering all the expenses yourself and you’re just paying a fee and a cam charge back to the property LLC, or you just have a fixed monthly rent to cover the mortgage and property taxes. You can kind of structure it any way you want.

But basically you need to write a check every month to your own property LLC to create that liability protection and then keep track of two separate books and QuickBooks online and two separate tax returns. Maybe you file it as a Schedule E on your 1040. Or if you have a partnership, you’re filing a 1065 likely with an unrelated party that’s not your spouse for the property ownership itself.

And then you have your business you’re filing as well. Yeah. That sounds cool.

And I appreciate you giving us this level of detail too. It definitely helps people. C-Corp versus an S-Corp, for example.

Sorry, I lost you on the whole question there. Oh, sorry. It must be the internet.

So what are some of the criteria that you use to help someone determine which what’s the proper entity selection for that C-Corp versus S-Corp versus sole proprietorship within the role of LLCs, which is really only been around for 30 some odd years. It’s almost like a hybrid and you can select what you do at tax time, how your entity looks. But how do you determine? How does someone determine whether they choose an S-Corp over a C-Corp, for example? Well, an S-Corp is a tax selection.

So you’re setting up an LLC or an Inc for the entity. I mean, generally, again, I’m not a licensed attorney, but from what I’ve always understood in real estate, just researching on my own, you want to own properties in an LLC. And then your business, depending on what you’re doing, LLC or Inc.

And then from there, your business makes a tax selection with the IRS to be taxed as an S-Corp. But again, we don’t really do that until it makes sense and justifies the cost to do it. You know, if you’re 100% owned LLC, then you can file Schedule C. If it makes sense to make an S-Corp election, then we’ll do that or make a late election in a future year.

If you’re an Inc or a corporation, professional corporation, like I mentioned before, then you’re required to file C-Corp or make the S-Corp election. Generally, we don’t recommend C-Corps unless it’s the right scenario. I mean, if you’re like a tech startup and you’ve got investor capital and you’ve got a cap table, that makes sense to be a C-Corp.

If you’re a foreign ownership with no U.S. citizenship or green card, then it would make sense to be a Delaware C-Corp, for example, and file as a C-Corp that way and management fee money back to your own country for tax planning. It’s usually the best tax structure there. As a U.S. citizen, you got to report worldwide income.

So, if you’re living overseas and you’re still a U.S. citizen, then that structure doesn’t make sense usually. But in general, if you’re a U.S. citizen, setting up an LLC for the property, and then whether it’s an Inc or LLC for your business, depending on what you’re doing, it’s kind of just a general conversation we’re having and filling it out. We’d make a recommendation based off my 20 plus years of experience and seeing partnerships go south a lot.

So, what’s the best structure there? If you’re getting into a partnership with an unrelated party or you’re married, a lot of people will do a 50-50 business if you’re married, but that’s not really tax efficient. You really should just be 100% owner, unless you have a prenup, for example. But if you don’t have a prenuptial agreement for tax purposes, it makes sense to just be 100% owner and flow that money down to your joint checking account to pay less payroll taxes at the end of the day.

So, a lot of different scenarios, just depends on what type of business and what you’re doing. Yeah. And I appreciate you talking about the part about if you’re raising capital, that’s one of the criteria you might choose to determine to use a C-Corp, for example.

A lot of people don’t realize that because of the different complications here, but let’s take a- And to add onto that, obviously, you got to look at the tax purposes too, because if it’s majority US owned, if you’re owning real estate, for example, you want the benefits of owning that real estate flowing back to your personal 1040 taxes. You’re not going to get that if you’re a C-Corp. So, the C-Corp files its own return, it stays within the C-Corp.

That’s why if you’re a foreign owner, it makes sense to do that. But if you’re mostly US owned, you generally want to have a K-1 coming down to you or own it on a Schedule E personally, so you get the benefits of depreciation and tax deduction. You know, a lot of clients that invest in real estate, make too much money to qualify for the losses, but those losses accrue until you dispose of the property and sell it, or your income drops enough where you can claim it.

So, what we try and communicate to clients they’re higher net worth. I mean, these days, that’s only like 300K if you’re single, I think. Yeah.

You know, if you own property, it’s important to capture all the expenses. So, we’re making sure we capture all the gray area stuff like cell phone and home internet of managing that property mileage if it’s related to it, etc. Because if you don’t capture them in the tax year, you can’t just add it up at some future year and say, oh, well I should claim this too.

So, you want to make sure and capture it every year to create as much loss as possible, so that when you can take it, or when you sell it, it all comes back and benefits you at the end of the day. Right. Yeah, early on, when I first started investing, actually, the first property was back in the mid 80s.

And I don’t think we even heard of an LLC, maybe it wasn’t even around yet. But in the 90s, it definitely became- Like mid to late 90s, yeah. Yeah.

And then everything we did went in the LLCs. I really didn’t know, I didn’t question it, just like my tax account. So, this is what you should do right now.

This is new. There’s not a lot of case law on it. But people look upon it very favorably.

The courts look upon it favorably. For example, if there’s any litigation. And boy, I tell you what, I liked it because it provided me a layer of anonymity.

In other words, people looking at properties, it didn’t say Gary Wilson. It said XYZ LLC. That was really my initial reasoning for doing that as I was building up quite a portfolio.

And I had a tenant one time call me up and said, Hey, I just want to let you know I’ve got your rent. And by the way, boy, it sure looks like you only got a lot of properties. And I thought, ooh, that was kind of a shot over the bow.

So, from that point on, we started putting everything in LLCs. But does it ever make sense to own property in a C-Corp and S-Corp? The only reason I’m asking, I’ve never done it, but I’ve met people who did it. And I thought, well, why would you do that? You know, they said, well, that’s what my guy said.

But I can’t think of a reason, honestly, why would, is there, can you think of one why people would own property in a C-Corp or an S-Corp? Again, C-Corp, yes, if you’re a foreign owner. You know, I mean, maybe if the property is large enough it’s a huge commercial building or hundreds of units, maybe. But generally with the clients we’re dealing with, where they own several properties, doesn’t usually make sense.

Unless there’s an asset protection reason, but for C-Corp. And S-Corp, I mean, 99.9% of the answer is no on S-Corps. Because at the end of the day, that K-1 tax form on an S-Corp has two boxes at the top.

One’s business income or loss. And the next one’s rental, real estate income or loss. So you’re going to report rental, real estate income or loss in box two.

And that flows down to your 1040 personal taxes, the same way a Schedule E does. So you don’t get any additional benefit from a tax perspective being an S-Corp for real estate. Then you do a 1065 partnership or a Schedule E rental on your 1040.

It still flows down the same. The tax benefits are still the same, whether you cap out or not, and you can take the losses. So we don’t recommend the extra business filing if it’s not necessary.

And if you do have partners, then just be a 1065 partnership. Yeah. Where you can change ownership in a 1065 a lot more fluidly.

You’ve got 100% equity column, you’ve got 100% profit and loss. So a lot of times there’s differences there between partners and a real estate transaction or buying and selling interest in it. If it’s larger, whereas the S-Corp is just straight 100% profit or loss equity.

So it’s less flexible. Buying and selling into the partnership is a little more complicated than a 1065 partnership return. Okay.

Okay, good. Something else has popped up over the years, and I’ve been asked this question too. And we actually did this years ago.

And please correct me if I get this wrong, which I likely will. I think it was tax rule 172 or something like that. And what it was, was I guess you could elect to take things that were basically capital improvements, the cost for capital improvements, but choose to write them off in the year you took the hit as an expense.

It’s like, I don’t know if I’m explaining this correctly, but I had people tell me, well, you can’t do that with real estate because it’s really not a business. And I know people say, well, actually, if it’s structured as a business, that’s what that tax rule is for. Is that still in play of people? Do you know anybody that’s used that? I guess it’s a great strategy if you can.

I’ve never got a clear answer because everybody seems to debate it. And maybe that’s the problem with it. It’s debatable.

Yeah. Section 179 has limitations on rental property. Generally, if it’s under $2,500, you can expense it.

The IRS came out with that a few years ago. But if you’re adding improvements to the property, then over $2,500, then it’s depreciable. Yeah.

Okay. I’m going to show you that. All right.

Let’s talk about timing. And there are, as far as property too, just to add, because a lot of people we get are confused on, I can just treat it as a Schedule C business or a S Corp. The difference is short-term rental and long-term rental.

So, if you’re short-term renting a property, you have to be active in the business. And active means you’re changing out the sheets. You’re doing move-in, move-outs.

You’re collecting rent. You don’t just have a management company. I have a beach condo.

I have a management company. I can’t treat that as a commercial business because I’m not down there doing those activities. It’s very specific in the IRS code what the activities are.

And if you’re not doing those, then it’s a rental property. If you are doing those and you got maybe multiple units, a lot of people I have here in Austin have condos downtown, and they’re actively short-term renting them on their own, then there is an opportunity to treat that as a business and get business benefit out of it versus just treating it as a rental property. But it’s very defined in the IRS code.

So, if you’re not doing it, then it’s just straight rental property. Gotcha. Okay.

Well, let’s talk about the Austin market for a bit. It’s been obviously a really hot place to want to visit and live for quite a while, probably greater than a generation. And you mentioned barbecue.

It’s also a great music town. If you like live music and outdoor dining venues or bands, I mean, it’s just an awesome place. But the reason I’m asking is you mentioned Airbnb there, short term rentals, I guess I should say.

People are used to thinking of short term rentals as like beach towns. But what I’ve learned over the years is places like Austin, it’s definitely you attract the business traveler and you do attract destination travelers like Orlando. To me, that’s an ideal combination for short term rentals because you always have people that want to rent a place like I’m a business traveler and I get tired of staying in hotels.

I just want to be in a home where I can walk out and sit on the patio and things like that and make my own meal. So, have you noticed an uptick in that genre of rentals in the last 10 to 15 years? And is that something you’re doing yourself through some of your rentals also short term? We’ll be right back with the Massive Passive Cashflow podcast after I invite you to Monday Night Live. Every Monday night, 7 p.m. Eastern, I teach a class without fail for you on subjects ranging from flipping to buying rentals, managing rentals, wholesaling, commercial, creative purchasing techniques, analyzing properties, identifying properties, hundreds and hundreds and hundreds of subjects.

And if you are a licensee, if you have a real estate license, you should definitely tap in because there are a lot of investor agents also in the class. Many of them are on the global investor agent teams. You can learn from them as well as from me how to actually work with investors correctly and profitably.

All right, we’ll see you Monday night. The link is in the show notes. Go ahead and register.

We’ll get right to the Massive Passive Cashflow podcast. They are, but I mean, I have a management company so I don’t treat it as a business like we mentioned, but yeah, Austin has, I’ve been here since 98. So I’ve seen the changes.

As you can hear, I’m stocked up. So if you live here long enough, you have the privilege of having allergies in Austin. But there have been a number of people coming in and buying a duplex or buying like multiple condos and doing a lot of, or turning their existing property into a short-term rental and buying another main residence somewhere else.

But it is pretty lucrative if you have the right location here in Austin, for example, because there’s so much going on all year long between festivals, music festivals, you got South by Southwest that just happened or is happening right now in March. There’s weddings and there’s bachelor, bachelorette parties and business conferences. After the pandemic, it’s picking up again.

So we were really seeing a large uptick up till 2019 before the pandemic. And then it’s starting to come back as of last year. People are acquiring properties, but problem in Austin is everything’s real expensive comparatively, or I should say historically to what Austin’s been.

So you get into kind of the cash rate, what the return is on your money on the short-term rental, but you can make more money in short-term rentals if you do it right than long-term for sure. And if you’re if that’s your business and you’re active in it, you can be very profitable doing it. Yeah.

Yeah, I agree. And it’s in an area too, it’s definitely a year-round area. I mean, even in January, and I’ve been there multiple times of the year, the average daytime high might be in the upper 50s, but it’s sunny.

I mean, you’re just a light jacket and you’re fine. You can go out and play golf and play tennis or ride bikes. And it can get pretty hot there in the summer.

I remember I was in there in August one time, but you got that wonderful river flowing right through town. It’s a very active area. I mean, people jogging, walking their dogs, pushing strollers.

It’s an outdoors place and a very active place. And there was one place I went to that had volleyball sand pits. It was on the other side of the river.

I can’t remember what it was called. That was a lot of fun, you know? So yeah, it’s why I liked it and moved here in 98. You know, it’s a very active town and I can see why Californians, which is our second largest state filing, because they all moved here, is attracted to it because it’s rolling hills.

You know, there’s a lot of greenery. There’s a lot of parks, a lot of outdoor activities. I was born and raised in Houston, so I can speak to that town.

It’s flat, it’s very neighborhood-centric and a lot more spread out. Dallas is kind of the same way. You know, Austin is starting to kind of spread out, but up until a few years ago, everybody still came downtown for things, for festivals and things, but it’s starting to kind of spread out as people are moving in different directions.

But in general they’re still coming downtown for arts and concerts and things for the most part. But once you go out west, 35 is kind of the break-even line for being rolling hills or flat. East is flat, west of that is I-35 is kind of starting to be hilly.

And I think that’s what attracts West Coast people to Austin, in my opinion. And then New York is in the tri-state area. You know, they just want to get rid of the taxes and the cold weather and move south.

So we get, New York is actually our third largest state, I think, too. Wow. In Texas, I’m trying to remember, is Texas one of the states that doesn’t have a personal income tax? Is that right or? That’s correct.

Awesome. Yeah, I love it. Hey, well, looking ahead here, obviously there’s a lot in the news about the economy and interest rates are going up.

Well, now they might pause that because of a few of the small bank failures. But how do you see things changing for people, especially business people and property owners? I mean, is it going to get easier, tougher? I mean, this is not a test, it’s just I always like to get people’s opinions because I’m the eternal optimist, but I’m also a realist because I’ve got a computer science degree. And I just look at the numbers and I think, well, whenever we had these numbers before, it usually spelled a little bit of gloom and doom for a while.

And I don’t even worry about it anymore. I just, you just get used to it and you prepare for it. But what are your business owners thinking and saying and where do you see things maybe going, you know? You know, it really just depends on what industry they’re in.

And we’re so agnostic. I mean, I have both sides of the conversation with businesses. I mean, I don’t I’m not really projecting like a 08 global financial crisis.

I don’t think we’re on that’s going to happen, but there is a downturn starting to brew and it’s coming in a recessionary period, whatever that looks like, depending on what side of the fence your business falls. I mean, as far as real estate interest rates are a little bit high right now historically, but I think it’s going to take probably another six months or a year for people to start digesting that 5% or 6% is normal. You know, they remember very just six months ago or a year ago was 3% or less.

And they’re like, oh, well, everything’s a lot more expensive. But I mean, historically, 5% or 6% is average. And they’ll just once that gets digested depending on the area you’re in, there’s still limited supply to purchase.

And so once they digest the rates and prices maybe come back to normal in some areas, or at least reduce a little bit to justify the higher rate, then I don’t really see a global slowdown like we did in 08 and 10, where I would buy properties for 5,000 down and refinance it the next day. Like, I don’t think that deal is going to happen again in the next few years. But I foresee it normalizing and going back to what it was, in my opinion.

Yeah, I’m obviously hopeful because I don’t like seeing people struggle and suffer. But also knowing that the last recession, we just happened to be very well positioned. Our business grew six fold in the first three years of the recession is because we had a model that involved real estate ownership.

And so we had a lot of investors and it just took off. And I had companies like Keller Williams wanting to buy my brokerage because we were doing so well. Actually, I actually went with KW.

Essentially, I sold it. And I still get paid for that. It was a great deal.

Made a lot of wonderful people. Then I moved. Then I was going to launch my own brokerage again.

I needed a national platform. And KW just didn’t have what I needed for that. And so I found that elsewhere.

But we’ve grown tremendously. We’re in 36 states now. Just a regular team.

But what’s interesting is, it gives me a unique perspective on things. Because you can see the macroeconomics and the microeconomics. And you’re absolutely right.

When you mentioned earlier, it depends on a lot of what industry you’re in or where you are. And there’s parts of the country right now still, it’s extremely competitive. I mean, in Northern Virginia, people are outbidding each other still.

And interest rates historically, I mean, when I bought my first house in January 86, rates were above 10%. When they went down below 10%, I thought, man, this is awesome. Eight, 9% was normal for a long time.

And then like you said, a couple of years ago, was late as last spring, they were still 3%. And now they’re up to 7% roughly. But that to me, historically, that’s really good.

It’s just a lot of the recent buyers, they don’t see that because they didn’t experience that. But I bought my house in 07 here in Austin area. And I got an 80-20 loan back then.

And I think the 80% was like six and a half and the 20% was eight and a quarter. So, I mean, historically, again, five or 6% is very normal in a regular market. Under 3%, I mean, I refinanced it two, three, seven, five for 30 years.

Like, I don’t think we’re gonna see that for a while. Or if ever. Mike Cantu I agree.

Well, people can do those, but it’s amazing because I’ve had people say, well, you can’t assume mortgages anymore. And I’m like, actually, that’s not entirely true. You can assume many mortgages.

You just have to qualify for them. The old days where people would assume a mortgage without qualification. Yeah, those days are over.

But people get confused about that. And I’m like, no, you can assume if you qualify. And so when rates are up to, let’s say they do continue to go up to seven and a half or something, you could find people that bought a house greater than a year ago, going back several years that have a three and a half percent mortgage.

And offer them a deal, pay a premium on the property, which you’d likely have to do anyways in today’s market, but get yourself a mortgage that’s still sitting there at three and a half percent and has already been amortized to a degree. So if you guys have questions, if you have any listeners, if you have questions on that, just let me know. I’ll show you some material you can use to help you make that determination.

I mean, USDA loans are similar, for example, even some FHA loans, right? Most variable rate mortgages, by the way, are assumable. VA mortgages are assumable. So in any case, that’s one strategy to use if interest rates are going up and ultimately the seesaw will kick in.

In real estate, there’s like a time delay between one side and the other when supply goes up and then demand goes down and vice versa. In real estate, there’s like a time delay. It seems like it’s just weird that way.

And that’s why you mentioned earlier, maybe another six months before people really start things really start to change in a material way. But I think there’s a lot of strength in our economy. I think there’s a lot of strength worldwide.

There’s some crazy stuff going on, but you know what? There’s always crazy stuff going on. You just have to choose how you want to react to what’s going on and do you want to panic or do you want to prepare? So any final thoughts on preparing for our future when it comes to our businesses and how we structure them and looking at how we’re paying taxes, things that we can do to prepare. Maybe I don’t know if there’s any legislation coming down the road that you’ve maybe heard about that could change things as far as capital gains and things like that.

But what can you tell people help them feel a little bit calm and not so nervous about going forward when it comes to their businesses and properties? Yeah. Breaking down that question, I mean, I don’t really see a lot of legislation, new legislation coming out. As far as taxes, I always tell everyone, everybody’s tax situation is unique to them.

You can’t compare it to your neighbor, what they’re paying or how much they got because everybody has different numbers. So feel free to reach out to us in SUNY and CPA and happy to have that conversation, see what makes sense for you, the right structure, kind of what we talked about in the beginning, depending on your unique situation and tax situation individual to you. And then as far as real estate, I mean, I always advise clients, a lot of them are like, yeah, I’m just gonna go buy a rental property because I heard it was the right thing to do.

But doing it long enough, in my opinion, if you’re struggling to buy that property and you don’t have the cashflow to support it is where a lot of people got burned in 08 and 10 because they had variable rates and they didn’t have savings to backstop it. You know, that’s kind of my first advice is make sure you have a savings account to cover yourself in real estate. And then also when you’re if you’re just looking to buy one property, I mean, if it’s something you wanna vacation in or as a second home eventually and you wanna rent it out in the meantime, the pace for itself and that’s kind of a retirement plan, then sure, go ahead and do that.

But if you’re just buying a property to buy a property because somebody told you that’s what you should do. I mean, in this stock market, you can make just as good a returns in real estate investment trust and in REITs right now versus buying one property. And my experience dealing with renters, dealing with management companies it’s just a headache.

I want less work as I get older. So my opinion, I don’t, that’s not really my interest is just acquiring these single family homes. I think when you get into the fourplex plus, you can spread out those risks and you can spread out rent increases.

But just the one single family home as a rental property, I think you’d be better off and your money more liquid in just investing in the market at this point. Yeah, yeah, I agree. I’ve evolved myself where I used to have direct ownership.

Now I’m really a lot more interested in private equity funds and there’s where you can have fractional ownership in real estate. It’s a little bit different than a REIT. It’s sort of like a REIT, but you’re closer to the owner, closer to the property.

It’s just you own a fraction of it, but lots of varieties out there. And you get great returns, but you don’t have the headaches, you know? Well, Chase, how can people get ahold of you? The website’s insognacpa.com, is that right? Yeah, that’s right. It’s insognacpa.com. And happy to have a conversation.

You know, my team give us a call and or find us on our website. You know, we’ll reach out to you. I have a, Courtney reaches out to everybody within 24 hours of the next business day usually.

And we’ll start a conversation there and then see if we’re the right fit. And just happy to talk through whatever you have. And see how our team can help.

Awesome. And they can be from anywhere, right? They don’t have to just live in Texas or work in Texas, right? Yeah, that’s correct. I mean, we have clients all over the country.

You know, CPAs are agnostic. And we have the ability to file taxes in all 50 states, even if we don’t have an office there. So unlike a real estate agent or insurance or investment advisor and attorneys too, CPAs are allowed to file in all 50 states without being licensed in each state itself.

So that’s why California is our second largest. New York’s our third largest. We file taxes all over the country.

We have businesses all over the country. We do a lot of e-comm and online seller clients, Amazon businesses. It’s a large vertical for us too.

And those clients are mobile and all over the country and selling wherever. So we can have that conversation and certainly help. And if you’re looking to set up a business or looking to get into real estate or you’re a professional buying a building and gonna self-rent it out to yourself, make sure you talk to an attorney, make sure you talk to a CPA professional and have the right structure in place before you get started there because it’s important to make sure you’re ready to get to yourself properly from the beginning.

Right, yeah. Well, I appreciate you sharing all that and I appreciate you sharing your time. I know we went definitely over the half hour we tried to shoot for, but with a subject like this, we could probably have 10 conversations and still just, it’s like the tip of the iceberg.

But for everybody listening, this is not something you wanna treat casually. This is part of your overall game plan. Remember offense and defense, just like in sports, just like in the military, you’ve gotta do both.

Structuring your business properly, whether it’s ownership of real estate or business ownership, serves multiple purposes, protecting yourself, a little bit of liability protection, but also you get to structure your tax, your tax burden, how you actually handle that. So definitely give Chase a call, go online, look it up. It’s insognacpa.com and have that conversation.

It doesn’t matter where you are. And I will tell you, Texas is one of the best places to invest in. You got amazing towns like Austin.

So go get some barbecue with Chase. I’m pretty sure he’ll show you some good barbecue places. Absolutely.

Thanks for having me, Gary. You’re welcome. And if you guys could, once you’re done listening to this, please leave a review, go to whatever your provider is, Apple’s the biggest, go there, leave a review.

That’s what makes the podcast world go around. We appreciate that. Go visit insognacpa.com and then before you leave, go to globalinvestoration.com and right now I’ll speak to the agents.

If you are an agent, do not hesitate. This is something you want to look into. How can you serve more people like the folks we’re talking about today and beef up your business? So we’ll see you guys.

Take care of yourselves. God bless you and your families. We’ll see you on the next Massive Passive Cashflow Podcast.

Thanks for listening to this episode of Massive Passive Cashflow. Be sure to go to realestatewithgarywilson.com to join our community and start building wealth today.